Course Title: Select and prepare a construction contract

Part B: Course Detail

Teaching Period: Term2 2021

Course Code: BUIL5984C

Course Title: Select and prepare a construction contract

School: 174T School of VE Engineering, Health & Science

Campus: City Campus

Program: C5256 - Diploma of Building and Construction (Building)

Course Contact: Thierry Demathieu, Program Manager

Course Contact Phone: +61 3 9925 8359

Course Contact Email: thierry.demathieu@rmit.edu.au


Name and Contact Details of All Other Relevant Staff

Nhu Nguyen
Teacher
Phone:  +61 3 9925 4987
Email:  nhu.nguyen@rmit.edu.au 



Nominal Hours: 40

Regardless of the mode of delivery, represent a guide to the relative teaching time and student effort required to successfully achieve a particular competency/module. This may include not only scheduled classes or workplace visits but also the amount of effort required to undertake, evaluate and complete all assessment requirements, including any non-classroom activities.

Pre-requisites and Co-requisites

Nil

Course Description

This unit of competency specifies the outcomes required to select and prepare appropriate construction contracts, including the sections, clauses and conditions for low rise construction projects. The ability to interpret complex documents, communicate clearly and succinctly and negotiate are essential skills.


National Codes, Titles, Elements and Performance Criteria

National Element Code & Title:

CPCCBC4003A Select and prepare a construction contract

Element:

1. Identify and analyse the essential elements, sections and clauses of a business contract.

Performance Criteria:

1.1. Various types of building and construction contracts  are identified and the appropriate application of each type is analysed.

1.2. Essential terms and elements of a valid contract are identified and analysed.

1.3. Importance of identifying an intention to create legal relations is analysed.

Element:

2. Select an appropriate contract for the works to be undertaken.

Performance Criteria:


2.1. A contract, appropriate for the type of construction, is accurately selected.

2.2. Range of documents  that collectively make up a contract is accurately identified and prepared.

2.3. Requirements associated with an offer and acceptance of a contract are accurately identified and applied.

2.4. Capacity of the parties to form a binding agreement in the form of a contract is confirmed.

2.5. Factors associated with the parties' consent to a contract are identified and applied.

Element:

3. Prepare the contract.

Performance Criteria:

3.1. Expert advice is sought as required in the preparation of the contract.

3.2. Factors leading to the termination of a contract  are defined, analysed and assessed during the preparation of the contract.

3.3. Contract rise and fall amounts are accurately calculated during the preparation of the contract.

3.4. Schedule of progress payments is assessed and included in the preparation of the contract.

3.5. Processes for applying for extensions of time are included in the preparation of the contract.

3.6. Final contract is prepared in consultation with relevant personnel and in accordance with the accepted processes of the organisation and legal requirements.

Learning Outcomes


Refer to elements
  


Details of Learning Activities

Students will be involved in the following learning activities to meet requirements for this

competency:

• Face to Face classes

• Simulated Workplace Learning

• Online learning via Canvas

• Other forms of structured teaching and learning

Students will be observed and assessed through their planned activities throughout the duration of the course.


Teaching Schedule

Week 1

Topics

  • Introduction to Course
  • Assessment Requirements
  • Types of Contracts
  • Elements of a Contract
  • Rights and Liabilities
  • Contract Terms and Procedures
  • Breach
  • Legislative Requirements
  • Assessment Task 1 released

Week 2

Topics

  • Contract Selection
  • Documentation
  • Offer and Acceptance
  • Capacity
  • Consent
  • Assessment Task 1 due
  • Assessment Task 2 released

Week 3

Topics

  • Contract Preparation
  • Termination
  • Rise and Fall
  • Progress Payments
  • Extension of Time
  • Steps to Fill in a Final Contract
  • Assessment Task 2 due

Week 4

Topics

  • Assessment Task 3: Role Play – In-Class Assessment


Learning Resources

Prescribed Texts


References


Other Resources

Students will be able to access course information and learning materials through myRMIT and may be provided with additional materials in class. Lists of relevant reference books, resources in the library and accessible Internet sites will be provided where possible. During the course, you will be directed to websites to enhance your knowledge and understanding of difficult concepts.


Overview of Assessment

This unit of competency could be assessed by the selection and development of appropriate contracts, which meet organisational and industry standards and relate to low rise building structures. Assessment will incorporate a variety of methods including written, oral, practical tasks and activities.

Assessment Tasks

Students must achieve satisfactory in each of the following assessment tasks to demonstrate competent.

Assessment 1 Contract Checklist
Assessment 2 Contract Selection
Assessment 3 Contract Clarification Role Play


Assessment Tasks

Assessments                                                                   

Assessment 1:  Contract Checklist

Assessment 2: Contract Selection

Assessment 3: Contract Clarification Role Play


The final result of this course will be competency (C) once you have achieved satisfactory in all three assessments. 



Assessment Matrix

COMPETENCY ASSESSMENT MAP


Element 

Performance criteria 

 

 

 

 

 

Assessment 

Task 1: Contract Checklist 

Assessment 

Task 2: Contract Selection 

Assessment 

Task 3: Contract Clarification 

1. Identify and analyse the essential elements, sections and clauses of a business contract. 

1.1. Various types of building and construction contracts are identified, and the appropriate application of each type is analysed.  

1, 2, 3, 4, 6 

 

 

2a 

1.2. Essential terms and elements of a valid contract are identified and analysed. 

5, 15 

11 

2b 

1.3. Importance of identifying an intention to create legal relations is analysed. 

5, 7 

11 

2b 

1.4. Rights and liabilities of parties under a contract are identified and analysed. 

7 

11 

2c 

1.5. Common building contract terms and procedures are identified and applied. 

6 

11 

 

1.6. Circumstances that bring about a breach of contract are identified and analysed. 

9 

11 

2d 

1.7. Legislative requirements are identified and applied. 

12 

11 

2e 

2. Select an appropriate contract for the works to be undertaken. 

2.1. A contract, appropriate for the type of construction, is accurately selected. 

11 

1 

 

2.2. Range of documents that collectively make up a contract is accurately identified and prepared.  

10 

2 

 

2.3. Requirements associated with an offer and acceptance of a contract are accurately identified and applied. 

5, 15 

3 

 

2.4. Capacity of the parties to form a binding agreement in the form of a contract is confirmed. 

13 

4 

2f 

2.5. Factors associated with the parties' consent to a contract are identified and applied. 

14 

5 

2g 

3. Prepare the contract. 

3.1. Expert advice is sought as required in the preparation of the contract. 

16 

6 

 

3.2. Factors leading to the termination of a contract are defined, analysed and assessed during the preparation of the contract.  

6 

7 

2h 

3.3. Contract rise and fall amounts are accurately calculated during the preparation of the contract. 

6, 12 

8 

 

3.4. Schedule of progress payments is assessed and included in the preparation of the contract. 

6 

9 

2i 

3.5. Processes for applying for extensions of time are included in the preparation of the contract. 

6 

10 

 

3.6. Final contract is prepared in consultation with relevant personnel and in accordance with the accepted processes of the organisation and legal requirements. 

16 

1 - 11 

 

 

 

 

 

 


Range Statement   

 

Assessment 

Task 1: Contract Checklist 

Assessment 

Task 2: Contract Selection 

Assessment 

Task 3: Contract Clarification 

Building and construction contracts relevant to the sector and organisational needs may include:  

 

 

 

  • Australian standard contracts (including the AS2124 and AS4000 series) 

1 – 4 

 

 

  • Construction Industry Contract (CIC) suite 

1 – 4 

 

 

  • contracts required or supplied by regulatory authorities or state or territory legislation 

1 – 4 

 

 

  • individual organisational contracts 

1 – 4 

 

 

  • Joint Contracts Committee (JCC) suite 

1 – 4 

 

 

Range of documents includes:  

 

 

 

  • equipment, site accommodation and services information 

10 

2 

 

  • human resource projections 

10 

2 

 

  • materials lists 

10 

2 

 

  • plans, drawings and specifications 

10 

2 

 

  • project timelines 

10 

2 

 

  • schedules. 

10 

2 

 

Termination of a contract includes definitions and applications of:  

 

 

 

  • abandonment of a contract 

6 

7 

 

  • conditions for completion at the cost of the contractor 

6 

7 

 

  • effect of ousting the contractor from the building or construction 

6 

7 

 

  • relevant legislation and contract provisions 

6 

7 

 

  • repudiation of a contract by one party and its agreed definition 

6 

7 

 

  • unreasonable or vexatious notice. 

6 

7 

 

 

 


Required Skills   

 

Assessment 

Task 1: Contract Checklist 

Assessment 

Task 2: Contract Selection 

Assessment 

Task 3: Contract Clarification 

communication skills to: 

 

6 

 

  • enable clear and direct communication, using questioning to identify and confirm requirements, share information, listen and understand 

 

6 

1 

  • facilitate effective communication by phone, facsimile, email or in writing, with members of the organisation and external parties, including clients and subcontractors 

 

6 

1 

  • facilitate drafting detailed responses to queries relating to the finer points of contracts 

 

6 

2a-i 

  • read and interpret: 

 

 

 

  • complex legal text 

1 – 16 

1 - 11 

2a-i 

  • construction schedules 

6 

 

2a-i 

  • contracts 

1 – 16 

 

2a-i 

  • reports 

10 

1 - 11 

 

  • specifications 

10 

1 - 11 

2a-i 

  • use language and concepts appropriate to cultural differences 

 

 

1 

  • use and interpret non-verbal communication 

 

 

1 

  • written skills to prepare a construction contract, including completing memos, schedules and evaluative reports and communicating complex ideas and alternatives 

 

1 - 11 

 

contractual arrangement problem solving 

 

 

2a-i 

negotiation with construction clients 

 

 

1 

numeracy skills to apply calculations, including rise and fall amounts applicable to changed contract circumstances. 

 

8, 9 

2i 

 


Required Knowledge   

 

Assessment 

Task 1: Contract Checklist 

Assessment 

Task 2: Contract Selection 

Assessment 

Task 3: Contract Clarification 

definitions and interpretations commonly applied to contracts 

2, 6 

 

 

legal meanings of terms and clauses in building and construction contracts 

2, 6 

 

 

relationships between the organisation and its clients 

16 

 

 

various contract types and the circumstances they cover. 

1 – 4 

 

 

 

 


Critical Aspects of Evidence 

Describe how assessments meet the critical aspects of evidence 

It is essential that competence is demonstrated in the relevant aspects of contract selection and insertion of appropriate clauses, including rise and fall and progress payments. 

A person who demonstrates competency in this unit must be able to provide evidence of the ability to: 

  • select the right contract for the particular project 

Assessment 2 – Contract Selection 

  • select appropriate clauses and conditions within the contract 

Assessment 1 – Contract Checklist 

Assessment 2 – Contract Selection 

  • identify causes of a breach of contract 

Assessment 1 – Contract Checklist 

Assessment 2 – Contract Selection 

Assessment 3 – Contract Clarification 

  • specify requirements for the offer and acceptance of a contract 

Assessment 2 – Contract Selection 

  • specify requirements for the termination of a contract 

Assessment 1 – Contract Checklist 

Assessment 3 – Contract Clarification 

  • accurately calculate rise and fall amounts 

Assessment 2 – Contract Selection 

  • specify schedule for progress payments 

Assessment 2 – Contract Selection 

  • specify requirements for extensions of time 

Assessment 2 – Contract Selection 

  • include all related documentation 

Assessment 1 – Contract Checklist 

Assessment 2 – Contract Selection 

  • refer to all relevant legislation. 

Assessment 1 – Contract Checklist 

Assessment 2 – Contract Selection 

Assessment 3 – Contract Clarification 

 


Context of and specific resources for assessment 

Describe how assessments meet the context of and specific resources for assessment 

This competency is to be assessed using standard and authorised work practices, safety requirements and environmental constraints. 

The student will complete this work-based task in a safe simulated environment. 

Assessment of essential underpinning knowledge will usually be conducted in an off-site context. 

Assessment 1 requires students to answer knowledge-based questions. 

Assessment is to comply with relevant regulatory or Australian standards' requirements. 

All three (3) assessments require students to identify and apply regulatory and standards requirements and apply them in the application, interpretation and preparation of construction contracts 

Resource implications for assessment include: 

 

  • documentation that should normally be available in either a building or construction office 

Assessment 2 provides access to documentation consistent with a building and construction site for the purposes of preparing a contract 

  • relevant codes, standards and government regulations 

All three (3) assessments require students to identify and apply regulatory and standards requirements and apply them in the application, interpretation and preparation of construction contracts. 

  • office equipment, including calculators, photocopiers and telephone systems 

All three (3) assessments require the student to use different office equipment to carry out work functions. 

  • computers with appropriate software to view 2-D CAD drawings, run costing programs and print copies 

Assessment 2 requires the student to use computer software to perform relevant calculations in order to fill out the contract 

  • a technical reference library with current publications on measurement, design, building construction and manufacturer's product literature 

All three (3) assessments require the student to use access and use a range of internal and external sources of information to make informed decision on contract selection, application, preparation and provide correct advice to clients 

  • a suitable work area appropriate to the construction process. 

All three (3) assessments require students to carry out activities in a work-simulated environment. 

Reasonable adjustments for people with disabilities must be made to assessment processes where required. This could include access to modified equipment and other physical resources, and the provision of appropriate assessment support. 

Please refer to RMIT guidelines on reasonable adjustment processes. 

 


Other Information

Study and Learning Support: 
Study and Learning Centre (SLC) provides free learning and academic development advice to you. Services offered by SLC to support your numeracy and literacy skills are:
• Assignment writing, thesis writing and study skills advice 
• Maths and science developmental support and advice 
• English language development

Please refer to http://www.rmit.edu.au/studyandlearningcentre to find more information about Study and Learning Support.

 

Equitable Learning Services (ELS):
If you are suffering from long-term medical condition or disability, you should contact Equitable Learning Services (ELS) to seek advice and support to complete your studies.
Please refer to http://www.rmit.edu.au/students/support-and-facilities/student-support/equitable-learning-services to find more information about services offered by Equitable Learning Services (ELS).

 

Late Submission: 
If you require an Extension of Submittable Work (assignments, reports or project work etc.) for seven calendar days or less (from the original due date) and have valid reasons, you must complete an Application for Extension of Submittable Work (7 Calendar Days or less) form and lodge it with the Senior Educator / Program Manager.
The application must be lodged no later than one working day before the official due date. You will be notified within no more than two working days of the date of lodgement as to whether the extension has been granted.
If you seek an Extension of Submittable Work for more than seven calendar days (from the original due date), you must lodge an Application for Special Consideration form under the provisions of the Special Consideration Policy, preferably prior to, but no later than two working days after the official due date.


Submittable Work (assignments, reports or project work, etc.) submitted late without approval of an extension will not be accepted or marked.

 

Special Consideration: 
Please refer to http://www.rmit.edu.au/students/specialconsideration to find more information about special consideration.

 

Plagiarism: 
Plagiarism is a form of cheating and it is very serious academic offence that may lead to expulsion from the university.
Please refer to http://www.rmit.edu.au/academicintegrity to find more information about plagiarism.

 

Email Communication: 
All email communications will be sent to your RMIT email address and you must regularly check your RMIT emails.

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