Contract Administration 2017

Assessment 1 - Assignment

Introduction

This assignment is part of your assessment in Contract Administration. The assignment is for
you to respond to 4 events that can arise in the career of a contract administrator.

You are to respond to four events described below on the understanding that you are
providing advice to the executive director of a project management company to whom you
are an employee.

The players

Carry Grant This is the name given to you in this assignment. Cary
Grant is the Superintendents Representative

Prime Projects Pty Ltd The project management company appointed by Curtin
(Prime Projects) University as the Superintendent. Prime Projects
employs Cary Grant as their Superintendents
Representative and for general advice.

Curtin University the Principal that engages Prime Projects to act as their
Superintendent for the tender preparation and subsequent
superintendence of the contract during construction

Complete Contractors Pty The construction company that wins the tender and
Ltd (Complete Contractors) enters into a contract with the Curtin University under
AS 2124

Advance Architects Pty Ltd The architects engaged by Curtin University to design
(Advance Architects) and prepare the contract documents

Trump Engineering Pty Ltd A nominated subcontractor made known in the tender
(Trump Engineering) documents

Scenario

Prior to the preparation of the tender for the construction of the new medical school at the
Bentley campus of Curtin University, the University engages Prime Projects to be their
project manager for the engagement of consultants and for the tender. Prime Projects are to
also advise Curtin University on the contractual obligations that will be made known in the
tender documents and will form the contractual obligations for the proposed construction
contract. On the advice of Prime Projects, Curtin University engages Advance Architects Pty
Ltd (Advance Architects) to prepare a design, working drawings, specification and
associated documents for the medical school.

At the completion of the tender, Complete Contractors is selected by Curtin University as the
contractor under the AS 2124 -1992 (Contract General Conditions of Contract). The following
four (4) events occurred during the work. Cary Grant is to provide advice to the executive
director of Prime Projects for the four (4) events.

In providing your submission on the 4 events set out below, in your role of Cary Grant, you
must support your conclusions by reference to AS 4122-2010 General Conditions of
Contract for Consultants, the AS 2124-1992, Contract General Conditions of Contract and
where appropriate to a case or cases made by the higher courts that bear upon the events that
have arisen during the construction of the work. The executive director of Prime Projects will
not be impressed if you are not able to support your conclusions.

Event 3

Events during the tender

Prime Projects, in preparing the tender conditions for Curtin University adopts AS 4120
Code of Tendering (a copy of this Standard is available from the Curtin University Library).
Under clause 6.5 Evaluation of Tenders the principal undertakes to evaluate the tenders on
the basis of the technical qualities of the tenderers submission (issues including the quality
of the tenderers managerial system) and on a commercial evaluation (the tender price). The
assessment is based on a ratio of 60:40 (60% for the tenderers technical evaluation and 40%
for the tender price).

At the close of the tender, Complete Contractors is the winning tender and after negotiation
enters into a contract with Curtin University. An announcement is made to the losing
tenderers.

A losing tenderer becomes aware that Curtin University approved Complete Contractors
solely on the basis of the low fee (tender price) and did not give consideration to the technical
qualities of the tenderers. The losing tenderer also believes there is evidence that Compete
Contractors has not submitted a Conforming Tender. Both concerns are made known to Prime
Projects.

Carry Grant is to provide advice to Prime Projects in response to the losing tenderers claims.
A copy of Cary Grants report will be provided to Curtin University.

Event 4
Events during the construction of the medical school

Curtin University has nominated a subcontractor called Trump Engineering Pty Ltd for the air
handling plant to heat and cool the medical school. This sub contract work is complex as there
needs to be sterile zones within the medical school laboratories. Complete Contractors has
used Trump Engineering on a previous project and found their management style not to their
liking. Complete Contractors wrote to Prime Projects expressing their concern at Trump
Engineering being the nominated subcontractor for the air handling plant.

After considering the notice that was given by Complete Contracting objecting to Trump
Engineering, Prime Projects did not support the appeal and Trump Engineering was approved
as a subcontractor.

Complete Contractors has entered into an AS 2545 -1993 Subcontract Conditions contract
with Trump Engineering. This contract is identified as a back to back contract with the AS
2124 contract.

Difficulties occur during the construction as a result of Trump Engineering failing to conform
to the construction critical path resulting in delay to Complete Contractors. Prime Projects has
given notice to Complete Contractors about the work not conforming to the construction
program with the likelihood that Complete Contracting will fail to meet the contractual date
for practical completion.

The executive director of Prime Projects has asked Cary Grant, with reference to the
contractual obligations under AS 2124 and AS 2545 contracts, to provide a report on the
contractual obligations of Trump Engineering and Complete Contractors. The assignment
is to be typed with 1.5 line spacing, size 12 Time New Roman font. Avoid references to a
third person by excluding references such as I. Where required refer to Cary Grant as this
is the person providing the required advice.