Q1a [4 marks]

Ans: After getting the notification from the Client, the Project Manager checks the
design submitted from the Contractor (clause 21.1) according to the Scope
(clause 20.1) and reveals the Scope provided by Client for the material of the
flooring in the Scope (clause 11.2(16)) in the Contract Data Part 1 has not been
specified and defined. Then Project Manager needs to check the submitted
design for the material of the floor if it complies with the Scope and applicable
law (clause 21.2). Since the design has been submitted by the Contractor, the
Project Manager must reply the Contractor (clause 13.4) within the period
for reply (clause 13.3). Due to the requirement from the Client not confirmed, the
Project Manager should withhold the acceptance of the submitted design under
clause 13.8 and notify the Contractor to extend the period for reply (clause 13.5)
to wait for the final confirmation from the Client.

Q1b [5 marks]

Ans: According to Clause 21.2, there is no reason for not accepting the
Contractor’s design. Therefore, the Project Manager cannot reject the
Contractor’s design. However, due to the final requirement from the Client, the
Project Manager notifies the Contractor the ambiguity of the material of the floor
under clause 17.1 and does not accept the design (clause 13.4) and reply to the
Contractor for the reason of flooring material even if the submitted design
complies with the Scope and the applicable law (clause 21.2). Then the Project
Manager will instruct the Contractor to stop the work (clause 34.1 and clause
60.1(4)), change the Scope or a Key Date (clause 14.3) through separated
notification (clause 13.7). The Contractor should obey the instruction given by the
Project Manager under clause 27.3. Owing to the change of Scope, the cost and
time from the Contractor may be increased because of re-designing the bridge.
Then the Contractor should give an early warning to the Project Manager (clause
15.1) and the change may introduce compensation event under clause 61.3.
After receiving the early warning from the Contractor, the Project Manager
prepares a first Early Warning Register and issues to the Contractor (clause
15.2). After reviewing the notification from the Contractor, if the Project Manager
confirms it is compensation event, then Project Manager instructs the Contractor
to submit a quotation (clause 65.1). The Contractor should submit the quotation
under clause 65.2. Finally, the Project Manager will assess the compensation
event under the clause 63.10.

Q1c [7 mark]

Ans: The Contractor has already submitted the design to the Project Manager for
3 weeks (clause 21.1) that complies with the Scope and applicable law (clause
21.2). According to the period for reply defined in the Contract Data Part 1, the
Project Manager should reply the Contractor within the period for reply (clause
13.3) to accept or decline the design (clause 13.4). But up to now, no response
was received from the Project Manager and no notification of extending period
for reply (clause 13.5) was received from the Project Manager during these 3
weeks. As an experienced Contractor, the Contractor should notify the Project
Manager of the failure to response in time for the acceptance status of the
submitted design and give early warning to the Project Manager (clause 15.1) for
the additional costs and project delay due to the delay of reply and notify
compensation event under clause 60.1(6). The Project Manager should reply the
notification within the period for reply (clause 13.3) and prepares a first Early
Warning Register and issues to the Contractor (clause 15.2). Since the
Accepted Programme (clause 11.2(1)) was submitted to Project Manager (clause
31.1 & 31.2), the Contractor should revise the Accepted Programme (clause
11.2(1)) to address the change due to the above compensation event (clause
32.1) and submit to the Project Manager for acceptance (clause 32.2). The
Project Manager should reply the Contractor for the revised programme within
two weeks (clause 31.3).

However, the Contractor in this case did not give an early warning to the
Project Manager (clause 15.1) after the period for reply. The Project Manager
instructs the Contractor to submit the quotation (clause 61.5) and the Contractor
submit the quotation within three weeks under clause 62.3. The Project Manager
will assess if the compensation event is a Disallowed Cost or not under clause
63.7 & 11.2(26).
On a separate issue, the Scope provided by the Client specifies all exposed steel
is to be painted in a specific shade of purple. The Contractor accidentally typed in
a wrong product number when ordering, meaning that blue paint is ordered
instead of the required purple paint. The wrong product number was referred to
on the Contractor’s design and subsequent revised programme, both accepted
by the Project Manager. Half of the bridge is painted blue before
the Supervisor notices this and notifies a Defect to the Contractor.

Q1d [4 mark]

Ans: Based on the clause 20.1, it is the responsibility for the Contractor to
Provide the Works in accordance with the Scope. At the same time, the
Contractor is required to make sure to deliver the works with quality in time. In
order to achieve this, the Contractor should submit quality policy statement under
clause 40.2. The submitted design monitored by the quality management system
under clause 40.1 should comply with the Scope and applicable law (clause 21.1
and 21.2). At the same time, the subsequent revised programme (clause 32.2 is
also monitored by the quality management system under clause 40.1 as well.

According to the clause 11.2(6), when the deliverable by the Contractor is not
accordance with the Scope, then it will a Defect. Apart from this, the
responsibility of the Contractor to Provide the Works in accordance with the
Scope cannot be changed by the acceptance of the design work based on clause
14.1. Since this Defect was noticed by the Supervisor who notified this Defect to
the Contractor, it is the responsibility for the Contractor to correct the Defect
under the clause 44.1. Then the Contractor notifies Early Warning to the Project
Manager for the Defect under clause 15.1. The Contractor should clear the
Defect before the end of the defect correction period under clause 44.2;
otherwise, the cost of correcting the Defect by other people instructed by the
Project Manager will be paid by the Contractor under clause 46.1.

During a visit to the Site the Client’s Chief Executive decides that the contrasting
blue and purple is acceptable and advises the Project Manager to make this
happen.
Q1e [4 mark]

Ans: After the Supervisor noticed the Defect (clause 11.2(6)), he notifies the
Defect to the Contractor under clause 13.7. Then the Contractor notifies Early
Warning to the Project Manager for the Defect under clause 15.1. According to
the clause 44.1, it is the responsibility for the Contractor to correct the Defect in
accordance with the Scope under clause 20.1. Before any rectification is
performed, the Supervisor and the Contractor notify the Client to pay a visit on
Site under clause 11.2(17) to comment how to correct the Detect under clause
43.2. As mentioned above, the Client’s Chief Executive decides that the
contrasting blue and purple is acceptable during the visit on Site. Owing to the
final decision of Client’s Chief Executive, the Project Manager notifies the
Contractor the Defect is accepted under clause 13.7 & 45.1. After that, the
Project Manager instructs the Contractor to change the Scope of bridge painted
half of blue and half of purple under clause 14.3 for accepting the Defect under
clause 60.1(1). Finally, the Project Manager notifies the Completion of the
Defect item under clause 11.2(2).