Multiple Choice

Question 1

Which one is most suitable if the designer knows what items are required but design is not sufficiently progressed?
A. Lump sum fixed priced contract
B. Re-measured firm price contract
C. Guaranteed maximum price contract (GMP)
D. Target cost contracts

Answer 1

Re-measured (firm price) contract

Question 2

What does the fast tracking approach include?
A. Overlapping between design and construction stages.
B. Design and build procurement route
C. Potential rework due to incomplete information
D. All of the above

Answer 2

All of the above

Question 3

Which one of the following documents is dangerous for contractors?
A. Letter of intent 
B. Letter of acceptance 
C. Letter of award
D. All of the above

Answer 3

Letter of intent

Question 4

GMP contract is usually selected when;
A. Design is incomplete at start of construction
B. Projects are fast-tracked
C. Lump sum pricing can’t be accurately calculated
D. All of the above

Answer 4

All of the above

Question 5

The main advantage of target price contract pricing is to:
A. Reduce overall design and construction schedule to meet a deadline.
B. Enable construction to start in phases
C. Encourage better value engineering in the project
D. All of the above

Answer 5

All of the above

Question 6

In which procurement option clients may seek subcontract nomination? 
A. Traditional
B. Design & Construct 
C. Management contracting 
D. A&B

Answer 6

Traditional & Design and Construct

Question 7

In which type of procurement route can the contractor not be sued for negligence?
A. Construction management
B. Early Contractor Involvement 
C. Alliancing 
D. None of the above

Answer 7

Alliancing. The only way you can sue through alliancing is through wilful conduct

Question 8

What are the potential project risks of subcontract nomination?
A. Scope conflict
B. Late nomination
C. Adversarial relationships 
D. All of the above

Answer 8

All of the above

Question 9

Which type of contract is associated with a lack of knowledge of the client's financial commitment and lack of incentive for the contractor?
A. Re-measured contract
B. Target cost contract
C. GMP contract
D. Cost Plus contract

Answer 9

Cost-plus contract

Question 10

Which of the following are least achieved when using traditional lump sum procurement route?
A. Control over the design and materials
B. Price certainty before commencement to build
C. Suitability for complex design
D. Control over site planning

Answer 10

Control over site planning

Question 11

Which of the following documents are not used to determine the scope of work in a project?
A. Bill of Quantity
B. Specifications
C. Drawings
D. Letter of acceptance

Answer 11

Bill of Quantities as it is only a schedule of rates

Question 12

Which type of contract is most appropriate where the particular physical conditions are too variable?
A. Cost plus contract
B. Target price contract 
C. GMP contract 
D. Re-measured contract

Answer 12

Cost Plus contract

Question 13

Which of the following are not forms of contractor side abuse in tendering?
A. Bid rigging
B. Price fixing 
C. Price signalling 
D. Market division

Answer 13

Price signalling

Question 14

How can you maximise your value for money in management contracting procurement option?
A. Get collateral warranties from trade contractors
B. Establish incentive scheme with management contractor
C. Appoint an external consultant to oversee the work
D. All of the above

Answer 14

All of the above

Question 15

Which form of contract is used if the contractor has to design some elements in the project alongside construction scope?
A. AS2124
B. AS4000
C. AS4300
D. A&B

Answer 15

AS2124 & AS4000

Question 16

Project procurement is associated with: 
A. How the project participants are organised
B. The tendering process 
C. Contract strategy 
D. All of the above

Answer 16

All of the above

Question 17

Design & Build approach in procurement can be positive because;
A. Clients can finish project earlier
B. Buildability is improved
C. Input by the contractor can lead to more economic design
D. All of the above

Answer 17

All of the above

Question 18

Client flexibility is the highest in the following procurement route:
A. Design bid build 
B. Construction management 
C. Design & build 
D. Management contracting

Answer 18

Construction management

Question 19

Bid rigging can take the following form:
A. Cover pricing 
B. Price signalling 
C. Technical levelling 
D. All of the above

Answer 19

Cover pricing

Question 20

A shared risk culture is basically achieved by the following delivery method
A. Traditional cost Plus with guaranteed maximum price
B. Alliancing
C. Public private partnerships
D. All of the above

Answer 20

All of the above