Resolve Business Disputes and Select and Prepare a Construction Contract Lesson Seven Cert IV - M. S. Martin March 2012

Todays Lesson Continue on Chapter Two - Contracts – Review Staging in Contracts – Continue Completing a standard contract to a specific job Where could disputes arise from the above ? Cert IV - M. S. Martin February 2012

Review Stages of a Contract Using Lump-sum sample Cert IV - M. S. Martin January 2012

Review Stages in Contracts Cert IV - M. S. Martin January 2012 Tender Stage All documents are viewed, Plans, Spec, Bill of Quantities, etc. Contractors submit their Prices Contracts are Signed and let Construction Starts and Progresses At either agreed time periods, and / or construction stages, Progress Claims are submitted These claims are veted by the Superintendent (person appointed by the principle to oversee and administer the project), or the principle (client on smaller jobs) if no super is appointed. These PC’s will be paid at pre-determined timeframes (7 days, 30 days, etc) Variations Variations may be submitted along the way (if applicable) Ensure written approvals has been granted before submission. These will also be veted by the Superintendent as above Practical Completion A critical stage of the project – When all work is completed except for minor defects Defects liability period begins from here There will also be retention money withheld until all works are complete Time periods could range from 3 to 12 months Defects Liability Period Contractually the contractor is obliged to complete these works A final payment claim can be submitted after work has been inspected It is suggested that written confirmation be requested, to confirm completion It should be noted that this doesn’t change any warrantee obligations

Continue Completing A Contract For the purpose of the exercise, we are going to use our previous example of: Mal set of Drawings Top floor fix out work Use the list of items from the previous exercise (list from full documents) Use this list as your job We will use the OFT Contract $25, plus in the back of your notes Complete the contract item by item Cert IV - M. S. Martin January 2012

So we are clear of the scope of work Description: Carpentry and related work for the required fix out of the first floor addition as detailed in the following documents… and described below: Price to be a lump sum – Supply and fix all skirting boards and architraves as specified in the scope of works – Supply and fit all internal doors (some supply items may be PC), jambs, and associated hardware. – Fit nosing piece to front of window sills where applicable on drawing – Any sliding door units and hardware Exclude / or note as PC item: – Supply items that are not confirmed at time of tender – Sundry fitments to bathroom and ensuite – mirrors or vanity cabinets' Cert IV - M. S. Martin January 2012

Define PS & PC items The provisional sum: Often in the form of a “schedule”, is for items which the contractor cannot give a definite price. A provisional sums schedule, sets out the amount allowed for the cost of each item of work, including GST. A prime cost item: Again often listed in a schedule, is an item which the owner has not selected at the date of the contract and for which the contractor cannot give a definite price. The amounts allowed are for the cost of each item, including GST. Cert IV - M. S. Martin January 2012

Signatures ? Do you really sign it first ? But lets decide on a figure $,$$$.$$ that we will use for our job? Cert IV - M. S. Martin January 2012

Checklist Although this is structured for the owner, it is relevant to you and good practice in general Cert IV - M. S. Martin January 2012

Details Fill out as if it were a real job. Make up missing details Cert IV - M. S. Martin January 2012

Contract Documents What would be in this list? Base it on the documents we have at hand Cert IV - M. S. Martin January 2012

Excluded Items ?, Quality & General Is there anything you would exclude Why? Or could it be better covered as a PC, or PS item later Cert IV - M. S. Martin January 2012

Cooling Off Period Look how it would apply to our job ! Cert IV - M. S. Martin January 2012

Deposit & Commencement What is the legal deposits, there are two stated Which applies to this job Cert IV - M. S. Martin January 2012

Time for Completion, Extensions ? Have an estimate on how long you would allow for this job? Are there any areas that could cause an extension of time ? Cert IV - M. S. Martin January 2012

Statutory Warranties Look at each one Which are more applicable to this job, or are they all ? Cert IV - M. S. Martin January 2012

Provisional Sum Are there any areas you would use this clause for, or would you choose another Cert IV - M. S. Martin January 2012

Prime Cost What’s the difference ? Is this a better fit than the previous provisional sum ? Cert IV - M. S. Martin January 2012

Progress Payments Look back at the time frame Is there room for staging of payments (areas of work?) Is the job too small? What are you happy with, remembering you have accounts and contractors to pay! Cert IV - M. S. Martin January 2012

Variations Do you envisage any ? How do you want to address them ? Cert IV - M. S. Martin January 2012

Time for Payment What does this mean ? Review the clause Cert IV - M. S. Martin January 2012

Final Payment & Work or Materials by owner ? Review the clause Have a think if there were items they could supply ? Cert IV - M. S. Martin January 2012

Approvals / Compliance Read over clause and discuss Cert IV - M. S. Martin January 2012

Access & The Site Read over clause and discuss Cert IV - M. S. Martin January 2012

Insurance Is yours up to date? Do you have documentation for proof to the client? Review the Clause Cert IV - M. S. Martin January 2012

Defect Rectification What periods are stated in this contract Are you happy with that? Would you amend it? Cert IV - M. S. Martin January 2012

Termination of Contract “By Owner” Review the Clause By contractor next clause Cert IV - M. S. Martin January 2012

Disputes Review the clause Do you agree with process? Cert IV - M. S. Martin January 2012

Copyright & Definitions Did you think copyright is applicable? Read over clauses Cert IV - M. S. Martin January 2012

Record Adjustments What would you do so both parties have this record? Cert IV - M. S. Martin January 2012

Payments & Notes This section concludes the contract Review and go back to front page with price Cert IV - M. S. Martin January 2012

References Competency text for ‘Resolve Business Disputes and Select and Prepare a Construction Contract’ Web sites as listed below: html Cert IV - M. S. Martin January 2012