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Australian building Industry Assignment PDF

   

Added on  2021-05-30

32 Pages6168 Words180 Views
CONTRACT PROPOSAL 1Name of the institutionCourseInstructorTime of submission1

CONTRACT PROPOSAL 21 What is a valid contract?A valid contract is an agreement expression that exists between two bodies or parties to deliver product or services. It is an agreement where the parties plan on the money promises or any valuable commodities and carry out the whole process as per the law (Hussin, & Memon, 2013).Identify three (3) essential elements of a valid contract.A valid contract is made up of the following essential requirements: The need or intention of creating law enforcement relations, Offers that contain all details or documents that entails what is to be provided, the money or anything of interest has to be considered in the contract agreements (Hussin, & Memon, 2013).Identify three (3) standard building contracts used in AustraliaA valid contract is made up of various standards of contract building.in Australia, different standards of building contract are employed which are:Australian building industry contract-ABC MW-1 major works contract. The standard contract ismade to get the use of simple plain language such as English and entails few risks to architects ascompared to other standards.Australian standard general conditions of contract AS2124-1992.It is most preferred as it avails for price or lump sum contract.2

CONTRACT PROPOSAL 3Australian standard general conditions of contract AS4000.the standard is employed to bring changes in construction law and practice (Hussin, & Memon, 2013).Explain the different types of contracts the builders in Australia use.In Australia, the government choose to apply various types of contracts. These include:Lump sum contract.it is the most contract that is applied in construction contract in which the involved parties come into agreement on a lump sum price before the contract is initiated. The contractors are given the opportunity to analyse, evaluate or execute the project’s completion for the provided price.it is here where the contractors are allowed to study the contract and come up with the right quotation.in places where the project or work nature are not appropriately stated orwhere seed is considered, the lump sum contract is inefficiently applied (Hussin, & Memon, 2013).Lump sum with rising and fall. This is a contract in which there is allowed variation in project cost either in terms of materials, labour and other spending involved in construction. During the agreement between the two parties, legal clauses may be used to prevent price or cost shooting where as in the places where good negotiations or agreements the clause is not mostly applied (Hussin, & Memon, 2013).Cost plus a fee.it is also referred to as reimbursement cost contract in which payments are made to the contractor to account for all expenses allowed as he or she is also added some amount of money for profit making. This makes the companies generate more product techniques that will 3

CONTRACT PROPOSAL 4economize the market sector. This contract form is divided into cost plus award fee, cost plus fixed fee, cost plus incentive fee and cost plus a percentage of cost (Hussin, & Memon, 2013).Cost plus a percentage. This is an added amount of money that a client appoints to the contractor which he or she will use to cater for any additional project expenses incurred during construction. The contractor is required to account for how the additional amount was utilized during the construction exercise (Hussin, & Memon, 2013).Do and charge contract. This type of contract is intended to be used by all construction works which does not involve any fixed price.it is a method where the client chooses to pay the contractor for all the building expenses with an additional fee.According to Section 31 of DOMESTIC BUILDING CONTRACTS ACT 1995, identify five(5) major components of a building contract?In accordance with the section 31 of domestic building contracts act 1995. a contract has been classified into five main components which are illustrated as follows: The contract should contain the address, name, and signs of the parties involved. This is very important as it makes legalizes the contract.it will be found hard defend the contract in court due to lack of proper data or documentation or absence of relevant signatures. The plan or contract scope involves details that elaborate on the availed services comprising of proper quality, materials, work schedule, grade elaborations and other available specifications that are included in the construction project.It is most important to consider the cost of the project and the payment terms. This is a very important part of the contract which has a need to be properly stated or agreed. Both the client 4

CONTRACT PROPOSAL 5and the contractor have to discuss about the cost and the means of payments which is important to prevent confusion or disagreements in service provision. This section entails the payment schedules, due amount and payment terms and conditions.in addition to this, the two parties needto consider the contracts working schedule which will ensure proper project working.it is in this part that appropriate starting and project completion time is estimated. From this, both the client and the contractor gain information which helps them differentiate work and calendar dates. Thisalso enables the contractor to evaluate if delays will be incurred in the project due to improper weather, the process of obtaining work permit, work approvals and assessments.it enables the contractor to account on the project expenses such as time additional. Furthermore, the authorities needs to be consulted to avoid complexities. This shows the parties that have the authority to make project construction decisions.it contain bodies that legally make binding decisions before the project begins as it also saves time and confusion reduction during construction (Hussin, & Memon, 2013).List and describe four (4) documents that can be used in the formation of contract documentsThere are various different documents used in the formation of contract document which include:Work statements. This document consists of important information about the scope of the work and useful binding information that is essential in project construction. A proper working scope puts into arrangements contains proper detailed information on when the project is to start or endand all the expenses.5

CONTRACT PROPOSAL 6Contracts and agreement contracts. These are construction documents used by the clients and thecontractor or an officer in charge of the contract as is an important component in contract making.it is through this document that other referrals and documents are attached.General conditions. This is a document that well elaborates on the evaluation of the project as it covers all the rights of the involved parties.it contains all additional costs, things that should be claimed and participants’ titles.Construction schedule.is an important document as it allows the officer in charge of the construction to go through it and be in a position to know the time that will take the project to complete. Construction work schedule is part of agreed monthly terms that need to be checked and updated with time (Hussin, & Memon, 2013).Write a short note on the following terms used in the contractArchitectAn architect is a qualified individual whose responsibility is to design project, make a plan and verify the building or construction of a project. The individual uses the knowledge used in class to apply in designing, analysing and planning how to make building construction. He or she has appropriately qualified certificates and is licensed or is recognized government institutions (Hussin, & Memon, 2013).Contract price: 6

CONTRACT PROPOSAL 7A contract price is defined as the price that is used to cater for all the services and goods present in the contract.it is from this that one is capable of knowing whether a contract exists or not. When this is taken to a court, the court may deny the contract as it lacks the contract price.it caters for the expenses or damages that may be incurred in the contract (Hussin, & Memon, 2013).Provisional Sum:The provisional sum is an allowed amount or money which a consultant evaluates to cater for those things that may not have been included in the or well evaluated in details in the project contract.it is included in the contract design price.Tribunal:Tribunal is any individual or institution who has the responsibility to authorize or identify whether or not if a contract exists or check if there are disputes in the between the parties. This isprobably the contract assigned an officer or the court's judge (Hussin, & Memon, 2013).Cooling-off period notice:Cooling-off period notice is the allowed time to the clients which enables them to cancel or stop a contract before it the working begins.in this notice, the client is not charged or penalized for theactions (Hussin, & Memon, 2013).Which among these circumstances can cause a contract to be terminated?7

CONTRACT PROPOSAL 8The CLIENT and the contractor need to brief construction surveyor for the construction withintwo weeks after agreeing with the constructor to end the contract due to the regulation stipulated(Hussin, & Memon, 2013).Identify three (3) ways a contract can be terminated.A contract can be terminated or discharged in the following ways:Performance impossibility.in this case a client is capable of terminating a contract when thecontractor fails to show up. If the due to the agreements the contractor is able to show up and dothe assigned job, it is referred to as performance but if he or she fails, it’s known as performanceimpossibility (Hussin, & Memon, 2013).Contract breach. This is where a contract is not accepted by one of the parties and due to this, thecontract can easily be stopped or discharged as both parties must be in agreement for a contractto exist. This might be due to one or either party failing to fully meet the needed requirements.Contract completion. A contract is usually discharged if all the requirements made in the contractduring the agreement are completed. Both parties are asked to have well documentations on thestarting and end of the contract as it is more important in the cases of disputes arise. The lawcourts also use this document in the process of solving the cases (Hussin, & Memon, 2013).Identify two Circumstances in which builder and owner can be accounted for contractbreachA substantial breach by the owner includes clients’ delay which the makes complexities in theproject design by the contractor. Subsequent performance is a case which requires the contractor8

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