Project Administration

Kem property developer is one of the prominent developers based in Birmingham in the UK. They undertake a wide range of commercial and educational building projects. Recently, Coventry University awarded Kem Property developer with a University building project for Engineering faculty. Assume that you have been appointed as an independent Construction Manager or a Quantity Surveyor and have been requested to provide an independent advice on the project administration. The key information about the project are as follows:

Contract Details
Client: Coventry University
Main Contractor: Kem property developer
Form of Contract: JCT 2011 SBC/Q
Contract Sum: £24,894,720.50
Date of Possession of the site: 1st of July 2017
Project completion date: 30th of June 2018
Retention percentage: 3.5%
Liquidated damages: £20,000.00/week
Defects liability period: 12 Months
General Summary of Bill of Quantities
Bill No.1: Preliminaries £ 2,267,664.00
Bill No.2: Demolition: £ 168,300.00
Bill No. 3: Building works
Section 1 – Ground floor £4,903,390.50
Section 2 – First floor £4,001,800.00
Section 3 – Second floor £3,638,646.00
Section 3 – Third floor £3,072,784.00
Section 4 – External works £1,774,630.00
Award for Electrical Works £2,881,700.00
Add
Profit (3%) £86,451.00
General attendance (1½%) £43,225.50
Specific attendance (½%) £14,408.50
Award for Mechanical Works £1,953,800.00

Add
Profit (3%) £58,614.00
General attendance (1%) £19,538.00
Specific attendance (½%) £9,769.00
Total Carried to Form of Tender £24,894,720.50
1. Coventry University’s estates manager paid a site visit during the month of March 2018. During his visit, he verbally instructed the project manager of Kem property developer to change the quality of tiles for washrooms. The project manager agreed on his statement and instructed the site engineer to change it accordingly. This event happened just before they laid the DPM. As an independent Construction manager/Quantity surveyor you are expected to critically analyse the potential impact of the verbal instructions for claiming variations. You are also expected to advise the developer on the procedures that they should take in claiming the costs for variations by considering the clauses from JCT 2011.

2. The external cladding to be used for the project was planned to be exported from Germany. However, due to Brexit talks the cost of cladding has gone higher. Project manager is concerned about the price fluctuations for external cladding. As an independent Construction manager/Quantity surveyor you are expected to write a report to the project manager on possible methods of claiming the fluctuations by considering the relevant clauses from JCT 2011. You are required to critically analyse advantages and disadvantages of each method. In addition, you are also expected to provide information about how it should be calculated. You need to clearly state any assumptions made. [25%]
3. The following details were noted in the site valuation report on the 1st April 2018. The electrical works is carried out by East Electrical Company and mechanical work is undertaken by Matt Mechanical services limited.
Demolition – 100%
Ground floor – 90%
First Floor – 80%
Second Floor – 70%
Third Floor – 60%
External work – 35%
Electrical works – 25%
Mechanical – 20%

Material on site (Main contractor) – £45,000.00
Material on site (Electrical) – £13,000.00

Approved variations 1 to 3 – £130,500.00
Approved fluctuations (by formula method) – £75,500.00
Approved Loss and/or expenses Claims: – £150,000.00
Total of previous valuations (1 to 6) – £8,520,400.000
I. Prepare the interim valuation number 7 for the month ending March 2018 using the information above for the following companies.
a. Kem Construction Limited [10%]
b. East Electrical company [3%]
c. Matt Mechanical services limited [2%]
II. Explain the procedures involved in preparing and approving interim valuations.

4. The contractor discovered an ancient monument while excavating the ground. Since there were previous instances where monuments were found in nearby sites, the BOQ had a provisional sum for this item. In addition, there was an amount allocated for Contingency sum. A site assistant QS wondered which amount to be used for this item while claiming the cost. Critically analyse the differences between Provisional sum and Contingency sum. Advise the assistant QS on which sum should be used for claiming and the justifications for using it, and the procedures that the contractor would be adopting to reimburse the cost.

 

 

 

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