Select and Prepare a Construction Contract

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Instructor
CERT IV BUILDING AND CONSTRUCTION
21 November 2018
Select and Prepare a Construction Contract
Question 1: Name one step you could take to ensure the owner is able to understand the contract
documentation if they have language and cultural background differences?
Answer:
By using assistance of a family member or friend of the client who can help with
communication.
Question 2: Name 2 types of contracts commonly used in domestic/residential construction:
Answer:
a. Period Trade Contract
b. Cost Plus Contract (not legal in all states & territories)
Question 3: What is a Small works contract used for?
Answer:
The small works contract is used when works are to be performed under the value of $20 000.00.
Question 4: Can you use a cost plus contract for building a house in any state or territory?
Answer:
No, this is due to the unexpected costs that cannot be forecasted by the owner.
Question 5:
a) Who use a period trade contract?
b) How long are they current for?
Answer:
a) A contractor (Builder) and the sub-contractor.
b) One year hence termed as annual document.
Question 6: Provide a list of items that you would expect to find in a Building Specification.
Answer:
a) Document names and numbers (Plans & Engineer Drawings)
b) Type of concrete & finish

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c) Height of wall tiles
d) Number of shelves in a cupboard
e) Who is supplying the temporary services for construction
f) Number of power points
g) Drainage requirements
h) Color
i) Nominated contractors, and
j) Nominated suppliers.
Question 7:
a) When would you be likely to see or use a Schedule of Finishes?
b) Name 2 items which could be contained in this schedule
Answer:
a) When an Architect is involved during the design and briefing process.
b) i. Owner’s individual specified finishes for any areas that are relevant.
ii. Cabinetry detailed drawings or specifications.
Question 8:
a) What does the term B.A.L stand for?
b) What does it mean if the B.A.L number is higher?
Answer:
a) Bushfire Attack Level
b) The higher the number, the more measures need to be implemented to protect the
dwelling and the inhabitants.
Question 9: Provide a list of features you may find in an Engineer’s report.
Answer:
a) Soil type
b) Soil test data and details
c) Strength and slump of concrete to be used
d) Strength and quality of steel to be used (Structural & Reinforcing)
e) Any connection requirements and inspections required for the construction process.

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Question 10: Provide a list of clauses, sections, or items that you would find within a
construction contract.
Answer:
a) Delays / Extension of time
b) Dispute resolution
c) Variations
d) Practical completion
e) Termination of Contract
f) Progress Payments
Question 11: When specifying the Construction Project Timeframe/Building Period, what 3
factors must you consider when calculating the number of days, you require to complete the
project?
Answer:
a) The building time
b) Any weekends and Public holidays during this period
c) Any inclement weather allowance (rain or other)
Question 12: Special Conditions/clauses are important. List one reason why you would need, or
want to include Special Conditions within a contract?
Answer:
So as to itemize any special requirements that both the contractor and sub-contractor are
mutually agreeing on.
Question 13: Legal terms and conditions are vital for understanding the contract and the
implications of any breaches that may occur. Name 3 clauses you would find in the terms and
conditions of a contract and provide an example for each.
Answer:
a) Delays / Extension of time. Examples of a good case for an ‘extension of time’ may be
due to:
• Wet days,
• Industrial dispute,
• Defect Rectification works