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QSP7CAP Contract Administration and Practice Assignment 2 Answers

Contract Administration and Practice Assignment 2 Scenario (UCEM)

Assessment Brief

  • Module Code: QSP7CAP
  • Module Name: Contract Administration and Practice
  • Level: 7
  • No. Of Words: 3000
  • Referencing Style: Harvard

 

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Learning outcomes

Code Description
LO1 Critically analyse the provisions of the Joint Contracts Tribunal (JCT), New Engineering Contract (NEC) and International Federation of Consulting Engineers (FIDIC) forms of contract for construction.
LO2 Critically analyse the roles of the parties and contract administrators within construction contracts.
LO3 Critically evaluate a range of different contract events using the procedures in the standard forms of contract to identify practical, reasoned solutions and understand the impact on the client organisation.
LO4 Critically evaluate the principles of accountancy concepts and business planning models and their impact on the project.

 

QSP7CAP Assignment 2 Scenario

A large water supply scheme is being delivered through private finance, a basic structure for the project is shown in the organisation chart below. The special project company has a concession to build the scheme and operate it for a minimum period of 30 Years; the assets will then be under the control of local municipalities.

You are employed by one of the major investors in the scheme and you are the project manager on the construction contract, which also includes detailed design.

The construction contract is an NEC4 ECC main option C contract and it has a value of 650,000,000 US Dollars, with a planned duration of 36 months and you are reporting at the end of month 20. The cumulative total of payments to the contractor will be 355,000,000 US Dollars; with an estimated value of the work done of 369,000,000 US Dollars.

The contract includes the following secondary option clauses:

  • X1
  • X2
  • X3
  • X6
  • X7
  • X8
  • X13
  • X15
  • X16
  • X17
  • X18
  • X20
  • X21

Together with dispute avoidance and resolution clause W3 and a project bank account clause based on Y(UK)1.

Completion of the construction contract on time, or ahead of time, is extremely important to the project company because it is only after the construction is complete that it can start earning income from the sale of water to the municipalities.

The pipes for the project are being supplied from France under a separate contract and there have recently been delays in delivering the pipes to the necessary areas of the site. In addition, there are significant problems and delays with the construction of a large pumping station caused by the contractor’s decision not to carry out detailed site investigation.

Project SPV Structure:

Project SPV Structure

QSP7CAP Assignment Task

Write the month 20 report for the project company in which you provide financial management information including a reasoned forecast of the total of the Prices for the project.

You should also critically analyse:

  • the risks that you currently believe might affect the construction contract and the overall scheme
  • the contract mechanisms that are available to the project company to manage the impact of these risks
  • the actions that you can take as project manager under the contract
  • how the outlined events may impact the total of the Prices and the Price for Work Done to Date at completion

Write your report with an abstract, an introduction, headings and a conclusion.

Reference list and bibliography

You should include a reference list with a minimum of eight separate relevant and appropriate sources that you have written about and cited within your work.

A bibliography of uncited sources is not required.

Further information to support you with this assignment is available within the study materials for this module on the UCEM VLE. If you have any questions about this assignment, please contact your Module Tutor or Module Leader via the VLE.

Marking guidance for this activity

This guidance is designed to help you to do as well as possible in your assessment by explaining how the person marking your work will be judging it.

Your work will be assessed in relation to the requirements set out in the assessment criteria marking guide at the end of this document and the grading guidance section below.

It is recommended that you read both of these sections before starting your assessment to learn what will help you to achieve the highest marks. Once you have finished you should review the assessment before submitting it, to check you have done what is required to achieve the highest marks.

When you receive your feedback from your tutor you should clearly be able to see which categories you gained marks in and, where relevant, recommendations about how to improve your performance going forward.

Grading guidance

This grading guidance section explains in more detail what a submission for this assessment

should include in order to achieve a mark at the threshold, good and excellent standards.

Threshold

You will have written a report which sufficiently addresses the task and has an adequate structure. You should have enough discussion and analysis in your report to sufficiently meet the learning outcomes.

Good

You will have met the criteria for Threshold and your referencing should be competent, including relevant industry and academic sources with mostly accurate application of the UCEM Harvard referencing system. The writing should be coherent and convey the meaning clearly.

Excellent

You will have met the criteria for Good and the communication should be sophisticated and articulate. You should make logical and reasoned assumptions and demonstrate a full critical awareness of the risks that could arise from the scenario. You should use your source material in a rigorous and logical way to support the arguments and conclusion that you have in the report.

Word count and overwriting

Exceeding 10% of the stated word count may limit the marks allocated for communication

The following table outlines the inclusions and exclusions in the word count of the most common features of assessed pieces of work.

Included Excluded
Introduction Executive summary/abstract
Main body Title page/front cover
Footnotes/endnotes Contents List
In text citations Calculations
Words in tables Drawings/Images
Conclusion List of references
Recommendations Bibliography
Headings and titles, except for those explicitly excluded Appendices

The total number of words used must be stated on the first page of your assessment.

Warning

Plagiarising someone else’s work, whether copying from the internet, UCEM study materials, a textbook, a fellow student or elsewhere, is a serious offence. Before you submit your work for assessment, you must check it to ensure that you have fully cited within the text all the sources of information you have used and that all your sources are listed in a reference section at the end of your submission. Quoted text must not be excessive in length. You will find guidance on correct citing and referencing in The UCEM Guide to Referencing and Citation in the e-Library on the VLE.

Be aware that your work will be checked using text-matching software. The ’Turnitin’ software is as much for your benefit as ours at UCEM. You can use it to check that all your citations have a matching reference and review any highlighted text that may not be original and requires a reference.

A high text-matching result could indicate plagiarism. If plagiarism is identified this could result in a penalty ranging from a loss of marks to exclusion from your programme.

Note: Please use the assignment referencing link to check the originality of your work before submitting it.

 

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