*Essential/ Common (*# = updated, or # = add) Flashcards
Latest RICS news re Covid-19?*
150 redundant jobs/ company restructuring
COVID-19 Recovery Business Plan 2020-21
AGM taking place online this time (20 Nov)
Note:
email from CEO Sean Tompkins on 24/9/20
Business Planning:
What’s a SWOT analysis?*
SOE
Strengths (int)
Weaknesses (int)
Opportunities (ext)
Threats (ext)
Note:
- Situational analysis
- Microeconomic
Conflict Avoidance, Mgmt + Dispute Res Procedures:
Three Pillars of Dispute Resolution?*
N M Adj
- Negotiation
- mediation/conciliation (3rd party)
- adjudication (3rd party binding)
Why was the DD cost plan based on incomplete SD information, why not DD for all?*
Client request to expediate award of MW to commence structural works
This accelerated start on-site. (compared to waiting full full design)
Note:
- Structural was designed first (leads coordination). Arch, MEP, landscape, etc to follow (overlap design and construction)
- I appreciate that ideally DD should be sufficient across all packages, then no need for PS can tender all in MW package
Contract Practice:
FIDIC Red 99 - Can you narrate the final account payment process?*
Contract provisions
[post DNP/DLP, and post Performance Certificate]
MC submits draft final statement to Eng (Scl. 14.11)
Eng reviews <28 days
Once approved, MC submits Final Statement and Discharge to Eng (Scl. 14.11 + 14.12)
Eng reviews <28 days
Eng issues Final Payment Certificate (Scl. 14.13)
Employer pays <56 days (Scl. 14.7)
Opt C - VE:
Examples of VE in Tower B?*
expensive marble floor for a lower cost marble floor (e.g. Europe quarry to China) AED 3m
12mm to 10mm thick low iron glazing (balustrades, partitions)
cementitious ceiling boards to gypsum
Note:
- carpets to lower quality (similar look)
- In other packages, for example the Misc Metalwork, VE for hot dip galv ladders in BOH areas, from SS spec (as not seen)
Quantification + Costing:
What’s a defined PS?
What’s an undefined PS?*
Defined - MC allowed for programme and prelims
Undefined - MC entitled to prelims and EOT if PS causes delay e.g. opening up brownfield ground
Notes:
Included in the Contract for unpriceable works, and works that may not be required, and not sufficiently designed for firm tender price
Valued in similar manner to Variation, MC will prove costs from 3+ subbies and apply agreed mark-up
Procurement + Tendering:
What Contract amendments/departures are typically requested by Main Contractors?*
interview
Payment terms (scl. 14) - Retention, LD’s, Advance Payment
Contractual terms - termination for convenience (OZ), insert corona in force majeure
Performance bonds (scl. 4.2) - perhaps security cheque or PCG instead
Completion date (project duration)
Note:
Contract queries on commencement, delay, suspension (scl. 8)
Business Planning:
What might you expect in a business plan?*
5 year plan
Formal statement of business goals, why they are attainable and strategy to achieve
Budgeting/ financing
Company targets - short and long term
Market forecast/ analysis (SWOT, PESTLE)
Note:
- Feedback/ KPI’s
- New Clients
- Key risks
- Plan B - corrective action plan
- Resources plan - requirements, allocation/ utilisation, % overhead (admin, HR)
- Review of previous 5 years
- Strategy to achieve measurable goals
Sustainability:
What sustainability targets/ environmental assessments on OZ?*
SOE
LEED v3 Gold (achieved)
Professional statement – Rules of conduct for firms 2020. Example of some of the 15 rules?*
SOE
Rule 2 Communication - keep RICS up to date with contact details.
Rule 5 Service - Professional and timely
Rule 7 Complaints handling procedure in place.
Rule 8 Handling Clients money.
Rule 9 PII
Rule 11 Solvency – bankruptcy not permitted.
Rule 12 Locum agreements.
Rule 15 Cooperation with RICS
Contract Practice:
Key differences between OZ and FIDIC Red 99?*#
Adverse weather
- FIDIC is EOT for adverse climatic conditions.
- OZ rainfall excluded (must be unforeseeable and Contractor unable to make provision for)
Termination
- OZ is for convenience with no valid reason required.
- FIDIC Employer cannot appoint another MC
Force Majeure - Duty to minimise delay
- FIDIC is equal responsibility
- OZ is Contractor responsibility
Your Employer is unhappy with the MC, and asks whether they can terminate them to get another Contractor in. They suggest citing Covid-19 as the reason for termination - what would you advise?*
Covid-19 is not a valid reason for termination.
Note:
FIDIC is 14d notice for valid reasons such as
- non compliance
- abandonment
- failure to commence works without reasonable excuse
- MC subcontracts works without agreement
FIDIC is immediate termination for valid reasons such as
- bankrupt/ insolvency
- bribery
OZ has Termination for Convenience
Project Financial Control + Reporting:
What is the purpose of a cost report?*
SOE “I am aware.. cost report provides..”
SOE “I produce the monthly CR”
Regularly monitor and manage known cost throughout the project
Rolling final account - to inform Client of forecasted total project cost (incl. budget concern)
Procurement + Tendering:
What’s a domestic subcontractor?*
Employed directly by MC, on private agreement
Note:
Like OZ
Sustainability:
What do we mean by sustainable development?*
SOE
Brundtland - Meet needs of present, without compromising ability of future generations to meet theirs
Note:
- remember chronologically, meet today, compromise tomorrow
- environment protection
- resources (prudent use, local source)
Did you complete any intermediate estimates as the design developed? If so, explain what happened?*
No, PM did not request pricing of any developing Spec materials, or any intermediate packages for costing
Client was offered this service on cost+ but declined to provide the resource
Notes:
- No, IFT spec and dwg only release post- Cost plan
- Quality was overriding factor
- this is multi-faceted rather than a resi tower
Project Financial Control + Reporting:
Why would a cash flow be behind the target cash flow?*
Site conditions
Adverse weather
Re-sequencing of works (perhaps due to procurement of sub-contractor)
Materials being stored off site (and not claimed for)
Project progressing slower than anticipated
Materials not being delivered on time
Cash flow not being accurate in the first place
The 5 Principles of Better Regulation are?*
PACTT Proportionality Accountability Consistency Targeting Transparency
Notes:
- Proportionality - Regulations to suit size/ risk footprint. Taking on Clients money
- Accountability - Regulators decisions subject to public scrutiny
- Consistency - Regulations across the disciplines
- Targeting - Monitoring e.g. samples for not doing CPD. Using resource to target high profile issues
- Transparency - e.g. CPD can be fined, even expelled
- Classified as ‘Gold Standard’
- Relates to the regulator, not how we as members or firms should conduct ourselves
Procurement + Tendering:
Advise on typical qualifications and exclusions included within a Main Work tender return?*
SOE
Remeasurable offer
Ground conditions
Payment terms
- 30day not B2B
- LD’s
- advance payment %
- retention
Time for Completion date
Exclusions within BQ
PII indemnity level coverage required
Note:
VAT
What could be the impact of Arabtec going into liquidation and dissolution be on the industry?*
Unemployment
supply chain into liquidation
Impact on subsidiaries (Depa)
Increase in cost of Performance Bond’s - as Employers are calling bonds
Note:
Contractors more risk adverse (loss of market confidence)
Risk Management:
Define what is a risk?*
Uncertain event or circumstance,
Potential to effect project
Notes:
NRM definition “the likelihood of an event or failure occurring and its consequences or impact”
re Covid, the Employer asks advice on termination as they are experiencing cash flow issues and they want to stop works - is the Employer entitled to terminate under FIDIC 99 and what is the process of termination?*
FIDIC has Employer’s Entitlement to Termination (Scl. 15.5)
- Cannot complete works himself or with another MC (OZ he can)
Takes effect 28 day after
- Employer returns Performance Bond
- MC will cease works, return materials paid for, leave site
- MC paid for Works done (likely quantum meruit)
Note:
- consider Suspension if short time cash flow issue
- OZ only when required, Employer will need to appoint another MC to complete - timely and costly
Construction Tech + Environmental Services:
Benefits of concrete?*
vs. steel
Inherent fire protection
Can build higher
Good thermal and acoustic properties
Note:
- Strong under compaction
- Less floor-to-floor required (service penetrations through beams)
- Cheaper (UAE labour cost)
What is the RICS draft professional statement - Rules of Conduct Consultation about?*
(email from CEO Sean Tompkins on 26/10/20)
invites feedback on sustainability and respect into our rules, by 7 December
Aiming for one single document, creating a clearer set of Rules.
Note:
The consultation addresses some of the issues identified by our future of the profession research and we want you to help shape how we deliver a new clearer framework.
What are the 5 Global and Ethical standards?*
SOE
STIRR
Service - always provide a high standard of.
Trust - act in a way that promotes trust in the profession.
Integrity - act with.
Respect - treat others with.
Responsibility - take responsibility
What are the contractual provisions under FIDIC Red 99/ OZ regarding Covid-19?*
(same for simplicity)
1 Notice of FM <14days (Scl. 19.2)
2 Consequence of FM (Scl. 19.4)
= Contractor’s Claim (Scl 20.1) for..
3 EOT (Scl 8.4 (d) “epidemic”)
4 cost under (Scl 20.1)
Note:
- OZ is same for simplicity
- only duty to minimise delay with Contractor (rather than Each party)
Conflict Avoidance, Mgmt + Dispute Res Procedures:
Dispute resolution stages on OZ?*#
SOE
Written notice - within 28 days of becoming aware
Negotiation
Dispute Committee (already appointed) - meet within 10 days, agreement in 40 days
Arbitration (DIAC) - file and go to Arb after 56 days
Note:
- Negotiation
- OZ Cl. 32 dispute resolution
Quantification + Costing:
IPC Interim payment certificate/valuations - typical contents?*
SOE “I carried out monthly enabling works on A4”
1 BQ Prelims (demobilisation, mob, time, work) progress
2 BQ Measured work progress
3 Variations
4 Materials on + off site
5 Deductions (Client, PM withholding monies), NCR
6 Payment terms - retention, AP recovery
7 less previously paid
Notes:
- as set out in contract
- add Prelims, measured works, MOS
- ddt Advance payment recovery, retention, ddts, previously paid
Quantification + Costing:
Prerequisite for making an Advance payment?*
SOE “I advised Client 30% AP for kitchen equipment”
Contract in place (AP% stated in Appendix)
Performance Bond in place
Adv Payment Bond (if required)
Recovery agreement (either IPC or milestone)
Accounting Principles + Procedures:
When receive audited accounts from Tenderers, how did I assess these?*
I didn’t, not in scope of services
Also MC responsibility as part of prequal
Note:
PM also has third party accountant - Deloitte
Is the Employer entitled to terminate an insolvent Contractor (Arabtec) on projects - according to FIDIC Red 99?*
Yes
Notes:
- Cl. 15 Termination by Employer
- Scl. 15.2(e) entitled to terminate if Contractor becomes bankrupt or insolvent.
- OZ contract same - Scl. 30.3 Immediate termination
Procurement + Tendering:
What procurement routes available?*
Traditional
D+B
Management Contracting
Construction Management
Note:
- Serial/ Measured Term - typically 3-5 years
- Turn key/ EPC
- Partnering
- PFI/ PPP
Quantification + Costing:
Advise on the benefits of POMI and what it is used for?*
SOE
Tender analysis
For market consistency and familiarity
Standard method of measure - rules based e.g. bulkheads >500m measured in m2
What are the contractual provisions under FIDIC Red 99 regarding Covid-19?*
(OZ same for simplicity)
Force M defined as “beyond party’s control” at time of entering contract (Scl 19.1)
MC to provide notice of FM <14days (Scl. 19.2)
[Consequence of FM (Scl. 19.4) = Contractor’s Claim (Scl 20.1) for..]
- EOT (Scl 8.4(d) “epidemic”)
- cost under (Scl 20.1)
Note:
- OZ is same for simplicity
- only duty to minimise delay with Contractor (rather than Each party)
- Cost assessed on case-by-case basis e.g. if façade being made in China in January causing delay to manufacturing, then would likely be time and disruption if on critical path.
Didn’t you have time to do a PTE after the tender docs were issued, prior to the tender return date 6 weeks later?*
Would of took me several weeks, at expense of other packages being procured
However, would of only shown cost overrun estimate. No time for redesign. Delay procurement.
So better to tender, confirm cost overrun, then have VE expertise on board to streamline process.
Note:
If IFT and Contractor BQ ready, I can and did PTE some packages
Risk Management:
What should the project contingency allowance be based on?*
/What is Simple method of assessment method
for calculating a risk allowance on a project?
On a project specific risk register..
Likelihood x most likely price (min, max, most likely).
contingency = sum total of ‘likely’
Note:
Rather than % driven
Professional statements –
Rules of conduct for members 2020 (9x)
Rules of conduct for firms 2020 (15x)
Example of some of the rules common to both?*
Rule 2 Communication - keep RICS up to date with contact details.
Rule 5 Service – professional and timely.
Rule 6 CPD provided/ undertake 20hrs.
Notes:
- Rule 1 Interpretation (MRICS, AssocRICS)
- Rule 3 Prof/ ethical behaviours
- Rule 4 Competence
- Rule 7+11 Solvency
- Rule 9+15 Cooperation
PII Run-off cover - how long are you required to have run-off cover in place for in the UK and the UAE?*
(interview)
UK minimum of 6 years
UAE minimum of 10 years (as that’s the liability period)
Are there any recent changes in legislation re Covid-19 - e.g. ways to incentivise/protect firms*
Any recent legislation changes in UAE I am aware of?
revised Bankruptcy Law - now offers 12m company protection from bankruptcy in event of “emergency situations” such as Covid.
new Dubai Building Code - one-stop-shop for obtaining approvals
Notes:
- approvals from licensing agencies and departments (faster and reduce costs by streamlining)
- DIFC enacts new Data Protection Law - Aims to closely aligned with the EU’s GDPR