AILA & AILDM PROJECT MANAGER PROCESS - AS 4902 contract ISSUE TWO administration Risk CLIENT 1. CONTRACT BASICS problem 2. PROJECT IMPLEMENTATION PROJECT MANAGER BASICS 3. CONTRACT = CONTRACTOR SUPERINTENDENT ADMINISTRATION STEP-BY-STEP CONSULTANT SUBBIE 4. MONEY & TIME 5. PROFESSIONALISM CONSULTANT SUBBIE SUBBIE CONSULTANT SUBBIE CONSULTANT SUBBIE SUBBIE INSURANCE & RISK • LAs & LDs sometimes engaged in PROJECT MANAGER role = POTENTIAL PROBLEM because… • PROJECT MANAGER responsible for all CONSULTANT and CONTRACTOR risk and • Risk only partly devolved to others GRAHAM FLETCHER 20
AILA & AILDM PROJECT MANAGER PROCESS - AS 4902 contract ISSUE TWO administration Risk 1. CONTRACT BASICS problem 2. PROJECT IMPLEMENTATION BASICS HOW TO SOLVE THIS ISSUE 3. CONTRACT • Advise the client to hire each of the parties directly, ADMINISTRATION based on advice from you STEP-BY-STEP 4. MONEY & TIME • This changes the role to being one of the CONSULTANTS 5. PROFESSIONALISM … see next slide • But be carefully that your contract with the client allows you to do this GRAHAM FLETCHER 21
AILA & AILDM PROJECT MANAGER contract administration 1. CONTRACT BASICS PROJECT 2. PROJECT MANAGER IMPLEMENTATION BASICS 3. CONTRACT CLIENT CONSULTANT CONTRACTOR ADMINISTRATION STEP-BY-STEP CONSULTANT SUBBIE 4. MONEY & TIME 5. PROFESSIONALISM CONSULTANT SUBBIE SUBBIE CONSULTANT SUBBIE CONSULTANT SUBBIE SUBBIE PROJECT MANAGER • Advises CLIENT on all aspects of project • Be clear about your role if the CLIENT has also hired a SUPERINTENDENT GRAHAM FLETCHER 22
AILA & AILDM CONSTRUCTION MANAGER contract administration 1. CONTRACT BASICS CONSTRUCTION 2. PROJECT MANAGER IMPLEMENTATION BASICS 3. CONTRACT CLIENT CONSULTANT CONTRACTOR ADMINISTRATION STEP-BY-STEP CONSULTANT SUBBIE 4. MONEY & TIME 5. PROFESSIONALISM CONSULTANT CONTRACTOR SUBBIE CONSULTANT SUBBIE SUBBIE CONSULTANT CONTRACTOR CONSTRUCTION MANAGER • When there isn’t a MAIN CONTRACTOR • Manages the direct construction contracts with CLIENT • Control over construction time, money & quality • Used for fast-track projects GRAHAM FLETCHER 23
AILA & AILDM CONSTRUCTION MANAGER contract administration 1. CONTRACT BASICS CONSTRUCTION 2. PROJECT MANAGER IMPLEMENTATION BASICS 3. CONTRACT CLIENT CONSULTANT CONTRACTOR ADMINISTRATION STEP-BY-STEP CONSULTANT SUBBIE 4. MONEY & TIME 5. PROFESSIONALISM CONSULTANT CONTRACTOR SUBBIE CONSULTANT SUBBIE SUBBIE CONSULTANT CONTRACTOR CONSTRUCTION MANAGER • Forms 3-way partnership with CLIENT & MAIN CONSULTANT (perhaps also with MAIN CONTRACTOR) • Advises on construction GRAHAM FLETCHER 24
AILA & AILDM DEVELOPER, GOVERNMENT contract Option 1 administration 1. CONTRACT BASICS 2. PROJECT IMPLEMENTATION PROJECT / CONSTRUCTION BASICS 3. CONTRACT MANAGERS CONTRACTOR ADMINISTRATION STEP-BY-STEP CONSULTANT CONTRACTOR SUBBIE 4. MONEY & TIME 5. PROFESSIONALISM CONSULTANT CONTRACTOR SUBBIE CONSULTANT CONTRACTOR CONSULTANT SUBBIE SUBBIE DEVELOPER or GOVERNMENT both work this way • CLIENT employs DESIGN &/or CONSTRUCT in-house • Hires external CONSULTANTS if needed • Hires external CONTRACTORS if needed GRAHAM FLETCHER 25
AILA & AILDM DEVELOPER, GOVERNMENT contract Option 2 administration CLIENT This is the 1. CONTRACT BASICS PPP contract 2. PROJECT IMPLEMENTATION PROJECT / CONSTRUCTION BASICS 3. CONTRACT MANAGERS CONTRACTOR ADMINISTRATION STEP-BY-STEP CONSULTANT CONTRACTOR SUBBIE 4. MONEY & TIME 5. PROFESSIONALISM CONSULTANT CONTRACTOR SUBBIE CONSULTANT CONTRACTOR CONSULTANT SUBBIE SUBBIE GOVERNMENT contracts with DEVELOPER • Public Private Partnerships (PPPs) • Shared risks & rewards GRAHAM FLETCHER 26
AILA & AILDM contract LANDSCAPE CONSULTANT’S administration CONTRACTUAL 1. CONTRACT BASICS RESPONSIBILITIES 2. PROJECT IMPLEMENTATION BASICS TYPE 1 3. CONTRACT • Professional advice to contracted party as ADMINISTRATION STEP-BY-STEP • MAIN CONSULTANT or 4. MONEY & TIME • PROJECT MANAGER (including as ‘CONTRACTOR’ or 5. PROFESSIONALISM ‘SUPERINTENDENT’ in AS 4902) or • SPECIALIST CONSULTANT • Responsible for that professional advice TYPE 2 • Professional advice to employer • Responsible for that professional advice GRAHAM FLETCHER 27
AILA & AILDM contract TRADITIONAL STAGES administration 1. CONTRACT BASICS 2. PROJECT PROJECT DESIGN IMPLEMENTATION BASICS 3. CONTRACT ADMINISTRATION STEP-BY-STEP PROJECT DOCUMENTATION 4. MONEY & TIME 5. PROFESSIONALISM PROJECT IMPLEMENTATION GRAHAM FLETCHER 28
AILA & AILDM contract TRADITIONAL STAGES administration 1. CONTRACT BASICS 2. PROJECT PROJECT DESIGN Often this is IMPLEMENTATION BASICS ONE CONTRACT 3. CONTRACT = DESIGN & ADMINISTRATION DOCUMENTATION STEP-BY-STEP PROJECT DOCUMENTATION 4. MONEY & TIME 5. PROFESSIONALISM PROJECT IMPLEMENTATION But there may be more earlier stages of PLANNING + PRE-DESIGN GRAHAM FLETCHER 29
AILA & AILDM contract TRADITIONAL STAGES administration 1. CONTRACT BASICS 2. PROJECT PROJECT DESIGN IMPLEMENTATION BASICS 3. CONTRACT ADMINISTRATION STEP-BY-STEP PROJECT DOCUMENTATION 4. MONEY & TIME 5. PROFESSIONALISM Range of PROJECT IMPLEMENTATION contract options Some contract options: 1. SAME CONTRACT as design & documentation 2. SEPARATE CONTRACT 3. NOVATED CONTRACT GRAHAM FLETCHER 30
AILA & AILDM contract TRADITIONAL STAGES administration 1. CONTRACT BASICS 2. PROJECT PROJECT DESIGN IMPLEMENTATION BASICS 3. CONTRACT ADMINISTRATION STEP-BY-STEP PROJECT DOCUMENTATION 4. MONEY & TIME 5. PROFESSIONALISM PROJECT IMPLEMENTATION PROJECT IMPLEMENTATION • TENDER PHASE • CONTRACT ADMINISTRATION • CONTRACT SUPERINTENDENCE GRAHAM FLETCHER 31
AILA & AILDM PROJECT IMPLEMENTATION contract administration Tender Phase 1. CONTRACT BASICS 2. PROJECT • Selection of CONTRACTOR IMPLEMENTATION BASICS 3. CONTRACT ADMINISTRATION STEP-BY-STEP 4. MONEY & TIME 5. PROFESSIONALISM GRAHAM FLETCHER 32
AILA & AILDM PROJECT IMPLEMENTATION contract administration Tender Phase 1. CONTRACT BASICS 2. PROJECT • Selection of CONTRACTOR IMPLEMENTATION BASICS Contract Administration 3. CONTRACT ADMINISTRATION • Contract LEGAL compliance STEP-BY-STEP • Contract TECHNICAL compliance 4. MONEY & TIME • SATISFACTORY WORK 5. PROFESSIONALISM • Contract procedures – MONEY • Contract procedures – TIME GRAHAM FLETCHER 33
AILA & AILDM PROJECT IMPLEMENTATION contract administration Tender Phase 1. CONTRACT BASICS 2. PROJECT • Selection of CONTRACTOR IMPLEMENTATION BASICS Contract Administration 3. CONTRACT ADMINISTRATION • Contract LEGAL compliance STEP-BY-STEP • Contract TECHNICAL compliance 4. MONEY & TIME • SATISFACTORY WORK 5. PROFESSIONALISM • Contract procedures – MONEY • Contract procedures – TIME Contract Superintendence By SPECIALIST consultant • Contract TECHNICAL compliance • SATISFACTORY WORK …but terms are often misused GRAHAM FLETCHER 34
AILA & AILDM Project Implementation when contract • LANDSCAPE CONSULTANT is MAIN CONSULTANT administration • LANDSCAPE CONTRACTOR is MAIN CONTRACTOR 1. CONTRACT BASICS TENDER PHASE 2. PROJECT IMPLEMENTATION CONTRACT ADMINISTRATION BASICS CONTRACT SUPERINTENDENCE 3. CONTRACT ADMINISTRATION STEP-BY-STEP 4. MONEY & TIME 5. PROFESSIONALISM LANDSCAPE CONTRACTOR CLIENT LANDSCAPE CONSULTANT SUBBIE CONSULTANT SUBBIE CONSULTANT SUBBIE CONSULTANT SUBBIE CONSULTANT SUBBIE SUBBIE GRAHAM FLETCHER 35
AILA & AILDM Project Implementation when contract • LANDSCAPE CONSULTANT is SPECIALIST CONSULTANT administration • LANDSCAPE CONTRACTOR is SUB-CONTRACTOR 1. CONTRACT BASICS 2. PROJECT IMPLEMENTATION BASICS 3. CONTRACT ADMINISTRATION STEP-BY-STEP DIRECT COMMUNICATION CAN’T EXIST 4. MONEY & TIME between the parties in these two contracts 5. PROFESSIONALISM CONSULTANT CLIENT CONTRACTOR LANDSCAPE SUBBIE CONSULTANT SUBBIE LANDSCAPE CONSULTANT CONTRACTOR CONSULTANT SUBBIE CONSULTANT SUBBIE SUBBIE GRAHAM FLETCHER 36
AILA & AILDM Project Implementation when contract • LANDSCAPE CONSULTANT is SPECIALIST CONSULTANT administration • LANDSCAPE CONTRACTOR is SUB-CONTRACTOR 1. CONTRACT BASICS 2. PROJECT IMPLEMENTATION BASICS 3. CONTRACT ADMINISTRATION STEP-BY-STEP ALL COMMUNICATION 4. MONEY & TIME is via this contract 5. PROFESSIONALISM CONSULTANT CLIENT CONTRACTOR LANDSCAPE SUBBIE CONSULTANT SUBBIE LANDSCAPE CONSULTANT CONTRACTOR CONSULTANT SUBBIE CONSULTANT SUBBIE SUBBIE GRAHAM FLETCHER 37
AILA & AILDM Project Implementation when contract • LANDSCAPE CONSULTANT is SPECIALIST CONSULTANT administration • LANDSCAPE CONTRACTOR is SUB-CONTRACTOR 1. CONTRACT BASICS × TENDER PHASE 2. PROJECT IMPLEMENTATION × CONTRACT ADMINISTRATION BASICS CONTRACT SUPERINTENDENCE 3. CONTRACT ADMINISTRATION STEP-BY-STEP 4. MONEY & TIME 5. PROFESSIONALISM CONSULTANT CLIENT CONTRACTOR LANDSCAPE SUBBIE CONSULTANT SUBBIE LANDSCAPE CONSULTANT CONTRACTOR CONSULTANT SUBBIE CONSULTANT SUBBIE SUBBIE GRAHAM FLETCHER 38
AILA & AILDM contract administration PROJECT 1. CONTRACT BASICS 2. PROJECT IMPLEMENTATION IMPLEMENTATION BASICS 3. CONTRACT BASICS ADMINISTRATION STEP-BY-STEP 4. MONEY & TIME 5. PROFESSIONALISM GRAHAM FLETCHER 39
AILA & AILDM contract Schematic Design Phase – Site Analysis administration Schematic Design Phase – Concept Planning 1. CONTRACT BASICS 2. PROJECT PROJECT DESIGN Design Development Phase IMPLEMENTATION BASICS 3. CONTRACT ADMINISTRATION STEP-BY-STEP 4. MONEY & TIME 5. PROFESSIONALISM GRAHAM FLETCHER 40
AILA & AILDM contract administration 1. CONTRACT BASICS 2. PROJECT PROJECT DESIGN IMPLEMENTATION BASICS 3. CONTRACT ADMINISTRATION • Working Drawings STEP-BY-STEP • Specifications PROJECT DOCUMENTATION 4. MONEY & TIME • Pre-Implementation Phase 5. PROFESSIONALISM This stage describes the documents & standards. We need to look at this briefly before we move on. GRAHAM FLETCHER 41
AILA & AILDM contract PROJECT DOCUMENTATION administration 1. CONTRACT BASICS PROJECT DOCUMENTATION is a detailed description of 2. PROJECT the project to be implemented, prepared by the IMPLEMENTATION CONSULTANT(S). BASICS 3. CONTRACT ADMINISTRATION STEP-BY-STEP 4. MONEY & TIME 5. PROFESSIONALISM GRAHAM FLETCHER 42
AILA & AILDM contract PROJECT DOCUMENTATION administration 1. CONTRACT BASICS PROJECT DOCUMENTATION is a detailed description of 2. PROJECT the project to be implemented, prepared by the IMPLEMENTATION CONSULTANT(S). BASICS 3. CONTRACT Tenderers (potential contractors) prepare their response ADMINISTRATION STEP-BY-STEP to this detailed description, and this response forms the 4. MONEY & TIME basis for the CONTRACT which is administered in the 5. PROFESSIONALISM next stage – PROJECT IMPLEMENTATION. GRAHAM FLETCHER 43
AILA & AILDM contract PROJECT DOCUMENTATION administration 1. CONTRACT BASICS PROJECT DOCUMENTATION is a detailed description of 2. PROJECT the project to be implemented, prepared by the IMPLEMENTATION CONSULTANT(S). BASICS 3. CONTRACT Tenderers (potential contractors) prepare their response ADMINISTRATION STEP-BY-STEP to this detailed description, and this response forms the 4. MONEY & TIME basis for the CONTRACT which is administered in the 5. PROFESSIONALISM next stage – PROJECT IMPLEMENTATION. Almost all detailed descriptions include • The legal requirements • The technical requirements • The standard of expected outcomes GRAHAM FLETCHER 44
AILA & AILDM contract PROJECT DOCUMENTATION administration 1. CONTRACT BASICS LEGAL 2. PROJECT • Inclusion of a standard form of contract IMPLEMENTATION • Specifics for the project, the site, time, etc BASICS • Inclusion of schedules 3. CONTRACT ADMINISTRATION STEP-BY-STEP 4. MONEY & TIME 5. PROFESSIONALISM GRAHAM FLETCHER 45
AILA & AILDM contract PROJECT DOCUMENTATION administration 1. CONTRACT BASICS LEGAL 2. PROJECT IMPLEMENTATION TECHNICAL BASICS • A technical specification, plans, & details 3. CONTRACT ADMINISTRATION STEP-BY-STEP 4. MONEY & TIME 5. PROFESSIONALISM GRAHAM FLETCHER 46
AILA & AILDM contract PROJECT DOCUMENTATION administration 1. CONTRACT BASICS LEGAL 2. PROJECT IMPLEMENTATION TECHNICAL BASICS 2 ways of writing the description 3. CONTRACT 1. TECHNICAL DESCRIPTION of what to do, required ADMINISTRATION STEP-BY-STEP materials, tolerances, etc 4. MONEY & TIME 2. PERFORMANCE DESCRIPTION of the expected 5. PROFESSIONALISM outcomes, finishes, etc Most contracts have TECHNICAL clauses for some types of work & PERFORMANCE clauses for other types. DO NOT describe anything using both TECHNICAL & PERFORMANCE clauses. Examples of these GRAHAM FLETCHER 47
AILA & AILDM contract PROJECT DOCUMENTATION administration 1. CONTRACT BASICS LEGAL 2. PROJECT TECHNICAL IMPLEMENTATION BASICS OUTCOMES 3. CONTRACT Work must be to industry standards ADMINISTRATION STEP-BY-STEP • Standards are described in the contract documents 4. MONEY & TIME (specification, details, etc) 5. PROFESSIONALISM • Listing Australian Standards is not good enough – must be specific; but • All work must be to an acceptable quality (satisfactory) regardless of what is in the contract. GRAHAM FLETCHER 48
AILA & AILDM contract PROJECT DOCUMENTATION administration 1. CONTRACT BASICS LEGAL 2. PROJECT TECHNICAL IMPLEMENTATION BASICS OUTCOMES 3. CONTRACT 3 standard ways of paying for work ADMINISTRATION STEP-BY-STEP 1. For work that is able to be fully specified and 4. MONEY & TIME quantifiable – LUMP SUM price, payable by progress 5. PROFESSIONALISM payments 2. For work that is able to be fully specified but NOT quantifiable – SCHEDULE OF RATES 3. For work that is NOT able to be fully specified – COST PLUS, payable as Lump Sum or Schedule of Rates for labour, and Cost + something for materials Most contracts have at least a little of all 3. GRAHAM FLETCHER 49
AILA & AILDM contract administration 1. CONTRACT BASICS 2. PROJECT PROJECT DESIGN IMPLEMENTATION BASICS 3. CONTRACT ADMINISTRATION • Working Drawings STEP-BY-STEP • Specifications PROJECT DOCUMENTATION 4. MONEY & TIME • Pre-Implementation Phase 5. PROFESSIONALISM GRAHAM FLETCHER 50
AILA & AILDM contract administration 1. CONTRACT BASICS 2. PROJECT PROJECT DESIGN IMPLEMENTATION BASICS 3. CONTRACT ADMINISTRATION STEP-BY-STEP PROJECT DOCUMENTATION 4. MONEY & TIME 5. PROFESSIONALISM Tender Phase PROJECT IMPLEMENTATION Contract Phase Contract Phase includes • Construction • Defects Liability • Plant Establishment GRAHAM FLETCHER 51
AILA & AILDM contract PROJECT IMPLEMENTATION administration MAIN CONSTRUCTION CONTRACT 1. CONTRACT BASICS 2. PROJECT Tender Phase IMPLEMENTATION Contract starts BASICS 3. CONTRACT POSSESSION OF SITE ADMINISTRATION C O N T R A C T STEP-BY-STEP 4. MONEY & TIME 5. PROFESSIONALISM Construction PRACTICAL COMPLETION Defects Liability Period Plant Establishment Period FINAL COMPLETION = Contract ends GRAHAM FLETCHER 52
AILA & AILDM contract PROJECT IMPLEMENTATION administration SUB-CONTRACTS 1. CONTRACT BASICS 2. PROJECT Tender Phase IMPLEMENTATION Contract starts BASICS 3. CONTRACT POSSESSION OF SITE ADMINISTRATION ACCESS TO SITE C O N T R A C T STEP-BY-STEP 4. MONEY & TIME 5. PROFESSIONALISM Construction PRACTICAL COMPLETION SUBSTANTIAL COMPLETION Defects Liability Period Plant Establishment Period (FINAL COMPLETION) = Contract ends GRAHAM FLETCHER 53
AILA & AILDM contract PROJECT IMPLEMENTATION administration CONTRACT ADMINISTRATION 1. CONTRACT BASICS 2. PROJECT IMPLEMENTATION BASICS Authority to take 3. CONTRACT POSSESSION OF SITE ADMINISTRATION POSSESSION STEP-BY-STEP • Contract LEGAL 4. MONEY & TIME Compliance 5. PROFESSIONALISM Construction • Contract Procedures – MONEY & TIME • SUPERINTENDENCE PRACTICAL COMPLETION LEGAL sign off • Contract LEGAL Compliance Defects Liability Period • Contract Procedures – Plant Establishment Period MONEY & TIME • SUPERINTENDENCE FINAL COMPLETION LEGAL sign off GRAHAM FLETCHER 54
AILA & AILDM contract PROJECT IMPLEMENTATION PROJECT IMPLEMENTATION administration SUPERINTENDENCE 1. CONTRACT BASICS 2. PROJECT IMPLEMENTATION BASICS 3. CONTRACT POSSESSION OF SITE ADMINISTRATION STEP-BY-STEP 4. MONEY & TIME Periodic site inspections 5. PROFESSIONALISM • Contract TECHNICAL Construction compliance • SATISFACTORY WORK PRACTICAL COMPLETION DEFECTS list Periodic site inspections Defects Liability Period • Contract TECHNICAL Plant Establishment Period compliance • SATISFACTORY WORK FINAL COMPLETION DEFECTS list GRAHAM FLETCHER 55
AILA & AILDM contract administration 1. CONTRACT BASICS 2. PROJECT CONTRACT IMPLEMENTATION BASICS 3. CONTRACT ADMINISTRATION ADMINISTRATION STEP-BY-STEP STEP-BY-STEP 4. MONEY & TIME 5. PROFESSIONALISM GRAHAM FLETCHER 56
AILA & AILDM contract CONTRACT ADMINISTRATION administration STEP-BY-STEP 1. CONTRACT BASICS AUTHORITY TO TAKE POSSESSION OF SITE 2. PROJECT • All pre-Possession duties done IMPLEMENTATION BASICS • Formal contract signing 3. CONTRACT • Insurances confirmed ADMINISTRATION • Proposed site establishment approved STEP-BY-STEP • Government approvals in place 4. MONEY & TIME • Samples / substitutions approved 5. PROFESSIONALISM • Proposed sub-contractors approved • Meetings, site visits, procedures & forms • Arrangements for contract admin confirmed • Works programme clarified • Work before site meeting confirmed • Representatives identified & contact details GRAHAM FLETCHER 57
AILA & AILDM contract CONTRACT ADMINISTRATION administration STEP-BY-STEP 1. CONTRACT BASICS AUTHORITY TO TAKE POSSESSION OF SITE 2. PROJECT • All pre-Possession duties done IMPLEMENTATION BASICS • Site ready for Possession 3. CONTRACT • Authority from client to start ADMINISTRATION • Site conditions checked & documented STEP-BY-STEP • Survey marks identified 4. MONEY & TIME • Any site discrepancies resolved 5. PROFESSIONALISM GRAHAM FLETCHER 58
AILA & AILDM contract CONTRACT ADMINISTRATION administration STEP-BY-STEP 1. CONTRACT BASICS AUTHORITY TO TAKE POSSESSION OF SITE 2. PROJECT IMPLEMENTATION BASICS POSSESSION OF SITE 3. CONTRACT • Formal notification ADMINISTRATION • Main contractor starts responsibility for site STEP-BY-STEP • Main contractor insures site 4. MONEY & TIME • Everyone has access determined by main 5. PROFESSIONALISM contractor GRAHAM FLETCHER 59
AILA & AILDM contract CONTRACT ADMINISTRATION administration STEP-BY-STEP 1. CONTRACT BASICS AUTHORITY TO TAKE POSSESSION OF SITE 2. PROJECT POSSESSION OF SITE IMPLEMENTATION BASICS 3. CONTRACT SITE INSPECTIONS ADMINISTRATION • Date & time STEP-BY-STEP • Hold points, critical points 4. MONEY & TIME • As per stages in contract 5. PROFESSIONALISM • Those present & who they represent GRAHAM FLETCHER 60
AILA & AILDM contract CONTRACT ADMINISTRATION administration STEP-BY-STEP 1. CONTRACT BASICS AUTHORITY TO TAKE POSSESSION OF SITE 2. PROJECT POSSESSION OF SITE IMPLEMENTATION BASICS 3. CONTRACT SITE INSPECTIONS ADMINISTRATION • Date & time STEP-BY-STEP • Those present & who they represent 4. MONEY & TIME • Walk around site to inspect work progress 5. PROFESSIONALISM See SITE INSTRUCTIONS later GRAHAM FLETCHER 61
AILA & AILDM contract CONTRACT ADMINISTRATION administration STEP-BY-STEP 1. CONTRACT BASICS AUTHORITY TO TAKE POSSESSION OF SITE 2. PROJECT POSSESSION OF SITE IMPLEMENTATION BASICS 3. CONTRACT SITE INSPECTIONS ADMINISTRATION • Date & time STEP-BY-STEP • Those present & who they represent 4. MONEY & TIME • Walk around site to inspect work progress 5. PROFESSIONALISM • Against contract expectations See CONTRACT LEGAL COMPLIANCE later See CONTRACT TECHNICAL COMPLIANCE later GRAHAM FLETCHER 62
AILA & AILDM contract CONTRACT ADMINISTRATION administration STEP-BY-STEP 1. CONTRACT BASICS AUTHORITY TO TAKE POSSESSION OF SITE 2. PROJECT POSSESSION OF SITE IMPLEMENTATION BASICS 3. CONTRACT SITE INSPECTIONS ADMINISTRATION • Date & time STEP-BY-STEP • Those present & who they represent 4. MONEY & TIME • Walk around site to inspect work progress 5. PROFESSIONALISM • Against contract expectations • Against work quality expectations See SATISFACTORY WORK later GRAHAM FLETCHER 63
AILA & AILDM contract CONTRACT ADMINISTRATION administration STEP-BY-STEP 1. CONTRACT BASICS AUTHORITY TO TAKE POSSESSION OF SITE 2. PROJECT POSSESSION OF SITE IMPLEMENTATION BASICS 3. CONTRACT SITE INSPECTIONS ADMINISTRATION • Date & time STEP-BY-STEP • Those present & who they represent 4. MONEY & TIME • Walk around site to inspect work progress 5. PROFESSIONALISM • Against contract expectations • Against work quality expectations • Claims for payment, variations, extensions of time See MONEY & TIME later GRAHAM FLETCHER 64
AILA & AILDM contract CONTRACT ADMINISTRATION administration STEP-BY-STEP 1. CONTRACT BASICS AUTHORITY TO TAKE POSSESSION OF SITE 2. PROJECT POSSESSION OF SITE IMPLEMENTATION BASICS 3. CONTRACT SITE INSPECTIONS ADMINISTRATION • Date & time STEP-BY-STEP • Those present & who they represent 4. MONEY & TIME • Walk around site to inspect work progress 5. PROFESSIONALISM • Claims for payment, variations, extensions of time • Implications for contract • Proposed work before next site inspection GRAHAM FLETCHER 65
AILA & AILDM contract CONTRACT ADMINISTRATION administration STEP-BY-STEP 1. CONTRACT BASICS AUTHORITY TO TAKE POSSESSION OF SITE 2. PROJECT POSSESSION OF SITE IMPLEMENTATION BASICS SITE INSPECTIONS 3. CONTRACT ADMINISTRATION CONTRACT LEGAL COMPLIANCE STEP-BY-STEP • Ensure contractor follows all legal responsibilities 4. MONEY & TIME • Things to watch for 5. PROFESSIONALISM • Specific requirements in contract • Safety issues • Appropriate supervision • Record keeping • Site security • Temporary works, storage • Environmental issues – water & drainage, noise, dust, tree protection & maintenance GRAHAM FLETCHER 66
AILA & AILDM contract CONTRACT ADMINISTRATION administration STEP-BY-STEP 1. CONTRACT BASICS AUTHORITY TO TAKE POSSESSION OF SITE 2. PROJECT POSSESSION OF SITE IMPLEMENTATION BASICS SITE INSPECTIONS 3. CONTRACT ADMINISTRATION CONTRACT LEGAL COMPLIANCE STEP-BY-STEP • Ensure contractor follows all legal responsibilities 4. MONEY & TIME • Ensure you follow all legal responsibilities 5. PROFESSIONALISM • Understand what’s in your contract • Your responsibilities • Professional negotiation is best technique • But if negotiation isn’t effective, know how far you can ‘push’ contractor (and others, including client) GRAHAM FLETCHER 67
AILA & AILDM contract CONTRACT ADMINISTRATION administration STEP-BY-STEP 1. CONTRACT BASICS ENFORCEMENT STEPS 2. PROJECT IMPLEMENTATION BASICS 1. BREACH little bit bad 3. CONTRACT 2. SUBSTANTIAL BREACH ADMINISTRATION 3. DEFAULT STEP-BY-STEP 4. TERMINATION very bad 4. MONEY & TIME 5. PROFESSIONALISM GRAHAM FLETCHER 68
AILA & AILDM contract CONTRACT ADMINISTRATION administration STEP-BY-STEP 1. CONTRACT BASICS ENFORCEMENT STEPS 2. PROJECT 1. BREACH IMPLEMENTATION BASICS 3. CONTRACT WHAT IT MEANS ADMINISTRATION One party has done something, or failed to do STEP-BY-STEP something, contrary to their contract conditions. 4. MONEY & TIME RAMIFICATIONS 5. PROFESSIONALISM The other party notifies them of the BREACH and gives ‘reasonable time’ to rectify it. MONEY The offending party is only required to pay the other party money, or expect that money due will be withheld, if it is stated in their contract that money is claimable for a BREACH . GRAHAM FLETCHER 69
AILA & AILDM contract CONTRACT ADMINISTRATION administration STEP-BY-STEP 1. CONTRACT BASICS ENFORCEMENT STEPS 2. PROJECT 1. BREACH IMPLEMENTATION BASICS 2. SUBSTANTIAL BREACH – usually defined in the contract 3. CONTRACT ADMINISTRATION WHAT IT MEANS STEP-BY-STEP One party has failed to rectify a BREACH within a 4. MONEY & TIME ‘reasonable time’, or has done something contractually 5. PROFESSIONALISM important, or failed to do that something, contrary to their contract conditions. RAMIFICATIONS The other party notifies them of the SUBSTANTIAL BREACH and gives ‘reasonable time’ to rectify it. MONEY The innocent party is able to claim the cost of out-of- pocket expenses directly caused by the SUBSTANTIAL BREACH , and BREACH . GRAHAM FLETCHER 70
AILA & AILDM contract CONTRACT ADMINISTRATION administration STEP-BY-STEP 1. CONTRACT BASICS ENFORCEMENT STEPS 2. PROJECT 1. BREACH IMPLEMENTATION BASICS 2. SUBSTANTIAL BREACH 3. CONTRACT 3. DEFAULT ADMINISTRATION STEP-BY-STEP WHAT IT MEANS 4. MONEY & TIME One party has failed to rectify a SUBSTANTIAL BREACH 5. PROFESSIONALISM within a ‘reasonable time’, or has done something to make the contract unworkable or impossible, or failed to do that something, contrary to their contract conditions. RAMIFICATIONS The other party notifies them of the DEFAULT and gives ‘reasonable time’ to rectify it. MONEY The innocent party is able to claim damages suffered by the DEFAULT . Damages may include direct costs, secondary costs and costs of recovery. GRAHAM FLETCHER 71
AILA & AILDM contract CONTRACT ADMINISTRATION administration STEP-BY-STEP 1. CONTRACT BASICS ENFORCEMENT STEPS 2. PROJECT 1. BREACH IMPLEMENTATION BASICS 2. SUBSTANTIAL BREACH 3. CONTRACT 3. DEFAULT ADMINISTRATION 4. TERMINATION STEP-BY-STEP 4. MONEY & TIME WHAT IT MEANS 5. PROFESSIONALISM One party has caused the contract to end prematurely. RAMIFICATIONS The other party notifies them of their intention to TERMINATE the contract and gives ‘reasonable time’ to show cause why the contract should not be terminated. MONEY The innocent party is able to claim damages suffered by the TERMINATION . Damages may include direct costs, secondary costs, costs of recovery, and the reasonable cost of completion of the project or damages suffered for its non-completion. GRAHAM FLETCHER 72
AILA & AILDM contract CONTRACT ADMINISTRATION administration STEP-BY-STEP 1. CONTRACT BASICS AUTHORITY TO TAKE POSSESSION OF SITE 2. PROJECT POSSESSION OF SITE IMPLEMENTATION BASICS SITE INSPECTIONS 3. CONTRACT CONTRACT LEGAL COMPLIANCE ADMINISTRATION STEP-BY-STEP CONTRACT TECHNICAL COMPLIANCE 4. MONEY & TIME • Work matches specification, details, plans 5. PROFESSIONALISM • Test compliance • Measure things, but know industry tolerances • Check against samples • Performance requires testing too GRAHAM FLETCHER 73
AILA & AILDM contract CONTRACT ADMINISTRATION administration STEP-BY-STEP 1. CONTRACT BASICS AUTHORITY TO TAKE POSSESSION OF SITE 2. PROJECT POSSESSION OF SITE IMPLEMENTATION BASICS SITE INSPECTIONS 3. CONTRACT CONTRACT LEGAL COMPLIANCE ADMINISTRATION CONTRACT TECHNICAL COMPLIANCE STEP-BY-STEP 4. MONEY & TIME SATISFACTORY WORK 5. PROFESSIONALISM • Work matches expected performance • Needs testing & comparison against ….? • Need to know what the client expects • Need to know what the public expects • (cannot contract to do a bad job) • Work matches industry standards • Each part matches trade standard • Plumbing matches plumbing standards, etc • Structures match engineering standards • May need others to sign off work compliance • Surveyor • Engineer GRAHAM FLETCHER 74
AILA & AILDM contract CONTRACT ADMINISTRATION administration STEP-BY-STEP 1. CONTRACT BASICS AUTHORITY TO TAKE POSSESSION OF SITE 2. PROJECT POSSESSION OF SITE IMPLEMENTATION BASICS SITE INSPECTIONS 3. CONTRACT CONTRACT LEGAL COMPLIANCE ADMINISTRATION CONTRACT TECHNICAL COMPLIANCE STEP-BY-STEP SATISFACTORY WORK 4. MONEY & TIME 5. PROFESSIONALISM CONTRACT PROCEDURES – MONEY & TIME See MONEY & TIME later GRAHAM FLETCHER 75
AILA & AILDM contract CONTRACT ADMINISTRATION administration STEP-BY-STEP 1. CONTRACT BASICS AUTHORITY TO TAKE POSSESSION OF SITE 2. PROJECT POSSESSION OF SITE IMPLEMENTATION BASICS SITE INSPECTIONS 3. CONTRACT CONTRACT LEGAL COMPLIANCE ADMINISTRATION CONTRACT TECHNICAL COMPLIANCE STEP-BY-STEP SATISFACTORY WORK 4. MONEY & TIME CONTRACT PROCEDURES – MONEY & TIME 5. PROFESSIONALISM DEFECTS LIST (or LIST TO FINISH) • Inspection(s) prior to Practical Completion & Final Completion • List of things to fix / finish prior to PC / FC • Contractor has 3 options • Fix / finish • Do nothing – if ‘trivial’, consider client • If item is change to contract – claim variation GRAHAM FLETCHER 76
AILA & AILDM contract CONTRACT ADMINISTRATION administration STEP-BY-STEP 1. CONTRACT BASICS AUTHORITY TO TAKE POSSESSION OF SITE 2. PROJECT POSSESSION OF SITE IMPLEMENTATION BASICS SITE INSPECTIONS 3. CONTRACT CONTRACT LEGAL COMPLIANCE ADMINISTRATION CONTRACT TECHNICAL COMPLIANCE STEP-BY-STEP SATISFACTORY WORK 4. MONEY & TIME CONTRACT PROCEDURES – MONEY & TIME 5. PROFESSIONALISM DEFECTS LIST SITE INSTRUCTIONS • All instructions need to be in writing • Method acceptable to client & contractor • Eg email using standard template, or • Hard copy on site – parties take photo GRAHAM FLETCHER 77
AILA & AILDM contract CONTRACT ADMINISTRATION administration STEP-BY-STEP 1. CONTRACT BASICS AUTHORITY TO TAKE POSSESSION OF SITE 2. PROJECT POSSESSION OF SITE IMPLEMENTATION BASICS SITE INSPECTIONS 3. CONTRACT CONTRACT LEGAL COMPLIANCE ADMINISTRATION CONTRACT TECHNICAL COMPLIANCE STEP-BY-STEP SATISFACTORY WORK 4. MONEY & TIME CONTRACT PROCEDURES – MONEY & TIME 5. PROFESSIONALISM DEFECTS LIST SITE INSTRUCTIONS • All instructions need to be in writing • These include • Legal compliance • Technical compliance • Satisfactory work • Money & time • Defects GRAHAM FLETCHER 78
AILA & AILDM contract CONTRACT ADMINISTRATION administration STEP-BY-STEP 1. CONTRACT BASICS SITE INSTRUCTIONS 2. PROJECT • Template IMPLEMENTATION BASICS • Include business identification / authority to issue 3. CONTRACT ADMINISTRATION INSTRUCTION Note this No. STEP-BY-STEP Project: comment Issued to: 4. MONEY & TIME Issued by: 5. PROFESSIONALISM Date: If the contractor believes that part or all of this instruction involves a change to the contract sum or contract time , seek approval from the superintendent. Do not comply with that part of this instruction until approval to vary the contract has been received from the superintendent . No. Description Action Check Copies issued to: GRAHAM FLETCHER 79
AILA & AILDM contract CONTRACT ADMINISTRATION administration STEP-BY-STEP 1. CONTRACT BASICS AUTHORITY TO TAKE POSSESSION OF SITE 2. PROJECT POSSESSION OF SITE IMPLEMENTATION BASICS SITE INSPECTIONS 3. CONTRACT CONTRACT LEGAL COMPLIANCE ADMINISTRATION CONTRACT TECHNICAL COMPLIANCE STEP-BY-STEP SATISFACTORY WORK 4. MONEY & TIME CONTRACT PROCEDURES – MONEY & TIME 5. PROFESSIONALISM DEFECTS LIST SITE INSTRUCTIONS PRACTICAL COMPLETION • Not the same as ‘Handover’ • Construction complete, but not Plant Establishment • (different in ACT) • Insurance of site finished • All parties ‘happy’ GRAHAM FLETCHER 80
AILA & AILDM contract CONTRACT ADMINISTRATION administration STEP-BY-STEP 1. CONTRACT BASICS AUTHORITY TO TAKE POSSESSION OF SITE 2. PROJECT POSSESSION OF SITE IMPLEMENTATION BASICS SITE INSPECTIONS 3. CONTRACT CONTRACT LEGAL COMPLIANCE ADMINISTRATION CONTRACT TECHNICAL COMPLIANCE STEP-BY-STEP SATISFACTORY WORK 4. MONEY & TIME CONTRACT PROCEDURES – MONEY & TIME 5. PROFESSIONALISM DEFECTS LIST SITE INSTRUCTIONS PRACTICAL COMPLETION PRACTICAL COMPLETION – LEGAL SIGN OFF • All parties know changes to responsibilities • Certificate of Practical Completion issued GRAHAM FLETCHER 81
AILA & AILDM contract CONTRACT ADMINISTRATION administration STEP-BY-STEP 1. CONTRACT BASICS AUTHORITY TO TAKE POSSESSION OF SITE 2. PROJECT POSSESSION OF SITE IMPLEMENTATION BASICS SITE INSPECTIONS 3. CONTRACT CONTRACT LEGAL COMPLIANCE ADMINISTRATION CONTRACT TECHNICAL COMPLIANCE STEP-BY-STEP SATISFACTORY WORK 4. MONEY & TIME CONTRACT PROCEDURES – MONEY & TIME 5. PROFESSIONALISM DEFECTS LIST SITE INSTRUCTIONS PRACTICAL COMPLETION PRACTICAL COMPLETION – LEGAL SIGN OFF DEFECTS LIABILITY • Client notifies a defect – do they know what it is & when to notify you? • You need to know difference between ‘failed to meet expectations’ and ‘fair wear & tear’ • Issue instruction to fix • Within reasonable time • Without charge (unless authorised as variation) GRAHAM FLETCHER 82
AILA & AILDM contract CONTRACT ADMINISTRATION administration STEP-BY-STEP 1. CONTRACT BASICS AUTHORITY TO TAKE POSSESSION OF SITE 2. PROJECT POSSESSION OF SITE IMPLEMENTATION BASICS SITE INSPECTIONS 3. CONTRACT CONTRACT LEGAL COMPLIANCE ADMINISTRATION CONTRACT TECHNICAL COMPLIANCE STEP-BY-STEP SATISFACTORY WORK 4. MONEY & TIME CONTRACT PROCEDURES – MONEY & TIME 5. PROFESSIONALISM DEFECTS LIST SITE INSTRUCTIONS PRACTICAL COMPLETION PRACTICAL COMPLETION – LEGAL SIGN OFF DEFECTS LIABILITY PLANT ESTABLISHMENT • Not maintenance • Need to be specific in contract – what it is OR isn’t • Needs inspections & site instructions GRAHAM FLETCHER 83
AILA & AILDM contract CONTRACT ADMINISTRATION administration STEP-BY-STEP 1. CONTRACT BASICS AUTHORITY TO TAKE POSSESSION OF SITE 2. PROJECT POSSESSION OF SITE IMPLEMENTATION BASICS SITE INSPECTIONS 3. CONTRACT CONTRACT LEGAL COMPLIANCE ADMINISTRATION CONTRACT TECHNICAL COMPLIANCE STEP-BY-STEP SATISFACTORY WORK 4. MONEY & TIME CONTRACT PROCEDURES – MONEY & TIME 5. PROFESSIONALISM DEFECTS LIST SITE INSTRUCTIONS PRACTICAL COMPLETION PRACTICAL COMPLETION – LEGAL SIGN OFF DEFECTS LIABILITY PLANT ESTABLISHMENT FINAL COMPLETION • All work & defects finished • All parties ‘happy’ GRAHAM FLETCHER 84
AILA & AILDM contract CONTRACT ADMINISTRATION administration STEP-BY-STEP 1. CONTRACT BASICS AUTHORITY TO TAKE POSSESSION OF SITE 2. PROJECT POSSESSION OF SITE IMPLEMENTATION BASICS SITE INSPECTIONS 3. CONTRACT CONTRACT LEGAL COMPLIANCE ADMINISTRATION CONTRACT TECHNICAL COMPLIANCE STEP-BY-STEP SATISFACTORY WORK 4. MONEY & TIME CONTRACT PROCEDURES – MONEY & TIME 5. PROFESSIONALISM DEFECTS LIST SITE INSTRUCTIONS PRACTICAL COMPLETION PRACTICAL COMPLETION – LEGAL SIGN OFF DEFECTS LIABILITY PLANT ESTABLISHMENT FINAL COMPLETION FINAL COMPLETION – LEGAL SIGN OFF • All parties know changes to responsibilities • Certificate of Final Completion issued GRAHAM FLETCHER 85
AILA & AILDM contract administration 1. CONTRACT BASICS 2. PROJECT IMPLEMENTATION BASICS 3. CONTRACT ADMINISTRATION STEP-BY-STEP MONEY & TIME 4. MONEY & TIME 5. PROFESSIONALISM GRAHAM FLETCHER 86
AILA & AILDM contract MONEY administration 1. CONTRACT BASICS 2. PROJECT Standards for work established by IMPLEMENTATION whatever is legislated BASICS • NSW Fair Trading determines the rules 3. CONTRACT for contracts with consumers ADMINISTRATION STEP-BY-STEP • B2B contracts can include different 4. MONEY & TIME rules, but courts are cautious if 5. PROFESSIONALISM contracts in dispute have rules different from those for consumers GRAHAM FLETCHER 87
AILA & AILDM contract MONEY administration DEPOSIT 1. CONTRACT BASICS 2. PROJECT Maximum 10% deposit for all sizes of IMPLEMENTATION building work (for consumers) in New BASICS South Wales 3. CONTRACT https://www.fairtrading.nsw.gov.au/trades-and-businesses/construction- ADMINISTRATION and-trade-essentials/guide-to-home-building-contracts STEP-BY-STEP 4. MONEY & TIME 5. PROFESSIONALISM GRAHAM FLETCHER 88
AILA & AILDM contract MONEY administration DEPOSIT 1. CONTRACT BASICS 2. PROJECT Maximum 10% deposit for all sizes of IMPLEMENTATION building work (for consumers) in New BASICS South Wales 3. CONTRACT ADMINISTRATION STEP-BY-STEP When there is a Contract Administrator or 4. MONEY & TIME Superintendent 5. PROFESSIONALISM • No deposit • Payment only for completed work GRAHAM FLETCHER 89
AILA & AILDM contract MONEY administration DEPOSIT 1. CONTRACT BASICS 2. PROJECT SECURITY IMPLEMENTATION BASICS Bank guarantee / Unconditional undertaking 3. CONTRACT ADMINISTRATION • Contractor to client STEP-BY-STEP • Rarely client to contractor 4. MONEY & TIME 5. PROFESSIONALISM GRAHAM FLETCHER 90
AILA & AILDM contract MONEY administration DEPOSIT 1. CONTRACT BASICS SECURITY 2. PROJECT IMPLEMENTATION PROGRESS CERTIFICATES for COMPLETED WORK BASICS 3. CONTRACT ADMINISTRATION PROGRESS CERTIFICATE No. STEP-BY-STEP Incl. Project: Excl. 4. MONEY & TIME GST GST Contractor: GST 5. PROFESSIONALISM A Total of certified work to date $ B Less retention (see later) $ C Less amount certified on previous certificates $ $ $ D Amount certified to be paid (A-B-C) $ $ $ We hereby certify that the contractor is authorised to receive $................. Certified by .........…........……. ….…..............…. ……........…. Name Signature Date GRAHAM FLETCHER 91
AILA & AILDM contract PROGRESS CERTIFICATE No. administration Incl. Project: Excl. Contractor: GST GST GST 1. CONTRACT BASICS A Total of certified work to date $ 2. PROJECT IMPLEMENTATION B Less retention $ BASICS C Less amount certified on previous certificates $ $ $ 3. CONTRACT D Amount certified to be paid (A-B-C) $ $ $ ADMINISTRATION STEP-BY-STEP We hereby certify that the contractor is authorised to receive $................. 4. MONEY & TIME 5. PROFESSIONALISM Certified by .........…........……. ….…..............…. ……........…. Name Signature Date CONTRACT SUMMARY E Contract Sum $ $ $ F Less contingency sum $ G Resultant Contract Sum (E-F) $ H Total approved variations to last certificate $ I Approved variations since last certificate $ • J Adjusted Contract Sum (G+H+I) $ $ $ Less total of certified work to date (A) $ K Value of work to complete project (J-A) $ $ $ GRAHAM FLETCHER 92
AILA & AILDM contract MONEY administration DEPOSIT 1. CONTRACT BASICS SECURITY 2. PROJECT IMPLEMENTATION PROGRESS CERTIFICATES BASICS • Note: Building and Construction Industry Security of 3. CONTRACT ADMINISTRATION Payment Act [NSW] 1999, as amended STEP-BY-STEP Points about the Act 4. MONEY & TIME • Applies to landscape work (& lots more) 5. PROFESSIONALISM • Statutory right to progress, milestone, final & one-off payments • Bans pay if paid & pay when paid • Enforced through courts • Payments usually based on Payment Schedule • Each payment claim has statement saying This payment claim is made under the Building and Construction Industry Security of Payments Act https://www.fairtrading.nsw.gov.au/trades-and-businesses/construction-and- trade-essentials/security-of-payment GRAHAM FLETCHER 93
AILA & AILDM contract MONEY administration DEPOSIT 1. CONTRACT BASICS SECURITY 2. PROJECT IMPLEMENTATION PROGRESS CERTIFICATES as per SCHEDULE OF PRICES BASICS (see later) 3. CONTRACT ADMINISTRATION STEP-BY-STEP 4. MONEY & TIME 5. PROFESSIONALISM GRAHAM FLETCHER 94
AILA & AILDM contract MONEY administration DEPOSIT 1. CONTRACT BASICS SECURITY 2. PROJECT PROGRESS CERTIFICATES as per SCHEDULE OF PRICES IMPLEMENTATION BASICS VARIATIONS + and – as per SCHEDULE OF RATES 3. CONTRACT ADMINISTRATION (See later) STEP-BY-STEP What are the rules for variations? 4. MONEY & TIME • No variation for issues that the contractor should 5. PROFESSIONALISM have identified before agreeing to contract • No variation unless agree to by both parties (or agent) in writing that includes changes to $ and / or time • In general, variations must be agreed to before doing the varied work GRAHAM FLETCHER 95
AILA & AILDM contract MONEY administration 1. CONTRACT BASICS • SCHEDULE OF PRICES 2. PROJECT IMPLEMENTATION • SCHEDULE OF RATES BASICS • (PRICED) BILL OF QUANTITIES 3. CONTRACT ADMINISTRATION • What are these? STEP-BY-STEP • When do you use them? 4. MONEY & TIME 5. PROFESSIONALISM GRAHAM FLETCHER 96
AILA & AILDM contract MONEY administration (PRICED) BILL OF QUANTITIES 1. CONTRACT BASICS REF DESCRIPTION UNIT QUANTITY RATE AMOUNT 2. PROJECT 1 SITE ESTABLISHMENT item IMPLEMENTATION 2 SITE PREPARATION m 2 2.1 Remove path 50 BASICS 2.2 Remove fence lm 65 3. CONTRACT ADMINISTRATION STEP-BY-STEP m 2 4.2 FCR supply, grade and compact 620 m 2 4.3 Roadbase supply, grade and compact 620 4. MONEY & TIME 4.4 25mm asphaltic concrete supply and m 2 620 5. PROFESSIONALISM install 4.5 Line marking (PC sum) item 450.00 12 CLEAN UP item 13 CONTINGENCY item 3,000.00 14 PLANT ESTABLISHMENT item • Gives ADVICE on PROBABLE COST • Use INDUSTRY STANDARD RATES only – eg LNA Rates Guide (current version is $400) • Do NOT include in TENDER DOCUMENTS unless prepared by Quantity Surveyor GRAHAM FLETCHER 97
AILA & AILDM contract MONEY administration SCHEDULE OF RATES 1. CONTRACT BASICS REF DESCRIPTION UNIT QUANTITY RATE 2. PROJECT 2 SITE PREPARATION m 2 IMPLEMENTATION 2.1 Remove path to 10 m 2 over 10 BASICS 2.2 Remove fence lm to 20 3. CONTRACT lm over 20 ADMINISTRATION STEP-BY-STEP m 2 4.2 Driveway pavement, including to 5 • FCR supply, grade and compact to 4. MONEY & TIME • Roadbase supply, grade and compact 4.4 5. PROFESSIONALISM • 25mm asphaltic concrete supply and install m 2 over 5 to 200 m 2 over 200 12 CLEAN UP 12.1 Dispose of green waste tonne to 5 tonne over 5 12.2 Dispose of clean soil fill tonne to 10 tonne over 10 12.3 Dispose of material for recycling tonne to 10 tonne over 10 14 PLANT ESTABLISHMENT week Oct to March week April to Sept • Used for VARIATIONS • CONTRACTOR inserts rates as part of TENDER GRAHAM FLETCHER 98
AILA & AILDM contract MONEY administration SCHEDULE OF PRICES 1. CONTRACT BASICS REF DESCRIPTION PRICE 2. PROJECT 1 SITE ESTABLISHMENT IMPLEMENTATION 2 SITE PREPARATION BASICS Remove all features not forming part of the completed project 3. CONTRACT ADMINISTRATION 4.2 Driveway pavement, including STEP-BY-STEP • to FCR • 4.4 Roadbase 4. MONEY & TIME • Asphaltic concrete 5. PROFESSIONALISM 4.5 Line marking (PC sum) 450.00 12 CLEAN UP prior to Practical Completion 14 PLANT ESTABLISHMENT Price per month October to March Price per month April to September • Used for PROGRESS PAYMENTS • Can be used to assess TENDERS against Priced Bill of Quantities (but be aware of industry practice to load early work) • FAIRER for all parties GRAHAM FLETCHER 99
AILA & AILDM contract MONEY administration 1. CONTRACT BASICS SCHEDULE OF PRICES 2. PROJECT • Easiest is to set it out as a PAYMENT SCHEDULE IMPLEMENTATION • As per Building and Construction Industry Security of BASICS 3. CONTRACT Payment Act [NSW] 1999, as amended ADMINISTRATION STEP-BY-STEP • AMOUNTS TO BE PAID on completion of stated work 4. MONEY & TIME 5. PROFESSIONALISM GRAHAM FLETCHER 100
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