Your commercial project includes a Rise and Fall clause. If the split is 40/60 material/labour) how would you alter the next contract progress claim that is due if during the last quarter the cost of materials increased by 4% due to the rise cost of steel per tonne and the cost of labour rose 5% as a result of an unexpected industrial award? Using the following progress claims for each month in the quarter, work out the increase to each claim and total increase for the quarter. Month Payment Material 40% Labour 60% Increase April $420,000 May $543,000 Jun $785,000

ANS?

Contracts are made up of various documents and as such there may be instances where inconsistencies, errors or ambiguities exist between those documents.

Using the standard contract for your state/territory, identify whether that contract has a contract term and procedure to deal with this situation, and detail the processes to be used in the event of an inconsistency between contract documents.

ANS?

What are Prime Cost and Provisional Sum items? If the actual costs for these items or work are more than what is in the prepared contract, what is the process to adjust the price? Use the sample Home Building Contract for your state/ territory.

ANS?