CPCCBC4003 Select, Prepare and Administer a Construction Contract

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Assessment Tasks

SECTION A: REQUIRED SKILLS

Assessment Task 1 - Written Assignment

Instructions

You must complete this assessment task on their own and are not to work in groups. It must be your own work.

The intent of this assessment task is to demonstrate application of legal requirements in the completion of the key pages of the building contract for new homes (consumer affairs) for building projects. The trainer will guide you through the process to complete this assessment task, the Owner, Builder and Site particulars and Progress Payment Schedule of the contract.

Refer Documents:

  • Attached copy of the contract for new home’s – Consumer Affairs
  • Residential Drawings/Specifications provided.

Complete the contract for new homes – consumer affairs.

  • All pages must have fictional owner/ builder details, signatures and initials where required.
  • Use the Residential Drawings/Specifications for reference details where required.

Important Sections and Information:

  • Deposit and contract $ amount references: $250,000 contract / 5% Deposit.
  • Time for completion references: Date for Commencement should be 30 days from fictional Contract sign date.
  • Special Conditions: 6-star energy adjustments / time extensions (PC item delays).
  • Method A progress payment schedules (all others are NA).
  • PC Items:
A. Smeg Avante Dishwasher 7 star $1800
B. Enspira  Complete Vanity $2500

Provisional Sum Allowances:

Rock Removal                   - $4500

Excess Spoil Removal    - $2500

SECTION B: REQUIRED KNOWLEDGE

Assessment Task 2 - Written Questions

Instructions

You are required to provide a satisfactory response to each question below to complete this assessment.

Question 1

What are the four (4) key elements required to ensure a contract is enforceable at law?

Question 2

What are three (3) possible factors that need to be taken into account when considering a contract between two parties?

Question 3

Describe the four (4) procedures involved in suspensions of building works by the Builder as listed in the contract for new homes (consumer affairs).

Question 4         

Describe three (3) breach actions by the Owner that may cause the Builder to suspend works.

Question 5

What requirements need to be fulfilled to ensure a contract has a proper offer and acceptance?

Question 6

List the type of documents that make up the building contract for new homes consumer affairs for each of the following components of contract in the building and construction industry:

Question 7

What experts do you need to consult with when preparing a construction contract? List four (4):

 Question 8

Refer to the contract for new homes consumer affairs and discuss the circumstances which may lead to the termination of a contract.  How would you define, analyse and assess these circumstances?

Question 9

Explain what rise and fall is and when it can be legally applied to a building contract.

Question 10

What would you include in the preparation of a contract to allow for applying for extensions of time?

Question 11

Which relevant personnel would you include in the preparation of the final account for your project?

Question 12

List seven (7) Commercial Construction contract types and the type of projects they cover.

Question 13

What is the relevant legislation you must abide by when selecting and preparing a construction contract?

Question 14

List five (5) digital tools that can be used in the workplace to communicate with other colleagues?

Question 15

What are five (5) digitally based technologies and applications that can be used to access, extract, integrate and compile information?

Question 16

What does liquidated damages mean?

Question 17

Name three (3) types of repudiation in regards to a construction contract

Question 18

What are the usual elements of the finalisation of a contract?

Question 19

What is the defect liability for a construction contract?

SECTION C: PERFORMANCE ACTIVITY

Assessment Task 3 - Project

Instructions

You must complete this assessment task on your own.

The intent of this assessment task is to demonstrate application of legal requirements to building and construction projects.

**The Importance of this Task 3 is that when making Provisional Sum allowances in a Domestic Building Contract, the builder must show that there has been some reasonable effort made to calculate the sums for works to be included.

If the amount of the Provisional Sum Variation is outside of the 25% variance allowed and the matter proceeds to VCAT arbitration, the builder will lose the case unless it can be demonstrated such reasonable efforts were made.

This task will demonstrate:

  • Mathematical capabilities
  • Knowledge and understanding of the relevant clauses to the DBC in regards PC items and Provisional Sums

Scenario:

You are entering into a building contract for new homes (consumer affairs) with a client.  Value of the work is $850,000.00 (excluding GST).

The site is in an outer suburb of Melbourne that has restrictions of a vegetation overlay.

You are required to retain and remove some vegetation, soil, and trees as part of your groundwork’s preparation.

  1. Identify the relevant contract clauses that are applicable for this project and the items you would need to emphasise to the client prior to both parties signing the contract.

Incorporate any clauses from:

  • New Homes Contract- Consumer Affairs copy
  • Domestic Building Contracts Act
  • Domestic Building Contracts Regulations
  • Council Vegetation Overlays or special conditions
  1. Calculate the following Groundworks Provisional Sum allowance

Excavation

  1. Clear and remove from site grass and trees as shown on site plan. Note sizes of trees.
  2. Protect trees that are to remain.
  3. Strip topsoil from entire site 200mm deep. Stockpile on site.

Assessment Task 4 – Major Project

A prospective client has approached you (having seen your building work) wanting advice on the range of design and contract documentation that would be required to build their house. The house will cost $450,000 (including GST). The client is ready to sign a contract, but the client has numerous questions that need to be answered. Explain in detail answers to the client’s questions.

  1. What contract will need to be signed? Why?
  2. What is the cooling off period?
  3. Does the contract refer to any other documentation?
  4. How do progress payments work?
  5. At what point will the client be required to pay the builder?
  6. Who makes the decision that the relevant stage has been completed and signed off?
  7. What is the difference between a prime cost and provisional sum?
  8. When is a deposit required? How much is it? Can the deposit vary?
  9. Are there any extensions of time? How is this built into the contract?
  10. How do variations work? Explain in detail with 2 examples (increase or decrease in price)
  11. Under what Circumstances is the owner entitled to compensation?

Assessment Task 5 – Project

Part 1

Referring to the contract in Assessment Task 1, Building contract for new homes (consumer affairs) locate and describe the relevant clauses that would apply to practical completion and final completion of the project. You will need to describe the activities that need to be undertaken at practical and final completion.

Part 2

Refer to the building contract for new homes (consumer affairs) contract, prepare a variation to the original drawings, adding the following:

  • Landscaping, at an additional cost of $50,000.00

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