1. BACKGROUND Your company (a contracting firm) has been contracted by City of Whittlesea to construct a Tennis Club Pavilion & associated Works as part of an upgrade to the services provided in the area. (Yan Yan). City of Whittlesea is the Client and the funding is provided by grants from the State Government. The new Tennis Pavilion will assist the community to engage in leisure activities in the area – where possible, all Sub-Contractors, day labourers, relevant materials and Plant and Equipment hire are to be sourced from the local district. During the ‘Pre-Tendering’ phase, all tenderers had adequate time and sufficient guidance to thoroughly inspect the site, fully review all the geo-technical information and the detailed plans for the Project and access to all relevant technical and non-technical data they needed to be fully prepared to make an informed bid. They were also given an assessment of the availability and skills of labour in the area as well as the type of material (although untested) and equipment located there. All tenderers were required to acknowledge, in writing, that they had appropriate access and professional guidance to all the necessary information they required to be able to make an informed bid. 2. FURTHER INFORMATION A. Construction time for the project was specified as 12 months. AS 4000 has been selected as the General Conditions of Contract for the project. B. Your company has engaged a site management team (Project Manager, Contracts Administrator, Site Engineer, Site Foreman, Accounts Clerk). Client has assigned a Project Manager (Client) to act as Superintendent and a design engineer to resolve any design issues during construction. Client also has other stakeholders (local tennis club; Community leader; Council Member). C. Early in the construction several errors are found in the plans provided by the Client. Significant redesign is required before work can continue. These errors were notified by the Contractor and Superintendent issued direction to clarify the ambiguities and corrected the errors. Contractor has submitted claims during first month for additional cost (estimated additional cost $10,000) but maintained the time for completion at 12 months. D. During excavation and preparation of both the ‘green field’ and ‘brown field’ areas, ‘objects of antiquity’ were uncovered in the area where tennis pavilion to be constructed. During second month, object of antiquity was found and it was removed and handed over to the client. This set back the project by 14 days. Contractor has spent $100,000 in dealing with the removal of “object of antiquity” E. During third month, Client decided to change the material for seating to be used in the pavilion. Your company has already ordered the material as per original drawing. Superintendent chose to direct the changes under AS 4000. Estimated additional cost in respect of this change is $100,000. F. Your company has made progress and completed 40% of the original works (earned value) in 6 Months’ time. G. The weather is ideal for construction – the expectation, based on previous weather records of the area, had been that up to 10% of the time could be lost because of adverse weather. This has been built into the contract price by your company. As at end of 6 months there has been no claim for EOT in respect of inclement weather. Question: Application of AS 4000 a. AS4000 details specific lines of communication for the effective processing of all progress payments (Monthly). Detail this process as outlined by AS4000, specifically identifying all relevant clauses that authorise the process. Explain security of payment act and its application in your claim. b. Explain how your company submitted the claims for dealing with ambiguities and errors in the documents with relevant clauses from AS 4000. c. Your company decided to make ‘Claims for Variation’ for the additional works arising from the re-design of the seating. Your claim should include possible surplus material or other alternative ways to deal with your order. What is the relevant clause under which Superintendent must have issued the direction to change the seating material?; explain with reasons. d. Explain how your company dealt with discovery of ‘object of antiquity’ and how the Superintendent dealt with the claims for additional cost and time. e. Your company noticed that the bolts shown on the drawings to fix the seatings were specified as galvanized iron bolts. Your company advised the Client that stainless steel bolts would be appropriate to avoid corrosion. Superintendent is considering your company’s suggestion. Explain how the Superintendent and your company go about implementing the change of material for bolt.