Case study

Question 1

Did you include any risk allowances within your pre-tender estimate for either of these issues faced?

Question 2

How would you generate a risk allowance?

Question 3

Did you advise to your client to include an undefined provisional sum instead of a defined provisional sum?

Question 4

What is the difference between a defined and an undefined provisional sum? And why?

Question 5

How did you generate the allowance of £10k for the provisional sum?

Question 6

How did you assess the costs for the fencing given that it’s quite a bespoke piece of work?

Question 7

You say that the value engineering option proposed was to use smaller plant for the demolitions works, did this have a programme impact?

Question 8

What was your role as cost manager during the value engineering exercise?

Question 9

What are the relevant events under the contract? Give me 3 examples

Answer 9

There are 14 Relevant Events under the 2016 D&B Contract (cl. 2.26):
Changes. Employer’s Instructions. Delay of giving of possession of the site. Antiquities. Suspension by the contractor for non-payment. Impediment, default, or prevention by the Employer/ Employer’s Persons. Statutory Undertakers work. Exceptionally adverse weather. Specified Perils. Civil commotion/ threat or use of terrorism. Strike or lockout. UK Government/Public Authority affecting the works/ Delay to approval by a statutory body. Force Majeure

Question 10

With your preferred option of acceleration, what was the cost of this?

Question 11

Did you advise the client that they would be entitled to claim Liquidated Damages if the contractor didn’t achieve the PC date?

Question 12

7. What were the LAD’s vs the cost of acceleration to the client and was this explored as part of your recommendation?
   i.e. offsetting the cost of acceleration vs contractor’s liability for damages?