Commercial Management - Level 3 Flashcards
Manchester Project - Take me through the advice you gave on the Manchester project.
My advice was to instruct the Drylining and M&E subcontractors to undertake their work during the evening shift, that is currently taking place under the contract for noisy works to recover the delay and the cash flow target.
You state that the valuation less than forecast. Explain the causes.
This was due the subcontractor delay, where the drylining and Mechanical and Electrical subcontractors were falling behind programme due to a lack of resources they provided.
Cost recovery options - Accelerating labour – explain how this works.
“Acceleration” occurs when an employer on a construction project requires, or the parties agree to try and bring, the contractual completion date forwards. This is usually done through re-sequencing and/or the deployment of additional or different resources.
Cost recovery options - Resequencing – Explain how you did this.
Areas of the drylining and M&E works were phased in the evening as well as during a day shift, where the works carried out during the day shift were briefed to the evening managers, so that the works could directly follow on in the evening from where the day shift finished.
Cost recovery options - Out of hours evening shift – what about the cost implications, how did you address them?
It was identified that the delays were caused by the subcontractors as they did not provide sufficient labour originally to maintain the programme. Therefore, this was communicated with the subcontractors’ directors and commercial managers, where zero cost instructions were issued for the subcontractors to undertake the re-sequenced work.
Who would be paying for the subcontractor’s night working additional costs for this?
The subcontractors.
Tell me more about the M&E and evening work.
The mechanical and electrical work being undertaken was the installation of electrical containment high level and within partitions, 1st fix electrical cable, high level ductwork and pipework to fan coil units and grilles and diffusers to these fan coils.
Furthermore, the drylining contractor was installing plasterboard partitions.
