Case Study

Question 1

Please explain what you mean by the ‘Lump Sum’ contract form.

What standard form of contract is this?

Answer 1

What Is a Lump Sum Contract? Under a lump sum contract, also known as a stipulated sum contract, the project owner provides explicit specifications for the work, and the contractor provides a fixed price for the project

What standard form of contract is this?

A lump sum contract or “fixed fee contract” is a traditional means of procurement in which a single “lump sum” price for all of the works is agreed upon before the works starts

Question 2

Please explain your role on the project of ‘Commercial and Contract
Administration’.

Answer 2

I was involved in reviewing IPA from the Contractor and providing recommendation to the Client.
Also, Valuing Variation & Claim and providing recommendation.

Question 3

What did ‘tracking and reporting the status of the change accurately’
require?

Answer 3

Any Change from the Contractor , Client had to be initiated through the Oracle system( APMS) and responded …………………………………………………………………………………………………………………………………………………………………..

Question 4

Give an example of how you were ‘providing adequate control
over the usage of budget contingencies’.

Answer 4

………………………………………………………………………………………………………………………………………………………………….

Question 5

What handover and closure process did you apply on this project

Answer 5

Not involved in the closing period………………………………………………………………………………………………

Question 6

How did you respond to the contractors financial issues, to
complete the project and achieve the key objective (time of
completion)

Answer 6

……………………………………………………………………………………………………………………………………………………………………………..

Question 7

How could you have avoided this financial issue?

Answer 7

financial checks to be completed as part of the
procurement process?

Question 8

How can a cashflow support management of contractor financial
stability?

Answer 8

Businesses need cash to fund new projects, keep current projects moving forward, pay for materials and labor and cover other costs…….

Question 9

How was the key issue related to the contractors financial issues

Answer 9

Stoppage of work at Site was due to the contractor not paying the sub contractor & outsourced labour at site.

Question 10

What substantiation was the contractor contractually bound to provide in
order to receive payment?

Answer 10

CC to provide IR with Code A & B

Question 11

On what basis did you withhold payment?

Answer 11

Payment for IR with Code C & D was withheld.

Question 12

Were there any signs on the project that could have highlighted resource
allocation issues earlier?

Answer 12

No

Question 13

How were you able to assess the impact of covid in this issue, compared
to misallocation of resources and/or issues due to contractor financial
issues?

Answer 13

The period of the key issue was during the ease of Covid situation. Moreover, ……………………………………………….

Question 14

Page 2

Option 1: On-Account Payment for Variation under process

Which issue was this option aimed to solve (covid, misallocation of
resources, contractor financial issues)?

Answer 14

Contractor financial issues

Question 15

How would this option have resolved the identified key issue of
resource management?

Answer 15

By improving the cashflow, & subsequently payment to the subcontractor & resumption of work at Site.

Question 16

How did this help you achieve your key objective of delivering on
time?

Answer 16

By improving the cashflow, & subsequently payment to the subcontractor & resumption of work at Site.

Question 17

How did this impact cost, quality and risk of the project?

Answer 17

This helped to mitigate any delay to the project & subsequent cost overrun & to finish the work as per the required specs.

Imp:
Option 1: On-Account Payment for Variation under process
Risk-……………………….

Option 2: Providing an Advance Payment for the Remaining Work
Risk-……………………….

Option 2: Full Payment for the completed works with Code B IR’
Risk-……………………….

Question 18

What is required contractually to make a payment for a variation?
( Clarify Jibr, Sal)

Answer 18

Work to be completed at Site & the CC to submit the IRs with Code A

Question 19

What is required contractually to make an advance payment

Answer 19

This should be incorporated as an addendum to the Contract.

Question 20

Full Payment for the completed works with Code B IR’
How would this option have been managed contractually?
( Clarify Ifha)

Answer 20

By approval from the Client; & CC to provide an undertaking letter to convert the IRs to Code A (for which have been paid 100%) within the stipulated date. Failure to do so, payment to be withheld.

Question 21

How did your options manage risk on your project?

• What risks did your options add to the project?
• Did your option analysis and advice achieve the key objective of
  the project – delivery on time

Answer 21

How did your options manage risk on your project?

Mitigated delay and subsequent cost over run.

Complete the work as per the specs.

What risks did your options add to the project?

Option 3 Risk- Challenge to get the cc to convert the IRS into Code A ( by addressing & resolving the minor & major comments in the IR’s)

Did your option analysis and advice achieve the key objective of
the project – delivery on time?

Yes

Question 22

What would you do differently next time

Answer 22

Although this is a financial issue. however this could be expediated by the timely resolution of technical issues both both the Teams. Involving technical Team heads early on.

(If involved early on in a project, check the Financial Status of the CC.

Experienced & reputed Contactor.

Question 23

How did you act ethically?

Answer 23

I have ensured the CC meet the Contractual obligation under the Contract & provide proper substantiation & records required as per the Contract. I took a collaborative approach in the resolution of Key issue by involving the different Team members based on mutual respect & responsibility & ownership of Task.

(The Rules of Conduct are based on ethical principles of honesty, integrity, competence,
service, respect, and responsibility.)

Question 24

What were your key achievements?

Answer 24

Facilitate better Communication with CC commercial Team.

Coordinate meeting , workshops in the resolution of the key issue.

Involve the discipline Heads & Senior Management in the resolution of Technical issues.

Proactive &robust approach to ensure the conversion of Code B IR’s.