Competency topics Flashcards
How does NRM Mitigate risk?
- Risk Avoidance - When the risk is unacceptable and must be avoided e.g. alternative design
- Risk Reduction - level of risk is still unacceptable and is reduced e.g through different materials or construction method
- Risk Transfer - pass the responsibility to another party, may still cost the employer but the cost of the risk is less than the cost of the premium e.g. through insurance
- Risk Sharing - occurs when risk cannot be completely transferred but shared between parties
- Risk Retention - Risk retained by the employer
Name the basic principles to risk mitigation
- Elimination
- Substitution
- Engineering Controls
- Administrative Controls
- PPE
What Constitutes a legally binding agreement
- Offer
- Acceptance
- Consideration
- Capacity
- Legality
- Intent
What does JCT stand for and when was it founded
Joint Contracts Tribunal
1931
Name 5 types of JCT Contracts
JCT Standard Building Contract (with and without quantities) JCT Design & Build JCT Intermediate Building Contract JCT Major construction Works JCT Minor Works contract
What does NEC Stand for and when was it founded
New Engineering Contract
1993
Name the 6 Types of NEC Contracts
Priced contract with activity schedule Priced contract with BoQ Target contract with activity schedule Target contract with BoQ Cost Reimbursement Management contract
What are main updates in JCT 2011 - 2016
- Set date each month for valuation as appose to ‘monthly’
- Interim valuations now occur monthly even after PC as appose to every 2 Months in 2011
- Inclusion of CDM Regulation 2015
- Inclusion of Public Contracts regulations
- Any loss / expense must be done within 28 days of receipt or 14 days of an update
- Client is now employer
What are the main differences between JCT and NEC
- JCT are fixed price lump sum whereas NEC offers target price
- JCT allows provisional sums, NEC doesn’t
- Programme is not a mandatory part of JCT contract Docs, it is within NEC
- JCT has relevant events and relevant matters to deal with EOT and loss/expense whereas NEC has compensation events
What are the different roles under JCT D&B and Standard Building contract?
D&B
Employer - payer
Contractor - Payee
Employers Agent - Certifier
Standard Employer - payer Contractor - Payee Contract Administrator - Certifier QS - Valuer
What’s different between patent and latent defects?
Patent defects are obvious defects which are identified before PC, latent defects are hidden defects and occur during the defect liability period.
What is a balance Sheet
A snap shot statement showing a businesses financial position at that point in time. Showing assets and liabilities telling you how much a companies owes and owns.
What is a profit and loss statement
Summary of income and expenditure, usually prepared quarterly or annually
How would you make a cashflow?
If i had no information I would populate a standard S curve however assuming i have a programme I could allocated the budget to the key activities and and then base my cashflow around this.
What is the pupose of a cashflow?
A cashflow can be used for various different purposes:
- A monitoring tool for the client
- To advise client about when they require available funds
What are the 3 stages of insolvency?
Administration - When the court takes control of the company
Liquidation - When the bank sells off assets to pay creditors
Receivership - Creditor appoint receiver for one or more of the company assets.
What would you do if the contractor goes insolvent?
- Immediately go and lock the site
- Recommend that the client change the insurances
- Value the works done to date
- Stop any current outgoing payments
- Take a full inventory of goods on site
- Approach sub-contractors directly to finish off the works.
During Liquidation what is the order of people who get paid?
- Fixed charge holders - Bank
- Liquidator fees / charges
- Preferential creditors - pension / employees
- Floating charge holders
- Clients
What are some signs that a company may have financial issues?
- Industry rumours
- Over valued valuations
- Less labour on site
- slow progress on site
What is a business plan?
A complete description of the business, like a roadmap for the business from a marketing, financial and operations standpoint
What is SWOT and PEST and why are they used?
Strengths, Weaknesses, opportunities and threats - Measures a business
Political, Economical, Social and Technological - Measures trends of the market
Both analysis tools to investigate and organise different aspects or influences on a business, this then feeds into the business plan
How could you identify a client?
- Know the type of client they are, what sector they work within
- Learn their behaviours
- Understand their processes or company systems
- Identify employers requirements and objectives
- Maintain regular contact build a relationship
- Gain feedback regularly
- Do business development actives
What makes a successful complaints handling procedure?
- Be fit for purpose
- made available to all staff
- be understood by all staff
- Readily supplied to complainants or potential complainants
- Regularly reviewed by senior level
- agreed with PII broker / provider
- provide details of access to redress
Types of fee proposals
- Lump Sum or fixed fee
- Time Based Charge
- Percentage based fee
What guidance note is there around fee proposals?
RICS guidance on fees - Transparency consultation final report 2010
What are the 4 factors that may affect a fee proposal?
- Size and complexity of project
- Location of consultant to site
- programme and resources
- Scope of works
What are the 4 main elements of a fee proposal?
- Type - lump sum, % basis, time charge
- Terms & Conditions
- Exclusions
- Assumptions
What are the different types of communications
- Verbal
- Non Verbal
- Written
- Visual
- Listening
What is negotiation?
When both parties negotiate to try and resolve the issue, it is a problem solving efforts f the parties themselves.
What are the types of negotiation
- Neutral Fact finding = when a neutral party investigates the issue and presents findings
- Expert Appraisal = same as above but he person is an expert in the field
- Early Neutral Evaluation = unbiased review of the issue by a 3rd party, process often leader to further negotiation or ADR.
What is Adjudication?
It is the UK Statute dispute resolution, the final outcome is determine by a third party and it is a binding decision.
What is Arbitration?
Private dispute resolution process with provides a legally binding decision that cannot be disputed, It was brought about by the Arbitration act 1996 and must be stated it the contract to apply. However its not recommend as it is expensive and slow.
What is Litigation?
It is a dispute resolution process held at the technology and construction court. All proceedings are public domain and there are no appeals on final decisions. However it is not recommended as it is costly and normally a slow process.
What are the key elements of a business plan?
- The Executive summary
- A description of the business
- The market (s) the business will operate in
- A SWOT or another equivalent analysis
- Management team and personnel
- Products or services offered
- Marketing
- A financial Plan
What is the importance of a business plan?
A business plan is a strategic tool used to create an efficient strategy for growth, determine future financial needs and attract potential funders / investment
What is the RICS complaint handling procedure?
- Allocate complaint to relevant party (unit director)
- Set timescale (28 days)
- Investigate the complaint
- Conclude
- notify the client of the results
- Formally record
- Lessons learnt
How would you prepare for a negotiation?
- Know your strategy
- Choose your negotiation style
- Identify goals
- Prepare a SWOT analysis
- List Pre-meeting questions
- form trading plan
- Set an agenda
- Build a team
What are the 5 ethical standards?
Act with Integrity Act in a way that promotes trust within the profession Always provide a high level of service Treat others with respect Take responsibility
What are the rules of conduct for members?
I - Interpretation C - Communication E - Ethical Behaviour C - CPD S - Service C - competence S - Solvency I - Information C - Co-operation
How do the rules of members differ for firms
I - Interpretation C - Communication P - Professional behaviour instead of ethical behaviour C - competence S - Service C - CPD and Training S - Solvency I - Information C - Co-operation
Adds on C - complaints handling C - Clients Money I - Indemnity A - Advertising A - Arrangements for cover of incapacity or death of sole practitioner U - use of designations
How would you deal with a conflict of interest?
A soon as a conflict of interest is known it must be flagged and highlighted. I would advise the client of the conflict and offer him two options:
a) we terminate our role
b) we continue and put appropriate measures in place
What is an information barrier?
Also known as an ethical barrier it is an clear divide or separation that prevents groups communicating with each other. they must:
- Have separate working locations
- Separate admin teams
- Not communicate or share information