Evaluate Contract Risk and Tender Documentation Report - Desklib

CRS176
Revision 101
July 2017
Page 1 of 10
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.
 Risk of letdown to conform to responsibilities (express or implied) of the tender papers will
consequence in susceptibility to litigation claims.
 Risk of unsuitable finance stages and funding shortages for the development, causing a
deferment or annulment of the development or renegotiation of the guiding principles in the
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CRS176
Revision 101
July 2017
Page 2 of 10
Section C – Instructions to students
 Risk of evasion or non-functional of one or more of the main performers, comprising of the
customer, the builder and subcontractors.
 Risk of clashes over payments, either payments from the customer to the builder.
 Risk of selecting an incompetent contractor that may lead to poor performance.
 Industrial clashes through errors onsite or through overt action.
2. Six potential risks interpreting and pricing tender documents from the potential contractor’s point of
view.
 Risk of susceptibility through sections that function contrary to the construction society, for
instance clauses that embrace the constructor answerable for situations beyond their control.
 Risk of clashes over payments, disbursement from your business to subcontractors. Evaluate
your money flow to confirm that you can make disbursements to subcontractors even if you
have not been salaried by the customer for a specific period.
 Inappropriate labour or supplies prices, or inaccuracies in any statistics given, underbidding
and execution at a loss.
 Risk of legal responsibility due to delays triggered by conditions beyond the contractor’s
control, such as; supply delays that interrupt scheme conclusion, consequent delays in
progress disbursements, labour scarcities, and weather conditions.
 Risk of evasion or non-functional of one or more of the main performers, comprising of the
customer, the constructor and subcontractors.
 Risk of mistake in the bid documents that may lead to disqualification.
3. Give brief outline of how the risk may affect the outcome.
 Mistake in bid documents by the contractor may lead to automatic disqualification from the
tender.
 Non- pfunctional of one or more of the key players in the contract would lead to penalties to
that particular party and hence termination of the contract.
 Inappropriate labour or resources prices, or inaccuracies in any figures given, underbidding
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CRS176
Revision 101
July 2017
Page 3 of 10
Section C – Instructions to students
by the contractor will eventually lead to performing at a loss.
 Delayed payments by the customer to the builder or by the builder to the subcontractors
would lead to late time of accomplishment of the project.
Part B
Using AS4120 Code of Tendering answer the following.
1. List at least three Australian standards which is relevant to the tendering process.
 Tendering at all stages in the building industry shall be executed justly in a way that is
impartial to all people involved.
 People shall conform to all jurisdictive responsibilities comprising of those necessary by
trade practices and customer affair regulation.
 Bidders shall only bid where they anticipate to perform the work.
2. Which Australian standard for tendering is used specifically for design and construction contract?
AS 4301—1995 General conditions of tendering and tender form for design and construct contract.
3. In the Code of Tendering, what is the definition of:
o Construction industry- Comprises of all structures, renovations, repairs, Civil
engineering, progression engineering, mining and weighty engineering developments.
It disregards cottage building.
o Principal- any contractor or sub-contractor welcoming and receiving bids.
4. In Part 6 of the Code of tendering, explain briefly (in your own words) the obligation of the principal at
the following stage:
o Pre tender
The principal is bound to make sure that the project to be executed is clear, brief and
specific.
The principal shall ensure that the superiority assurance standards apply to complete
procedure of outlining and detailing the necessity.
The principal should also arrange for sufficient budget to carry out the development.
o Tendering
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