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Practice Problems

2 months before the Completion Date for the Works

Part 3

Sub-part A

2 months before the Completion Date for the Works, the Architect issued Architect’s instruction No.48 (“A.I. 48”) to the Contractor which states that : -

(1) to add the reinforced concrete wall with a size of 6000mm long x 3000mm high x 150mm thick at the 10/F.

Please discuss the contractual implications of A.I. 48, the potential claims the Contractor may entitle to submit under the relevant clauses of the construction contract, and detail the process of how the changes would be valued under SFBC 2005. You are required to use case law to illustrate your answer (if applicable) and make all references using Harvard method.

Sub-part B

20 months after the contract commencement, the Contractor has lagged behind the programme and is unlikely to complete the Works on time. The Architect is considering to terminate the employment of the Contractor under the construction contract.

Please discuss whether the above reason constitutes a ground for termination of the employment of the Contractor, and the contractual procedures to follow in doing so. Please also discuss the protection to the Employer in cases of delay to the completion under the construction contract.

Hint
ManagementConstruction contracts basically grant a contract administrator the power of issuing instructions to a contractor. Such instructions might be referred to as architect’s instructions (AI’s) or contract administrator’s instructions. Instructions might be given to: vary works, post pone works etc....

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