LA018068_Assn3_CPCCBC4003A Garrett Field d1.docx - Name Garrett Field Student Number 804893962 CPCCBC4003A Assessment 3 What you have to do Some of the

Name - Garrett Field Student Number - 804893962 CPCCBC4003A: Assessment 3 What you have to do Some of the questions in this assessment refer to Project 1. Questions Question 1 (10 marks) Briefly describe each of the following types of contract and discuss their application to building projects. From the list, nominate the contracts you as the builder, would utilise for the construction of the house in Project 1, contracting to ‘homeowners’. Justify your selection. Contract types:  Lump sum contract - A fixed price contract price will eliminate any variation due to rising or falling costs of labour and materials, the builder takes on the risk if prices increase. This form of contract involves the builder to agree to a service for a fixed price and this leaves no room for variations of unanticipated costs for the builder.  Lump sum subject to rise and fall - A single price contract with an allowance for rise and fall in the cost of labour, materials and other costs during construction, owner assumes the risk if prices fluctuate.  Cost plus a percentage - The builder is compensated the actual costs of the project plus an allowance or percentage for the superintendence of the work and for profit, warrants high quality cost reporting and a high level of confidence between both parties involved.  Project management - A project management contract is recognized either on a % basis or lump sum, where the project manager offers his services under that contract to manage the project on behalf of or for the client.  Schedule of rates - A schedule of rates can be a list in a contract setting out the staff, labour and plant hire rates the contractor will use for pricing cost reimbursable instructed works.  Sub-contract - This is a contract between the head contractor and the subcontract trades companies or tradespersons. Subcontractors who engage in building trades LA018068, Assessment 3, CPCCBC4003A, Ed 7 1 © New South Wales Technical and Further Education Commission, 2018 (TAFE NSW), Version 4, February 2018

work under the main contractor are subject to the same conditions and agreement of the main contract set out. - As the builder I would use a lump sum contract so that prices are known up front between the builder and client. It will give me the ability to offer my client a lower build price as I don’t have to factor in risk costs in the fixed price – this will allow me to win more work. Question 2 (10 Marks) Briefly define and explain each of the following terms in relation to the administration of a building project. Contract terms:  Variation - Variations are changes to the original contracted work, which involve either an addition or reduction in the scope or value of work  Prime cost item - A prime cost item is an allowance in the contract for the supply of necessary items not yet finally selected, for example taps or door furniture.