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    BQS659 Ap2246a Assignment 3-1

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    Aiman Lusrey
    The document provides details regarding a construction contract for a 10-story office building including: 1) Contract particulars such as contract sum, completion dates, liquidated damages, payments to date. 2) A breakdown of the contract sum by item and amounts. 3) Details of prime cost and provisional sums included in the bill of quantities by item and amounts allowed. 4) A summary of variations to the building, external, and prime cost works by item with omission and addition amounts. 5) The contractor submitted a final account and requests the final certificate be prepared based on the information provided.

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    BQS659 Ap2246a Assignment 3-1

    Uploaded by

    Aiman Lusrey
    123 views5 pages
    The document provides details regarding a construction contract for a 10-story office building including: 1) Contract particulars such as contract sum, completion dates, liquidated damages, payments to date. 2) A breakdown of the contract sum by item and amounts. 3) Details of prime cost and provisional sums included in the bill of quantities by item and amounts allowed. 4) A summary of variations to the building, external, and prime cost works by item with omission and addition amounts. 5) The contractor submitted a final account and requests the final certificate be prepared based on the information provided.

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    BQS659 AP2246A ASSIGNMENT 3-1

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    The document provides details regarding a construction contract for a 10-story office building including: 1) Contract particulars such as contract sum, completion dates, liquidated damages, payments to date. 2) A breakdown of the contract sum by item and amounts. 3) Details of prime cost and provisional sums included in the bill of quantities by item and amounts allowed. 4) A summary of variations to the building, external, and prime cost works by item with omission and addition amounts. 5) The contractor submitted a final account and requests the final certificate be prepared based on the information provided.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    123 views5 pages

    BQS659 Ap2246a Assignment 3-1

    Uploaded by

    Aiman Lusrey
    The document provides details regarding a construction contract for a 10-story office building including: 1) Contract particulars such as contract sum, completion dates, liquidated damages, payments to date. 2) A breakdown of the contract sum by item and amounts. 3) Details of prime cost and provisional sums included in the bill of quantities by item and amounts allowed. 4) A summary of variations to the building, external, and prime cost works by item with omission and addition amounts. 5) The contractor submitted a final account and requests the final certificate be prepared based on the information provided.

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    CONFIDENTIAL ASSIGNMENT 3/BQS659

    UNIVERSITI TEKNOLOGI MARA


    ASSIGNMENT 3

    COURSE : PROFESSIONAL PRACTICE


    COURSE CODE : BQS659

    7.0 CLAIM FOR LOSS AND EXPENSE

    QUESTION 1

    A Contractor was awarded a contract for the construction and completion of a 3-blocks
    of apartments for 18 months. Six (6) months into the progress, the date for completion
    the date for completion was extended for 6 months due to the addition of one more
    block of apartment. The original completion date was on the 30th September 2019 and
    the new completion date was 30th March 2020. Further delay occurred and the
    contractor submitted a new extension of time claim. After verifying the delay events, the
    Architect extended the construction period to 30th April 2020. The revised completion
    date was based on the following reasons:

    Item Reasons Period


    1 Exceptional inclement weather 15 days
    2 Remedial works due to discrepancies between the
    Architect’s and Engineer’s drawings 5 days
    3 New authority requirements imposed 10 days
    Total 30 days

    The Contractor via letter dated 18th February 2020 submitted an application for loss and/or
    expense based on the reasons he was granted extension of time, Explain:

    a) the probable head of claims the Contractor could validly submit.


    (10 marks)

    b) in each case under which clause in the contract such addition could be authorized.
    (8 marks)

    c) how he can substantiate such claims and the document and records he may
    require to back such claims. (7 marks)
    8.0 NOMINATED SUBCONTRACTOR

    a) Syarikat Teguh Bersama was awarded a contract worth RM 50 million. The contract
    includes a Prime Cost Sum of RM 2,550,000.00 for electrical works. After going through the
    normal process, the S.O. decided to award the Electrical Works to Ikatan Mampu Sdn. Bhd.
    and proceed by giving instruction to Syarikat Teguh Bersama to enter a contract with Ikatan
    Mampu Sdn. Bhd. Upon receiving the instruction, Syarikat Teguh Bersama wrote a letter to
    the S.O. giving reasons disagreeing to the nomination.

    i) Should the reasons given by the contractor is accepted by the S.O. as reasonable,
    explain the action that may be taken by the S.O.

    ii) Explain what is meant by reasonable objection.

    b) Discuss the situation where the main contractor may be offered to tender for the Prime
    Cost works. Explain the effect to the profit and attendance if the main contractor were to be
    awarded the work for the Prime Cost Sum.

    c) Explain the situation where a Nominated Sub-Contractor could be paid direct as provided
    in the PAM Form 2018

    9.0 FINAL ACCOUNT AND FINAL CERTIFICATE

    QUESTION 1

    The following are particulars of a newly completed project for the construction and
    completion of a 10-storey office building.

    A PARTICULARS OF CONTRACT

    Contract Sum RM 8,112,000.00


    Date of Possession 1st September 2017
    Date for Completion 31st August 2019
    Date of Practical Completion 17th September 2019
    Extension Of Time Nil
    Liquidated and Ascertained Damages RM 1,700.00/day
    Amount paid to date RM 6,300,000.00
    Performance Guarantee Sum RM 405,600.00
    Type of Contract PWD Form 203A (Rev. 1/2010)
    (fluctuation of price clause deleted)
    B SUMMARY OF CONTRACT SUM

    ITEM DESCRIPTION AMOUNT (RM)


    1 Preliminaries 386,300.00
    2 Administration Block 6,550,500.00
    3 Guard House 35,600.00
    4 External Works 220,000.00
    5 P.C. & Provisional Sums 919,600.00
    TOTAL 8,112,000.00

    C PRIME COST SUM

    ITEM DESCRIPTION AMOUNT ALLOWED


    IN BQ (RM)
    1 Curtain walling 220,000.00
    Profit 2% 4,400.00
    Attendance 6,000.00
    2 Air conditioning installation 180,000.00
    Profit 2% 3,600.00
    Attendance 5,000.00
    3 Electrical installation 80,000.00
    Profit 2% 1,600.00
    Attendance 2,000.00
    4 Lift installation 350,000.00
    Profit 2% 7,000.00
    Attendance 7,000.00

    C PRIME COST SUM (CONT’D)

    ITEM DESCRIPTION AMOUNT ALLOWED


    IN BQ (RM)
    5 Fire fighting system 50,000.00
    Profit 2% 1,000.00
    Attendance 2,000.00

    D PROVISIONAL SUM

    ITEM DESCRIPTION AMOUNT ALLOWED


    IN BQ (RM)
    1 Built in Furniture 100,000.00
    2 TNB Sub-station 75,000.00
    3 Landscaping 150,000.00
    4 Contingencies 100,000.00

    E SUMMARY OF VARIATIONS

    i) Building Works
    ITEM DESCRIPTION OMISSION (RM) ADDITION (RM)
    1 Ceiling Finishes 33,500.00 20,500.00
    2 Floor Finishes 15,300.00 25,300.00
    3 Doors and Windows 30,600.00 45,600.00

    ii) External Works

    ITEM DESCRIPTION OMISSION (RM) ADDITION (RM)


    1 Water Reticulation 13,500.00 25,500.00
    2 Surface Water Drainage 12,500.00 25,500.00
    3 Hardstanding 15,500.00 18,500.00

    iii) Prime Cost Sums

    ITEM DESCRIPTION OMISSION (RM) ADDITION (RM)


    1 Curtain Walling
    Accepted tender figure:
    RM 195,300.00
    V.O. No. 1 25,500.00 38,500.00
    2 Air-Conditioning Installation
    Accepted tender figure:
    RM 155,200.00
    V.O. No. 1 15,000.00 25,500.00
    3 Electrical Installation
    Accepted tender figure:
    RM 72,500.00
    V.O. No. 1 12,000.00 15,500.00
    V.O. No. 2 10,500.00 13,500.00
    4 Lift Installation
    Accepted tender figure:
    RM 330,300.00
    0.00 0.00
    No variation

    5 Fire Fighting System


    Accepted tender figure:
    RM 35,000.00 0.00 0.00
    No variation

    iv) Provisional Sums

    ITEM DESCRIPTION AMOUNT ALLOWED


    IN BQ (RM)
    1 Built in Furniture 88,800.00
    2 TNB Sub-station 58,500.00
    3 Landscaping 125,000.00

    a) Based on the information provided, prepare a Statement of the Final Account AND
    the Final Certificate for the project.
    (20 marks)
    b) What would be the recommended amount certified in the Final Certificate if the
    contract was let under the PAM 2018 Standard Form of Contract?
    (5 marks)

    Instructions:

    i. All questions must be answered by handwritten

    ii. Front page: Hard cover (blue color) with ring binding. Please decide on the
    format of the front page, all of you must have same format for the front page

    iii. INDIVIDUAL ASSIGNMENT

    iv. Delay in submission shall be treated as NON-SUBMISSION

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