THE COPPERBELT UNIVERSITY

SCHOOL OF BUILT ENVIRONMENT

DEPARTMENT OF ARCHITECTURE/BUILDING

PROJECT MANAGEMENT – ESA/B 520

6 February 2008

ASSIGNMENT 2
HANDING IN DATE: 15 FEBRUARY 2008 at 17 hrs

PART 1 - 40%
KK General Contractors were awarded a contract in the Konkola Copper Mines (Konkola
Division) to undertake a wide range of civil works. Realising that it needed a lot of concrete
sand for concrete works, KK accepted an offer from Grand Suppliers in terms that Grand
Suppliers would supply about 2 million tons, or ‘such quantity as may be required’ by
Minestone.

To formalise the contract the two parties used the JCT Measured Term Contract (1998
Edition). Among the entries in the Appendix of the contract were the following:
 Minimum value of any Order to be issued
 Maximum value of any order to be issued
 Approximate anticipated value of work to be carried out under this contract

Having taken delivery of some sand (about 10%) but nothing like 2 million tons, KK notified
Grand suppliers that it would in future be purchasing its requirements of sand from other
suppliers.

A dispute has erupted between KK and Grand Suppliers with regard to KK’s decision. You
have been called in to mediate in the dispute and advise the parties. Provide a written report
articulating contractual issues at hand. The report should be an average of 2000 words.

PART 2- 30%

For the Separated System of procurement, three types of contracts are mainly used. Explain
the following types of contracts:
1. Lump sum contracts
2. Measurement contracts
3. Cost reimbursement contracts
a. Cost plus percentage fee
b. Cost plus fixed fee
c. Cost plus fluctuating fee
d. Cost plus reimbursement based on a target cost.

PART 2 - 30%

1. What is a Form of Contract?

2. The ZIA Standard Form of Contract is mainly divided into three parts, namely
Articles of Agreement, Conditions of Contract and Appendix. Briefly and precisely
outline the major contents of these three parts.
3. Give a critical analysis of the use of this form of contract in the current Zambian
Construction Industry.

C. CHIFUNDA
Lecturer