How additional cost be incorporated in total cost of build


Assessment Task - Activity 1.2 - Allowances, Drawings and Variation

Part A:

Complete the administrative processes outlined below in order to allow for adjustments to finances and timelines in accordance figures below from a residential/domestic building contact for project no.33837 Leary Ave in accordance with the project documentation provided in the project portfolio. You will need to access both project documents PN 33837 Leary Ave - Project Documentation and PN 33837 Leary Ave - Plan Pack.

The total cost of the project is $675,000. A percentage of this total amount is to be paid at each stage of development as outlined below. Calculate the amount to be paid at each stage of development based on the percentages listed.

When the contract was originally signed on 30/03/2016, an allowance had been made for the cost of the bathroom fixtures and fittings. This allowance was based on the cost of a standard bathroom fit out. However, on 14/05/2016, Cheryl contacted you by phone to say that she would like to use copper bathroom fixtures instead.

Later that day you rang the bathroom supplier to discuss these changes and was told that the difference in cost between these materials would be $8,500. The supplier also stated that the materials would need to be shipped in from Italy and that they would arrive on 21/06/2016. Based on the delivery date provided by the supplier, you predict that this will push the settlement date back by 14 days.

You are now required to prepare a report answering the following questions:

How should this additional cost be incorporated into the total cost of the build?

What action(s) must be taken if the cost cannot be incorporated in this way?

Request the appropriate parties to authorize an extension of time by drafting an email you would send to the parties. The email draft can be within the report, it does not have to be a separate document

How will I be assessed for this task?

For this task, you are required to submit the following:

Completed report covering above requirements

Report must be typed and formatted

Part B:

The agreed upon colour of the paint for the internal walls is listed in the contract as, 'Morning Moon.' After considering the impact of the new copper fixtures, Cheryl emailed you on the 19th of May asking to change this to, 'Dogwood Blossom' as it better suits her new vision for the décor.

The paint order hasn't been fulfilled by the supplier yet so the change can be made.

You are now required to write a report and answer the following questions:

Is this considered a variation or a non-cost variation?

Should this change be documented? Why / why not?

Create a diary of all on-site communication and events that have been outlined in including communications with clients, contractors, and suppliers.

How will I be assessed for this task?

For this task, you are required to submit the following:

Completed report covering above requirements

Report must be typed and formatted

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