Construction Process Flashcards
What is the Bill of Quantities?
A detailed and itemised list of components required for construction prepared by quantity surveyors from drawings
It forms the basis of a contract and is the most important document in a contract.
Who prepares the Bill of Quantities?
Usually the quantity surveyor employed by the owner or the building contractor’s surveyor
The building contractor may prepare their own Bill from the owner’s drawings.
What is the purpose of the Bill of Quantities?
To provide a definite agreed cost before committing to a contractual agreement
It helps in determining the cost of a building.
How are tenders awarded in the competitive tendering process?
Contractors submit tenders and the lowest tender is usually accepted, unless unrealistically low
This process limits the profit margins for contractors.
What must be completed before preparing the Bill of Quantities in a Bill of Quantities contract?
Drawings and specifications
This ensures accuracy in the Bill of Quantities.
What does the Bill of Quantities list?
Labour and materials necessary to complete the project
The tenderer prices this list to obtain the tender price.
What is the benefit of a Bill of Quantities contract?
Client knows the extent of financial commitment before building activities commence
It allows for calculation of variations in the form of additions and omissions.
What is a Schedule of Rates contract based on?
A provisional Bill of Quantities
It is used in similar manner to the Bill of Quantities contract.
When is a Schedule of Rates contract typically used?
When time is limited
It allows for completion of the Bill of Quantities while contractors are tendering.
What is the main difference between a Bill of Quantities contract and a Schedule of Rates contract?
The Bill of Quantities is fully prepared before tendering, while the Schedule of Rates is provisional and completed during tendering
This affects the timing and preparation of the documents.
True or False: The lowest tender is always accepted in the competitive tendering process.
False
The lowest tender may not be accepted if it is unrealistically low.
Fill in the blank: A Bill of Quantities is prepared by _______.
[quantity surveyors]
They use drawings from architects and structural engineers.
What is a key feature of the Bill of Quantities contract regarding financial commitment?
The client is acquainted with the extent of his financial commitment before building activities commence
This transparency helps in financial planning.
What is a packaged deal contract?
A contract where the contractor provides all services, including planning and construction.
The owner saves on administration costs, but success depends on the owner’s knowledge of the building trade.
What are the problems associated with packaged deal contracts?
The client may not receive what they anticipated, and variations can lead to issues.
These problems stem from the contractor handling all aspects of the project.
What is a direct labour contract?
A contract where the contractor supplies only the labour, and the client supplies the materials.
This type is similar to the labour only contract.
What is a labour only contract?
A contract where the contractor provides only the labour, and the client provides the materials.
It does not differ much from the cost-plus contract.
What is a significant disadvantage of the cost-plus contract?
The client does not know their financial commitment until the contract is completed.
Variations are automatically adjusted in cost-plus contracts.
What are the advantages of the cost-plus contract?
- All variations are automatically adjusted
- Project can commence quickly without long delays for drawings
This allows for flexibility in managing project changes.
What is the typical profit percentage agreed upon in a cost-plus contract?
Usually between 10% and 15% on the cost of materials and labour.
An overhead charge is also included.
What is a lump sum contract?
A contract based on drawings and specifications, where the total cost is agreed upon before the project starts.
It is employed for simpler projects and does not lend itself to adjustments easily.
What are the disadvantages of a lump sum contract?
- Owner does not know the total cost at commencement
- Leads to disagreements and litigation
Adjustments for site conditions or special requests can be contentious.
Fill in the blank: In a direct labour contract, the contractor only supplies _______.
the labour.
What is the most common tendering process?
Competitive tendering
What is open tendering primarily used for?
To obtain tenders for building work
How does an employer advertise for open tenders?
In the national and technical press, giving brief details of the proposed works
What is a common condition laid down in open tender advertisements?
The tenderer must pay a deposit that is returned upon receipt of a bona fide tender
What does the advertisement for open tendering represent?
An invitation to persons to make an offer
True or False: An advertisement for open tendering legally binds the employer to accept any tender.
False
What is a potential downside of indiscriminate requests for open tenders?
They can lead to buildings of poor quality and consume time, effort, and money
What is the purpose of selective tendering?
Used for building work of a very difficult nature, where the contract magnitude may be unknown
What is a negotiated contract?
A method of negotiating contracts, often used when there isn’t enough time for traditional processes
What is the serial system in negotiated contracts?
Selected contractors are invited to tender for one building with the understanding of future similar contracts
What are the advantages of the serial system?
Encourages better prices and allows for efficient organization of labor and materials
What is a prime cost contract?
A contract where total costs of work are determined, and the contractor’s fee is added
List the three types of prime cost contracts currently in use.
- Cost Plus
- Cost Plus Fixed Fee
- Target Cost with Fluctuating Fee
What is one risk associated with selective tendering?
The price obtained may be higher than one obtained by competition
Fill in the blank: The employer does not bind herself to accept the ________ tender.
lowest
What represents one of the first steps toward the success of a project?
A solid contract
A solid contract helps outline obligations and responsibilities.
How many documents can a full-fledged construction contract include?
As many as 10 documents
These documents specify different aspects of the work.
What is the principal agreement between the construction contractor and the client called?
Construction Contract Agreement
This document is essential and to which most other documents attach or refer.
What is the purpose of the Scope of Work document?
To enumerate all of the work to be done, responsibilities, techniques, and materials
It details how change orders are handled.
What does the construction schedule inform the contracting client?
How and when the project will be completed
It offers leverage when schedule problems arise.
What is the significance of the General Conditions portion of a construction contract?
It sets forth the rights, responsibilities, and relationships between the client and contractors
It includes stipulations for dispute resolution.
What does the Special Conditions document specify?
Certain conditions and clauses that pertain to specific portions of the work
It serves as an extension of the General Conditions.
What information is included in the specifications section of a contract?
All technical data and requirements
It details materials and techniques expected to be used.
Fill in the blank: The construction schedule is the second most important component after the _______.
Construction Contract Agreement
True or False: The General Conditions portion of a contract includes the legal framework for resolving disputes.
True
What must be discussed and negotiated at the time the contract is developed?
Specifications
Changes to specifications are often handled under conditions laid for change orders.
What are specifications in the context of contract documents?
Specifications supplement the documentation done by the architect.
What is a nominated sub-contractor?
A sub-contractor appointed by the client to carry out an element of works.
True or False: Nominated sub-contractors are typically appointed before the main contractor starts work.
False.
What can a nominated supplier impact in a construction project?
The project specification, programme, and budget.
Fill in the blank: A nominated supplier is a particular supplier _______ on the main contractor.
[imposed].
What is the primary drawback of nominating a supplier?
The contractor cannot shop around for the best price or supplier.
What allows the client to have direct separate negotiations with a nominated supplier?
The contractor is entitled to add mark up and attendance costs.
List the reasons a client may wish to use a particular supplier.
- An existing relationship with the supplier
- The goods are widely available
- A particular product brand is required.
What does the mechanism for nominating a supplier involve?
An instruction in relation to a prime cost sum.
What type of design input is required in the early stages of design development?
Specialist design input.
What happens if the supply contract is with the main contractor?
The client should ensure a direct warranty with the nominated supplier.
What is the role of the main contractor in relation to nominated sub-contractors?
The main contractor is responsible for the performance of nominated sub-contractors.
True or False: The complexity of contracts has led to some forms no longer including provisions for nominated suppliers.
True.
What is often included within the main contractor’s tender?
A Bill of Quantities or specification of work.
What is indicated if quantities form part of the contract documents?
A comprehensive finishing schedule is provided.
Fill in the blank: The specifications can be dispensed with if _______ appear in the Bill.
[descriptions].
