Need To Knows

Question 1

Can you name different tender routes ?

If so what are the differences between them?

Answer 1

Single stage tender - traditional route when you have sufficient design information for the contractors to tender against.

Two stage tender - usually adopted on a D&B contract where the employer requirements are not sufficient enough for the contractor to provide a realistic price. Contractor will tender a price for the design along with a schedule of rates. Enables the client to transfer design risk to the contractor.

Negotiable tender

Question 2

What is the process when Practical Completion is awarded?

Answer 2

• Contractor to supply building control certificate
• Insurances are transferred from the contractor to the client
• O&M manuals
• H&S files
• User manuals

Question 3

What is the difference between a relevant matter & relevant event?

Answer 3

• Relevant event - caused by either the client or a neutral event.
  Examples: variations, non-payment, instructions, strike, act of terrorism.
• Relevant matter - where the client is solely responsible for the delay in a project. This may allow the contractor to claim direct liquidated damages.
  Examples: delay to give possession of site, delays in instructions, payments, failure to provide materials on time.

Question 4

How would you derive at an appropriate PI Insurance level for e contractor?

Answer 4

• Based off of the Contract sum value and any associated costs such as professional fees and the like.

Question 5

How did you value the variations once you are in a contract?

Answer 5

• I would firstly refer to the contract rates.
• if the works are outside of the contract works, I would value the works using Spons or in house cost data.
• if I am unable to price the works, then the day work rates stated within the contract will be used.

Question 6

Can you name the different types of procurement routes?

Answer 6

• D&B
• traditional
• managing contracting
• construction management
• measured terms

Question 7

What is your organisations business plan?

Answer 7

• Continue to grow through new acquisitions
• continue to recruit competent staff
• identify new sectors to work in.

Question 8

What is the structure of the RICS?

Answer 8

• Privy council (awards royal charter / grants)
• Governing council
• Management board
• regulations board
• finance committee
• world regional boards

Question 9

Who is the CEO of the RICS?

Answer 9

Ann Gray

Question 10

Who is the executive director of the RICS?

Answer 10

Richard Collins

Question 11

What is cash flow?

Answer 11

The movement of money in and out of a business

Question 12

How would you create a cash flow forecast?

Answer 12

• From the cost plan and project programme
• can be created on excel
• presented in the form of a graph, S-Curve

Question 13

If a tender was received on time, but the works didn’t commence until a few months later, what would you need to check?

Answer 13

Check the Form of Tender for how long the price/offer is valid for. could be 60 or 90 days.

Question 14

If a Contractor included a Provisional Sum against an item within the Tender, what would you do?

Answer 14

• Seek further information from the Contractor and ask this to be removed
• Provide commentary on this within my Tender Report
• Could possibly invalidate the submission

Question 15

What are the payment timescales for the JCT D&B Contract?

Answer 15

• Contractor to issue valuation before the interim valuation date
• Due Date 7 days after valuation date
• Payment Notice, no later than 5 days after the due date
• Final Date for payment 14 days after Due date