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.)
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
3
Q
Contract Practice:
When should the Contractor provide his Performance Security/Bond to the Employer?
A
Within 28 days following LOA
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
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
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)
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
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
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
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)
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
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
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’.”
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
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
16
Q
Project Financial Control + Reporting:
Main Contractor prelim costs on my project?
A
315m
= 9%
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
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
19
Q
Contract Practice:
What is Misrepresentation?
A
a false statement of fact or law which induces a party to enter a contract.
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
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
22
Q
Design Economics + Cost Planning:
What does the term price stability refer to?
A
boundary between inflation and deflation
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
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
25
Project Financial Control + Reporting:
| What's the 4x types of period payment mechanisms?
e,g, IPC
Stage - agreed time
Milestone - agreed work/element
Against activity schedule
Valuation e.g. interim against BQ
26
Quantification + Costing:
Disadvantage of using BQ's?
Incorrect quants (contradict spec + dwgs)
Missing work items
Note:
Not popular in UK, as who is liable for above. We control here by saying tenderer to measure and the BQ is indicative only
27
Construction Tech + Environmental Services:
Describe what I know about contiguous piles?
small gap between each, leaks
Capped with a concrete ring beam to join the tops of the piles, for rigidity
Cheapest,
28
Project Financial Control + Reporting:
Are there any costs you would exclude from a cost report?
SOE "I produce the monthly CR"
Employer's costs
- their employees
- land costs
- post-completion cost/sales/revenue
- finance cost
Legal fees
29
Quantification + Costing:
The MOS has been paid for and is the property of the Employer. However, theft has occurred. How is responsible for the loss?
Off-site - party who's duty it is to protect, likely supplier
On-site - party who's duty it is to protect, likely Contractor
30
Project Financial Control + Reporting:
Client wants high accuracy of value of works done to date, at expense of low cash flow predictability - what type of period payment mechanism to recommend?
IPC Valuation e.g. interim against BQ
Note:
against activity schedule (reasonable predictability and accuracy of work done)
31
Project Financial Control + Reporting:
What's a milestone payment?
pre-agreed amount upon completion of work element
Good for small projects, or non-QS e.g. Engineer managed
32
Contract Practice:
What's a non-material breach of contract?
considered minor;
contract can still be fulfilled, and non-breaching party is still obligated to hold up their end of the deal.
33
Design Economics + Cost Planning:
Cost plan structure - what is meant by Cost breakdown structure (CBS)?
Cost target for each element, say internal finishes
34
Construction Tech + Environmental Services:
What tests would be carried out on structural steel?
Bolt tightening or torque test
Magnetic particle inspection test for welding
Visual test for welding
Note:
- Bend testing on shear stud
- Radiographic
35
Contract Practice:
What are some of the EOT's regarding on your project?
Changes
- Link bridge EOT-9
IFC/design release delay
- Technical floor delays EOT-7
New works
- Hotel Forecourt Canopy EOT-14
Procurement
- Tower hotels EOT-12
36
Design Economics + Cost Planning:
OZ metal doors over PS allowance. BS benchmark was okay. Workshop with Contractor identified cause was ANSI specified. This was VE on another Client project. I advised to take saving but Eng overruled as ANSI specified project wide.
Why advise Client on saving at risk of fire integrity?
SOE
Contractor and Client made this change of DHE project
BS is still safe fire rating
37
Contract Practice:
You "generally request tenderer to comply with CoSC." What are some of your CoSC?*
SOE
Contractual terms - termination for convenience, 12m DLP
Bonds (Performance Security, Advance Payment)
Insurances (PII, Workmen's comp)
Payment terms
Note:
Payment terms
- 10% Advance Payment - recovered through IPC
- 10% Delay Damages cap. Charged at 0.5% per week
- Mark-ups for 5% Variations and 4% PS
- 10% Retention - released 2.5% on TOC, 2.5% on draft final acct, and 5% on Final Payment Certificate
38
Procurement + Tendering:
With two-stage tendering you get the benefit of Contractor design input, but at the expense of?
(vs single stage)
Cost certainty
Possibly water down design intent by MC for buildability puropose
39
Contract Practice:
What bonds would you recommend for a large building project?
Performance Bond
Advance Payment Bond
Materials Off-Site bond (for many large off-site orders)
40
Design Economics + Cost Planning:
Following the NRM1 DD cost plan, what steps were taken to produce PTE for ID fit-out works on A4?
SOE
Produced master area schedule, and designated team different typologies
Collated all measures, including gross sense checks
Created POMI BQ - priced measured works using relevant benchmarks, reuse DD costs, first principles
Applied fit-out prelims 10% and contingency of 10%
41
Design Economics + Cost Planning:
What is element unit rate (EUR)?
complete subcontractor cost for e.g. facade/m2 (includes frame, glass, etc)
Excludes MC costs - prelims, OH+P
Note
- think NRM L1 and L2 cost
42
Contract Practice:
What's Time at large?
No completion date,
completed in reasonable time,
no LD's
43
Contract Practice:
On the 11m EOT, what was awarded to Contractor?
Prolongation (time-related prelims) costs
Note:
- 11m of time
- no head office overheads, no loss of profit
44
Contract Practice:
FIDIC Red 99 - what's the priority of docs?
SOE "I respond to queries such as..?"
/ What would you include in a Contract Document in a construction project?
- Contract Agreement (if any)
- Letter of Acceptance
- Letter of Tender
- The Particular Conditions (Appendix to FOT)
- General Conditions (std contract)
- Specification
- Drawings and
- The Schedules and any other documents forming part of the Contract
Note:
Cl. 1.5 priority of documents
45
Project Financial Control + Reporting:
Name some contract types/ financial basis?
Lump sum
target sum
cost reimbursement and
guaranteed maximum price
```
Notes:
RICS - the way (mechanism) the contractor or subcontractor is paid for the work it undertakes:
- BQ, with or without remeasurement
- schedule of rates
- activity schedule
```
46
Project Financial Control + Reporting:
What is/ what constitutes a variation?
Increase/ decrease in quantity
Change/ substitution of Spec material
Resolve a discrepancy between contract docs
new works (e.g. hotel entrance canopy)
Notes:
- Change any specified sequence or timing of Work
47
Contract Practice:
What is pay when paid terms?
MC pay subbie in X days of receiving payment
A timing mechanism only
Note:
Generally will not excuse the MC from payment obligation to subbie, regardless of whether MC was paid
48
Project Financial Control + Reporting:
Your UK employer is building a warehouse in France and paying the local contractor in Euros. What else would you need to advise of beforehand, and include when updating monthly cash flow
fx fluctuations
Notes:
- If Client has cash reserves this can be mitigated upfront by buying Contract Sum worth of Euros and banking this (fixing fx)
- Or more complexly by financial institution hedging against (incur hedging cost)
49
Contract Practice:
1 key difference between project bank account and escrow account?
PBA - account in name of project parties
Escrow - account in name of third-party
50
Quantification + Costing:
What's a Vesting certificate?
Evidence that Employer owns off-site materials (once paid for)
Protection if contractor becomes insolvent, materials wont be sold to pay debtors, before being delivered to site.
Notes:
- defeats third party claims such as retention of title,
- e.g. for advance payments on long-lead item such as facade and lifts
51
Contract Practice:
Define fit for purpose?
an obligation to achieve a specified result
Note:
higher duty of care than reasonable skill and care
52
Construction Tech + Environmental Services:
Can you name few functional safety equipment of Swimming Pools, as per DM guidelines for Swimming Pool safety?
Lighting
Depth marking
Ladders, steps
Notes:
- slip-resistant tiles
- Showers and Foot baths
- Toilet and Changing room facilities
- Deck
53
Contract Practice:
What does employers liability insurance cover,
and what does public liability insurance cover?
Employers - for injury or disease to employee (in course of their duties)
Public - for accidental injury to non-employees and damage to property
Note:
All liability insurance covers the cost of defending and paying out
54
Project Financial Control + Reporting:
What is included on a change control request/form? (RFC)
Details - dates, transmittal refs, project members
Description/ reason for change
Substantiation (from proposer e.g. MC)
55
Project Financial Control + Reporting:
when you "compile and issue CR to client you capture remeasurable works, EW, VO, PS, claims, IPC, and salient commercial items for director meetings." Provide an example of a salient item?
SOE
Pending EOT's that have not been submitted
Note:
e.g. link
56
Construction Tech + Environmental Services:
When taking-off, what units of measurement are used for steel and concrete?
Steel is tonnage
Concrete is m3
57
Contract Practice:
Which FIDIC for small scale project, what form to use?
Green book
Note:
'Short Form of Contract'
58
Contract Practice:
Benefits of using a Bond and PCG?
Bond expires after Final Payment Cert (post-DLP),
whereas PCG may be liable for 6/12 years
PCG may be liable for 100% MC losses,
whereas bond is typically 10%
PCG no use if whole group goes insolvent,
whereas bondsman could honour
Notes:
- MC may not wish to give both as overlap, but PB and PCG provide different, complimentary types of security
- PCG not paid for by Client, unlike Bond through tender sum
59
Project Financial Control + Reporting:
What is the release mechanism with regard to the contingency pot?
The contingency is reduced following the close-out of key risks e.g. enabling works once complete
Note:
- This is a guess
- or balance of remaining allowance should be progressively reduced on an agreed basis. The release of remaining general risk allowance may be made pro-rata to:
- % of completion of programme
- % completion of cost
60
Project Financial Control + Reporting:
Apart from cost impact, what other factors should be considered in variations?
Time (programme)
LCC considerations
Impact on budget
61
Procurement + Tendering:
What would you take into consideration when looking at TCQ - Time?
is there time to prepare a complete design
When is the site available
Completion date e.g. Expo 2020
62
Contract Practice:
Aside from red book for construction, what are some other colours of FIDIC and what used for?
SOE
Blue 2016 - Dredging, reclamation
Green 1999 - Short Form
Silver 2017 - EPC/ turnkey (lump sum)
Yellow 2017 - D+B (lump sum)
Notes:
- Gold 2008 - D+B operate
- Pink 2010 - Construction (multilateral development bank)
- Red 2017 - Construction (Employer design)
- White 2017 - Consultant/ advisory services
63
Contract Practice:
What is privity of contract?
only the parties to the contract can take the benefits or burdens/obligations (not 3rd parties)
Note:
For example, if A promises to B, that A will pay a sum of money to C, as a general rule, C cannot enforce that obligation against A.
64
Quantification + Costing:
What is a payment on account for?
payment for an item of work or materials or goods for which no instruction has been issued by the contact administrator to date, but is anticipated’.
Note:
Payments on account are used by QS for any item in a valuation that cannot be agreed under the contract rules but, that both sides agree that some payment is due.
65
Quantification + Costing:
What's a Schedule of Work?
Without quantities,
activity/ works descriptions often produced on smaller/ alteration works (think BGW)
66
Contract Practice:
What is a Tolent clause?
Party who refers to adjudication, pays all costs (regardless of decision)
Design to discourage
67
Design Economics + Cost Planning:
What are some market factors/ influencing factors on cost plans?
Location
Remediation for brown field sites
Different labour and material costs
The state of the construction economy and general economy - supply and demand
Note:
- Tender process
- Buildability
- Construction type (concrete/ steel frame)
- Height, plan, size and shape
- Site density
68
Contract Practice:
What are the 3 types of letter of intent (LOI)?
1 Comfort letters - simplest form
2 Consent to spend - up to X value
3 Recognition of contract - includes contract documents
69
Design Economics + Cost Planning:
Your Client wants to build a new primary school for 500 students in Dubai and has engaged you to prepare the feasibility estimate. What type of estimation method could you advise (assuming no design info)?
Functional unit estimating
Note:
e.g. like a stadium is cost/seat, hospital/patients
70
Design Economics + Cost Planning:
Name some of the NRM1 group elements?
SOE "in UAE, NRM1 for cost planning"
1: Substructure
2: Superstructure
3: Internal finishes
4: Fittings, furnishings and equipment
5: Services
```
Notes:
0: Facilitating works
...
6: Prefabricated buildings and building units
7: Work to existing buildings
8: External works
9: Main contractor’s preliminaries
10: Main contractor’s overheads and profits
11: Project/design team fees
12: Other development/project costs
13: Risks
14: Inflation
```
71
Contract Practice:
Contractor's are claiming Cl 8.4 EOT in FIDIC Red 1999 - what's the key word they cite with regard to Covid-19?
“epidemic”. (Scl. 8.4.(d))
Note:
in context of COVID-19 pandemic that the construction industry is faced with, you were unable to confirm what Sub-Clauses Main Contractors are claiming Cost and Time under (i.e., Sub-Clause 8.4 and 19), and also what the key word in Sub-Clause 8.4 is – i.e., 8.4 (d) states the word “epidemic”.
72
Quantification + Costing:
What do fluctuations typically relate to?
Materials - rebar (and metals generally)
Labour
Plant hire
Note:
- can go down, normally cost increase however
- fluctuations clauses can be used to offset risk, otherwise MC to price into tender
- fluctuations insurance for materials such as rebar
73
Quantification + Costing:
How to administer a Final Account with Contractor generally?
(the QS agreement part rather than contractual procedures)
SOE "A4 enabling works"
Check contract procedures for FA including timescales.
```
1 Contract Sum
+ add/omits for..
2 Engineers Instructions (VO)
3 Adjustments (PC Sum, Prov Qts, PS)
4 Claims outstanding etc
```
Negotiated and agreed with QS
Notes:
- Goal is to agree a fair valuation with the Contractor and enable the Engineer to issue the Final Payment Certificate
- Settling can take years e.g. Burj, involving negotiating all financial aspects of Contract and project delivery
- Should be able to withstand stringent financial audit as it is legally binding
74
Procurement + Tendering:
You mention L1 does not always represent best value and the technical submission is of equal importance. Why might L1 not be best value if it's the lowest cost?
SOE
e.g. Spec misconstrued,
exclusions,
ability to manage and execute project
75
Contract Practice:
What is joint and several liability?
e. g. if a JV on large project, all parties are jointly and severally liable to employer
e. g. Employer can can go after them jointly or individually (for whole works)
Note:
- severally = individually
- FIDIC Red 99 Scl. 1.14
76
Procurement + Tendering:
What are the reasons for robust tendering strategies, according to RICS Tendering Strategies 2014?
```
1 accountability
2 auditability
3 complete scope
4 parity
5 reduce claims of corruption; and
6 accurate price
```
77
Construction Tech + Environmental Services:
Foundations transmit loads to ground. What are the 4 main types of foundations?
Pad
Piles
Strip
Raft
78
Contract Practice:
What is doctrine of Estoppel?
eSTOP a party from not keeping to contractual promise
Notes:
Estoppel is a legal mechanism which prevents a party from departing from a promise or representation they have made to another party where to do so would be unfair, unjust or unconscionable. The concept of estoppel embraces notions of fairness and reasonableness that results in reliance upon strict legal rights being otherwise overridden. Estoppel in most cases is a defence, as opposed to a basis of a claim, and is used as a shield not a sword.
79
Project Financial Control + Reporting:
Give examples of Client 'direct works',
Give examples of Contractor 'direct works'?
Client direct costs e.g. OSE and sometimes FFE
Works carried out by Contractor's in-house labour such as concrete, rebar
80
Quantification + Costing:
Name the two main types of pricing documents?
bill of quantities
schedule
- SOW (schedule of work)
- priced activity schedule
- contract sum analysis
- stage or milestone payment schedules.
81
Design Economics + Cost Planning:
Some differences between VE + VM?*
VM
- proactive (early right decision)
- identify important to Client (e.g. gold hotel room)
- workshops
- more pre-contract
VE
- reactive (when over budget)
- more post-contract (can be pre- though)
Note:
- both may cost more, but provide better value (e.g. last longer LCC)
82
Project Financial Control + Reporting:
The Contractor is ahead of the forecasted cash flow expenditure. The forecasted project total = contract sum. As part of the minimum level of service you need to advise the Client why this may be. What could the reasons be include?
contractor ahead of programme (excellent performance)
materials being stock-piled on site before required
front-end loading
cash flow not inaccurate in first place
Notes:
- impact of variations
- re-sequencing of works, with higher value works carried out earlier
- materials off site not taken into account when producing cash flow forecast
- contractor purposely accelerating the works to complete earlier (and therefore expending less preliminaries)
- potentially overclaiming on IPC's
83
Project Financial Control + Reporting:
Are EW values captured in the outturn cost?
Yes, all likely costs
Note:
Worst-case values noted only, do not carry through
84
Project Financial Control + Reporting:
Describe the change control process on OZ?*
SOE "we have a robust change ctrl.."
1 Anybody initiate/request change - (Emp, consultant, MC)
2 PM assessed
- time impact
- sign-off
3 QS estimate
- ARF (change narrative, cost summary, measurements, BQ/ star rates, mark-ups
4 Employer change approval - accept/ reject
5 VO issued to Contractor
6 AVVO - cost agreed between MC and QS
Notes -
Think of x example
- As per Cl. 22 Variations
85
Construction Tech + Environmental Services:
What's bottom up construction?
Like OZ from B7 upwards
traditional and easier
86
Contract Practice:
What is an agreement?
(as opposed to a contract)
Informal
Often unwritten
Notes:
Contract is written and legally binding
87
What is meant by Lean construction?
Removing unnecessary construction activity to reduce cost and improve quality.
Note:
Similar, but VM/ VE focus on processes and products
88
Design Economics + Cost Planning:
Define a cost estimate?
Snapshot of cost at current design stage
Note:
e.g. DD, IFC
89
Design Economics + Cost Planning:
Typical contents of a cost plan*
5 Summary of Construction Costs
6 Reconciliation
8 Area Schedule
9 Marked up floor plans
10 Benchmarking Analysis
11 Basis - Assumptions + Exclusions (fluctuations, contingencies)
12 Risks + Opportunities
```
Notes:
OZ DD cost plan components
1 Front Cover
2 QAQC sheet
3 Contents
4 Executive Summary - Reconciliation to previous Cost Plan e.g. Concept
7 Low Level – Elements - Reconciliation to Stage D
13 Measured Works Section
```
90
Construction Tech + Environmental Services:
What's the structural composition of OZ?
Reinforced concrete frame
with steel link
- connected using transfer members
91
Procurement + Tendering:
Describe the tender process on OZ?
1 Tenderer selection (shortlist)
2 Prequal
3 Compiling tender docs (Vol 1-5)
4 Issue - TQ's, mid-bids
5 Tender return - open
6 Adjudicate - com and tech review, PTC's
7 Recommendation - Final negotiation, Tender report
92
Design Economics + Cost Planning:
What is a definition benchmarking, what does it seek to do?
Systematic method of comparing against others
Overall process of improvement aimed at providing better value for money
Best in class performance achieved based on a specific aspect
Note:
examples such as
- rate e.g. fit out contractor VO has plaster at AED 100/m2, but your rate from plastering subbie is AED 16/m2
- To estimate the façade cost in cost planning stages, you could use benchmark from the same façade on another building (assuming oyu had the cost data)
93
Contract Practice:
| What's novation?
re assignment and novation
Benefits and obligation (of a contract) can be transferred by novation agreement
Note:
Whilst benefits of a contract can be transferred by assignment, if parties wish to transfer both benefits and obligations this must be done by a novation agreement.
94
Construction Tech + Environmental Services:
| Benefits of concrete?*
vs. steel
Inherent fire protection
Can build higher
Good thermal and acoustic properties
Note:
- Strong under compaction
- Less floor-to-floor required (service penetrations through beams)
- Cheaper (UAE labour cost)
95
Contract Practice:
In my opinion, are time bars a good idea?
Yes - early MC communication enables time to resolve
No - unfair if MC just misses, and could be an injustice if rightful claim
96
Procurement + Tendering:
What are 3 main types of tendering strategies?
SOE
Single stage
Two stage
Negotiated
97
Contract Practice:
OZ + FIDIC Red 99 - Can you narrate the interim payment process?
Contract provisions
MC submits statement to Eng (Scl. 14.3)
Eng issues IPC <28 days (Scl. 14.6)
Employer pays <28 days from IPC (Scl. 14.7)
/ <56 days from statement
98
Project Financial Control + Reporting:
How do you control costs post-contract?
Setup a change log
Review/ estimate each set of drawings as issued.
Design team meetings
Cost report (incl. directly informing client)
99
Design Economics + Cost Planning:
Difference between WLC + LCC?*
SOE
WLC is broader (think Link bridge)
- non-constructive (land acquisition, taxes, fees)
- income/revenue generation (as advised by others)
- plus LCC
LCC (like buying and running a car costs)
- construction, operational, maintenance/replacement, and demolition
100
Procurement + Tendering:
What is PFI procurement?
private finance initiative
a way of financing public sector projects through the private sector.
Note:
PFIs alleviate the government and taxpayers of the immediate burden of coming up with the capital for these projects
101
Construction Tech + Environmental Services:
Facade type used on OZ?
Unitised towers and stick around podiums
Spec is mm glass, 12mm air gap, 15mm glass
102
Design Economics + Cost Planning:
From my SD cost plan at Aecom, what exclusions did I make?
SOE
Currency fluctuations for overseas investors
Legislation changes
Loose furniture and OS+E
Professional fees (soft costs)
VAT
103
Procurement + Tendering:
| Advise on typical qualifications and exclusions included within a Main Work tender return?*
SOE
Remeasurable offer
Ground conditions
Payment terms
- 30day not B2B
- LD's
- advance payment %
- retention
Time for Completion date
Exclusions within BQ
PII indemnity level coverage required
Note:
VAT
104
Contract Practice:
What's Disruption?*
drop in productivity due to interruption, reducing the rate of efficiency.
Note
e. g. imagine a linear project (such as a road/ rail project)
- when MC faces obstruction at a particular location, it may be able to continue works at a different location
- so MC would move the resources to new location
- that particular obstruction (most probably) won't provide an entitlement for an EOT but it certainly will give an entitlement to disruption
105
Contract Practice:
Are Contractors entitled to time and cost for Covid-19?
FIDIC yes time and cost under Cl.19 Force Majeure
OZ does not state (its blank).
Note:
Be aware/careful Contractors are not aggregating other claims
106
Construction Tech + Environmental Services:
| Benefits of steel?*
vs. concrete
Fast programme (OSM + installation)
Lightweight (less substructure cost)
Larger spans (tensile strength)
Note:
- recyclable
107
Contract Practice:
When are the Contractor's Works accepted?
/ After TOC, and after expiry of DLP, what is issued to the Contractor?
Performance Certificate (Scl. 11.9)
Note:
- Eng issue <28 days of DLP expiry (assuming all is good)
- Sometimes/ previously known as DL Certificate
108
Project Financial Control + Reporting:
My role regarding the monthly cost report?
SOE "I produce the monthly CR"
Input change management
PS expenditure
have updated the current cash flow costs
Note:
balance change management with PS expenditure to avoid recording cost in both places
109
Quantification + Costing:
Which NRM advises on compiling a BQ?
NRM2
sets out the elements and the rules for measuring (substructure, superstructure)
110
Contract Practice:
Some examples of breach of contract by Employer?
Failure to give possession of site
Termination for convenience (unless OZ contract)
Non‐payment
111
Procurement + Tendering:
What are the methods of selecting tenderers?
Open tendering - public
Selective tendering - closed
Single contractor selection - for negotiating
112
Quantification + Costing:
Steps involved in interim payment (IPC)/ valuation?
SOE "I carried out monthly enabling works on A4"
MC submits application to PM
My assessment within 28 days, PM issues IPC
- site visit (BQ accuracy, MOS)
- request substantiation if required
Employer pays <28 days from IPC
/ <56 days from statement
113
Construction Tech + Environmental Services:
High-level of strand jacking process?
Strands are jacked-up
Strand is held in place - jack drops down
Note:
Repeat - strand is jacked up, strand is held in place, jack drops down
114
Project Financial Control + Reporting:
What procurement routes are stage payments most associated with?
D+B
115
Procurement + Tendering:
Provide an overview of two-stage tendering?*
1st stage:
- tenderer prices concept dwgs, spec, prelims, SOR, OH+P, and design development
- "preferred" MC develops concept design (as part of design team), on PCSA
2nd stage:
- negotiated
- not obliged to appoint, MC paid for design on PCSA
Note:
- Benefit is early MC involvement for their buildability skills
- Closed tender, prequalified
116
Construction Tech + Environmental Services:
OZ Max depth/ thickness of raft slab?
9m
117
Contract Practice:
What is meant by Contractor's design portion?
an agreement for the contractor to design specific parts of the works
Note:
JCT speak
118
Contract Practice:
How should the retention fund money be held by the fiduciary (employer)?
Separate account, preferably escrow
119
Contract Practice:
Which FIDIC contract for consultants?
White (2017)
120
Quantification + Costing:
What is the RICS Code of Measurement Practice?
Obsolete SMM
UK use only
Note:
- As most SMM's, to provide precise definitions/rules for measuring
- was for valuating, conveyancing, planning, taxation, sales, letting, acquisitions
- GEA, GIA, NIA
121
Design Economics + Cost Planning:
Can you name the two definitions detailed in the DM Area Definitions 2008?
Floor area ratio (FAR) - similar to NIA
- usable area
- circulatory only
Built-up area (BUA) - similar to GEA
- all area
- excl. MEP shaft
122
Quantification + Costing:
How to agree the draft final account on A4 enabling works - what was process?
SOE
[post TOC. DLP 1yr had started]
Contractor submits draft final statement (includes engineer approved as-built dwgs)
I/we assess and agree variance from Contract to As-built (no PS, etc) - new items not in BQ were priced using framework agreement
Note:
I left project during DLP...
- [DLP ends]
- Contractor submits Final Statement and Discharge
- Engineer issues Final Payment Cert <28d
- Employer pays <56d
123
Quantification + Costing:
What does NRM3 provide guidance on?
SOE
WLC and maintenance works
124
Contract Practice:
What are three problems that arise when Standard Form of Contract is changed?
The interaction between clauses
The interaction with law (common/civil)
Time taken to draft and approve
Notes:
- Contract may become unfair/ too onerous
125
Contract Practice:
What are the 4 court structures in UAE?
1 Court of First Instance (claim right to go court)
2 Court of Appeal (contest decision of First Instance)
3 Court of Cassation
4 Federal supreme court of Abu Dhabi
126
Design Economics + Cost Planning:
What is escalation/ and escalation clauses?
Increase or decrease in cost of labour or materials due to inflation (e.g. rebar)
The clause would allow e.g. the Contractor to claim the variance (50/50 often pain:gain share with Employer)
127
Construction Tech + Environmental Services:
Process for bored friction pile?
Bore excavate, bentonite, rebar, concrete.
Later break pile and cap
Note:
replacement (rather than displacement) pile
128
Contract Practice:
Drawbacks of increasing advance payment to say 25% to achieve lower tender sum?
negative effect on Client cash flow
Higher Client risk (although can be bonded)
```
Note:
Benefits tenderer with
- mobilisation costs,
- material purchase of long lead items,
- their cash flow
```
129
Construction Tech + Environmental Services:
Types of displacement piling?
Pre-cast/ driven
Sheet
130
Construction Tech + Environmental Services:
What's meant by the term thermal mass?
Ability of material to absorb and store heat
Note:
- Concrete is good as it is dense
- Steel conducts heat too rapidly, in sync with building
- Timber absorbs heat slowly, like a sauna
131
Contract Practice:
What is an open ended performance bond?
auto renewed until occurrence like TOC reached
Note:
Expiry date mentioned auto renews
132
Contract Practice:
What is PCSA and what situation may it be used for?
Pre-construction services agreement
enable clients to employ contractors before the main construction contract commences
Notes:
- Typically they are part of a two-stage tender process, used in the first stage to procure contractor involvement in the design process
- copyright clause allows client to use design with new contractor
133
Design Economics + Cost Planning:
What is cost target?
..for each element (e.g. internal finishes)
134
Project Financial Control + Reporting:
A Variation has been instructed that pushes the anticipated final account above budget, what action would you take?
notify Client immediately of instruction (if they overlooked ARF)
Record in cost report
135
Contract Practice:
What contract type/ payment mechanism would you advise should the client not wish to take the risk on ground conditions?
GMP
136
Construction Tech + Environmental Services:
What are some of the predominant environmental factors related to piling works?
CO2 emission (volume of material, transport, energy consumption),
waste generation
soil contamination
noise and vibration
air quality
137
Contract Practice:
What's culpable delay?
EOT - as no fault of MC
138
Contract Practice:
What is Sectional Completion?
allowing completion dates for different sections of works. Common on large projects that are completed in sections, allowing client to take possession of the completed parts, whilst construction continues on others
Have separate LD's for separate Sections
139
Design Economics + Cost Planning:
Why is VAT excluded from cost plan?
Not qualified to provide professional guidance
Different Clients incur different VAT levels
Different projects such as schools may have VAT incentives
140
Design Economics + Cost Planning:
What are the two types of construction inflation?
Construction - from tender return --> building e.g. steel rates
Tender - from cost plan estimate --> tender return
141
Contract Practice:
What is an MOU?
Memorandum of understanding
Notes:
- Similar to contract but need not contain legally enforceable promises
142
Quantification + Costing:
A contractor completed works before 1 Jan 2018. Some payments were made before and after 1 Jan. What should they pay VAT on (ultimately instructed by PM) - but what did they do on mbr?
VAT was applicable for when the works were carried out. In this instance, none
143
Procurement + Tendering:
What is an 'Employer's Requirements' doc?
For D+B
Want the Employer requires (like a Spec/ building functionality)
144
Construction Tech + Environmental Services:
OZ Waterproofing for raft and basement?
3 layer membrane (tanking)
145
Contract Practice:
FIDIC Red 99 - After the Contractor receives Letter of Acceptance from Employer, how many days until they enter into contract?
(assuming not agreed otherwise)
28 days
Note:
Cl. 1.6 contract agreement
146
Project Financial Control + Reporting:
The Contractor is ahead of the forecasted cash flow expenditure. The forecasted project total = contract sum. As part of the minimum level of service you need to advise the Client why this may be. What could the reasons be include?
contractor ahead of programme
impact of variations
materials being stock-piled on site before required
Notes:
- front-end loading
- re-sequencing of works, with higher value works carried out earlier
- materials off site not taken into account when producing cash flow forecast
- contractor purposely accelerating the works to complete earlier (and therefore expending less preliminaries)
- cash flow not inaccurate in first place
147
Contract Practice:
Benefit of using SFC unamended?
Drawback of Client bespoke?
SOE
SFC
- Tried and tested courts (clause overlaps)
- Fast (client bespoke lawyer review)
- Better response from market as familiar with terms (less tenderer risk)
- administering experience
Note:
- too onerous
- Law implementations
148
Procurement + Tendering:
Provide an overview of single-stage tendering?
Closed
prequalification
tender,
adjudicate/PTC
recommend
149
Construction Tech + Environmental Services:
What ventilation systems do I know of?
natural ventilation - windows
mechanical ventilation - AC, radiators
150
Quantification + Costing:
Translate Quantum Meruit?
And what is it used for?
‘the amount deserved’ / or ‘what the job is worth’
Where no price included for in the Contract (work done outside of contract scope). e.g.
- works done on an LOI comfort letter or LOI consent to spend
Note:
- Quantum Meruit is where MC seeks payment for value of works where a pre-agreed cost has not been determined.
151
Construction Tech + Environmental Services:
Benefits on reinforced concrete frame for OZ?
Go high as strong under compaction,
Inherent fire protection
Note:
- can drill through for services,
- cheap local labour
152
Construction Tech + Environmental Services:
Concrete grades e.g. C20 - what do the grades relate to?
Comprehensive strength
Note:
think cube test
153
Quantification + Costing:
What is double handling?
Moving material twice
Note:
Material to the wrong place, move it twice - e.g. gypsum used, moved to storage, then required again
154
Contract Practice:
What is the definition of Adverse climatic conditions in FIDIC?
Abnormal, based on recent historical data
155
Construction Tech + Environmental Services:
Considerations prior to basement construction?
Underground services,
adjacent properties (party wall),
water table
```
Note:
Strata tests (CBR, trial bore hole)
```
156
Quantification + Costing:
| What's an All monies clause?
MOS
seller retains ownership until payment of all monies owed by the buyer
Note:
This type of clause renders it unnecessary, in the event of an insolvent buyer, to reconcile invoices against specific goods to establish what has been paid for, and what has not, and hence what the buyer owns, and what it does not
157
Procurement + Tendering:
Is two-stage always lump sum?
No, can be cost plus, remeasure
158
Project Financial Control + Reporting:
Construction - key quantities and rates
- Facade towers UCW
- Rebar rate
- Concrete
- Shuttering
- Steel UB
Facade towers UCW = AED 2-3000/m2 (varies)
Rebar rate = AED 3.33/kg
Reinforced slab, 300mm thick = AED 450/m3
Shuttering m2 @ AED 150/m2
Steel UB 920x420x390 = AED 8,500/t
159
Construction Tech + Environmental Services:
Types of replacement piling?
- Bored
- Contiguous (cheapest, small gap between each, leaks)
- Diaphragm wall
- Secant (male and female, 1 reinforced, 1 not)
160
Project Financial Control + Reporting:
You advise Client with high-level cost impact assessments. Provide an example of one?
SOE
new toilet cubicles on latest IFC drawings - EW captured in cost report
161
Construction Tech + Environmental Services:
Pre-stressed concrete - describe post-tensioned concrete?
cast around ducts or sheathing in which the tendons are housed
Carried out after the concrete has cured by means of hydraulic jacks operating from one of both ends
162
Contract Practice:
What conditions can a conditional Performance Bond be called?
under performance,
walk off-site,
to begin arbitration proceedings
Note:
- 10% on demand (un-conditional)
- typically expires <21d after Performance Certificate
163
Contract Practice:
What events are typically covered by Workmen's Compensation cover/indemnify?
Occupational death and disability
Loss of wages (cash allowance)
Medical expenses
Note:
- protect employer against their liabilities to employees in respect of injuries suffered by them in the course of their employment as per Labour Law/Workmen's Compensation Ordinance.
- In UAE compensation is governed by Chapter 8 of Federal Law No. 1980
164
Design Economics + Cost Planning:
What is often excluded from a cost plan?*
Currency fluctuations (for overseas investors)
Loose FF+E and OS+E
Professional fees (soft costs)
VAT
Land costs
Revenue generated from asset
Note:
- Asbestos and remediation cost
- Section 106 (UK)
165
Design Economics + Cost Planning:
What is cost checks / checking?
check current estimate against previous cost targets
Note
- cost checks at all design stages
166
Quantification + Costing:
What are drawbacks of Prov Sums?
Cost uncertainty
Contractor not incentivised to squeeze supplier/subbie on price
167
Contract Practice:
What projects are suited to DBFO contracts?
a bridge with toll gate
Note:
Design, build, finance and operate
168
Contract Practice:
What is a decennial liability?
10yr insurance that covers the event of building partial or full collapse post-completion
And latent structural defects that compromise the building’s safety and/or stability.
169
Construction Tech + Environmental Services:
Why do you think steel was chosen for the link bridge?
Extensive glazing, large open spans,
strong under tension,
aesthetics
Notes:
assemble on floor and lift (OSM principle)
170
Design Economics + Cost Planning:
Cost plan structure- what is meant by Work breakdown structure (WBS)?
Costs into trade packages
Note:
- e.g. joinery costs, decoration costs
171
Procurement + Tendering:
What would you take into consideration when looking at TCQ - Quality?
Design control
172
Quantification + Costing:
When did the IPMS residential come into effect?
May 2018
173
Construction Tech + Environmental Services:
Steel grades e.g. S235 - what do the grades relate to?
Tensile strength
174
Contract Practice:
What is the prevail clause in the Contract?
When there is an ambiguity, the prevail clause mentions which document shall take priority.
175
Contract Practice:
What is the difference between collateral warranty and warranty?
Business - Collateral warranty is between Client and Subcontractor.
Product - warranty is for the Client for the actual product (not subcontractor)
176
Design Economics + Cost Planning:
You mention you obtained PC rates for stone - as Singaporean based spec. What alternative stones were you benchmarks based upon?
SOE
Similar characteristic - but alternate supplier/quarry
177
Procurement + Tendering:
Example of a loaded rate?
High rate that does not impact/ carry through to tender amount
- Rate only items
- Low provisional qty
- If on remeasure, with low indicative BQ qty
178
Contract Practice:
What is Contra Proferentem?
if ambiguity about meaning or scope of an exclusion clause/or contract, it works against party who drafted the contract (rather than helps them)
Note:
- (of the interpretation of an ambiguous contract) against the party which proposed or drafted the contract or clause
- UAE Civil Code Article 266 states “A doubt shall be interpreted in favour of the obligor”
179
Contract Practice:
When is the Performance Security (Bond) required to be
- issued
- returned (expire)?
Issued after LOA, before Commencement Date
Returned <21d after Performance Certificate
Note:
Refer FIDIC Red 99 diagram
180
Quantification + Costing:
What's a Contract Sum Analysis?
Either prepared by MC as part of D+B tender, or by Employers QS for tender comparison
can form basis of payment administration post-award
Note:
Elemental breakdown of contract sum
181
Quantification + Costing:
"A4 led team for BQ production". What did this entail roughly?
SOE
Initial take-off to produce an area schedule.
Shared with team and collated their take-offs
create POMI BQ
182
Contract Practice:
What are accepted insurance exclusions as per FIDIC Red 99?
Force Majeure
- War, hostilities
- Rebellion, terrorism
- Riot, disorder, strike
- Radiation, explosions
- Natural disasters - earthquake, hurricane
Note:
In FIDIC 87 (Scl. 21.4) this is under exclusions, now 99 is Force Majeure
183
Contract Practice:
What does third-party/public liability insurance indemnify?
legal liability for Property Damage or Death/Personal Injuries to Third Parties
Note:
- arising out of operation of the insured business within the Territorial Scope
- typically AED 5-10m indemnity
184
Construction Tech + Environmental Services:
When would you prefer raft foundation?
Spreads load over building footprint, larger m2
Concrete slab for good soil bearing capacity
Good for poor load bearing soils/ sands (e.g. a pad fdn needs good strata)
185
Contract Practice:
What is an off-site materials bond?
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
Procurement + Tendering:
Name some types of the Cl. 15 insurances required by the CoSC from tenderers - as a minimum?
(FIDIC is Cl. 18)
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
Contract Practice:
What professional services contract is your firm engaged on?
Client bespoke
188
Construction Tech + Environmental Services:
How is friction piling different end-bearing?
SOE
Friction, rather than transferring load to end-bearing
Note:
No solid strata in the desert
189
Project Financial Control + Reporting:
Provide an example task of what a Contractor may submit reimbursement for on Dayworks?
If cannot be fairly valued by measurement,
e.g. fix 1 additional door, out-of-sequence (during DLP)
190
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
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
Contract Practice:
What happens if MC recommendation is not acceptable to PM/Employer?
Never happened
MC and Client both under same Group
Note:
Could explore nomination perhaps
192
Project Financial Control + Reporting:
What's an advance payment?
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
Contract Practice:
Some examples of breach of contract by Contractor?
Abandonment
major defective work
Major delay (subject to):
- no intention to complete
- time being of essence
194
Design Economics + Cost Planning:
Difference between cost planning and cost control?
cost planning is Pre-
cost control is whole process (pre- and post-contract)
Notes:
- pre (design within budget)
- post (build within budget)
195
Procurement + Tendering:
Name some P+T guidance documents for best practice?
RICS Tendering Strategies 2014.
FIDIC Procurement Procedures Guide 2011
Note:
- RICS E-tendering 2010
- JCT Tendering Practice Note 2017
196
Procurement + Tendering:
How to handle a late tender return?
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
Construction Tech + Environmental Services:
3 different basement types you are aware of?
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
Quantification + Costing:
What would you assess for monthly interim payment on a Cost Plus contract type?
Contractors actual costs + mark-up
199
Quantification + Costing:
What is the internal dominant face?
Internal finished surface
comprising 50%+ of surface area
200
Procurement + Tendering:
For D+B - If the design team is novated, what should the client put in place?
A collateral warranty to design team
Note:
Creates a contractual relationship between parties where there would otherwise not have been any
201
Design Economics + Cost Planning:
What is the OGC Gateway?
to ensure business case for building a public building (UK)
Note:
- Gateway review 1-5
- Office of Government Commerce (OGC)
202
Contract Practice:
What is the major drawback of a cost plus/ reimbursable contract?
MC not incentivised to keep costs lean
203
Contract Practice:
Can a subbie claim monies owed to him by the Contractor, from the Employer?
No
Note:
- Unless novated his right and obligations to the Employer
- Article 891 of Civil code expressly precludes this
204
Contract Practice:
Who should prepare an LOI?
Construction lawyer
205
Contract Practice:
What actions can be taken by Employer to mitigate project delay/ accelerate?
Client can instruct Acceleration (will incur cost)
Note:
MC can increase labour count, working hours within legal limits
206
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?
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
Contract Practice:
What is the purpose of Contractors All Risk insurance - what does it cover?
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
Contract Practice:
You mention at "uni you learnt how UK law impacts UK construction contracts." Example of this?
SOE
banning pay-when-paid terms
right to period payment mechanisms such as IPC
Note:
Construction Act 1996
209
Contract Practice:
What is meant by the term surety?
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
Design Economics + Cost Planning:
What is the elemental method?
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
Project Financial Control + Reporting:
What is meant by 'outturn cost'?
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
Construction Tech + Environmental Services:
What are the 3 types of excavation?
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
Project Financial Control + Reporting:
two main types of cash flow forecast?
company/organisational (i.e. contractor or consultant)
construction contract or project
214
Contract Practice:
What's Frustration of Contract?
both parties can end the contract
Contractual relief when environment radically changes, for fairness (e.g. war breaks out)
215
Design Economics + Cost Planning:
What does the base cost estimate compromise of?
```
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
Design Economics + Cost Planning:
Should you just allow a standard 10% Contingency on all projects?
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
Contract Practice:
List some heads of claim (heads of loss)?
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
Design Economics + Cost Planning:
Does the building works estimate include facilitating works, prelims, MCOH+P, design, inflation, risks?
No
Note:
NRM1 group 1 substructure - 8 external works
219
Design Economics + Cost Planning:
What are the different cost types for a cost estimating?
Functional unit rates
Floor Area (GIA) rates
Elemental unit rates (EUR)
measured quant rates (NRM2/ POMI)
220
Design Economics + Cost Planning:
Name some design efficiency ratios?*
SOE
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
Construction Tech + Environmental Services:
What's scabbling?
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
Procurement + Tendering:
What's a nominated subcontractor?
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
Contract Practice:
What is a Parent company guarantee (PCG)?
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
Procurement + Tendering:
benefits of negotiated tender?
Reuse high performing subbies (high quality)
fast tender,
for specialist project
Note:
- closed
- lower soft costs to administer tender
225
Contract Practice:
Explain Battle of Forms and last shot principle?
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
Contract Practice:
What's Law of Tort?
Compensation for losses suffered from another parties actions.
Notes:
- Regulates conduct of individuals
- It deals with civil wrongs
227
Project Financial Control + Reporting:
What contingency was allowed on OZ?
10%
228
Design Economics + Cost Planning:
What is IPMS?
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
Contract Practice:
What's acceleration?
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
Contract Practice:
What's compensable delay?
Entitlement to EOT including prolongation (time-related prelim) costs
Note:
includes relief from LD's
231
Contract Practice:
How is retention held and released to Tower B subcontractor?
10% held on IPC's
2. 5% released on TOC
2. 5% released on as-built and draft FA
5% released on DLP (Final Certificate)
232
Design Economics + Cost Planning:
Define a cost plan?
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
Construction Tech + Environmental Services:
| Benefits of modular construction?
vs. traditional
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
Procurement + Tendering:
What is meant by design intent?
SOE
specifies the performance requirements
Note:
MC has some things to design e.g. garbage chute, façade secondary steel
235
Quantification + Costing:
What's a Schedule of Rates?
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
Design Economics + Cost Planning:
What does the term residual or retained risk mean?
The risks retained by the Employer
237
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
Fit-out
Kitchen equipment
238
Construction Tech + Environmental Services:
What level of fire protection is required for structural steel? According to local requirements?
2hr fire protection
Note:
link is 3hr
239
Project Financial Control + Reporting:
Typical contents of a cost report?*
SOE "I produce the monthly CR"
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
Procurement + Tendering:
Steps involved in tender opening?
SOE
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
Project Financial Control + Reporting:
What EOT costs to include in CR?
Daily prelims costs for MC and effected Subcontractor
x
anticipated/awarded delay in days (as advised by the PM)
242
Contract Practice:
| What should be contained within a building contract?
what docs make it binding
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
Design Economics + Cost Planning:
Aside from the design and construction of a project - what other factors can influence cost
SOE
location and jurisdiction
TPI - contractor availability/ labour supply and demand, material escalation
244
Project Financial Control + Reporting:
What's the purpose of a cash flow/ what is it used for?*
SOE
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
Contract Practice:
What's are boilerplate clauses?
Standard/ general contractual clauses
Such as assignment, force majeure, arbitration clause
246
Contract Practice:
What are the benefits of an EOT to the Contractor, and to the employer?
Contractor relieved of LD liability
Employer - establishes new contract completion date to prevent time 'at large'
247
Design Economics + Cost Planning:
What are the technical differences between ANSI and BS for metal doors, which contributed to 50% cost difference?
SOE
Ironmongery more durable (tested on more opening cycles)
Greater core resistance
248
Construction Tech + Environmental Services:
OZ Concrete wall thickness?
1.2m at bottom, thinner up the tower
249
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
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
Contract Practice:
Define reasonable skill and care?
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
Contract Practice:
Name some of the FIDIC series (e.g. years)?
87, 99, 2017
252
Design Economics + Cost Planning:
What is the Building Cost Index (BCI)?
Cost to Contractor
Labour and material
253
Design Economics + Cost Planning:
What is the Construction Price Inflation (CPI)?
Inflation from the TR date to mid-point of construction
Note:
Also known as
- construction inflation
- tender inflation
254
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
LOA awarded faster Subcontract
Note:
Subcontract to follow 6-8 weeks
255
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?
Stage - agreed time
Milestone - agreed element
Note:
Reasonable predictability and accuracy of work done (against activity schedule)
256
Contract Practice:
What does contractor's plant and machinery insurance indemnify the MC/SC for?
indemnifies against sudden, accidental and unforeseen loss or damage
excluding mechanical/electrical breakdown.
Notes:
- small tools
- heavy plant
- tower cranes
257
Construction Tech + Environmental Services:
Main reason for OZ not being steel frame?
Steel will not reach the heights required 300m+
258
Quantification + Costing:
Talk me through how you would measure concrete piles?
Excavation m3
Rebar tonnage
Concrete m3
Cut pile tops nr
Transfer ring beam m
Notes:
Plant in prelims
259
Contract Practice:
Difference between Letter of Award and Letter of Intent?
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
Procurement + Tendering:
What procurement routes available?*
Traditional
D+B
Management Contracting
Construction Management
Note:
- Serial/ Measured Term - typically 3-5 years
- Turn key/ EPC
- Partnering
- PFI/ PPP
261
Quantification + Costing:
Prerequisite for making an Advance payment?*
SOE "I advised Client 30% AP for kitchen equipment"
Contract in place (AP% stated in Appendix)
Performance Bond in place
Adv Payment Bond (if required)
Recovery agreement (either IPC or milestone)
262
Project Financial Control + Reporting:
How to a handle/manage Contractor claims?
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
Design Economics + Cost Planning:
What is your most reliable/preferred cost data for estimating?
SOE
Benchmarking - recent in-house from similar projects
Post-contract Final Account better than pre-contract estimate
264
Procurement + Tendering:
What is prime contracting procurement?
single point of contact (prime contract) for a supply chain to deliver one or more projects
Note:
Think UK prison projects
265
Construction Tech + Environmental Services:
What are pad foundations used for?
At column bases
For lighter structures, wide spanning such as warehouses
266
Procurement + Tendering:
benefits of e-tendering?
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
Contract Practice:
What is the purpose of an Entire Agreement clause?
parties disclaim any prior communications that could otherwise be considered part of the final, executed agreement
268
Construction Tech + Environmental Services:
What's a Composite floor slab?
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
Quantification + Costing:
Advantage of SMM?
SOE
Rules
familiarity, consistency
tender comparison/analysis
270
Quantification + Costing:
What does CESMM stand for?
SOE
Civil Engineering Standard Method of Measurement
271
Project Financial Control + Reporting:
How do you control costs pre-contract?
Estimates at CD, DD, SD, DD
Design team meetings
Advise client of cost impacts.
272
Contract Practice:
What's Prolongation?*
'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
Procurement + Tendering:
Does the Contractor have a right to object to nominated subbie?
yes, if he has reasonable grounds for so doing
e.g. recent litigation
or poor performance on another project
274
Quantification + Costing:
Risk to Client for overpaying Contractor in IPC?
MC default, having to pay twice
Strain on cash flow
275
Contract Practice:
What's the advantage of using a Standard Form Contracts?
SOE
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
Contract Practice:
| What is a Retention Bond?
similar to DLP bond
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
Contract Practice:
What's a Tender/bid bond?
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
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"
Regularly monitor and manage known cost throughout the project
Rolling final account - to inform Client of forecasted total project cost (incl. budget concern)
279
Design Economics + Cost Planning:
What is the Tender Price Index (TPI)?
Cost to Client
Tender Returns
280
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
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
Construction Tech + Environmental Services:
Definition of cantilever (re bridge)
Not supported at one end
282
Construction Tech + Environmental Services:
Concrete slabs 2 types?
Post-tension
Precast
283
Contract Practice:
What's force majeure?
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
Procurement + Tendering:
What's does RFP stand for, and what docs may be included?
Request for proposals (from consultants)
Nature of project,
Programme
Contractual terms
Note:
- May include the brief, selection criteria, PI requirements, budget, management structure
285
Construction Tech + Environmental Services:
What are the typical components of site investigations?
Party wall (adjacent sites, hedges)
Existing trees
location of services – gas, telephone, electricity, water, drains
Ground conditions - soil, water
286
Design Economics + Cost Planning:
How to cost MEP in your cost plan?
Ideally MEP QS to undertake
Order of Cost Estimate stage - if no MEP QS available, use benchmark rates for floor areas
287
Procurement + Tendering:
drawbacks of negotiated tender?
Lack of competition may = high price,
not for public project unless an emergency repair project
288
Contract Practice:
What's a time bar?
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
Project Financial Control + Reporting:
What are some of the contents I would have in my ARF variation?
Change narrative
Summary
Costs - BQ rates, star rates, supplier quote
Measure - take-off
Mark-ups
Notes:
- Cover
- Signed VO attached
- QAQC comp check
290
Contract Practice:
How is retention held and released to Main Contractor?
5% held on IPC's
2. 5% released on TOC
2. 5% released on Final Payment Certificate (post-DLP)
291
Quantification + Costing:
What does the term 'fixed charge' mean?
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
Contract Practice:
What's an unconditional/ on-demand bond?
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
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)
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
Construction Tech + Environmental Services:
Name two common types of formwork for repetition constructing of tower cores and stairwells?
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
Contract Practice:
Limitations and down sides of using bonds?
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
Contract Practice:
What is the Base Date according to FIDIC Red 99?
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
Contract Practice:
Name some items excluded from CAR insurance?
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
Construction Tech + Environmental Services:
You advised that ceramic is faster to install than marble in BOH circulatory corridors. How you know its faster?
SOE
From my experience installing
Lighter, workability
299
Procurement + Tendering:
You mention in SOE that tenderers submit three years P+L accounts in prequal, what else is in prequal?
Organisational info
Past projects delivered
Trade license
Note:
- Latest internal management accounts
- H+S record
300
Procurement + Tendering:
What is meant by the tendering term 'MEAT'
Most economically advantageous tender
Note:
Not just lowest price
301
Contract Practice:
What contract would I advise for a new Client?
FIDIC Red 2017, unamended
302
Procurement + Tendering:
What's Strengths of D+B procurement?
Cost certainty
and time
single point responsibility
Note:
- overlap design with construction
- Not quality according to TC triangle
303
Construction Tech + Environmental Services:
Foundation type used on OZ?
SOE
9m deep raft slab
on friction piles (1.5m wide and 40m deep)
304
Quantification + Costing:
What does "ICMS aim to implement"?
SOE
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
Design Economics + Cost Planning:
| What is escalation?
not the clause
Increase or decreases in the costs of labour or materials due to inflation
306
Design Economics + Cost Planning:
Who is responsible for VE?
Often QS, but designers should design to budget
307
Quantification + Costing:
Advise on POMI 1979 - acronym, usage?
Principles of Measurement International
More trade based than NRM
Widely used in the UAE
308
Contract Practice:
Name some SFC's?
SOE
FIDIC
JCT
NEC4
Note:
PPC2000
309
Construction Tech + Environmental Services:
What's power floating?
Circular grind for a flatter surface
310
Quantification + Costing:
How to handle disagreements with Contractor's QS?
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
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
Mostly intuitive and often straight fits
However, some elements require splits
312
Construction Tech + Environmental Services:
What's top down construction?
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
Project Financial Control + Reporting:
What info is required to prepare a cash flow forecast?*
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
Contract Practice:
What should you check the collateral warranty for?
Make sure the company has assets, not just a company setup for this project
315
Contract Practice:
What is the definition of a contract?
Legally binding agreement (between two parties)
To provide goods and services
Within a specified time
316
Procurement + Tendering:
Aside from knowing the likely cost in advance of a tender, what else can a PTE be used for?
SOE (Q+C)
Benchmarking side-by-side tender analysis
317
Project Financial Control + Reporting:
What is cost control?
Whole process start to finish (pre and post)
Note:
Same as cost management
318
Contract Practice:
What SFC would you use for a Management Contracting procurement?
JCT Management Building contract
Note:
NEC Option F
319
Construction Tech + Environmental Services:
Who takes ownership of piling cost if piles required deeper?
Depends on procurement and contract type.
A4 is Client - as measured Term (remeasurable) contract
FIDIC Silver would be MC all risks
320
Quantification + Costing:
What is a Prime Cost Sum?
SOE
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
Project Financial Control + Reporting:
What is a definition of an early warning on your project?
EW e.g. item raised in commercial meeting
Ahead of Contractors ARF (VO)
Likely cost captured in outturn cost, noting worst-case scenario
322
Quantification + Costing:
NRM volumes?
1 Cost planning
2 BQ production (tendering)
3 Maintenance/ WLC
323
Contract Practice:
What SFC would you use for a Construction Management procurement?
JCT Construction management agreement (for CM)
JCT construction management trade contract (for subbies)
324
Project Financial Control + Reporting:
What is a Rolling Final Account?*
The project total project cost (in CR) - outturn cost
Includes
- contract sum
- variation
- PS adjustments
- EOT costs
325
Contract Practice:
What's a conditional/ default bond?
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
Procurement + Tendering:
| What is a post tender estimate?
not pre-
Estimate after receiving tender returns,
to advise Employer on required budget
327
Contract Practice:
On OZ, how long has MC to notify, e.g. for prolongation claim or anything else?
Notify of becoming aware of within 28 days
Interim particulars in 28 days,
detailed particulars to follow in e.g. 42 days
328
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?*
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
Quantification + Costing:
Advantage of using BQ's?
tenderer familiarity (navigation)
tender return analysis
BM
administering payment
330
Contract Practice:
How is Advanced payment recovered?
recovered through IPC
Diminishing value
331
Construction Tech + Environmental Services:
Describe the process for installing a continuous flight auger and bored pile?
Augur out soil,
bentonite,
rebar cage
concrete (displaces bentonite)
Note:
this says concrete first? https://www.youtube.com/watch?v=aAZoTG0EY3U
332
Construction Tech + Environmental Services:
Ground investigation surveys on site?
Trial hole boring
CBR (California Bearing Ratios)
333
Design Economics + Cost Planning:
Typical contents of a VE/VM report?
/ What's the VE/VM process?
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
Contract Practice:
What contract type/ payment mechanism would you most expect for civil engineering works?
Remeasurable
Client qty risk
335
Contract Practice:
What is meant by the term effective contract price?
Contract price excluding
- PS
- Dayworks allowance (if any)
FIDIC 87
336
Procurement + Tendering:
What is a bona fide tender?
genuine offer
in good faith
a form/certificate of a Bona Fide tender/offer
337
Design Economics + Cost Planning:
What has changed in RIBA 2020?
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
Contract Practice:
| What's assignment?
re assignment and novation
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
Procurement + Tendering:
What is PPP procurement?
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
Contract Practice:
What is pay if paid terms?
MC only obliged to pay subbie, if paid by Client
Condition precedent
341
Quantification + Costing:
What does the contractor's written discharge confirm?
the Final Account represents full and final settlement
Note:
FIDIC Red Sub-Cl. 14.12 discharge
342
Contract Practice:
Key differences between OZ and FIDIC Red 99?*
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
Quantification + Costing:
IPC Interim payment certificate/valuations - typical contents?*
SOE "I carried out monthly enabling works on A4"
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
Construction Tech + Environmental Services:
What is a transfer slab and why are they used?
Reinforced concrete slab.
Transfer floor loads to the support post and pillars.
345
Construction Tech + Environmental Services:
What's green concrete?
Made from eco-friendly concrete waste
346
Procurement + Tendering:
Difference between Construction Management and Management Contracting?
MC - Client direct contract with MC (Main Contractor)
CM - CM advisory role. Client direct contract with subbies
347
Construction Tech + Environmental Services:
Can you briefly explain the process of installing the Cantilevered bridge in your project?
Towers off-plumb
Link bridge strand jacked 100m into position
Transfer members to connect to towers
Towers pulled plumb
348
Contract Practice:
What are the risks of proceeding on a LOI?
Often brief letter - lacks contractual detail
Should only be used whilst terms are being agreed/ LOA being formed.
Often big cause of disputes
349
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 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
Design Economics + Cost Planning:
When is VE/VM most effective?
Early on
Most scope for change
351
Contract Practice:
Examples of any differences between CoC and CoSC on your project?
Retention - 5% and 10%
PII - USD $10m vs. sometimes proportionate e.g. package AED 5m
352
Project Financial Control + Reporting:
You advise Client with high-level cost impact assessments. Provide an example of one?
SOE
ARF carpet to stone in resi corridor
or, paint to marble in GR3
353
Project Financial Control + Reporting:
What sort of risks did we price on OZ, and how are these priced?
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
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
Just gave general cost advice.
If option was viable to the Client, then I would approach the Architect
355
Procurement + Tendering:
When dealing with errors in tender returns. How would you treat Tenders containing arithmetical errors?
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
Contract Practice:
Once the Works are complete and Contractor has carried out (and passed) Tests on Completion, what is the next events?
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
Contract Practice:
Why would a letter of intent be used?
facilitate start of works on site, pending agreement of the contract terms
Notes:
- Quicker than LOA
- note our MC wont engage on LOI
358
Contract Practice:
FIDIC Red 99 - Can you narrate the final account payment process?*
Contract provisions
[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
Construction Tech + Environmental Services:
Are you aware of any modern construction techniques?
OSM/ modular
Floor and roof cassettes
3D printing e.g. house in Germany
360
Procurement + Tendering:
How to advise on which procurement route to take for simple project - what steps to take?
SOE
Workshop
Client drivers - TCQ explain pros and cons
After, draft procurement route report
361
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
No, anticipated carries to total.
WCS there for info only
362
Project Financial Control + Reporting:
Risks of PS to Client?
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
Design Economics + Cost Planning:
What did your one-page residential project profiles dashboards contain?
SOE
image, date, location
outline Specification
and elemental cost
Note:
- Client facing document
- to suit their budget
364
Contract Practice:
What is meant by the term escrow?
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
Construction Tech + Environmental Services:
What are strip foundations used for?
For houses, load transferred down perimeter walls
366
Procurement + Tendering:
You mention you identify scope gaps between packages. Provide an example?
SOE
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
Design Economics + Cost Planning:
For an order of cost estimate, would you expect full set of drawings?
No
368
Construction Tech + Environmental Services:
Define substructure?
All below ground up to DPC
369
Quantification + Costing:
Advise on the benefits of POMI and what it is used for?*
SOE
Tender analysis
For market consistency and familiarity
Standard method of measure - rules based e.g. bulkheads >500m measured in m2
370
Contract Practice:
What is consequential loss?
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
Procurement + Tendering:
What is the difference between procurement and tendering?
Procurement - obtaining goods or services, including strategy to suit Client risk
Tendering - bidding price to obtain commercial and technical submission for price
372
Contract Practice:
What is an advance payment bond?
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
Quantification + Costing:
How to value completed works based on a remeasurable payment mechanism/ contract type?
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
In what situation might the Contractor be considered as part of the project team?
When engaged on PCSA (1st stage of 2 stage)
375
Project Financial Control + Reporting:
How to value rates for a variation under our contract?
1 Use BQ rates
2 For new works
- star rates,
- 3+ quotes
- first principles
- benchmarking
- apply agreed mark-up
376
Project Financial Control + Reporting:
When would you use a star/ pro-rata rate?
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
Design Economics + Cost Planning:
What is an option cost?
Alternate design option
Note:
- for cost comparison
- think alternate tender
378
Construction Tech + Environmental Services:
What are grade 4 basements?
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
Contract Practice:
What is a Certificate of Non-completion?
Where a completion date has been missed which may result in liquidated damages being levied
380
Procurement + Tendering:
What's a named subcontractor?
Named by the Client to influence the Main Contractor.
MC can reasonably object to any named firm
381
Procurement + Tendering:
What would you take into consideration when looking at TCQ - Cost?
Lump sum, target, remeasure
Risk tolerances of Contractor and Clients
382
Project Financial Control + Reporting:
What kind of milestones may milestone payments be typically paid against completion of?
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
Design Economics + Cost Planning:
According to NRM1, what are some examples of other development/ project costs?
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
Quantification + Costing:
What are some differences different between POMI and NRM2?
NRM2 much longer, way more detail
POMI is more trade based than NRM
Widely used in the UAE
385
Construction Tech + Environmental Services:
| Drawbacks of modular construction?
vs. traditional
facilitating late design variations
No transportation and cranage limitations
386
Contract Practice:
What does Employers Liability Insurance cover/indemnify?
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
Contract Practice:
What are the 3 types of terms contained with a contract?
Express
Incorporated
Implied
388
Contract Practice:
What is the legal doctrine of unjust enrichment?
No party should be unjustly enriched at the expense of the other.
Fairness
389
Design Economics + Cost Planning:
Early stage of cost advice. You have benchmark data for another local completed project, how to adjust it?
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
Contract Practice:
FIDIC Red 99 - Can you narrate the TOC process?
Contract provisions
MC submits TOC notice to Eng (Scl. 10.1)
Eng issue or reject <28 days
391
Quantification + Costing:
How much we pay for on-site material?
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
Contract Practice:
What is a claim for loss and expense?
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
Project Financial Control + Reporting:
If the Contractor has made a large and unrealistic claim, how do you deal with it within your cost report?
Note the MC actual claim value
Note:
Not in scope to manage claims
394
Design Economics + Cost Planning:
Why would a Client prefer a cost plan in NRM1 format?
Client can compare their project cost plans from different QS' - Gleeds, to Aecom, to F+G
395
Design Economics + Cost Planning:
Acknowledge requirement for cost estimating at each design stage - why it this helpful/ what's the purpose?
SOE
Provide a revised formal estimate
to track design development changes, flag over-spec
396
Contract Practice:
What's culpable delay?
EOT - as no fault of MC
397
Contract Practice:
How did I calculate liquidated damages?
In UAE 0.5% of Contract Sum, per week
Note:
UK consider
- soft cost prolongation
- loss of e.g. rent, product sales
398
Project Financial Control + Reporting:
What is the minimal level or service (steps taken) in producing cash flow forecasts?
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
Quantification + Costing:
What's a Retention of title clause?
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
Project Financial Control + Reporting:
How would you establish a change control strategy in a project?
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
Quantification + Costing:
What would you do if the Contractor submitted 10 Dayworks sheets to you for payment?
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
Quantification + Costing:
'credit' may be a refund offered by MC to Employer. What could this credit be for?
Taking ownership of scrap
e.g. weighing in copper
403
Project Financial Control + Reporting:
Commercial ratios and rates (build costs);
- Overall BUA/ m2
- Residential/ m2
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
Contract Practice:
FIDIC Red 99 - how long to pay Contractor advance payment, following LOA?
42 days
Note:
Sub-Cl. 14.7 payment
405
Contract Practice:
What are the FIDIC 5x Golden Principles?
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
Contract Practice:
What are specified perils?
Re insurance exclusions for
significant events that cause significant damage - fire, explosions, earthquakes, flooding
407
Contract Practice:
What's Time is of essence?
Time limits must be strictly adhered to
E.g. delivering Expo 2020 pavilion in 2022
408
Project Financial Control + Reporting:
What's a stage payment?
pre-agreed amount upon pre-set time, regardless of progress
Good for small projects, or non-QS e.g. Engineer managed
409
Quantification + Costing:
What's a defined PS?
What's an undefined PS?*
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
Contract Practice:
What is target cost contract type/ payment mechanism?
Pain/ gain share from Contract Sum
pain or gain shared between Client and Contractor (on pre-agreed % split)
411
Design Economics + Cost Planning:
Examples of why a project goes over budget?
Incomplete design/ design development
Unrealistic cost plan (Client reduced value)
Client changes
Notes:
- Procurement route
- Variations/poor change control process
412
Design Economics + Cost Planning:
You mention you costed VE proposals at Aecom - example of this?
SOE
Vertical fins were spaced every 1.5m. VE proposal spaced every 2m
413
Contract Practice:
What's concurrent delay?
2+ delays from independent causes overlap
414
Procurement + Tendering:
How can you tell in the BQ if a PS is nominated or domestic?
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
Contract Practice:
What's Law of Contract?
An agreement entered into voluntarily by 2 parties
with consideration (often money)
the terms of that agreement are enforceable
416
Contract Practice:
What are the provisions of the Construction Act 1996 (Housing Grants Construction Regeneration Act 1996)?
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
Construction Tech + Environmental Services:
Type of excavation used on OZ?
Complete
Note:
Complete - Full excavation with side supports/ whaler beams
418
Procurement + Tendering:
What is meant by tender normalisation?
BQ TA adjustments
419
Project Financial Control + Reporting:
What is cost planning?
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
Contract Practice:
What's a % for Performance Bond?
10% of contract sum
Note:
- As with all bonds, paid by bondsman
- Fixed value for contract duration
- Releases funds to appoint another MC
421
Construction Tech + Environmental Services:
What types of concrete are you aware of?
Plain/ordinary
lightweight (blinding)
Reinforced
Pre- and post-stressed
Glass reinforced (GRC)
Green
422
Contract Practice:
What does FIDIC stand for?
international federation of consulting engineers
Note:
Fédération Internationale Des Ingénieurs-Conseils (in French)
423
Quantification + Costing:
What 4 categories are prelims split into on OZ?
demobilisation + mob
time
work (task)
424
Contract Practice:
What's a material breach of contract?
fundamental purpose of the contract was not fulfilled –
defeats the purpose of even having a contract!
Note:
more serious than non-material breach
425
Design Economics + Cost Planning:
What is my current advice to Client's regarding inflation?
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
Quantification + Costing:
For MOS payments - what must you ensure is in place, what checks to make?
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
Procurement + Tendering:
What's a domestic subcontractor?*
Employed directly by MC, on private agreement
Note:
Like OZ
428
Project Financial Control + Reporting:
What is a cost value reconciliation (CVR)?
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
Quantification + Costing:
You advise Client with add and omit exercises. Provide an example of one?
SOE
Replacing GR3 wall paint with adjacent marble
Note:
- Omit paint using subcontract rate
- Add stone using subcontract rate
- Add 5% MCOH+P
430
Contract Practice:
What items are exempt from retention withholdings?
claims
Statutory fees
Notes:
- insurance premiums
- Opening up and testing
431
Design Economics + Cost Planning:
Define a cost analysis?
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
Construction Tech + Environmental Services:
Name some types of brickwork bonds?
Stretcher - most common, half brick thick wall
English - alternate courses of header and stretchers, one brick thick wall
433
Contract Practice:
Is the programme generally considered a Contract Doc?
No
Note:
- Not listed in Priority of Contract Docs
- The completion date is
434
Procurement + Tendering:
In addition to price, what else are tender returns evaluated on?
Technical:
- technical understanding on works
- Relevant experience (Subcontractor's specialism)
- Existing relations/ Past performance
- Resource availability, management skills
- H+S record
435
Contract Practice:
What is condition precedent?
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
Design Economics + Cost Planning:
To cost plan estimate for multi-asset building like OZ?
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
Design Economics + Cost Planning:
How would you estimate prelims in cost plan?
% allowance based on Cost Analysis from other projects
Can adjust for lay down areas, speciality of works
438
Design Economics + Cost Planning:
Name some key project stages listed in RIBA POW 2020?
```
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
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?
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
Project Financial Control + Reporting:
How are project risks addressed/captured in the Cost Report?
Contingencies
EW
Insurances, Guarantees and bonds
Claims
441
Project Financial Control + Reporting:
What would you expect to find in a Contractor Request for Variation?
Narrative,
Cost impact summary
Rate used
Substantiation
Mark-ups
Note:
- we review commercial
- PM review time
442
Project Financial Control + Reporting:
Why would a cash flow be behind the target cash flow?*
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
Project Financial Control + Reporting:
What are the effective cost control measures you are taking in your project?
Regular cost reporting - incl. management of PS
Change control procedure
444
Project Financial Control + Reporting:
How do you capture materials on-site in the cash flow?
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
Project Financial Control + Reporting:
What are the cost reporting protocols and where can you find them?
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
Project Financial Control + Reporting:
How does cost planning influence the cost report?
Overall construction budget
Risk allocated amounts (contingencies)
VE provisions
447
Quantification + Costing:
What is the structure of the POMI BQ?
```
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
Quantification + Costing:
If you advice a client on the types of BQ to use, what would you consider?
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
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?
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
Quantification + Costing:
How would you produce a preliminaries Bill for your BQ?
Refer to POMI - Section A General Requirements
- CoC
- Spec
- Facilities
- Temp works
451
Quantification + Costing:
What are BQ preambles and what is their purpose?
clarifications/ deviations from SMM
give a robust definition to the measurement principles and components of the rates in a BQ
452
Quantification + Costing:
What are the components of a Main Works BQ rate?
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
Procurement + Tendering:
When you perform a tender evaluation, how do you deal with a error in the submission?
As per ITT
- Traditionally, error is corrected
- Employer benefits for cost saving (Tenderer issue if cost increase)
454
Contract Practice:
How would you assess the claim for loss and expense?
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
Construction Tech + Environmental Services:
Differences between porcelain and ceramic tile?
Water absorption
Note:
Porcelain tile - water absorption rate of 0.5% or lower
Ceramic tile - more absorption
456
Quantification + Costing:
A tile has changed from tile A to tile B - how would you amend the tile A BQ rate?
Substitute the material element only
Based on supplier quotes
(assuming all things equal)
457
Quantification + Costing:
What would you find the Preambles?
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
Procurement + Tendering:
For a new unique design, why could you use two-stage tendering?
To ensure the design is buildable, using Contractor's buildability expertise
459
Procurement + Tendering:
What are the 4 different types of OJEU?
Restricted
Open
Competitive negotiation
Competitive dialogue
Note:
- Official Journal of the European Union
- public procurement procedures
460
Contract Practice:
If change contract type from lump sum to remeasure, what would you advise the client of pros and cons?
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)
