Construction Law custom essay

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SSUD 12-308

Project Contract Administration

Assignment 1

Due: Week 5
Wednesday 13th June 2012

Assignment 1

Due date: To be received no later than 4:00pm, Wednesday 13th June 2012 (Week 5).

Answer: All five questions must be answered.

Select one of the contracts being studied and answer all questions in terms of that contract. Note the contract you have chosen in the answer.

Where necessary, invent details of the project being constructed!

Marking: 25% of subject assessment.
All questions are of equal weighting.

Format: Question 1 is a brief essay (not more than one page in length).

A formal letter or notice to the party indicated for questions 1.2-5.

Be sure to describe clearly the issue requiring attention and to cite:

* the contractual basis for your letter or notice;
* the purpose of the letter or notice;
* the time frame within which an action must be taken in response; and
* the consequences of failure to take such action.

Length: No greater than is absolutely necessary to convey the intended message in accordance with the requirements of the contract.

Comments: Question 1.1 is based on part of a previous exam question.
Question 1.2 is based on Topic 1.
Question 1.3 is based on Topic 2.
Question 1.4 is based on Topics 3 and 4.
Question 1.5 is based on Topic 4.

Question 1.1 (9%)

Describe and discuss the contractual nature, functions, and authority of:

a) Contract administrator (6 marks)

b) Contractor’s representatives (3 marks).

Question 1.2 (4%)

After commencing excavation work at the site, the contractor unexpectedly discovers areas of hard rock which had not been disclosed by soil tests. Dealing with this rock will clearly cause the contractor to incur additional consequential costs and will equally clearly cause delay to the project.

Write the contractor’s letter to the contract administrator notifying the circumstances and their anticipated consequences for the project. Request any action that the contractor may require from the contract administrator.

Question 1.3 (4%)

Under the terms of the contract, the contractor is required to effect insurance of the works and of public liability. The date for giving the contractor possession of the site has passed, but while the contractor asserts that the insurances have indeed been effected, it has not provided evidence that this is so.

Write the contract administrator’s letter to the contractor, informing it of the contractual consequences of its failure to comply with the contract.

Question 1.4 (4%)

The contract administrator has inspected the works and has reason to believe that the reinforcement in a reinforced concrete footing which has been backfilled may not be as required by the contract.

Write the contract administrator’s letter to the contractor, directing it to open up the work for inspection. Inform the contractor of the contractual consequences of the direction and of any defective work that may be revealed by the inspection.

Question 1.5 (4%)

The contractor has presented a progress certificate to the owner for payment. The time for payment has elapsed, but the contractor has not received payment, despite assurances that the owner’s cheque was ‘in the mail’.

Write the contractor’s notice to the owner, demanding immediate payment. Inform the owner of the contractual consequences of continued non-payment.

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