Subject Contracts Management

Subject Code BSCQSCM19.1

Coventry ID 10430411

Index Number COBSCQSCM191P-008

(NIBM)
Question
ASSIGNMENT

Case study (2000 words) relating to general contract procedures and administration.
Coursework (case study) will change every years to reflect industry reality concerning
JCT and NEC forms of contract.
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THERE ARE FOUR (4) QUESTIONS IN THIS ASSIGNMENT.

The overall word length for this assignment should be in the range of 2,000 words. You
may incur a penalty if you exceed the upper value. You must state the total number of
words used at the end of your assignment; however, the content of appendices and
references/bibliographies may be excluded from your word count.
You must acknowledge in your assignment your sources of information.

Please note: Your assignment may be checked for anti-plagiarism.

SCENARIO
Lotus Towers Project consists of a fifty story twin towers. The Lotus Tower 1 for a hotel
and the Lotus Tower 2 for serviced apartments. Both towers are constructed on a five-
story podium for commercial purposes including a shopping mall and a club-house built
to international standards. The deep six levels basement is constructed to provide
sufficient car parking facilities. The basement and podium ‘footprint’ covers
approximately 80% of the site.
The general conditions of contract are SBC/Q 2016 Standard Building Contract with
Quantities 2016.
The ground-breaking ceremony for the construction was ceremonially conducted on 22
December 2021 with the auspices of the chairman of the Developer, along with other
dignitaries such as ministers. The Developer engaged a separate contractor;
Contractor-E to execute following works;
• excavate the deep basement to formation level,
• install a secant pile shoring system (referred to on the project as the
‘diaphragm wall’) and
• install a dewatering system.
After completing excavation up to the formation level Contractor-E gave the possession
of the Site to Contractor-M who is the main contractor of the project. He has
undertaken the following responsibilities from the Contractor-E;
• removing the whaling beam support systems in the diaphragm and
• operating and maintaining the dewatering system which was transferred to
the Contractor-M on access to the Site, by a novation agreement.
The basement construction includes a reinforced in-situ concrete pile foundation, pile
caps, beams, reinforced suspended slabs and a peripheral retaining wall constructed
against the diaphragm wall. A sheet membrane waterproofing system shall be installed
between the diaphragm wall and the retaining wall.
While constructing the reinforced walls, slabs and columns to the Contractor-M
observed a water leak occurred in the diaphragm wall.
The following is a chronology of the events:
Date Event
08/03/22 Contractor-M discovered a water leak occurred in the diaphragm
wall.
11/03/22 Contractor-M notified the Engineer that a leak has been discovered
and requests the Engineer’s instructions.
15/03/22 Contractor-M observed the development in the water leak
18/03/22 Contractor-M informed the Contract Administrator that the leak is
worsening and reminded the requirement for the Engineer’s instruction.
30/03/22 Contractor-M wrote to the Contract Administrator to advise that
waterproofing work cannot be executed in the affected area.
05/04/22 The Contract Administrator requested Contractor-M to investigate
and provide a report on the cause of the leak in order for the Engineer to further assess
the situation.
03/05/22 Contractor-M notify the delay to the Contract Administrator and
reminded the Contract Administrator’s instruction
08/05/22 Contractor-M reminded the Contract Administrator’s instruction to
proceed with the rectification required.
26/06/22 Contractor-M requested CCL Experts (‘CCL’), an independent
consultant to submit an investigation report including the root of the problem and a
proposed remedial measures to stopping the water leakage.
28/06/22 CCL visited the site and investigated the water leak.
16/07/22 Contractor-M submitted CCL’s report and recommendations for
remedial work to the Contract Administrator.
21/07/22 The Contract Administrator instructed Contractor-M to proceed with
the repairs in accordance with CCL’s report and recommendations.
22/07/22 – 05/08/22 Contractor-M deployed specialized subcontractor;
Contractor-S to carry out remedial work.
06/08/22 Contractor-M submits a request for inspection of the remedial work.
07/08/10 The Contract Administrator inspected and approved the remedial
work.
07/08/22 Contractor-M recommenced the waterproofing works to diaphragm
wall in the affected area.

The Contractor submitted an extension of time claim, which included a time impact
analysis based upon a delay from 03rd March 2022, when the leak was discovered, to
07th August 2022, when the waterproofing work to the affected area could start. The
delay analysis showed that the delay also extended the Time for Completion by 157
days.
 QUESTION 1
(15 marks)
Briefly explain the applicable claim procedure stated in the Contract.

QUESTION 2
(20 marks)
Explain whether the notice requirement has been fulfilled by the Contractor-M in
regards to respective contract provisions.

QUESTION 3
(15 marks)
List out contemporary records can be maintained by Contractor-M and the Engineer’s
duty.

QUESTION 4
(25 marks)
On the basis of this information, explain other factors to be considered and mechanism
to be adopted while evaluating Contractor-M’s entitlement to an extension of time for
Completion of the Works.

QUESTION 5
(25 marks)
Explain the method(s) available to the Engineer to evaluate a reasonable price to be
paid for specialized subcontractor; Contractor-S’s works and to recover the additional
cost to the Project.

Question 01.
 Briefly explain the applicable claim procedure stated in the contract.
In this construction project going on a deep excavation work, then contractor observed a water
leak occurred in the diaphragm wall. According to the project following contract condition (the
general conditions of contract are SBC/Q 2016 Standard Building Contract with Quantities 2016.)
JCT 2016. This type of unforeseen works mention as a Variations.
Variations,
There are two main type of variations in civil construction industry:

 Variation the scope of works and services ,or amendment to the method specified,
 Variations to the terms of contract itself.
This project is having additional work of not having contract document stated.
When we are concerning what is a variation or define it . According to the JCT 2016
Variation means,

 The ,alteration or modification of the design, quality or quantity of the works including.
1. The addition, omission or substitution of any work.
2. The alteration of the kind or standard of any of the materials or goods to be used in the
works. (JCT 2016, 5.1 clause).
In this project having additional work in diaphragm wall water leak , then the contractor informed and
completed issue as given instruction in JCT 2016 contract conditions , and also contractor request a
extension of time claim ,
In this project claim procedure , contractor should addressed to contract administrator to requesting
the time extension requesting letter, and should stated reason of water leak at the diaphragm wall , and
state why those days need to add construction schedule .
Contractor should state following supporting information properly in the EOT,

 Note of about issue causing for delays.

 Should listed the project’s scheduled activities that have been impacted by the delay.
 Should illustrations of the delays in the form of sketches, photos, or other visuals.

As like these procedure follows by the contractor, then contract administrator should
responded request of extension of time and necessary for the purpose of the JCT conditions.
Whether an extension is granted or not , the Contract Administrator must inform the ,As soon
as it is reasonable ,contractor will informed of his decision regarding any under JCT clauses,
after receiving the necessary information ,As soon as is reasonably possible and in any
case ,within 12 weeks . What place if the time receipt to the completion date is should less
than 12 weeks, he will make an effort to do see.
Preceding the completion date.
.

.
Question 02.
Explain whether the notice requirement has been fulfilled by the contractor –M in regards to
respective contract provisions. (20 marks)
In this Project contractor-M is discovered the water leak in 08.03.2022 and he was
notified it to the engineer in 11.03.2022 requesting Engineer’s instructions. According to JCT
conditions contractor should get instruction and schedules of defects. If any flaws, shrinkages
, or other errors are found in the ,works or section within the pertinent.
Rectification period because materials, products, or workmanship did not meet the terms of
the contract. Any instance in which the Contractor fails to uphold his duties regarding the
designed.
The Contract Administrator shall specify such flaws, shrinkages, and other deficiencies.
Defects are listed by the administrator in a schedule that he must give the, Contractor as
instruction. Not later than 14 days after that Rectification Period has ended and the contract
Administrator may whenever he likes before that schedule is released .considers it necessary
to issue instructions mandating the correction of any such flaw,defect,or shrinkage.
If no instructions are given under this clause be made good, Will be issued following
delivery.
Then in this case contractor was informed to the relevant party according to JCT conditions,
then contractor have done his job,

Question 03
List out contemporary records can be maintained by Contractor-M and the Engineer’s duty.

In a construction project contractor and project consultant/project administration

party should maintained a contemporary records, because of construction project have long
term work process. Then its working duration is high .also it will have some disputes and
issues. While construction project on going time. Contemporary records are more important
documents for resolving all claims and disputes.
These are the contemporary records should maintain both party,
 Construction working start dates and end dates.
 Construction approved variations and meeting minutes.
 Should maintain Project plan revised documents and should approved all plans from
stake holders.
 Working daily reports and day records should maintain on dates.
 Special work process and labour working days should record.
 Weather records and financial delays and all delays should mention as daily
progress.
 Detailed progress report should prepared both party.
 All lab reports and approval should maintain.
As like these project records will gives more value for both parties for any disputes
resolving cases.
QUESTION 4
 On the basis of this information, explain other factors to be considered and mechanism to
be adopted while evaluating Contractor-M’s entitlement to an extension of time for
Completion of the Works. (25 marks)
In this project, Project Administrator should concerning followings
Recognised affected specific disputes and issues delays.
Exactly how much time is needed with working or calendar days specified?
Illustrations of the delays in the delays in the form of sketches, photos, or other visuals,
The contract administrator received suggestions.
List the steps the contractor has taken to prevent or reduce other delays.
Also according JCT contract clauses and agreed a of requested of approving for EOT
includes contractor-M. Although this is along stop date and the employer is required to
notify the contractor as soon as reasonably practical JCT contract is required the
employer to notify the contract –M of its decision with regards to an application of EOT
within 12 weeks of receiving full particulars of the claim.

Question 5
Explain the methods available to the Engineer to evaluate a reasonable to be paid for specialized
subcontractor; contractor-S‘s works and to recover the additional cost to the project. (25 marks).

Contractor-M should recover the additional cost of the issue from contractor-E retention money
payment, because there may not be contractor-E defect and liability period exceeded. Contractor –M
should act as a partnering of the project extension time cost planning process and he should work as
he much as can for mitigate the extra expenses. Client and contractor should collaborative to this
project cost process. And the specialized sub contractor payment should recover from retention
money of contractor-E ,