Question 1 - Contractual Arrangements Based on the three case situations provided under Appendix A, answer the following questions:

(a) In each case, recommend and justify to the client a suitable type of contractual arrangement for the project and describe its procedures. (24 marks)

(b) Indicate the advantages and disadvantages in using your proposed choice in Case 1 only. (8 marks)

Appendix A

Case 1 - Construction of MRT station, tunnels and viaduct A public transport authority is calling for tender for the construction of a Mass rapid Transit (MRT) station with tunnels as well as sections of a viaduct located in the eastern part of Singapore. The underground station will be located along a main road where there are many utilities under the road, with multiple traffic diversions. Hence, there will be a need to realign the utilities. The contract period is 9 years and the contract value is estimated at $750 million. Tenders for this contract will only be considered from a pre-qualification of tenderers who have suitably extensive experience in such works in a major project. The underground station will be located along a main road where there are many utilities under the road, with multiple traffic diversions. Hence, there will be a need to realign the utilities. Work is expected to start in the fourth quarter of 2021. Passenger service at the station is projected to start in 2030. As earth retaining and stabilising structure are expected, deep excavation works for the MRT station will be carried out under challenging ground conditions. Specially-designed machinery will be needed to carry out the excavation work. The project also requires patented construction and design, and other forms of specialisation. The appointed contractor will have to monitor the works closely to ensure that these works are carried out safely so as to minimise any inconvenience to the public. Vertical noise barriers will be installed on the viaduct to lessen the impact of traffic noise on the residence nearby. Due to the heavy schedule and the project complexity, the authority intends to keep contractual links as simple as possible and leave the project co-ordination to the contractor.

Case 2 - Development of a Community Club by the Ministry of Community Development, Youth and Sports The Ministry of Community Development, Youth and Sports is calling for tender for the construction of a community club located in the north-eastern part of Singapore. The scope of works included the proposed erection of a 4-storey community club with a basement carpark. The project will be integrated with a senior care centre. The contract value is estimated at S$30 million. To support this project, the ministry has decided to award separate contracts to consultancy firms to provide project management, architectural, structural, mechanical and electrical design and quantity surveying consultancy services to support this project.

Case 3: Integrated Facilities Management services for a Polytechnic A local polytechnic is calling for tenders for the award of a contract to provide integrated facilities management and related works and services at its main campus. The contract period is five years with an option to renew for another two years. The scope of the contract includes the maintenance and servicing of building and structural works, mechanical and electrical services and landscaping works. The estimated contract value is $51 million.