BLCN28003 Construction Contract Administration Assessment

Assignment Part 1)

Literature review and identification of key risks and opportunities for contract administration of Australian construction projects. This includes contract price and delivery options as well as selection of insurances. (25%= 25 available marks, please see marking rubric below, approx. 4 - 5 pages).

Context: Your business has been the successful bidder for a suburban shopping centre with carpark. You have provided a Cost-Plus contract price with additional percentage fee for your overheads and profit margin. This was calculated based on the initial design drawings, preliminary bill of quantities and specifications prepared by the Architect. The local council would now like to engage you as construction contractor with a Lump Sum contract fee in order to fix the price for the works and including your fees and overheads. This will allow the council to apply for government funding and prepare their financial budgets and cost plans.

Your tasks:

1. Research and evaluate the risks and opportunities to shift from a ‘Cost Plus Fee’ to a ‘Lump Sum‘ contract for this project. (10%)
2. Identify three construction insurances that the builder should obtain to deliver this project. Research and evaluate why these are important. (10%)
3. Provide your research of academic and industry resources for Part 1a and 1b as intext references and prepare an alphabetical bibliography at the end of this section. (5%)

Assignment Part 2)

Case study research and analysis with development of project specific recommendations. (25%= 25 available marks, please see marking rubric below, approx. 4 - 5 pages)

Case study research into construction disputes in Western Australia found that ‘The examination of the case law clearly indicates that a majority of disputes that arise in construction are actually resolved using alternative dispute resolution processes. (Love et al, 2010, p.412).

Your tasks:

1. Considering research by Love et al. (2010) and other authors into alternative dispute resolution (ADR), discuss the options available to resolve a construction contract dispute without a court case. Include in your discussion the importance of ethical and professional responsibilities. (10%)
2. Referring to AS 4000 Standard Conditions of Contract, analyse and compare processes of Negotiation and Arbitration between contracting parties. (10%)
3. Provide your research of academic and industry resources for Part 2a and 2b as in-text references and prepare an alphabetical bibliography at the end of this section. (5%)