Contruction

Question 1

What are the differences between contrustion and manufacturing?

Answer 1

Manufacturing sells ranges of products to multitude of customers, construction projects have 1 customer (client) but many end users and stakeholders
Most construction outside, manufacturing inside
Construction is ‘trade biased’ with lots of temp workers, manufacturing has employess
Contracting has a low ‘start-up; cost compared to manufacturing

Question 2

What is a mechanism?

Answer 2

The process or systems by which the constrcuted asset is realised

Question 3

Name some project management tools

Answer 3

CDM and risk assessments
Pricing and payment mechanisms
Project plans and programs
Key performance indicators
Contract strategy

Question 4

What is the definition of the employer/client?

Answer 4

The person/organisation that has the need and will pay for the design and construction of asset

Question 5

What are the stages of the development process?

Answer 5

1) Indetification of need
2) Verify need
3. Options
4. Outline design
5. Detailed design
6. Tender Contract award
7. Construction
8. Optimisation
9. Review
(8 and 9 often done by employer)

Question 6

What is a gateway?

Answer 6

Approval process done by employer between each stage of development

Question 7

What is stage 1 of development?

Answer 7

Identification of need
Requirement in sutiable format, normally a report

Question 8

What is stage 2 of development?

Answer 8

Verification of need
Prelim identification of stakeholders
Prelim identifcation of risks, benefits, costs, timescales
Consideration of funding, budgets, finanace

Question 9

What is stage 3 of development?

Answer 9

Assessment of options
Done by consults, clients with accountant
Feasibility, value, cost, environmental impact, health and safety

Question 10

What is stage 4 of development?

Answer 10

Outline of design
Done by consulting engineers
Prelim design, layout, drawings
Prelim risk assessment
Specialist needs identified
Significant environmental issues identified
Contract strategy
Prelim cost estimate

Question 11

What is stage 5 of development?

Answer 11

Detailed design
Done by deisgner
Finalisation of design, layout, drawings
Health and safety from CDM
Final pre-tender cost estimate
Perpare tender documentation for finalised list

Question 12

What is stage 6 of development?

Answer 12

Tender award and contract
Priced tenders recieved
Tender assessed
Prepare tender report
Client decides who to award contract
Contracts are signed

Question 13

What is stage 7 of development?

Answer 13

Construction
Done by contractor
Client represent by CA
Site supervisor onsite during to ensure all good
‘as-constrcuted’ drawings are produced
Health and safety file handed to client on completion

Question 14

How does change have an affect in the development process?

Answer 14

The further you get through stages of devlopment, the more harder and expensive and change will be

Question 15

What are the margins for cost estimates in stages?

Answer 15

Stage 3 - within 20%
Stage 5 - within 5%

Question 16

Factors affecting the cost variation?

Answer 16

How comprehensive sight investigation was
Quality of contract documentation
Form of contract

Question 17

What is a prcing mechanism?

Answer 17

The means by which the tender price is explained/determined

Question 18

Types of pricing/payment mechanism

Answer 18

Lump sum
Remeasurement - Bill of Quantities
Schedule of rates
Activity schedules
Cost reimbursement
Target Price

Question 19

What are the advantages of BOQs?

Answer 19

All tenderers price docs on same information
CLear rules in standard method
Valuations for monthly payments straightforward
Variations easy to price
Less risk for contractor as QS/Designer produces BoQ

Question 20

What are the disadvantages of BOQs?

Answer 20

Later start date
Disagreements over measurements and quantity
Not suitable for D&B contracts

Question 21

What are the advantages of activity schedules?

Answer 21

Accurate cost estimations
Easy to track activities due to detailed breakdown
Allows flexibility in allocation of resources
Promotes collaboration

Question 22

What is a target price mechanism?

Answer 22

Contractor reimbursed costs
Tenderer bids target price and fee
Payments based on costs + fee until target price reached
Final costs above = pain
Final costs below = gain
Pain and gain shared 50/50 between contractor and client
Limit to this - 10% ceiling price - contractor loses after this

Question 23

What are the advantages of target prices?

Answer 23

Positive incentive for contractor
Incentive for client cooperation
Provides limited client liability
Good for comparing tenders
Reasonable idea of final cost

Question 24

What are the disadvantages of target prices?

Answer 24

Difficult to agree costs as construction proceeds
Determining final payment is complicated
Accounting mistakes can result in overpayment

Question 25

Define a designers role in the devlopment process

Answer 25

Produce necessary drawings and specification
Estimate cost
Project management
Provide contractual and procurement advice on selecting contractors
Assess tenders
Supervise work on site

Question 26

Define a contractors role in the devlopment process