Words limit: 2000 words

Learning Outcomes
1. Assess the contractual provisions of liquated and ascertained damages and extension of time
2. Analyze the contractual mechanism for issuing Architect’s Instruction for the projects
3. Appraise the basic contractual mechanisms and procedures applied at post contract stage of construction contracts

Assignment (Case Study) – the Scenario
The Building Contractor Company you work for has been awarded for two new projects using HKIS/HKIA SFoC 2005 Standard Form of Building Contract in Hong Kong.

Acting in the capacity of “Contract Manager” you are asked by the Managing Director to give an advice in a professional report format including reference to case law so he can then assess the contractual risks involved. Answer each of the following four questions within your response to the Managing Director:

1. Explain the requirements for liquidated and ascertained damages to be enforceable upon the project delay situation as a result of the building contractor’s own causes.

2. Explain how variations are instructed and valued during the project upon receipt of a verbal instruction from the project architect to change all the original colour of the wall in public area of the concern building.

3. Explain the contractual procedures necessary for claiming an extension of time upon receipt of an architect instruction with effect on postponing the original contract completion date.

WORD LIMIT: maximum of 2,000 words.

Notes on Assignment:

1 It should be supported by academic references. Reference to relevant case law will improve your mark.

2 For questions 2 & 3 reference should be made to appropriate clauses, read the clause and rewrite in your own words. DO NOT REWRITE the clause, word for word.

3 For question 3 references should be made to relevant timescales required within the procedures stipulated within the clauses.

4 No tables are to be produced comparing clause for clause content, but text should be produced in the form of a report of sentences/paragraphs.

5 Harvard referencing system must be used

Assessment criteria:

Pass (40% to 49%)
You shall demonstrate your ability to
 Collate and identify the relevant information;
 Describe various topic areas with reasonable assumptions made for the relevant focus;
 Present the report in an appropriate format with organized and comprehensible contents.

Good (50% to 69%)
In addition to the above, you shall demonstrate your ability to
 Apply the relevant theories/principles/concepts effectively to explaining various topic areas;
 Acquire additional materials beyond those provide in the lectures and apply them appropriately to the related topic areas;
 Present the Assignment logically and clearly and be able to arouse reader’s interest.

Excellent (70% to 100%)
In addition to all the above, you shall demonstrate your ability to
 Adopt different/alternative perspectives in discussing various topic areas;
 Provide creative, constructive and viable solutions to problems related to the topic areas with justifications;
 Highlight the salient points, explain the complicated theories/principles/concepts clearly, and put forward convincing arguments in a logical manner.

Marks will be deducted for late submission, plagiarism, incorrect referencing, word limit not conforming to the specified requirement, etc.

Marking scheme

Breakdown Marks
Presentation: A good professional and structured report that includes an introduction, main body and conclusion 10%
Response to main tasks, including use of case law, as follows:
• Explain the requirements for liquidated and ascertained damages to be enforceable 30%
• How variations are instructed and valued during the project 25%
• Procedures necessary for claiming an extension of time 25%
References: appropriately cited and listed 10%
Total 100%

The above-mentioned contractual terms are inter-related. Marks will be deducted if there are inconsistencies or discrepancies among these documents.