Order Description
Learning Outcomes
?? Critically analyse the relationship between effective contract administration and successful construction management.
?? Critically assess the way in which risk is allocated in contracts through contract clauses.
?? Evaluate payment methods and the effects of payment clauses
?? Evaluate the effects of standard clauses on the management of change and its effects
on the financial outcome of projects
Learning outcomes in bold will be covered, the others to a lesser extent
Instructions to the candidates;
Task
Take the scenario shown below and describe in a report to your contract manager the ramifications of what has happened including the results of what could happen if other actions are not taken. Also make recommendations in your report about how your company’s internal administration systems could be improved to avoid such events in future.
Make other assumptions that you have to; be inventive, but stay within the realms of possibility and write in a simple straightforward style, using clause numbers where necessary, and with references to similar cases where appropriate to demonstrate the significance of the problem to your contract manager. Also consider and explain the provisions of any legislation that might apply to this payment issue.
????1
Scenario
?You are the main contractor on a JCT intermediate contract to build a new community centre attached to an existing secondary school. The Employer is the local authority and they have, under separate contracts, commissioned a firm of architects to act as the Architect/ Contract Administrator and a firm of quantity surveyors to act as the Quantity Surveyor.
You make an application in March that amounts to £157,000, but the valuation that the Quantity Surveyor carries out for March is for only £86,500; the shortfall will leave you with a very difficult cashflow position and your bank has refused to give you any more cash – you may become insolvent.
You believe that one of the main reasons for the discrepancy in the valuations is because you have been held up because of bad information that you have been given by the Architect/ Contract administrator which has caused you to do pull down and re-build a part of the building – the Quantity Surveyor has not included the value of this re-work in his valuation.
Report
The report should be structured to acceptable industry standard; including headings, endnote references and page numbers.
The reports must be written in your own words and any quotations and source information from documents or websites must be clearly referenced and cited – plagiarism is not acceptable; please read the student handbook regarding the sanctions for plagiarism.