Contract and commercial practice, Management, Construction technology

Exam Questions for June 2020

CONTRACTS AND COMMERCIAL PRACTICE

ANSWER ONLY 1 OF THE QUESTIONS. You are allowed 4 attachments. 1 must be the front cover sheet.
Q.1)
Refer to your drawings and scenario
On projects such as this, it is common to place orders for items with long lead in times, such as the lift, in advance of the main contract award.
TASK:
A) Using a form of contract of your choice, which you must state, advise the client on the options and related procedures available to contractually facilitate the placement of the order for the lift by the client, which allows the lift procurement arrangements and obligations to be transferred to the successful contractor, so the lift can be delivered, installed and commissioned in accordance with the project schedule.
(10 Marks)
Eight weeks before the lift installation is due to commence, the main contractor is informed by the lift manufacturer that the company has gone into receivership and will probably be unable to fulfil the order for the lift equipment.
TASK:
B) Prepare a report that discusses the contractual obligations of the parties involved, including the possible consequences and solutions to the situation.
(20 Marks)
OR
Q.2)
Refer to your drawings and scenario
The client requires an order of cost estimate for the development of the building and external areas into a Country Club and Wedding Venue, which takes account of the construction costs and associated professional fees, taxes, and charges, but not the building acquisition costs.
The project is at the early design stage.
The initial proposals for Ground and First floor are as shown in the Project Drawings.
TASK:
Describe the factors to be considered in the preparation of an order of cost estimate for the construction work.
You should make and state appropriate assumptions for stabilisation and other works not defined by the drawings and Scenario.
(30 Marks)