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Lonsdale Technologies Pty Lid (the Principal) holds a selective competitive tendering process for the construction of a 5000m# factory/warehouse development in Lonsdale, South Australia. Connery

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Lonsdale Technologies Pty Lid (the Principal) holds a selective competitive tendering process for the construction of a 5000m# factory/warehouse development in Lonsdale, South Australia. Connery Contractors Pty Lid (the Contractor) submits the lowest bid in the lump sum amount of $6.518,000 (excl. GST) broken down as follows: Works priced in the Bills of Quantities: $5,199,200 Plus Provisional Sums for: Mechanical Works $716,000 Electrical Works $490,000 Signage $50,000 Plus profit & attendance $62,800 on provisional sums Lonsdale Technologies accepts Connery's tender on 29 Jan 2018 and shortly afterwards the parties sign a head contract based on the Australian Standards AS 4000-1997 General Conditions of Contract with amendments. The following information is inserted in Part A of the Annexure to the contract: Item 7 a): 21% August 2018 Item 7A: Allowance for delay due to inclement weather: 5 working days Item 10 a): Alternative 1 Item 12:5% Item 13 a): Retention monies Item 13 b): 5% Item 13 c): 10% Item 13 f): 50% Item 22: 7 days Item 24: $22,000 per day Item 27: 12 months Item 28 a): 28th day of each month for WUC done to the 27th day of that month Item 31: 7 days Amendments to the contract conditions include: . The definition of qualifying cause of delay in clause 1 states: "qualifying cause of delay means: a) any act, default or omission of the Superintendent, the Principal or its consultants, agents or other contractors (not being employed by the Contractor); or b) other than: i) a breach or omission by the Contractor; ii) inclement weather occurring before the date for practical completion unless the inclement weather exceeds the allowance in Item 7A;iii) industrial conditions or inclement weather occurring after the date for practical completion; and iv) stated in Item 23;" A definition of working day has been added into clause I as follows: "Monday to Friday but excluding statutory public holidays." . The first paragraph in subclause 5.5 has been deleted. The following sentence has been added to subclause 32: "The construction program shall identify a separate activity for an overall *project time contingency' between the planned date of practical completion and the date for practical completion." The following provisions have been added to subclause 34.3: "The Contractor must submit a revised construction program with each EOT claim which shows the impact of all delaying events occurring since the previous version of the program." "Failure of the Contractor to give the Superintendent an EOT claim within 14 days of when the Contractor should reasonably have become aware of the relevant causation occurring will bar the contractor from giving an EOT claim with respect to that cause of delay." Subclause 34.3(b) has been amended to state "14 days" instead of "28 days". Subclause 34.4 states: "Where there are two or more concurrent delays to the WIC and the cause of at least one of those concurrent delays is not a qualifying cause of delay, then to the extent the delays are concurrent, the Contractor shall not be entitled to an EOT. In assessing each EO7 the Superintendent shall disregard questions of whether: (a) WUC can nevertheless reach practical completion without an EOT; or (b) the Contractor can accelerate. but shall have regard to what prevention and mitigation of the delay has not been effected by the Contractor." The second paragraph in subclause 34.5 staes: "Notwithstanding that the Contractor is not entitled to or has not claimed an EOT, the Superintendent may at any time and from time to time before issuing the final certificate direct an EOT in his or her absolute discretion and without being under any obligation to do so for the benefit of the contractor." . The following provision has been added to subclause 34.9: "Delay damages are due and payable to the Contractor in the amount of $15,000 for every working day the subject of an EOT for a compensable cause." . Subclause 41.2 has been deleted. . The following item has been added into Annexure Part A:"Item 7A Allowance for delay due to inclement weather: 5 working days" Since the company was established in 2009, Lonsdale Technologies has been leasing a 3500m' premises in the Lonsdale area. Due to strong sustained orders and projected growth in demand for their products, Lonsdale Technologies has decided to invest in their own premises to which they plan to relocate at the beginning of September 2018. The lease on their existing premises is due to expire at the end of August 2018 and any delay in practical completion to the WUC will cause loss of production to Lonsdale Technologies. As such, liquidated damages in Item 24, Part A of the Annexure have been set at $22,000 per day which may be considered as a reasonable estimate of the loss which Lonsdale Technologies would suffer if the WUC is handed over late. Due to the high global demand for, and long lead-in time for supply of, structural steelwork, Lonsdale Technologies decides to place an order for the supply of the steelwork for the project prior to awarding the head contract. Lonsdale Technologies agrees in the head contract to supply all steel to the site by 3" April 2018 so it is available for the Contractor to commence erection of the steel frame on 4th April 2018. The original contract program (shown in Appendix 1) shows that Connery plans to start work at the site on 5" February 2018 and reach practical completion of the WUC on 7" August 2018. An overall "project time contingency" activity of 10 working days is shown after 7th August 2018 until the date for practical completion on 21st August 2018. The project does not get off to a good start. On 5" February 2018, Connery becomes aware that the demolition contractor, who has been engaged directly by Lonsdale Technologies under a preliminary contract, is still carrying out demolition works at site. Connery immediately gives a notice of delay to the Superintendent under subclause 34.2 of the contract. Connery is given possession of the site on 8" February 2018. On 9" February 2018, Connery submits their first extension of time (EOT) claim to the Superintendent for 3 working days due to the late handover of site possession. Connery prepares the first revised construction program (shown in Appendix 2) which they submit with their EOT claim. The delay in site possession pushes back all the activities on the critical path by 3 working days which results in the date of practical completion being moved to 10" August 2018. Connery is part way through construction when the following events delay progress: . Whilst fabricating the steelwork, the steel fabricator discovers they have made significant errors in working up the shop drawings which causes a delay in the fabrication process. The Superintendent notifies Connery on 30" March 2018 that delivery of the steelwork to site is now expected on 16" April. Connery immediately replies in writing that the late steel delivery will cause an estimated 6 working days delay to the start of the erection of the structural steel framing activity. . Due to the financial collapse of Connery's original concreting subcontractor, the foundations and ground slab activity (which must be finished before the erection of the structural steel framing can start) is not completed until the afternoon of 13th April 2018 (instead of the planned completion of 6th April 2018 shown on the on the first revised construction program). Consequently, the erection of the structural steel framing does not start until 17th April 2018 instead of the planned start of 9th April 2018 as shown on the first revised construction program.On 17th April, Connery submits their second extension of time (EOT) claim to the Superintendent for 6 working days due to the late steel delivery. Connery prepares a second revised construction program which they submit with their EOT claim. Between 2" to 10" July 2018 inclusive, the site is shut down due to prolonged storm conditions. On 3" July 2018, Connery gives a notice of delay to the Superintendent under subclause 34.2 of the contract. On 12" July 2018, Connery submits a third EOT claim to the Superintendent for 7 working days due to inclement weather. Notably, this is the first EOT claim submitted by Connery for inclement weather on the project. Connery prepares a third revised construction program which they submit with their EOT claim. On 26th June 2018, Connery gives the Superintendent reasonable advance notice in writing that they need further detailed design information with respect to the ceilings and floors by 3"d July otherwise practical completion of the works will likely be delayed. The Architect does not supply the required details to Connery until 11" July that ends up causing a delay of 3 working days to the internal finishes activity which is on the critical path. On 19" July 2018. Connery submits a fourth EOT claim to the Superintendent for 3 working days due to the late provision of the internal finishes design. Connery prepares a fourth revised program which they submit with their EOT claim. On 5" September 2018, the Superintendent issues the certificate of practical completion which states that the WUC reached practical completion on 5" September 2018

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