OVERVIEW
HIA Construction continue to pick up new work and the business is going well.
There are currently two projects that are top priority.
The first project is a three-bedroom house in Garth Road. The Jones family have been in the area for a long time, they have a couple of kids and are involved in lots of activities in the town. It’s important for the continual growth of HIA Construction that this project goes well, as good word of mouth is important. Max Jones is the primary contact for this project and you’re working closely with a plumber, John Hammer.
The second project relates to smaller works you have started for a large insurance company. These works usually cover kitchen refurbishments and the installation of new cabinetry, and very rarely go over the $10,000 mark. This is good ongoing work that’s important to hold onto in case the new construction slows. The main job is at Smog Street, and Jim Slate is primary contact.
As always, there are many activities happening and tasks to complete. It’s up to you to work through these with your team.
To complete this project, you will provide written responses in consideration of the following scenarios:
Read each scenario and follow the instructions included below to complete the assessment.
SCENARIO 1: SELECT A CONTRACT FOR TWO PROJECTS
You are in the process of deciding what contracts you need for the 3 bedrooms build at Lot 70 Garth Road (Max Jones) and another kitchen cabinet replacement for a client at number 70 Smog Street. (Jim Slate)
You have access to the “HIA Contracts online” platform. This system is a helpful resource in establishing legal contracts for construction.
Based on this information you are required to:
SCENARIO 2: EXPLAIN THE ESSENTIAL ELEMENTS OF A CONTRACT
As part of the contract development, it is important to understand the intention of the contract and how its creation will impact the project moving forward. This is something you will need to discuss and establish with both Max Jones and Jim Slate today
Based on this information you are required to:
Explain:
SCENARIO 3: DRAFT A CONTRACT
Max has confirmed that he is capable of entering into a legally binding contract and he wants to go ahead with the project at Lot 70 Garth Road. You will need to create a draft contract for Max Jones and the project for Garth Road. The following information about the project has already been provided.
Based on this information you are required to:
Access the (ID3t) HIA Contracts online and the supporting documents provided and compile the range of documents that collectively make up the contract. The contract and the range of documents must be submitted to your assessor as evidence for assessment.
The range of documents must relate to:
SCENARIO 4: ANSWER QUESTIONS ABOUT THE DRAFT CONTRACT
From the previous scenario you have developed the draft contract and forwarded it onto the Max, the client of this project.
Max has responded via email querying several aspects of the contract. Most of the information required to answer Max’s email is provided in the contract, however some of this information may need to come from other sources, for example the definition of inclement weather and how this would delay the construction
SCENARIO 5: PREPARE A CONTRACT FOR A SHORT-TERM SUB-CONTRACT ARRANGMENT
The Garth Road project requires a huge amount of floor and wall tiling. Last time you used a tiler, there was a long wait which caused challenging delays.
Being mindful of this, you are going to sort out a contract with Johnny Condos who is the owner and operator of the business Kicking tiles.
You have had a quick phone conversation with Johnny and he has confirmed that he is available to do the work and fit into the timelines stipulated in the (ID3v) HIA Construction schedule Lot 70 Garth road.
You now need to use this information to develop a contract to engage Johnny for this period.
Based on this information you are required to:
Consider Johnny’s hourly rate and prepare a contract for Johnny using HIA Contracts Online.
You have asked Simone (HIA Constructions admin person) to follow up and gather the other relevant information from Johnny which she has added to the (ID1c) HIA Construction staff information document
You will also need to access the (ID1y) HIA Construction project information as it also contains information specific to the Lot 70 Garth Road project.
You will also need to review the (ID3x) Lot 70 Garth Road construction plans to work out the total square meters you will need Johnny to lay, this will then determine the total amount payable to Johnny which will be noted in the contract.
Once the contract has been developed you will need to export this into a PDF and submit along with the Assessment workbook
SCENARIO 6: EXPLAIN THE STEPS ASSCIOATED WITH AND OFFER AND ACCEPTANCE OF A CONTRACT
At last Max Jones has agreed to the contract terms via email in relation to the lot 70 Garth Road project. He has signed the contract and has forwarded it to you for finalisation.
Based on this information you are required to:
Identify six steps you will take to finalise the contract for the lot 70 Garth Road project. Ensure one step is taken that will mitigate risk.
SCENARIO 7: PREPARE A FINAL CONTRACT
It is now time to prepare the final contract for the lot 70 Garth Road project.
You need to finalise this contract in line with the relevant HIA Construction legal processes.
Based on this information you are required to:
Prepare and submit a final contract as evidence for assessment.
The contract must be completed according to AS2124 and AS4000 and include:
Review the (ID4b) HIA Construction: Procedure for contract management document provided in the supporting documents to ensure the contract developed meets relevant HIA Construction procedures. Specific attention within this document should be towards the Managing the contract and subtopic finalisation and implementation of the contract
The benefit of HIA Contracts online is that through using the correct template the contracts developed using this system meet the requirements of relevant law and standards stipulated.
Ensure you upload the finalised contract to the Assessment submission link along with your Assessment workbook
SCENARIO 8: ORGANISE A PROGRESS PAYMENT INVOICE
The Garth Road project in travelling well. The concrete slab was completed last week, and the framing commenced yesterday so you need to organise a progress payment invoice for the base stage completion for Max Jones.
Based on this information, you are required to:
Create an invoice for Max Jones in line with the contract that is now in place. Access the invoicing template in HIA Contracts online and invoice the amount as per the contractual arrangement.
A copy of your invoice must be submitted as evidence for assessment.
SCENARIO 9: NEGOTIATING A VARIATION
You are about to start the tiling for lot 70 Garth Road and Johnny Condos is coming to the site next week. The tiles are onsite and ready to be laid.
Max Jones and his wife visit the site and upon seeing the tiles, Mrs Jones decides she no longer likes them and wants them changed. The new tiles will cost $2500, plus $150 worth of labour. You check the contract and the tiles onsite are the ones that were selected for the project
If you were to replace them, this will come at a considerable expense because the originals were a special order, they can’t be returned, and extra admin work will be required to secure another batch.
Based on this information, you are required to:
Complete a Variation of Contract form from HIA Contracts online system ensuring the correct State template is used. You will need to submit this variation alongside the Assessment workbook when it is time to submit your Assessment workbook.
SCENARIO 10: REQUEST AN EXTENSION OF TIME
Leading up to the final stage of the construction for Garth Road, you realise you are not going to make the completion date.
The change of tiles that Mrs Jones requested took a long time to come in which delayed the completion of the bathroom tiling. This delayed the installation of the bathroom fixtures as the plumber started another job and HIA Construction had to wait for them to return.
Due to this, HIA Construction will need to request an extension of 10 days.
You are slightly concerned that this extension could result in a financial penalty but can’t remember what was stipulated in the construction contract.
Based on this information, you are required to:
SCENARIO 11: RESPOND TO A DISAGREEMENT ABOUT AN EXTENSION OF TIME
Unfortunately, Max has argued that the change of tiles should not have resulted in an extension of time for the construction and there should be a penalty associated for HIA Construction with the request.
Max has sent the following email expressing his concerns.
You can see that Max is upset about the situation, but you’re confident you are not at fault. You’re mindful about Max`s status in the community and you want to keep the good relationship going.
You didn’t take the options Max suggested originally because:
SCENARIO 12: COMPLETE THE PAPERWORK REQUIRED FOR THE FINALISATION OF A CONTRACT
The lot 70 Garth Road project is completed and is ready for the final inspection.
Based on this information, you are required to:
SCENARIO 13: EXPLAIN HOW HIA CONSTRUCTION WILL MANAGE DEFECTS
As part of the contract finalisation process for Garth Road, you need to finalise the defects liability as per the contract terms and other relevant legislation. After the inspection with Max, he has provided you with an email listing seven defects. These defects relate to painting issues, easy fixes and the painter is back on site in three days.
Based on this information you are required to:
