Construction Work: Project Management Report, ABC Company

This report provides a detailed analysis of managing construction work, focusing on two key areas: variation claims and the processing of progress claims and payments. The report includes a variation claim example, detailing changes from aluminium sliding doors and windows to double glazing, outlining the original and new prices, labor costs, and the effects on the project timeline. The second part of the report focuses on progress claims and payment schedules, emphasizing their importance in avoiding project delays. It presents a projected payment schedule with expected completion percentages, cumulative amounts, and expected payment dates. Furthermore, the report includes two detailed progress claims, providing a breakdown of costs for various construction aspects, including preliminaries, groundworks, concrete, masonry, and more. The claims also incorporate variations and the amounts received, offering a comprehensive view of the financial aspects of the construction project.

Manage Construction Work 1
MANAGE CONSTRUCTION WORK
Name
Course
Professor
University
City/state
Date

Manage Construction Work 2
Manage Construction Work
Question 4: Manage on-site operations
Variations claim
Variation claims are very common and cannot be avoided in the construction industry (Mishmish
& El-Sayegh, 2018). These claims can affect the project significantly if not managed properly.
The following is the variation prepared in accordance with the client’s change order in this
project
Contractor Name: ABC Company Limited
Contact Name: James Rodriguez
Address: 55 Olympic Pde, Homebush, NSW
Phone No: [phone]
Variation No.: 1
Client: AKA Development
Address: 2135 The Boulevard, Strathfield, NSW
Contact Name: Robert Albert
Phone No: [phone]
Project: Proposed Commercial and Residential Development
Project Period: January 13, 2014 to December 15, 2014.
Date: 13th January, 2014.
Detail of variation Change aluminium sliding doors and aluminium sliding
windows to double glazing doors and windows
Original price (inclusive of tax) $47,500
New price (inclusive of tax) $191,725

Manage Construction Work 3
Variation price (inclusive of tax) $144,475
Variation labor cost (inclusive of tax) $750
Total variation price $145,225
Start date of variation 13th January, 2014
Period of variation 20 business days
End date of variation 10th February, 2014
Effects of variation on the project This variation has a lead time of three (3) weeks for the
materials (i.e. to place a new order from a supplier in a
neighboring country).
Since this variation has come up before start of the project, its
effect on the project delivery will be small. It will only extend
the period by five (5) days (due to complex process of
installing the double glazing doors and windows).
Contractor
Signed: JR
Name: James Rodriguez
Date: 13th January, 2014.
Question 5: Processing of progress claims and payments
Question 5(a): Projected payment schedule
Progress payment schedule is very important in construction industry as it helps the client
to get the required money and make payments on time thus avoiding project delivery delays
(Aziz, 2013). If the client makes late payments to the contractor, for whatever reasons, then the
project is likely to delay (Abduk-Rahman, et al., 2009). The number and dates of claims made
depends on the terms agreed between the client and contractor in the contract documents. The
claims must also be made in accordance with the standard format agreed between the client and
the contractor.
In this project, the client and contractor have agreed that payments will be made after
every four weeks. This mean that the contractor will make a claim at the end of every four

Manage Construction Work 4
weeks, unless discussed and agreed otherwise. According to the contract documents, the client
will have to pay the claim within four weeks after the claim has been mad. The table below
shows the projected payment schedule for this project. It is worth noting that this payment
schedule does not include variations claim that may arise as the project progresses.
Table 1: Projected payment schedule
PAYMENT SCHEDULE
Claim
No.
Expected %
Completed
Cumulativ
e %
Expected
Amount ($)
Cumulative
Amount ($)
Expected Pay
Date
1 20 20 744,648 744,648 10-2-2014
2 10 28 372,324 1,116,972 10-3-2014
3 6 34 223,394.40 1,340,366.40 7-4-2014
4 7 41 260,626.80 1,600,993.20 5-5-2014
5 8 49 297,859.20 1,898,852.40 2-6-2014
6 10 59 372,324 2,271,176.40 30-6-2014
7 8 67 297,859.20 2,569,035.60 8-7-2014
8 5 72 186,162 2,755,197.60 25-8-2014
9 5 77 186,162 2,941,359.60 22-9-2014
10 4 81 148,929.60 3,090,289.20 20-10-2014
11 5 86 186,162 3,276,451.20 17-11-2014
12 12 100 446,788.80 3,723,240 15-12-2014
Total 100% 3,723,240
Question 5(b): Progress Claims
Progress Claim No. 1
Company Name: ABC Company Limited
Contact Name: James Rodriguez
Address: 55 Olympic Pde, Homebush, NSW
Phone No: [phone]
10th February, 2014.
Client: AKA Development

Manage Construction Work 5
Address: 2135 The Boulevard, Strathfield, NSW
Contact Name: Robert Albert
Phone No: [phone]
Project: Proposed Commercial and Residential Development
Project Period: January 13, 2014 to December 15, 2014.
Claim Number: #1
Payment claim period: 13th January, 2014 to 10th February, 2014
Due date: 10th March, 2014.
CLAIM #1
# Particulars Contract Amount
($)
%
Completed
Amount Claimed ($)
1 Preliminaries 935,750 40 374,300
2 Ground works 112,500 100 112,500
3 Concrete 1,005,400 10.5 105,567
4 Masonry 418,500 9.5 39,757.50
5 Metalwork 228,200 13 29,666
6 Hydraulics 148,500 20 29,700
7 Electrical 92,600 6.5 6,019
8 Mechanical 176,500 8 14,120
9 Waterproofing 23,100 18 4,158
10 PC items 200,080 13 26,010.4
11 Roofer 33,210 8.5 2,822.85
12 Plasterer 144,100 0 0
13 Painter 56,000 0 0
14 Ceramic tiler 80,000 0 0
15 Carpet 38,400 0 0
16 Cleaner 2,400 1.2 28.8
17 External works 28,000 0 0
Total 3,723,240 744,649.55
Amount Claimed 744,649.55
Plus Variations 145,225
Less amount Received (0)
TOTAL CLAIM NO. 1 889,874.55

Manage Construction Work 6
Progress Claim No. 2
Company Name: ABC Company Limited
Contact Name: James Rodriguez
Address: 55 Olympic Pde, Homebush, NSW
Phone No: [phone]
10th March, 2014.
Client: AKA Development
Address: 2135 The Boulevard, Strathfield, NSW
Contact Name: Robert Albert
Phone No: [phone]
Project: Proposed Commercial and Residential Development
Project Period: January 13, 2014 to December 15, 2014.
Claim Number: #1
Payment claim period: 10th February, 2014 to 10th March, 2014
Due date: 7th April, 2014.
CLAIM #2
# Particulars Contract Amount ($) % Completed Amount Claimed ($)
1 Preliminaries 935,750 48.5 453,838.75
2 Ground works 112,500 100 112,500
3 Concrete 1,005,400 20.5 206,107
4 Masonry 418,500 14.5 60,682.50
5 Metalwork 228,200 23 52,486
6 Hydraulics 148,500 14 37,125
7 Electrical 92,600 23 12,964
8 Mechanical 176,500 31 40,595
9 Waterproofing 23,100 29.5 7,161
10 PC items 200,080 18.5 59,023.60
11 Roofer 33,210 30 6,143.85
12 Plasterer 144,100 30 43,230
13 Painter 56,000 10 5,600
14 Ceramic tiler 80,000 2 1,600

Manage Construction Work 7
15 Carpet 38,400 2.5 960
16 Cleaner 2,400 6.7 160.80
17 External works 28,000 60 16,800
Total 3,723,240 1,116,977.50
Amount Claimed 1,116,977.50
Plus Variations 0
Less amount Received (744.,649.55)
TOTAL CLAIM NO. 2 372,327.95
References
Abduk-Rahman, H., Takim, R. & Min, W., 2009. Financial-related causes contributing to project delays.
Journal of Retail & Leisure Property, 8(3), pp. 225-238.
Aziz, R., 2013. Ranking of delay factors in construction projects after Egyptian revolution. Alexandria
Engineering Journal, 52(3), pp. 387-406.
Mishmish, M. & El-Sayegh, S., 2018. Causes of Claims in Road Construction Projects in UAE. International
Journal of Construction Management, 18(1), pp. 26-33.