Patpapers Flashcards
2010 1 c
Undertaking design and construction at the same time, give a commentary on what consequences may be
cost of design to increase
final out-turn cost will be unknown before construction starts
design errors might not be checked and rectified before construction starts
construction sequence and timing may have to be altered leading to a longer construction phase
contractor likely to claim for extra costs
consequential risks likely to be borne by the client
instruction is a fundamental change of contract and contractor may demand this to be re-negotiated
problems may result in project actually taking longer
advantages and disadvantages of easure and value contract to contractor and promoter
Contractor ADV Risk of quantity changes with contractor easy estimation can manipulate rates to their advantage
DISADV
requires greater effort and cost tpo establish value during construction
more staff need to be employed to administer contract
Promoter
ADV
Allows for uncertainty in size and quantity of project
makes payment easier
DISADV
retains risk of cost and consequence of increase in quantities
has no control over rates that contractor proposes
requires checks on value of work done by contractor
discuss the process / factors of converting from an estimate to a tender bid
estimators submit a report to be considered by senior management.
they decide on what markup should be applied to different unit rates or the project cost as a whole if risk is considered high. factors:
risk for individual areas or project as a whole if it is considered the probability of losing money is too high
overheads to cover both central and on site costs
profit which will depend onthe prevailing market conditions
discuss if / what contractors are involved with in project life cycle
demand: rarely contractor isntigates or identifies demand
Feasibility: rarely involved except for where ‘early contractor involvement’ is used
Design: in modern contracts often responsible for design phase even if actual design is then contracted to another design company
contracts: in negotiation and also with subcontracts
testing commissioning: for design and build, especially for turnkey projects this is responsibility of contractor
Operation/maintenance:quite common in modern projects, particularly for turnkey contract
decommish: original contractor wouldn’t be involved
Experience and records: will always undertake this for own benefit
Alternative to Activity on Node? how is it different
`AOA Activity on Arrow
doesn’t show the dependencies of activities, focuses on milestone events with duration shown on the arrows
- Comment on criticality of project
14
• Majority of activities = critical, those that are not = small floats, possible exception
• Consequence = very susceptible to delays in individual activities
• Activity must commence on time which requires pervious activity to be complete but all prep work to be done
• Represents risk to promotor, may want to mitigate risk by either changing project logic or ensuring adequate resources for each activity
- Removing precedent between design and construction – consequences?
11
• Project duration may be shortened, however it is unlikely as it requires construction and design to commence simultaneously = very unlikely
• Likely to be a lag of at least 5 weeks between design and construction
• Cost of design = increase final out turn cost = unknown before construction starts
• Design errors might not be checked and rectified b4 construction starts
• Construction sequence and timing may have to be altered lading to longer construction phase
• Contractor likely to claim for extra costs
• Consequential risks likely to be borne by the client
• Instruction is fundamental change of contract = contractor may demand this to be re negotiated
• Problems may result in project actually taking longer
- How can PM ensure critical activity doesn’t affect overall duration (II)
- Critical activity must not go beyond its planned earliest finish time if it not to affect duration of project
- Therefore PM must ensure start time is not affected
- Ensure that duration is not exceeded
- Both will contribute to changes in the finish time
- Achieved by close monitoring and control of each of the critical activities
- List discuss some reasons why an activity which wasn’t critical may become critical during the course of a project (V)
Start times affected: • Previous activities late in finishing • Resources not available or ready • Site not ready • Plans not complete • Design not complete • Permissions not ready
Duration affected: • Insufficient resources • Inadequate resources • Inadequate work areas • Low supply of materials, designs, instructions etc
- Activity x is delayed – if restarted late what u do to mitigate project duration being affected – what are the consequences of dis (V)
- PM will need to monitor activity carefully to ensure the resources used are sufficient
- May be necessary to increase resources to ensure float is not exceeded
- Consequences = extra costs as well as possible detriments to quality
- Significance of critical activities. Why are they critical
- Critical activities as they will influence overall duration if either:
- Delayed in their start time
- If their duration is increased
- Don’t just indicate that float is 0
- Why might an activity take longer to complete than expected (III)
• The planning exercise could have incorrectly estimated realistic duration for the activity
• Could be because planner simply made wrong calculation
• Or more likely used incorrect data
• Data may have been based on historical situations which are not appropriate to current situation
• Or maybe manufacturers published outputs which are used inappropriately
AND
• Actual performance not controlled adequately
• Perhaps wrong resources being used or not enough resources
• Could b many reasons why performance of human resources not good. Eg motivation
