Case Study on Contract Administration and Law

Introduction

Construction management is an essential addition to the building projects especially in construction involving projects that are a large scale which has more potential for issues which could lead to delay as well as incurring of extra costs. It is the responsibility of the construction manager to measure every decision regarding design that they make through careful analysis which calculates the implication which choice would build on the schedule and budget. Without an appropriate plan and budget, the construction manager would be risking for the unforeseen issue that is derailing the overall project. Whenever the construction team includes a manager of construction from the start of the project, then the entire project becomes well planned for the potential issues and get added the benefit of locating for money and the opportunities that may lead to saving time.

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Most of the construction projects may become broken over a period into smaller building phases or projects. One of the main benefits about working with a construction manager who has a lot of experience is that the schedule of the project is well put together in a manner that many of the smaller tasks may occur in a parallel manner such that the project may begin and finished at a faster rate. The other benefit that would be realized given that Dollar Construction Limited had chosen an experienced construction manager to manage the Newtown University's building project is that it could have benefited from value engineering. The construction manager that Dollar Construction Limited had chosen to work with the construction team at the time of design phase did not spot the opportunities that he could use to save money without sacrificing the overall quality and look. Furthermore, the construction manager from the Dollar Construction Limited was not able to offer appropriate advice in aspects where additional money and time could have to be worth and necessary to invest for the success of the project.

The Newtown University encouraged Dollar Construction limited to have an early involvement even before there was an official agreement made between the two parties. This was beneficial in essence that it minimized the chances of having delays in the start of the project However, the problem with the construction manager from Dollar Construction Limited was that the manager failed to start working with books, estimates, and records that were aimed at planning for the shortages that were likely to be experienced at the course of the project. In this way, there was the need for stopping for a redesign of the mid-project. The construction manager form Dollar Construction Limited failed informing the Newtown University about the expected problem during the design phase since redesigning usually takes place before the starting of the project.

At any given fast-track construction projects such as the one that Newtown University had involving designing and construction of the plan of Halls of Residence there is usually the potential for facing change orders that are aimed at increasing costs due to the fact that the programs are unlikely that the design will become completed before the beginning of the construction project. However, through having the construction manager run a construction project, the potential issues will be more easily become spotted early enough which results in the reduction of the associated risks.

Although the substructure of the project of Newtown University is already under construction and almost complete, Newtown University is having challenges when acquiring of an indication that is clear from its Contract/Architect Administrator as well as from the significant contractor regarding when the project is expected to be accomplished. This has been made more challenging by the fact that even if the invitation that was given to the tender stated that the client that would conduct the construction project needed a construction period of 49 weeks. It is from this point that the Dollar Construction Limited was announced as the construction company that had qualified for the tender provided by the Newtown University as it stated that it requires a construction period of 52 weeks. The period that the Dollar Construction Limited reported it needed was the one that was considered as been more realistic for the project. The other compelling reason as to why Dollar Construction Limited was the one that seemed to have utilized all the time of float in the project, and it moved away from the sequence of the master program which would accommodate the weather associated problems as well as allocating the antiquities at the time of sub-structure construction and evacuation. It was well stated that the liquidated damages could become claimable as the administrator of the contract had vaguely suggested that there existed situations that could have led to attaining of possible extensions regarding time.

Without an appropriate schedule and budget, the construction manager would be risking for the unforeseen issue that is derailing the overall project. Whenever the construction team includes a manager of construction from the start of the project, then the entire project becomes well planned for the potential issues and get added the benefit of locating for money and the opportunities that may lead to saving time. However, the Newtown University had proposed a change to the scheme through amending of the external cladding as well as installing of a system comprised of the dry sprinkler in the Halls of Residence with the aim of improving fire resistance security for all students.

To solve the dispute that is affecting the Newtown University and Dollar Construction Limited, it is crucial that the two parties in the contract to first of all accept before the beginning of the project that there are certain things that can go wrong in contrast to what is expected and the fact that disputes that are experienced are nothing new in the construction industry. The more significant issue that is affecting the two parties involved in the contract is that they had chosen a lousy method that would facilitate dispute avoidance, as well as the two parties, lacked an appropriate way to persuade individuals to put those all of the necessary agreements that were provided in the contract as their priority. To successfully dissolve a dispute in the construction industry, there is the need of having a careful, precise, and concise planning of the method required for the execution of the project. Additionally, an effective way of dissolving dispute regarding the contract between two parties is all about having both parties adopting a conflict avoidance strategy which is proactive that needs appropriate risk analysis, as well as great clarification of the contract documentation. There is a financial risk that is associated with having the involved parties in a given contract not putting all the essential conflict avoidance agreements in the deal as their priority which entails risking what is hardly ever worth taking.

The process of conflict avoidance thus requires that there be several numbers of simple stages which need to be taken. Some of the steps which need to be made to facilitate for conflict avoidance include the following; The general management may adopt proactive planning and conduct management of the future work and raising of the issues that require being addressed. The other step that can be taken in conflict avoidance is aligning and partnering which can be built through establishing co-operation between the participants of the project as well as fostering of the spirit of the team which is extremely valuable. The other method that the Newtown University and the Dollar Construction Limited could have avoided dispute is through project management that includes an understanding of the objectives of the client and the issues regarding communication and the problems becoming recognized early.

The choosing of constructor management could have resulted in the active avoidance of conflict. Constructor management is best attained in a situation whereby there is a regular objective regarding the assessment of the cost and progress that is associated to the project which entails communicating well with constructor as well as dealing objectively and positively with the issues as they arise. It is crucial to have useful information which contributes to the management of the design team. Furthermore, Newtown University and Dollar Construction Limited could have utilized the approach of record keeping. In this approach, disputes may frequently become resolved by considering records in a thoughtful way that are kept at the time the project is going on.

In the construction site where the project of the Newtown University is undergoing several issues that includes artistry and quality. The problems that the plans are facing are as a result of having the Dollar Construction Limited having being managed by a site manager who is not in charge of the site at all times. The impression that Dollar Construction Limited has created is that it is not meeting the expected artistry and quality standards. The site manager has even moved in managing of another project in the neighborhood hence the manager is proportioning the available time to managing of the two projects.

An essential requirement of management control for the manager of the project is having the site manager continually monitoring of the cost of the project and report the observed features of the project to the clients. Such kind of reporting must compare the real progress regarding finance with the anticipated growth in finance as well being able to assess the financial terms, the ongoing unknowns, and risks, and to continuously update the clients about the expected progress regarding investment. To successfully dissolve a dispute in the construction industry, there is the need of having a careful, precise, and concise planning of the method required for the execution of the project. There is an increased probability that the quantity surveyor of the client plays an essential role in the process of cost control, by reporting to the client through the construction manager. The tools that are available to be used by the construction manager to help with processes of cost control are referred to as the construction expenditure graphs. Histograms of cost flow may also be also utilized.

If a given matter is disputed by the construction contractor in connection or under the subcontract is also a matter which is contested in or under connection with the agreed contract. Provided the contractor has the consent of subcontractor, they may have the ability to refer the dispute regarding the subcontract to the adjudicators the same time that is similar to that of significant contract referral. What follows this is having the adjudicator deciding the differences when they have joined hands and the references to parties for purposes of having the dispute being interpreted that it includes the subcontractor. The construction manager that Dollar Construction Limited had chosen to work with the construction team at the time of design phase did not spot the opportunities that he could use to save money without sacrificing the overall quality and look. Furthermore, the construction manager from the Dollar Construction Limited was not able to offer appropriate advice in aspects where additional money and time could have to be worth and necessary to invest for the success of the project. The Dispute Avoidance Board is the one that helps the involved parties in the resolving of the potential disputes before the disputes become experienced. Any possible dispute which arises in or under connection can result to the contract becoming referred to the Dispute Avoid...