P a g e 1 | 6 CSM80007- CONSTRUCTION SITE OPERATIONS FINAL EXAM (excl. OH&S) - SEMESTER 1, 2017 This Examination is part of the assessment for the non OH&S component (65%) of the Construction Site Operations subject in Semester One (1), 2017. The full details of the assessment of this component were provided, in writing, at the commencement of the Semester. As a reminder, this examination is worth 45% of the total marks. Instructions for this Examination are outlined in Section 4. Where ‘Contract Administrator’ is used in this Examination paper, it has the same meaning as ‘Superintendent’ used in AS4000 – GENERAL CONDITIONS OF CONTRACT. The details of the examination follow. 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 geotechnical 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.Page 2 of 6 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. H. Expenditure Profile (AUD in thousands) Month 1 2 3 4 5 6 7 8 9 10 11 12 Planned 50 100 120 120 120 130 130 130 120 120 100 50 Actual 60 150 250 120 130 130 Note: 1. Actual cost during first month includes claim for resolving errors. 2. Actual cost during second month includes claim for dealing with object of antiquity.Page 3 of 6 3. Actual cost during third month includes claim for change in design for seating material. 2.EXAM QUESTIONS Question 1: Project Risk and Communication a. Your company has been requested by Client to prepare and submit a communication management plan. Prepare a communication management plan involving site management team and client’s team and stakeholders. (4 marks) b. Client Project Manager prepared a project risk matrix for the project to prepare the initial project budget. Prepare a project risk for this project. (4 marks) Question 2: 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. (4 marks) b. Explain how your company submitted the claims for dealing with ambiguities and errors in the documents with relevant clauses from AS 4000. (4 marks) 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. (4 marks) 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. (4 marks) 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. (4 marks) Question 3: Earned Value Analysis a. Based on the information provided in section H and other sections under “Further Information” carry out earned value analysis at the end of 6th month and calculate PV; EV; AC; CV; SV; CPI, SPI; BAC (4 marks)Page 4 of 6 b. Estimate the cost at completion (EAC) using different methods; I. If the CPI is expected to be the same for the remainder of the project, II. If future work will be accomplished at the planned rate; and III. If both the CPI and SPI influence the remaining work; (4 marks) Question 4: Report a. Prepare a draft monthly report to the client detailing the status of the project as at the end of 6th month. (4 marks) Question 5 : Estimating VOWD (Value of Work Done) and Accruals In a pipeline project, following information has been provided to the Contract administrator. Contract Scope: Procure, deliver, install and test 3 Km long 300mm dia pipeline from point A to point B as shown in the drawings and specification. Contract period: 8 Months Bill of Quantities Description Qty Unit Rate Currency Amount (USD) Amount (AUD) Procurement and delivery of 300mm dia pipes at site 3000 M 300 USD 900,000 Excavate trench and lay the pipe as specified. 3000 M 120 AUD 360,000 Testing of pipeline as specified 3000 M 30 AUD 90,000 Rates are inclusive of overheads and profit. At the end of 4th month into the project,  40% of pipes have been delivered to the site and accepted by the Superintendent as complying with the specification.  Contractor has laid 20% of the pipes and tested 50% of the laid pipes.  Invoices for 30% of delivery of pipes (3KM total); 15% of pipe in place; 0% for testing have been paid at the end of 3rd month. Exchange rate for the end of 3rd month; 1AUD = 0.75 USD as paid in invoices. Exchange rate for the end of 4th month (as provided by finance department); 1AUD = 0.80 USD a. Estimate the VOWD (in AUD) as at end of 4th month and accrual (accounting) (in AUD) . (5 marks)Page 5 of 6 4. EXAMINATION INSTRUCTIONS a. Please read the paper and the questions carefully. Each of the five (5) questions must be answered - specific marks are allocated to each question and, if relevant, to the elements of each question. Therefore, it is imperative that you read all the ‘Background’ and ‘Further Information’ carefully, at least a couple of times, before you commence your responses to any of the questions. Background and Further information are relevant for first four questions and question 5 is to be attempted without reference to the background and further information. b. You may wish to create additional background material and/or assumptions about your company’s Project to assist in developing your responses. However, if you do so, you must clearly outline what additional background information you have created at the very beginning on Page 1 of your response prior to answering any of the questions. c. The response should be no more than 1500 words including any Appendices. d. References are to be used with the author and source clearly stated and included as either a ‘bibliography’ at the end of your paper or in ‘footnotes’ at the bottom of the relevant page. e. A hard copy is to be delivered no later than 5.00pm, Friday 19th May 2017 at the address in (f) below. f) The hard copy response is to be delivered, by the due date, to: - Box 44 Sungkon Moon Mail Box, 7th Floor, Advanced Technologies Centre (ATC Building), Burwood Rd., Hawthorn, 3122 NOTE: Only a hard copy will be accepted as formal submission. You can send an email version for information purpose ([email protected]). It will be considered only for information purpose. Acknowledgement of receipt of your paper will not be provided.Page 6 of 6 g) The examination is to be done in your own time and no collaboration is to be entered into with any other person, particularly your fellow or past students. Plagiarism and/or copying of any form are considered serious offences by Swinburne University of Technology and, if detected, usually result in immediate disqualification. End.