Contract Price and Administration
Project scope
The project scope includes various works that must be done to complete the project successfully. In this particular context, the refurbishment, alteration, and redecoration of the apartment are done.
As a contract administrator, I have to conduct all the functions and techniques so that the development team can correct their efforts.
During the maintenance of the exterior and common parts of the apartment, raw material testing is done using standard measures (Ali, 1979). Most importantly, effective measures will be taken to avoid cost overruns.
Project risk
During apartment extensions and redecoration, several risk factors are associated, and they are illustrated in this section. First of all, the development authority must adopt cost-effective methods; otherwise, cost overruns may occur, which can hamper the employer’s financial condition (Graff, 2010).
The laboratory engineer should use standard raw materials and test them to ensure that the products’ quality is excellent and that stability will be provided to the particular apartment. During the renovation, the development team must choose an attractive design that can satisfy the client’s needs.
Nature of contract
The development authority is given the JCT standard form of building contract, SBC/Q, for redecoration of the exterior and common parts of the apartment.
It is a normal contract for building development, and the development authority is given 15 weeks to complete the entire project successfully. If any kind of delay occurs, the development authority will bear the financial loss (Kummel, 2010).
Therefore, as per the nature of contract the development authority has to take proper initiatives to complete the project within the given timescale and budget.
Role of parties
The development party and client party are mainly involved in this particular context because it is the development process of an apartment, and on the basis of a normal contract, the renovation will be done by the development authority as per the criteria (Lecrenski, Watson, and Fonseca-Ensor, 2011).
On the other hand contract administrator has to play an important role because in this kind of project the client specifications must be noted down properly in the contract papers and it has to be compared with the standard law and guidance of UAE otherwise the regulatory authorities can interrupt in the development process.
The supplier also plays an important role in this particular section because the raw material delivery must be excellent to ensure the building’s sustainability.
The project manager plays a significant role in this particular context because the entire framework will be developed by the project manager, and the project engineer has to execute the work accordingly as per the guided framework developed by the project manager (Moore, 1996).
The project engineer will provide proper supervision and establish daily work progress reports; otherwise, it will be very difficult for the development authority to complete the project within the given time schedule.
The financial effect on the employer
If the change is made late, subsequent work will be delayed because, due to the cost overrun, the development authority will not be able to provide the adequate amount of investment for the development (Murphy, 2009).
To make the project successful, all the machinery must be run effectively and all the team members must be led conveniently. Therefore, if a delay occurs in this particular project, then a cost overrun will occur.
Technology involved in this project
Advanced and modern technology is used in this particular project. Especially for the demolition proposal, modern machines are used. Painting is done with the help of automation technology that provides a clear and precise display of the painting, and no sketch will occur after five-minute intervals (Price, Smith, and Behan, 1964).
The tiles were fitted by the micro adjustment system, and the surface testing was done after the establishment. This helps in providing better output in the building, and the compactness ratio is also high. Therefore, computerised and automatic technology helps to achieve success in the project.
Additional detail claim in order to adjust the cost overrun
Changing the requirements is one of the most significant factors in cost overruns, and for this particular purpose, the client should provide detailed requirements. The design must be displayed in the contract documents, and the order of precedence must be present. Then, the client cannot change the design requirement without changing the budget (Price, 1996).
Therefore, the development authority will be protected from the cost overruns. Disputes in procedures and technical specification cab lead to cost overruns and for this particular purpose the appropriate type of contact must be developed with the client and schedule updates and productivity measurement tool has to be use by the development authority to avoid cost overruns.
Insufficient management sometimes leads to cost overruns, which can be prevented by innovative management facilities provided by the development authority (Price and Smith, 1985).
The project manager must properly maintain the technical aspects of the projects; otherwise, the cost overrun may occur.
Variation Agreement
Contract name: Redecoration of apartment
Address: 4\10, Abu Dhabi, Sheikh Real estate Apartments
United Arab Emirates.
Contract Number: 2451454/007
Initiation of contract
Any kinds of variation in original contract can provide a critical impact on the the building contract. Therefore, in the initial stage of contract the contracting parties make a deeds where clearly mentioned about the amount of variation permitted by the owner and the regulatory authority because without maintaining the standard guidelines of regulatory authority the project will not be complete (Wolfensohn, 2002).
Cost and process
Contract change will take place if the contrition authority exceeding the limits of variation in quality of raw materials, equipment standards, process standard. D
uring the contract discussions, significant negotiations might be done with the contracting authorities about the variation, and with the help of standard provisions and law, the owner is liable to provide the variations developed by the regulatory authorities.
Party’s involvement
All parties’ involvement is highly required during the establishment of the contract, and any variations more than the limit can seriously impact the building and hampered its stability.
However, keeping in mind the ratio of permitted variation the contracting authority made deeds that any kinds of disputes will be rectified by the contracting authority for one year from completing the entire project.
The amendment must be fooled by the authority during the contrition process, and the standard level of equipment has to be fooled by the contracting authority; otherwise, the desired outcome will not be achieved by the company.
Most importantly, if any kinds of cost are arising after the formation of contract the contracting authority will be liable to bear with the estimated budget no further rising in budget will take place (Moore, 1996). I
Finalizing of contract
In addition, the constructing authority can argue about the increasing supply, and the owner may give further consideration.
Therefore, advanced technological equipment will be used in the construction process to achieve an accurate and precise result and avoid several obligations that occurred due to the increase in variance.
Conclusion
The report gives a clear and precise idea about the development process and technique of the project manager plays an important role in making the project successful in terms of quality and reliability (Wolfensohn, 2002).
Project manager play an important role to in this particular development process of the apartment. Cost change estimate is also established in the above section and cost estimation of several materials is done according to the price book 2012.
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