Commercial Construction Report: Analysis of Case Studies and Contracts

This report provides an analysis of commercial construction projects, focusing on two case studies and exploring various procurement contracts, including lump sum and sub-contracts. The report begins with an executive summary highlighting the importance of detailed analysis for improved service quality and cost-effectiveness. It then introduces the case studies, detailing their locality, clients, professional consultants, contractors, and building classifications. The core of the report examines different contract types, their applications, limitations, and benefits, with a specific focus on lump sum contracts and their variations, as well as sub-contracts. The report further explores project management principles and the application of constructability principles in both case studies, emphasizing the importance of integrating construction expertise in the design phase. It covers constructability enhancements during the conceptual planning, procurement, and design phases, including considerations for construction methods, site layouts, and the use of advanced information technology. The report concludes by summarizing the key findings and offering insights into the selection and management of construction contracts.

COMMERCIAL CONSTRUCTION
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Executive Summary
The improved quality of services, better value for money and very significant saving in both project time and cost are clearly
manageable through detailed analysis. This may not be applicable to only individual stages of the entire process of construction but
also the interaction concept which exist between the two phases. In any engineering project or building, getting improvement through
careful consideration of the design, procurement, techniques of construction and approach of management should be aimed at making
the implementation easier, cheaper and quicker. This is actually a self-explanatory term in which there is a provision of the hourly
rates for every discipline. The billing procedure of the client is calculated as per the hours worked. This can be for every week, month,
year etc. This can be one of the best options as a contract where the scope has not been understood fully or there has been no finalized
program on the same. There is no risk involved from a contractor's point of view when working on rates that have been scheduled. All
the hours are fully paid, in some cases; the final costs of the projects are cheaper upon completion while using the rates that have been
scheduled

Contents
Executive Summary..................................................................................................................................................................................................... 2
Introduction................................................................................................................................................................................................................. 4
Supermarket Case Study Overviews........................................................................................................................................................................ 4
Proposed Office and Work Development................................................................................................................................................................5
Lump sum Contract.............................................................................................................................................................................................. 6
Lump sum subject to rise and fall specifications..................................................................................................................................................6
Sub-contract........................................................................................................................................................................................................ 7
Project management........................................................................................................................................................................................... 8
Limitations and Benefits of Contract Chosen...........................................................................................................................................................8
How the principles of the constructability is followed in the two case studies:......................................................................................................9
Project constructability enhancement during the phase of the conceptual planning:..........................................................................................10
Scope establishment just before the commence of the project............................................................................................................................20
Conclusion................................................................................................................................................................................................................. 21
REFERENCES............................................................................................................................................................................................................... 22

Introduction
It is the interest of all the experts of projects and the project owners (clients) to have the project completed on time and as per the
expectation of the shareholders. In order to achieve this complex and tricky goal, several factors must be considered and various
dimensions of the project must be properly defined within the boundaries of the project (Jarkas and Horner 2013).
Question 1
Supermarket Case Study Overviews
Locality: PNG Highlands
Clients: Retailers
Professional consultants: Mr. Samwel Crowe and Mr. Hayden Cessar
Contractors: Mario Casser
Building classification: Commercial building
Proposed or expected occupancy levels & description of the primary structural systems:
 Floor systems

 Roofing systems
 Fire protection systems
 Ceiling framing and grid layout
 Electrical and site plan
 Air Conditioning systems/legend
 Service legend
The expected occupancy level will be determined with cushion dimensions 42cm x 4cm x 5cm and this will depend on the location
and activities being conducted in the area.
Proposed Office and Work Development
Locality: PNG Highlands
Clients: Retailers
Professional consultants: Mr. Samwel Crowe and Mr. Hayden Cessar
Contractors: Mario Casser
Building classification: Commercial building
Proposed or expected occupancy levels & description of the primary structural systems:

 Air Conditioning systems/legend
 Service legend
 Floor systems
 Roofing systems
 Fire protection systems
 Ceiling framing and grid layout
 Electrical and site plan
Question 2
Lump sum Contract
This is a kind of contract that has a fixed price for all the activities that are related to the construction. The contact is normally known
to include the penalties for the late termination or the incentives for the early termination. The application of the Lump sum contract
can be done in the cases where the project of the construction has a clear scope, a drawing of the construction and a proper outlined
schedule. This is common in the case of small and simple projects. In some cases, the owner could possibly have the orders changed
for work that is unspecified while at the same time take very high risks for taking back the credit for the work that is not completed.
Lump sum subject to rise and fall specifications.

A contract of the lump sum that has a rise and fall clause is that type of contact in which the risk of varying the cost can be possibly
shared with the client as opposed to being borne solely by the construction team who is the builder. This is different from the cases of
the industrial practices whereby the changes in the cost of the building cannot be passed to the buyer of the home
. It is, however, important to note that under S13(1) of the contracts of home building Act, the clauses of rise and fall are outlawed for
those specific contracts that are valued at less than a set amount. The present value of this figure is roughly $500000.The liability of
the builder who enters into such an agreement is equivalent to $ 10000 as a fine. The clauses of rise and fall can be used for those
contracts that are over the threshold.
Sub-contract
A sub-contractor: A business or a person who has a contract not as an employer but as an independent contractor may decide to
dedicate part of the work of the services to another contractor to be performed(Illingworth, JR,Abdul-Malak, and Hassanein 2016).
This kind of the individual who takes a portion of the work is called sub-contractor. The participation or the involvement of sub-
contractor is common for the case of the bigger projects. The type of contract that is signed by the sub-contractor is called a sub-
contract (Heesom and Mahdjoubi 2014). Some of the activities that are involved in the sub-contracting include plumbing work,
painting, electrical roofing, cement work etc.
In the case of project 1, if I were to act as a builder, I would prefer the use of Lump sum contract with the subject of rise and fall as
specifications. Considering it is just a single house dwelling that has 2 levels of dwellings, it will basically take a period of less than 2

years to have it completed. The project, however, has very detailed specifications and drawings which make the estimation of the cost
to be quite easy. Also in the clauses of the fall and rise contract in project 1 are already outlawed for such contracts that are less than
$500000.This particular value meets the requirements that have a connection with the law itself.
Part b
Project management
The management of the project is all about using the skills and tools to meet the quality costs, specific time and the objectives of the
resources for a particular project. The builder is more likely to succeed by planning, defining, monitoring, executing the whole
program of building as a strategy (Oladiran, O.J., 2019).
Limitations and Benefits of Contract Chosen
 This contract of construction may not be subjected to signature by any party without consent written. Also, the same consent
should not be withheld unreasonably.
 Any notice permitted or required under the conditions of the contract of construction shall be considered pursuant to article 1
that has been set above.
 Should any provision of this particular contract of construction found be invalid, unenforceable or illegal, the remaining
portion of shall be in full effect and force.
 This particular contract is under the governance of the laws of the States of Wales and any legal proceedings and interpretation
must be done will be confined only in the country of Australia.

 The construction contract will be binding inure to the gains of the parties and if allowed upon their successors, executors, and
trustees.
 The specification will always take precedence over the plan in the event of conflict. This means that the plan will also take
precedence over this particular document as well (Jarkas, A.M., 2015).
 This contract of construction together with documents included in section 1.4 is only subject to changes as outlined in section
1.4. It is a representation of the agreement between the involved parties and the modification can only be done with signatures
of all the parties.
How the principles of the constructability is followed in the two case studies:
The process of construction usually refers to a wide range of activities like structural and civil engineering projects such as building
work. The project of construction usually has very many phases or stages. The stages begin from establishment of the brief of the
customer o the requirements of the customer to the eventual erection, construction or installation of the structure. This is later followed
by maintenance as well as life cycle operation. All the activities of the practice that can effectively contribute to the effective
development will therefore be refered to as the sustainable development (Radosavljevic. and Horner 2017).
It will include those processes which are believed to improve on the customer satisfaction as well as quality of life thereby catering
for the user changes in the future, provision of support to the natural and social environment and finally ensuring that there is
maximum utilization of the resources efficiently. The two case studies employed various aspect of constructability in the conceptual
design, procurement, and final design and finally start of the construction. From the above illustrations, it can be said that

constructability I the optimum use of the knowledge of construction as well as experience in the conceptual planning, procurement,
detail engineering as well as phases of operations in the field so as to achieve the overall objectives of the projects. This implies that it
is an integration of the expertise of construction in the design of the project after planning.
Project constructability enhancement during the phase of the conceptual planning:
Concept C1: The programme of the project constructability in these case studies were discussed as we’ll s documented within the
execution plan by having participation of all the project team members (Hatmoko and Scott 2014).
Concept C2: A project team which includes engineer, representatives of the owner and contractor were formulated in both case
studies. This kind of formulation allowed for the maintenance as well as consideration of the issue of constructability from the
project’s outset through the entire phases.

Figure1: Involvement of professionals e.g designers(engineers like M.C) through formulation program(Illingworth, JR,Abdul-Malak,
and Hassanein 2016)

Concept C4: The construction methods were taken into consideration during the selection of the number s well as the type of the
contracts that was required for every case study.
Concept C5: The construction completion date as well as the master project schedule was considered to be construction –sensitive in
all the two case studies and their assignments were done as early as possible.
Concept C6: In order to allow for the accomplishment of field operations efficiently and easily, major methods of constructions were
discussed and analyzed in depth as early as possible so that the design could be directed as per those methods
Concept C7: There has been careful study of the site layout so that construction, maintenance as well as regular operation can be
efficiently performed as well as avoiding interference between the activities carried out during all the important phases.