BPM109: Discuss the Architect’s liability and the Contractor’s liability to the Employer including the courses of action they can take in response to the following circumstances: Contract Administration Assignment, SUSS

Question 1

A Contractor was awarded a contract to build a shopping mall using the SIA Measurement Contract (9th Edition). An Architect was appointed as the Contract administrator. Discuss the Architect’s liability and the Contractor’s liability to the Employer including the courses of action they can take in response to the following circumstances:

(a) During an inspection, the Architect discovered that one of the Contractor’s Subcontractors was unloading equipment at the Site. However, the shop drawings relating to the work had not been approved. The Architect also found out that the same Subcontractor was also one of the subcontractors previously objected by him.

(b) A portion of the third storey floor slab collapsed during the pouring of concrete and damaged the adjacent building due to inadequate shoring. The Architect informed the Contractor that work in the area of collapse would not be approved until the impact of collapse was evaluated by him. The Contractor informed the Architect that he
(Architect) would be liable for the cost of delay unless his evaluation could be performed within twenty-four hours.

(c) The Contractor allowed the electrical Subcontractor to install lighting fixtures other than those stated in the Contract documents. The electrical Subcontractor and the Contractor both believed the substituted fixtures to be of equal value but the Architect disagreed. The electrical shop drawings were prepared by the Contractor, reviewed and
approved by the Architect but they contained deviations from the Contract documents.

The quantity of lighting fixtures indicated on the shop drawings was also ten less than what was shown in the Contract document.

Question 2

A Contractor was awarded a fixed price contract to construct a detention centre using the SIA Lump Sum Contract (9th Edition). The Contract stated that the Completion date was 31st December 2020. The Architect granted an extension of time of 7 days to the Contractor but he failed to complete the Works by the extended completion date. On 10th January 2021, the Architect granted a further extension of time from 10th to 13th January 2021 for additional works. The Contractor completed all the Works (including the additional works) on 18th January 2021.

(a) State the relevant dates and types of certificates the Architect has to issue from the Contract completion date to the end of Maintenance period, assuming the Maintenance period is 12 months.

(b) Calculate the amount of liquidated damages (LD) chargeable to the Contractor assuming the LD rate is $2,500 per day.

(c) Under what circumstance(s) should the Architect issue the Completion certificate to the Contractor? Discuss FOUR (4) implications when the Completion certificate is issued.

(d) Under what circumstance(s) should the Architect issue the Maintenance certificate to the Contractor? Discuss the implications when the maintenance certificate is issued.

Question 3

Windfall Contractor was contracted to build a building for a public sector organisation (Employer) using the Public Sector Standard Conditions of Contract for construction works (PSSCOC), (8th Edition, 2020). A team of consultants was engaged by the Employer to look into the design of the building while the Contractor was responsible for the construction of the work. Discuss whether the Contractor would be entitled to extension of time (EOT) in each of the following situations:

(a) During the Site handover, Windfall Contractor discovered a large heap of earth at the site. The earth was left by a piling contractor and was obstructing the site. The piling contractor was contracted by the Employer to install piles under a separate contract prior to the date of handover. As a result, the Contractor was not able to mobilise his resources to the Site.

(b) While excavating, Windfall Contractor encountered large boulders that hindered the construction of foundation work. Both the soil investigation reports conducted by both the Employer and the Contractor did not show the presence of boulders. As a result, the Contractor had to remove a large amount of boulders that was obstructing work progress. This delayed the Contract Completion date by six months.

(c) A severe flooding at a public road junction caused water to accumulate at the Site as it was the lowest area in the vicinity. This resulted in three days of work stoppages at the Site. The investigation revealed that Windfall Contractor had carried out unauthorised drainage works that has significantly impeded the discharge of storm water into the downstream public canal.

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