An ECC Option C design and build contract has been awarded for the construction of a new
Question:
An ECC Option C design and build contract has been awarded for the construction of a new pedestrian bridge between two shopping centres. The period for reply is 2 weeks. The Contractor submits the design for a steel floor to the Project Manager for acceptance. The Works Information provided by the Employer was not specific regarding the type of flooring to be used. The following day the Employer informs the Project Manager that there is now a likelihood that a marble floor will be required. a. Upon hearing the Employer is considering a marble floor, how should the Project Manager manage this matter with the Contractor? [4 marks] Within the period for reply for the design submission for a steel floor, the Employer tells the Project Manager that a marble floor in the bridge is definitely required. b. Assuming the Contractor's design for a steel floor complies with the Works Information and the applicable law, can the Project Manager not accept it? If so what are the implications? [6 marks] 3 weeks after the Contractor submitted its design for a steel floor it still has not had a response from the Project Manager. The Accepted Programme shows the design acceptance is needed the next day, otherwise the Contractor starts to incur additional costs due to the delay. If materials are not ordered imminently a window of supply will be missed, resulting in considerable delay to the project. c. What should the Contractor to do in this situation? [7 marks] On a separate issue, the Works Information provided by the Employer specifies all exposed steel is to be painted in a specific shade of purple. The Contractor accidentally typed in a wrong product number when ordering, meaning that blue paint is ordered instead of the required purple paint. The wrong product number was referred to on the Contractor's design and subsequent revised programme, both accepted by the Project Manager. Half of the bridge is painted blue before the Supervisor notices this and notifies a Defect to the Contractor. d. The Contractor argues there is no Defect as the design and revised programme were accepted by the Project Manager, clearly showing blue paint. Is this a Defect and explain your answer? [4 marks] During a visit to the Site the Employer's Chief Executive decides that the contrasting blue and purple is acceptable and advises the Project Manager to make this happen. e. What is the process for accepting a Defect? How is this dealt with financially?
Intermediate Accounting
ISBN: 978-0324300987
10th Edition
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones