CON103

Ver: A2.2
ASSESSMENT

2 CON103 Contract Administration for

Valuing Building Works
Assessment 2

Weighting
40%

Learning outcomes
1 Identify and apply the communication and administrative processes for the
construction phase.
2 Prepare progress claims and provide costs for work executed, prepare and present
costs of variations, prepare and present cost fluctuations, prepare and present
time extension claims.

Instructions
Complete and submit your assessment according to the Open Polytechnic's
Assessments webpage. This includes information on academic integrity, formatting,
word limits and referencing.

• Include your name, student number and the assessment number.

• Number your pages.

Submission
• Submit your assessment in one file.
• Submit your work through your iQualify course.
• Emailed assessments will not be accepted.
• You will receive an automated notice advising you of your successful submission.

By submitting your assessment, you confirm that it is your own, original work.

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Scenario
We continue with our scenario from Assessment 1.
At the start-up meeting the outstanding issues were resolved, in particular, the issues
around site set-up and safety, allowing your company to commence site establishment and
confirm the construction programme. Both parties exchanged insurance certificates, and
the architect issued a copy of both the building consent and the For Construction
documents.
A new apprentice, Huia, has joined Optibuilt. Your manager asked you to work with her and
help familiarise her with the processes and procedures.
Complete the tasks that follow. Where appropriate refer to:

• the tender trade summary

• the preliminary & general cost
• the scheduled rates extract
• drawings D1 and D2
• drawing D5
• drawing D6.

Task 1: Post-contract administration

The new apprentice on site is learning about post-contract administration.
a. Explain the key features of the following to the apprentice:
• Variations
• Cost fluctuations
• Extensions of time
For each, ensure you outline:

• what they are

• what their purpose is
• under what circumstances they are used (provide examples).

b. Which sections and clauses of NZS3910 explain what the key features given above
are?
(30 marks)

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Task 2: Variations
Prepare the following:
Variations for the architect
1. For each of the following situations identify whether a variation between the client
and the main contractor exists and state who pays for the variation if applicable.
Include a brief explanation to support each of your answers.

a. Your company proceeded with procurement of the subcontract trades in the four
weeks prior to the start-up meeting. Knowing that the architect wasn’t issuing
the For Construction documents until the start-up meeting, you requested the
timber and steel framing subcontractor to immediately commence the shop
drawings, based on the tender issue documents. You are hoping to mitigate any
delay to the programme from the late issue of the For Construction documents.
When you do review the For Construction drawings you notice that there is
additional steel framing along the south elevation. You contact the timber and
steel framing subcontractor about this, and they advise that they have already
completed the shop drawings for that section of the building and will need to
redo the drawings.
(3 marks)

b. Setout of the Phase 1 building is completed, and the excavation of the footings
has begun. Rather than only large foundation pads, your company has decided to
use pad and ground beams to provide better structural rigidity, which will cost
more money. The engineer has approved this method of construction.
(3 marks)

c. You have received a variation price request that changes the materials to be used
for the roof of the distribution warehouse.
(3 marks)

2. For each of the contract instructions below prepare a variation ready for submission
to the architect.
Carefully read each of the contract instruction extracts, and consider the information
provided. Follow any communication protocols that apply. Adopt the rates from the
Schedule of Rates (SOR) extract.
Note: The rates within the SOR are exclusive of overheads and margin. The
overheads and margin percentage is 7.5%.

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Contract Instruction CI-#1: Floor Covering Clarifications (note: no floor coverings work
has yet commenced on site).
With reference to the attached marked up drawings D5 and D6:
2.1 The Client has requested that the carpet tiles be the same as Floor Finishes Type
CT2 for Rooms RG26, 27, 39, 40. Submit your price within the next five working
days.
2.2 The skirting to the manager’s office is to be replaced with Type S2 skirting.
2.3 The floor coverings for rooms RG30 and RG31 are to be changed to Type CT2.
Type S2 skirting is required for these rooms as well. (Note: both rooms currently
have Type S3, not Type S1 skirting specified.)

(9 marks)

Contract Instruction CI-#2: Additional Foundation Works

3.1 Following the structural engineers site visit yesterday to review the foundations,
an additional two Type D foundation pads are required between gridlines 5-6.
You will need to allow for excavation, reinforcing (say 100 kg per m3 at $6.74 per
kg), formwork, concrete and concrete finishing.
(6 marks)

Contract Instruction CI-#3: Timber piles

4.1 Drawing D2 is missing 175 dia SED H5 timber piles along Gridline D between
Grids 5-8.
4.2 Piles are to be driven at the same centres on Gridline D as piles shown on
Gridline C.

(9 marks)

(Total: 24 marks)

Cost fluctuations
3. Using the progress claim extract below, calculate the value of the cost fluctuation
using the formula method from NZS 3910:2013 Appendix A. You will need to find the
appropriate indices from the StatsNZ website. Revise the total claim value to include
your cost fluctuation calculation. Assume this contract has no retentions.
Note: For purposes of this task only, we will assume that fluctuations have been
allowed under the head contract, and the extract below is from the January 2023
progress claim. The claim needs to be adjusted to include for cost fluctuations. The
tender quote was submitted in June 2022.

Progress claim extract $

Subtotal 2,518,000

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 Ver: A2.2

Plus variations 38,980

Gross claim 2,556,980
Less previous claim (of which $21,586.00 were variations) -1,853,000
Net claim 703,980
(6 marks)

Request for / Explanation of extension of time

4. There has been a one-day delay to the programme outlined in the scenario, caused
by unforeseen circumstances, but your team believe that the lost time can be made
up and the project still delivered within the existing completion date.
Answer the following questions regarding the delay:

a. Can you claim an extension of time? Do you advise the client of the delay? Justify
your answers.
(3 marks)

b. The client has indicated that they do not want to pay for an extension of time;
explain any other alternative action(s) they can take in this context.
(3 marks)

c. Referring to the scenario from Assessment 1, outline reasons why your company
is entitled to an extension of time.

Include the Clause number to the relevant clauses from NZS 3910:2013 to
support your claim.
(6 marks)

d. From the CON103 Fastform fabricators Ltd P&G spreadsheet, list the ‘time
related items’ that can be used to determine a daily rate to be used in the event
of an extension of time claim and work out the number of working days and the
daily rate to be applied.
Note: For this project all time-related items are required for the full course of the
project.
(9 marks)

(Total for Task 2: 60 marks)

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Task 3: Progress claim

Prepare a simple progress claim for each of the situations below and arrive at the value of
the net monthly claim (GST exclusive).
Determine retentions (these are as per clause 12.3.1 (a) of NZS 3910:2013).
Insert fluctuations as per Appendix A, if provided below, in the correct place within your
answer (you do not need to calculate the fluctuations).

a. Value of contract work completed $1,025,700.00

Variations $66,225.00
Previously paid $672.750.00

(2 marks)

b. Value of contract work completed $1,567,390.00

On-site materials $28,325.00
Variations $78,545.00
Previously paid $988,765.00

(3 marks)

c. Value of contract work completed $2,877,855.00

On-site materials $68,155.00
Variations $86,655.00
Fluctuations $3,785.00
Previously paid $1,758,999.00

(5 marks)

(Total for Task 3: 10 marks)

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Marking schedule
Task 1: Post-contract administration
a. Explain the key features of the
following to the apprentice:
• Variations
• Cost fluctuations
• Extensions of time
b. Which sections and clauses of
NZS3910 explain what the key
features given above are?
Task 2: Variations
Variations for the architect
1. For each of the three situations,
identify whether a variation
between the client and the main
contractor exists.
Include a brief explanation to
support each of your answers.
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Ver: A2.2
24 – 30 19.5 – 23.5 15 – 19 12 – 14.5 1 – 11.5
Provides Provides effective Provides brief Provides incomplete or Fails to provide or
comprehensive, logical explanations of the key explanations of the key mostly inaccurate provides inadequate
explanations of the key features of variations, features of variations, explanations of the key explanations of the key
features of variations, cost fluctuations and cost fluctuations and features of variations, features of variations,
cost fluctuations and time extensions, time extensions, cost fluctuations and cost fluctuations and
time extensions, including an overview including limited time extensions. time extensions.
including details about of what they are, their information about Includes inappropriate Fails to include
what they are, their purpose and under what they are, their examples. examples.
purpose and under what circumstances purpose and under
what circumstances they are used. what circumstances
they are used. Includes relevant they are used.
Includes highly examples where Includes examples
applicable examples appropriate. where appropriate.
where appropriate.
Correctly identifies all Correctly identifies Correctly identifies Correctly identifies Fails to identify or
the sections and most of the sections more than half of the fewer than half of the incorrectly identifies
clauses of NZS3910. and clauses of sections and clauses of sections and clauses of the sections and
NZS3910. NZS3910. NZS3910. clauses of NZS3910.
7.5 – 9 6–7 4.5 – 5.5 3.5 – 4 1 – 3.5
Correctly identifies Correctly identifies Correctly identifies Correctly identifies Fails to identify
whether a variation is whether a variation is whether a variation is whether a variation is whether a variation is
required for all three required for all three required for two of the required for one of the required for any of the
situations. situations. situations. situations. situations.
Includes brief, accurate Includes brief, mostly Includes brief, Includes incomplete or Fails to include or
explanations. accurate explanations. adequate explanations. inaccurate includes inadequate
explanations. explanations.
7

2. For each of the three contract
instruction extracts prepare a
variation ready for submission to
the architect.
Cost fluctuations
3. Using the progress claim extract,
calculate the value of the cost
fluctuation using the formula
method from NZS 3910:2013
Appendix A.
Revise the total claim value to
include your cost fluctuation
calculation.
Request for / Explanation of
extension of time
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Ver: A2.2
19 – 24 15.5 – 18.5 12 – 15 9.5 – 11.5 1–9
Prepares a variation for Prepares a variation for Prepares a variation for Prepares a variation for Fails to prepare or
each of the contract each of the contract each of the contract each of the contract prepares a variation
instruction extracts to instruction extracts to instruction extracts to instruction extracts to for each of the
a high standard. a good standard. a reasonable standard. a poor standard. contract instruction
Shows evidence of Shows considerable Shows some evidence Shows little evidence extracts to an
clear understanding of evidence of of understanding the of understanding the inadequate standard.
the information understanding the information provided. information provided. Shows no or almost no
provided. information provided. Mostly follows the Mostly follows the evidence of
Accurately and Accurately follows the communication communication understanding the
precisely follows communication protocols that apply. protocols that apply. information provided.
communication protocols that apply. Mostly doesn’t or
protocols that apply. doesn’t follow the
communication
protocols that apply.
5–6 4 – 4.5 3 – 3.5 2.5 – 2.5 1–2
Correctly calculates the Calculates the cost Calculates the cost Calculates the cost Fails to calculate or
cost fluctuation using fluctuation using the fluctuation using the fluctuation using the incorrectly calculates
the formula method. formula method with formula method with formula method with the cost fluctuation
Correctly revises the one or two errors. three or four errors. multiple errors. using the formula
total claim value to Revises the total claim Revises the total claim Revises the total claim method.
include the cost value to include the value to include the value to include the Fails to revise or
fluctuation calculation. cost fluctuation cost fluctuation cost fluctuation incorrectly revises the
calculation with one or calculation with one or calculation with total claim value to
two errors. two errors. multiple errors. include the cost
fluctuation calculation.
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 Ver: A2.2

4. There has been a one-day delay to 2.5 – 3 2–2 1.5 – 1.5 1–1 1–1
the programme outlined in the
scenario.
a. Can you claim an extension of Correctly answers the Correctly answers the Correctly answers the Correctly answers one Fails to answer or
time? Do you advise the client of questions and provides questions and provides questions and provides of the questions and incorrectly answers the
the delay? Justify your answers. well-thought out, clear, logical reasonable provides incomplete or questions and fails to
convincing justifications. justifications. inappropriate provide or provides
justifications. justifications. inadequate
justifications.
2.5 – 3 2–2 1.5 – 1.5 1–1 1–1
b. If the client doesn’t want to pay Provides a Provides an effective Provides a brief Provides an incomplete Fails to provide or
for an extension of time, explain comprehensive, logical explanation of explanation of or mostly inaccurate provides an
what other alternative action they explanation of alternative action the alternative action the explanation of inadequate
can take in this context. alternative action the client can take. client can take. alternative action the explanation of
client can take. client can take. alternative action the
client can take.
5–6 4 – 4.5 3 – 3.5 2.5 – 2.5 1–2
c. Outline reasons why your Provides well-thought Provides clear, logical Provides reasonable Provides incomplete or Fails to provide or
company is entitled to an out, convincing reasons why the reasons why the inappropriate reasons provides inadequate
extension of time. reasons why the company is entitled to company is entitled to why the company is reasons why the
company is entitled to an extension of time. an extension of time. entitled to an company is entitled to
an extension of time. extension of time. an extension of time.
7.5 – 9 6–7 4.5 – 5.5 3.5 – 4 1 – 3.5
d. From the P&G attachment, list the Correctly lists the ‘time Lists the ‘time related Lists the ‘time related Lists the ‘time related Fails to or incorrectly
‘time related items’ that can be related items’, works items’, works out the items’, works out the items’, works out the lists the ‘time related
used to determine a daily rate to out the number of number of working number of working number of working items’ and works out
be used in the event of an working days and the days and the daily rate days and the daily rate days and the daily rate the number of working
extension of time claim and work daily rate. with one or two errors. with three or four with multiple errors. days and the daily rate
out the number of working days errors. incorrectly.
and the daily rate to be applied.
Task 3: Progress claim 8 – 10 6.5 – 7.5 5–6 4 – 4.5 1 – 3.5

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 Ver: A2.2

Prepare a simple progress claim for Prepares an accurate Prepares a simple Prepares a simple Prepares a simple Fails to prepare or
each of the situations and arrive at the simple progress claim progress claim for each progress claim for each progress claim for each prepares an
value of the net monthly claim (GST for each of the of the situations with of the situations with of the situations with incomplete simple
exclusive). situations. one or two errors. three or four errors. multiple errors. progress claim for each
Determine retentions (these are as per Accurately determines Determines retentions Determines retentions Determines retentions of the situations.
clause 12.3.1 (a) of NZS 3910:2013). retentions. with one or two errors. with three or four with multiple errors. Fails to determine or
Insert fluctuations as per Appendix A Correctly inserts Correctly inserts errors. Incorrectly inserts incorrectly determines
in the correct place within your fluctuations within the fluctuations within the Correctly inserts fluctuations within the retentions.
answer. answer. answer. fluctuations within the answer. Fails to insert
answer. fluctuations within the
answer.

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