Evaluate Contract Risk and Specialist Requirements for Tender Documentation Report

CRS176
Revision 101
July 2017
Page 1 of 6
Assessment Task 1:
Student Version: Report, Project, Portfolio
Student information
Student name:
Click here to enter text. Please use the
student’s full name (no abbreviations or
nicknames).
Student ID: Click here to enter text.
Section A – Program/Course details
Qualification code: CPC50210 Qualification title: Diploma of Building and
Construction
Unit code: CPCCBC4013A Unit title:
Section B – Assessment task details
Assessment number: 1 Semester/Year: 201820
Due date: To be provided by your
Assessor.
Duration of assessment:
Assessment task
results:
This assessment task will be marked as:
Ungraded result: Satisfactory or Not Satisfactory
Other (eg points): Graded
Section C – Instructions to students
Task instructions:
As a Domestic Builder (company including yourself, a carpenter and an apprentice), you are required to
research the contract risks associated with the compiling of tender documents.
Browse through the Request from Tender (Appendix 1) and other documents provided to get a general idea of
what they contain.
PART A
You are required to research the contract risks associated with the compiling of tender documents
1. Six potential risks interpreting and pricing tender documents from the client’s point of view.
a. Breaches of contract
b. Risk of default or non- performance of key players
c. Disputes over payments
d. Exposure through clauses that work against the organisation
e. Industrial misunderstanding or overt action
f. Inappropriate funding levels and funding shortfalls
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CRS176
Revision 101
July 2017
Page 2 of 6
Section C – Instructions to students
2. Six potential risks interpreting and pricing tender documents from the potential contractor’s point of
view.
 Failure to adequately anticipate labour and material costs
 Complexity of the project team
 Site access issues
 Exchange rates
 Supplier or subcontractor ability
 Circumstances such;
 Delivery delays that delay project completion
 Subsequent delays in progress payments
 Labour shortages
 Inclement Weather
 Disputes over payment
 Rework
3. Give brief outline of how the risk may affect the outcome.
Risk may be defined as any event, influence or factor that impend the ultimate completion of a project
with respect to quality, cost, or time of the project. Labour related risks for instance are one factor
that can make a project completion to be unsuccessful. The contractor should therefore make a rule
of thumb that the trade unions of the staffs are in line with the project working hours and price to
avoid issues such as boycotting or job shifting that can hamper with the expected project outcomes
Part B
Using AS4120 Code of Tendering answer the following.
1. List at least three Australian standards which is relevant to the tendering process.
2. Which Australian standard for tendering is used specifically for design and construction
contract?
3. In the Code of Tendering, what is the definition of:
i. Construction industry
ii. Principal
4. In Part 6 of the Code of tendering, explain briefly (in your own words) the obligation of the
principal at the following stage:
i. Pre tender
ii. Tendering
5. In the Code of Tendering, what should be the accepted procedure for the closing of tenders?
6. In the Code of Tendering, explain the process of evaluation of tenders.
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CRS176
Revision 101
July 2017
Page 3 of 6
Section C – Instructions to students
7. What are 5 main obligations for tenderers?
8. What would be an example of malpractice as mentioned in clause 7.5 of the Code of
Tendering, explain your reasoning?
9. Why is it important that information provided by the tenderer to the principal should remain
confidential?
PART C
1. Refer to request for tender (Appendix 1) and find out
a. What are the tender dates and times?
Tender dates and times refers to time periods before the expiry of the contract.
The tender dates and times enable the parties of the contract to have time to make
decisions before the expiry date of the contract.
b. Record date, time and
Stipulates the specific period that the tender was drafted interms of day of the
month and the time
c. Address for lodging a tender.
This part requires the tender to be clearly marked with the subject matter of the
tender, the tender reference, the tender closing date including the time on the top
part of the tender envelop
2. Make a list of all the contract requirements you can identify.
 An offer indicating willingness of parties to contract on the given terms
 An acceptance
 Lawful subject matter
 Mutuality of obligation
 Consideration
 Competent parties with legal capacity to be involved in a contract
3. Identify those requirements that are specialist in nature that are beyond the usual scope of
work and may have to be outsourced or otherwise addressed. These are areas that pose a risk
to you in terms of cost blowouts.
 Performance capability to provide human resources
 Financial capacity
 Risk insurance
4. Describe, in your own words, practical solutions for the risk associated to the specialist
requirements.
The issue of performance capability to deliver human resources can be tackled by evaluating
the previous projects handled by the contractor.
The involved parties in a tender contract must demonstrate that they are capable of financially
handling their tasks without problems during the whole period of the contract. This can be
solved by the tenders filling a form that shows their current and past financial trends.
5. Make a list of your sources of information for each of the contract requirements
Sacks, R., Radosavljevic, M., & Barak, R. (2010). Requirements for building information modeling
based lean production management systems for construction.
https://www.tenders.gov.au/ (accessed: 24/07/2017).
www.architecture.com.au/services/abic.
https://www.designingbuildings.co.uk/wiki/Typical_tender_process_for_construction_projects
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