Reference no: EM132628726

CPCCBC4003A Select and prepare a construction contract - Oceania Polytechnic Institute of Education

Select and prepare a construction contract

Metharom Construction (MC) plans to become a leading provider of housing construction and renovation services in the South-East Melbourne area. The company's overall strategy will be based on a continuing improvement process of setting objectives, measuring results, and providing feedback to facilitate further growth and progress. They have been involved in large scale construction for 3 years and are now branching out to residential housing.

You will be taking on the role of the administration manager, and your responsibilities include: preparation of budget reports, analyse and evaluate expenses, improve current policies and procedures regarding financing, create reports regarding financial issues and policies, be accountable for and manage staff.

Assessment 1: Analyse two contracts and make observations in the form of a written report.
(Maximum of 750 words)
Metharom is beginning work on a project described in appendix A. The Accounts team are trying to decide between two different contracts, and have come to you for guidance. Parts of the two contracts are enclosed in appendix B.

You will need to read through and complete the following tasks for each contract:
a) Identify a minimum of 3 legal terms and explain their meaning in your own words
b) Define the meaning of a minimum of 3 words that are specific to building and construction contracts
c) Explain Metharom's liability
d) Identify what action by the client would breach the contract

Once you have analysed the contracts, choose which one is best suited to the situation. Justify your answer.

(Maximum of 750 words)

Assessment 2: Meet with the potential client.
You are to meet with the potential client (to be played by your assessor) for the project discussed in assessment 1. They want to discuss the legal aspects of the build, and decide whether to hire you or go elsewhere.

Your assessor will be looking for:
• Knowledge of the requirements of accepting a contract
• Understanding of whether the client is able to agree to the contract
• Ability to legally justify the clients ability to agree
• Familiarity with contract and building legislation

Assessment 3: Complete a construction contract.

In consultation with the documents provided in the appendices, complete the contract by:
a) Writing a contract termination process
b) Calculating rise and fall amounts (using the formula from the appendices) and applying it to the project cost to produce a final cost
c) Creating a payment schedule that includes approximate dates of payment
d) Implementing a process for the builder to apply for an extension of time.
e) Listing the site accommodation, and services required for the building work
Along with the documents from the appendices that you believe make up part of the contract. Maximum of 1000 words.

Assessment Task 3
In consultation with the documents provided in the appendices, complete the contract by:
f) Writing a contract termination process
g) Calculating rise and fall amounts (using the formula from the appendices) and applying it to the project cost to produce a final cost
h) Creating a payment schedule that includes approximate dates of payment
i) Implementing a process for the builder to apply for an extension of time.
j) Listing the site accommodation, and services required for the building work

Along with the documents from the appendices that you believe make up part of the contract.

Maximum of 1000 words.

Assessment 4: Role-play a contract approval meeting.
Meet with a legal consultant (your assessor) to ensure that legislative requirements have been met by the contract. You need to discuss your contract with the consultant and look for feedback.

Your assessor will be looking for:
• Application of the Domestic Building Contracts Act 1995
• Workplace appropriate language
• Understanding of the builder's obligation under the contract

Assessment 5: 1 What four elements must a contract contain in order to be legally binding?

2 Give one reason why a contract may be invalid, despite the elements listed above?

3 Explain the term ‘cooling-off period'.

4 What is an implied warranty?

5 What is a defect liability period?

6 Who are volume builders?

7 Explain the term ‘occupancy permit'.

8 What is the contract law definition of a defect?

9 How does transparency in communication improve client/contractor relations?

10 What is a contractual relationship?

11 Explain why ethics are relevant to a contractual relationship.

12 When can an Australian Building Industry Contract Major Works - 2008 contract be used?

13 Compare and contrast AS4000 and AS2124 contract standards.

14 What are 4 things that a home improvement contract should contain?

15 What are three examples of works that require a ‘major domestic building contract'?

Attachment:- Select and prepare a construction contract.rar