Power Engineering is subcontracted to provide technical support for a new hydrogen manufacturing plant in Northwest Province, South Africa. They entered a contract with the following condition.The subcontract is valued at R$10$ million. Should the works be completed to the client$`$s satisfaction at a cost lower than its agreed value, then the subcontractor shall be entitled to a cost$-$saving incentive of $50\%$ of the savings. On the contrary, should the costs be exceeded, the subcontractor shall be held accountable and pay the full extra costs incurred. Calculate how much Power will get or pay $($in incentives$)$ under the following conditions$\mathrm{.}1\mathrm{.}1.$ The works are finished at a cost of R$7$ million.$[6$ marks$]1\mathrm{.}2.$ The works are completed at a cost of R$11$ million.$[6$ marks$]2..$ Indicate how much profit or loss Siyazama Projects $($Pty$)$ Ltd will make under the following fixed price contracts.a$)$ Siyazama was contracted to pave a $20$km road at a fixed cost of R$18$ million. The project costed R$11$ million.b$)$ Siyazama charged Bows Investments R$5$ million to build a small bridge. The project cost was R$5$ million.c$)3.$ Siyazama charged R$200$ million to repair flood$-$damaged powerlines. The total cost was R$250$ million.$[3*3=9$ marks$]3.$ Your organisation is considering whether to hire or buy construction equipment for a cost$-$constrained social housing project they recently secured. If you buy, the cost is two million rand $($R$2500,000),$ and the cost of procurement and integrating in your company is three hundred and fifty thousand rand $($R $450,000).$ If you hire, you pay two hundred thousand rand $($R $300,000)$ per month for $9$ months. The additional overhead costs apportioned to hiring it will be R$500,000.$ Which option will you choose buy or hire? Show all calculations.$[10$ marks$]4.$ The table below shows a cost$-$plus incentive contract for a project with a floor of R$40$ million, a target of R$50$ million and a ceiling of R$70$ million. If the client meets the floor of R$40$ million, they are entitled to an incentive of R$10$ million. If the costs reach the ceiling of R$70$ million, the client will receive no incentive. Using this information, calculate the values of A to G shown in the table below. show all calculations. No calculation, no marks.$[16$ marks$]$ Cost $($R million$)$Customer pays $($R million$)$Contractor receives $($R million$)$Target $($contract$)60$ million$($A$)($B$)$Actual$50$ million$($C$)($D$)$Actual$($E$)4$ million$($F$)$Actual$75$ million$($G$)($H$)5.$ During tendering, the tender adjudication committee noticed that they received bids shown in the table below.BidderPrice $($Rand$)$A$18000000$B$13000000$C$10000000$D$12000000$E$11500000$F$40000005$a$.$ Using the Danish practice, determine the best $($responsive and responsible$)$ bidder. Show all calculations and justify your choice. No calculation, no mark. $[10$ marks$]5$b$.$ The cheapest bidder is not always the most responsive and responsible bidder. Critique this assertion in light of bid evaluation using the Danish principle.$[10$ marks$]6.$ Consider bidders C$,$ D and E in question $5$ above. These three bids were evaluated using the weighted scoring model as shown below.Evaluation factorWeightBid CBid DBid E Score $($out of $10)$Weighted scoreScore $($out of $10)$Weighted scoreScore $($out of $10)$Weighted score$1.$ Price$0\mathrm{.}3718$A$2\mathrm{.}974431\mathrm{.}115451\mathrm{.}8592.$ FinancesB$3$C$72\mathrm{.}037102\mathrm{.}913.$ Technical$0\mathrm{.}217751\mathrm{.}088540\mathrm{.}8708$D$1\mathrm{.}74164.$ HistoryE$100\mathrm{.}63510\mathrm{.}063560\mathrm{.}3815.$ BBBEE$0\mathrm{.}05610\mathrm{.}0565$F$100\mathrm{.}56$Total weighted bid score$1$ G H $7\mathrm{.}45166\mathrm{.}1.$ Calculate the valued of A to H$.$ Show all formulae and calculations.$[16$ marks$]6\mathrm{.}2.$ Of these three bids, which one would you consider the best. Defend your choice.$[6$ marks$]7.$ Indicate whether or not the following conditions depict the insistence of a contract. Justify each case.a$.$ MD Holdings send an offer to MCX Consultancies who told them that they are happy with everything in the offer letter except one condition that says, MD has intellectual rights to the product they provide to MCX$.$b$.$ Yorights, a community based organization requested that all tenders for supply of vehicles must be submitted by $2$pm on $5$ August $2022.$ Tomms Motors however, sent the tender by courier and it arrived at $2\mathrm{.}01$pm$.$c$.$ Zerox received a verbal reply on a tender they sent to Varsity College accepting their price and specification for printers and photocopiers.