Reference no: EM132986656
Assessment Task: Prepare a Contract
Select and prepare a construction contract
Performance Objective
Students must demonstrate the skills and knowledge required to prepare a construction contract in consultation with relevant personnel and in accordance with the accepted processes of the organisation and legal requirements.
Assessment Description
You are required to prepare a MBA New Homes Contract based on a provided scenario. Included in the preparation is assessing the schedule of progress payments and preparing a letter to the client communicating both parties' rights and obligations under the contract.
Scenario
John Keating is the owner operator of JK Builders, a small construction company specialising in new homes, renovation and extensions work.
Mr and Mrs Smith have requested John to quote on the construction of a new brick veneer dwelling. John has submitted a price of $354,856.00 including GST to construct the home. After careful consideration of the quote Mr Smith telephoned John informing him that they will accept his quote and would like to go ahead with the project.
John arranged a meeting with the Smiths to discuss some of the finer points of the project.
John has estimated the following PC items:
• Westinghouse four burner gas cook top GHR12W 1 x $452.40
• Lifestyle 175 sink 1145 x 495 x 190 1 x $498.00
• Lane Passage Set Domain Lever Style 14 x $53.50
• Shelly Acrylic bath1650 x 800 x 500 2 x $612.00
The above estimates include GST and a 20% margin
John has included a provisional sum for the construction of an in ground swimming pool at a cost of $22,689.00 including a 20% margin.
Project Details
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Builder:
John Keating
JK Builders Pty Ltd
25 Berry Avenue
Doncaster 3108 Victoria
ACN: 36 052 059 15
Builders License: DB25784
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Clients:
Mr Scott and Jenny Smith
44 Clyde Street
Box Hill 3128 Victoria
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Contract Price:
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$354,856.00
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Contract Signed on:
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6th May
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Project Duration:
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19 weeks
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Project Location:
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Lot 201 Cardorna Street Box Hill 3128, VOL. 4796 FOL. 182Plan of Subdivision No. 4381
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Building Works:
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4 bedroom brick veneer house, 9 pages of plans and 12 pages of specifications prepared by BD Drafting Services, 3 pages of engineer's designs prepared by Chris Brown
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Exclusions from contract price:
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Connection of:
Gas
Electricity
Telephone
Water
Sewerage
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Home Warranty Insurance:
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QBE Insurance Australia, $2,125.00
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Lending body
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ANZ Bank, 101 Elizabeth St Melbourne
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Procedure
Follow the steps below to complete this assessment task.
Step 1
Use the information in the scenario and the project details to complete the ‘Particulars of Contract'.
Step 2
Research the required information to complete ‘Schedule 1'. Decide on a reasonable timeframe for expected delays. Note what items will be excluded from the price and give an estimate for each item.
Step 3
Use the information in the scenario to enter the details of Prime Cost items, and provisional sums.
Step 4
Calculate the deposit amount and progress payments. Enter these into ‘Schedule 3 Method 1' of the contract.
Step 5
Good communication is essential to a building project running smoothly. It is important that the client is aware of all his or her rights and obligations in relation to the building contract.
Draft a letter to your client explaining the following conditions of the contract:
• the cooling off period
• the steps they must take to request a Variation
• the reasonable access to the site
• what constitutes a breach of contract for both parties
• how the contract can be terminated
• the requirements for extensions of time
• requesting multiple copies of the required documents.
Step 6
Hand in the completed contract by submitting it to your assessor in class and submit the draft letter to the client by selecting the ‘Upload file' button via the studentweb.
Attachment:- Prepare a Contract.rar