Technical Flashcards

1
Q

Contract Practice:

What are the FIDIC 2017 updates from 99?
for Red, Yellow, Silver

A

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.)
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2
Q

Contract Practice:

What’s subrogation?

A

Right for an insurer to legally pursue a third party…

that caused an insurance loss to the insured

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3
Q

Contract Practice:

When should the Contractor provide his Performance Security/Bond to the Employer?

A

Within 28 days following LOA

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4
Q

Contract Practice:

Suggest improvement for OZ contract?

A

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

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5
Q

Design Economics + Cost Planning:

How did I benchmark the link bridge?

A

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
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6
Q

Contract Practice:

What are implied terms?

A

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)

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7
Q

Procurement + Tendering:

Which procurement route is structured so the Client has a direct contract with the trade subcontractors?

A

Construction management

Note:
The MC taken and advisory role

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8
Q

Contract Practice:

What is necessary to form a contract? What makes a contract?*

A

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

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9
Q

Procurement + Tendering:

what insurances are solicited for construction projects?

A

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
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10
Q

Procurement + Tendering:

What Contract amendments/departures are typically requested by Main Contractors?*
interview

A

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)

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11
Q

Contract Practice:

FIDIC Red 99 - how long to pay Contractor following IPC and Final Payment Certificate?
both the same amount of days

A

56 days

Note:
Sub-Cl. 14.7 payment

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12
Q

Quantification + Costing:

Advise on this type of measure - NRM’s GIA?

A

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
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13
Q

Quantification + Costing:

What is a Prime Cost Price?
not PC Sum

A

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’.”

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14
Q

Quantification + Costing:

How much is MOS payment our our project?

A

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
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15
Q

Design Economics + Cost Planning:

Aside from project viability, how can a cost plan help a QS through pre-contract?

A

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

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16
Q

Project Financial Control + Reporting:

Main Contractor prelim costs on my project?

A

315m

= 9%

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17
Q

Construction Tech + Environmental Services:

Pre-stressed concrete - describe pre-tensioned concrete?

A

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

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18
Q

Design Economics + Cost Planning:

What is element unit quantity (EUQ)?

A

e.g. area of external walls

without breaking it down further into its specific sub-elements

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19
Q

Contract Practice:

What is Misrepresentation?

A

a false statement of fact or law which induces a party to enter a contract.

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20
Q

Procurement + Tendering:

How to manage tender qualifications?

A

Ensure they are only captured in C/T-PTC

Addressed by relevant party - QS, MC, SuperC

Persist with compliance with tender docs

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21
Q

Contract Practice:

What’s a collateral warranty?

A

Collateral warranties create direct contractual relationships between parties that would not otherwise exist

e.g. Client and Lift Installer

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22
Q

Design Economics + Cost Planning:

What does the term price stability refer to?

A

boundary between inflation and deflation

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23
Q

Construction Tech + Environmental Services:

“Continue knowledge through PTC meetings, VE workshops, and CPD”. Example of a VE workshop and CPD session?

SOE

A

car parking accessories workshop with the samples

Kingspan UK home insulation CPD

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24
Q

Quantification + Costing:

There’s an item on drawing but no rate in the BQ, how to assess?*

A

Reasonable assessments for new works

  • star rates,
  • 3+ quotes
  • first principles
  • benchmarking
  • apply agreed mark-up
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25
Q

Project Financial Control + Reporting:

What’s the 4x types of period payment mechanisms?
e,g, IPC

A

Stage - agreed time

Milestone - agreed work/element

Against activity schedule

Valuation e.g. interim against BQ

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26
Q

Quantification + Costing:

Disadvantage of using BQ’s?

A

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

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27
Q

Construction Tech + Environmental Services:

Describe what I know about contiguous piles?

A

small gap between each, leaks

Capped with a concrete ring beam to join the tops of the piles, for rigidity

Cheapest,

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28
Q

Project Financial Control + Reporting:

Are there any costs you would exclude from a cost report?

SOE “I produce the monthly CR”

A

Employer’s costs

  • their employees
  • land costs
  • post-completion cost/sales/revenue
  • finance cost

Legal fees

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29
Q

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?

A

Off-site - party who’s duty it is to protect, likely supplier

On-site - party who’s duty it is to protect, likely Contractor

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30
Q

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?

A

IPC Valuation e.g. interim against BQ

Note:
against activity schedule (reasonable predictability and accuracy of work done)

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31
Q

Project Financial Control + Reporting:

What’s a milestone payment?

A

pre-agreed amount upon completion of work element

Good for small projects, or non-QS e.g. Engineer managed

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32
Q

Contract Practice:

What’s a non-material breach of contract?

A

considered minor;

contract can still be fulfilled, and non-breaching party is still obligated to hold up their end of the deal.

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33
Q

Design Economics + Cost Planning:

Cost plan structure - what is meant by Cost breakdown structure (CBS)?

A

Cost target for each element, say internal finishes

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34
Q

Construction Tech + Environmental Services:

What tests would be carried out on structural steel?

A

Bolt tightening or torque test

Magnetic particle inspection test for welding

Visual test for welding

Note:

  • Bend testing on shear stud
  • Radiographic
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35
Q

Contract Practice:

What are some of the EOT’s regarding on your project?

A

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

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36
Q

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

A

Contractor and Client made this change of DHE project

BS is still safe fire rating

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37
Q

Contract Practice:

You “generally request tenderer to comply with CoSC.” What are some of your CoSC?*

SOE

A

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

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38
Q

Procurement + Tendering:

With two-stage tendering you get the benefit of Contractor design input, but at the expense of?

(vs single stage)

A

Cost certainty

Possibly water down design intent by MC for buildability puropose

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39
Q

Contract Practice:

What bonds would you recommend for a large building project?

A

Performance Bond

Advance Payment Bond

Materials Off-Site bond (for many large off-site orders)

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40
Q

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

A

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%

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41
Q

Design Economics + Cost Planning:

What is element unit rate (EUR)?

A

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

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42
Q

Contract Practice:

What’s Time at large?

A

No completion date,

completed in reasonable time,

no LD’s

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43
Q

Contract Practice:

On the 11m EOT, what was awarded to Contractor?

A

Prolongation (time-related prelims) costs

Note:

  • 11m of time
  • no head office overheads, no loss of profit
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44
Q

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?

A
  • 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

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45
Q

Project Financial Control + Reporting:

Name some contract types/ financial basis?

A

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
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46
Q

Project Financial Control + Reporting:

What is/ what constitutes a variation?

A

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

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47
Q

Contract Practice:

What is pay when paid terms?

A

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

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48
Q

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

A

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)
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49
Q

Contract Practice:

1 key difference between project bank account and escrow account?

A

PBA - account in name of project parties

Escrow - account in name of third-party

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50
Q

Quantification + Costing:

What’s a Vesting certificate?

A

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
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51
Q

Contract Practice:

Define fit for purpose?

A

an obligation to achieve a specified result

Note:
higher duty of care than reasonable skill and care

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52
Q

Construction Tech + Environmental Services:

Can you name few functional safety equipment of Swimming Pools, as per DM guidelines for Swimming Pool safety?

A

Lighting

Depth marking

Ladders, steps

Notes:

  • slip-resistant tiles
  • Showers and Foot baths
  • Toilet and Changing room facilities
  • Deck
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53
Q

Contract Practice:

What does employers liability insurance cover,
and what does public liability insurance cover?

A

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

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54
Q

Project Financial Control + Reporting:

What is included on a change control request/form? (RFC)

A

Details - dates, transmittal refs, project members

Description/ reason for change

Substantiation (from proposer e.g. MC)

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55
Q

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

A

Pending EOT’s that have not been submitted

Note:
e.g. link

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56
Q

Construction Tech + Environmental Services:

When taking-off, what units of measurement are used for steel and concrete?

A

Steel is tonnage

Concrete is m3

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57
Q

Contract Practice:

Which FIDIC for small scale project, what form to use?

A

Green book

Note:
‘Short Form of Contract’

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58
Q

Contract Practice:

Benefits of using a Bond and PCG?

A

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
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59
Q

Project Financial Control + Reporting:

What is the release mechanism with regard to the contingency pot?

A

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
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60
Q

Project Financial Control + Reporting:

Apart from cost impact, what other factors should be considered in variations?

A

Time (programme)

LCC considerations

Impact on budget

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61
Q

Procurement + Tendering:

What would you take into consideration when looking at TCQ - Time?

A

is there time to prepare a complete design

When is the site available

Completion date e.g. Expo 2020

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62
Q

Contract Practice:

Aside from red book for construction, what are some other colours of FIDIC and what used for?

SOE

A

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
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63
Q

Contract Practice:

What is privity of contract?

A

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.

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64
Q

Quantification + Costing:

What is a payment on account for?

A

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.

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65
Q

Quantification + Costing:

What’s a Schedule of Work?

A

Without quantities,

activity/ works descriptions often produced on smaller/ alteration works (think BGW)

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66
Q

Contract Practice:

What is a Tolent clause?

A

Party who refers to adjudication, pays all costs (regardless of decision)

Design to discourage

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67
Q

Design Economics + Cost Planning:

What are some market factors/ influencing factors on cost plans?

A

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
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68
Q

Contract Practice:

What are the 3 types of letter of intent (LOI)?

A

1 Comfort letters - simplest form

2 Consent to spend - up to X value

3 Recognition of contract - includes contract documents

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69
Q

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)?

A

Functional unit estimating

Note:
e.g. like a stadium is cost/seat, hospital/patients

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70
Q

Design Economics + Cost Planning:

Name some of the NRM1 group elements?

SOE “in UAE, NRM1 for cost planning”

A

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
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71
Q

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?

A

“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”.

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72
Q

Quantification + Costing:

What do fluctuations typically relate to?

A

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
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73
Q

Quantification + Costing:

How to administer a Final Account with Contractor generally?
(the QS agreement part rather than contractual procedures)

SOE “A4 enabling works”

A

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
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74
Q

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

A

e.g. Spec misconstrued,

exclusions,

ability to manage and execute project

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75
Q

Contract Practice:

What is joint and several liability?

A

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
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76
Q

Procurement + Tendering:

What are the reasons for robust tendering strategies, according to RICS Tendering Strategies 2014?

A
1 accountability
2 auditability
3 complete scope
4 parity
5 reduce claims of corruption; and
6 accurate price
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77
Q

Construction Tech + Environmental Services:

Foundations transmit loads to ground. What are the 4 main types of foundations?

A

Pad

Piles

Strip

Raft

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78
Q

Contract Practice:

What is doctrine of Estoppel?

A

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.

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79
Q

Project Financial Control + Reporting:

Give examples of Client ‘direct works’,
Give examples of Contractor ‘direct works’?

A

Client direct costs e.g. OSE and sometimes FFE

Works carried out by Contractor’s in-house labour such as concrete, rebar

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80
Q

Quantification + Costing:

Name the two main types of pricing documents?

A

bill of quantities

schedule

  • SOW (schedule of work)
  • priced activity schedule
  • contract sum analysis
  • stage or milestone payment schedules.
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81
Q

Design Economics + Cost Planning:

Some differences between VE + VM?*

A

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)

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82
Q

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?

A

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
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83
Q

Project Financial Control + Reporting:

Are EW values captured in the outturn cost?

A

Yes, all likely costs

Note:
Worst-case values noted only, do not carry through

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84
Q

Project Financial Control + Reporting:

Describe the change control process on OZ?*

SOE “we have a robust change ctrl..”

A

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

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85
Q

Construction Tech + Environmental Services:

What’s bottom up construction?

A

Like OZ from B7 upwards

traditional and easier

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86
Q

Contract Practice:

What is an agreement?

(as opposed to a contract)

A

Informal

Often unwritten

Notes:
Contract is written and legally binding

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87
Q

What is meant by Lean construction?

A

Removing unnecessary construction activity to reduce cost and improve quality.

Note:
Similar, but VM/ VE focus on processes and products

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88
Q

Design Economics + Cost Planning:

Define a cost estimate?

A

Snapshot of cost at current design stage

Note:
e.g. DD, IFC

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89
Q

Design Economics + Cost Planning:

Typical contents of a cost plan*

A

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
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90
Q

Construction Tech + Environmental Services:

What’s the structural composition of OZ?

A

Reinforced concrete frame

with steel link
- connected using transfer members

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91
Q

Procurement + Tendering:

Describe the tender process on OZ?

A

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

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92
Q

Design Economics + Cost Planning:

What is a definition benchmarking, what does it seek to do?

A

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)

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93
Q

Contract Practice:

What’s novation?
re assignment and novation

A

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.

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94
Q

Construction Tech + Environmental Services:

Benefits of concrete?*
vs. steel

A

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)
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95
Q

Contract Practice:

In my opinion, are time bars a good idea?

A

Yes - early MC communication enables time to resolve

No - unfair if MC just misses, and could be an injustice if rightful claim

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96
Q

Procurement + Tendering:

What are 3 main types of tendering strategies?

SOE

A

Single stage

Two stage

Negotiated

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97
Q

Contract Practice:

OZ + FIDIC Red 99 - Can you narrate the interim payment process?
Contract provisions

A

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

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98
Q

Project Financial Control + Reporting:

How do you control costs post-contract?

A

Setup a change log

Review/ estimate each set of drawings as issued.

Design team meetings

Cost report (incl. directly informing client)

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99
Q

Design Economics + Cost Planning:

Difference between WLC + LCC?*

SOE

A

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

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100
Q

Procurement + Tendering:

What is PFI procurement?

A

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

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101
Q

Construction Tech + Environmental Services:

Facade type used on OZ?

A

Unitised towers and stick around podiums

Spec is mm glass, 12mm air gap, 15mm glass

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102
Q

Design Economics + Cost Planning:

From my SD cost plan at Aecom, what exclusions did I make?

SOE

A

Currency fluctuations for overseas investors

Legislation changes

Loose furniture and OS+E

Professional fees (soft costs)

VAT

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103
Q

Procurement + Tendering:

Advise on typical qualifications and exclusions included within a Main Work tender return?*
SOE

A

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

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104
Q

Contract Practice:

What’s Disruption?*

A

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

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105
Q

Contract Practice:

Are Contractors entitled to time and cost for Covid-19?

A

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

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106
Q

Construction Tech + Environmental Services:

Benefits of steel?*
vs. concrete

A

Fast programme (OSM + installation)

Lightweight (less substructure cost)

Larger spans (tensile strength)

Note:
- recyclable

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107
Q

Contract Practice:

When are the Contractor’s Works accepted?
/ After TOC, and after expiry of DLP, what is issued to the Contractor?

A

Performance Certificate (Scl. 11.9)

Note:

  • Eng issue <28 days of DLP expiry (assuming all is good)
  • Sometimes/ previously known as DL Certificate
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108
Q

Project Financial Control + Reporting:

My role regarding the monthly cost report?

SOE “I produce the monthly CR”

A

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

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109
Q

Quantification + Costing:

Which NRM advises on compiling a BQ?

A

NRM2

sets out the elements and the rules for measuring (substructure, superstructure)

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110
Q

Contract Practice:

Some examples of breach of contract by Employer?

A

Failure to give possession of site

Termination for convenience (unless OZ contract)

Non‐payment

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111
Q

Procurement + Tendering:

What are the methods of selecting tenderers?

A

Open tendering - public

Selective tendering - closed

Single contractor selection - for negotiating

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112
Q

Quantification + Costing:

Steps involved in interim payment (IPC)/ valuation?

SOE “I carried out monthly enabling works on A4”

A

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

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113
Q

Construction Tech + Environmental Services:

High-level of strand jacking process?

A

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

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114
Q

Project Financial Control + Reporting:

What procurement routes are stage payments most associated with?

A

D+B

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115
Q

Procurement + Tendering:

Provide an overview of two-stage tendering?*

A

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
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116
Q

Construction Tech + Environmental Services:

OZ Max depth/ thickness of raft slab?

A

9m

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117
Q

Contract Practice:

What is meant by Contractor’s design portion?

A

an agreement for the contractor to design specific parts of the works

Note:
JCT speak

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118
Q

Contract Practice:

How should the retention fund money be held by the fiduciary (employer)?

A

Separate account, preferably escrow

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119
Q

Contract Practice:

Which FIDIC contract for consultants?

A

White (2017)

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120
Q

Quantification + Costing:

What is the RICS Code of Measurement Practice?

A

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
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121
Q

Design Economics + Cost Planning:

Can you name the two definitions detailed in the DM Area Definitions 2008?

A

Floor area ratio (FAR) - similar to NIA

  • usable area
  • circulatory only

Built-up area (BUA) - similar to GEA

  • all area
  • excl. MEP shaft
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122
Q

Quantification + Costing:

How to agree the draft final account on A4 enabling works - what was process?

SOE

A

[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

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123
Q

Quantification + Costing:

What does NRM3 provide guidance on?

SOE

A

WLC and maintenance works

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124
Q

Contract Practice:

What are three problems that arise when Standard Form of Contract is changed?

A

The interaction between clauses

The interaction with law (common/civil)

Time taken to draft and approve

Notes:
- Contract may become unfair/ too onerous

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125
Q

Contract Practice:

What are the 4 court structures in UAE?

A

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

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126
Q

Design Economics + Cost Planning:

What is escalation/ and escalation clauses?

A

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)

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127
Q

Construction Tech + Environmental Services:

Process for bored friction pile?

A

Bore excavate, bentonite, rebar, concrete.

Later break pile and cap

Note:
replacement (rather than displacement) pile

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128
Q

Contract Practice:

Drawbacks of increasing advance payment to say 25% to achieve lower tender sum?

A

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
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129
Q

Construction Tech + Environmental Services:

Types of displacement piling?

A

Pre-cast/ driven

Sheet

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130
Q

Construction Tech + Environmental Services:

What’s meant by the term thermal mass?

A

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
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131
Q

Contract Practice:

What is an open ended performance bond?

A

auto renewed until occurrence like TOC reached

Note:
Expiry date mentioned auto renews

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132
Q

Contract Practice:

What is PCSA and what situation may it be used for?

A

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
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133
Q

Design Economics + Cost Planning:

What is cost target?

A

..for each element (e.g. internal finishes)

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134
Q

Project Financial Control + Reporting:

A Variation has been instructed that pushes the anticipated final account above budget, what action would you take?

A

notify Client immediately of instruction (if they overlooked ARF)

Record in cost report

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135
Q

Contract Practice:

What contract type/ payment mechanism would you advise should the client not wish to take the risk on ground conditions?

A

GMP

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136
Q

Construction Tech + Environmental Services:

What are some of the predominant environmental factors related to piling works?

A

CO2 emission (volume of material, transport, energy consumption),

waste generation

soil contamination

noise and vibration

air quality

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137
Q

Contract Practice:

What’s culpable delay?

A

EOT - as no fault of MC

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138
Q

Contract Practice:

What is Sectional Completion?

A

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

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139
Q

Design Economics + Cost Planning:

Why is VAT excluded from cost plan?

A

Not qualified to provide professional guidance

Different Clients incur different VAT levels

Different projects such as schools may have VAT incentives

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140
Q

Design Economics + Cost Planning:

What are the two types of construction inflation?

A

Construction - from tender return –> building e.g. steel rates

Tender - from cost plan estimate –> tender return

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141
Q

Contract Practice:

What is an MOU?

A

Memorandum of understanding

Notes:
- Similar to contract but need not contain legally enforceable promises

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142
Q

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?

A

VAT was applicable for when the works were carried out. In this instance, none

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143
Q

Procurement + Tendering:

What is an ‘Employer’s Requirements’ doc?

A

For D+B

Want the Employer requires (like a Spec/ building functionality)

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144
Q

Construction Tech + Environmental Services:

OZ Waterproofing for raft and basement?

A

3 layer membrane (tanking)

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145
Q

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)

A

28 days

Note:
Cl. 1.6 contract agreement

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146
Q

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?

A

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
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147
Q

Contract Practice:

Benefit of using SFC unamended?
Drawback of Client bespoke?

SOE

A

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
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148
Q

Procurement + Tendering:

Provide an overview of single-stage tendering?

A

Closed

prequalification

tender,

adjudicate/PTC

recommend

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149
Q

Construction Tech + Environmental Services:

What ventilation systems do I know of?

A

natural ventilation - windows

mechanical ventilation - AC, radiators

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150
Q

Quantification + Costing:

Translate Quantum Meruit?

And what is it used for?

A

‘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.

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151
Q

Construction Tech + Environmental Services:

Benefits on reinforced concrete frame for OZ?

A

Go high as strong under compaction,

Inherent fire protection

Note:

  • can drill through for services,
  • cheap local labour
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152
Q

Construction Tech + Environmental Services:

Concrete grades e.g. C20 - what do the grades relate to?

A

Comprehensive strength

Note:
think cube test

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153
Q

Quantification + Costing:

What is double handling?

A

Moving material twice

Note:
Material to the wrong place, move it twice - e.g. gypsum used, moved to storage, then required again

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154
Q

Contract Practice:

What is the definition of Adverse climatic conditions in FIDIC?

A

Abnormal, based on recent historical data

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155
Q

Construction Tech + Environmental Services:

Considerations prior to basement construction?

A

Underground services,

adjacent properties (party wall),

water table

Note:
Strata tests (CBR, trial bore hole)
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156
Q

Quantification + Costing:

What’s an All monies clause?
MOS

A

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

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157
Q

Procurement + Tendering:

Is two-stage always lump sum?

A

No, can be cost plus, remeasure

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158
Q

Project Financial Control + Reporting:

Construction - key quantities and rates

  • Facade towers UCW
  • Rebar rate
  • Concrete
  • Shuttering
  • Steel UB
A

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

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159
Q

Construction Tech + Environmental Services:

Types of replacement piling?

A
  • Bored
  • Contiguous (cheapest, small gap between each, leaks)
  • Diaphragm wall
  • Secant (male and female, 1 reinforced, 1 not)
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160
Q

Project Financial Control + Reporting:

You advise Client with high-level cost impact assessments. Provide an example of one?

SOE

A

new toilet cubicles on latest IFC drawings - EW captured in cost report

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161
Q

Construction Tech + Environmental Services:

Pre-stressed concrete - describe post-tensioned concrete?

A

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

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162
Q

Contract Practice:

What conditions can a conditional Performance Bond be called?

A

under performance,

walk off-site,

to begin arbitration proceedings

Note:

  • 10% on demand (un-conditional)
  • typically expires <21d after Performance Certificate
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163
Q

Contract Practice:

What events are typically covered by Workmen’s Compensation cover/indemnify?

A

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
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164
Q

Design Economics + Cost Planning:

What is often excluded from a cost plan?*

A

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)
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165
Q

Design Economics + Cost Planning:

What is cost checks / checking?

A

check current estimate against previous cost targets

Note
- cost checks at all design stages

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166
Q

Quantification + Costing:

What are drawbacks of Prov Sums?

A

Cost uncertainty

Contractor not incentivised to squeeze supplier/subbie on price

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167
Q

Contract Practice:

What projects are suited to DBFO contracts?

A

a bridge with toll gate

Note:
Design, build, finance and operate

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168
Q

Contract Practice:

What is a decennial liability?

A

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.

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169
Q

Construction Tech + Environmental Services:

Why do you think steel was chosen for the link bridge?

A

Extensive glazing, large open spans,

strong under tension,

aesthetics

Notes:
assemble on floor and lift (OSM principle)

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170
Q

Design Economics + Cost Planning:

Cost plan structure- what is meant by Work breakdown structure (WBS)?

A

Costs into trade packages

Note:
- e.g. joinery costs, decoration costs

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171
Q

Procurement + Tendering:

What would you take into consideration when looking at TCQ - Quality?

A

Design control

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172
Q

Quantification + Costing:

When did the IPMS residential come into effect?

A

May 2018

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173
Q

Construction Tech + Environmental Services:

Steel grades e.g. S235 - what do the grades relate to?

A

Tensile strength

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174
Q

Contract Practice:

What is the prevail clause in the Contract?

A

When there is an ambiguity, the prevail clause mentions which document shall take priority.

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175
Q

Contract Practice:

What is the difference between collateral warranty and warranty?

A

Business - Collateral warranty is between Client and Subcontractor.

Product - warranty is for the Client for the actual product (not subcontractor)

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176
Q

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

A

Similar characteristic - but alternate supplier/quarry

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177
Q

Procurement + Tendering:

Example of a loaded rate?

A

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
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178
Q

Contract Practice:

What is Contra Proferentem?

A

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”
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179
Q

Contract Practice:

When is the Performance Security (Bond) required to be

  • issued
  • returned (expire)?
A

Issued after LOA, before Commencement Date

Returned <21d after Performance Certificate

Note:
Refer FIDIC Red 99 diagram

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180
Q

Quantification + Costing:

What’s a Contract Sum Analysis?

A

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

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181
Q

Quantification + Costing:

“A4 led team for BQ production”. What did this entail roughly?

SOE

A

Initial take-off to produce an area schedule.

Shared with team and collated their take-offs

create POMI BQ

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182
Q

Contract Practice:

What are accepted insurance exclusions as per FIDIC Red 99?

A

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

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183
Q

Contract Practice:

What does third-party/public liability insurance indemnify?

A

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
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184
Q

Construction Tech + Environmental Services:

When would you prefer raft foundation?

A

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)

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185
Q

Contract Practice:

What is an off-site materials bond?

A

secure the payment against default by the supplier

Note:

  • for materials in high demand e.g. sometimes rebar, can place order to safeguard programme
  • note the vesting certificate is just that, a certificate proving who owns the material
186
Q

Procurement + Tendering:

Name some types of the Cl. 15 insurances required by the CoSC from tenderers - as a minimum?

(FIDIC is Cl. 18)

A

Workmen’s compensation (AED 5m)

employers liability

Contractor’s Plant and machinery

Notes:

  • PI
  • Public Liability (AED 10m)
  • Motor Vehicle Third Party and Passenger Liability (AED 3.68m)
187
Q

Contract Practice:

What professional services contract is your firm engaged on?

A

Client bespoke

188
Q

Construction Tech + Environmental Services:

How is friction piling different end-bearing?

SOE

A

Friction, rather than transferring load to end-bearing

Note:
No solid strata in the desert

189
Q

Project Financial Control + Reporting:

Provide an example task of what a Contractor may submit reimbursement for on Dayworks?

A

If cannot be fairly valued by measurement,

e.g. fix 1 additional door, out-of-sequence (during DLP)

190
Q

Procurement + Tendering:

You mention TA can reveal rate loading especially for rate only items. What do you do in this situation, how to advise Client?

SOE

A

Identify - using benchmarking

Manage - using provisional quantities, or omit and agree as variation post-award

Notes:

  • identify along the line in side-by-side and also benchmark key rates such as concrete and rebar
  • MC may load the early works to be paid more up front (danger for Client if MC defaults)
  • Advise if front-loading and value of works at start of project, may be issue later
191
Q

Contract Practice:

What happens if MC recommendation is not acceptable to PM/Employer?

A

Never happened

MC and Client both under same Group

Note:
Could explore nomination perhaps

192
Q

Project Financial Control + Reporting:

What’s an advance payment?

A

Down payment by employer to MC to mobilise and procure long lead items

Note:

  • x% lump sum of Contract Sum - to mobilise and place orders
  • A risk for the Employer (but can be bonded to protect)
193
Q

Contract Practice:

Some examples of breach of contract by Contractor?

A

Abandonment

major defective work

Major delay (subject to):

  • no intention to complete
  • time being of essence
194
Q

Design Economics + Cost Planning:

Difference between cost planning and cost control?

A

cost planning is Pre-

cost control is whole process (pre- and post-contract)

Notes:

  • pre (design within budget)
  • post (build within budget)
195
Q

Procurement + Tendering:

Name some P+T guidance documents for best practice?

A

RICS Tendering Strategies 2014.

FIDIC Procurement Procedures Guide 2011

Note:

  • RICS E-tendering 2010
  • JCT Tendering Practice Note 2017
196
Q

Procurement + Tendering:

How to handle a late tender return?

A

Do not open (tender amount should be irrelevant)

Grounds for exclusion in interest of fairness

Advise Client on how they want to proceed - client may overrule/accept tender

197
Q

Construction Tech + Environmental Services:

3 different basement types you are aware of?

A

Box and cellular raft

  • Internal structural walls (divides basement into cells)
  • Raft slab foundation

Monolithic
- retaining wall and raft slab foundation (OZ)

Piled
- Columns transferring loads to pile caps

198
Q

Quantification + Costing:

What would you assess for monthly interim payment on a Cost Plus contract type?

A

Contractors actual costs + mark-up

199
Q

Quantification + Costing:

What is the internal dominant face?

A

Internal finished surface

comprising 50%+ of surface area

200
Q

Procurement + Tendering:

For D+B - If the design team is novated, what should the client put in place?

A

A collateral warranty to design team

Note:
Creates a contractual relationship between parties where there would otherwise not have been any

201
Q

Design Economics + Cost Planning:

What is the OGC Gateway?

A

to ensure business case for building a public building (UK)

Note:

  • Gateway review 1-5
  • Office of Government Commerce (OGC)
202
Q

Contract Practice:

What is the major drawback of a cost plus/ reimbursable contract?

A

MC not incentivised to keep costs lean

203
Q

Contract Practice:

Can a subbie claim monies owed to him by the Contractor, from the Employer?

A

No

Note:

  • Unless novated his right and obligations to the Employer
  • Article 891 of Civil code expressly precludes this
204
Q

Contract Practice:

Who should prepare an LOI?

A

Construction lawyer

205
Q

Contract Practice:

What actions can be taken by Employer to mitigate project delay/ accelerate?

A

Client can instruct Acceleration (will incur cost)

Note:
MC can increase labour count, working hours within legal limits

206
Q

Contract Practice:

Your employer approaches and mentions to you that he cannot make payments to the Contractor and seeks your advice. What do you advise?

A

Inform Contractor - MC may be have cash flow to finance for few months

Partial completion/not completing full portion of PS works - e.g. no offices at the top, finish later

MC may be entitled to receive financing charges for days of delay 3% higher than central bank rate - FIDIC Red 99 Scl. 14.8 delayed payment

Note:
Slippery slope

207
Q

Contract Practice:

What is the purpose of Contractors All Risk insurance - what does it cover?

A

covers all risks normally associated with a construction project.

gaps between policies

115% of project value

public liability

Note:

  • Taken out by the Employer, or jointly - taken out by contractor on OZ
  • Cover usually for construction period but can be extended to included DLP
208
Q

Contract Practice:

You mention at “uni you learnt how UK law impacts UK construction contracts.” Example of this?

SOE

A

banning pay-when-paid terms

right to period payment mechanisms such as IPC

Note:
Construction Act 1996

209
Q

Contract Practice:

What is meant by the term surety?

A

Guarantee like a performance bond (10% of Contract Sum)

A surety (sometimes known as bondsman or guarantor), takes responsibility for another party’s performance

210
Q

Design Economics + Cost Planning:

What is the elemental method?

A

In early stages (pre-cost plan)

Budget based on major elements

Note:

  • Uses element unit quantity (EUQ) (area of ext wall)
  • Used element unit rate (EUR) (complete subbie rate)
211
Q

Project Financial Control + Reporting:

What is meant by ‘outturn cost’?

A

actual construction cost

Note:

  • is confirmed at the end of the project
  • however, the rolling final account in the cost report forecasts the outturn cost
212
Q

Construction Tech + Environmental Services:

What are the 3 types of excavation?

A

Complete

Open

Perimeter trench

Notes:
Complete
- Full excavation with side supports/ whaler beams

Open

  • Excavate with safe side angle, eliminates need for temp support work
  • Extra cost of excavation much wider for basement wall, and backfilling

Perimeter trench

  • Dug wide enough to construct basement walls, requires support
  • Inside of basement then excavated
213
Q

Project Financial Control + Reporting:

two main types of cash flow forecast?

A

company/organisational (i.e. contractor or consultant)

construction contract or project

214
Q

Contract Practice:

What’s Frustration of Contract?

A

both parties can end the contract

Contractual relief when environment radically changes, for fairness (e.g. war breaks out)

215
Q

Design Economics + Cost Planning:

What does the base cost estimate compromise of?

A
works cost estimate
MC prelims
MC OH+P
project/design team fees estimate 
other development/project costs estimate.

excludes risk and inflation

Note:

  • ‘The base cost estimate is the total of the building works estimate, main contractor’s preliminaries estimate and main contractor’s overheads and profit estimate, project/design team fee estimate and the other development/project costs estimate. The base cost estimate is to contain no allowances for risk or inflation.’
  • Base date is the date of Cost Analysis or BM costs
216
Q

Design Economics + Cost Planning:

Should you just allow a standard 10% Contingency on all projects?

A

No, assess each project individually, and price the project risk register

No, if building copy-paste of existing and cost known then low contingency

217
Q

Contract Practice:

List some heads of claim (heads of loss)?

A

Actual costs

Prolongation (time-related prelims) costs - includes idle labour/ plant

Disruption

Notes:

  • Loss of profit/ opportunity
  • Cost increases during suspension
  • Finance charges incurred by MC
  • Contemporaneous records - time sheets, photos, diaries
218
Q

Design Economics + Cost Planning:

Does the building works estimate include facilitating works, prelims, MCOH+P, design, inflation, risks?

A

No

Note:
NRM1 group 1 substructure - 8 external works

219
Q

Design Economics + Cost Planning:

What are the different cost types for a cost estimating?

A

Functional unit rates

Floor Area (GIA) rates

Elemental unit rates (EUR)

measured quant rates (NRM2/ POMI)

220
Q

Design Economics + Cost Planning:

Name some design efficiency ratios?*

SOE

A

Wall: floor - cheaper with lower walls

Net: gross floor area (net internal area)

Facade: concrete/ glass/ aluminium

Storey heights

Note:

  • Wall: floor - (External wall area 40m2, divided by GIA 100m2) = 0.4 W:F
  • Net: gross - Can determine the project validity, whether income meet Client requirement
221
Q

Construction Tech + Environmental Services:

What’s scabbling?

A

Can level bumpy floor slabs

Piston driven carbide tipped heads which impact the surface at a rapid rate pulverizing concrete or brittle coatings

Note:
Remove slightly bonded coatings or where coatings are impossible to remove by shot blasting process

222
Q

Procurement + Tendering:

What’s a nominated subcontractor?

A

Imposed on the Contractor by the Client.

Note:

  • Who is stated in the Contract as being a nominated SC
  • Depending on contract terms, the Client can take responsibility for performance and be involved with payment issues
223
Q

Contract Practice:

What is a Parent company guarantee (PCG)?

A

Performance and financial guarantee (of subsidiary)

Provided by MC’s parent or holding company

Notes:

  • Expiry date usually applied
  • Ideal for new subsidiary firms
  • Investigate the parent company as may be unstable
  • Same principles as default bonds
224
Q

Procurement + Tendering:

benefits of negotiated tender?

A

Reuse high performing subbies (high quality)

fast tender,

for specialist project

Note:

  • closed
  • lower soft costs to administer tender
225
Q

Contract Practice:

Explain Battle of Forms and last shot principle?

A

e.g. supplier and subcontractor both try to use their contract terms

last shot is the terms of the offer/counter-offer that is accepted

226
Q

Contract Practice:

What’s Law of Tort?

A

Compensation for losses suffered from another parties actions.

Notes:

  • Regulates conduct of individuals
  • It deals with civil wrongs
227
Q

Project Financial Control + Reporting:

What contingency was allowed on OZ?

A

10%

228
Q

Design Economics + Cost Planning:

What is IPMS?

A

International Property Measurement Standard

Note:

  • the first global IPM standard
  • IPMS Coalition
  • free download globally
  • A standardised and globally applicable method for measuring property.
  • IPMS for office, for resi, for induatrial, etc
229
Q

Contract Practice:

What’s acceleration?

A

Completion in a shorter time frame, or recovery act by MC if in delay

Agreement between Client and MC, likely to be reimbursed on quantum meruit basis

Notes:
Options include
- re-sequencing works
- Change working methods e.g. using a dehumidifier to dry out the works faster
- Increasing incentives – e.g. bonuses
- Increasing the resources employed
- Increasing working time – working longer hours (productivity impact)

230
Q

Contract Practice:

What’s compensable delay?

A

Entitlement to EOT including prolongation (time-related prelim) costs

Note:
includes relief from LD’s

231
Q

Contract Practice:

How is retention held and released to Tower B subcontractor?

A

10% held on IPC’s

  1. 5% released on TOC
  2. 5% released on as-built and draft FA

5% released on DLP (Final Certificate)

232
Q

Design Economics + Cost Planning:

Define a cost plan?

A

Monitor design, to stay in budget, as design develops

Estimates in the cost plan reported to Client at completion of key design stage

Note:
Used going forward say from concept to align with the Clients budget

233
Q

Construction Tech + Environmental Services:

Benefits of modular construction?
vs. traditional

A

High quality control in factory

Less H+S risks

Work off- and on-site for faster programme

Note:

  • Consider access e.g. lifting pods into position
  • weather delays and damage
234
Q

Procurement + Tendering:

What is meant by design intent?

SOE

A

specifies the performance requirements

Note:
MC has some things to design e.g. garbage chute, façade secondary steel

235
Q

Quantification + Costing:

What’s a Schedule of Rates?

A

Rate agreement for unknown quantities

e.g. for frameworks/serial works such the IFG Measured Term Contract,

Note:

  • Used for obtaining competitive rates (when quantities unknown)
  • Daywork labour rates
236
Q

Design Economics + Cost Planning:

What does the term residual or retained risk mean?

A

The risks retained by the Employer

237
Q

Construction Tech + Environmental Services:

OZ is “multi-faceted asset provides exposure to residential, shell and core office, hotel, retail and F+B detail.” What sorts of F+B on project?

SOE

A

Fit-out

Kitchen equipment

238
Q

Construction Tech + Environmental Services:

What level of fire protection is required for structural steel? According to local requirements?

A

2hr fire protection

Note:
link is 3hr

239
Q

Project Financial Control + Reporting:

Typical contents of a cost report?*

SOE “I produce the monthly CR”

A

1 Dashboard (contract sum, forecasted total, key movements, key issues, summaries, cost loaded programme)

2 Change Management status (Remeasure, Agreed + Anticipated VO, EW)

3 Prov Sums - adjusted as expended

4 Soft Cost

5 All payments (IPC, advance payments)

6 Cash flow

Note:
also Claims (loss and expense values)
240
Q

Procurement + Tendering:

Steps involved in tender opening?

SOE

A

Open with 2 independent parties

noting inclusion of commercial, technical, soft copies, sign/witness and note the FoT amount, and alternate bids

Note:
Check they were received in required time - tender should be stamped

241
Q

Project Financial Control + Reporting:

What EOT costs to include in CR?

A

Daily prelims costs for MC and effected Subcontractor
x
anticipated/awarded delay in days (as advised by the PM)

242
Q

Contract Practice:

What should be contained within a building contract?
what docs make it binding

A

An offer and acceptance.

Rights and obligations of each party.

Payment terms.

Notes:

  • Confirmation of price
  • Intention to enter into a contract.
  • Retrospective effect on LOI.
  • Clear allocation of risks
  • Specifications and scope of works
  • Provisions for extension of time.
  • Procedure for dispute resolution.
  • Provisions for termination
243
Q

Design Economics + Cost Planning:

Aside from the design and construction of a project - what other factors can influence cost

SOE

A

location and jurisdiction

TPI - contractor availability/ labour supply and demand, material escalation

244
Q

Project Financial Control + Reporting:

What’s the purpose of a cash flow/ what is it used for?*

SOE

A

Shows net cash position

Inform Client/stakeholders when payments are due

To obtains project financing

Note:
Monitoring income and expenditure can illustrate
- Project is ahead/ behind the programme
- Contractors are experiencing financial difficulty

245
Q

Contract Practice:

What’s are boilerplate clauses?

A

Standard/ general contractual clauses

Such as assignment, force majeure, arbitration clause

246
Q

Contract Practice:

What are the benefits of an EOT to the Contractor, and to the employer?

A

Contractor relieved of LD liability

Employer - establishes new contract completion date to prevent time ‘at large’

247
Q

Design Economics + Cost Planning:

What are the technical differences between ANSI and BS for metal doors, which contributed to 50% cost difference?

SOE

A

Ironmongery more durable (tested on more opening cycles)

Greater core resistance

248
Q

Construction Tech + Environmental Services:

OZ Concrete wall thickness?

A

1.2m at bottom, thinner up the tower

249
Q

Design Economics + Cost Planning:

You mention your cost plans become more robust as design develops, with a reduction in assumptions, exclusion and design contingency. - explain this statement?

SOE

A

Reduction as design develops, more info e.g. Spec is detailed

Note:
e.g. in early stages - incomplete design so reasonable assumption based on similar project e.g. medium quality tiles for medium quality bathroom

250
Q

Contract Practice:

Define reasonable skill and care?

A

a duty to act with reasonable skill and care

Note:

  • a lesser obligation than fit for purpose
  • Supply of Goods and Services Act 1982
251
Q

Contract Practice:

Name some of the FIDIC series (e.g. years)?

A

87, 99, 2017

252
Q

Design Economics + Cost Planning:

What is the Building Cost Index (BCI)?

A

Cost to Contractor

Labour and material

253
Q

Design Economics + Cost Planning:

What is the Construction Price Inflation (CPI)?

A

Inflation from the TR date to mid-point of construction

Note:
Also known as
- construction inflation
- tender inflation

254
Q

Contract Practice:

SOE “I advised Client to request MC to issue LOA..
[quicker than Subcontract]
I advised the Client however, that proceeding on this basis may later present coordination issues later on” - why give the advice then

A

LOA awarded faster Subcontract

Note:
Subcontract to follow 6-8 weeks

255
Q

Project Financial Control + Reporting:

Client wants high cash flow predictability, at expense of low accuracy of value of works done to date - what type of period payment mechanism to recommend?

A

Stage - agreed time

Milestone - agreed element

Note:
Reasonable predictability and accuracy of work done (against activity schedule)

256
Q

Contract Practice:

What does contractor’s plant and machinery insurance indemnify the MC/SC for?

A

indemnifies against sudden, accidental and unforeseen loss or damage

excluding mechanical/electrical breakdown.

Notes:

  • small tools
  • heavy plant
  • tower cranes
257
Q

Construction Tech + Environmental Services:

Main reason for OZ not being steel frame?

A

Steel will not reach the heights required 300m+

258
Q

Quantification + Costing:

Talk me through how you would measure concrete piles?

A

Excavation m3

Rebar tonnage

Concrete m3

Cut pile tops nr

Transfer ring beam m

Notes:
Plant in prelims

259
Q

Contract Practice:

Difference between Letter of Award and Letter of Intent?

A

LOA is signed (contains CoC, spec, dwgs)

LOI could be standalone letter (unsigned) - often detailing scope of works to be done

Note:

  • LOA is binding, and signed
  • LOI can be both binding and non-binding, and unsigned
260
Q

Procurement + Tendering:

What procurement routes available?*

A

Traditional

D+B

Management Contracting

Construction Management

Note:

  • Serial/ Measured Term - typically 3-5 years
  • Turn key/ EPC
  • Partnering
  • PFI/ PPP
261
Q

Quantification + Costing:

Prerequisite for making an Advance payment?*

SOE “I advised Client 30% AP for kitchen equipment”

A

Contract in place (AP% stated in Appendix)

Performance Bond in place

Adv Payment Bond (if required)

Recovery agreement (either IPC or milestone)

262
Q

Project Financial Control + Reporting:

How to a handle/manage Contractor claims?

A

We calculate prelims of MC and effected SC’s - based on days advised by PM

Noted in cost report the claim value - value not carried through to forecasted total (outturn cost)

Notes:

  • First notified in writing to PM
  • Handled at director level (dispute committee)
  • PM, Contractor and Client each has own claims teams doing quantum and delay. We also have in-house claims team.
263
Q

Design Economics + Cost Planning:

What is your most reliable/preferred cost data for estimating?

SOE

A

Benchmarking - recent in-house from similar projects

Post-contract Final Account better than pre-contract estimate

264
Q

Procurement + Tendering:

What is prime contracting procurement?

A

single point of contact (prime contract) for a supply chain to deliver one or more projects

Note:
Think UK prison projects

265
Q

Construction Tech + Environmental Services:

What are pad foundations used for?

A

At column bases

For lighter structures, wide spanning such as warehouses

266
Q

Procurement + Tendering:

benefits of e-tendering?

A

Environmental

Assists tender analysis

Collate TQ’s and SC responses

same copy for PM, QS, MC (e.g. tenderer may submit 3 non-identical bids)

267
Q

Contract Practice:

What is the purpose of an Entire Agreement clause?

A

parties disclaim any prior communications that could otherwise be considered part of the final, executed agreement

268
Q

Construction Tech + Environmental Services:

What’s a Composite floor slab?

A

Profiled steel decking (perm formwork)

in-situ reinforced concrete

Note:

  • Principally used with steel frames, but can be supported on brick, masonry and concrete
  • Slabs and beams acting compositely together, steel deck is shear bond with concrete
269
Q

Quantification + Costing:

Advantage of SMM?

SOE

A

Rules

familiarity, consistency

tender comparison/analysis

270
Q

Quantification + Costing:

What does CESMM stand for?

SOE

A

Civil Engineering Standard Method of Measurement

271
Q

Project Financial Control + Reporting:

How do you control costs pre-contract?

A

Estimates at CD, DD, SD, DD

Design team meetings

Advise client of cost impacts.

272
Q

Contract Practice:

What’s Prolongation?*

A

‘extension of the duration of something’

Actual time related (of prelims costs) - task related is paid in BQ

Note:
- Caused by EOT (delays such as possession of site, late instructions)

273
Q

Procurement + Tendering:

Does the Contractor have a right to object to nominated subbie?

A

yes, if he has reasonable grounds for so doing

e.g. recent litigation
or poor performance on another project

274
Q

Quantification + Costing:

Risk to Client for overpaying Contractor in IPC?

A

MC default, having to pay twice

Strain on cash flow

275
Q

Contract Practice:

What’s the advantage of using a Standard Form Contracts?

SOE

A

Ready to go, no drafting,

tried and tested with case law, fairness, has provisions

Suitable for a range of project types

Notes:

  • Doesn’t scare off Contractor’s
  • Can choose language, jurisdiction
  • Binding agreement
  • Details time scales, labour, material and Contract Docs (spec/ drawings)
  • Suites of - FIDIC, JCT, NEC, PPC2000
276
Q

Contract Practice:

What is a Retention Bond?
similar to DLP bond

A

Helps Contractor cash flow by not withholding the 5% retention

Value likely = 5% retention

Expiry date = end of DLP

Notes:
- If Contractor did not perform obligations of retention, then bond would be called by Employer
- Contractor doesn’t have to chase up retention
Cost of bond typically between 1-10% of bond value, effected by MC reputation

277
Q

Contract Practice:

What’s a Tender/bid bond?

A

To protect Employer from tender withdraw

Note:

  • value often 2% of tender sum (as per TB matrix in ITT)
  • Bonds - bondsman to make a payment in the event of non-performance
278
Q

Project Financial Control + Reporting:

What is the purpose of a cost report?*

SOE “I am aware.. cost report provides..”
SOE “I produce the monthly CR”

A

Regularly monitor and manage known cost throughout the project

Rolling final account - to inform Client of forecasted total project cost (incl. budget concern)

279
Q

Design Economics + Cost Planning:

What is the Tender Price Index (TPI)?

A

Cost to Client

Tender Returns

280
Q

Construction Tech + Environmental Services:

“Understand how project design develops with increase level of detail required at each design stage”. What info would you expect to price at DD?

SOE

A

Enough to prepare a priced BQ (PTE) on

Robust/frozen structural design

DD Specs, dwgs, door schedules

Note:
Detailed measurement of finishes (for schedules)

281
Q

Construction Tech + Environmental Services:

Definition of cantilever (re bridge)

A

Not supported at one end

282
Q

Construction Tech + Environmental Services:

Concrete slabs 2 types?

A

Post-tension

Precast

283
Q

Contract Practice:

What’s force majeure?

A

Act of God, beyond the control of both parties

Unforeseeable. A right to not perform contractual obligations

Note:

  • FIDIC awards time and costs. OZ does not mention time and cost
  • Right to walk away from contract if it is Frustrated
284
Q

Procurement + Tendering:

What’s does RFP stand for, and what docs may be included?

A

Request for proposals (from consultants)

Nature of project,
Programme
Contractual terms

Note:
- May include the brief, selection criteria, PI requirements, budget, management structure

285
Q

Construction Tech + Environmental Services:

What are the typical components of site investigations?

A

Party wall (adjacent sites, hedges)

Existing trees

location of services – gas, telephone, electricity, water, drains

Ground conditions - soil, water

286
Q

Design Economics + Cost Planning:

How to cost MEP in your cost plan?

A

Ideally MEP QS to undertake

Order of Cost Estimate stage - if no MEP QS available, use benchmark rates for floor areas

287
Q

Procurement + Tendering:

drawbacks of negotiated tender?

A

Lack of competition may = high price,

not for public project unless an emergency repair project

288
Q

Contract Practice:

What’s a time bar?

A

e.g. 28 day period in which to notify of becoming aware, or reasonably expected to become aware, for MC to not be time bared from his right to redress

289
Q

Project Financial Control + Reporting:

What are some of the contents I would have in my ARF variation?

A

Change narrative

Summary

Costs - BQ rates, star rates, supplier quote

Measure - take-off

Mark-ups

Notes:

  • Cover
  • Signed VO attached
  • QAQC comp check
290
Q

Contract Practice:

How is retention held and released to Main Contractor?

A

5% held on IPC’s

  1. 5% released on TOC
  2. 5% released on Final Payment Certificate (post-DLP)
291
Q

Quantification + Costing:

What does the term ‘fixed charge’ mean?

A

Charges may be fixed, time-related, or a combination of both

for the work (independent of duration)

Note:

  • although temp works, think scaffolding
  • NRM2 definition
292
Q

Contract Practice:

What’s an unconditional/ on-demand bond?

A

Do not have to prove,

but comply with conditions of demand

Notes:

  • Court tends to regard as equivalent of a promissory note or irrevocable letter of credit
  • Common in UAE
293
Q

Contract Practice:

You advised the Employer to request the Contractor to issue an LOA to the Subcontractor, in lieu of Subcontract Agreement. Why did you advise this/is it okay to proceed with LOA only?

(LOA = Letter of Award)

A

Contractor is happy to engage and execute works on detailed LOA (LOA is binding)

Faster to complete LOA than Subcontract Agreement (however, handled at high management level)

FIDIC priority of documents (Cl. 1.5)
- (a) the Subcontract Agreement “(if any)”

Notes:
LOA includes
- Letter, VE, PTC schedules
- Letter of tender
- CoSC
- Spec
- Dwgs
- BQ
- Any other docs (MOA)
294
Q

Construction Tech + Environmental Services:

Name two common types of formwork for repetition constructing of tower cores and stairwells?

A

Slip form - Continuous movement

Jump form - jumping movement

Notes:
materials used include ply, steel pan, fibreglass moulds, profiled decking. Includes supporting props and accessories

295
Q

Contract Practice:

Limitations and down sides of using bonds?

A

Bonds tie up cash/credit limits

bond fees (paid to bondsman/insurance co)

if conditional - required to meet conditions of bond

Note:
If need to call bond, bondsman must have sufficient assets to honour

In event of MC insolvency, Client not always able to call on bond, as not a breach of contract

296
Q

Contract Practice:

What is the Base Date according to FIDIC Red 99?

A

the date 28 days prior to latest date for tender submission

Note:
For my note tender float date (captures law applicable at that time)

297
Q

Contract Practice:

Name some items excluded from CAR insurance?

A

Decennial Liability

repair or replacement of property which is defective in design, specification, materials or workmanship (PII)

Note:
Under the Civil Code, designers and contractors are jointly liable for any total or partial collapse of a building and for any defect affecting stability or safety of a structure for 10 years

298
Q

Construction Tech + Environmental Services:

You advised that ceramic is faster to install than marble in BOH circulatory corridors. How you know its faster?

SOE

A

From my experience installing

Lighter, workability

299
Q

Procurement + Tendering:

You mention in SOE that tenderers submit three years P+L accounts in prequal, what else is in prequal?

A

Organisational info

Past projects delivered

Trade license

Note:

  • Latest internal management accounts
  • H+S record
300
Q

Procurement + Tendering:

What is meant by the tendering term ‘MEAT’

A

Most economically advantageous tender

Note:
Not just lowest price

301
Q

Contract Practice:

What contract would I advise for a new Client?

A

FIDIC Red 2017, unamended

302
Q

Procurement + Tendering:

What’s Strengths of D+B procurement?

A

Cost certainty

and time

single point responsibility

Note:

  • overlap design with construction
  • Not quality according to TC triangle
303
Q

Construction Tech + Environmental Services:

Foundation type used on OZ?

SOE

A

9m deep raft slab

on friction piles (1.5m wide and 40m deep)

304
Q

Quantification + Costing:

What does “ICMS aim to implement”?

SOE

A

International benchmarking, measure and costing.

Note:
Particularly useful for aviation industry where projects are few and far between and the costs need to be rebased overseas with ease

305
Q

Design Economics + Cost Planning:

What is escalation?
not the clause

A

Increase or decreases in the costs of labour or materials due to inflation

306
Q

Design Economics + Cost Planning:

Who is responsible for VE?

A

Often QS, but designers should design to budget

307
Q

Quantification + Costing:

Advise on POMI 1979 - acronym, usage?

A

Principles of Measurement International

More trade based than NRM

Widely used in the UAE

308
Q

Contract Practice:

Name some SFC’s?

SOE

A

FIDIC

JCT

NEC4

Note:
PPC2000

309
Q

Construction Tech + Environmental Services:

What’s power floating?

A

Circular grind for a flatter surface

310
Q

Quantification + Costing:

How to handle disagreements with Contractor’s QS?

A

Use negotiation principles (competitive, principles based)

Discuss with colleagues, then if not Client for resolutions

Consultants Valuation stands for purpose of payment

Contractor can escalate as per the ADR terms stipulated in Contract, if cannot negotiate

311
Q

Design Economics + Cost Planning:

You mention you converted POMI BQ’s (to NRM format to populate residential project profiles) - how did I go about splitting this?

SOE

A

Mostly intuitive and often straight fits

However, some elements require splits

312
Q

Construction Tech + Environmental Services:

What’s top down construction?

A

Used in London for adding basement levels

Building above can be constructed

GF slab cast with access hatch, and then excavate B1 and cast slab, repeated

Note:
Piles are used as foundations and act as retaining walls

313
Q

Project Financial Control + Reporting:

What info is required to prepare a cash flow forecast?*

A

Contract Sum

Programme (inclusive of any EOT)

Period payment mechanism (IPC, milestone, stage, activity)

Contract/ payment terms (retention, advance payment + recovery)

Notes:
- if programme is not cost loaded, then QS to attribute works activity costs to programme (to show when cost will be incurred)

314
Q

Contract Practice:

What should you check the collateral warranty for?

A

Make sure the company has assets, not just a company setup for this project

315
Q

Contract Practice:

What is the definition of a contract?

A

Legally binding agreement (between two parties)

To provide goods and services

Within a specified time

316
Q

Procurement + Tendering:

Aside from knowing the likely cost in advance of a tender, what else can a PTE be used for?

SOE (Q+C)

A

Benchmarking side-by-side tender analysis

317
Q

Project Financial Control + Reporting:

What is cost control?

A

Whole process start to finish (pre and post)

Note:
Same as cost management

318
Q

Contract Practice:

What SFC would you use for a Management Contracting procurement?

A

JCT Management Building contract

Note:
NEC Option F

319
Q

Construction Tech + Environmental Services:

Who takes ownership of piling cost if piles required deeper?

A

Depends on procurement and contract type.

A4 is Client - as measured Term (remeasurable) contract

FIDIC Silver would be MC all risks

320
Q

Quantification + Costing:

What is a Prime Cost Sum?

SOE

A

PC Sum is an allowance for the material only.

Tenderer to price prelims, supply, installation, OH+P

Note:

  • no Spec for material - qty and nature known
  • price agreed on invoices
321
Q

Project Financial Control + Reporting:

What is a definition of an early warning on your project?

A

EW e.g. item raised in commercial meeting

Ahead of Contractors ARF (VO)

Likely cost captured in outturn cost, noting worst-case scenario

322
Q

Quantification + Costing:

NRM volumes?

A

1 Cost planning

2 BQ production (tendering)

3 Maintenance/ WLC

323
Q

Contract Practice:

What SFC would you use for a Construction Management procurement?

A

JCT Construction management agreement (for CM)

JCT construction management trade contract (for subbies)

324
Q

Project Financial Control + Reporting:

What is a Rolling Final Account?*

A

The project total project cost (in CR) - outturn cost

Includes

  • contract sum
  • variation
  • PS adjustments
  • EOT costs
325
Q

Contract Practice:

What’s a conditional/ default bond?

A

Must prove a breach of contract and consequential loss

A final guarantee only, not performance related

Note:

  • Common in UK
  • unlike on-demand, there needs to a reason
326
Q

Procurement + Tendering:

What is a post tender estimate?
not pre-

A

Estimate after receiving tender returns,

to advise Employer on required budget

327
Q

Contract Practice:

On OZ, how long has MC to notify, e.g. for prolongation claim or anything else?

A

Notify of becoming aware of within 28 days

Interim particulars in 28 days,
detailed particulars to follow in e.g. 42 days

328
Q

Project Financial Control + Reporting:

You have received a Cash flow forecast from the Contractor. What are the checks you would make before forwarding to the Employer?*

A

costs distributed according to programme

front-end loading - package start dates are correct/ sequence of works correct

Period payment mechanism (IPC, milestone, stage, activity)

adjusted for payment terms according to CoC (advance payment/ payment terms/ retention)

Notes:

  • awarded EOT’s included
  • against cash flow forecast prepared during pre-contract
329
Q

Quantification + Costing:

Advantage of using BQ’s?

A

tenderer familiarity (navigation)

tender return analysis

BM

administering payment

330
Q

Contract Practice:

How is Advanced payment recovered?

A

recovered through IPC

Diminishing value

331
Q

Construction Tech + Environmental Services:

Describe the process for installing a continuous flight auger and bored pile?

A

Augur out soil,

bentonite,

rebar cage

concrete (displaces bentonite)

Note:
this says concrete first? https://www.youtube.com/watch?v=aAZoTG0EY3U

332
Q

Construction Tech + Environmental Services:

Ground investigation surveys on site?

A

Trial hole boring

CBR (California Bearing Ratios)

333
Q

Design Economics + Cost Planning:

Typical contents of a VE/VM report?
/ What’s the VE/VM process?

A

Required outcome

Assessment of alternatives

Recommendation

Note:
1 Introduction and context
2 Required outcomes and value criteria
3 Alternatives considered
4 Value assessments of alternatives
5 Conclusions and recommendations
Appendices
334
Q

Contract Practice:

What contract type/ payment mechanism would you most expect for civil engineering works?

A

Remeasurable

Client qty risk

335
Q

Contract Practice:

What is meant by the term effective contract price?

A

Contract price excluding

  • PS
  • Dayworks allowance (if any)

FIDIC 87

336
Q

Procurement + Tendering:

What is a bona fide tender?

A

genuine offer

in good faith

a form/certificate of a Bona Fide tender/offer

337
Q

Design Economics + Cost Planning:

What has changed in RIBA 2020?

A

more detailed stage descriptions - improved guidance on planning process, procurement and info requirements at each stage

new sustainable project strategy - focus on sustainable outcomes from inception

338
Q

Contract Practice:

What’s assignment?
re assignment and novation

A

Benefits only (of a contract) can be transferred by assignment

obligations cannot

Note:
if parties wish to transfer both benefits and obligations this must be done by a novation agreement.

339
Q

Procurement + Tendering:

What is PPP procurement?

A

public private partnership

a cooperative arrangement between two or more public and private sectors, typically of a long-term nature

to complete a project and/or to provide services to the population

340
Q

Contract Practice:

What is pay if paid terms?

A

MC only obliged to pay subbie, if paid by Client

Condition precedent

341
Q

Quantification + Costing:

What does the contractor’s written discharge confirm?

A

the Final Account represents full and final settlement

Note:
FIDIC Red Sub-Cl. 14.12 discharge

342
Q

Contract Practice:

Key differences between OZ and FIDIC Red 99?*

A

Adverse weather

  • FIDIC is EOT for adverse climatic conditions.
  • OZ rainfall excluded (must be unforeseeable and Contractor unable to make provision for)

Termination

  • OZ is for convenience with no valid reason required.
  • FIDIC requires reasoning such as abandonment, bribery

Force Majeure - Duty to minimise delay

  • FIDIC is equal responsibility
  • OZ is Contractor responsibility
343
Q

Quantification + Costing:

IPC Interim payment certificate/valuations - typical contents?*

SOE “I carried out monthly enabling works on A4”

A

1 BQ Prelims (demobilisation, mob, time, work) progress
2 BQ Measured work progress
3 Variations
4 Materials on + off site
5 Deductions (Client, PM withholding monies), NCR
6 Payment terms - retention, AP recovery
7 less previously paid

Notes:

  • as set out in contract
  • add Prelims, measured works, MOS
  • ddt Advance payment recovery, retention, ddts, previously paid
344
Q

Construction Tech + Environmental Services:

What is a transfer slab and why are they used?

A

Reinforced concrete slab.

Transfer floor loads to the support post and pillars.

345
Q

Construction Tech + Environmental Services:

What’s green concrete?

A

Made from eco-friendly concrete waste

346
Q

Procurement + Tendering:

Difference between Construction Management and Management Contracting?

A

MC - Client direct contract with MC (Main Contractor)

CM - CM advisory role. Client direct contract with subbies

347
Q

Construction Tech + Environmental Services:

Can you briefly explain the process of installing the Cantilevered bridge in your project?

A

Towers off-plumb

Link bridge strand jacked 100m into position

Transfer members to connect to towers

Towers pulled plumb

348
Q

Contract Practice:

What are the risks of proceeding on a LOI?

A

Often brief letter - lacks contractual detail

Should only be used whilst terms are being agreed/ LOA being formed.

Often big cause of disputes

349
Q

Contract Practice:

What is meant by the term lien? For example a subcontractor’s JCB has a lien - what does that mean?

(construction liens, property liens, materialman’s liens, supplier’s liens)

A

A security/ legal right held against the asset used as collateral to satisfy a debt

Note:
e.g. if repair works were not paid to the mechanic

350
Q

Design Economics + Cost Planning:

When is VE/VM most effective?

A

Early on

Most scope for change

351
Q

Contract Practice:

Examples of any differences between CoC and CoSC on your project?

A

Retention - 5% and 10%

PII - USD $10m vs. sometimes proportionate e.g. package AED 5m

352
Q

Project Financial Control + Reporting:

You advise Client with high-level cost impact assessments. Provide an example of one?

SOE

A

ARF carpet to stone in resi corridor

or, paint to marble in GR3

353
Q

Project Financial Control + Reporting:

What sort of risks did we price on OZ, and how are these priced?

A

Pre-contract would of been NRM1 contingency allowance % for

  • Design development
  • Construction
  • Employer change,
  • Employer other

Post-contract only for EOT prolongation (time-related prelim) costs of effect Subcontractors

Note:
Pricing risk register not part of scope of service

354
Q

Construction Tech + Environmental Services:

When you advised Client to consider ceramic as opposed to marble, did you discuss this with the Engineer or Architect? Or were you just advising on the cost aspects?

SOE

A

Just gave general cost advice.

If option was viable to the Client, then I would approach the Architect

355
Q

Procurement + Tendering:

When dealing with errors in tender returns. How would you treat Tenders containing arithmetical errors?

A

As detailed in the Instructions to Tender

  • Correction is cost increase = FOT
  • Correction is cost decrease = Adjusted (Emp saving)

I record these in arithmetical schedule and PTC schedule

2 options

  • Alternative 1 - Standby or withdraw
  • Alternative 2 - Standby or amend/accept

Notes:
RICS Tendering strategies mentions JCT Tendering practice notes advises this

356
Q

Contract Practice:

Once the Works are complete and Contractor has carried out (and passed) Tests on Completion, what is the next events?

A

Engineer issue TOC (Scl. 10.1)

Defects notification period (DLP) - incl notify and remedy

Performance Certificate (Scl. 11.9)

Return of Performance Bond (Scl. 4.2)

357
Q

Contract Practice:

Why would a letter of intent be used?

A

facilitate start of works on site, pending agreement of the contract terms

Notes:

  • Quicker than LOA
  • note our MC wont engage on LOI
358
Q

Contract Practice:

FIDIC Red 99 - Can you narrate the final account payment process?*

Contract provisions

A

[post DNP/DLP, and post Performance Certificate]

MC submits draft final statement to Eng (Scl. 14.11)
Eng reviews <28 days

Once approved, MC submits Final Statement and Discharge to Eng (Scl. 14.11 + 14.12)
Eng reviews <28 days

Eng issues Final Payment Certificate (Scl. 14.13)
Employer pays <56 days (Scl. 14.7)

359
Q

Construction Tech + Environmental Services:

Are you aware of any modern construction techniques?

A

OSM/ modular

Floor and roof cassettes

3D printing e.g. house in Germany

360
Q

Procurement + Tendering:

How to advise on which procurement route to take for simple project - what steps to take?

SOE

A

Workshop

Client drivers - TCQ explain pros and cons

After, draft procurement route report

361
Q

Project Financial Control + Reporting:

when you “capture the anticipated cost and also worst-case scenario in the cost report” - doesn’t the worst case over inflate the outturn cost?

SOE

A

No, anticipated carries to total.

WCS there for info only

362
Q

Project Financial Control + Reporting:

Risks of PS to Client?

A

Less cost certainty. (than FPLS)

Omitting PS may lead to MC claim for loss of profit - but for OZ the Contract states Employer can expand PS fully, partially or not at all

Note:
Also the soft cost of administering PS (PM+QS)

363
Q

Design Economics + Cost Planning:

What did your one-page residential project profiles dashboards contain?

SOE

A

image, date, location

outline Specification

and elemental cost

Note:

  • Client facing document
  • to suit their budget
364
Q

Contract Practice:

What is meant by the term escrow?

A

escrow account for ring-fencing project funds

normally held by a solicitor (3rd party)

Notes:

  • This gives comfort to all parties (MC, SC, suppliers) that the funds are there
  • a deed, bond or other engagement delivered to a third party
  • to take effect upon a future condition and not till then, to be delivered to the grantee.
365
Q

Construction Tech + Environmental Services:

What are strip foundations used for?

A

For houses, load transferred down perimeter walls

366
Q

Procurement + Tendering:

You mention you identify scope gaps between packages. Provide an example?

SOE

A

e.g. hotel room lighting was neither MEP or hotel fit-out.

Note:
I advised PM of gap and requirement to procure elsewhere, or by variation to MEP

367
Q

Design Economics + Cost Planning:

For an order of cost estimate, would you expect full set of drawings?

A

No

368
Q

Construction Tech + Environmental Services:

Define substructure?

A

All below ground up to DPC

369
Q

Quantification + Costing:

Advise on the benefits of POMI and what it is used for?*

SOE

A

Tender analysis

For market consistency and familiarity

Standard method of measure - rules based e.g. bulkheads >500m measured in m2

370
Q

Contract Practice:

What is consequential loss?

A

indirectly caused, as a result of another event

e.g. if retail area is delayed/defective, loss of rent from shop

Note:

  • employer may suffer losses such as remedial costs, wasted costs, loss of profits, loss of business and loss of revenue.
  • FIDIC allows for overheads, prelims, loss of productivity, interest and finance charges, and claims preparation
  • FIDIC excludes profit, inflation or exchange rate fluctuations and lost commercial operation.
  • Broadly, contracts can allow direct losses to be recovered - loss of rent, cost of repairs
  • Under the common law of negligence, losses that are purely economic (such as loss of profit) are generally not recoverable, but under contract law they may be, depending on the wording of the contract
371
Q

Procurement + Tendering:

What is the difference between procurement and tendering?

A

Procurement - obtaining goods or services, including strategy to suit Client risk

Tendering - bidding price to obtain commercial and technical submission for price

372
Q

Contract Practice:

What is an advance payment bond?

A

Employer security against the payment made to Contractor

in case of Contractor default
or if Contractor use money to service obligation on another project

Note:
normally on demand

373
Q

Quantification + Costing:

How to value completed works based on a remeasurable payment mechanism/ contract type?

A

Using agreed rates (from BQ and VO’s)

Engineer would assess as-built drawings.

Remeasure the entire quantities of work undertaken

Note:
admeasurement refers only to the difference between the estimated quantity and the actual quantity

374
Q

In what situation might the Contractor be considered as part of the project team?

A

When engaged on PCSA (1st stage of 2 stage)

375
Q

Project Financial Control + Reporting:

How to value rates for a variation under our contract?

A

1 Use BQ rates

2 For new works

  • star rates,
  • 3+ quotes
  • first principles
  • benchmarking
  • apply agreed mark-up
376
Q

Project Financial Control + Reporting:

When would you use a star/ pro-rata rate?

A

When item is not in BQ - but of similar character, condition, quantity to a BQ item

Notes:
Used to price work where the unit rates in the contract cannot fairly represent the work done exactly. Usually, contract unit rates that are similar to the work done are used in negotiations to determine the Star Rate

E.g.

  • 6” skirting priced. 7” on drawings. Allow for 1” extra material, labour and plant would stay constant
  • cable originally in a 1m trench, now changed to 2m trench. Can assess the original contract rate and change to increase labour etc
377
Q

Design Economics + Cost Planning:

What is an option cost?

A

Alternate design option

Note:

  • for cost comparison
  • think alternate tender
378
Q

Construction Tech + Environmental Services:

What are grade 4 basements?

A

Totally dry environment

Notes:
Requires ventilation, dehumidification, or air conditioning appropriate to intended use. Used in Archives, Landmark buildings, and stores requiring a controlled environment

379
Q

Contract Practice:

What is a Certificate of Non-completion?

A

Where a completion date has been missed which may result in liquidated damages being levied

380
Q

Procurement + Tendering:

What’s a named subcontractor?

A

Named by the Client to influence the Main Contractor.

MC can reasonably object to any named firm

381
Q

Procurement + Tendering:

What would you take into consideration when looking at TCQ - Cost?

A

Lump sum, target, remeasure

Risk tolerances of Contractor and Clients

382
Q

Project Financial Control + Reporting:

What kind of milestones may milestone payments be typically paid against completion of?

A

Completion (for small project)

elements e.g. completion of foundations, frame (for mid-large project)

Notes:
The more prescriptive the more accurate e.g. completion of 1F columns rebar

383
Q

Design Economics + Cost Planning:

According to NRM1, what are some examples of other development/ project costs?

A

Developer’s costs, such as

  • insurances
  • planning fees,
  • marketing costs

Note:
-fees in connection with party wall awards,
- decanting and relocation costs,
- contributions associated with planning
permissions (such as Section 106 and Section 278 Agreements in the United Kingdom)

384
Q

Quantification + Costing:

What are some differences different between POMI and NRM2?

A

NRM2 much longer, way more detail

POMI is more trade based than NRM

Widely used in the UAE

385
Q

Construction Tech + Environmental Services:

Drawbacks of modular construction?
vs. traditional

A

facilitating late design variations

No transportation and cranage limitations

386
Q

Contract Practice:

What does Employers Liability Insurance cover/indemnify?

A

Employer can protect himself against claim made by employee in court

Typically AED 500k to 1m coverage

Note:
Employer’s liability pays additional compensation over and above the workers compensation benefits upon a court judgment of negligence on the part of the employer

387
Q

Contract Practice:

What are the 3 types of terms contained with a contract?

A

Express

Incorporated

Implied

388
Q

Contract Practice:

What is the legal doctrine of unjust enrichment?

A

No party should be unjustly enriched at the expense of the other.

Fairness

389
Q

Design Economics + Cost Planning:

Early stage of cost advice. You have benchmark data for another local completed project, how to adjust it?

A

Cost analysis (think resi project profiles), adjustment of

  • elemental cost (e.g. finishes, façade)
  • key features (procurement route, Contract, scope of works, outline Specification etc)

Note:

  • Assuming it is the same asset class/building type. Adjust for age and local supply/ demand. Contractor Tier 1 or risky
  • RICS Cost analysis and benchmarking global 2013
390
Q

Contract Practice:

FIDIC Red 99 - Can you narrate the TOC process?
Contract provisions

A

MC submits TOC notice to Eng (Scl. 10.1)

Eng issue or reject <28 days

391
Q

Quantification + Costing:

How much we pay for on-site material?

A

80% of invoiced material value (nett direct cost delivered to site)

Note:

  • Proven by invoice deliveries tickets.
  • If no tickets, 80% of the material estimate
  • Needs to be a reasonable delivery rather than overloading
392
Q

Contract Practice:

What is a claim for loss and expense?

A

the cost part of a claim

  • Cost under Contractor’s Claim (Scl. 20.1)
  • Time under EOT (Scl 8.4)

for loss of profit and expenses incurred due to a specific event, of no fault of the contractor

393
Q

Project Financial Control + Reporting:

If the Contractor has made a large and unrealistic claim, how do you deal with it within your cost report?

A

Note the MC actual claim value

Note:
Not in scope to manage claims

394
Q

Design Economics + Cost Planning:

Why would a Client prefer a cost plan in NRM1 format?

A

Client can compare their project cost plans from different QS’ - Gleeds, to Aecom, to F+G

395
Q

Design Economics + Cost Planning:

Acknowledge requirement for cost estimating at each design stage - why it this helpful/ what’s the purpose?

SOE

A

Provide a revised formal estimate

to track design development changes, flag over-spec

396
Q

Contract Practice:

What’s culpable delay?

A

EOT - as no fault of MC

397
Q

Contract Practice:

How did I calculate liquidated damages?

A

In UAE 0.5% of Contract Sum, per week

Note:
UK consider
- soft cost prolongation
- loss of e.g. rent, product sales

398
Q

Project Financial Control + Reporting:

What is the minimal level or service (steps taken) in producing cash flow forecasts?

A

Take employer brief (what do they want included/excluded)

Produce initial cash flow to inform employer of when payment obligations due

Update throughout design, tendering and contract for actual payments vs anticipated, and explain discrepancies

399
Q

Quantification + Costing:

What’s a Retention of title clause?

A

When supplier retains ownership of materials until paid

Note:
- also known as a ‘Romalpa’ or a ‘reservation of title’ clause
- defeated with admixture e.g. mix with another product and fixed
defeated with annexation e.g. material fixed to the land

400
Q

Project Financial Control + Reporting:

How would you establish a change control strategy in a project?

A

Discuss/agree - procedure process with PM, MC, Client

Document this clearly

Note:

  • Internal value - Update changes in internal value log (values/status’)
  • Cost report - Captures overall change mgmt cost impact in cost report
401
Q

Quantification + Costing:

What would you do if the Contractor submitted 10 Dayworks sheets to you for payment?

A

Verify it’s an Engineers Instructed VO

hours and materials authorised by Eng?

Check rates against agreed Daywork BQ rates

Note:

  • Can this be administered as VO?
  • For OZ - reject as likely fixed price lump sum
402
Q

Quantification + Costing:

‘credit’ may be a refund offered by MC to Employer. What could this credit be for?

A

Taking ownership of scrap

e.g. weighing in copper

403
Q

Project Financial Control + Reporting:

Commercial ratios and rates (build costs);

  • Overall BUA/ m2
  • Residential/ m2
A

Overall BUA/ is AED 8,100/m2
= (AED 3.95bn / 486,000m2)

Residential/ m2 is AED 2,400/m2
= (AED 107m / 45 floors @ 1000m2 per floor)

404
Q

Contract Practice:

FIDIC Red 99 - how long to pay Contractor advance payment, following LOA?

A

42 days

Note:
Sub-Cl. 14.7 payment

405
Q

Contract Practice:

What are the FIDIC 5x Golden Principles?

A

Designed to make market use standard unamended version

Notes:
principles include:
- Appropriate rights duties and obligations;
- unambiguously;
- that do not skew the risk/ reward profile;
- that allow for reasonable time periods;
- utilise the DAAB for binding decisions

406
Q

Contract Practice:

What are specified perils?

A

Re insurance exclusions for

significant events that cause significant damage - fire, explosions, earthquakes, flooding

407
Q

Contract Practice:

What’s Time is of essence?

A

Time limits must be strictly adhered to

E.g. delivering Expo 2020 pavilion in 2022

408
Q

Project Financial Control + Reporting:

What’s a stage payment?

A

pre-agreed amount upon pre-set time, regardless of progress

Good for small projects, or non-QS e.g. Engineer managed

409
Q

Quantification + Costing:

What’s a defined PS?
What’s an undefined PS?*

A

Defined - MC allowed for programme and prelims

Undefined - MC entitled to prelims and EOT if PS causes delay e.g. opening up brownfield ground

Notes:
Included in the Contract for unpriceable works, and works that may not be required, and not sufficiently designed for firm tender price

Valued in similar manner to Variation, MC will prove costs from 3+ subbies and apply agreed mark-up

410
Q

Contract Practice:

What is target cost contract type/ payment mechanism?

A

Pain/ gain share from Contract Sum

pain or gain shared between Client and Contractor (on pre-agreed % split)

411
Q

Design Economics + Cost Planning:

Examples of why a project goes over budget?

A

Incomplete design/ design development

Unrealistic cost plan (Client reduced value)

Client changes

Notes:

  • Procurement route
  • Variations/poor change control process
412
Q

Design Economics + Cost Planning:

You mention you costed VE proposals at Aecom - example of this?

SOE

A

Vertical fins were spaced every 1.5m. VE proposal spaced every 2m

413
Q

Contract Practice:

What’s concurrent delay?

A

2+ delays from independent causes overlap

414
Q

Procurement + Tendering:

How can you tell in the BQ if a PS is nominated or domestic?

A

in BQ12 PS the preamble would read…

  • “the following PS by specialist nominated”
  • “the following PS by domestic”

As per POMI general principle (GP) 6.1

Notes:
- Not relevant to OZ as all our domestic

415
Q

Contract Practice:

What’s Law of Contract?

A

An agreement entered into voluntarily by 2 parties

with consideration (often money)

the terms of that agreement are enforceable

416
Q

Contract Practice:

What are the provisions of the Construction Act 1996 (Housing Grants Construction Regeneration Act 1996)?

A

Ban pay when paid

right to adjudication

right to be paid in interim, periodic or stage payments

Notes:

  • right to suspend works for non-payment
  • ensure payments through supply chain are prompt
  • right to be informed of amounts due being withheld
417
Q

Construction Tech + Environmental Services:

Type of excavation used on OZ?

A

Complete

Note:
Complete - Full excavation with side supports/ whaler beams

418
Q

Procurement + Tendering:

What is meant by tender normalisation?

A

BQ TA adjustments

419
Q

Project Financial Control + Reporting:

What is cost planning?

A

Ensure design doesn’t exceed budget (or if under budget design quality can improve)

Pre-contract monitoring design and estimating at each formal design stages

420
Q

Contract Practice:

What’s a % for Performance Bond?

A

10% of contract sum

Note:

  • As with all bonds, paid by bondsman
  • Fixed value for contract duration
  • Releases funds to appoint another MC
421
Q

Construction Tech + Environmental Services:

What types of concrete are you aware of?

A

Plain/ordinary

lightweight (blinding)

Reinforced

Pre- and post-stressed

Glass reinforced (GRC)

Green

422
Q

Contract Practice:

What does FIDIC stand for?

A

international federation of consulting engineers

Note:
Fédération Internationale Des Ingénieurs-Conseils (in French)

423
Q

Quantification + Costing:

What 4 categories are prelims split into on OZ?

A

demobilisation + mob

time

work (task)

424
Q

Contract Practice:

What’s a material breach of contract?

A

fundamental purpose of the contract was not fulfilled –

defeats the purpose of even having a contract!

Note:
more serious than non-material breach

425
Q

Design Economics + Cost Planning:

What is my current advice to Client’s regarding inflation?

A

I don’t advise

My thoughts are

  • increase for issues with Covid and supply chain disruption, gov stimulus
  • decrease for weak market, oversupply of Contractors
426
Q

Quantification + Costing:

For MOS payments - what must you ensure is in place, what checks to make?

A

contract, and performance bond in place

Are required bonds in place

Assess who owns the materials - Client, MC or supplier. (vesting certs/ retention of title clauses)

Adequately protected, labelled stored and insured

Notes:

  • contract in place
  • should be provision in contract for MOS
427
Q

Procurement + Tendering:

What’s a domestic subcontractor?*

A

Employed directly by MC, on private agreement

Note:
Like OZ

428
Q

Project Financial Control + Reporting:

What is a cost value reconciliation (CVR)?

A

monitor and measure expenditures (cost)

against budgets (value) on construction projects.

Note:

  • also known as cost/value comparison (CVC)
  • Project’s profit and loss statement,
  • Tool typically used by contractors to measure profitability and are reported to the management team, usually around the time of interim valuation of the works completed to date, and again at completion of the final account.
429
Q

Quantification + Costing:

You advise Client with add and omit exercises. Provide an example of one?

SOE

A

Replacing GR3 wall paint with adjacent marble

Note:

  • Omit paint using subcontract rate
  • Add stone using subcontract rate
  • Add 5% MCOH+P
430
Q

Contract Practice:

What items are exempt from retention withholdings?

A

claims

Statutory fees

Notes:

  • insurance premiums
  • Opening up and testing
431
Q

Design Economics + Cost Planning:

Define a cost analysis?

A

Early stages

Costs from completed projects (e.g. aecom resi project profiles)

Make adjustments elementally (e.g. increase for more expensive façade. Storey heights)

Note:
cost modelling for different design solutions,

432
Q

Construction Tech + Environmental Services:

Name some types of brickwork bonds?

A

Stretcher - most common, half brick thick wall

English - alternate courses of header and stretchers, one brick thick wall

433
Q

Contract Practice:

Is the programme generally considered a Contract Doc?

A

No

Note:

  • Not listed in Priority of Contract Docs
  • The completion date is
434
Q

Procurement + Tendering:

In addition to price, what else are tender returns evaluated on?

A

Technical:

  • technical understanding on works
  • Relevant experience (Subcontractor’s specialism)
  • Existing relations/ Past performance
  • Resource availability, management skills
  • H+S record
435
Q

Contract Practice:

What is condition precedent?

A

If you don’t do this action, by this date, you lose entitlement

Note:
Provision which stipulates that MC or SC must comply with certain specified procedures if he is to avail himself of other contractual provisions

436
Q

Design Economics + Cost Planning:

To cost plan estimate for multi-asset building like OZ?

A

Follow NRM1 approach - elementally

Cost Analysis

  • adjust substructure against similar height
  • adjust façade against similar façade
  • adjust fit-out for resi areas
  • adjust hotel for hotel areas
437
Q

Design Economics + Cost Planning:

How would you estimate prelims in cost plan?

A

% allowance based on Cost Analysis from other projects

Can adjust for lay down areas, speciality of works

438
Q

Design Economics + Cost Planning:

Name some key project stages listed in RIBA POW 2020?

A
0 Strategic definition.
1 Preparation and briefing.
2 Concept design.
3 Spatial coordination.
4 Technical design.
5 Manufacturing and construction.
6 Handover.
7 Use.
439
Q

Design Economics + Cost Planning:

If you were undertaking a Value Engineering exercise and the client requests to add two Italian chandeliers and a fountain in the entrance lobby of a hotel project what would you advise them?

A

Depends on clients definition of “value” - should be established during VM

add value to client to spend additional money on their entrance lobby eg. attract more customers.

440
Q

Project Financial Control + Reporting:

How are project risks addressed/captured in the Cost Report?

A

Contingencies

EW

Insurances, Guarantees and bonds

Claims

441
Q

Project Financial Control + Reporting:

What would you expect to find in a Contractor Request for Variation?

A

Narrative,

Cost impact summary

Rate used

Substantiation

Mark-ups

Note:

  • we review commercial
  • PM review time
442
Q

Project Financial Control + Reporting:

Why would a cash flow be behind the target cash flow?*

A

Site conditions

Adverse weather

Re-sequencing of works (perhaps due to procurement of sub-contractor)

Materials being stored off site (and not claimed for)

Project progressing slower than anticipated

Materials not being delivered on time

Cash flow not being accurate in the first place

443
Q

Project Financial Control + Reporting:

What are the effective cost control measures you are taking in your project?

A

Regular cost reporting - incl. management of PS

Change control procedure

444
Q

Project Financial Control + Reporting:

How do you capture materials on-site in the cash flow?

A

You don’t, or you qualify..

For ours, we allow AED 20m as site is city centre, JIT deliveries (agreed with Client based on benchmarks)

This average is regularly checked against previous IPC’s for accuracy, and it is accurate

445
Q

Project Financial Control + Reporting:

What are the cost reporting protocols and where can you find them?

A

Protocols;

  • Content + format of the cost report
  • Timing and frequency of report issuance
  • Interface with other parties (e.g. client financial team / client point of contact)
  • Distribution list
  • Method of presentation of the report

Where to you find them;

  • RICS guidance note - only as a guideline
  • protocols discussed and agreed with client on project by project basis
446
Q

Project Financial Control + Reporting:

How does cost planning influence the cost report?

A

Overall construction budget

Risk allocated amounts (contingencies)

VE provisions

447
Q

Quantification + Costing:

What is the structure of the POMI BQ?

A
A - General Requirements
B - Site Works
C - Concrete Work
D - Masonry
E - Metalwork
F - Woodwork
G - Thermal and Moisture protection
H - Doors and Windows
J - Finishes
K - Accessories
L - Equipment
M - Furnishings
N - Special Construction
P - Conveying Systems
Q - Mechanical Engineering Installations
R - Electrical Engineering Installations
448
Q

Quantification + Costing:

If you advice a client on the types of BQ to use, what would you consider?

A

procurement route

Contract conditions

  • payment types e.g. milestones, activity schedule
  • LS or remeasure

available information - dwgs and specs

the market norms/ familiarity

project type - civil or construction

449
Q

Quantification + Costing:

If you receive a set drawings on your client as is requested to produce a BQ. List out your process of producing this deliverable?

A
  1. Study drawings
  2. list outstanding information
  3. Discuss BQ structure and level of detail required
  4. Provide completion date
  5. Delegate measurement tasks
  6. Manage TQ’s
  7. Compose Preambles
  8. QAQC (bulk checks, spot checks and reviews)
  9. Provide required format (hard copies / soft copies)
  10. Archive measurement back ups for future use
450
Q

Quantification + Costing:

How would you produce a preliminaries Bill for your BQ?

A

Refer to POMI - Section A General Requirements

  • CoC
  • Spec
  • Facilities
  • Temp works
451
Q

Quantification + Costing:

What are BQ preambles and what is their purpose?

A

clarifications/ deviations from SMM

give a robust definition to the measurement principles and components of the rates in a BQ

452
Q

Quantification + Costing:

What are the components of a Main Works BQ rate?

A

Refer to BQ preambles, but generally

Supply and delivery to site

All labour cost

Wastage

OH+P (SC + MC as applicable)

If not clearly separate in General Req’s or separately

  • Testing and Commissioning
  • Inspection (Specialist third part if required) / certificates
453
Q

Procurement + Tendering:

When you perform a tender evaluation, how do you deal with a error in the submission?

A

As per ITT

  • Traditionally, error is corrected
  • Employer benefits for cost saving (Tenderer issue if cost increase)
454
Q

Contract Practice:

How would you assess the claim for loss and expense?

A

refer to Contract clauses for Claims.

  • Review if notices served
  • Establish entitlement
  • Assess if the required contemporary documents are provides with appropriate calculations.
  • Review the calculations and substantiation with other members of the Project team
  • Produces a determination
  • administer the change to the Contract
455
Q

Construction Tech + Environmental Services:

Differences between porcelain and ceramic tile?

A

Water absorption

Note:
Porcelain tile - water absorption rate of 0.5% or lower
Ceramic tile - more absorption

456
Q

Quantification + Costing:

A tile has changed from tile A to tile B - how would you amend the tile A BQ rate?

A

Substitute the material element only

Based on supplier quotes

(assuming all things equal)

457
Q

Quantification + Costing:

What would you find the Preambles?

A

General Principles e.g.

  • GP3 tonnage in 2dp
  • GP6 what is to be included in a BQ rate

Measurement rules for each section, such as J Finishes, bulkheads exceeding 500mm measured in m2

458
Q

Procurement + Tendering:

For a new unique design, why could you use two-stage tendering?

A

To ensure the design is buildable, using Contractor’s buildability expertise

459
Q

Procurement + Tendering:

What are the 4 different types of OJEU?

A

Restricted
Open
Competitive negotiation
Competitive dialogue

Note:

  • Official Journal of the European Union
  • public procurement procedures
460
Q

Contract Practice:

If change contract type from lump sum to remeasure, what would you advise the client of pros and cons?

A

Pro

  • leaner rates as tenderer derisked
  • likely to lower cost of work
  • actual quants lower than Contractor indicative BQ

Cons

  • cost certainty as anticipated cost will change (up or down)
  • relies on thorough bill to ensure all works are captured (LS can put onerous on tenderer to check spec and dwgs fully to offer their FPLS)