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CSM80003 Construction Law and Contract Management Assignment Sample

You have been approached by Mrs Jasmina who is aware of your recent enrolment in the Mrs Jasmina asks you for advice on a planned construction project. Her intention is to build a four storey apartment building in one of the suburbs in Melbourne. The apartment would have private residences, ready to rent or purchase on the second, third and fourth floors; a restaurant, coffee shop, and other shops on the ground floor; and a carpark in the basement. The carpark will be for only the residents or workers in the building. Visitors will park along the road.

Mrs Jasmina needs advice with the following:

1. What are the best types of contracts she needs for the project and why?

2. List and briefly explain five (5) features (can be clauses) that the contract, among other things, must have. Briefly explain why those features of the contract are important.

3. Will she be able to request a variation to the project once the construction has commenced? If so, what are her rights and obligations in case of a variation?

Solution

Answer 1

The following contracts for the assignment help needs to be considered while planning a one like Mrs Jasmina

a) Lump Sum Contract: A fixed price is included in this kind of contract for the entire construction project. It is reasonable for projects with a clear cut extension, and it helps in monitoring the expenses. Because it lowers the likelihood of price increases and provides cost certainty, this contract is appropriate for Mrs. Jasmina's project.

b) Design and Build Contract: Under this agreement, a single contractor is entrusted with the responsibility of the project design as well as construction. It helps in ensuring a single point of contact and lessens the disagreement chances between the design and construction teams, and hence would be apt for Jasmina

c) Construction Management Contract: A construction manager is hired under this contract to oversee the entire construction process, including selecting subcontractors. Mrs. Jasmina will benefit from this because the construction manager will be able to better manage the project, guarantee that it will be finished on time and within budget, and coordinate the various subcontractors.

Each of the contract types provides various advantages and the best choice for Mrs. Jasmina’s project will rest upon the specific needs such as risk tolerance and preferences

Answer 2

a) Scope of Work

A fixed price is included in this kind of contract for the entire construction project. It is reasonable for projects with a clear cut extension, and it helps in monitoring the expenses. Because it lowers the likelihood of price increases and provides cost certainty, this contract is appropriate for Mrs. Jasmina's project.

b) Payment Terms

A single contractor is responsible for both the project's design and construction under this agreement. Because it ensures a single point of contact and reduces the likelihood of disagreements between the design and construction teams, this would be suitable for Mrs. Jasmina.

c) Completion Date and Time Extensions

A construction manager is hired under this contract to oversee the entire construction process, including selecting subcontractors (Coldwell, Burchett-Williams & Celeste 2010). Mrs. Jasmina will benefit from this because the construction manager will be able to better manage the project, guarantee that it will be finished on time and within budget, and coordinate the various subcontractors.

d) Liquidated Damages

In the event of project delays, a provision for liquidated damages should be included in the contract (Coldwell, Burchett-Williams & Celeste 2010). In the event that the contractor fails to meet the agreed-upon deadlines, Mrs. Jasmina receives financial compensation as a result of this. It is significant on the grounds that it boosts the worker for hire to finish the undertaking on time and offers security to Mrs. Jasmina in the event of postponements.

e) Dispute Resolution

In the event that disagreements arise during the project, the contract ought to include provisions for dispute resolution, such as arbitration or mediation, to avoid lengthy and costly court battles. It's important because it gives parties a way to settle disputes without having to go to court, which can save time, money, and keep the parties working together (Alshboul et al., 2022).

Answer 3

Indeed, Mrs. Jasmina can demand a variety to the task once the development has started, furnished that it is as per the agreements of the agreement. In construction projects, variations are common. Variations can be made to the design, materials, or construction methods.
In the event of a variation the rights and obligations of Mrs. Jasmina's includes

a) Right to request a variation

Mrs. Jasmina has the right to ask for a change as long as it doesn't significantly change the nature of the contract or make the contractor more vulnerable. She needs to be able to make adjustments during the construction process because new requirements or unforeseen circumstances may arise.

b) Obligation to provide notice

Mrs. Jasmina is required to notify the contractor in writing of the proposed change, outlining the changes and their justification. This is significant in light of the fact that it guarantees that the worker for hire is completely educated regarding the proposed changes and can evaluate the effect on the venture, including any acclimations to the agreement cost or finish date (Sellers 2022).

c) Right to negotiate the variation

Mrs. Jasmina has the right to negotiate the variation's terms with the contractor, including any modifications to the contract price, completion date, or other terms. This is significant because it enables both parties to reach a consensus regarding the terms of the variation, thereby guaranteeing a fair outcome for both parties and preserving a positive working relationship.

d) Obligation to obtain consent

Before the modification can be implemented, Mrs. Jasmina must obtain the contractor's approval. On the off chance that the worker for hire doesn't consent to the variety, the gatherings might have to determine the question through the agreement's debate goal arrangements. This is significant in light of the fact that it guarantees that the worker for hire consents to the proposed changes and that the variety is in accordance with the first agreement terms (Pennington 2012).

e) Obligation to document the variation

The obligation to record the change After the parties have reached an agreement, the change must be recorded in writing and signed by both parties. As a result, disagreements can be avoided in the future and there will be a clear record of the agreed-upon modifications. It is essential for ensuring transparency and that both parties are aware of their most recent obligations and responsibilities (DeVries 2019).

Mrs. Jasmina has the privilege to demand a variety to the venture whenever development has started, yet she should follow specific strategies and commitments to guarantee that the variety is appropriately executed. This includes giving notice, negotiating the terms, getting consent, and writing down the changes that were agreed upon. Mrs. Jasmina can ensure that her project adapts to any unforeseen circumstances or changes in requirements while maintaining a positive relationship with the contractor and reducing the likelihood of disputes by adhering to these rights and responsibilities.

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