Monitor costing systems on medium rise building and construction projects

Student Name Student Number
Unit Code/s & Name/s CPCCBC5002A – Monitor costing systems on medium rise building and construction projects
Assessment Type ☐ Case Study ☒ Assignment ☐ Project ☐ Other (specify)

Assessment Name Assessment 3: Rise and Fall, Variations and Project Cost Report Assessment Task No. 3
Assessment Due Date Date submitted
Assessor Name
Student Declaration: I declare that this assessment is my own work. Any ideas and comments made by other people have been acknowledged as references. I understand that if this statement is found to be false, it will be regarded as misconduct and will be subject to disciplinary action as outlined in the TAFE Queensland Student Rules. I understand that by emailing or submitting this assessment electronically, I agree to this Declaration in lieu of a written signature.
Student Signature Date
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Instructions to Student General Instructions:
For this assessment, there are three (3) tasks to be completed. You must adequately address each of the tasks which follow.
You need to answer all the following questions. Together with your answers, you will need to supply, wherever possible, literature such as manufacturer’s information to support your answers. No additional literature to support your answers will result in a ‘Not Satisfactory’ result, even if your written answers are accurate.
You should supply your answers on new sheets of paper, either typed or neatly hand written, with your answer clearly numbered. Illegible work submitted will be returned with a ‘Not Satisfactory’ result.
Assessment Criteria:
To achieve a satisfactory result, your assessor will be looking for your ability to demonstrate the following key skills/tasks/knowledge to an acceptable industry standard:
• Interim payment claims and rise and fall calculations are prepared for the contractor and subcontractors.
• Budget cost of the network is compared to actual costs in the tender calculations.
• Rise and fall clause calculations are undertaken and financial controller is advised of variations.
• Reasons for any cost variations are analysed and identified.
• Actual costs are compared with estimates at the completion of the job and a report is compiled detailing future actions.
• Remedial action is taken and recorded as necessary to retain contract financial compliance.
• Organisational rates are adjusted as required, based on the final cost report and current movements in prices and rates.
Number of Attempts:
You will receive up to two (2) attempts at this assessment task. Should your 1st attempt be unsatisfactory (U), your teacher will provide feedback and discuss the relevant sections / questions with you and will arrange a due date for the submission of your 2nd attempt. If your 2nd submission is unsatisfactory (U), or you fail to submit a 2nd attempt, you will receive an overall unsatisfactory result for this assessment task. Only one re-assessment attempt may be granted for each assessment task. For more information, refer to the Student Rules.
Submission details Insert your details on page 1 and sign the Student Declaration. Include this template with your submission.
Online submission via Connect upload
• TAFE Queensland Learning Management System: Connect url: https://connect.tafeqld.edu.au/d2l/login
• Username; 9 digit student number
• For Password: Reset password go to https://passwordreset.tafeqld.edu.au/default.aspx>

Instructions for the Assessor Work, Health and Safety: A work health and safety check of the assessment environment is to be conducted prior to the assessment and any hazards addressed appropriately.

Materials to be supplied:
• Learning Guide
• Prepared Construction Schedule for Bellbrook Theatre Project
• Estimator’s Net Cost Summary for Bellbrook Theatre Project
• Microsoft Excel Templates: Cash Flow Forecast
Note to Student An overview of all Assessment Tasks relevant to this unit is located in the Unit Study Guide.

 
INTRODUCTION

You have recently taken over as Construction Project Manager for a medium sized construction project. Bellbrook Professional & Theatre Centre features a ground-level cinema and 3 storey office tower. The expected construction schedule is nine (9) months, or 40 weeks.
As part of your role, you are responsible for:
1. Scheduling and monitoring construction costs
2. Creating and tracking cash flow projections
3. Keeping on top of monthly payment claims, based on the percentage of works completed each month. The anniversary of the date of commencement of work under the contract is the 28th of each month.

The resources you will require for this assessment are:
• Learning Guide
• Prepared Construction Schedule for Bellbrook Theatre Project
• Estimator’s Net Cost Summary for Bellbrook Theatre Project
• Building Elements Codes for Bellbrook Theatre Project
• Your own documents: S Curve, Project Expenditure Schedule, Cash Flow Forecast, Payment Claim Schedule (Assessments 1 and 2)
(Note: you will need a Microsoft compatible operating system to complete this assessment)

Task 3.1: Rise and fall claim

At week 28 of the Bellbrook Centre project, you have been informed by the painter that the price of paint will increase by 3.2%. A check of the sub-contract agreement shows that the Painter is entitled to this claim.

You are checking the accuracy of the percentage increase claimed prior to seeking approval from the Managing Director to pay the increased materials cost.

The Building Materials Index (BMI) figure provided with the Painter’s tender was 171.2.

The BMI figure for the 1st of June is 176.7

A check of the labour to materials ratio for the Painter shows 80% labour to 20% materials.

The Painter’s tender was for $114,300 and of the Painter’s tender, materials only is subject to the price increase.

a) Using the following formula, calculate the percentage increase.

June BMI – Tender BMI x 100 = x%

Show your working below:

The percentage increase is % (to one decimal point only, eg 5.6)

b) Calculate the value of the materials increase for the Painter’s claim.

Show your working below:

$ (GST exclusive)

Task 3.2 Variations

Calculate the total value of variations to contract for the project from the following information.

Client requested variations – (exclusive of builder’s margin of 10%) approved at week 21 of the project.

a) Lift interior upgrade – an addition of $3,760 – the temporary interior will remain in place until week 45 of the project and then replaced with the upgraded interior and temporary protective curtains.
b) External lighting – a reduction of $745 – client has selected a fitting that is not as flash but more robust to vandal attacks.
c) Taps to hand basins – an addition of $1,160 – the client has selected another model that will help to reduce water wastage.
d) Floor tiles – an addition of $894 – the client selected a slightly darker shade of tile.

Total value of the addition to the contract for client requested variations:

Show your working below:

$ (GST exclusive)

Task 3.3: Project Cost Report

Using the costs from your Project Expenditure Schedule Summary and cash flow forecasts, prepare a Project Cost Report for week 30 of the Bellbrook Theatre Project. This report is for the Managing Director’s sign off and the purchasing and accounting team’s information.

Include the following tasks in your report:

a) Prepare a brief outline of the variations and the reasons for the variations.
b) In your report, include the adjusted estimated GST exclusive cost for the project.
c) Comparing Actual Costs to the Projected/ Budgeted costs, note any problems that occurred during construction. Recommend any remedial actions to be taken to maintain your contractual and financial obligations.
d) Detail any adjustments to organisational rates, based on current movements in prices.
e) As part of your Quality Management process, recommend any continuous improvement strategies for the benefit of future projects.