MODULE:

QUANTITIES AND DOCUMENTATION 3b

EXERCISE TWO:
Cost Price Adjustment Provisions and Payment Certificates

The client Mrs. Khoza has budgeted of R25,000,000.00 to construct a palatial

resort in Kwadukuza over a period of 72months. The tender contract has been
awarded to Simpsons and Co., with the tender period commencing
immediately on the 15th of January 2020. The site handover is scheduled on the
30th of January 2020. The contract documents included a bank surety and
CPAP on all bill items from the tender award period. In month one the valuation
of work amounted to R1,500,000.00, with plans for an addition of R5,000,000.00.
The original valuation of work for month one included alterations of the existing
structure of R650,000.00, demolitions of R50,000.00, earthworks of R300,000.00,
masonry of R80,000.00, materials off site of R20,000.00, precast concrete of
R250,000.00 and concrete of R150,000.00. The contractor requested an
advance payment of R1,000,000.00 from the client.

Your task is to complete the valuations, payment certificate and CPAP

calculations for the current project.