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218.325

POST CONTRACT FINANCIAL

ADMINISTRATION

Semester 1, 2022

ASSIGNMENT ONE

QUESTION 1 [6 marks]

Compare and contrast the progress payments and final payments preparation process in NZS 3910. It would be best if a table is used to summarise your findings. Do not copy and paste the clauses. Use ONLY clause numbers for reference.

Word range 250 - 500 words.

QUESTION 2 [6 marks]

Explain the three different methods used to calculate the cost of variations with examples.

Word range 100 - 200 words.

QUESTION 3 [10 marks]

An engineer issued revised foundation plans for a five-story office-building project due to differing site conditions. The foundation design was changed based on the newly identified site conditions. The above variation resulted in a 10 - day delay in the critical path. Considering the following figures, calculate the total value of variations based on NZS 3910:2013.

Previous work items

Qty

Unit

New work items

Qty

Unit

Excavation Concrete for bases Formwork Reinforcement

300

Excavation Concrete for bases Formwork Reinforcement

525

Schedule of rates

Item

Rate

Unit

Excavation

Concrete for bases

Formwork

Reinforcement

25.00

275.00

55.00

8.00

NZD/m3

NZD/m2

NZD/kg

Percentages and working day rates are as follows

1. The schedule of prices provides separately for on-site overheads and off-site overheads and profit

2. On-site overheads 8 %

3. Off-site overheads and profit 13 %

4. Working day rate NZD 150/working day

5. The variation processing fee is 1.75%

QUESTION 4 [8 Marks]

A contractor seriously under-priced the item “painting of external walls” at the tendering stage by mistake. However, no one noticed the mistake until after signing the contract. Later on, due to a re-design, the quantity of the painting works increased substantially more than that was stated in the contract document. Advice the contractor on the rate to be used for the additional quantity assuming that the project is based on NZS 3910: 2013 conditions of contract for building and civil engineering construction.

(B)PRESENTATION OF ASSIGNMENT

Cover page with the following information:

Title:	Assignment 1
Course:	218.325 Post Contract Financial Administration 2022
Student name:	[insert student’s name]
Student ID	[insert student’s ID]
Teaching team:	Niluka, Chinthaka and Raymond

Other requirements

File format:

MS Word, EXCEL or PDF

Font type and

size:

Arial, 11 point (the use of different fonts and sizes are allowed for the title, headings and sub-headings).

(C)MARKING RUBRIC

Assignment & Marking criteria	Marks
ASSIGNMENT ONE
1. Question 1 a. Progress payment b. Final payment	3 3
2. Question 2 a. Variation cost calculation methods ( 1 mark for each method, 1 mark for each method example)	6
3. Question 3 a. Total additions and deductions (1 mark) b. Base Value (1mark) c. Aggregate value (1mark) d. On-site overhead (1mark) e. Off-site overhead and profit (1mark) f. The total value of variation without processing costs (3 marks) g. The total value of variation (1 mark) h. Calculations. (1 mark)	10
4. Question 4 a. Identification of correct variation pricing clauses in NZS 3910 relevant to the scenario b. Critical analysis of clauses and final recommendation to the contractor	4 4
*GRAND* *TOTAL*	30

(D) LATE SUBMISSION & ACADEMIC INTEGRITY

a. Plagiarism: Plagiarism is a very serious offence. DO NOT PLAGIARISE. Read the rules here:https://owll.massey.ac.nz/referencing/plagiarism.php.

b. Late submission: A penalty of 3 marks will be deducted for each calendar day (including weekends and public holidays) or a part of a day an assignment is submitted late after the Stream deadline. Assignments submitted more than 7 calendar days after the Stream deadline will not be marked and will get a mark of 0.