Technical Flashcards
Contract Practice:
What are the FIDIC 2017 updates from 99?
for Red, Yellow, Silver
DAAB from day one
Longer, more provisions than previous version
MC to indemnify Employer if MC design is not fit for purpose
Notes:
- Increased emphasis on role of Engineer
- More emphasis on dispute avoidance, now Cl. 21 Disputes (was previously with claims Cl 20.)
Contract Practice:
What’s subrogation?
Right for an insurer to legally pursue a third party…
that caused an insurance loss to the insured
Contract Practice:
When should the Contractor provide his Performance Security/Bond to the Employer?
Within 28 days following LOA
Contract Practice:
Suggest improvement for OZ contract?
Insert pandemics under force majeure (clear on time and cost entitlement)
greater alignment with standard FIDIC contract (fairness for Contractor, less tender declines) - from impartial perspective
Design Economics + Cost Planning:
How did I benchmark the link bridge?
Before my time, pre-contract
Notes:
- 1 of a kind/ world first (hard to BM)
- We have other buildings with concrete link bridges, this is steel
Contract Practice:
What are implied terms?
Not specifically stated in contract
but known to exist, or part of law (e.g. Sales of Goods Act 1979)
Note:
Expressed terms - defined in the contract (written)
Procurement + Tendering:
Which procurement route is structured so the Client has a direct contract with the trade subcontractors?
Construction management
Note:
The MC taken and advisory role
Contract Practice:
What is necessary to form a contract? What makes a contract?*
Offer + Acceptance - Tender, contract amendments (acceptance is the one who signs/accepts)
Consideration - MC will build project for £m
Intention - Creates legal relations
Capacity - Parties must have legal capacity to enter into the contract
Legality - The object of the contract be lawful
Good faith and fair dealings (UAE)
Note:
The ‘Offer’ is often thought the FOT. But the ‘Offer’ should be the LOA, because that is signed/’Accepted’ by the Contractor
Procurement + Tendering:
what insurances are solicited for construction projects?
CAR (115% of current replacement value)
Workmen’s Compensation (AED 5m)
Employer’s Liability
Professional Indemnity for 10 years (USD 10m)
Notes:
- Motor Vehicle Third Party and Passenger Liability (AED 3.68m)
- Public Liability (AED 10m)
- Contractor’s Plant and machinery
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)
Contract Practice:
FIDIC Red 99 - how long to pay Contractor following IPC and Final Payment Certificate?
both the same amount of days
56 days
Note:
Sub-Cl. 14.7 payment
Quantification + Costing:
Advise on this type of measure - NRM’s GIA?
GIA is the internal face of external wall
Excludes balconies, stair voids
Notes:
- Similar to GIFA
- Similar to IPMS 2
- Also excludes canopies, fuels room
- Refer NRM1 appendix A
Quantification + Costing:
What is a Prime Cost Price?
not PC Sum
Material not even know e.g. allow £x per m2
Note:
NRM2 def “Where the exact type of product or component cannot be specified, an estimated price for the product or component shall be given in the description as a prime cost price (PC price). State, for example, ‘Allow the PC price of £x per thousand delivered to site’, ‘Allow the PC price of £y per m2 delivered to site’, or ‘Allow £z each delivered to site’.”
Quantification + Costing:
How much is MOS payment our our project?
80% of invoiced value delivered to site
Notes:
- Approximately 80% of 80% BQ rate = 64%
- Quantified and agreed on-site.
- Subbie submits substantiated application through Contractor (includes their MOS) invoice, delivery notes
Design Economics + Cost Planning:
Aside from project viability, how can a cost plan help a QS through pre-contract?
Enable us to control design changes, as the design develops
Presents biggest opportunity for QS to add value
benchmark
set target and limit costs for elements
Project Financial Control + Reporting:
Main Contractor prelim costs on my project?
315m
= 9%
Construction Tech + Environmental Services:
Pre-stressed concrete - describe pre-tensioned concrete?
Steel is tensioned in a frame or between anchorages external to the member.
Concrete is then cast around it.
After concrete has strengthened, tension is slowly released from the frame or anchorage to transfer the stress to the concrete
Design Economics + Cost Planning:
What is element unit quantity (EUQ)?
e.g. area of external walls
without breaking it down further into its specific sub-elements
Contract Practice:
What is Misrepresentation?
a false statement of fact or law which induces a party to enter a contract.
Procurement + Tendering:
How to manage tender qualifications?
Ensure they are only captured in C/T-PTC
Addressed by relevant party - QS, MC, SuperC
Persist with compliance with tender docs
Contract Practice:
What’s a collateral warranty?
Collateral warranties create direct contractual relationships between parties that would not otherwise exist
e.g. Client and Lift Installer
Design Economics + Cost Planning:
What does the term price stability refer to?
boundary between inflation and deflation
Construction Tech + Environmental Services:
“Continue knowledge through PTC meetings, VE workshops, and CPD”. Example of a VE workshop and CPD session?
SOE
car parking accessories workshop with the samples
Kingspan UK home insulation CPD
Quantification + Costing:
There’s an item on drawing but no rate in the BQ, how to assess?*
Reasonable assessments for new works
- star rates,
- 3+ quotes
- first principles
- benchmarking
- apply agreed mark-up
Project Financial Control + Reporting:
What’s the 4x types of period payment mechanisms?
e,g, IPC
Stage - agreed time
Milestone - agreed work/element
Against activity schedule
Valuation e.g. interim against BQ
Quantification + Costing:
Disadvantage of using BQ’s?
Incorrect quants (contradict spec + dwgs)
Missing work items
Note:
Not popular in UK, as who is liable for above. We control here by saying tenderer to measure and the BQ is indicative only
Construction Tech + Environmental Services:
Describe what I know about contiguous piles?
small gap between each, leaks
Capped with a concrete ring beam to join the tops of the piles, for rigidity
Cheapest,
Project Financial Control + Reporting:
Are there any costs you would exclude from a cost report?
SOE “I produce the monthly CR”
Employer’s costs
- their employees
- land costs
- post-completion cost/sales/revenue
- finance cost
Legal fees
Quantification + Costing:
The MOS has been paid for and is the property of the Employer. However, theft has occurred. How is responsible for the loss?
Off-site - party who’s duty it is to protect, likely supplier
On-site - party who’s duty it is to protect, likely Contractor
Project Financial Control + Reporting:
Client wants high accuracy of value of works done to date, at expense of low cash flow predictability - what type of period payment mechanism to recommend?
IPC Valuation e.g. interim against BQ
Note:
against activity schedule (reasonable predictability and accuracy of work done)
Project Financial Control + Reporting:
What’s a milestone payment?
pre-agreed amount upon completion of work element
Good for small projects, or non-QS e.g. Engineer managed
Contract Practice:
What’s a non-material breach of contract?
considered minor;
contract can still be fulfilled, and non-breaching party is still obligated to hold up their end of the deal.
Design Economics + Cost Planning:
Cost plan structure - what is meant by Cost breakdown structure (CBS)?
Cost target for each element, say internal finishes
Construction Tech + Environmental Services:
What tests would be carried out on structural steel?
Bolt tightening or torque test
Magnetic particle inspection test for welding
Visual test for welding
Note:
- Bend testing on shear stud
- Radiographic
Contract Practice:
What are some of the EOT’s regarding on your project?
Changes
- Link bridge EOT-9
IFC/design release delay
- Technical floor delays EOT-7
New works
- Hotel Forecourt Canopy EOT-14
Procurement
- Tower hotels EOT-12
Design Economics + Cost Planning:
OZ metal doors over PS allowance. BS benchmark was okay. Workshop with Contractor identified cause was ANSI specified. This was VE on another Client project. I advised to take saving but Eng overruled as ANSI specified project wide.
Why advise Client on saving at risk of fire integrity?
SOE
Contractor and Client made this change of DHE project
BS is still safe fire rating
Contract Practice:
You “generally request tenderer to comply with CoSC.” What are some of your CoSC?*
SOE
Contractual terms - termination for convenience, 12m DLP
Bonds (Performance Security, Advance Payment)
Insurances (PII, Workmen’s comp)
Payment terms
Note:
Payment terms
- 10% Advance Payment - recovered through IPC
- 10% Delay Damages cap. Charged at 0.5% per week
- Mark-ups for 5% Variations and 4% PS
- 10% Retention - released 2.5% on TOC, 2.5% on draft final acct, and 5% on Final Payment Certificate
Procurement + Tendering:
With two-stage tendering you get the benefit of Contractor design input, but at the expense of?
(vs single stage)
Cost certainty
Possibly water down design intent by MC for buildability puropose
Contract Practice:
What bonds would you recommend for a large building project?
Performance Bond
Advance Payment Bond
Materials Off-Site bond (for many large off-site orders)
Design Economics + Cost Planning:
Following the NRM1 DD cost plan, what steps were taken to produce PTE for ID fit-out works on A4?
SOE
Produced master area schedule, and designated team different typologies
Collated all measures, including gross sense checks
Created POMI BQ - priced measured works using relevant benchmarks, reuse DD costs, first principles
Applied fit-out prelims 10% and contingency of 10%
Design Economics + Cost Planning:
What is element unit rate (EUR)?
complete subcontractor cost for e.g. facade/m2 (includes frame, glass, etc)
Excludes MC costs - prelims, OH+P
Note
- think NRM L1 and L2 cost
Contract Practice:
What’s Time at large?
No completion date,
completed in reasonable time,
no LD’s
Contract Practice:
On the 11m EOT, what was awarded to Contractor?
Prolongation (time-related prelims) costs
Note:
- 11m of time
- no head office overheads, no loss of profit
Contract Practice:
FIDIC Red 99 - what’s the priority of docs?
SOE “I respond to queries such as..?”
/ What would you include in a Contract Document in a construction project?
- Contract Agreement (if any)
- Letter of Acceptance
- Letter of Tender
- The Particular Conditions (Appendix to FOT)
- General Conditions (std contract)
- Specification
- Drawings and
- The Schedules and any other documents forming part of the Contract
Note:
Cl. 1.5 priority of documents
Project Financial Control + Reporting:
Name some contract types/ financial basis?
Lump sum
target sum
cost reimbursement and
guaranteed maximum price
Notes: RICS - the way (mechanism) the contractor or subcontractor is paid for the work it undertakes: - BQ, with or without remeasurement - schedule of rates - activity schedule
Project Financial Control + Reporting:
What is/ what constitutes a variation?
Increase/ decrease in quantity
Change/ substitution of Spec material
Resolve a discrepancy between contract docs
new works (e.g. hotel entrance canopy)
Notes:
- Change any specified sequence or timing of Work
Contract Practice:
What is pay when paid terms?
MC pay subbie in X days of receiving payment
A timing mechanism only
Note:
Generally will not excuse the MC from payment obligation to subbie, regardless of whether MC was paid
Project Financial Control + Reporting:
Your UK employer is building a warehouse in France and paying the local contractor in Euros. What else would you need to advise of beforehand, and include when updating monthly cash flow
fx fluctuations
Notes:
- If Client has cash reserves this can be mitigated upfront by buying Contract Sum worth of Euros and banking this (fixing fx)
- Or more complexly by financial institution hedging against (incur hedging cost)
Contract Practice:
1 key difference between project bank account and escrow account?
PBA - account in name of project parties
Escrow - account in name of third-party
Quantification + Costing:
What’s a Vesting certificate?
Evidence that Employer owns off-site materials (once paid for)
Protection if contractor becomes insolvent, materials wont be sold to pay debtors, before being delivered to site.
Notes:
- defeats third party claims such as retention of title,
- e.g. for advance payments on long-lead item such as facade and lifts
Contract Practice:
Define fit for purpose?
an obligation to achieve a specified result
Note:
higher duty of care than reasonable skill and care
Construction Tech + Environmental Services:
Can you name few functional safety equipment of Swimming Pools, as per DM guidelines for Swimming Pool safety?
Lighting
Depth marking
Ladders, steps
Notes:
- slip-resistant tiles
- Showers and Foot baths
- Toilet and Changing room facilities
- Deck
Contract Practice:
What does employers liability insurance cover,
and what does public liability insurance cover?
Employers - for injury or disease to employee (in course of their duties)
Public - for accidental injury to non-employees and damage to property
Note:
All liability insurance covers the cost of defending and paying out
Project Financial Control + Reporting:
What is included on a change control request/form? (RFC)
Details - dates, transmittal refs, project members
Description/ reason for change
Substantiation (from proposer e.g. MC)
Project Financial Control + Reporting:
when you “compile and issue CR to client you capture remeasurable works, EW, VO, PS, claims, IPC, and salient commercial items for director meetings.” Provide an example of a salient item?
SOE
Pending EOT’s that have not been submitted
Note:
e.g. link
Construction Tech + Environmental Services:
When taking-off, what units of measurement are used for steel and concrete?
Steel is tonnage
Concrete is m3
Contract Practice:
Which FIDIC for small scale project, what form to use?
Green book
Note:
‘Short Form of Contract’
Contract Practice:
Benefits of using a Bond and PCG?
Bond expires after Final Payment Cert (post-DLP),
whereas PCG may be liable for 6/12 years
PCG may be liable for 100% MC losses,
whereas bond is typically 10%
PCG no use if whole group goes insolvent,
whereas bondsman could honour
Notes:
- MC may not wish to give both as overlap, but PB and PCG provide different, complimentary types of security
- PCG not paid for by Client, unlike Bond through tender sum
Project Financial Control + Reporting:
What is the release mechanism with regard to the contingency pot?
The contingency is reduced following the close-out of key risks e.g. enabling works once complete
Note:
- This is a guess
- or balance of remaining allowance should be progressively reduced on an agreed basis. The release of remaining general risk allowance may be made pro-rata to:
- % of completion of programme
- % completion of cost
Project Financial Control + Reporting:
Apart from cost impact, what other factors should be considered in variations?
Time (programme)
LCC considerations
Impact on budget
Procurement + Tendering:
What would you take into consideration when looking at TCQ - Time?
is there time to prepare a complete design
When is the site available
Completion date e.g. Expo 2020
Contract Practice:
Aside from red book for construction, what are some other colours of FIDIC and what used for?
SOE
Blue 2016 - Dredging, reclamation
Green 1999 - Short Form
Silver 2017 - EPC/ turnkey (lump sum)
Yellow 2017 - D+B (lump sum)
Notes:
- Gold 2008 - D+B operate
- Pink 2010 - Construction (multilateral development bank)
- Red 2017 - Construction (Employer design)
- White 2017 - Consultant/ advisory services
Contract Practice:
What is privity of contract?
only the parties to the contract can take the benefits or burdens/obligations (not 3rd parties)
Note:
For example, if A promises to B, that A will pay a sum of money to C, as a general rule, C cannot enforce that obligation against A.
Quantification + Costing:
What is a payment on account for?
payment for an item of work or materials or goods for which no instruction has been issued by the contact administrator to date, but is anticipated’.
Note:
Payments on account are used by QS for any item in a valuation that cannot be agreed under the contract rules but, that both sides agree that some payment is due.
Quantification + Costing:
What’s a Schedule of Work?
Without quantities,
activity/ works descriptions often produced on smaller/ alteration works (think BGW)
Contract Practice:
What is a Tolent clause?
Party who refers to adjudication, pays all costs (regardless of decision)
Design to discourage
Design Economics + Cost Planning:
What are some market factors/ influencing factors on cost plans?
Location
Remediation for brown field sites
Different labour and material costs
The state of the construction economy and general economy - supply and demand
Note:
- Tender process
- Buildability
- Construction type (concrete/ steel frame)
- Height, plan, size and shape
- Site density
Contract Practice:
What are the 3 types of letter of intent (LOI)?
1 Comfort letters - simplest form
2 Consent to spend - up to X value
3 Recognition of contract - includes contract documents
Design Economics + Cost Planning:
Your Client wants to build a new primary school for 500 students in Dubai and has engaged you to prepare the feasibility estimate. What type of estimation method could you advise (assuming no design info)?
Functional unit estimating
Note:
e.g. like a stadium is cost/seat, hospital/patients
Design Economics + Cost Planning:
Name some of the NRM1 group elements?
SOE “in UAE, NRM1 for cost planning”
1: Substructure
2: Superstructure
3: Internal finishes
4: Fittings, furnishings and equipment
5: Services
Notes: 0: Facilitating works ... 6: Prefabricated buildings and building units 7: Work to existing buildings 8: External works 9: Main contractor’s preliminaries 10: Main contractor’s overheads and profits 11: Project/design team fees 12: Other development/project costs 13: Risks 14: Inflation
Contract Practice:
Contractor’s are claiming Cl 8.4 EOT in FIDIC Red 1999 - what’s the key word they cite with regard to Covid-19?
“epidemic”. (Scl. 8.4.(d))
Note:
in context of COVID-19 pandemic that the construction industry is faced with, you were unable to confirm what Sub-Clauses Main Contractors are claiming Cost and Time under (i.e., Sub-Clause 8.4 and 19), and also what the key word in Sub-Clause 8.4 is – i.e., 8.4 (d) states the word “epidemic”.
Quantification + Costing:
What do fluctuations typically relate to?
Materials - rebar (and metals generally)
Labour
Plant hire
Note:
- can go down, normally cost increase however
- fluctuations clauses can be used to offset risk, otherwise MC to price into tender
- fluctuations insurance for materials such as rebar
Quantification + Costing:
How to administer a Final Account with Contractor generally?
(the QS agreement part rather than contractual procedures)
SOE “A4 enabling works”
Check contract procedures for FA including timescales.
1 Contract Sum \+ add/omits for.. 2 Engineers Instructions (VO) 3 Adjustments (PC Sum, Prov Qts, PS) 4 Claims outstanding etc
Negotiated and agreed with QS
Notes:
- Goal is to agree a fair valuation with the Contractor and enable the Engineer to issue the Final Payment Certificate
- Settling can take years e.g. Burj, involving negotiating all financial aspects of Contract and project delivery
- Should be able to withstand stringent financial audit as it is legally binding
Procurement + Tendering:
You mention L1 does not always represent best value and the technical submission is of equal importance. Why might L1 not be best value if it’s the lowest cost?
SOE
e.g. Spec misconstrued,
exclusions,
ability to manage and execute project
Contract Practice:
What is joint and several liability?
e. g. if a JV on large project, all parties are jointly and severally liable to employer
e. g. Employer can can go after them jointly or individually (for whole works)
Note:
- severally = individually
- FIDIC Red 99 Scl. 1.14
Procurement + Tendering:
What are the reasons for robust tendering strategies, according to RICS Tendering Strategies 2014?
1 accountability 2 auditability 3 complete scope 4 parity 5 reduce claims of corruption; and 6 accurate price
Construction Tech + Environmental Services:
Foundations transmit loads to ground. What are the 4 main types of foundations?
Pad
Piles
Strip
Raft
Contract Practice:
What is doctrine of Estoppel?
eSTOP a party from not keeping to contractual promise
Notes:
Estoppel is a legal mechanism which prevents a party from departing from a promise or representation they have made to another party where to do so would be unfair, unjust or unconscionable. The concept of estoppel embraces notions of fairness and reasonableness that results in reliance upon strict legal rights being otherwise overridden. Estoppel in most cases is a defence, as opposed to a basis of a claim, and is used as a shield not a sword.
Project Financial Control + Reporting:
Give examples of Client ‘direct works’,
Give examples of Contractor ‘direct works’?
Client direct costs e.g. OSE and sometimes FFE
Works carried out by Contractor’s in-house labour such as concrete, rebar
Quantification + Costing:
Name the two main types of pricing documents?
bill of quantities
schedule
- SOW (schedule of work)
- priced activity schedule
- contract sum analysis
- stage or milestone payment schedules.
Design Economics + Cost Planning:
Some differences between VE + VM?*
VM
- proactive (early right decision)
- identify important to Client (e.g. gold hotel room)
- workshops
- more pre-contract
VE
- reactive (when over budget)
- more post-contract (can be pre- though)
Note:
- both may cost more, but provide better value (e.g. last longer LCC)
Project Financial Control + Reporting:
The Contractor is ahead of the forecasted cash flow expenditure. The forecasted project total = contract sum. As part of the minimum level of service you need to advise the Client why this may be. What could the reasons be include?
contractor ahead of programme (excellent performance)
materials being stock-piled on site before required
front-end loading
cash flow not inaccurate in first place
Notes:
- impact of variations
- re-sequencing of works, with higher value works carried out earlier
- materials off site not taken into account when producing cash flow forecast
- contractor purposely accelerating the works to complete earlier (and therefore expending less preliminaries)
- potentially overclaiming on IPC’s
Project Financial Control + Reporting:
Are EW values captured in the outturn cost?
Yes, all likely costs
Note:
Worst-case values noted only, do not carry through
Project Financial Control + Reporting:
Describe the change control process on OZ?*
SOE “we have a robust change ctrl..”
1 Anybody initiate/request change - (Emp, consultant, MC)
2 PM assessed
- time impact
- sign-off
3 QS estimate
- ARF (change narrative, cost summary, measurements, BQ/ star rates, mark-ups
4 Employer change approval - accept/ reject
5 VO issued to Contractor
6 AVVO - cost agreed between MC and QS
Notes -
Think of x example
- As per Cl. 22 Variations
Construction Tech + Environmental Services:
What’s bottom up construction?
Like OZ from B7 upwards
traditional and easier
Contract Practice:
What is an agreement?
(as opposed to a contract)
Informal
Often unwritten
Notes:
Contract is written and legally binding
What is meant by Lean construction?
Removing unnecessary construction activity to reduce cost and improve quality.
Note:
Similar, but VM/ VE focus on processes and products
Design Economics + Cost Planning:
Define a cost estimate?
Snapshot of cost at current design stage
Note:
e.g. DD, IFC
Design Economics + Cost Planning:
Typical contents of a cost plan*
5 Summary of Construction Costs
6 Reconciliation
8 Area Schedule
9 Marked up floor plans
10 Benchmarking Analysis
11 Basis - Assumptions + Exclusions (fluctuations, contingencies)
12 Risks + Opportunities
Notes: OZ DD cost plan components 1 Front Cover 2 QAQC sheet 3 Contents 4 Executive Summary - Reconciliation to previous Cost Plan e.g. Concept 7 Low Level – Elements - Reconciliation to Stage D 13 Measured Works Section
Construction Tech + Environmental Services:
What’s the structural composition of OZ?
Reinforced concrete frame
with steel link
- connected using transfer members
Procurement + Tendering:
Describe the tender process on OZ?
1 Tenderer selection (shortlist)
2 Prequal
3 Compiling tender docs (Vol 1-5)
4 Issue - TQ’s, mid-bids
5 Tender return - open
6 Adjudicate - com and tech review, PTC’s
7 Recommendation - Final negotiation, Tender report
Design Economics + Cost Planning:
What is a definition benchmarking, what does it seek to do?
Systematic method of comparing against others
Overall process of improvement aimed at providing better value for money
Best in class performance achieved based on a specific aspect
Note:
examples such as
- rate e.g. fit out contractor VO has plaster at AED 100/m2, but your rate from plastering subbie is AED 16/m2
- To estimate the façade cost in cost planning stages, you could use benchmark from the same façade on another building (assuming oyu had the cost data)
Contract Practice:
What’s novation?
re assignment and novation
Benefits and obligation (of a contract) can be transferred by novation agreement
Note:
Whilst benefits of a contract can be transferred by assignment, if parties wish to transfer both benefits and obligations this must be done by a novation agreement.
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)
Contract Practice:
In my opinion, are time bars a good idea?
Yes - early MC communication enables time to resolve
No - unfair if MC just misses, and could be an injustice if rightful claim
Procurement + Tendering:
What are 3 main types of tendering strategies?
SOE
Single stage
Two stage
Negotiated
Contract Practice:
OZ + FIDIC Red 99 - Can you narrate the interim payment process?
Contract provisions
MC submits statement to Eng (Scl. 14.3)
Eng issues IPC <28 days (Scl. 14.6)
Employer pays <28 days from IPC (Scl. 14.7)
/ <56 days from statement
Project Financial Control + Reporting:
How do you control costs post-contract?
Setup a change log
Review/ estimate each set of drawings as issued.
Design team meetings
Cost report (incl. directly informing client)
Design Economics + Cost Planning:
Difference between WLC + LCC?*
SOE
WLC is broader (think Link bridge)
- non-constructive (land acquisition, taxes, fees)
- income/revenue generation (as advised by others)
- plus LCC
LCC (like buying and running a car costs)
- construction, operational, maintenance/replacement, and demolition
Procurement + Tendering:
What is PFI procurement?
private finance initiative
a way of financing public sector projects through the private sector.
Note:
PFIs alleviate the government and taxpayers of the immediate burden of coming up with the capital for these projects
Construction Tech + Environmental Services:
Facade type used on OZ?
Unitised towers and stick around podiums
Spec is mm glass, 12mm air gap, 15mm glass
Design Economics + Cost Planning:
From my SD cost plan at Aecom, what exclusions did I make?
SOE
Currency fluctuations for overseas investors
Legislation changes
Loose furniture and OS+E
Professional fees (soft costs)
VAT
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
Contract Practice:
What’s Disruption?*
drop in productivity due to interruption, reducing the rate of efficiency.
Note
e. g. imagine a linear project (such as a road/ rail project)
- when MC faces obstruction at a particular location, it may be able to continue works at a different location
- so MC would move the resources to new location
- that particular obstruction (most probably) won’t provide an entitlement for an EOT but it certainly will give an entitlement to disruption
Contract Practice:
Are Contractors entitled to time and cost for Covid-19?
FIDIC yes time and cost under Cl.19 Force Majeure
OZ does not state (its blank).
Note:
Be aware/careful Contractors are not aggregating other claims
Construction Tech + Environmental Services:
Benefits of steel?*
vs. concrete
Fast programme (OSM + installation)
Lightweight (less substructure cost)
Larger spans (tensile strength)
Note:
- recyclable
Contract Practice:
When are the Contractor’s Works accepted?
/ After TOC, and after expiry of DLP, what is issued to the Contractor?
Performance Certificate (Scl. 11.9)
Note:
- Eng issue <28 days of DLP expiry (assuming all is good)
- Sometimes/ previously known as DL Certificate
Project Financial Control + Reporting:
My role regarding the monthly cost report?
SOE “I produce the monthly CR”
Input change management
PS expenditure
have updated the current cash flow costs
Note:
balance change management with PS expenditure to avoid recording cost in both places
Quantification + Costing:
Which NRM advises on compiling a BQ?
NRM2
sets out the elements and the rules for measuring (substructure, superstructure)
Contract Practice:
Some examples of breach of contract by Employer?
Failure to give possession of site
Termination for convenience (unless OZ contract)
Non‐payment
Procurement + Tendering:
What are the methods of selecting tenderers?
Open tendering - public
Selective tendering - closed
Single contractor selection - for negotiating
Quantification + Costing:
Steps involved in interim payment (IPC)/ valuation?
SOE “I carried out monthly enabling works on A4”
MC submits application to PM
My assessment within 28 days, PM issues IPC
- site visit (BQ accuracy, MOS)
- request substantiation if required
Employer pays <28 days from IPC
/ <56 days from statement
Construction Tech + Environmental Services:
High-level of strand jacking process?
Strands are jacked-up
Strand is held in place - jack drops down
Note:
Repeat - strand is jacked up, strand is held in place, jack drops down
Project Financial Control + Reporting:
What procurement routes are stage payments most associated with?
D+B
Procurement + Tendering:
Provide an overview of two-stage tendering?*
1st stage:
- tenderer prices concept dwgs, spec, prelims, SOR, OH+P, and design development
- “preferred” MC develops concept design (as part of design team), on PCSA
2nd stage:
- negotiated
- not obliged to appoint, MC paid for design on PCSA
Note:
- Benefit is early MC involvement for their buildability skills
- Closed tender, prequalified
Construction Tech + Environmental Services:
OZ Max depth/ thickness of raft slab?
9m
Contract Practice:
What is meant by Contractor’s design portion?
an agreement for the contractor to design specific parts of the works
Note:
JCT speak
Contract Practice:
How should the retention fund money be held by the fiduciary (employer)?
Separate account, preferably escrow
Contract Practice:
Which FIDIC contract for consultants?
White (2017)
Quantification + Costing:
What is the RICS Code of Measurement Practice?
Obsolete SMM
UK use only
Note:
- As most SMM’s, to provide precise definitions/rules for measuring
- was for valuating, conveyancing, planning, taxation, sales, letting, acquisitions
- GEA, GIA, NIA
Design Economics + Cost Planning:
Can you name the two definitions detailed in the DM Area Definitions 2008?
Floor area ratio (FAR) - similar to NIA
- usable area
- circulatory only
Built-up area (BUA) - similar to GEA
- all area
- excl. MEP shaft
Quantification + Costing:
How to agree the draft final account on A4 enabling works - what was process?
SOE
[post TOC. DLP 1yr had started]
Contractor submits draft final statement (includes engineer approved as-built dwgs)
I/we assess and agree variance from Contract to As-built (no PS, etc) - new items not in BQ were priced using framework agreement
Note:
I left project during DLP…
- [DLP ends]
- Contractor submits Final Statement and Discharge
- Engineer issues Final Payment Cert <28d
- Employer pays <56d
Quantification + Costing:
What does NRM3 provide guidance on?
SOE
WLC and maintenance works
Contract Practice:
What are three problems that arise when Standard Form of Contract is changed?
The interaction between clauses
The interaction with law (common/civil)
Time taken to draft and approve
Notes:
- Contract may become unfair/ too onerous
Contract Practice:
What are the 4 court structures in UAE?
1 Court of First Instance (claim right to go court)
2 Court of Appeal (contest decision of First Instance)
3 Court of Cassation
4 Federal supreme court of Abu Dhabi
Design Economics + Cost Planning:
What is escalation/ and escalation clauses?
Increase or decrease in cost of labour or materials due to inflation (e.g. rebar)
The clause would allow e.g. the Contractor to claim the variance (50/50 often pain:gain share with Employer)
Construction Tech + Environmental Services:
Process for bored friction pile?
Bore excavate, bentonite, rebar, concrete.
Later break pile and cap
Note:
replacement (rather than displacement) pile
Contract Practice:
Drawbacks of increasing advance payment to say 25% to achieve lower tender sum?
negative effect on Client cash flow
Higher Client risk (although can be bonded)
Note: Benefits tenderer with - mobilisation costs, - material purchase of long lead items, - their cash flow
Construction Tech + Environmental Services:
Types of displacement piling?
Pre-cast/ driven
Sheet
Construction Tech + Environmental Services:
What’s meant by the term thermal mass?
Ability of material to absorb and store heat
Note:
- Concrete is good as it is dense
- Steel conducts heat too rapidly, in sync with building
- Timber absorbs heat slowly, like a sauna
Contract Practice:
What is an open ended performance bond?
auto renewed until occurrence like TOC reached
Note:
Expiry date mentioned auto renews
Contract Practice:
What is PCSA and what situation may it be used for?
Pre-construction services agreement
enable clients to employ contractors before the main construction contract commences
Notes:
- Typically they are part of a two-stage tender process, used in the first stage to procure contractor involvement in the design process
- copyright clause allows client to use design with new contractor
Design Economics + Cost Planning:
What is cost target?
..for each element (e.g. internal finishes)
Project Financial Control + Reporting:
A Variation has been instructed that pushes the anticipated final account above budget, what action would you take?
notify Client immediately of instruction (if they overlooked ARF)
Record in cost report
Contract Practice:
What contract type/ payment mechanism would you advise should the client not wish to take the risk on ground conditions?
GMP
Construction Tech + Environmental Services:
What are some of the predominant environmental factors related to piling works?
CO2 emission (volume of material, transport, energy consumption),
waste generation
soil contamination
noise and vibration
air quality
Contract Practice:
What’s culpable delay?
EOT - as no fault of MC
Contract Practice:
What is Sectional Completion?
allowing completion dates for different sections of works. Common on large projects that are completed in sections, allowing client to take possession of the completed parts, whilst construction continues on others
Have separate LD’s for separate Sections
Design Economics + Cost Planning:
Why is VAT excluded from cost plan?
Not qualified to provide professional guidance
Different Clients incur different VAT levels
Different projects such as schools may have VAT incentives
Design Economics + Cost Planning:
What are the two types of construction inflation?
Construction - from tender return –> building e.g. steel rates
Tender - from cost plan estimate –> tender return
Contract Practice:
What is an MOU?
Memorandum of understanding
Notes:
- Similar to contract but need not contain legally enforceable promises
Quantification + Costing:
A contractor completed works before 1 Jan 2018. Some payments were made before and after 1 Jan. What should they pay VAT on (ultimately instructed by PM) - but what did they do on mbr?
VAT was applicable for when the works were carried out. In this instance, none
Procurement + Tendering:
What is an ‘Employer’s Requirements’ doc?
For D+B
Want the Employer requires (like a Spec/ building functionality)
Construction Tech + Environmental Services:
OZ Waterproofing for raft and basement?
3 layer membrane (tanking)
Contract Practice:
FIDIC Red 99 - After the Contractor receives Letter of Acceptance from Employer, how many days until they enter into contract?
(assuming not agreed otherwise)
28 days
Note:
Cl. 1.6 contract agreement
Project Financial Control + Reporting:
The Contractor is ahead of the forecasted cash flow expenditure. The forecasted project total = contract sum. As part of the minimum level of service you need to advise the Client why this may be. What could the reasons be include?
contractor ahead of programme
impact of variations
materials being stock-piled on site before required
Notes:
- front-end loading
- re-sequencing of works, with higher value works carried out earlier
- materials off site not taken into account when producing cash flow forecast
- contractor purposely accelerating the works to complete earlier (and therefore expending less preliminaries)
- cash flow not inaccurate in first place
Contract Practice:
Benefit of using SFC unamended?
Drawback of Client bespoke?
SOE
SFC
- Tried and tested courts (clause overlaps)
- Fast (client bespoke lawyer review)
- Better response from market as familiar with terms (less tenderer risk)
- administering experience
Note:
- too onerous
- Law implementations
Procurement + Tendering:
Provide an overview of single-stage tendering?
Closed
prequalification
tender,
adjudicate/PTC
recommend
Construction Tech + Environmental Services:
What ventilation systems do I know of?
natural ventilation - windows
mechanical ventilation - AC, radiators
Quantification + Costing:
Translate Quantum Meruit?
And what is it used for?
‘the amount deserved’ / or ‘what the job is worth’
Where no price included for in the Contract (work done outside of contract scope). e.g.
- works done on an LOI comfort letter or LOI consent to spend
Note:
- Quantum Meruit is where MC seeks payment for value of works where a pre-agreed cost has not been determined.
Construction Tech + Environmental Services:
Benefits on reinforced concrete frame for OZ?
Go high as strong under compaction,
Inherent fire protection
Note:
- can drill through for services,
- cheap local labour
Construction Tech + Environmental Services:
Concrete grades e.g. C20 - what do the grades relate to?
Comprehensive strength
Note:
think cube test
Quantification + Costing:
What is double handling?
Moving material twice
Note:
Material to the wrong place, move it twice - e.g. gypsum used, moved to storage, then required again
Contract Practice:
What is the definition of Adverse climatic conditions in FIDIC?
Abnormal, based on recent historical data
Construction Tech + Environmental Services:
Considerations prior to basement construction?
Underground services,
adjacent properties (party wall),
water table
Note: Strata tests (CBR, trial bore hole)
Quantification + Costing:
What’s an All monies clause?
MOS
seller retains ownership until payment of all monies owed by the buyer
Note:
This type of clause renders it unnecessary, in the event of an insolvent buyer, to reconcile invoices against specific goods to establish what has been paid for, and what has not, and hence what the buyer owns, and what it does not
Procurement + Tendering:
Is two-stage always lump sum?
No, can be cost plus, remeasure
Project Financial Control + Reporting:
Construction - key quantities and rates
- Facade towers UCW
- Rebar rate
- Concrete
- Shuttering
- Steel UB
Facade towers UCW = AED 2-3000/m2 (varies)
Rebar rate = AED 3.33/kg
Reinforced slab, 300mm thick = AED 450/m3
Shuttering m2 @ AED 150/m2
Steel UB 920x420x390 = AED 8,500/t
Construction Tech + Environmental Services:
Types of replacement piling?
- Bored
- Contiguous (cheapest, small gap between each, leaks)
- Diaphragm wall
- Secant (male and female, 1 reinforced, 1 not)
Project Financial Control + Reporting:
You advise Client with high-level cost impact assessments. Provide an example of one?
SOE
new toilet cubicles on latest IFC drawings - EW captured in cost report
Construction Tech + Environmental Services:
Pre-stressed concrete - describe post-tensioned concrete?
cast around ducts or sheathing in which the tendons are housed
Carried out after the concrete has cured by means of hydraulic jacks operating from one of both ends
Contract Practice:
What conditions can a conditional Performance Bond be called?
under performance,
walk off-site,
to begin arbitration proceedings
Note:
- 10% on demand (un-conditional)
- typically expires <21d after Performance Certificate
Contract Practice:
What events are typically covered by Workmen’s Compensation cover/indemnify?
Occupational death and disability
Loss of wages (cash allowance)
Medical expenses
Note:
- protect employer against their liabilities to employees in respect of injuries suffered by them in the course of their employment as per Labour Law/Workmen’s Compensation Ordinance.
- In UAE compensation is governed by Chapter 8 of Federal Law No. 1980
Design Economics + Cost Planning:
What is often excluded from a cost plan?*
Currency fluctuations (for overseas investors)
Loose FF+E and OS+E
Professional fees (soft costs)
VAT
Land costs
Revenue generated from asset
Note:
- Asbestos and remediation cost
- Section 106 (UK)
Design Economics + Cost Planning:
What is cost checks / checking?
check current estimate against previous cost targets
Note
- cost checks at all design stages
Quantification + Costing:
What are drawbacks of Prov Sums?
Cost uncertainty
Contractor not incentivised to squeeze supplier/subbie on price
Contract Practice:
What projects are suited to DBFO contracts?
a bridge with toll gate
Note:
Design, build, finance and operate
Contract Practice:
What is a decennial liability?
10yr insurance that covers the event of building partial or full collapse post-completion
And latent structural defects that compromise the building’s safety and/or stability.
Construction Tech + Environmental Services:
Why do you think steel was chosen for the link bridge?
Extensive glazing, large open spans,
strong under tension,
aesthetics
Notes:
assemble on floor and lift (OSM principle)
Design Economics + Cost Planning:
Cost plan structure- what is meant by Work breakdown structure (WBS)?
Costs into trade packages
Note:
- e.g. joinery costs, decoration costs
Procurement + Tendering:
What would you take into consideration when looking at TCQ - Quality?
Design control
Quantification + Costing:
When did the IPMS residential come into effect?
May 2018
Construction Tech + Environmental Services:
Steel grades e.g. S235 - what do the grades relate to?
Tensile strength
Contract Practice:
What is the prevail clause in the Contract?
When there is an ambiguity, the prevail clause mentions which document shall take priority.
Contract Practice:
What is the difference between collateral warranty and warranty?
Business - Collateral warranty is between Client and Subcontractor.
Product - warranty is for the Client for the actual product (not subcontractor)
Design Economics + Cost Planning:
You mention you obtained PC rates for stone - as Singaporean based spec. What alternative stones were you benchmarks based upon?
SOE
Similar characteristic - but alternate supplier/quarry
Procurement + Tendering:
Example of a loaded rate?
High rate that does not impact/ carry through to tender amount
- Rate only items
- Low provisional qty
- If on remeasure, with low indicative BQ qty
Contract Practice:
What is Contra Proferentem?
if ambiguity about meaning or scope of an exclusion clause/or contract, it works against party who drafted the contract (rather than helps them)
Note:
- (of the interpretation of an ambiguous contract) against the party which proposed or drafted the contract or clause
- UAE Civil Code Article 266 states “A doubt shall be interpreted in favour of the obligor”
Contract Practice:
When is the Performance Security (Bond) required to be
- issued
- returned (expire)?
Issued after LOA, before Commencement Date
Returned <21d after Performance Certificate
Note:
Refer FIDIC Red 99 diagram
Quantification + Costing:
What’s a Contract Sum Analysis?
Either prepared by MC as part of D+B tender, or by Employers QS for tender comparison
can form basis of payment administration post-award
Note:
Elemental breakdown of contract sum
Quantification + Costing:
“A4 led team for BQ production”. What did this entail roughly?
SOE
Initial take-off to produce an area schedule.
Shared with team and collated their take-offs
create POMI BQ
Contract Practice:
What are accepted insurance exclusions as per FIDIC Red 99?
Force Majeure
- War, hostilities
- Rebellion, terrorism
- Riot, disorder, strike
- Radiation, explosions
- Natural disasters - earthquake, hurricane
Note:
In FIDIC 87 (Scl. 21.4) this is under exclusions, now 99 is Force Majeure
Contract Practice:
What does third-party/public liability insurance indemnify?
legal liability for Property Damage or Death/Personal Injuries to Third Parties
Note:
- arising out of operation of the insured business within the Territorial Scope
- typically AED 5-10m indemnity
Construction Tech + Environmental Services:
When would you prefer raft foundation?
Spreads load over building footprint, larger m2
Concrete slab for good soil bearing capacity
Good for poor load bearing soils/ sands (e.g. a pad fdn needs good strata)