Costing / Procurement / Tendering

Question 1

In a design and build contract: (1 mark)

a) The Architect employs the Contractor
b) The Contractor employs the Architect, either as part of their company or
as a consultant to the construction company
c) The Contractor employs the Architect, always as a part of their
company
d) The Principal employs the Contractor and the Architect

Answer 1

b) The Contractor employs the Architect, either as part of their company or
as a consultant to the construction compa

Question 2

Using the Tender process to procure a Contractor: (1 mark)

a) Enables the lowest price to always be achieved
b) Enables the best Contractor to be sourced based on the assessment
criteria setup at the time of opening tenders
c) Enables the best Contractor to be sourced based on the assessment
criteria setup at the time of tender preparation
d) Enables the best Contractor and the lowest price to always be achieved

Answer 2

c) Enables the best Contractor to be sourced based on the assessment
criteria setup at the time of tender preparation

Question 3

NTT’s (Notices to Tender) are: (1 mark)

a) Sent out to only the Contractors who ask questions to clarify the
contract documents
b) Sent out to all Contractors to clarify the contract documents irrespective
of who asked the questions
c) Sent out to all Contractors to clarify the contract documents irrespective
of who asked the questions, and are dated
d) Sent out to all Contractors to clarify the contract documents irre

Answer 3

d) Sent out to all Contractors to clarify the contract documents irre

Question 4

In evaluating tenders, the following processes are followed: (1 mark)

a) Tenders are negotiated to ensure the lowest price is understood
b) Tenders are clarified to ensure the lowest price is understood
c) Tenders are clarified to ensure comparisons are equitable and the
lowest price is understood
d) Tenders are negotiated to ensure comparisons are equitable and the
lowest price is understood

Answer 4

c) Tenders are clarified to ensure comparisons are equitable and the
lowest price is understood

Question 5

In a ‘Construction Management Procurement model’: (1 mark)

a) the Construction Manager employs the architect
b) the Construction Manager employs the works contractors
c) the Client employs the works contractors
d) the Project Manager employs the works contractors

Answer 5

c) the Client employs the works contractor

Question 6

A ‘GMP’ or Guaranteed Maximum Price contract means: (1 mark)

a) The Contractor guarantees the maximum price irrespective of scope
changes
b) The Contractor guarantees the maximum price only if there are no
scope changes
c) The Contractor guarantees the maximum price only if the scope
changes by less than 5%
d) The Contractor guarantees the maximum price only if the scope
changes by less than 10%

Answer 6

b) The Contractor guarantees the maximum price only if there are no
scope changes

Question 7

In a design and build contract: (1 mark)

a) The Architect employs the Contractor
b) The Contractor employs the Architect, either as part of their company or
as a consultant to the construction company
c) The Contractor employs the Architect, always as a part of their
company
d) The Principal employs the Contractor and the Architect

Answer 7

b) The Contractor employs the Architect, either as part of their company or
as a consultant to the construction company

Question 8

NTT’s (Notices to Tender) are: (1 mark)

a) Sent out to only the Contractors who ask questions to clarify the
contract documents
b) Sent out to all Contractors to clarify the contract documents irrespective
of who asked the questions
c) Sent out to all Contractors to clarify the contract documents irrespective
of who asked the questions, and are dated
d) Sent out to all Contractors to clarify the contract documents irrespective
of who asked the questions, and are dated and numbered

Answer 8

d) Sent out to all Contractors to clarify the contract documents irrespective
of who asked the questions, and are dated and numbered

Question 9

At the end of the Concept Design stage of a project, indicative outline
costs of a project can be prepared by:

(1 mark)
a) The Quantity Surveyor using a single line estimate
b) The Quantity Surveyor using an abbreviated elemental estimate
c) The Quantity Surveyor using an abbreviated elemental estimate or the
Architect using a single line estimate
d) The Quantity Surveyor using a detailed elemental estimate or the
Architect using an abbreviated elemental estimate

Answer 9

c) The Quantity Surveyor using an abbreviated elemental estimate or the
Architect using a single line estimate

Question 10

When a client relays a budget to the Architect, which of the following
needs to be established:

(1 mark)
a) If the Consultants’ fees are included or additional
b) If GST is included or additional
c) If GST and Consultants’ fees are included or additional
d) If GST, Consultants’ fees, project costs and fit out items are included or
additional

Answer 10

d) If GST, Consultants’ fees, project costs and fit out items are included or
additional

Question 11

The most accurate estimates for building costs at the Detailed Design
stage of a project are produced by:

(1 mark)
a) The Quantity Surveyor
b) The Cadastral Surveyor
c) The Architect
d) The Contractor

Answer 11

a) The Quantity Surveyor

Question 12

An abbreviated elemental cost estimate for a housing project: (1 mark)

a) Is based on using rates per metre squared to calculate costs
b) Is based on costing 4-5 key elements
c) Is based on costing 12-13 key elements
d) Is based on costing 20-50 key elements

Answer 12

c) Is based on costing 12-13 key elements

Question 13

Fit out items: (1 mark)

a) Are always included in the Architect’s price of the building
b) Are always excluded in the Architect’s price of the building
c) Are either included or excluded as noted in the Architect’s price of the
building
d) Are either included or excluded as noted in the cost plan of the building

Answer 13

d) Are either included or excluded as noted in the cost plan of the building

Question 13

A Schedule of Quantities: (1 mark)

a) Is always used on large constructon projects
b) Is prepared by the architect
c) Saves time for the chosen contractors when pricing tenders
d) Is used to establish the costs of a project in the developed design stage

Answer 13

c) Saves time for the chosen contractors when pricing tenders

Question 14

$/m2 cost estimates: (1 mark)

a) Are often used by Architects to establish the first order of cost for a
project where set rates are used
b) Are often used by Architects to establish the first order of cost for a
project where rates need to be carefully chosen to suit the project
c) Are often used by Quantity Surveyors to establish the first order of cost
for a project
d) Are often used by Architects right the way through all of the project
stages

Answer 14

b) Are often used by Architects to establish the first order of cost for a
project where rates need to be carefully chosen to suit the project

Question 15

When a client relays a budget to the Architect, which of the following
needs to be established:

(1 mark)
a) If the Consultants’ fees are included or additional
b) If GST is included or additional
c) If GST and Consultants’ fees are included or additional
d) If GST, Consultants’ fees, project costs and fit out items are included or
additional

Answer 15

d) If GST, Consultants’ fees, project costs and fit out items are included or
additional