PART A: Review of contract strategy from the Owners perspective.
Select one of the following projects, as described in their tender documents. You are to review the documents and confirm to the Owner’s Manager of Procurement that the correct procurement strategy is being adopted for the project:
I) Explain the benefits and risks associated in using the contracting form nominated. Include in your discussion, factors such as the context, organizational experience, and specifics of the project risk profile. You should also clearly outline the anticipated time dimensions for the project and the reasons behind the suggested timeframe.
II) For your selected project, identify three to five critical risks and/or opportunities. Sufficient detail is to be provided to justify the significance of identifying these risks as priorities.
The following projects have been nominated and details are provided in LMS.
1. Developing mathematics online assessment items by Department of Education and Training CW35736 1920001
2. Pumping of environmental water – Wallpolla Island issued by Mallee Catchment Authority, RF000418
3. The provision of laboratory plastic ware consumables for Peter MacCallum cancer institute cancer research division, TSER0496MH
4. Yarrawonga water treatment plant upgrade PR18051-01
NB: a) It is not permissible to replace the above projects with one you may be working on in a corporate environment.
b) Do not contact any of the actual project teams as part of this exercise. If this happens you will receive zero for the assignment.
PART B: Options if things start to go wrong
Assume you are managing a major Tier 1 construction company who has won the Design and Construct portion of a major tunnelling PPP project. The scope of your works includes: clearing the site, management of contaminated soil, excavation of the tunnels, lining of the tunnel, provision of fire services, mechanical services, electrical services and emergency service management in the tunnels, and final commissioning of the tunnels with appropriate running surfaces. You have engaged sub-contractors to undertake the mechanical services and electrical services aspects of the works.
Unfortunately, the electrical services contractor has had difficulty upgrading a number of electrical substations and this has delayed this sub-contractor by some 6 months. A simple program is detailed in Figure 1 that shows that delays of the sub-station works adversely affects both completion of the electrical and mechanical services and will also delay the opening date for the main PPP contract.
Whist it is a simplification, for this exercise let us assume the major D&C contract and associated sub-contracts are being delivered on the basis of the general conditions of contract AS4300 -1995. Assume the timelines provided in Fig 1 mirror the requirements of both the PPP agreement and the D&C contract obligations.
III) Using AS4300 as your reference, discuss in some detail what approach may be justified for the Head D&C Contractor to mount a claim for additional compensation from the Principal (and/or anyone else), include in your discussion a list of materials that would need to be provided in support of your claim.
IV) Discuss what practical steps the contractor may take to mitigate the negative consequences of a sub- contractor’s performance to achieve an improved outcome in terms of time, cost and reputation.