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Title / Demonstrate knowledge of how to administer contracts and value building works
Level / 5 / Credits / 10
Purpose / People credited with this unit standard are able to: establish communication protocols; explain the principles of valuing work; explain the principles of determining the costs of variations and fluctuations; explain cost of time extensions; explain how nominated sums are adjusted; explain the process of preparing final account statements; explain the process for preparing progress certificates; and explain the process for preparing completion certificates.
Classification / Construction > Construction Technology
Available grade / Achieved
Explanatory notes
1Processing contracts at this level relate to post-tender financial adjustments involved in a construction contract up to and including preparation of a final account. The emphasis is on preparing the various elements rather than on their final resolution.
2It is not intended that this unit standard should cover the inspection of work to verify that it complies with the specification.
3Assessment of this unit standard can be by simulation and/or observation.
4Industry requirements referred to in this unit standard comprise company policies, procedures, and codes.
Outcomes and evidence requirements
Outcome 1
Establish communication protocols.
Evidence requirements
1.1Communication protocols are defined to meet building project requirements.
1.2Protocols established facilitate and monitor communication throughout the project.
Outcome 2
Explain the principles of valuing work.
Rangevaluations may include but are not limited to – progress, completion, performance, final.
Evidence requirements
2.1The principles of valuing work carried out on a construction site is explained in terms of the priced contract documentation, including any amendments and variations.
2.2How valuations are compiled is explained in terms of contractual and industry requirements for certification by others, and appropriate deductions.
Rangedeductions may include but are not limited to – retentions, liquidated damages, previous payments.
Outcome 3
Explain the principles of determining the costs of variations and fluctuations.
Evidence requirements
3.1The principles of variations to building works are explained in terms of measurement, pricing, and presentation in accordance with contract conditions.
3.2The types of systems to co-ordinate aspects of the variation process for a contract are explained.
3.3The principal methods of fluctuation recovery are classified and explained in terms of formula and verification.
3.4The fluctuation process demanded by a construction contract is explained in terms of contract conditions.
Outcome 4
Explain cost of time extensions.
Evidence requirements
4.1Extension of time clauses are identified in terms of contract conditions.
Outcome 5
Explain how nominated sums are adjusted.
Evidence requirements
5.1The process of adjusting nominated sums is explained in terms of contract conditions.
Rangesums may include but are not limited to – provisional, prime cost, nett, contingency.
Outcome 6
Explain the process of preparing final account statements.
Evidence requirements
6.1The process of preparing final account statements containing items adjusted in terms of the contract is explained in relation to contract conditions.
Rangecontent may include but is not limited to – variations, fluctuations, sum adjustments, provisional quantities adjustments, liquidated damages, extension of time costs.
Outcome 7
Explain the process for preparing progress certificates.
Evidence requirements
7.1The process for preparing progress certificates is explained in terms of claims which are written to conform with the contract conditions.
7.2The process for analysing claims is explained in terms of establishing a match to the claimed percentage in terms of value of work completed.
7.3The requirement for the validity of claims for materials on and off site to be established in accordance with the contract is explained.
7.4The process for deducting retentions is explained in terms of conforming to the contract conditions.
Outcome 8
Explain the process for preparing completion certificates.
Evidence requirements
8.1The requirement for certificates and guarantees to be in place is explained in terms of the contract conditions.
8.2Codes of compliance required in terms of the compliance schedule are outlined.
8.3The process for enabling the release of retention monies or bonds is explained.
This unit standard is expiring. Assessment against the standard must take place by the last date for assessment set out below.
Status information and last date for assessment for superseded versions
Process / Version / Date / Last Date for AssessmentRegistration / 1 / 21 March 1997 / 31 December 2018
Revision / 2 / 10 December 1997 / 31 December 2018
Revision / 3 / 27 October 1999 / 31 December 2018
Revision / 4 / 7 June 2000 / 31 December 2018
Review / 5 / 20 March 2003 / 31 December 2018
Revision / 6 / 19 July 2004 / 31 December 2018
Review / 7 / 18 March 2011 / 31 December 2018
Rollover / 8 / 15 August 2013 / 31 December 2018
Rollover / 9 / 16 July 2015 / 31 December 2018
Rollover / 10 / 19 January 2017 / 1 March 2019
Consent and Moderation Requirements (CMR) reference / 0048
This CMR can be accessed at
Please note
Providers must be granted consent to assess against standards (accredited) by NZQA, before they can report credits from assessment against unit standards or deliver courses of study leading to that assessment.
Industry Training Organisations must be granted consent to assess against standards by NZQA before they can register credits from assessment against unit standards.
Providers and Industry Training Organisations, which have been granted consent and which are assessing against unit standards must engage with the moderation system that applies to those standards.
Requirements for consent to assess and an outline of the moderation system that applies to this standard are outlined in the Consent and Moderation Requirements (CMR). The CMR also includes useful information about special requirements for organisations wishing to develop education and training programmes, such as minimum qualifications for tutors and assessors, and special resource requirements.
Building and Construction Industry Training OrganisationSSB Code 101562 / New Zealand Qualifications Authority 2018 / / New Zealand Qualifications Aut