FEM109: You are Introduced to the Dean of Engineering and Find Out from him that the University: Contract Administration Assignment, SUSS, Singapore

Assignment Details:

A. You are introduced to the Dean of Engineering and find out from him that the University is working with a building contractor, BSong Contractors to construct a new Analytical Research facility to enhance the University’s global standing. An architecture firm, Stanley Architects is appointed by the University as the Contract Administrator.

The Dean of Engineering asks you for advice on some cost and contractual matters relating to the facility. You agree to his request to give a report because your job deals with matters related to the liability for the University. The University is able to supply you with the following information.

(a) The Contract period was 14 months and had already overrun by 2 months and the project was only 90% completed. The SIA Building Contract 2016 (Without Quantities) was signed between the Dean of Engineering and BSong Contractor for the construction of the new facility. The Contractor issued a report during a site meeting stating that the value of steelwork was 3 times higher than the price stated in the Contract Document but this was not acted upon.

(b) The Contractor required chemicals to break down rocks that were encountered during excavation works. There were no rates in the Contract Documents for the usage of chemicals for breaking down rocks. Neither could the number of rocks be measured but there was no follow-up action.

(c) The Contractor had in the last 6 weeks been submitting tax invoices on a two-week cycle requesting for payment even though the Contract conditions laid down 4 weekly payment period.

(d) One of the approved Nominated Sub-contractors had also in the last 3 months been submitting invoices on a monthly basis following the Contract condition but had not received any payment for work done.

(e) During a lifting operation, a mobile crane collapsed on the Site and damaged part of the Works and a few cars that were parked outside the Site. A few workers were injured and the affected part of the Works was closed for investigation for two weeks.

B. Your Task Identify the issues and/or problems that are associated with each situation. In your own words, discuss each situation by applying the relevant clauses in the SIA Building Contract. Explain what needs to be done and how things could or should be administered given the above circumstances. You are expected to make reasonable assumptions and research on case law (if any) to substantiate your answer.