CPCCBC5005A: Assessment 4 - Subcontractor Management and Review
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This assignment solution for CPCCBC5005A Assessment 4 focuses on the practical application of construction project management principles, specifically addressing the selection and management of subcontractors for a commercial and residential development project. The assessment begins with a review of collected documents, including special conditions of contract, and identifies key considerations for subcontractor selection. The solution then proceeds to evaluate subcontractor tenders for concrete and formwork packages, comparing costs and assessing the strengths and weaknesses of each bidder based on the estimator's budget and project requirements. Finally, the assignment includes a subcontractor pre-award interview template, outlining essential questions to gather comprehensive information about potential subcontractors, encompassing their licenses, insurance, payment methods, and quality assurance measures. This comprehensive approach ensures the selection of the most suitable subcontractors and facilitates effective project execution.

Running head: CPCCBC5005A: ASSESSMENT 4 1
CPCCBC5005A: Assessment 4
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CPCCBC5005A: Assessment 4
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CPCCBC5005A: ASSESSMENT 4 2
Part 1: Review of the Collected Documents and Identification of Subcontractors
c. List of Special Conditions of Contract
The special conditions of contract refers to the additional conditions that may result into deletion,
amendment or additions of clauses in the general contract as agreed between the contractor and
the sub-contractors. The Australian Standards AS4901 (2016), provides the general subcontract
conditions for use in the construction projects. It is important to note that such special conditions
are provided to enhance the general flow and quality of work. The proposed construction of the
commercial and residential developments must be completed within schedule, therefore the
following special conditions are applied.
1. Work Health and Safety
All the sub-contractors, when carrying out any form of work under the contract must ensure
compliance with the following:
I. That all the workers and professionals are adequately informed of the work safety
practices.
II. All the work health and safety policies are complied with as provided in the Work Health
and Safety Act (2015).
2. Industrial relations-Construction Industry Training Levy
The Sub-contractor shall comply with the Construction Industry Training Fund Act (1993), to
provide payments on levies stipulated by the Act with reference to the work being undertaken.
Evidence must be provided on compliance with or exception from the Act prior to the
commencement of the contracted work under the contract.
Part 1: Review of the Collected Documents and Identification of Subcontractors
c. List of Special Conditions of Contract
The special conditions of contract refers to the additional conditions that may result into deletion,
amendment or additions of clauses in the general contract as agreed between the contractor and
the sub-contractors. The Australian Standards AS4901 (2016), provides the general subcontract
conditions for use in the construction projects. It is important to note that such special conditions
are provided to enhance the general flow and quality of work. The proposed construction of the
commercial and residential developments must be completed within schedule, therefore the
following special conditions are applied.
1. Work Health and Safety
All the sub-contractors, when carrying out any form of work under the contract must ensure
compliance with the following:
I. That all the workers and professionals are adequately informed of the work safety
practices.
II. All the work health and safety policies are complied with as provided in the Work Health
and Safety Act (2015).
2. Industrial relations-Construction Industry Training Levy
The Sub-contractor shall comply with the Construction Industry Training Fund Act (1993), to
provide payments on levies stipulated by the Act with reference to the work being undertaken.
Evidence must be provided on compliance with or exception from the Act prior to the
commencement of the contracted work under the contract.

CPCCBC5005A: ASSESSMENT 4 3
3. Quality Assurance
The Contractors must prepare and submit a Quality Plan that is specific to the contract within 28
days of the Date of Acceptance of the Tender. The contractor is required to state how he/she is
going to ensure the quality of materials, works and services based on the contract requirements
with reference to standard documents only, and is readily available to the Principals. The Quality
Plan may be assessed during the progress of the work by the quality team.
4. Insurance- The insurance of employees
This condition demands that sub-contractors comply with the Workers Rehabilitation and
Compensation Act 1998 (DFEEST, 2016), with reference to the employees provided in the
contract such that:
I. The registration of the employees with the Work-cover Corporation must be facilitated
II. The sub-contractors must facilitate any levy payments required by the Work-cover
Corporation as stipulated in the Act
III. The sub-contractors must submit monthly payments to the Work-cover with reference to
the Acts’s requirements.
IV. The subcontractors must facilitate payments of any injured worker based on the Act
A proof must be provided by the Contractor on the compliance with the above conditions by sub-
contractors on request by the project’s Superintendent.
5. Novation or assignment of subcontract
3. Quality Assurance
The Contractors must prepare and submit a Quality Plan that is specific to the contract within 28
days of the Date of Acceptance of the Tender. The contractor is required to state how he/she is
going to ensure the quality of materials, works and services based on the contract requirements
with reference to standard documents only, and is readily available to the Principals. The Quality
Plan may be assessed during the progress of the work by the quality team.
4. Insurance- The insurance of employees
This condition demands that sub-contractors comply with the Workers Rehabilitation and
Compensation Act 1998 (DFEEST, 2016), with reference to the employees provided in the
contract such that:
I. The registration of the employees with the Work-cover Corporation must be facilitated
II. The sub-contractors must facilitate any levy payments required by the Work-cover
Corporation as stipulated in the Act
III. The sub-contractors must submit monthly payments to the Work-cover with reference to
the Acts’s requirements.
IV. The subcontractors must facilitate payments of any injured worker based on the Act
A proof must be provided by the Contractor on the compliance with the above conditions by sub-
contractors on request by the project’s Superintendent.
5. Novation or assignment of subcontract
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CPCCBC5005A: ASSESSMENT 4 4
The Contractor shall not without the written approval of the Superintendent, which approval
shall not be unreasonably withheld, subcontract or allow a subcontractor to assign or subcontract
any of the work under the Contract.
The Contractor shall provide sufficient reasons for the termination of a sub-contract with
notifications to the Superintendent as early as possible. In the event that a Nominated
Subcontractor abandons a subcontract or is terminated, the Superintendent proceeds to appoint
anther Nominated Sub-contractor to complete the contract or job. The contractor shall have the
right to decide to complete the work without the use of another Nominated Sub-contractor upon
notification of the Superintendent.
Part 2: Select Subcontractors
The selection of the best sub-contractor is important for the successful completion of
construction projects within schedules and costs at the best quality (El-khalek, 2019). A number
of factors need to be considered during the selection of such subcontractors including costs,
quality, safety, the staff’s behavior and experience, tender quality and the risk management
strategies by the subcontractors (Marzouk, 2013). However, having sub-contractors with past
experience, only the comparison of the tender prices is important for evaluation and subsequent
selection.
Looking at the Strathfield Apartment project, the four companies with good working past
experience have submitted tenders for the Concrete and Formwork subcontracts, therefore, the
evaluation will be made through the comparison with estimated budget prepared by the quantity
surveyors.
The Contractor shall not without the written approval of the Superintendent, which approval
shall not be unreasonably withheld, subcontract or allow a subcontractor to assign or subcontract
any of the work under the Contract.
The Contractor shall provide sufficient reasons for the termination of a sub-contract with
notifications to the Superintendent as early as possible. In the event that a Nominated
Subcontractor abandons a subcontract or is terminated, the Superintendent proceeds to appoint
anther Nominated Sub-contractor to complete the contract or job. The contractor shall have the
right to decide to complete the work without the use of another Nominated Sub-contractor upon
notification of the Superintendent.
Part 2: Select Subcontractors
The selection of the best sub-contractor is important for the successful completion of
construction projects within schedules and costs at the best quality (El-khalek, 2019). A number
of factors need to be considered during the selection of such subcontractors including costs,
quality, safety, the staff’s behavior and experience, tender quality and the risk management
strategies by the subcontractors (Marzouk, 2013). However, having sub-contractors with past
experience, only the comparison of the tender prices is important for evaluation and subsequent
selection.
Looking at the Strathfield Apartment project, the four companies with good working past
experience have submitted tenders for the Concrete and Formwork subcontracts, therefore, the
evaluation will be made through the comparison with estimated budget prepared by the quantity
surveyors.
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CPCCBC5005A: ASSESSMENT 4 5
Having the estimator’s tender budget with Dincel reinforced concrete wall system and a
liquidated damages on the project as $4,500 per day and Builder's site O/H costs are $2,000 per
day. Also, assuming that all activities are programmed on the critical path therefore no chances
of delay of other activities.
ESTIMATOR'S TENDER BUDGET INFORMATION:
Concreter Package No.1
Total concrete volume (excluding waste) =527m3
Basement slabs beams and columns =305m3
Ramps between basement slabs = 57m3
Dincel reinforced concrete walls =165m3
Total contact surface areas:
Slab on ground =684m2
Suspended slabs and ramps from basement to level 1 =1,310m2
Formwork and falsework to suspended slabs, beams & columns = 1,310m2 x $100/m2
=$131,000
S&P reinforcement = 150kgs/m3 x 527m3 x $2,200/tonne – takes 15 days =$173,910
Supply conc. for slabs beams col. walls incl. waste =527m3 x $205/m3 =$108,035
Cost to place conc. to slabs, beams, columns & walls = 527m3 x $35/m3 =$18,445
Having the estimator’s tender budget with Dincel reinforced concrete wall system and a
liquidated damages on the project as $4,500 per day and Builder's site O/H costs are $2,000 per
day. Also, assuming that all activities are programmed on the critical path therefore no chances
of delay of other activities.
ESTIMATOR'S TENDER BUDGET INFORMATION:
Concreter Package No.1
Total concrete volume (excluding waste) =527m3
Basement slabs beams and columns =305m3
Ramps between basement slabs = 57m3
Dincel reinforced concrete walls =165m3
Total contact surface areas:
Slab on ground =684m2
Suspended slabs and ramps from basement to level 1 =1,310m2
Formwork and falsework to suspended slabs, beams & columns = 1,310m2 x $100/m2
=$131,000
S&P reinforcement = 150kgs/m3 x 527m3 x $2,200/tonne – takes 15 days =$173,910
Supply conc. for slabs beams col. walls incl. waste =527m3 x $205/m3 =$108,035
Cost to place conc. to slabs, beams, columns & walls = 527m3 x $35/m3 =$18,445

CPCCBC5005A: ASSESSMENT 4 6
Cost to finish slabs and ramps 1930m2 x $5.85/m2 =$11,302
Supply concrete pump/s (12 setups i.e. 12 x $1,000) =$12,000
Allowance for concrete testing =$3,300
Termite control = 684m2 @ $5.20/m2 =$3,557
S&P 50mm sand blinding = 684m2 @ $3.80/m2 =$2,600
Supply 50mm sand blinding = 684m2 @ $1.80/m2 =see above
Supply ‘Fortecon’ membrane = 684m2 @ $1.97/m2 =$1,347
Fortecon’ membrane /m2 place only = 684m2 @ $5.90 =$4,036
Chemically cure slab = 1,368m2 @ $2.65/m2 =$3,625
Allowance for rubbish removal =$2,000
Hoisting allowance for concreter/formwork/steel fixers =$6,000
Sheds allowance as supplied by Builder =$2,000
-------------------------------------------------------------------------------------------------------------------
Total Concreter trade budget =$483,157
12 concrete pump setups will be required to complete the works.
Normal working day = 7am to 3.20pm = 8.33 hrs + 0.33hrs = 8.66 hrs per day
Total time for the task = 65 working days
Cost to finish slabs and ramps 1930m2 x $5.85/m2 =$11,302
Supply concrete pump/s (12 setups i.e. 12 x $1,000) =$12,000
Allowance for concrete testing =$3,300
Termite control = 684m2 @ $5.20/m2 =$3,557
S&P 50mm sand blinding = 684m2 @ $3.80/m2 =$2,600
Supply 50mm sand blinding = 684m2 @ $1.80/m2 =see above
Supply ‘Fortecon’ membrane = 684m2 @ $1.97/m2 =$1,347
Fortecon’ membrane /m2 place only = 684m2 @ $5.90 =$4,036
Chemically cure slab = 1,368m2 @ $2.65/m2 =$3,625
Allowance for rubbish removal =$2,000
Hoisting allowance for concreter/formwork/steel fixers =$6,000
Sheds allowance as supplied by Builder =$2,000
-------------------------------------------------------------------------------------------------------------------
Total Concreter trade budget =$483,157
12 concrete pump setups will be required to complete the works.
Normal working day = 7am to 3.20pm = 8.33 hrs + 0.33hrs = 8.66 hrs per day
Total time for the task = 65 working days
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CPCCBC5005A: ASSESSMENT 4 7
Ultimate Concrete Services Pty Ltd
Concrete works basement to Level 1 = $305,520
All necessary formwork requirements = $92 /m2
Formwork and falsework to suspended slabs, beams & columns = 1,310m2 x $92/m2
= $120,520
Day labour rate is $68 /hr normal hours.
Estimate time to complete is 70 working days.
Total labour costs to completion = 8.66 hrs/day x $68 /hr x 70 days = $41,222
All concrete pumping; up to eight (8) setups, additional setups $750 each
Additional Pumps =12-8 = 4 x $750 = $3,000
Total Concreter Trade =$470,262
Excluded
Chemically cure slab = 1,368m2 @ $2.65/m2 =$3,625
Hoisting allowance for concreter/formwork/steel fixers =$6,000
Total = $9,625
Professional Formwork and Concreting Services Pty Ltd
Concrete testing = $8 / m3 x 527 m3 = $ 4216
Ultimate Concrete Services Pty Ltd
Concrete works basement to Level 1 = $305,520
All necessary formwork requirements = $92 /m2
Formwork and falsework to suspended slabs, beams & columns = 1,310m2 x $92/m2
= $120,520
Day labour rate is $68 /hr normal hours.
Estimate time to complete is 70 working days.
Total labour costs to completion = 8.66 hrs/day x $68 /hr x 70 days = $41,222
All concrete pumping; up to eight (8) setups, additional setups $750 each
Additional Pumps =12-8 = 4 x $750 = $3,000
Total Concreter Trade =$470,262
Excluded
Chemically cure slab = 1,368m2 @ $2.65/m2 =$3,625
Hoisting allowance for concreter/formwork/steel fixers =$6,000
Total = $9,625
Professional Formwork and Concreting Services Pty Ltd
Concrete testing = $8 / m3 x 527 m3 = $ 4216
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CPCCBC5005A: ASSESSMENT 4 8
Place only and finish concrete slabs = $48/m3 x 527m3 = $ 25,296
Concrete pump setups = $500 / setup x 12 = $ 6000
Termite control $6.00 /m2 x 684 m2 = $4104
50mm sand blinding (supply and place) = $4.30 /m2 x 684m2 =$ 2942
Place only membrane, supplied by others = $7.00 /m2=above
Supply, place and strip formwork = $110.00 /m2 x 1310 m2 = $ 144,100
Day labour rate is $70 /hr normal hours.
Estimate time to complete is 53 working days.
Total labour costs to completion = 8.66 hrs/day x $70 /hr x 53 days = $ 32,129
Total Concreter Trade =$ 214,683
Excluded
S&P reinforcement = 150kgs/m3 x 527m3 x $2,200/tonne – takes 15 days =$173,910
Supply conc. for slabs beams col. walls incl. waste =527m3 x $205/m3 =$108,035
Chemically cure slab = 1,368m2 @ $2.65/m2 =$3,625
Total = 285,570
Place only and finish concrete slabs = $48/m3 x 527m3 = $ 25,296
Concrete pump setups = $500 / setup x 12 = $ 6000
Termite control $6.00 /m2 x 684 m2 = $4104
50mm sand blinding (supply and place) = $4.30 /m2 x 684m2 =$ 2942
Place only membrane, supplied by others = $7.00 /m2=above
Supply, place and strip formwork = $110.00 /m2 x 1310 m2 = $ 144,100
Day labour rate is $70 /hr normal hours.
Estimate time to complete is 53 working days.
Total labour costs to completion = 8.66 hrs/day x $70 /hr x 53 days = $ 32,129
Total Concreter Trade =$ 214,683
Excluded
S&P reinforcement = 150kgs/m3 x 527m3 x $2,200/tonne – takes 15 days =$173,910
Supply conc. for slabs beams col. walls incl. waste =527m3 x $205/m3 =$108,035
Chemically cure slab = 1,368m2 @ $2.65/m2 =$3,625
Total = 285,570

CPCCBC5005A: ASSESSMENT 4 9
Quality Concreting Pty Ltd
All formwork as detailed to basement slabs beams columns and ramps =$115,800
All reinforcement and concreting works up to level 1 slab =$305,400
We have included eight (8) setups additional setups @ $750 each.
Additional pumps = 12-8 = 4 x $750 = 3,000
Day labour rate is $75 /hr normal hours
Estimate time to complete is 70 working days.
Total labour costs to completion = 8.66 hrs/day x $75 /hr x 70 days = $45,465
Total Concreter Trade =$ 469,665
Excluded
Allowance for concrete testing =$3,300
Termite control = 684m2 @ $5.20/m2 =$3,557
S&P 50mm sand blinding = 684m2 @ $3.80/m2 =$2,600
Fortecon’ membrane /m2 place only = 684m2 @ $5.90 =$4,036
Chemically cure slab = 1,368m2 @ $2.65/m2 =$3,625
Allowance for rubbish removal =$2,000
Hoisting allowance for concreter/formwork/steel fixers =$6,000
Quality Concreting Pty Ltd
All formwork as detailed to basement slabs beams columns and ramps =$115,800
All reinforcement and concreting works up to level 1 slab =$305,400
We have included eight (8) setups additional setups @ $750 each.
Additional pumps = 12-8 = 4 x $750 = 3,000
Day labour rate is $75 /hr normal hours
Estimate time to complete is 70 working days.
Total labour costs to completion = 8.66 hrs/day x $75 /hr x 70 days = $45,465
Total Concreter Trade =$ 469,665
Excluded
Allowance for concrete testing =$3,300
Termite control = 684m2 @ $5.20/m2 =$3,557
S&P 50mm sand blinding = 684m2 @ $3.80/m2 =$2,600
Fortecon’ membrane /m2 place only = 684m2 @ $5.90 =$4,036
Chemically cure slab = 1,368m2 @ $2.65/m2 =$3,625
Allowance for rubbish removal =$2,000
Hoisting allowance for concreter/formwork/steel fixers =$6,000
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CPCCBC5005A: ASSESSMENT 4 10
Total = $25,118
P & W Concreting Services Pty Ltd
Supply, place and strip class 2 suspended formwork = $95/m2 x1310m2 =$124,450
Steel reinforcements to slabs beams and walls = $2,200/t x 150kgs/m3 x 527m3 = $173,910
Supply, place and finish 32 MPA concrete =$198/m3 x 527m3 = $104,346
Day labour rate is $67 /hr normal hours
Estimate time to complete is 72 working days.
Working for 8hrs
Total labour costs to completion = 8 hrs/day x $67 /hr x 72 days = $38,592
Total Concreter Trade =$ 441,658
Excluded
Supply ‘Fortecon’ membrane = 684m2 @ $1.97/m2 =$1,347
Allowance for concrete testing =$3,300
Chemically cure slab = 1,368m2 @ $2.65/m2 =$3,625
Allowance for rubbish removal =$2,000
Hoisting allowance for concreter/formwork/steel fixers =$6,000
No weekend work or work after 4pm.
Excluded time = 0.67hrs x 67 x 72 = $3233
Total = $25,118
P & W Concreting Services Pty Ltd
Supply, place and strip class 2 suspended formwork = $95/m2 x1310m2 =$124,450
Steel reinforcements to slabs beams and walls = $2,200/t x 150kgs/m3 x 527m3 = $173,910
Supply, place and finish 32 MPA concrete =$198/m3 x 527m3 = $104,346
Day labour rate is $67 /hr normal hours
Estimate time to complete is 72 working days.
Working for 8hrs
Total labour costs to completion = 8 hrs/day x $67 /hr x 72 days = $38,592
Total Concreter Trade =$ 441,658
Excluded
Supply ‘Fortecon’ membrane = 684m2 @ $1.97/m2 =$1,347
Allowance for concrete testing =$3,300
Chemically cure slab = 1,368m2 @ $2.65/m2 =$3,625
Allowance for rubbish removal =$2,000
Hoisting allowance for concreter/formwork/steel fixers =$6,000
No weekend work or work after 4pm.
Excluded time = 0.67hrs x 67 x 72 = $3233
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CPCCBC5005A: ASSESSMENT 4 11
Total = $19,505
Looking at the budget evaluation of each sub-contractors, the Ultimate Concrete Services Pty Ltd
has the highest budget of estimate of $470,262 but lower than the builder’s estimate while
Professional Formwork and Concreting Services Pty Ltd has the lowest budget estimate of $
214,683.It is also important to note that Quality Concreting Pty Ltd and P & W Concreting
Services Pty Ltd have their budgets closer to the builder’s estimate but they have excluded a lot
of contract items from their budgets. Therefore, the ranking of the sub-contractors are as follows:
1. Ultimate Concrete Services Pty Ltd =$470,262
2. Quality Concreting Pty Ltd = $ 469,665
3. P & W Concreting Services Pty Ltd =$ 441,658
4. Professional Formwork and Concreting Services Pty Ltd=$ 214,683
Ultimate Concrete Services Pty Ltd is very close to the estimate provided by the builder and has
omitted the least items from the provided estimate for trade concrete works ($483,157) ad is
therefore chosen for award of the contract. The excluded items amounts to $9,625 and these
exclusions and the time of completion of the project can be agreed upon between the contractor
and the sub-contractor through the special conditions of contract. The budget can be raised to
accommodate more resources for the completion of the task within the stipulated 65 days.
Total = $19,505
Looking at the budget evaluation of each sub-contractors, the Ultimate Concrete Services Pty Ltd
has the highest budget of estimate of $470,262 but lower than the builder’s estimate while
Professional Formwork and Concreting Services Pty Ltd has the lowest budget estimate of $
214,683.It is also important to note that Quality Concreting Pty Ltd and P & W Concreting
Services Pty Ltd have their budgets closer to the builder’s estimate but they have excluded a lot
of contract items from their budgets. Therefore, the ranking of the sub-contractors are as follows:
1. Ultimate Concrete Services Pty Ltd =$470,262
2. Quality Concreting Pty Ltd = $ 469,665
3. P & W Concreting Services Pty Ltd =$ 441,658
4. Professional Formwork and Concreting Services Pty Ltd=$ 214,683
Ultimate Concrete Services Pty Ltd is very close to the estimate provided by the builder and has
omitted the least items from the provided estimate for trade concrete works ($483,157) ad is
therefore chosen for award of the contract. The excluded items amounts to $9,625 and these
exclusions and the time of completion of the project can be agreed upon between the contractor
and the sub-contractor through the special conditions of contract. The budget can be raised to
accommodate more resources for the completion of the task within the stipulated 65 days.

CPCCBC5005A: ASSESSMENT 4 12
Part 3: Manage Subcontractors
Subcontractor Pre-Award Interview Template
As set of eighteen questions have been identified for the purpose of conducting interviews to the
tenderers especially the lowest two. The questions sought to acquire a wide range of information
including general operations of the company to any problems that the companies may be
experiencing.
COMPANY NAME:
No
.
Question Response Comment
1 Do you have any special
conditions of contract that you
would like to be considered?
2 What types of licenses does the
company have? What are the
numbers
3 What type of worker
compensation coverage does the
company have for the
employees?
4 What kind of insurance the
company have such as
Part 3: Manage Subcontractors
Subcontractor Pre-Award Interview Template
As set of eighteen questions have been identified for the purpose of conducting interviews to the
tenderers especially the lowest two. The questions sought to acquire a wide range of information
including general operations of the company to any problems that the companies may be
experiencing.
COMPANY NAME:
No
.
Question Response Comment
1 Do you have any special
conditions of contract that you
would like to be considered?
2 What types of licenses does the
company have? What are the
numbers
3 What type of worker
compensation coverage does the
company have for the
employees?
4 What kind of insurance the
company have such as
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