A problem has occurred on a NEC3, ECC Option C contract for a sports stadium at the former Kai Tak airport. The Works In

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answerhappygod
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A problem has occurred on a NEC3, ECC Option C contract for a sports stadium at the former Kai Tak airport. The Works In

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A problem has occurred on a NEC3, ECC Option C contract for a
sports stadium at the former Kai Tak airport. The Works Information
stated that all works are to be designed by
the Contractor except the steelwork which will be
designed by the Employer. A debate has ensued over the
detailed fixing drawings for the steel.
The Contractor believes that these should be prepared by
the Employer. The Employer states that these are
always designed by the Contractor. The team have reached a
deadlock.
(a)As a newly appointed Project Manager you have just
taken over the project? How should this be dealt with? Who is
contractually responsible for producing the detailed fixing
drawings? (16%)
A few months later you spot an issue in the Works Information
for the Contractor’s design. This design includes an
automatic sprinkler system for the pitch, to be provided by
a Subcontractor. However, the Works Information provided by
the Employer states that a manual sprinkler system should
be provided.
(b)As Project Manager, what process would you instigate in
order to resolve this? The Employer wants the automatic
system – who should pay for this? How does this scenario
affect the Prices and Defined Cost? (24%)
The Supervisor on the project is very particular about
the type of coffee to be provided in the site office. They convince
you that an expensive coffee machine should be provided by
the Contractor together with an allowance of 300 coffee
pods per month to be used in the machine.
(c) How would you arrange for the Contractor to do
this? How would the Contractor be reimbursed for the cost
it incurs? (24%)
(d)You discover through inspecting the Contractor’s
accounts and records that the Contractor’s planner has
been charged full time to the project. However, 4 out of 5
days a week are spent by the planner at the Contractor’s head
office. How does the contract deal with this and what should be
paid in respect of the planner’s work? (16%)
In Contract Data Part Two, the Contractor included
a direct fee percentage of 11 percent but left
the subcontracted fee percentage blank. You speak to
the Contractor about this and you are told that, based on
the original Works Information, the Contractor did not
intend to subcontract much work. However, based on subsequent
compensation events there is now a need to subcontract a lot more
work and the Contractor wants to negotiate
a subcontracted fee percentage. You are told,
verbally, that ‘in a spirit of mutual trust and co-operation’
you should agree something.
(e)What does the contract state about such a scenario? Are you
able, as Project Manager, to change the Contract Data? How
might this be resolved and how should this be
recorded? (20%)
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