Supervising On-Site Medium Rise Building Construction

SUPERVISE THE PLANNING OF ON-SITE MEDIUM RISE BUILDING OR
CONSTRUCTION
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Date

Question One
Construction Contracts
Contract documents are very crucial materials that contain binding information or obligation
between two parties. A contract document will, therefore, be evidence that there is an existence
of a contract.
Types of the construction contract
Selection of the right contract is normally very important for both the contractor and the client.
Every party that is involved in the contract should do the selection depending on the interest of
the project which may be either short term or long term. The best way to assist in the
understanding of different types of construction contract is to analyze and also examine the
construction cost. The following are some of the common contracts that are encountered in the
construction industry:
 Cost-plus-fee contract
 Unit –rate contract
 Lump-sum contract
Lump-sum contract
This is a very common type of contracting in which the contractor strives to complete the project
for a lump-sum. This is done according to the design which had been prepared by the architect.
This can only be possible in the cases where the information provided by designer is very
accurate and also complete. It is, however, logical for the prices to be escalated to cover for
uncertainties of the operation(Humphreys, Nicol, Roaf and Sykes 2015).

Cost-plus-fee contract
It is one of the methods of contracting which is suitable for the cases where the intended work
has an overlapping design and construction phases. It is usually based on a fixed fee plus prime
cost.
Unit-rate contract
The unit rate contract usually allows the contractor to make tenders that are firm for those
projects whose exact amount of work cannot be determined at the outset. Also, it is applicable
for those projects where the client wishes to be given a fairly accurate idea of what the final cost
might be(Islam, Jollands and Setunge 2015).
Question Two
(a) Sub-contracting
In the case of Business Victoria, sub-contracting is defined as an arrangement or a relationship of
business-to-business with the subcontractor providing a service that includes tools, labor,
materials, and expertise. In this kind of relationship, there is no employment that exists such kind
of relationships. The sub-contractors undertake to produce a given product or provide a given
service and are not under the control and direction of the employer. Their activities during the
execution are independent of their work. The subcontractors are free to give jobs to others.
Ideally, a subcontractor has to control over the hours that they work, the performance of the
work. In this case, the subcontractor may accept band perform duties of other business when the
head contractor has engaged the same(Freeman and Strong 2017).
(b) Australian Taxation Office

According to the information available at the office desk, when one is engaged as a
subcontractor, there is entering a business-business relationship. This implies that there are no
minimum rates of payment. The conditions that underpin the relationship, therefore, do not exist.
This implies that the payment is negotiated between the subcontractor and the head contractor.
This will include the negotiation of the terms of payment of the performance and material
supply. The taxation fee or the construction charges that are levied on the licenses are aid by the
head contractor.
Question 3
List of documents in a contract package
 The general condition of the contract
 Bill of quantities
 Special conditions
 Statement of work that is commonly known as SOW
 Drawings
 Created construction schedule
 Agreements of Contract
Question 4
Determination and calculation of material quantities and labor hours
The determination of the total work hours for a particular task normally involves having the
exact knowledge of the quantity of the work to be done. Also, the productivity rate for the
specific crew that is expected to perform the work must be considered. The quantity of work that