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Assignment Task The Scenario Following approval of your previous IC Paper, Flatout Developments subsequently made a bid to purchase the land, which wa

Assignment Task

The Scenario

Following approval of your previous IC Paper, Flatout Developments subsequently made a bid to purchase the land, which was accepted by the vendor. You are on track to receive a sizable bonus this year!

With contracts for sale having been exchanged and the 10?posit paid to the vendor, the transaction is scheduled to settle in three months’ time.

On the back of this exciting news, your manager has tasked you with preparing another IC Paper. This time you will be requesting funding to submit a development application and undertake the tender design so that the works can be tendered with the intention of entering into a construction contract with the successful tenderer.

The purpose of this paper is to outline the process for taking the development through the planning, design and pre-construction (tendering) phases.

To maintain quality and ensure that the Investment Committee are familiar with a standardized form of document at IC meetings, again your IC Paper must follow a somewhat rigid process

1. Executive Summary

  • Describing the project history, your recommendation for this paper and what you are seeking approval for
  • A summary of the tasks to be completed, the associated deliverables & outcomes and what will happen upon completion of the tendering phase
  • The recommended budget for completing the DA submission, tender design and contractor procurement
  • A high-level summary of the risks associated with this next phase of the project

2. Planning pathway

  • Whether the development will submit a Development Application through the local council or whether it will pursue a Development Application as a State Significant Development Application
  • Your recommended pathway to achieve a development consent
  • A summary of the documentation that is required to be submitted as part of the development application
  • The consultants that you recommend engaging to assist with the submission of a DA (and all required documentation)
  • A summary of expected consent conditions that the consent authority will attach to an approval of your DA

3. Design

  • What stages of design will be completed to allow you to submit the DA and commence the tender process?
  • Your recommended pathway for completing these design phases
  • Your recommendation of consultants required to be engaged to undertake design works and what they will produce
  • Your recommendation for controlling cost through the design phase as well as facilitating tendering

4. Contractor Procurement 

  • You are to outline your strategy for tendering the construction works, including who you will tender to, what will be tendered and how the tender process will be carried out
  • You are to recommend a procurement route, being construct only, design & construct, managing contractor or ECI
  • You are to outline how the tender submissions shall be assessed
  • You are to give a brief outline of the current state of industrial relations within the construction industry

5. Headline Contract Terms 

  • You are to form a position on the following headline contract items:
  • A liquidated damages rate (based on the information provided in Assignment 1)
  • A date for PC (based upon a start date of 18 months from today)
  • A rate for preliminaries and margin to be applied to any contract variations (based on your knowledge of what is currently being seen in the market)
  • The duration of the Defects Liability Period

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