BPM109

Timed Online Assignment – July Semester 2021

Contract Administration
Tuesday, 23 November 2021 1:00 pm - 3:30 pm

____________________________________________________________________________________

Time allowed: 2.5 hours

____________________________________________________________________________________

INSTRUCTIONS TO STUDENTS:

1. This Timed Online Assignment (TOA) contains FOUR (4) questions and comprises
FOUR (4) pages (including cover page).

2. You must answer ALL questions.

3. If you have any queries about a question, or believe there is an error in the question,
briefly explain your understanding and assumptions about that question before
attempting it.

4. You MUST submit your answers via Canvas (similar to TMA submission) at the
end time of this TOA (as stated on this cover page). The 15 minutes grace period as
shown on Canvas is strictly meant for technical issues encountered during
submission. Thereafter, you will not be able to submit your answers and you will be
considered as having withdrawn from the course. No appeal will be allowed.

5. You are to include the following particulars in your submission: TOA Course Code,
your Full Name, and SUSS PI Number. Name your submission file as
TOACourseCode_FullName_StudentPI. Use underscore and NOT Space. Example:
TOAXYZ_RaphaelLee_T1923161 (omit D/O, S/O).

6. Your submission should consist of only one file and must not exceed 500MB in size.
The file must be a Microsoft Word file saved in .doc or .docx format. All answers are
to be typed. Flowcharts and graphs may be scanned or photographed and embedded
in the Word file provided it does not exceed the file size limit of 500MB. Images of
handwritten answers will not be marked.

BPM109 Copyright © 2021 Singapore University of Social Sciences (SUSS) Page 1 of 4

TOA – July Semester 2021
7. To prevent plagiarism and collusion, your submission will be reviewed by Turnitin.
The Turnitin report will only be made available to the marker and you will not be
able to view it.

8. The University takes plagiarism and collusion seriously, and your Turnitin report will
be examined thoroughly as part of the marking process.

BPM109 Copyright © 2021 Singapore University of Social Sciences (SUSS) Page 2 of 4

TOA – July Semester 2021
Answer all questions. (Total 100 marks)

Question 1

(a) Define the term “contract” and explain TWO (2) purposes of contract
administration.
(5 marks)

(b) A client wants to amend some of the clauses in a standard form of contract that
is to be used in a particular tender. Advise the client the issues to consider when
amending clauses to the contract.
(5 marks)

(c) A developer wants to engage a contractor to construct a large amusement park.

Advise the developer on a suitable tendering method and discuss the tendering
process that involves a two-envelope system.
(15 marks)

Question 2

(a) A property developer wants to know why a main contractor cannot object to a
nomination of a Designated sub-contractor (DSC) but can object to the
nomination of a Nominated sub-contractor (NSC). As the developer’s advisor,
explain the difference between a DSC & a NSC.
(8 marks)

(b) In the context of law, explain what damages are. Discuss why liquidated damages
clauses are included in construction contracts.
(8 marks)

(c) Assessing how concurrent delays will affect the making of extension of time
(EOT) and determining delay damages are complicated processes. Discuss any
THREE (3) approaches that can be adopted in EOT assessments, and give
ONE (1) example for each of the approaches.
(9 marks)

Question 3

(a) Explain why variation clauses are necessary in contracts.

(3 marks)

(b) Variation works are almost inevitable in construction projects. Discuss

FOUR (4) methods of valuing variations. Illustrate each method with an example.
(12 marks)

BPM109 Copyright © 2021 Singapore University of Social Sciences (SUSS) Page 3 of 4

TOA – July Semester 2021
(c) Calculate the payment due to a main contractor in a particular month by preparing
payment certificate no. 3 with the information given below:

Contract sum $ 8,700,000

Retention on work done 10%
Retention on material on-site 20%
Limit of retention 5% of contract sum
Work completed to-date $ 3,960,000
Variations (Nett. omission) $ 150,000
Materials delivered to site $ 250,000
Materials ordered but not delivered to site $ 300,000
Previous payment to contractor $ 2,900,000
(10 marks)

Question 4

(a) A foreign worker injured while working at a construction site wants to claim
compensation and seeks you for advice. Advise him on the differences when
claiming under common law and the Work Injury Compensation Act.
(12 marks)

(b) Identify and briefly discuss THREE (3) types of insurance policies that are
required in construction contracts.
(6 marks)

(c) Discuss why indemnity clauses are necessary in construction contracts.

(7 marks)

----- END OF PAPER -----

BPM109 Copyright © 2021 Singapore University of Social Sciences (SUSS) Page 4 of 4

TOA – July Semester 2021