You are working in Charlene & Gillian (C&G) consultant QS Ltd. You are appointed as a...

 

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You are working in Charlene & Gillian (C&G) consultant QS Ltd. You are appointed as a contractor administrator in a project owned by Nicolas and Faye (N&F) Developers Ltd. to renovate a clubhouse located at the penthouse of a luxurious service apartment at 883 Latrobe Street, Melbourne. The following are the relevant contract particulars: Original Contact Sum: $10 Million Original Contract Period: 12 months Contract Commencement Date: 1/10/2019 Contract Date for Completion: 30/9/2020 Liquidated and Ascertained Damages: $2000/day By June 2020, the Contractor (Manifolds Contracting Co. Ltd.) had been in serious delay (through his own default) with no entitlement to an extension of time. According to the revised programme submitted by Manifolds on 15/6/2020, his anticipated date for completion of the contract was 30/11/2020, i.e. two months delay was anticipated. The Superintendent had endorsed the revised programme after the examination. On 22/6/2020, unfortunately, there were suspected cases of Coronavirus amongst the residents of the lower floors of the building. The building was subject to tight ingress/egress control by the Health Department waiting for medical diagnosis of the patients. No construction work was possible during the control period. The patient's illnesses were later confirmed NOT relating to Corona Virus and the control was lifted on 20/8/2020. The percentage value of work completed upon suspension of work was 70% of the original contract sum. By June 2020, the Contractor (Manifolds Contracting Co. Ltd.) had been in serious delay (through his own default) with no entitlement to an extension of time. According to the revised programme submitted by Manifolds on 15/6/2020, his anticipated date for completion of the contract was 30/11/2020, i.e. two months delay was anticipated. The Superintendent had endorsed the revised programme after the examination. On 22/6/2020, unfortunately, there were suspected cases of Coronavirus amongst the residents of the lower floors of the building. The building was subject to tight ingress/egress control by the Health Department waiting for medical diagnosis of the patients. No construction work was possible during the control period. The patient's illnesses were later confirmed NOT relating to Corona Virus and the control was lifted on 20/8/2020. The percentage value of work completed upon suspension of work was 70% of the original contract sum. On 21/8/2020, N&F, after reviewing the situation, instructed the contractor via the Superintendent to continue the suspension of the work until 22/9/2020. The work restarted on 23/9/2020. Today is 31/3/2021, your boss has just sent you an e-mail and asked you to respond to the following questions: [a] Calculate the liquidated damages that Manifolds should compensate N&F. Work out the details by citing relevant clause(s) from AS2124. (4 marks) [b] State, with the relevant AS2124 contract clause and sub-clause, the period(s) of delay that N&F should pay loss and expenses to Manifolds? (3 marks) [c] State, with the relevant AS2124 contract clause and sub-clause, which period(s) of delay should be regarded as 'neither party's fault', and cite relevant clause(s) from the AS2124. (3 marks) HTML BEY You are working in Charlene & Gillian (C&G) consultant QS Ltd. You are appointed as a contractor administrator in a project owned by Nicolas and Faye (N&F) Developers Ltd. to renovate a clubhouse located at the penthouse of a luxurious service apartment at 883 Latrobe Street, Melbourne. The following are the relevant contract particulars: Original Contact Sum: $10 Million Original Contract Period: 12 months Contract Commencement Date: 1/10/2019 Contract Date for Completion: 30/9/2020 Liquidated and Ascertained Damages: $2000/day By June 2020, the Contractor (Manifolds Contracting Co. Ltd.) had been in serious delay (through his own default) with no entitlement to an extension of time. According to the revised programme submitted by Manifolds on 15/6/2020, his anticipated date for completion of the contract was 30/11/2020, i.e. two months delay was anticipated. The Superintendent had endorsed the revised programme after the examination. On 22/6/2020, unfortunately, there were suspected cases of Coronavirus amongst the residents of the lower floors of the building. The building was subject to tight ingress/egress control by the Health Department waiting for medical diagnosis of the patients. No construction work was possible during the control period. The patient's illnesses were later confirmed NOT relating to Corona Virus and the control was lifted on 20/8/2020. The percentage value of work completed upon suspension of work was 70% of the original contract sum. By June 2020, the Contractor (Manifolds Contracting Co. Ltd.) had been in serious delay (through his own default) with no entitlement to an extension of time. According to the revised programme submitted by Manifolds on 15/6/2020, his anticipated date for completion of the contract was 30/11/2020, i.e. two months delay was anticipated. The Superintendent had endorsed the revised programme after the examination. On 22/6/2020, unfortunately, there were suspected cases of Coronavirus amongst the residents of the lower floors of the building. The building was subject to tight ingress/egress control by the Health Department waiting for medical diagnosis of the patients. No construction work was possible during the control period. The patient's illnesses were later confirmed NOT relating to Corona Virus and the control was lifted on 20/8/2020. The percentage value of work completed upon suspension of work was 70% of the original contract sum. On 21/8/2020, N&F, after reviewing the situation, instructed the contractor via the Superintendent to continue the suspension of the work until 22/9/2020. The work restarted on 23/9/2020. Today is 31/3/2021, your boss has just sent you an e-mail and asked you to respond to the following questions: [a] Calculate the liquidated damages that Manifolds should compensate N&F. Work out the details by citing relevant clause(s) from AS2124. (4 marks) [b] State, with the relevant AS2124 contract clause and sub-clause, the period(s) of delay that N&F should pay loss and expenses to Manifolds? (3 marks) [c] State, with the relevant AS2124 contract clause and sub-clause, which period(s) of delay should be regarded as 'neither party's fault', and cite relevant clause(s) from the AS2124. (3 marks) HTML BEY

Answer rating: 100% (QA)

Answer a Liquidated damages that Manifolds should compensate NF According to clause 451 of AS2124 the contractor is liable for liquidated damages at the rate of 2000 per day for any delay in completio... View the full answer