CONSTRUCTION SITE OPERATIONS FINAL EXAM

This Examination is part of the assessment for the non OH&S component of the Construction Site Operations.

BACKGROUND -

Your company (a contracting firm) has been contracted by City of Sunshine to construct a Track and field Pavilion & associated Works as part of an upgrade to the services provided in the area. (Sunshine). City of Sunshine is the Client and the funding is provided by grants from the State Government. The new Track and field Pavilion will assist the community to engage in leisure activities in the area - where possible, all SubContractors, day labourers, relevant materials and Plant and Equipment hire are to be sourced from the local district.

During the 'Pre-Tendering' phase, all tenderers had adequate time and sufficient guidance to thoroughly inspect the site, fully review all the geotechnical information and the detailed plans for the Project and access to all relevant technical and non-technical data they needed to be fully prepared to make an informed bid. They were also given an assessment of the availability and skills of labour in the area as well as the type of material (although untested) and equipment located there. All tenderers were required to acknowledge, in writing, that they had appropriate access and professional guidance to all the necessary information they required to be able to make an informed bid.

FURTHER INFORMATION -

A. Construction time for the project was specified as 12 months. AS 4000 has been selected as the General Conditions of Contract for the project.

B. Your company has engaged a site management team (Project Manager, Contracts Administrator, Site Engineer, Site Foreman, Accounts Clerk). Client has assigned a Project Manager (Client) to act as Superintendent and a design engineer to resolve any design issues during construction. Client also has other stakeholders (local tennis club; Community leader; Council Member).

C. Early in the construction several errors are found in the plans provided by the Client. Significant redesign is required before work can continue. These errors were notified by the Contractor and Superintendent issued direction to clarify the ambiguities and corrected the errors. Contractor has submitted claims during first month for additional cost (estimated additional cost $15,000) but maintained the time for completion at 12 months.

D. During excavation and preparation of both the 'green field' and 'brown field' areas, 'objects of antiquity' were uncovered in the area where tennis pavilion to be constructed. During second month, object of antiquity was found and it was removed and handed over to the client. This set back the project by 10 days. Contractor has spent $80,000 in dealing with the removal of "object of antiquity"

E. During third month, Client decided to change the material for seating to be used in the pavilion. Your company has already ordered the material as per original drawing. Superintendent chose to direct the changes under AS 4000. Estimated additional cost in respect of this change is $100,000.

F. Your company has made progress and completed 50% of the original works (earned value) in 6 Months' time.

G. The weather is ideal for construction - the expectation, based on previous weather records of the area, had been that up to 10% of the time could be lost because of adverse weather. This has been built into the contract price by your company. As at end of 6 months there has been no claim for EOT in respect of inclement weather.

H. Expenditure Profile (AUD in thousands)

Note:

1. Actual cost during first month includes claim for resolving errors.

2. Actual cost during second month includes claim for dealing with object of antiquity.

3. Actual cost during third month includes claim for change in design for seating material.

EXAM QUESTIONS -

Question 1: Project Risk and Communication

a. Your company has been requested by Client to prepare and submit a communication management plan. Prepare a communication management plan involving site management team and client's team and stakeholders.

b. Client Project Manager prepared a project risk matrix for the project to prepare the initial project budget. Prepare a project risk for this project.

Question 2: Application of AS 4000

a. AS4000 details specific lines of communication for the effective processing of all progress payments (Monthly). Detail this process as outlined by AS4000, specifically identifying all relevant clauses that authorise the process. Explain security of payment act and its application in your claim.

b. Explain how your company submitted the claims for dealing with ambiguities and errors in the documents with relevant clauses from AS 4000.

c. Your company decided to make 'Claims for Variation' for the additional works arising from the re-design of the seating. Your claim should include possible surplus material or other alternative ways to deal with your order. What is the relevant clause under which Superintendent must have issued the direction to change the seating material? Explain with reasons.

d. Explain how your company dealt with discovery of 'object of antiquity' and how the Superintendent dealt with the claims for additional cost and time.

e. Your company noticed that the bolts shown on the drawings to fix the seating's were specified as galvanized iron bolts. Your company advised the Client that stainless steel bolts would be appropriate to avoid corrosion. Superintendent is considering your company's suggestion. Explain how the Superintendent and your company go about implementing the change of material for bolt.

Question 3: Earned Value Analysis

a. Based on the information provided in section H and other sections under "Further Information" carry out earned value analysis at the end of 6th month and calculate PV; EV; AC; CV; SV; CPI, SPI; BAC.

b. Estimate the cost at completion (EAC) using different methods;

I. If the CPI is expected to be the same for the remainder of the project,

II. If future work will be accomplished at the planned rate; and

III. If both the CPI and SPI influence the remaining work;

Question 4: Report

a. Prepare a draft monthly report to the client detailing the status of the project as at the end of 6^th month.

Question 5 : Estimating VOWD (Value of Work Done) and Accruals

In a water pipeline project, following information has been provided to the Contract administrator.

Contract Scope: Procure, deliver, install and test 3 Km long 300mm dia pipeline from point A to point B as shown in the drawings and specification.

Contract period: 8 Months

Bill of Quantities

Rates are inclusive of overheads and profit.

At the end of 4th month into the project,

• 30% of pipes have been delivered to the site and accepted by the Superintendent as complying with the specification.
• Contractor has laid 20% of the pipes and tested 50% of the laid pipes.
• Invoices for 20% of delivery of pipes (3KM total); 10% of pipe in place; 0% for testing have been paid at the end of 3rd month.

Exchange rate for the end of 3rd month; 1AUD = 0.75 USD as paid in invoices.

Exchange rate for the end of 4th month (as provided by finance department); 1AUD = 0.80 USD

a. Estimate the VOWD (in AUD) as at end of 4th month and accrual (accounting) (in AUD).

Attachment:- Assignment File.rar