Procurement and Risk

Question 1

What three parts does the Procurement Strategy consist of?

Answer 1

1. Contracting Strategy
2. Contract Document
3. Pricing Strategy

Question 2

What does value of money mean?

Answer 2

optimal use of resources towards achieving the intended outcomes

Question 3

Value of money is assessed using what four E’s?

Answer 3

Economy (Planning Stage)
Efficiency (Implementation Stage)
Effectiveness (Close-out Stage)
Equity (Over the entire project)

Question 4

What are the Steps in delivering value for money projects?

Answer 4

1. Select projects which are aligned
with your strategic needs
2. Define the expected outcomes
3. Maximise Economy via proper planning
4. Identify opportunities for Equity gains
5. Ensure Efficient project execution
6. Review Value for Money achieved

Question 5

Name the four SA Contract documents

Answer 5

GCC
JBCC
NEC
FIDIC

Question 6

Name three commonly used pricing strategies for construction contracts.

Answer 6

Lump Sum contract
Re-measurable contract
Cost reimbursable contract