University | Singapore University of Social Science (SUSS) |
Subject | BPM109: Contract Administration |
Question 1
A contractor was awarded a tender to construct a large family resort. A well-known architect was appointed as the contract administrator to oversee the construction of the project. The following circumstances occurred during the construction period. Discuss the powers of the architect and the options available to him if the SIA form of contract was used for the contract.
(a) The architect was informed that the design of temporary works for a large excavation area was grossly inadequate. This could potentially lead to a collapse of the work.
(b) The architect discovered that the glass in the window areas was installed with 6 mm thick normal glass instead of 10 mm thick tempered glass which was the contract requirement.
(c) The architect was of the opinion that the quality of welding for the structural steel roofing works did not comply with the contract specifications.
(d) One of the subcontractors who were validly objected to by the architect was found working at the site.
Question 2
A contractor was contracted to build a good class bungalow (GCB) at a lump sum price of $36 million in Singapore. The SIA Measurement Contract (9th Edition) was used for the contract. The contract states that the contract commencement date is 3rd March 2019 over a 12-month construction period. An architect was appointed to oversee the construction of the project.
(a) State the contract completion date.
(b) Towards the end of the construction period, the architect granted an extension of time of 15 days from the contract completion date. State the extended completion date.
(c) The contractor failed to complete the works by the extended completion date. The architect then granted a further extension of time from 25th to 28th March 2020 for additional works instructed by him.
(i) Assume that the contractor had completed all the works on 4th April 2020. Draw the timeline from the contract commencement date to the contract completion date. Indicate all the relevant dates (from the contract commencement date to the completion date), and certificates to be
issued by the architect. Explain the implication of each certificate.
(ii) Calculate the liquidated damages (LD) amount chargeable to the contractor if the LD rate is $5000 per day.
Question 3
A contractor was awarded a tender. The Public Sector Standard Conditions of Contract (PSSCOC) for construction works (8th Edition, 2020) was used for the contract. The following situations occurred during the construction period. Discuss whether the contractor would be entitled to an extension of time.
(a) The Superintending Officer (SO) suspected that the quality of concrete for the construction of ten reinforced concrete (R.C.) columns did not comply with the contract requirement.
(b) An army helicopter crashed into the site and damaged a large part of the work. The construction activities had to be suspended for 20 days so that a site investigation could be conducted.
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