微信客服：xiaoxionga100
微信客服：ITCS521
ABPL90335-无代写
时间：2023-10-10
MELBOURNE SCHOOL OF
DESIGN, FACULTY OF
ARCHITECTURE, BUILDING &
PLANNING
ABPL90335
CONTRACT MANAGEMENT
Assignment 2
30% of total mark
Assignment 2 Melbourne School of Design
Format
Assignment 2 Summary
Covered Topics
• Interim Valuation/Progress Claims;
• Default and Disputes Management;
• Managing Contract Changes
• Delays and Extension of Time
Due Date: 13th October 2023
Linked Learning Objectives:
Upon the completion of this assignment, student should be able to:
• Interpret, explain, and compare the obligations and responsibilities imposed by selected general
conditions of contracts used locally and internationally.
• Identify potential situations that may have legal consequences and negatively impact upon the
project delivery outcomes.
• Analyse the complex and interrelated issues associated with contract management and identify
when to seek professional advice on a project.
Assessment Criteria/Rubrics: refer the attachment
Write your answers in a report format. Describe your answers clearly with references to clause in
either AS4000-1997 contract or ABIC MW-1 2008 contract.
Remember you are engaged by the client to provide professional advice. The contents of your report
must be simple and easy to understand.
When you cite any contracts clauses , make sure you specify the relevant clauses forming the basis of
your answer.
When a formal letter is required, make sure you describe clearly the issue requiring attention
(instructions) citing the contractual basis and reasons for the instructions.
You may refer to Rawlinsons Construction Cost Guide 2022/2023 for variation assessment.
When you provide references from your research, please only use APA reference style.
The assignment 2 report and any appendices should be submitted in a word document. A separate
Excel document is also required for calculation checks. Please ensure all formula and live links are
saved in the Excel.
Report Length: 1,500 – 2,000 words
Tips
• Questions 1: Week 9&10
• Question 2: Week 6, 7, 8
• Question 3: Week 6, 7, 8
• Question 4: Week 8 - 12
Using AI Responsibly: Assignment Guidelines
In this assignment, you are allowed to incorporate AI tools for
specific purposes that align with academic integrity and
supplement your research process. Here's how you can use AI
tools responsibly:
Permissible Uses of AI:
1. Conducting general-purpose information searches and
gathering information.
2. Collecting and searching general documents, like contract
types and clauses, for reference purposes.
3. Utilizing AI tools in a manner that adheres to the
University's academic integrity policies ( https://
policy.unimelb.edu.au/MPF1310/ ).
4. Integrating AI tools without compromising your
commitment to the assignment's rubric requirements.
Assignment 2
We strongly advise against using AI tools for the following
scenarios, but not limited to:
• Replacing original works, thoughts, and the main logic of
the assignment with AI-generated content.
• Directly generating assignment text, descriptions,
comments, or conclusions using AI.
• Employing AI to produce charts, tables, or data to fulfil
assignment requirements.
• Utilizing AI to rewrite AI-generated search results.
Assignment 2 Melbourne School of Design
Case Study Scenario:
Your company specialises in project management and quantity surveying. A property developer, Blue
Sky Group, has engaged your team to deliver a mixed-used development with 3 levels of basement; 4
ground floor retails; 2 levels of office and 17 levels of residential apartments in Southbank. It is the
first time for your client to work on this development sector and they have many queries in relation
to contract management.
Based on your advice in Assignment 1, the client selected Design, Novated and Construct procurement
route and signed the building contract with the Contractor. After the construction started, your client
asked for more professional advice from your company. Refer to appendices for more information
about this project.
Assignment 2 Melbourne School of Design
Question 1 Default and Dispute
Due to the condition of COVID-19, the client is afraid that the Contractor may be in default and dispute.
The Principal asked for your professional advice for the relevant AS4000 clauses.
1.1 Explain the conditions of Contractor’s substantial breaches and the standard process if the
Contractor is in default.
` Explain a typical dispute process and how the project team can avoid disputes.
Question 2 Managing Contract Changes
After the construction starts, there are variations submitted by the Contractor due to various reasons.
You have assessed all of them and provided approval or rejection notices to the Contractor. The client
asked more specific queries regarding managing contract changes.
2.1 What conditions constitute contract sum adjustment under AS4000 and ABIC MW-1 contracts.
2.2 The Contractor submitted variation notices for Variation no.1 (refer to Appendix D).
a. Please provide Variation no.1 assessment using information provided in Appendix D.
b. Issue a variation approval instruction based on your assessed amount.
Assignment 2 Melbourne School of Design
Question 3 Variation and Extension of Time
On 20th September 2023, the Contractor submitted a delay notice stating that the changes of
regulation against the combustible materials will potentially delay the project. They need to change
partial quantities of external wall insulations and revise the existing order from the subcontractor.
The Contractor will request the Insulation Subcontractor to resubmit their quotation. The proposed
works will happen on site in 3 months time. The subcontractor emailed the project team and advised
they expect 3 weeks delay to deliver and install the upgrade scope.
3.1 The Contractor submitted the delay notice in Appendix E. They believe the Principal is fully
responsible for this delay cost. Please issue the Contractor an EOT Instruction letter including the
following information:
a. Explain whether any building contract clauses state how to address this delay cost.
b. Based on the subcontractor’s email, explain why Contractor’s anticipated delay duration is not
reasonable.
c. The Superintendent provides suggestions on the accelerated program: The Contractor may
concurrently work on fitout works on multiple floors to minimize impacts of delay.
d. Negotiate 21 calendar days delay to be submitted and approved.
3.2 After negotiating the Contractor’s delay notice, you have eventually reached an agreement with
the Contractor that 21 calendar days will be approved as an extension of time. The Contractor also
agreed to share the assessed delay cost as per contract clauses. Please work on the following:
a. Provide an EOT assessment (Variation No.2)
b. Issue an EOT approval letter stating the approved delay costs and revised practical completion
date
Assignment 2 Melbourne School of Design
Question 4 Practical Completion
Assume the Contractor submitted a claim on 28th August 2025 and you conducted an inspection on
the same day. You will issue the second last claim assessment within the required timeframe.
Assume the Contractor aims to complete the project on the 15th of September 2025. Upon
completion, your company is responsible for issuing the practical completion certificate and assessing
the final accounts.
4.1 Based on Appendix F, please prepare the second last progress claim assessment, including all
contract sum adjustments. Please use the information and templates in the Appendix F to fill in the
final agreed amounts. Please include variation assessed amounts from Question 2 & 3 and the cash
retention adjustment in your claim assessment.
4.2 After your final inspection on site, you agreed that the Contractor has achieved the practical
completion on 15th September 2025 subject to the Omissions and Defects in Appendix G. As a
Superintendent, you need to issue a practical completion certificate to the Contractor.
Assignment 2 Melbourne School of Design
Useful References
Question 1 Default and Dispute
1. Uher, T.E. and Davenport, P. (2009) Fundamentals of Building Contract Management. UNSW Press, Sydney:
Australia (Chapter 17 & 18); (available online through the Library).
2. Goldfayl, G. (2004) Construction Contract Administration, 2nd edn. University of New South Wales Press,
Sydney. (Chapter 4)
3. Constance E. Bagley: Managing Disputes: Mastering the Legal Aspects of Business.
4. Uher, T.E. and Davenport, P. (2009) Fundamentals of Building Contract Management. UNSW Press, Sydney:
Australia (Chapter 17 & 18); (available online through the Library).
5. Fiadjoe, Albert. Alternative Dispute Resolution : A Developing World Perspective, Taylor & Francis Group,
2004. ProQuest Ebook Central,
https://ebookcentral.proquest.com/lib/unimelb/detail.action?docID=3060846
(available online through the Library).
6. Goldfayl, G. (2004) Construction Contract Administration, 2nd edn. University of New South Wales Press,
Sydney. (Chapter 4)
7. Constance E. Bagley: Managing Disputes: Mastering the Legal Aspects of Business.
Question 2 Managing Contract Changes
1. Goldfayl, G. (2004) Construction Contract Administration, 2nd edn. University of New South Wales Press,
Sydney. (Chapter 6).
2. The Aqua Group guide to procurement, tendering & contract administration Oxford; Malden, MA: Blackwell
Pub: Davis. / Langdon- Chapter 29 (available online through the Library).
Question 3 Variation and Extension of Time
1. The Aqua Group guide to procurement, tendering & contract administration Oxford; Malden, MA: Blackwell
Pub: Davis. / Langdon- Chapter 32 (available online through the Library).
2. Trauner, Theodore J., Jr. Manginelli, William A. Lowe, J. Scott Nagata, Mark F. Furniss, Brian J.. (2009).
Construction Delays - Understanding Them Clearly, Analyzing Them Correctly (2nd Edition). (available online
through the Library).
3. Goldfayl, G. (2004) Construction Contract Administration, 2nd edn. University of New South Wales Press,
Sydney. (Chapter 7).
Question 4 Practical Completion
1. Goldfayl, G. (2004) Construction Contract Administration, 2nd edn. University of New South Wales Press,
Sydney. (Chapter 8)
2. The Aqua Group guide to procurement, tendering & contract administration Oxford; Malden, MA: Blackwell
Pub: Davis. / Langdon- Chapter 30 (available online through the Library).
3. Uher, T.E. and Davenport, P. (2009) Fundamentals of Building Contract Management. UNSW Press, Sydney:
Australia (Chapter 19); (available online through the Library)
Assignment 2 Melbourne School of Design
Appendix A Client’s Brief
Code Items Descriptions
1 Project Name Future Lives
2 Project Address Southbank VIC 3006
3 Zone Mixed Used Zone
4 Scope 3 Levels of basement;
Ground floor entry lobby, back of house, 4
retails;
2 levels of cold shell office;
17 levels of residential apartments (130 units);
Associated external works and services
Key Objectives
5 Programme The time is critical. The client expects to tender
without full completion of design documents.
Anticipated construction duration is 26 months
6 Budget The construction budget is limited at
$51,374,000 (excl GST). The client expects cost
certainty and less variations during the
construction stage.
7 Product The development aims to achieve standard
quality of finishes. Quality is not a key priority.
8 Past experience The client is new to this development sector, so
they want to minimise development risks.
Assignment 2 Melbourne School of Design
Appendix B – Project Stakeholder List
Code Stakeholder Descriptions
1 Client Blue Sky Group Pty Ltd
Non-novated
Consultants
2 Superintendent Your company was engaged from the beginning
of the project and signed a consultant contract
for project management services.
3 Quantity Surveyor Your company was engaged from the beginning
of the project and signed a consultant contract
for quantity surveying services.
4 Town Planner Engaged by the client since land acquisition
stage.
5 Land Surveyor Engaged by the client during the design stage.
6 Other Consultants Engaged by the client during the design stage.
Novated
Consultants
7 Architect Engaged by the client during the design stage
and novated to the Contractor during the
construction stage.
8 Structural Same as per Item 7.
Engineer
9 Services Engineer Same as per Item 7.
10 ESD Consultant Same as per Item 7.
Construction
11 Main Contractor Simpsons Construction Pty Ltd
12 Subcontractors Signed contracts and managed by the Main
Contractor.
13 Client nominated Signed the contract with the Client but managed
environmental by the Main Contractor to conduct soil
contractor remediation works.
of
Not Applicable
Assignment 2 Melbourne School of Design
Appendix C – AS4000-1997 Annexures
Annexure A
Code Items Descriptions
1 Principal Blue Sky Group Pty Ltd
2 Principals address Parkville, Victoria
3 Contractor Simpsons Construction Pty Ltd
4 Contractor’s address Parkville, Victoria
5 Superintendent Your Company
6 Superintendent’s Your Name
representative
7 Milestone dates Commencement date: 2nd August 2023
Practical completion date: 26 months
from site commencement
8 Governing law Building Act
9 Currency Australian dollars
10 Bills of quantities Not Applicable
11
Quantities in schedule
rates
12 Contract sum Trade works: $51,374,000
Prime cost and provisional sum:
$100,000
Novated consultant fees: $1,130,000
Total Contract Sum: $52,604,000 (excl
GST)
13 Contractor’s security
a Form Cash retention
b Amount or maximum 5% of the contract sum
percentage of contract
sum
(clause 5)
c If retention moneys, 10%, until the limit in Item 13(b)
percentage of each
progress certificate
(clause 5 and subclause
37.2)
d Time for provision Within 28 days after date of acceptance
of tender
e Additional security for Applicable subject to Superintendent’s
unfixed plant and approval
materials
(subclauses 5.4 and
37.3)
f Contractor’s security 50% of amount held
upon certificate of
Assignment 2 Melbourne School of Design
practical completion is
reduced by
(subclause 5.4)
14 Principal’s security Not Applicable
15 Principal-supplied Contract documentations
documents
16 Time for 14 days
superintendent’s
Decision about
documents
17 Subcontract work Not Applicable
requiring Approval
18 Novation Architect; Structural Engineer; Services
Engineer; Landscape Architect
19 Legislative requirements Not Applicable
20 Insurance of the works $52,604,000 (excl GST)
(clause 16)
21 Public liability insurance $20,000,000 (excl GST)
22 Time for giving Within 14 days of date of acceptance of
possession tender
23 Qualifying causes of To be assessed by the Superintendent
delay
24 Liquidated damages $3,000 per day
25 Bonus for early practical Not Applicable
completion
26 Delay damages, other To be assessed by the Superintendent
compensable causes
27 Defects liability period 12 months
28 Progress Claim 25th day of each month for WUC
29 Unfixed plant and Lifts
materials for which
payment claims may be
made
(subclause 37.3)
30 Interest rate on overdue 18% per annum
payments
31 Time for Principal to 14 days
rectify inadequate
possession
32 Nominated arbitration The President of the Institute of
Arbitrators & Mediators Australia
33 Variation Margin 10%
Assignment 2 Melbourne School of Design
Annexure E - Agreed Schedule of Rates
As per rates noted in Variation no.1 and Variation no.2 tips in Appendix D & E.
Annexure H – Inclusions, exclusions and clarifications schedule
Item 12
Should the design regulations have been changed during the construction, The Contractor to liaise
with the consultants and subcontractors for coordination of new design and order. If the Contractor
is delayed by a design regulation change, it must be entitled to an EOT with Delay Costs to be equally
shared between Principal and Contractor. The Superintendent is responsible to assess the delay
costs.
Assignment 2 Melbourne School of Design
Appendix D – Contractor’s Variation Notice &
Assessment Tips
Assignment 2 Melbourne School of Design
10th September 2023
The Superintendent
Your Company Name
Your Company Address
E-mail:
Dear Superintendent
Project: Future Lives
Principal: Blue Sky Group Pty Ltd
Contractor: Simpsons Construction Pty Ltd
Practical Completion Date: 2nd October 2025
NOTIFICATION OF VARIATION
In accordance with AS4000 Clause 36 of the General Conditions of Contract, we hereby notify the
Superintendent that the variation to office levels is able to be effected.
We also hereby notify that the effect of the variation will be:
1. New floor to ceiling height 10mm thick standard plasterboard lining to board room.
2. New mosaic tiles to lobby areas.
3. Additional structural steels required for operable walls.
4. Additional design fee.
5. Addition builder’s margin of 15%.
The variation will incur an additional cost of $137,000 and the contract sum will need to be adjusted.
Variation to authority permits cannot be confirmed at this current time. Based on our management
of the program, we expect no delays to the original practical completion date.
Please refer to the variation breakdown for more details.
Yours Faithfully,
Bart Simpson
Contract Administrator
Simpsons Construction Pty Ltd
Assignment 2 Melbourne School of Design
Variation No.1 Tips
*All amounts below are exclusive o
GST.
1. Information received from suppliers and senior managers
(1) New 10mm thick standard plasterboard lining to board room.
Supply Cost Install Cost Sundry Works
Quantity Disagree with 40m2. Disagree. Allow 1 man -
The total wall length is 6.3 hr as per Rawlinson
10m, and the floor to
ceiling height is 3.0m.
Rate Quotation is received as Agree with $95/hr -
$18/m2
Other - - Allow 3% of the sum of
supply and install costs
(2) New mosaic tiles to lobby areas.
Supply Cost Install Cost Sundry Works
Quantity Measured Floor Tile Install: Allow -
160m2 floor tiles from 1.1 sqm for 1 hr
the submitted plans
Rate Quote is received as Agree with $95/hr -
$50/m2
Other - - Allow 5% of the sum of
supply and install costs
(3) Additional Structural Steels to Operable Walls
Structural Steel Fixing Point
Quantity As per table below As per table below
Rate Assess as $8,000/t for Supply and install $80/no. supply and
install for each structural
bolt
Sundry Works Assess 10% of the structural steel quantities;
Rate is as per structural steel.
Measured Quantities
Type Section Weight (kg/m) Additional Length (m)
B1 360UB 46 5 no. ; 8m (each)
B2 360UB 56 3 no. ; 6m (each)
C1 200UC 59 6 no. ; 3m (each)
C2 200UC 52 8 no. ; 2m (each)
Fixing Fixing points 4 structural bolts per fixing point 8no. fixing points
(4) Additional Design Fee
You have reviewed the invoice and agreed the additional design fee of $7,000.
(5) Variation Margin
As per AS4000 Annexure A
Appendix D Contractor's Breakdown
VARIATION NO.1 Changes of scope to office fitouts
PROJECT ADDRESS
Quantity Unit Rate
a 70 m2 m2
12 hr
c 3% %
260 m2 m2
d 200 hr hr
c 6% %
a 2.2 t t $ -
b 2 t t $ -
c 1.5 t t $ -
d 0.8 t t $ -
e 40 No no.
f 0.78 t t
4
a
I
t
$ -
$ -
119,735
11,973.50
131,708.50 $ -
8,500
8,500
8,500
8,500
Sub-Total
Variation Preliminary and Margin
Final Assessed Amount
Additional Design Fee
Design fee as per invoice 1.0 Item 7000 7,000 -
Allowance for cast in connections and wastage for 8500 6,630 -
structural steel
supply and install rate of $100/no)
Sundry allowance
Additional structur
Supply & Install Cost
B1 - 360UB
B2 - 60UB
C1 - 200UC
C2 - 200UC
Allowance for fixing point bolts (as per agreed 100 4,000 -
18,700
17,000
12,750
6,800
sundry works
3 al steels to operable walls
Sundry works and wastage
Allowance for waterproofing, cutting wastage and 40,200 2,412 -
Install cost
Install cost
Install cost for floor tiles including bedding,
pointing
110 -
and cleaning
70
22,000
a
Supply of floor tiles 18,200
-
Sundry works and make good
Allowance for sundry works 4,120 123 -
2
New mosaic tiles to lobby areas
Supply cost
110 1,320
Install cost
b
Allow 1 man 1.5 days work
hr -
Supply cost
Supply of 10mm thick standard plasterboard lining 40 2,800 -
to board room - 10m length x 4m height
1
12mm thick villaboard lining
Item Description
Simpsons Construction Pty Ltd Your Company
Diffefrences Comments
Quantity Unit Rate Total Total
Assignment 2 Melbourne School of Design
Appendix E – Contractor’s Delay Notice &
Assessment Tips
Assignment 2 Melbourne School of Design
20th September 2023
Future Lives
St Kilda Road, Melbourne VIC 3004
Attention: Superintendent’s name
Dear Sir,
NOTIFICATION OF DELAY
Pursuant to Clause 34.2 of the AS4000 General Conditions of Contract and item 12 of Annexure Part
H – inclusions, exclusions and clarifications schedule, Notice is hereby given of a likely Delay to the
Project:
Reference: NOD 001
Original Practical Completion Date: 2nd October 2025
Details of Delay: Delay to performance on site caused by compliance with the requirements of the
non-combustible cladding materials and additional time due to re-design, re-approval and re-
ordering.
Cause of Delay: Delay to performance due to changes to partial external cladding combustible
requirements.
The works required include the following summary (refer to variation no.2 breakdown);
• Upgrade the single layer insulation materials in existing cladding system to double layers
of higher standard of fire-resistant insulations
• Place the revised order to the subcontractor and adjust the manufacturing requirements
• Additional design and planning approval fees
• Additional preliminaries and site running costs due to the delay
Anticipated Delay Duration: We anticipate the entire project will be delayed by 35 calendar days.
Delay Costs: $148,455
Best Regards,
Bart Simpson
Contract Administrator
Simpsons Construction Pty Ltd
Assignment 2 Melbourne School of Design
Variation No.2 Tips
*All amounts below are exclusive of GST.
1. Information received from suppliers and senior
managers
(1) Batt insulation credits in original contract
scope
Supply Credits Install Credits Sundry Works Credits
Quantity Measured as 700m2 Disagree. Allow 2men -
18.5 hours each as per
Rawlinson
Rate Rate should be assessed Assess $90/m2 as per -
as $5/m2 as per contract rate
quotation
Other - - Assess it as 2% of the
sum of supply and install
credits
(2) Fire-resistant insulation as the revised
scope
Supply Cost Install Cost Sundry Works
Quantity Measured as 1,400m2 Allow 4 men 18.5 hours -
each as per Rawlinson
Rate Assessed as $10/m2 as Agree with $100/hr -
per quotation
Other - - Assess it as 3% of the
sum of supply and install
credits
(3) Additional design and planning approval fees
You have reviewed and agreed with the amount of $7,000 as per invoices.
(4) Additional preliminaries and site running costs
Items Quantity Rate
Site Supervisor Only agreed and assessed Weekly Rate:
3 calendar weeks Assess 40 hours (a week) with $110/hr
agreed rate
OHS/Leading Hand Only agreed and assessed Weekly Rate:
3 calendar weeks Assess 40 hours (a week) with $95/hr
agreed rate
Project Manager Only agreed and assessed Weekly Rate:
3 calendar weeks Assess 40 hours (a week) with $115/hr
agreed rate
Shit sheds hiring Only agreed and assessed Weekly Rate:
3 calendar weeks Assess 6 no. x $90/wk
Hoardings and Only agreed and assessed Weekly Rate:
temporary fencing hiring 3 calendar weeks Assess 1 no. x $200/wk
Gantry hiring Only agreed and assessed Weekly Rate:
3 calendar weeks Assess 1 no. x $2,000/wk
Scaffold stairs/access Only agreed and assessed Weekly Rate:
hiring 3 calendar weeks Assess 1 no. x $500/wk
(5) Variation Margin
As per AS4000 Annexure A
Contractor's Breakdown
VARIATION NO.2 Delay cost
PROJECT ADDRESS
Quantity Unit Rate
1
Supply of 700 m2
Install cost
b 45 hr hr
c 2% %
1,500.00 m2 m2
80.00 hr
c %
3
a 1 Item Item
4
a 6 wk w $ - $ -
b 6 wk w $ - $ -
c 6 wk w $ - $ -
d 6 wk w $ - $ -
e 6 wk w $ - $ -
f 6 wk w $ - $ -
g 6 wk
w
$ - $ -
$ - $ -
$ - $ -
$ - $ -
12,911.50
142,026.50
27,000
23,400
28,200
3,600
1,200
3,000
15,000
129,115
Preliminary and Margin
Total
4,500
3,900
4,700
600
200
2,500
500
Site supervisor
OHS/Leading hand
Project manager
Site sheds hiring
Hoardings and temporary fencing hiring
Gantry hiring
Scaffold stairs/access hiring
Sub-Total
Design and planning fees 7,000 7,000 $ - $
Additional preliminaries and site running costs
Allowance for sundry works 3% 26,000.00 780.00 $ - $
3.Additional design and planning approval fees
Supply cost
a
Supply of fire-resistant insulation 12.00 18,000.00 $ - $
Install cost
8,000.00 hr
$ -
$ -
b $
Install cost
Install of fire-resistant insulation
100.00
Sundry works and wastage
2
New Scope of fire-resistant insulation
Sundry works and make good
Allowance for sundry works (7,000) (140) $ - $
Install cost for batt insulation laid between steel (85) (3,825) $ - $
framing
Contract Scope Credits
Supply cost
a batt insulation (3) (2,100) m2 $ - $
Upgrade single layer insulation to higher
(1)
standard of fire-resistant insulation
Item Description
Simpsons Construction Pty Ltd Your Company
Diffefrences Comments
Quantity Unit Rate Total Total
Assignment 2 Melbourne School of Design
Appendix F – Contractor’s Claim
Available Information
After the site inspection, you assessed and disagreed with a few trades. After negotiation, the
following assessment have been agreed by the Contractor:
Trade Works
1. Preliminaries and Margins – Agreed with 97% complete for the demobilization works in the last
month
2. Doors – Agreed with 97% complete. 9 doors were not installed on Ground Level.
3. Finishes – Agreed with 98% complete. 250m2 pavers were not installed in outdoor communal space
on upper levels.
4. Joinery – Agreed with 97% complete. Stone benchtops were not as progressed as claimed on upper
levels.
5. Hydraulic, Electrical, Mechanical, Fire and Lift services trades – Agreed with 98% complete. Services
engineers have not signed off the compliance certificates and issued the operational manuals.
6. External Works – Agreed with 93% complete. Planter boxes and fencing were not as progressed as
claimed.
Provisional Sum
7. Wayfinding Signage – Agreed with 95% complete. A few signages were not installed on upper levels.
Novated Consultant Fees
8. Architect – Agreed with 98% complete as per invoice to date.
Variations
9. Variation no.1 Changes of scope to office fitouts – The Contractor has agreed with your assessed
amount in Question 2. It achieved 100% complete.
10. Variation no.2 Delay Cost – The Contractor has agreed with your assessed amount in Question 3.
It achieved 100% complete.
Project Name Logo
Client's Name:
Contractor's Name:
Claim Submission Date:
Claim Issue Date: Date
Building Works Breakdown
TRADE CONTRACT SUM % BUILDER'S CLAIM % Assessed Amount PREVIOUS THIS CLAIM
TRADE WORKS
1 Preliminaries and Margins 8,200,000 99% 8,118,000 7,300,000
2 Groundworks 5,400,000 100% 5,400,000 5,400,000
3 Concrete Works 13,000,000 100% 13,000,000 12,300,000
4 Masonry 390,000 100% 390,000 350,000
5 Carpentry 484,000 100% 484,000 420,000
6 Metalwork 560,000 100% 560,000 510,000
7 Glazing 4,500,000 100% 4,500,000 4,100,000
8 Doors 450,000 100% 450,000 410,000
9 Partitions & Ceilings 2,300,000 98% 2,254,000 1,920,000
10 Finishes 2,900,000 100% 2,900,000 2,560,000
11 Joinery 2,000,000 98% 1,960,000 1,720,000
12 Painting 680,000 98% 666,400 635,000
13 Whitegoods 480,000 100% 480,000 473,000
14 Hydraulic Servcies 2,200,000 100% 2,200,000 2,150,000
15 Electrical Services 2,500,000 100% 2,500,000 2,450,000
16 Mechanical Services 2,700,000 100% 2,700,000 2,600,000
17 Fire Services 970,000 100% 970,000 910,000
18 Lifts 930,000 100% 930,000 910,000
19 External Works 730,000 95% 693,500 620,000
TOTAL (EXCLUDING GST) 51,374,000
100
%
51,155,900 47,738,000
Project Name Logo
Client's Name:
Contractor's Name:
Claim Submission Date:
Claim Issue Date: Date
Prime Cost / Provisional Sum Previously Assessed
Description Contract % Claimed % Assessed Assessed this Month
Wayfinding Signage 100000
100%
100000
0%
80,000
Progress Claim Summary $ 100,000 100% $ 100,000 $ - $ 80,000 $ -
Prime Cost and Provisional Sums
Project Name Logo
Client's Name:
Contractor's Name:
Claim Submission Date:
Claim Issue Date: Date
Consultant Contract % Claimed % Assessed Previously Assessed
Assessed this Month
Architect 800,000 100% 800,000 645,000
Structural Engineer 130,000 100% 130,000 111,000
Services Engineer 110,000 100% 110,000 92,000
ESD Consultant 90,000 100% 90,000 73,000
Novated Consultants Fees 1,130,000 100% 1,130,000 $ - 921,000 $ -
NOVATED CONSULTANT FEES
Project Name Logo
Client's Name:
Contractor's Name:
Claim Submission Date:
Claim Issue Date: Date
VARIATIONS
VQ Variation Description Submitted Approved % Claimed % Assessed Previously Assessed
Assessed this Month
Changes of scope to office levels
(Question2) 100%
2 Delay Cost (Question3) 148,455 To Be Filled
100%
100%
125,824 To Be Filled - To Be Filled
3 -
4 -
5 -
6 -
7 -
8 -
10 -
11 -
12 -
13 -
14 -
-
285,454 $ - 250,197 0% $ - $ - $ -
To Be Filled - To Be Filled
Variations
1 137,000 To Be Filled 124,373
PROGRESS PAYMENT SUMMARY
Project Name
Client's Name:
Contractor's Name:
Claim Submission Date:
Claim Issue Date:
CONTRACT SUM % CURRENT PREVIOUS THIS MONTH
51,374,000
To Be
Filled
To Be
Filled
To Be
Filled
$ 100,000
To Be
Filled
To Be
Filled
To Be
Filled
1,130,000
To Be
Filled
To Be
Filled
To Be
Filled
To Be Filled
To Be
Filled
To Be
Filled
To Be
Filled
-
52,504,000 0%
Gross Value
To Be
Filled
To Be
Filled
To Be
Filled
Net Value of Work to Date
Less: Previous Expenditure
Amount
Certified Payment this Claim (Excl. GST)
Cash Retention
Approved Variations
Approved PC Sum Adjustment
Adjusted
Contract Sum
Trade Work Value
Prime Cost And Provisional Sums
Novated Consultant Fees
Variations
XXX
XXX
XXX
To Be Filled
To Be Filled
Assignment 2 Melbourne School of Design
Appendix G – Findings from Final Inspection
All contract scope has been completed in the amount of $52,504,000 with additional approved
variations.
The practical completion date is achieved on 15th September 2025, subject to the Omissions and
Defects noted below:
The following documents have been received:
1. Owner’s manuals
2. Statement of compliance
3. Occupancy permit
4. Other authority approved notices
The following documents to be submitted no later 21 days after the Date of
Practical Completion:
5. All maintenance, operating and training manuals
6. Contractor Guarantees and Warranties
7. As-Built Drawings
The following documents to be submitted no later 14 days after the Date of Practical Completion:
8. Induct the Owners Corporation manager to the Works
9. Access keys and fobs
The following specified Omission and Defect shall be completed by the date indited below:
The following works to be completed 3 weeks from the Date of Practical Completion:
1. Purchaser Defects as recorded by Property Settlement Solutions or Purchaser to the satisfaction
of the Superintendent and Purchaser
2. Superintendent and Principal Defects
The following works to be completed 12 weeks from the Date of Practical Completion:
3. Final cleaning of all apartments
4. Removal of all amenities, rubbish, excess materials to the satisfaction of the Superintendent
The following works to be completed 18 weeks from the Date of Practical Completion:
5. Relocate storage cages for lot 201, 303, 405
6. Defects on the building signage
7. Defects on ground lobby external pavers
8. Basement 2 rain water tank area to be sealed
9. Defects on Unit 102 air conditioning outdoor unit
DESIGN, FACULTY OF
ARCHITECTURE, BUILDING &
PLANNING
ABPL90335
CONTRACT MANAGEMENT
Assignment 2
30% of total mark
Assignment 2 Melbourne School of Design
Format
Assignment 2 Summary
Covered Topics
• Interim Valuation/Progress Claims;
• Default and Disputes Management;
• Managing Contract Changes
• Delays and Extension of Time
Due Date: 13th October 2023
Linked Learning Objectives:
Upon the completion of this assignment, student should be able to:
• Interpret, explain, and compare the obligations and responsibilities imposed by selected general
conditions of contracts used locally and internationally.
• Identify potential situations that may have legal consequences and negatively impact upon the
project delivery outcomes.
• Analyse the complex and interrelated issues associated with contract management and identify
when to seek professional advice on a project.
Assessment Criteria/Rubrics: refer the attachment
Write your answers in a report format. Describe your answers clearly with references to clause in
either AS4000-1997 contract or ABIC MW-1 2008 contract.
Remember you are engaged by the client to provide professional advice. The contents of your report
must be simple and easy to understand.
When you cite any contracts clauses , make sure you specify the relevant clauses forming the basis of
your answer.
When a formal letter is required, make sure you describe clearly the issue requiring attention
(instructions) citing the contractual basis and reasons for the instructions.
You may refer to Rawlinsons Construction Cost Guide 2022/2023 for variation assessment.
When you provide references from your research, please only use APA reference style.
The assignment 2 report and any appendices should be submitted in a word document. A separate
Excel document is also required for calculation checks. Please ensure all formula and live links are
saved in the Excel.
Report Length: 1,500 – 2,000 words
Tips
• Questions 1: Week 9&10
• Question 2: Week 6, 7, 8
• Question 3: Week 6, 7, 8
• Question 4: Week 8 - 12
Using AI Responsibly: Assignment Guidelines
In this assignment, you are allowed to incorporate AI tools for
specific purposes that align with academic integrity and
supplement your research process. Here's how you can use AI
tools responsibly:
Permissible Uses of AI:
1. Conducting general-purpose information searches and
gathering information.
2. Collecting and searching general documents, like contract
types and clauses, for reference purposes.
3. Utilizing AI tools in a manner that adheres to the
University's academic integrity policies ( https://
policy.unimelb.edu.au/MPF1310/ ).
4. Integrating AI tools without compromising your
commitment to the assignment's rubric requirements.
Assignment 2
We strongly advise against using AI tools for the following
scenarios, but not limited to:
• Replacing original works, thoughts, and the main logic of
the assignment with AI-generated content.
• Directly generating assignment text, descriptions,
comments, or conclusions using AI.
• Employing AI to produce charts, tables, or data to fulfil
assignment requirements.
• Utilizing AI to rewrite AI-generated search results.
Assignment 2 Melbourne School of Design
Case Study Scenario:
Your company specialises in project management and quantity surveying. A property developer, Blue
Sky Group, has engaged your team to deliver a mixed-used development with 3 levels of basement; 4
ground floor retails; 2 levels of office and 17 levels of residential apartments in Southbank. It is the
first time for your client to work on this development sector and they have many queries in relation
to contract management.
Based on your advice in Assignment 1, the client selected Design, Novated and Construct procurement
route and signed the building contract with the Contractor. After the construction started, your client
asked for more professional advice from your company. Refer to appendices for more information
about this project.
Assignment 2 Melbourne School of Design
Question 1 Default and Dispute
Due to the condition of COVID-19, the client is afraid that the Contractor may be in default and dispute.
The Principal asked for your professional advice for the relevant AS4000 clauses.
1.1 Explain the conditions of Contractor’s substantial breaches and the standard process if the
Contractor is in default.
` Explain a typical dispute process and how the project team can avoid disputes.
Question 2 Managing Contract Changes
After the construction starts, there are variations submitted by the Contractor due to various reasons.
You have assessed all of them and provided approval or rejection notices to the Contractor. The client
asked more specific queries regarding managing contract changes.
2.1 What conditions constitute contract sum adjustment under AS4000 and ABIC MW-1 contracts.
2.2 The Contractor submitted variation notices for Variation no.1 (refer to Appendix D).
a. Please provide Variation no.1 assessment using information provided in Appendix D.
b. Issue a variation approval instruction based on your assessed amount.
Assignment 2 Melbourne School of Design
Question 3 Variation and Extension of Time
On 20th September 2023, the Contractor submitted a delay notice stating that the changes of
regulation against the combustible materials will potentially delay the project. They need to change
partial quantities of external wall insulations and revise the existing order from the subcontractor.
The Contractor will request the Insulation Subcontractor to resubmit their quotation. The proposed
works will happen on site in 3 months time. The subcontractor emailed the project team and advised
they expect 3 weeks delay to deliver and install the upgrade scope.
3.1 The Contractor submitted the delay notice in Appendix E. They believe the Principal is fully
responsible for this delay cost. Please issue the Contractor an EOT Instruction letter including the
following information:
a. Explain whether any building contract clauses state how to address this delay cost.
b. Based on the subcontractor’s email, explain why Contractor’s anticipated delay duration is not
reasonable.
c. The Superintendent provides suggestions on the accelerated program: The Contractor may
concurrently work on fitout works on multiple floors to minimize impacts of delay.
d. Negotiate 21 calendar days delay to be submitted and approved.
3.2 After negotiating the Contractor’s delay notice, you have eventually reached an agreement with
the Contractor that 21 calendar days will be approved as an extension of time. The Contractor also
agreed to share the assessed delay cost as per contract clauses. Please work on the following:
a. Provide an EOT assessment (Variation No.2)
b. Issue an EOT approval letter stating the approved delay costs and revised practical completion
date
Assignment 2 Melbourne School of Design
Question 4 Practical Completion
Assume the Contractor submitted a claim on 28th August 2025 and you conducted an inspection on
the same day. You will issue the second last claim assessment within the required timeframe.
Assume the Contractor aims to complete the project on the 15th of September 2025. Upon
completion, your company is responsible for issuing the practical completion certificate and assessing
the final accounts.
4.1 Based on Appendix F, please prepare the second last progress claim assessment, including all
contract sum adjustments. Please use the information and templates in the Appendix F to fill in the
final agreed amounts. Please include variation assessed amounts from Question 2 & 3 and the cash
retention adjustment in your claim assessment.
4.2 After your final inspection on site, you agreed that the Contractor has achieved the practical
completion on 15th September 2025 subject to the Omissions and Defects in Appendix G. As a
Superintendent, you need to issue a practical completion certificate to the Contractor.
Assignment 2 Melbourne School of Design
Useful References
Question 1 Default and Dispute
1. Uher, T.E. and Davenport, P. (2009) Fundamentals of Building Contract Management. UNSW Press, Sydney:
Australia (Chapter 17 & 18); (available online through the Library).
2. Goldfayl, G. (2004) Construction Contract Administration, 2nd edn. University of New South Wales Press,
Sydney. (Chapter 4)
3. Constance E. Bagley: Managing Disputes: Mastering the Legal Aspects of Business.
4. Uher, T.E. and Davenport, P. (2009) Fundamentals of Building Contract Management. UNSW Press, Sydney:
Australia (Chapter 17 & 18); (available online through the Library).
5. Fiadjoe, Albert. Alternative Dispute Resolution : A Developing World Perspective, Taylor & Francis Group,
2004. ProQuest Ebook Central,
https://ebookcentral.proquest.com/lib/unimelb/detail.action?docID=3060846
(available online through the Library).
6. Goldfayl, G. (2004) Construction Contract Administration, 2nd edn. University of New South Wales Press,
Sydney. (Chapter 4)
7. Constance E. Bagley: Managing Disputes: Mastering the Legal Aspects of Business.
Question 2 Managing Contract Changes
1. Goldfayl, G. (2004) Construction Contract Administration, 2nd edn. University of New South Wales Press,
Sydney. (Chapter 6).
2. The Aqua Group guide to procurement, tendering & contract administration Oxford; Malden, MA: Blackwell
Pub: Davis. / Langdon- Chapter 29 (available online through the Library).
Question 3 Variation and Extension of Time
1. The Aqua Group guide to procurement, tendering & contract administration Oxford; Malden, MA: Blackwell
Pub: Davis. / Langdon- Chapter 32 (available online through the Library).
2. Trauner, Theodore J., Jr. Manginelli, William A. Lowe, J. Scott Nagata, Mark F. Furniss, Brian J.. (2009).
Construction Delays - Understanding Them Clearly, Analyzing Them Correctly (2nd Edition). (available online
through the Library).
3. Goldfayl, G. (2004) Construction Contract Administration, 2nd edn. University of New South Wales Press,
Sydney. (Chapter 7).
Question 4 Practical Completion
1. Goldfayl, G. (2004) Construction Contract Administration, 2nd edn. University of New South Wales Press,
Sydney. (Chapter 8)
2. The Aqua Group guide to procurement, tendering & contract administration Oxford; Malden, MA: Blackwell
Pub: Davis. / Langdon- Chapter 30 (available online through the Library).
3. Uher, T.E. and Davenport, P. (2009) Fundamentals of Building Contract Management. UNSW Press, Sydney:
Australia (Chapter 19); (available online through the Library)
Assignment 2 Melbourne School of Design
Appendix A Client’s Brief
Code Items Descriptions
1 Project Name Future Lives
2 Project Address Southbank VIC 3006
3 Zone Mixed Used Zone
4 Scope 3 Levels of basement;
Ground floor entry lobby, back of house, 4
retails;
2 levels of cold shell office;
17 levels of residential apartments (130 units);
Associated external works and services
Key Objectives
5 Programme The time is critical. The client expects to tender
without full completion of design documents.
Anticipated construction duration is 26 months
6 Budget The construction budget is limited at
$51,374,000 (excl GST). The client expects cost
certainty and less variations during the
construction stage.
7 Product The development aims to achieve standard
quality of finishes. Quality is not a key priority.
8 Past experience The client is new to this development sector, so
they want to minimise development risks.
Assignment 2 Melbourne School of Design
Appendix B – Project Stakeholder List
Code Stakeholder Descriptions
1 Client Blue Sky Group Pty Ltd
Non-novated
Consultants
2 Superintendent Your company was engaged from the beginning
of the project and signed a consultant contract
for project management services.
3 Quantity Surveyor Your company was engaged from the beginning
of the project and signed a consultant contract
for quantity surveying services.
4 Town Planner Engaged by the client since land acquisition
stage.
5 Land Surveyor Engaged by the client during the design stage.
6 Other Consultants Engaged by the client during the design stage.
Novated
Consultants
7 Architect Engaged by the client during the design stage
and novated to the Contractor during the
construction stage.
8 Structural Same as per Item 7.
Engineer
9 Services Engineer Same as per Item 7.
10 ESD Consultant Same as per Item 7.
Construction
11 Main Contractor Simpsons Construction Pty Ltd
12 Subcontractors Signed contracts and managed by the Main
Contractor.
13 Client nominated Signed the contract with the Client but managed
environmental by the Main Contractor to conduct soil
contractor remediation works.
of
Not Applicable
Assignment 2 Melbourne School of Design
Appendix C – AS4000-1997 Annexures
Annexure A
Code Items Descriptions
1 Principal Blue Sky Group Pty Ltd
2 Principals address Parkville, Victoria
3 Contractor Simpsons Construction Pty Ltd
4 Contractor’s address Parkville, Victoria
5 Superintendent Your Company
6 Superintendent’s Your Name
representative
7 Milestone dates Commencement date: 2nd August 2023
Practical completion date: 26 months
from site commencement
8 Governing law Building Act
9 Currency Australian dollars
10 Bills of quantities Not Applicable
11
Quantities in schedule
rates
12 Contract sum Trade works: $51,374,000
Prime cost and provisional sum:
$100,000
Novated consultant fees: $1,130,000
Total Contract Sum: $52,604,000 (excl
GST)
13 Contractor’s security
a Form Cash retention
b Amount or maximum 5% of the contract sum
percentage of contract
sum
(clause 5)
c If retention moneys, 10%, until the limit in Item 13(b)
percentage of each
progress certificate
(clause 5 and subclause
37.2)
d Time for provision Within 28 days after date of acceptance
of tender
e Additional security for Applicable subject to Superintendent’s
unfixed plant and approval
materials
(subclauses 5.4 and
37.3)
f Contractor’s security 50% of amount held
upon certificate of
Assignment 2 Melbourne School of Design
practical completion is
reduced by
(subclause 5.4)
14 Principal’s security Not Applicable
15 Principal-supplied Contract documentations
documents
16 Time for 14 days
superintendent’s
Decision about
documents
17 Subcontract work Not Applicable
requiring Approval
18 Novation Architect; Structural Engineer; Services
Engineer; Landscape Architect
19 Legislative requirements Not Applicable
20 Insurance of the works $52,604,000 (excl GST)
(clause 16)
21 Public liability insurance $20,000,000 (excl GST)
22 Time for giving Within 14 days of date of acceptance of
possession tender
23 Qualifying causes of To be assessed by the Superintendent
delay
24 Liquidated damages $3,000 per day
25 Bonus for early practical Not Applicable
completion
26 Delay damages, other To be assessed by the Superintendent
compensable causes
27 Defects liability period 12 months
28 Progress Claim 25th day of each month for WUC
29 Unfixed plant and Lifts
materials for which
payment claims may be
made
(subclause 37.3)
30 Interest rate on overdue 18% per annum
payments
31 Time for Principal to 14 days
rectify inadequate
possession
32 Nominated arbitration The President of the Institute of
Arbitrators & Mediators Australia
33 Variation Margin 10%
Assignment 2 Melbourne School of Design
Annexure E - Agreed Schedule of Rates
As per rates noted in Variation no.1 and Variation no.2 tips in Appendix D & E.
Annexure H – Inclusions, exclusions and clarifications schedule
Item 12
Should the design regulations have been changed during the construction, The Contractor to liaise
with the consultants and subcontractors for coordination of new design and order. If the Contractor
is delayed by a design regulation change, it must be entitled to an EOT with Delay Costs to be equally
shared between Principal and Contractor. The Superintendent is responsible to assess the delay
costs.
Assignment 2 Melbourne School of Design
Appendix D – Contractor’s Variation Notice &
Assessment Tips
Assignment 2 Melbourne School of Design
10th September 2023
The Superintendent
Your Company Name
Your Company Address
E-mail:
Dear Superintendent
Project: Future Lives
Principal: Blue Sky Group Pty Ltd
Contractor: Simpsons Construction Pty Ltd
Practical Completion Date: 2nd October 2025
NOTIFICATION OF VARIATION
In accordance with AS4000 Clause 36 of the General Conditions of Contract, we hereby notify the
Superintendent that the variation to office levels is able to be effected.
We also hereby notify that the effect of the variation will be:
1. New floor to ceiling height 10mm thick standard plasterboard lining to board room.
2. New mosaic tiles to lobby areas.
3. Additional structural steels required for operable walls.
4. Additional design fee.
5. Addition builder’s margin of 15%.
The variation will incur an additional cost of $137,000 and the contract sum will need to be adjusted.
Variation to authority permits cannot be confirmed at this current time. Based on our management
of the program, we expect no delays to the original practical completion date.
Please refer to the variation breakdown for more details.
Yours Faithfully,
Bart Simpson
Contract Administrator
Simpsons Construction Pty Ltd
Assignment 2 Melbourne School of Design
Variation No.1 Tips
*All amounts below are exclusive o
GST.
1. Information received from suppliers and senior managers
(1) New 10mm thick standard plasterboard lining to board room.
Supply Cost Install Cost Sundry Works
Quantity Disagree with 40m2. Disagree. Allow 1 man -
The total wall length is 6.3 hr as per Rawlinson
10m, and the floor to
ceiling height is 3.0m.
Rate Quotation is received as Agree with $95/hr -
$18/m2
Other - - Allow 3% of the sum of
supply and install costs
(2) New mosaic tiles to lobby areas.
Supply Cost Install Cost Sundry Works
Quantity Measured Floor Tile Install: Allow -
160m2 floor tiles from 1.1 sqm for 1 hr
the submitted plans
Rate Quote is received as Agree with $95/hr -
$50/m2
Other - - Allow 5% of the sum of
supply and install costs
(3) Additional Structural Steels to Operable Walls
Structural Steel Fixing Point
Quantity As per table below As per table below
Rate Assess as $8,000/t for Supply and install $80/no. supply and
install for each structural
bolt
Sundry Works Assess 10% of the structural steel quantities;
Rate is as per structural steel.
Measured Quantities
Type Section Weight (kg/m) Additional Length (m)
B1 360UB 46 5 no. ; 8m (each)
B2 360UB 56 3 no. ; 6m (each)
C1 200UC 59 6 no. ; 3m (each)
C2 200UC 52 8 no. ; 2m (each)
Fixing Fixing points 4 structural bolts per fixing point 8no. fixing points
(4) Additional Design Fee
You have reviewed the invoice and agreed the additional design fee of $7,000.
(5) Variation Margin
As per AS4000 Annexure A
Appendix D Contractor's Breakdown
VARIATION NO.1 Changes of scope to office fitouts
PROJECT ADDRESS
Quantity Unit Rate
a 70 m2 m2
12 hr
c 3% %
260 m2 m2
d 200 hr hr
c 6% %
a 2.2 t t $ -
b 2 t t $ -
c 1.5 t t $ -
d 0.8 t t $ -
e 40 No no.
f 0.78 t t
4
a
I
t
$ -
$ -
119,735
11,973.50
131,708.50 $ -
8,500
8,500
8,500
8,500
Sub-Total
Variation Preliminary and Margin
Final Assessed Amount
Additional Design Fee
Design fee as per invoice 1.0 Item 7000 7,000 -
Allowance for cast in connections and wastage for 8500 6,630 -
structural steel
supply and install rate of $100/no)
Sundry allowance
Additional structur
Supply & Install Cost
B1 - 360UB
B2 - 60UB
C1 - 200UC
C2 - 200UC
Allowance for fixing point bolts (as per agreed 100 4,000 -
18,700
17,000
12,750
6,800
sundry works
3 al steels to operable walls
Sundry works and wastage
Allowance for waterproofing, cutting wastage and 40,200 2,412 -
Install cost
Install cost
Install cost for floor tiles including bedding,
pointing
110 -
and cleaning
70
22,000
a
Supply of floor tiles 18,200
-
Sundry works and make good
Allowance for sundry works 4,120 123 -
2
New mosaic tiles to lobby areas
Supply cost
110 1,320
Install cost
b
Allow 1 man 1.5 days work
hr -
Supply cost
Supply of 10mm thick standard plasterboard lining 40 2,800 -
to board room - 10m length x 4m height
1
12mm thick villaboard lining
Item Description
Simpsons Construction Pty Ltd Your Company
Diffefrences Comments
Quantity Unit Rate Total Total
Assignment 2 Melbourne School of Design
Appendix E – Contractor’s Delay Notice &
Assessment Tips
Assignment 2 Melbourne School of Design
20th September 2023
Future Lives
St Kilda Road, Melbourne VIC 3004
Attention: Superintendent’s name
Dear Sir,
NOTIFICATION OF DELAY
Pursuant to Clause 34.2 of the AS4000 General Conditions of Contract and item 12 of Annexure Part
H – inclusions, exclusions and clarifications schedule, Notice is hereby given of a likely Delay to the
Project:
Reference: NOD 001
Original Practical Completion Date: 2nd October 2025
Details of Delay: Delay to performance on site caused by compliance with the requirements of the
non-combustible cladding materials and additional time due to re-design, re-approval and re-
ordering.
Cause of Delay: Delay to performance due to changes to partial external cladding combustible
requirements.
The works required include the following summary (refer to variation no.2 breakdown);
• Upgrade the single layer insulation materials in existing cladding system to double layers
of higher standard of fire-resistant insulations
• Place the revised order to the subcontractor and adjust the manufacturing requirements
• Additional design and planning approval fees
• Additional preliminaries and site running costs due to the delay
Anticipated Delay Duration: We anticipate the entire project will be delayed by 35 calendar days.
Delay Costs: $148,455
Best Regards,
Bart Simpson
Contract Administrator
Simpsons Construction Pty Ltd
Assignment 2 Melbourne School of Design
Variation No.2 Tips
*All amounts below are exclusive of GST.
1. Information received from suppliers and senior
managers
(1) Batt insulation credits in original contract
scope
Supply Credits Install Credits Sundry Works Credits
Quantity Measured as 700m2 Disagree. Allow 2men -
18.5 hours each as per
Rawlinson
Rate Rate should be assessed Assess $90/m2 as per -
as $5/m2 as per contract rate
quotation
Other - - Assess it as 2% of the
sum of supply and install
credits
(2) Fire-resistant insulation as the revised
scope
Supply Cost Install Cost Sundry Works
Quantity Measured as 1,400m2 Allow 4 men 18.5 hours -
each as per Rawlinson
Rate Assessed as $10/m2 as Agree with $100/hr -
per quotation
Other - - Assess it as 3% of the
sum of supply and install
credits
(3) Additional design and planning approval fees
You have reviewed and agreed with the amount of $7,000 as per invoices.
(4) Additional preliminaries and site running costs
Items Quantity Rate
Site Supervisor Only agreed and assessed Weekly Rate:
3 calendar weeks Assess 40 hours (a week) with $110/hr
agreed rate
OHS/Leading Hand Only agreed and assessed Weekly Rate:
3 calendar weeks Assess 40 hours (a week) with $95/hr
agreed rate
Project Manager Only agreed and assessed Weekly Rate:
3 calendar weeks Assess 40 hours (a week) with $115/hr
agreed rate
Shit sheds hiring Only agreed and assessed Weekly Rate:
3 calendar weeks Assess 6 no. x $90/wk
Hoardings and Only agreed and assessed Weekly Rate:
temporary fencing hiring 3 calendar weeks Assess 1 no. x $200/wk
Gantry hiring Only agreed and assessed Weekly Rate:
3 calendar weeks Assess 1 no. x $2,000/wk
Scaffold stairs/access Only agreed and assessed Weekly Rate:
hiring 3 calendar weeks Assess 1 no. x $500/wk
(5) Variation Margin
As per AS4000 Annexure A
Contractor's Breakdown
VARIATION NO.2 Delay cost
PROJECT ADDRESS
Quantity Unit Rate
1
Supply of 700 m2
Install cost
b 45 hr hr
c 2% %
1,500.00 m2 m2
80.00 hr
c %
3
a 1 Item Item
4
a 6 wk w $ - $ -
b 6 wk w $ - $ -
c 6 wk w $ - $ -
d 6 wk w $ - $ -
e 6 wk w $ - $ -
f 6 wk w $ - $ -
g 6 wk
w
$ - $ -
$ - $ -
$ - $ -
$ - $ -
12,911.50
142,026.50
27,000
23,400
28,200
3,600
1,200
3,000
15,000
129,115
Preliminary and Margin
Total
4,500
3,900
4,700
600
200
2,500
500
Site supervisor
OHS/Leading hand
Project manager
Site sheds hiring
Hoardings and temporary fencing hiring
Gantry hiring
Scaffold stairs/access hiring
Sub-Total
Design and planning fees 7,000 7,000 $ - $
Additional preliminaries and site running costs
Allowance for sundry works 3% 26,000.00 780.00 $ - $
3.Additional design and planning approval fees
Supply cost
a
Supply of fire-resistant insulation 12.00 18,000.00 $ - $
Install cost
8,000.00 hr
$ -
$ -
b $
Install cost
Install of fire-resistant insulation
100.00
Sundry works and wastage
2
New Scope of fire-resistant insulation
Sundry works and make good
Allowance for sundry works (7,000) (140) $ - $
Install cost for batt insulation laid between steel (85) (3,825) $ - $
framing
Contract Scope Credits
Supply cost
a batt insulation (3) (2,100) m2 $ - $
Upgrade single layer insulation to higher
(1)
standard of fire-resistant insulation
Item Description
Simpsons Construction Pty Ltd Your Company
Diffefrences Comments
Quantity Unit Rate Total Total
Assignment 2 Melbourne School of Design
Appendix F – Contractor’s Claim
Available Information
After the site inspection, you assessed and disagreed with a few trades. After negotiation, the
following assessment have been agreed by the Contractor:
Trade Works
1. Preliminaries and Margins – Agreed with 97% complete for the demobilization works in the last
month
2. Doors – Agreed with 97% complete. 9 doors were not installed on Ground Level.
3. Finishes – Agreed with 98% complete. 250m2 pavers were not installed in outdoor communal space
on upper levels.
4. Joinery – Agreed with 97% complete. Stone benchtops were not as progressed as claimed on upper
levels.
5. Hydraulic, Electrical, Mechanical, Fire and Lift services trades – Agreed with 98% complete. Services
engineers have not signed off the compliance certificates and issued the operational manuals.
6. External Works – Agreed with 93% complete. Planter boxes and fencing were not as progressed as
claimed.
Provisional Sum
7. Wayfinding Signage – Agreed with 95% complete. A few signages were not installed on upper levels.
Novated Consultant Fees
8. Architect – Agreed with 98% complete as per invoice to date.
Variations
9. Variation no.1 Changes of scope to office fitouts – The Contractor has agreed with your assessed
amount in Question 2. It achieved 100% complete.
10. Variation no.2 Delay Cost – The Contractor has agreed with your assessed amount in Question 3.
It achieved 100% complete.
Project Name Logo
Client's Name:
Contractor's Name:
Claim Submission Date:
Claim Issue Date: Date
Building Works Breakdown
TRADE CONTRACT SUM % BUILDER'S CLAIM % Assessed Amount PREVIOUS THIS CLAIM
TRADE WORKS
1 Preliminaries and Margins 8,200,000 99% 8,118,000 7,300,000
2 Groundworks 5,400,000 100% 5,400,000 5,400,000
3 Concrete Works 13,000,000 100% 13,000,000 12,300,000
4 Masonry 390,000 100% 390,000 350,000
5 Carpentry 484,000 100% 484,000 420,000
6 Metalwork 560,000 100% 560,000 510,000
7 Glazing 4,500,000 100% 4,500,000 4,100,000
8 Doors 450,000 100% 450,000 410,000
9 Partitions & Ceilings 2,300,000 98% 2,254,000 1,920,000
10 Finishes 2,900,000 100% 2,900,000 2,560,000
11 Joinery 2,000,000 98% 1,960,000 1,720,000
12 Painting 680,000 98% 666,400 635,000
13 Whitegoods 480,000 100% 480,000 473,000
14 Hydraulic Servcies 2,200,000 100% 2,200,000 2,150,000
15 Electrical Services 2,500,000 100% 2,500,000 2,450,000
16 Mechanical Services 2,700,000 100% 2,700,000 2,600,000
17 Fire Services 970,000 100% 970,000 910,000
18 Lifts 930,000 100% 930,000 910,000
19 External Works 730,000 95% 693,500 620,000
TOTAL (EXCLUDING GST) 51,374,000
100
%
51,155,900 47,738,000
Project Name Logo
Client's Name:
Contractor's Name:
Claim Submission Date:
Claim Issue Date: Date
Prime Cost / Provisional Sum Previously Assessed
Description Contract % Claimed % Assessed Assessed this Month
Wayfinding Signage 100000
100%
100000
0%
80,000
Progress Claim Summary $ 100,000 100% $ 100,000 $ - $ 80,000 $ -
Prime Cost and Provisional Sums
Project Name Logo
Client's Name:
Contractor's Name:
Claim Submission Date:
Claim Issue Date: Date
Consultant Contract % Claimed % Assessed Previously Assessed
Assessed this Month
Architect 800,000 100% 800,000 645,000
Structural Engineer 130,000 100% 130,000 111,000
Services Engineer 110,000 100% 110,000 92,000
ESD Consultant 90,000 100% 90,000 73,000
Novated Consultants Fees 1,130,000 100% 1,130,000 $ - 921,000 $ -
NOVATED CONSULTANT FEES
Project Name Logo
Client's Name:
Contractor's Name:
Claim Submission Date:
Claim Issue Date: Date
VARIATIONS
VQ Variation Description Submitted Approved % Claimed % Assessed Previously Assessed
Assessed this Month
Changes of scope to office levels
(Question2) 100%
2 Delay Cost (Question3) 148,455 To Be Filled
100%
100%
125,824 To Be Filled - To Be Filled
3 -
4 -
5 -
6 -
7 -
8 -
10 -
11 -
12 -
13 -
14 -
-
285,454 $ - 250,197 0% $ - $ - $ -
To Be Filled - To Be Filled
Variations
1 137,000 To Be Filled 124,373
PROGRESS PAYMENT SUMMARY
Project Name
Client's Name:
Contractor's Name:
Claim Submission Date:
Claim Issue Date:
CONTRACT SUM % CURRENT PREVIOUS THIS MONTH
51,374,000
To Be
Filled
To Be
Filled
To Be
Filled
$ 100,000
To Be
Filled
To Be
Filled
To Be
Filled
1,130,000
To Be
Filled
To Be
Filled
To Be
Filled
To Be Filled
To Be
Filled
To Be
Filled
To Be
Filled
-
52,504,000 0%
Gross Value
To Be
Filled
To Be
Filled
To Be
Filled
Net Value of Work to Date
Less: Previous Expenditure
Amount
Certified Payment this Claim (Excl. GST)
Cash Retention
Approved Variations
Approved PC Sum Adjustment
Adjusted
Contract Sum
Trade Work Value
Prime Cost And Provisional Sums
Novated Consultant Fees
Variations
XXX
XXX
XXX
To Be Filled
To Be Filled
Assignment 2 Melbourne School of Design
Appendix G – Findings from Final Inspection
All contract scope has been completed in the amount of $52,504,000 with additional approved
variations.
The practical completion date is achieved on 15th September 2025, subject to the Omissions and
Defects noted below:
The following documents have been received:
1. Owner’s manuals
2. Statement of compliance
3. Occupancy permit
4. Other authority approved notices
The following documents to be submitted no later 21 days after the Date of
Practical Completion:
5. All maintenance, operating and training manuals
6. Contractor Guarantees and Warranties
7. As-Built Drawings
The following documents to be submitted no later 14 days after the Date of Practical Completion:
8. Induct the Owners Corporation manager to the Works
9. Access keys and fobs
The following specified Omission and Defect shall be completed by the date indited below:
The following works to be completed 3 weeks from the Date of Practical Completion:
1. Purchaser Defects as recorded by Property Settlement Solutions or Purchaser to the satisfaction
of the Superintendent and Purchaser
2. Superintendent and Principal Defects
The following works to be completed 12 weeks from the Date of Practical Completion:
3. Final cleaning of all apartments
4. Removal of all amenities, rubbish, excess materials to the satisfaction of the Superintendent
The following works to be completed 18 weeks from the Date of Practical Completion:
5. Relocate storage cages for lot 201, 303, 405
6. Defects on the building signage
7. Defects on ground lobby external pavers
8. Basement 2 rain water tank area to be sealed
9. Defects on Unit 102 air conditioning outdoor unit
