Affect the Pre-and Post-Contract Costs – Standard Forms of Contract – Business Assignment Help

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Assignment Task :

Learning outcomes 

 

LO1  Critically evaluate the principles of project and cost control, and how design solutions  impact on initial and life-cycle costs, and the methods used to establish these costs.

LO2  Critically analyse the factors that can affect the pre-and post-contract costs and the  administration of cost control including the effect on the client brief.

LO3  Critically synthesise solutions to costing, procurement and contract issues, contractor  selection and financial control.

LO4  Demonstrate a critical appreciation of the main standard forms of contract.

Scenario 

You are the building surveyor appointed as the client representative advising on the processes to be  adopted in the alteration and extension of a hotel in the South West of England. The two-storey  extension has a Gross Internal Floor Area (GIFA) of 400m2 and will create an additional 14  bedrooms. The hotel will remain in occupation whilst the alteration and extension works are carried  out. 

There are existing single-storey out-houses and maintenance stores on the site that require demolition to make way for the extension. An early ground investigation report has identified areas of  contamination to the north west corner of the site.  

The client requires the new extension to be low maintenance and sustainable in order to minimise  running costs and to ensure a good return on their investment over the long term. 

The cost limit of £1.25 million (excluding fees) has been agreed with the client and the project is to proceed with a completion date set for 15 months from now with room reservations already secured.  The client has advised that no further funds are available for this project.  

Task 

As the consultant assigned to project manage the development, the client has asked you to provide  a report, assuring that the project will be delivered within that cost limit and timeframe. 

Write a report for your client that critically analyses: 

• the different procurement approaches that might be considered for the building and recommend your preferred route, setting out the reasons for your choice using a selection matrix to illustrate your reasoning; 

• the strategy for the selection and evaluation of the most appropriate contractor, identifying  the processes that will be used; 

• the commercial risks which may arise as a result of your suggested procurement approach  and contractor selection and recommend the contract mechanisms that would be used to  minimise these risks. 

Clearly state your assumptions and provide examples to support your explanation or discussion. Any back-up information or calculations should be included in an appendix to your report.

 

 

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