Introduction
The benefits of the utilization of the construction contracts include, the requirements of the
agreement while performing home building, the contract paper preserves the rights of the
contractor or builders, superintendent, principles and the other involved parties. In
accordance with the Crown Build project case study, the building construction is located in
the NSW area and it is going to be a four storey building with the fixed amount of AUD28
million and within a fixed timeline as mentioned in the contractual document of this building
project and the contract has been signed under AS4000-1997 regulation. But in the middle of
the project development, it has been detected that the beam size is incorrect and the
contractor has provided notice to the principal and superintendent of the project. The
superintendent has corrected the drawing with correct beam size and instructed to eradicate
the implemented wrong beams. Now gradually the quantity of the handrails has increased
with labour const and delivery delay. Now, the contractor can apply for different progress
claims under different clauses.
Task 1
The Australian building industry mainly follows the laws and regulations of ABIC or
Australian Building Industry contracts, HIA or housing Industry of Australia and the
government contracts. Each of the construction projects in Australia follows jurisdictions of
Building and Construction Industry Security of Payment Act 1999 (NSW), Home Building
Act 1989 that mainly focuses on the building activities of the NSW Area. For the residential
building construction in the NSW area under Schedule 1 of Home Building ACT 1989 refers
that the roof plumbing and Specialist work will be done in relation with dwelling. Governing
law Clauses refers to the transactions between the parties that are mainly operated in the
territories and the states and the parties generally maintain and follow the legislation
attributes of Competition and Consumer Act 2010 (Cth) and the payment security legislation
(Wang and Burdon, 2021). According to the considered mandatory of the general guidelines
of the construction projects, the scope, timeline and the allocation of roles and responsibilities
will be mentioned (Appendix 3) The payment schedule along with the provisional sum and
the contract sum will be written and also the dispute resolution, relief damage, limitation
clauses and available reliefs are also mentioned in the construction contracts. The general
principles of the construction contracts uses different objectives such as the type of work

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(commercial, design, residential), size and value of the contract, legislative requirements for
state and the mention of the parties who are administering the contract paper such as
architect, contractor, superintendent and the principles.
In accordance with the Australian Standards (AS) there are different general conditions that
are prepared by Standards Australian Committee. The general principles of construction
contract laws are described here-AS 4000-1997: This contract is signed for the construction
delivery purpose and is known as “general conditions of a contract”. AS 4901-1998: it is
mainly as a sub-contract and it is used with the AS4000 principles. AS 4902-2000: this is
mainly built for the construction delivery and design purpose and it is a variant of AS4000.
AS4905-2002 is signed for the minor contract conditions and it is administered by the
Superintendent. Thus, it is clear that the selection of the contract depends on the different
circumstances but there is some general reflection- The amendments or the body of the
contract, instruments of the contract or agreement that are written formally, and the annexure
parts. Some basic features of AS4000 are- the contractor of a construction project is required
to m\execute the completion of the construction project within a fixed timeline and at a lump
sum price. It is important to sign the agreement with the clearly mentioned date of completion
of the construction contracts, if the extension of time is required, and the contractor will have
to provide a ‘qualifying cause of delay’ (Swift, 2019). The case study deals with the
construction project of Crown build that is facing structural difficulties due to the proposed
wrong beam size and this dispute can be resolved by the AS4000-1997 contractual agreement
with the proper utilization of the clauses.
The advantages of using the standards forms of the Australian contracts are- it can reduce the
total cost, the scope of negotiation can be avoided with the signing of document and thus
influences the speediness of the process, However, in the agreement, the rights of the both of
the parties, the proper mentioning of the conditions of the contract, expected date of project
completion, the date of work commencement and the other terms and conditions related to
the construction project are clearly mentioned in the construction contracts. The benefits of
the utilization of the construction contracts include, the requirements of the agreement while
performing home building, the contract paper preserves the rights of the contractor or
builders, superintendent, principles and the other involved parties. The construction contracts
help to lay out the planning and conditions of the owner very clearly. It also ensures that the
owner of the building and the contractor are performing together in order to achieve a

5
common target, The clear guidelines of the contracts helps to perform a better construction
performance and the associate legislations add value to the protection of the builders and
traders (Jones, 2021). In addition to that the changes can be possible if there is any evidential
defect or damage or complaint occurs during the process.

Task 2
According to the case study of the Crown Build, the construction of the four storey building
under Crown Build developer is facing structural deficiencies as the superintendent of the
project has proposed wrong size of beams in the design paper. This issue has been resolved as
the contractor has informed the superintendent and the superintendent has issued a new
design with the correct size of the beams. Moreover, the superintendent has informed us to
remove the used beams and replace them with the correct beams (Appendix 2). Now this
situation has increased the amount of the stair handrails and thus it is enhancing the cost and
the time period. In this case, the contractor will apply for the provision of the compensation
rate from the superintendent as the dispute occurs due to the provision of incorrect
information by the Superintendent. This is a communication problem in the construction
management project.
The construction project of the Crown Build has been made according to the law of AS 4000-
1997 thus it includes a fixed timeframe and fixed allocated cost. For the Crown Build project
the time frame is 24 months and the allocated cost is AUD 28 million. But as the changes
have been done in the building design along with the beam sizes, there is a qualifying cause
of extension of the time period. Thus the contractor can apply for the delay delivery of the
project and delay cost under the AS4000-1997 legislations (EL GEZERY, 2018). The
contractor can apply for the EOT or the delay cost under AS4000 policy as the issue has been
caused by the omission of the Superintendent. In this regard, the qualifying cause of delay
compensable cause, 8.1 can be claimed for achieving the incurred cost due to the quantity
enhancement of the stair handrails, labour cost and beam removal cost.
Under clause number 25.3, the delay cost of the construction of Crown Build project involves
the labour cost. In addition to that the clause number 11.2 is also applicable in this regard as
the changes have been made and thus the costing structure is changing. The constructor can
use the clause in order to include the additional expenses with the lump sum cost of the
project. EOT can be applied in this case as there is a qualifying cause of delay as the mistake

6
has been done by the superintendent and the contractor can apply for achieving a relief. It
cannot be ignored that the principal of the project has also omitted the mistake made by the
superintendent in the beam size (Rıgga, 2019). In accordance with 34.2 clause number, the
contractor of Crown build has already sent a notice to the superintendent and the principal to
apply for EOT. This EOC will be received within 28 days after the claim has been done and
the delay cost has a qualifying cause of delay under clause number Qualifying cause of delay,
CC, 8.1.
Task 3
According to the policies of AS4000, the contractor of Crown Build can claim for the
expansion of the time frame in order to carry out WUC and the contractor needs to prepare a
qualifying cause of delay statement with evidential attributes. There are fundamentally two
types of qualifying cause of delay- i) it is applicable when any omission or mistake is made
by the superintendent of a building construction project and ii) it is applicable when the
mistake or default is made by the contractor of a building construction project or due to
industrial and weather conditions (Van Der Westhuizen and Evans, 2019). In the case of the
Crown Build project, the mistake has been performed by the superintendent of the building
construction as in the initial design the superintendent has proposed an incorrect beam size
which is shorter than the required beams. The Item number 23 can identify another factor
about the qualifying cause of delay as it measures if the EOT is not grantable in this situation.
After that the extension delay will be transformed into the calendar and the business days.
Under clause number 34.2, the contractor will be liable to submit the delay notice and in this
case the contractor of Crown Build has to submit proper documentation with the evidence of
the beam fault to the superintendent of the building project and the principal (RUGINĂ,
2021). This documentation will include the cause of delay and the estimated delivery date of
the project. In this regard it can be considered that claiming of EOC notice and delay notice
are different notices issued by the contractor. The provision of EOC notice comes under
clause number 34.2 and the delay notice provision comes under clause number 34.3. In
accordance with the regulation of clause number 34.3, the contractor of Crown Build has to
provide evidence regarding the fault in the beam size, responsible person and the extended
timeline in the notice of the EOT.
The process of claiming for EOT under AS4000 includes the submission and accessing of
notice of delay with the evidences for ‘qualifying cause of delay’ under the clause number

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34.2, provision of delay notice, EOT claiming notice under the clause number 34.3, delay
damage claim as stated in the clause number 34.9 and 41.1 and the final assessment under the
clause number 34.4 (Appendix 1). The dispute in the construction building project will come
under 42.1 and the progress claim will be done as an activity of the payment security policy
according to clause number 37.1 (Montalbán-Domingo et al. 2019).
However, demonstration of the delay will be properly reported in the EOC notice. In
accordance with the policies, the superintendent of the Crown Build project has taken
mitigation steps in order to resolve the issue of the incorrect beam size. For taking effective
steps, the superintendent has designed a new building drawing with correct beam size and
instructed to remove the wrong beams that are already implemented in the building.
However, clause number 34.9 is identifying the compensable cause under AS4000-1997. Due
to the omission and the defaulted act of the superintendent, the clause number 1.1 stated that
it is a subject of compensable cause. The item number 26 (Annexure Part A) can detect the
other qualifying causes of damage delay and it also can be ‘Nil’ but the ‘Nil ‘refers that there
is no additional cost found in the case.
The quantum inclusion and the basics of claim need to be considered while preparing the
notice for the damage delay claims. The contractor has to submit and keep updating the
prepared claim as evidencing aspects for the delay. The clause number 34.4 includes both the
non-qualifying and qualifying delay causes in the cases of the overlapped situation. In this
case, it can be considered the prevention steps will be evaluated by the contractor to measure
if the objectives are affecting his attributes or not. Moreover, according to clause number
42.1, the contractor can also provide a dispute notice if he found any disagreement with the
proposal of the superintendent’s instruction (Adzoyi and Nani, 2021). The contractor can also
involve incurred cost that has been increased due to the replacement of the shorter size
beams, labour cost and the increased quantity of the handrails. These inclusions of the cost
will be done under clause number 36.2.
Task 4
There are fundamentally two reasons for claiming cost. Firstly, the incorrect beam size has
extended the delivery date of the building construction and on the other hand the labour cost
associated with the extension of the project and the removal and implementation of the newly
proposed correct beams. These types of costs are regarded as the “global cost claim”. In this

8
regard the superintendent will be considered as a liable person to provide the compensation
cost to the constructor or the builder. The clause number 36.2 indicates that the incurred cost
structure can be claimed by Crown Build as the variation has occurred in the contractual cost
structure. The cost claim will be made as the superintendent has made a mistake in the
building drawing with incorrect beam size. In order to respond to the cost variation, the
contractor will provide the incurred cost quotation and this quotation needs to be verified and
sanctified by the superintendent as a sign of approval. This cost structure will include the
additional cost of the raw materials, labour cost and the extension period cost. It will be
called ‘cost plus agreement’. In accordance with the policies, the superintendent of the Crown
Build project has taken mitigation steps in order to resolve the issue of the incorrect beam
size. For taking effective steps, the superintendent has designed a new building drawing with
correct beam size and instructed to remove the wrong beams that are already implemented in
the building. However, clause number 34.9 is identifying the compensable cause under
AS4000-1997 (Klee, 2018). Due to the omission and the defaulted act of the superintendent,
the clause number 1.1 stated that it is a subject of compensable cause.
According to clause 26, the expense claim will involve the additional cost with the lump sum
cost in the contract. In addition to that the clause number 25.6 will be applicable as it
indicates the delay labour cost that is a delay damage expense. The clause number 11.2 needs
to be applied as there is a verified costing structure in the construction of the Crown build
project. The clause number 26 will also include the additional costs with the main costing
structure. Now the additional cost includes the labour cost, implemented beam removal cost,
extension cost and the quantity increment cost of the handrails (Hastie, Sutrisna and Egbu,
2017). The value of the raw materials will be added in the additional cost structure according
to the law of AS4000.
Conclusion
As the Crown Build project has been signed under the law AS 4000-1997, the financial and
delay dispute will come under different clauses. The provision of EOC notice comes under
clause number 34.2 and the delay notice provision comes under clause number 34.3. In
addition to that the clause number 25.6 will be applicable as it indicates the delay labour cost
that is a delay damage expense. Under clause number 25.3, the delay cost of the construction
of Crown Build project involves the labour cost. In addition to that the clause number 11.2 is
also applicable in this regard as the changes have been made in the cost structure.

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