16423 Procurement and Contract Management

Warning: The information on this page is indicative. The subject outline for a particular session, location and mode of offering is the authoritative source of all information about the subject for that offering. Required texts, recommended texts and references in particular are likely to change. Students will be provided with a subject outline once they enrol in the subject.

Subject handbook information prior to 2024 is available in the Archives.

UTS: Design, Architecture and Building: School of the Built Environment
Credit points: 6 cp

Subject level:

Undergraduate

Result type: Grade and marks

Requisite(s): 16467 Built Environment Law and Ethics AND 16912 Construction Project Management Principles
These requisites may not apply to students in certain courses.
There are course requisites for this subject. See access conditions.

Description

This subject examines the project procurement systems used in the construction industry and the principles and practices involved in the administration and management of construction contracts. The variety of methods used to procure construction projects are examined in detail. The subject examines common construction contracts used in the industry and explores typical contractual responsibilities and liabilities imposed by these contracts and the issues that emanate from these. Students are given exercises in examining and interpreting general conditions of contract and contractual risk allocation to strengthen their understanding. The subject then examines the principles and procedures of effective contractual claims management including preparation of variations, progress claims and time extension/delay cost claims. This is extended to include the administration and management of subcontract and supply agreements. Cost/time/quality monitoring, administration and control and cash flow forecasting and earned value analysis during the construction stage are then explored in detail. Students are then introduced to conflict management and dispute resolution as an integral part of the contract management role. The subject utilises contemporary software applications and explores leading edge industry practices such as web-based contract administration and the integration of contract administration and information flow with building information modelling (BIM) systems.

Subject learning objectives (SLOs)

1.	understand the processes involved in the PMBOK Competency Unit for Project Procurement Management
2.	identify and explain the different methods of project procurement
3.	interpret and explain the obligations and responsibilities imposed by the various general conditions of contract in common use
4.	understand the procedures and practices involved in the general administration of contracts
5.	understand the claims management process and good claims management practice
6.	prepare contractual claims and establish a suitable system for their checking and recording
7.	explain the benefits of web based contract administration, the integration of contract administration and information flow with Building Information Modelling (BIM) systems
8.	understand and describe effective cost/time/quality control systems used during construction of a project
9.	understand the nature of conflict management and dispute resolution in the construction context and be able to explain the main dispute resolution processes.

Course intended learning outcomes (CILOs)

This subject also contributes to the following Course Intended Learning Outcomes:

• Identify ethical issues and apply informed ethical judgements in professional Contexts. (A.1)
• Work effectively in multidisciplinary and culturally diverse contexts. (A.2)
• Work effectively in project teams in professional contexts. (C.2)
• Apply the body of knowledge underpinning construction project management practice. (P.2)
• Develop strategic advice for clients on the costs and benefits of various courses of action involving construction projects and financing options. (P.5)
• Demonstrate an understanding of construction technology and structural principles. (P.10)
• Source evaluate and use information to approach new projects/problems. (R.1)

Contribution to the development of graduate attributes

The term CAPRI is used for the five Design, Architecture and Building faculty graduate attribute categories where:

C = communication and groupwork

A = attitudes and values

P = practical and professional

R = research and critique

I = innovation and creativity.

Course intended learning outcomes (CILOs) are linked to these categories using codes (e.g. C-1, A-3, P-4, etc.).

Teaching and learning strategies

The learning activities in this subject involve a variety of activities comprising online lectures & other online activities combined with on-campus class work, discussions, tutorials, quizzes & group work and independent research and examination. Lectures involve online explanation of and insights into the subject content employing the use of media and electronic resources. Guest presentations from industry practitioners will also be utilised.

Emphasis will be placed on independent student pre-reading of subject material to facilitate greater understanding of each lecture topic area and fruitful class discussion on key issues. Significant time is devoted to weekly classwork comprising pre-reading essays, quizzes and tutorial exercises which form part of the formal assessment of this subject and provide an opportunity for regular summative feedback to students on their understanding of the subject material. A final 'take-home' examination will be utilised to assess student understanding of the subject content.

The class activities will utilise case studies, student group work, and experiential exercises to link theory and application. Students are further supported through the use of UTS Canvas providing subject material and information and moderation with the subject coordinator.

The research component will involve students undertaking an assignment to investigate current industry practice and issues in the fields of procurement & contract management.

Students will have several opportunities to receive feedback during the subject. The feedback provided will vary in form, purpose and in its degree of formality:

Formative feedback will be provided during the learning process, typically provided verbally by the subject's teaching staff. It will address the content of work and a student's approach to learning, both in general and more specific ‘assessment orientated’ terms. It is designed to help students improve their performance in time for the submission of an assessment item. For this to occur students need to respond constructively to discussions, tutorial work and other learning modes.

Summative feedback is provided with all assessed work. Summative feedback focuses on assessment outcomes. It is used to indicate how successfully a student has performed in terms of specific assessment criteria.

Grades and feedback are published online in UTS Canvas.

Content (topics)

• PMBOK Competency/Knowledge Areas in Project Procurement Management
• Overview of Construction/Contract Law & Construction Contracts
• Methods of Building Procurement
• Subcontract/Supply Agreements Management
• General Administration of Contracts
• Claims Preparation and Management
• General Conditions of Contract
• Contractual Risk Allocation
• Quality Management/Administration
• Time Management/Administration
• Cost Management/Administration
• Dispute Resolution

Assessment

Assessment task 1: Class Work (Individual) - Essays, Quizzes & Tutorial Exercises

Intent:	Testing the acquisition of content knowledge over the duration of the subject.
Objective(s):	This task addresses the following subject learning objectives: 2, 4 and 5 This task also addresses the following course intended learning outcomes that are linked with a code to indicate one of the five CAPRI graduate attribute categories (e.g. C.1, A.3, P.4, etc.): P.10, P.2 and R.1
Type:	Quiz/test
Groupwork:	Individual
Weight:	40%
Criteria linkages:	Criteria Weight (%) SLOs CILOs Demonstrate comprehensive understanding of different methods of project procurement 33 2 P.2 Demonstrate comprehensive understanding of administration related to contractual project procedures and practice 33 4 R.1 Demonstrate comprehensive understanding of claims management process and practice 34 5 P.10 SLOs: subject learning objectives CILOs: course intended learning outcomes

Assessment task 2: Assignment (Group) - Research Work

Intent:	The purpose of this assessment task is for students to gain further understanding of project procurement and delivery, building contracts, and building disputes. All using a range of relevant literature and investigating actual industry practice.
Objective(s):	This task addresses the following subject learning objectives: 2, 3, 4 and 6 This task also addresses the following course intended learning outcomes that are linked with a code to indicate one of the five CAPRI graduate attribute categories (e.g. C.1, A.3, P.4, etc.): C.2, P.10, P.2 and R.1
Type:	Report
Groupwork:	Group, group assessed
Weight:	30%
Criteria linkages:	Criteria Weight (%) SLOs CILOs Demonstrate an understanding of the innovations in procurement and project delivery practice 25 2 C.2 Demonstrate the ability to compare and contrast the obligations and responsibilities in common general conditions of building contracts 25 3 P.2 Demonstrate an understanding of contract variations and claims management processes 25 4 P.10 Demonstrate effective and accurate communication of contractual claims 25 6 R.1 SLOs: subject learning objectives CILOs: course intended learning outcomes

Assessment task 3: Take Home Exam (Individual) - Open Book

Intent:	The purpose of this assessment task is to assess student understanding of the subject content. Exam questions will focus on students being able to clearly explain key aspects of the subject content, effectively evaluate industry case scenarios, identify and critically analyse key industry issues/problems and to put forward recommendations and strategies to address these issues/problems.
Objective(s):	This task addresses the following subject learning objectives: 1, 2, 3, 7, 8 and 9 This task also addresses the following course intended learning outcomes that are linked with a code to indicate one of the five CAPRI graduate attribute categories (e.g. C.1, A.3, P.4, etc.): A.1, A.2, P.2, P.5 and R.1
Type:	Examination
Groupwork:	Individual
Weight:	30%
Criteria linkages:	Criteria Weight (%) SLOs CILOs Demonstrate an understanding of the innovations in procurement and project delivery practice 17 2 P.2 Demonstrate the ability to compare and contrast the obligations and responsibilities in common general conditions of building contracts 17 3 R.1 Demonstrate understanding of effective cost/time/quality control processes for construction 17 8 A.1 Demonstrate understanding of conflict management and dispute resolution processes in construction 17 9 P.5 Demonstrate understanding of the project procurement process defined in the PMBoK 16 1 A.2 Demonstrate understanding of the impact of BIM on cotract administration and construction information flow 16 7 P.5 SLOs: subject learning objectives CILOs: course intended learning outcomes

Minimum requirements

The DAB attendance policy requires students to attend no less than 80% of formal teaching sessions (lectures and tutorials) for each class they are enrolled in to remain eligible for assessment.

Required texts

1. Coggins, J., Schwarz, S., Davies, M. & Ma, T. (2022), Contract Administration for Construction Professionals, LexisNexis, Australia (electronic copy available from the UTS Library)

2. General Conditions of Contract (electronic copies available online or via the UTS library)

- AS 4000 1997 General Conditions of Contract, Standards Australia
- AS 4902 2000 General Conditions of Contract for Design & Construct, Standards Australia
- NCW4 2019 General Conditions of Contract for Construction - National Capital Works, APCC-Austroads
- ABIC MW 2018 Major Works Contract, Australian Institute of Architects (AIA)/Master Builders Australia (MBA)
- GC21 General Conditions of Contract – Edition 2, NSW Government

3. Construction Law Made Easy, Minter Ellison (https://constructionlawmadeeasy.com/)

Other resources

1. Bailey, I. (2018), Construction Law in Australia - 4 Ed., Thomson Reuters Australia, Limited
2. Bailey, I. & Bell, M. (2008), Understanding Australian Construction Contracts, Thomson Reuters Australia, Limited
3. Christie, M. (2021), Building and Construction Law Journal (BCL), Thomson Reuters
4. Cremean, D., Whitten, M. & Sharkey, M. (2019), Brooking on Building Contracts – 6 Ed, Lexis Nexis Butterworths
5. Uher, T. & Davenport, P., (2009), Fundamentals of Building Contract Management - 2nd Ed., UNSW Press
6. Goldfayl, G. (2004), Construction Contract Administration – 2nd Ed., UNSW Press, Sydne
7. PMI (2021), A Guide to the Project Management Body of Knowledge (PMBOK® Guide), 7th Ed, Project Management Institute