Case study questions Flashcards
What building regulations are associated with sustainability?
Part L - the conservation of fuel and power.
What two kind of accounts do companies have to produce?
- Financial accounts: External accounts and issued to HMRC & Companies House (for external stakeholders.
- Management accounts: Internal accounts for internal use (any format, any time). Financial reports used for business owners and managers. Not required by law.
What is a profit & loss statement?
A profit & loss statement shows the income and expenditure of a company over a set period of time (normally the financial year).
What are some of the objectives on your company’s (T&T’s) business plan?
Our Purpose: We are making the difference; transforming performance for a green, inclusive and productive world.
* Green - investment in net zero and renewables. Deliver projects more sustainably.
* Inclusive - collaboration and diverse talent
* Productive - more data driven and insight led
How do you contribute to T&T’s business plan?
1) Spend time with the junior members of the team and have assisted a number of them in their apprenticeships.
2) Spent time with a new member of staff from Qatar
3) I use all of our digital tools which contribute towards our digital transformation
4) I always recycle where I can and car pool to site meetings and events to other offices
5) Networking
6) Share knowledge with my team
What are the 7 principles of GDPR?
- Lawfulness
- Purpose limitation
- Data minimisation
- Accuracy
- Accountability
- Confidentiality
- Storage limitation
What are the levels of fines / sanctions for failing to comply with GDPR?
Lower level: 10 million euros or 2% of annual turnover, whichever is highest.
Higher level: 20 million euros or 4% of annual turnover, whichever is highest.
How would you deal with confidentiality if you were to send data overseas?
Once data is sent to an overseas location they become the data owners. To avoid this I would recheck all recipients of emails I am sending, not send sensitive data or confirm with the client or information owner that it’s OK to send data. Also check local laws.
What are the benefits to a diverse team?
- Increased creativity and innovation
- Enhanced problem-solving and decision making
- Strengthened skill sets
- Boosted profits and revenue
- Heightened employee engagement
- Improved company reputation
- Strengthened team morale.
Do you know of any reports on Diversity by the RICS?
Building Inclusivity - Laying the Foundation for the Future
Do you know any alternative sustainability assessments to BREEAM?
- LEED - Leadership in Energy, Environment and Design (Used by US)
- SKA - Skanson - RICS own assessment method for office fit-out.
- CEEQUAL
Do you know any UK legislation that deals with Sustainability?
- Sustainability Act
- Clean Air Act
- Energy Act
- Climate Change Act
What are the 3 Pillars of sustainability?
- Social
- Economic
- Environmental
What is outlined in Part L of the building regulations?
Part L sets the standard for energy performance and carbon emissions in new construction or change of use construction projects.
What are the main forms of ADR?
- Negotiation - parties work out disputes by themselves
- Mediation - parties agree on an independent party to facilitate discussions to reach a settlement. Power still remains with the parties.
- Adjudication - a legal alternative to arbitration and litigation. Deigned to allow for disputes to be resolved more quickly and cost effectively. Power is with the adjudicator.
When can mediation become legally binding?
Only when the parties involved reach an agreement and sign a settlement agreement. This signed agreement is then enforceable by law.
What is the RICS guidance for conflict avoidance?
Conflict avoidance dispute resolution in construction black book.
What are the benefits to good data management?
Streamlined Processes and Increased Efficiency
Better Data Consistency
Easier Data Sharing
Enhanced Privacy and Compliance
Backup and Recovery
Better security
Improved Data Integrity
Do you know of any formal team building guidance?
RICS and the Construction Industry Council both have guidance on appointing project managers and the project team respectively.
Do you know of any team building theories?
Bruce Tuckman theory - How groups of people progress through a series of stages:
* Forming - what are the goals / objectives.
* Storming - what are the conflicts.
* Norming - team spirit.
* Performing - finding the balance.
* Adjourning - Feedback.
What legislation are you aware of relating to D&I?
- Disability Discrimination Act 2005
- Equality Act 2010
- Human Rights Act
Are there any Building Regulations relevant to inclusive environments?
Approved Document M - Access to and use of buildings
What is the role of the QS under JCT D&B?
Does not exist, only a supporting role to EA.
What is an Extension of Time (EoT)?
Provision that allows the CA to ‘adjust the completion date’, prevent time from becoming ‘at large’ and thereby postponing the employer’ right to recover liquidated damages.
What is the procedure for claiming an EoT?
Contractor write to CA as soon as reasonably apparent that a delay has occurred. Notification should identify a Relevant Event and give an indication of the delay.
How long does the EA have to assess a an Extension of Time under JCT?
12 weeks from receipt.
What are the timescales surrounding an Loss & Expense claim under JCT?
28 days for the EA or CA to review and agree.
What are the timescales for payment under JCT D&B contract?
Interim Valuation Dates (IVD) are agreed in the contract particulars and occur monthly.
The due date for interim payment is 7 days after the IVD.
Contractor must submit an interim application for payment by the IVD, due date is 7 days from IVD.
Payment Notice issued within 5 days from Due Date
Final Date for Payment is 14 days from Due Date
Pay less notice should be issued no later than 5 days prior to Final Date for Payment
Can you name some of the contracts within the NEC suite of contracts?
○ Option A - Priced contract with Activity Schedule
○ Option B - Priced contract with BoQ
○ Option C - Target contract with Activity Schedule
○ Option D - Target contract with BoQ
○ Option E - Cost Reimbursable
○ Option F - Management Contract
○ Option G - Term Contract (Only for consultants - appointment document)
Can you name some of the contracts within the JCT suite of contracts?
○ JCT Design & Build
○ JCT Minor Works
○ JCT Intermediate
○ JCT Pre-Construction Services Agreement
○ JCT Major Projects Agreement
○ JCT Measured Term
○ JCT Standard Building (with quant/wo /approx)
○ JCT Framework Agreement
What happens at practical completion?
Half retention released
Client’s opportunity to levy LAD’s ceases
Insurance switches from Contractor to Client
Defects liability period begins
What would you advise a client who came to you with insurance queries regarding the contract?
I cannot advise on insurances as I am not qualified nor covered by the PI insurance of T&T.
How does risk vary between different forms of procurement?
- Traditional - design risk with client, often lump sum so commercial risk with contractor
- D&B - design risk with contractor, if lump sum cost risk with contractor
- Approx. quantities - cost risk with client
How do you quantify risk using NRM1?
Risk is quantified based on actual probability and impact to the project, not as a % under NRM.
What are the 5 techniques to managing a risk?
Shrink
Accept
Distribute (make sure it’s to the right person)
Eliminate
Monitor
What is a risk?
An uncertain event or set of circumstances that, if happened, would have a negative impact on the project’s objectives.
How would you cost a risk?
Only cost those that have a cost impact.
Cost the outcome as if the risk occurred - multiply by the risk score (total risk rating) - so don’t include the full cost, only the Expected Monetary Value (EMV)
What is Expected Monetary Value (EMV)?
Quantitative way to asses risk. Multiply the monetary impact by the probability of the risk occurring.
What other Risk calculation methods could you use?
Monte Carlo simulation - technique that predicts the probability of multiple scenarios (uses computer software)
What are the 3 types of Conflict of Interest?
- Party Conflict (If you work for two different clients on a matter, where those two clients have conflicting interests, you will be conflicted)
- Own interest conflict (where your own interests are at stake)
- Confidential information conflict (if you are obliged to keep certain information confidential for one party but obliged to reveal the same information to another party)
What is T&T’s complaints handling procedure?
- Immediately on receipt on the complaint, the nature of it is discussed by the Director concerned and the CM and a Corrective Action Record (CAR) is initiated
- CAR - identifies the problem, action to be taken and the date it should be rectified by. Also identifies any appropriate future preventative action required to ensure that a reoccurrence of the event leading to the complaint does not take place.
- On receipt of formal complaint, Director will write to client to advise complaint is being dealt with. CM implements actions set out in CAR and advises Director. Feedback from Client to verify satisfactory outcome must be added to CAR.
- Should Client not be happy, meeting must be arranged with Client and Director to agree further action.
- Next options - Regional MD, then T&T’s CEO for resolution using independent Alternative Dispute Resolution.
How do I deal with Client care?
I check in regularly with them (weekly as a minimum) I’m open and honest with them
What are the various stages of negotiation?
- Preparation
- Opening
- Bargaining
- Conclusion
Tell me about a successful or unsuccessful negotiation
Agreeing final accounts with clients (as a main contractor)
What are the key principles under CDM 2015 regulations?
- Construction (Design & Management) Regs 2015
- Ensure client, designers, contractors and others consider the H&S of those constructing, maintaining and demolishing works.
- Places statutory duties on clients, PD, designers and contractors to plan, manage and coordinate H&S throughout the project.
- Improve safety on site through design, planning and management.
Can you identify a few differences between the JCT and NEC contracts?
○ NEC includes time and cost in changes
○ Programme is a contract document under NEC
○ NEC is more collaborative in theory but more administrative heavy
○ NEC puts timescales on its change control procedures.
What is the Building Safety Act 2022?
Introduced to reform building safety legislation in response to Grenfell.
- Enhanced safety measures: new regime for higher’risk buildings (at least 18m high or at least 7 storeys and 2 or more residential units)
- New regulatory bodies: Building Safety Regulator (high-rise), National Regulator of Construction Products & New Homes Ombudsman
- Competence & Accountability: Improve competence of those responsible for overseeing, managing and delivering works to high-risk buildings
Why do you think there was little appetite in the Market for single stage?
Buoyant market, lots of jobs to tender for. Contractors don’t want to risk spending £100k+ on tendering costs, particularly when there are are up to 9 contractors bidding for the same job.
Can you advise on the advantages and disadvantages of utilising a framework agreement?
Advantages: Create relationships - spirit of collaboration, Save time - fast procurement process, Contractors pre-qualified, Rates/prices usually agreed upfront
Disadvantages: Less flexibility, reduced competition, potential for complacency, legal complexity
Throughout key issue 1, you maintained the utilisation of a framework agreement and altered the procurement route instead. Was there any consideration over utilising other tendering options?
Potentially open tendering but this would have added time to programme on vetting the contractors. As Advance is connected with NCC, their procurement rules dictated they had to use one of the agreed frameworks (NEPO, FTS)
What are the benefits of asking a contractor to price preliminaries, PCSA fee and OH&P under the first stage of a two stage tender?
- Cost Transparency
- Risk Management
- Enhanced Collaboration
- Competitive Bidding (compare more effectively)
You note that some early packages could be tendered within the PCSA. What packages would you tender?
The packages with the most detail…I would say given the level of design, the earthworks, roads & sewers, piling, external works, internal (acoustic) partitions.
Aware that the appointments would have to be made under the main contract.
What are the risks? Design could change, quotes may only be valid for a short period (knowing that they can increase them post PCSA)
Did you consult any RICS documentation when carrying out the procurement report?
RICS Guidance Document - ‘Developing a construction procurement strategy and selecting an appropriate route’
You note that the cost of tendering a single stage tender would be around £100-150k. How does this compare to other procurement routes? Would you anticipate traditional or construction management to be higher or lower than this?
Traditional with a BoQ would be cheaper due to time saving on measurement. Although Traditional doesn’t always have bills of quantities, can do it on drawings and specification.
Construction Management potentially more as I wouldn’t expect the Employer to have the direct resources (estimator) so they may have to subcontract this out.
Can you provide an example of VE that was implemented within Portland Park?
We changed the specification of the paving. Working with the landscape architect we were able to source some cheaper alternatives. This saved £185k.
Some of the items that we looked at at stage 3 were looking at alternative suppliers for the internal partitions, redesigning the specialist facade panels to a simpler and more cost effective design (less colours) and alterative cladding however it was agreed that it wasn’t possible to implement them officially at this time without further assistance from specialist contractors and stage 4 design detail.
One idea the client did suggest was removing a screen. I could only provide a high level cost saving at the time as it would affect the steelwork and foundation design, but the client requested this be implemented regardless.
What are the benefits and limitations of early contractor involvement in the procurement process?
Utilising them for their buildability input to assist with the design, VE input and their links with specialist contractors. Improved cost certainty. Risk management.
Limitations - success of this approach depends on clear communication, trust, and effective management.
How does risk vary between different forms of procurement?
Traditional:
Design risk - with client
Cost risk - with contractor only if it’s lump sum, approx quants with client
Time - Potential delays if the design isn’t complete
D&B:
Design - Contractor is responsible for design and construction. Quality could be compromised if contractor prioritises costs
Cost - With contractor if lump sum
Time - Should save time with overlap
Construction Management / Management Contracting
Riskiest - design lies with client, cost certainty only when last package is places, time could be saved due to overlap of design & construction and not if subcontractors don’t perform
Can you advise on the difference between construction management and management contracting?
Construction Management - employer directly employs contractors
Management Contracting - employer appoints a management contractor who then appoints the subcontractors
What advice did you give to the client around the change in risk profile between the different procurement options?
Traditional:
Design risk - with client
Cost risk - with contractor only if it’s lump sum, approx quants with client
Time - Potential delays if the design isn’t complete
D&B:
Design - Contractor is responsible for design and construction. Quality could be compromised if contractor prioritises costs
Cost - With contractor if lump sum
Time - Should save time with overlap
Construction Management / Management Contracting
Riskiest - design lies with client, cost certainty only when last package is places, time could be saved due to overlap of design & construction and not if subcontractors don’t perform
You noted that there was a penalty being passed onto the client by the end-user if the building didn’t become operational by December 2026. Was this factored into the liquidated damages?
Yes, the client was responsible for this.
What advice did you provide to the client around the implication of professional fee’s costs between the different options?
You considered it as part of your advice to the client, as the design team had based their fees on a single stage approach. You had to make an assessment and liaise with the design team as to any potential impacts such as post novation fees, however there were no significant changes to the fees.
What you did consider was the addition of the contractor’s overhead and profit they would add to the novated fee, but again minimal impact
Were there any restrictions on changing the framework following issuance of expressions of interest under NEPO?
No, as NEPO, PP and FTS were the only approved options at Advance
Was the project required to adhere public procurement guidelines?
It was yes, due to the connection with NCC and the funding
Can you advise on the advantages and disadvantages of utilising a framework agreement?
Throughout key issue 1, you maintained the utilisation of a framework agreement and altered the procurement route instead. Was there any consideration over utilising other tendering options?
Open tender - not possible with public
Negotiated - also not possible
What are the benefits of asking a contractor to price preliminaries, PCSA fee and OH&P under the first stage of a two stage tender?
Cost transparency
More efficient to compare returns
Did you consult any RICS documentation when carrying out the procurement report?
RICS Guidance: Developing a construction procurement strategy and selecting an appropriate route
You mention under key issue 1 that a single stage procurement route would give the client the most competitive price - can you explain why you believe this to be the case?
Without the second stage, all contractors are bidding to win the tender and will account for all their costs - so prelims, OH&P and the construction costs. They will have built additional risk into their costs
What soft market testing did you undertake?
Soft market testing, also known as early market engagement (EME), is a process where organizations engage with potential suppliers before formally starting the procurement process. This helps organizations gather valuable insights and feedback from the market
None of the contractors on NEPO were suitable, why?
Didn’t have the capacity to tender for the works
Negative feedback received or other projects
Why were contractors trying to push for a two stage approach?
Reduces their risk
Recued tendering costs, particularly in a competitive market
What did you mean when you said that it was a contractors market?
The construction market in the north east is currently very buoyant. Plenty to choose from
Was there a risk to the client that the two stage option may make the scheme unaffordable?
Yes there was, know that contractors could inflate their stage 2 prices.
Counteract by open book basis, 3 packages, offer incentive to finish quicker. pain/gain
How did you make allowance for the difference in a single stage vs two stage procurement route in your cost report?
Programme
PCSA fee
Inflation rate alterations due to longer timescale
Construction Risk
OH&P rates (increasing over time)
Did the successful contractor tender each of the work packages to three subcontractors as you said would happen?
How did you demonstrate value for money?
I benchmarked the project against similar projects using our benchmarking app
You mention you could include incentives for the contractor to perform, what do you mean by this?
Pain/gain with packages
You note under key issue 2 that you developed a VE tracker to ease the budget pressures. Can you give me some examples of the agreed VE options and how they avoided impacting the functionality and compliance?
External works, specification was reduced
What was the total value of the VE savings that were taken forward?
£200k
You mention you were unable to give cost certainty at Stage 3 without the involvement of the main contractor for some of the work packages. Is there a way you could have done this instead of waiting fo the onboarding of the contractor?
Market testing
One of the items you weren’t able to give an accurate cost saving for was the omission of one of the screens, why could you not cost this accurately?
The associated works that would require additional design and input from the structural engineer
You advised that some of the VE options should be revisited at Stage 4, was this not a considerable cost and programme risk? Façade and cinema screen
Yes there will be costs associated that will come from the design team as it’s not just progressing to stage 4 but making some fundamental changes
How did the client have comfort that the budget and therefore their updated funding requirement was accurate?
I created a document showing all the movement and provided the associated back-up and measures.
I also ensure my cost plan was comp checked and peer reviewed
You mention advice around inflation, what advice did you give the client around inflation. Specifically in relation to programme delays?
Based on the rates at the time, I had to alter them slightly taking account additional quarters added to the programme
You mention potential cost penalties from the end user. What was the value of these penalties and how did you factor these costs into your advice?
I don’t know the exact value of these as this is confidential information between the client and their end user.
I do know that their values were taken into account when calculating the LDs
In your achievements you mention that you convinced the client to include a contingency in their budget, how did you/the client arrive to the contingency amount?
I didn’t in the end, but if they ask, we priced all the items in the risk register taking into account the impact and likelihood. (The total of all the EMVs)
If you are faced with a similar scenario in the future, is there anything you would do differently?
No I don’t think I would.
However if I have more time and resource I would’ve approached more subcontractors for quotes
You note the project is currently at RIBA stage 4, what comfort do you/the client have around the budget, and how do you intend to mange this moving forward to keep the scheme within budget?
Regular updates with the risk register
Encourage VE where possible
Ensure the D&B contract is adhered to by the contractor and any changes can be accounted for
What was the level of OH&P on this project, what would you typically expect to see for a project of this size / nature?
I allowed 6% as this is consistent with what contractor’s in the NE are submitting. (Previously 2-3%)
