1001 Questions Flashcards
(163 cards)
1
Q
What is the difference between a profit and loss statement and balance sheet?
A
Profit and loss statement shows the incomes and expenditures of a company and the resulting profit or loss. Balance sheet shows what the company owns (its assets) and what it owes (its liabilities) at a given point in time.
2
Q
What is an S curve?
A
S curve means standard and refers to the shape of expenditure when shown in graphical form. Expenditure is typically low at the start of a project, then increases as the scheme progresses, then slows down at the end.
3
Q
How do you analyse a company’s accounts?
A
- Clients accountant will carry out detailed analysis, but I can look at warning signs by calculating liquidity ratios, gearing ratios etc.
- Can look at Credit rating and on Companies House as well.
4
Q
Why would you not recommend a Contractor with a low credit rating?
A
Increased risk of not performing satisfactorily, Contractor insolvency or not deploying enough resources and materials to the project.
5
Q
What measures would you recommend if your client wanted to appoint a contractor with a low credit rating?
A
- Performance bond or parent company guarantee
- Ensure interim valuations are not over claimed and thoroughly assess them
- Project bank account could be considered
- Enough tender submission not excessively front loaded
6
Q
What is the difference between debtors and creditors?
A
Debtors are companies who owe money to another company.
Creditors are businesses who are owed money from another company.
7
Q
How do companies write a Business Plan?
A
- Analyse the market and identify business opportunities and critical success factors.
- Companies should focus their resource in developing their competencies in critical success factors.
- This leads to development of goals and objectives with their associated strategies and actions.
8
Q
What is a Business Plan?
A
Formal statement of the businesses goals with reasons why they are thought to be attainable and the plan for reaching them.
9
Q
What is contained within an appointment document?
A
- Fee proposal
- Terms and conditions
- Scope of services
- Any amendments to the terms of business
- Contact details
10
Q
What is included in your companies Terms and Conditions?
A
- Duty of care
- Insurances
- Copyright
- Fees and Payments
- Termination and Suspension
- Dispute Resolution
- Limit of liability
- Collateral Warranties
- Contracts Act
- Governing Law and Jurisdiction
11
Q
What is client care?
A
Looking after the Clients best interests and providing a good service to the Client
12
Q
What is a Clients brief?
A
- Provides a firm foundation for the initiation of the project
- Formal statement of the objectives and functional and operational requirements of the finished project
- Should be in sufficient detail to allow the project team to develop the spec and detailed design
13
Q
Provide an example of your client care
A
- I will always make sure the Client feels that there project is priority and complete tasks thoroughly but quickly to meet their needs and timescales
- I ensure I drop onto Client requests when asked and prioritise timescales correctly
14
Q
What makes up a Fee Proposal?
A
- Clients requirements
- Summary of the project/ project issues
- Conditions of engagement
- The proposed fees
- The proposed personnel including any CVs
- Reference to the project programme
- Can be other things included
15
Q
How would you calculate a fee proposal?
A
- Review the work involved based on the level of information available
- Work out who would work on the project, the required number of hours and multiply by the hourly rates for the individuals, adding a suitable allowance for OH&P
- Can also work out based on a percentage of the agreed Contract Sum/ Cost Plan
16
Q
What are the two stages of complaints handling?
A
1 - dealt with by Senior Member of the firm
2 - if not resolved, can refer to independent redress mechanism
17
Q
What are the barriers to effective communication?
A
- Disruptions
- Poor call quality
- Complex language
- Language barriers
- Monotone voice
- Emotionally charged and heated conversations
18
Q
Provide an example of when you had to handle difficult negotiations
A
- Novated civil engineer on a project introduced an increased spec for the highways, to meet the requirements of the Council, which the Contractor had not included for as it was not in the tender drawings/ spec
- The variation for this item was over £300k
- I asked for all drawings/ substantiation and reviewed and got the number down to around £100k, which the Client was willing to pay.
19
Q
Name some forms of ADR
A
- Mediation
- Adjudication
- Negotiation
20
Q
What would your considerations be prior to selecting a form of dispute resolution?
A
- Cost of dispute resolution in proportion to the claim being sought
- Timescales involved
- Impact on business relationships and reputation
21
Q
What is concilliation?
A
- Similar to mediation
- Independent third party aids reaching an agreement
- Conciliator has no authority to seek evidence or call witnesses
- Conciliators not able to make binding decisions
- Primary role to act as a messenger
22
Q
What is mediation?
A
- Impartial third party helps mediate and guide a decision
- Tries to encourage coming together of parties to reach a decision as opposed to conciliation where the conciliator only acts as a messenger
23
Q
What is your most successful negotiation?
A
Granary Final Account
24
Q
What could indicate the success of a negotiation on a final account?
A
- Both parties satisfied with the outcome
- Business relationships can continue
25
What is adjudication?
- Statutory form of dispute resolution in the UK
- Independent third party considers both parties claims
- Binding decision - can be appealed through litigation or arbitration
- Time sensitive - adjudicator has 28 days to resolve the dispute
26
What is arbitration?
- Under the control of the parties
- Must be a genuine dispute or difference between the parties
- Proceedings undertaken in a private setting
- Decision is final and binding
27
What is the difference between arbitration and ligitation?
Arbitration
- Private process
- Must be an agreement to arbitrate by both parties
- Procedures similar to litigation with formal submissions by both parties, expert evidence, hearings and a decision
Litigation
- Public process heard in court
- Deals with multi-party disputes and civil procedure rules
28
What are the benefits of cloud based storage systems?
- Backed up regularly
- Multiple people can access same documents
- Convenient to share files online
- Don't need to keep physical copies - cheaper and more environmentally friendly
- Accessibility can be managed via online settings
29
What is the Data Protection Act?
UK legislation for the implementation of EU General Data Protection Regulations
30
What are the key principles of the Data Protection Act?
- Data only used for purposes intended
- Only stored for the required amount of time
- Used fairly, lawfully and transparently
- Processed securely
31
What are a persons rights under the Data Protection Act?
- Right to access their data at any time
- Right to have their data destroyed
- Right to know how their data is being used/ stored
- Right to have incorrect data updated
32
What are CDM 2015 Regs?
- Construction, design and management regulations
- Intended to ensure health and safety issues are properly considered during a projects developments so the risk of harm is reduced
- Apply to all construction and building work
- Different dutyholders such as Clients, Principal Designer, Principal Contractor
33
What are the implications of CDM Regs?
More focus on clients to put in place arrangements to ensure health and safety
34
What would you expect to find in pre-construction information?
- Project description
- Environmental restrictions and existing on site risks
- Significant design and construction hazards
- Health and Safety File requirements
35
What would you find in a Construction Phase Plan?
- Project description
- Processes for management of works including inductions, training, site rules, emergency procedures
- Arrangements for controlling site risks such as deliveries, working at height, preventing falls, reducing noise, removing asbestos etc
36
What would you find in the H&S file?
- As built drawings
- Residual hazards and how they have been dealt with
- Nature and location of services
- Hazardous materials used
- O&M manuals
37
What is an F10?
- Notifies HSE of the project
- Includes address of site, Contractor details, name of local authority, brief description, start on site and completion date, number of people on site at any one time
38
What does Riddor stand for?
Reporting of injuries diseases and dangerous occurrences regulations
39
What does COSHH stand for?
Control of substances hazardous to health
40
What does CSCS stand for?
Construction skills certification scheme
41
What is your companies Health and Safety policy?
- Each individual responsible for own health and safety
- Report any incidents and ensure they are recorded
- Inform Line Manager when attending site alone
- Have regular training updates on CDM Regs, First Aid, Mental Health Training
- CSCS cards mandatory
42
What is the RICS Surveying Safely publication?
RICS guidance on personal safety at work
43
What is the Health and Safety at Work Act
- Primary piece of legislation that governs H&S in the UK
- Places statutory duty on employers towards their employees i.e., providing and maintaining equipment etc
44
What was agreed at COP 26?
Accelerate the transition towards Net Zero Carbon emissions
45
What are key pieces of legislation that affect sustainability in construction?
- Building Act - conservation of fuel and power
- Climate Climate Act
- Clean Air Act
- Agricultural Land Act
46
What are the different codes of practice for measuring sustainability?
-BREEAM - Building Research Establishment Environmental Assessment Method
-LEED
-SKA ratings - RICS method
47
What is BREEAM?
Sets best practice standards for environmental performance of buildings through specification, design, construction and operation
48
What is an EPC?
- Introduced in 2007
- Legal requirement for buildings to be sold, let or constructed
- Most efficient assets are in Band A
- Scale of A-G
49
What is workplace diversity?
- Acceptance and inclusion of employees of all backgrounds
- Acknowledging the individual strengths of each employee and what they bring
50
What are advantages of a diverse team?
- More productivity
- More creativity
- Positive reputation
- Improved cultural awareness
51
What are inclusive environments?
- Requires mutual respect, effective relationships, clear communication, understanding of expectations and critical self-reflection
- People of all cultural orientations can freely express who they are
52
What legislation or regulations relate to inclusive environments?
- Equality Act
- The Human Rights Act
53
What is meant by unconscious bias?
Assumptions or associations that a person may have about someone solely because of their race, gender or disability
54
What is a wall to floor ratio?
Shows relationship between wall and floor area, the lower it is, the more cost effective it is to construct the building
55
What is a S.106 agreement?
Agreement between local authorities and developers that are negotiated in the context of getting planning consent
56
What is construction to 'shell and core'?
- Basic structure, services and envelope of a building
- Base services are terminated at entry points to each floor plate, however life safety infrastructure usually provided
- Landlord and common areas usually fitted out including toilets, lifts/ stair cores, reception
57
What is a CAT A fit out?
- Known as a developers fit out
- Usually includes suspended ceilings, raised access floors, carpets, basic fittings, lighting and power distribution to floor plates
58
What is a CAT B fit out?
- More specific to the end user to enable them to occupy the scape
- Overlays the CAT A fit out
- Usually includes partitions, bespoke furniture, artwork, floor boxes, upgrading CAT A Finishes
59
What information do you need to carry out an order of cost estimate?
- Location
- Type of building
- Floor area/ number of functional units
- Storey height
- Any initial floor plans
- Site conditions
- Indication of spec/ quality
- Indication of programme
60
What are the principal components of a Cost Plan?
- Construction cost
- Prelims
- OH&P
- Risk
- Inflation
- Exclusions
- Assumptions
- Drawing list
- Area schedule
61
What is usually excluded from a cost estimate?
- Professional Fees
- VAT
- Inflation
- Loose furniture
- Site acquisition costs
- S.106 agreement
62
How is contingency assessed?
- In early stages, can be included as a percentage of cost estimate
- As design develops, can compile a risk register and assign a cost impact against each risk which can form the contingency
- Can also use NRM
63
What time period would Tender Price Inflation be included for?
From the base date (date which rates and prices contained within the cost estimate are based on) to tender return date
64
What do TPIs show?
They reflect changes in the level of tender prices over a period of time, they take into account inflation and market conditions at the time
65
What is the difference between Value Management and Value Engineering?
VM focuses on providing value for the Client, whereas VE is a process to achieve the most cost effective solutions whilst still delivering a quality product
66
What does the term value mean?
Measure of worth taking into account the overall usefulness and benefits that are delivered in relation to the cost being paid for it
67
What are the phases of the VE process?
- Information - Clients objectives
- Speculation - generating ideas
- Evaluation
- Development
- Presentation
68
What are life cycle costs?
Costs that are incurred over a defined period of time including repair, maintenance, replacement, disposal.
69
What costs should be considered in life cycle costing?
- Capital costs
- Operational costs
- Maintenance costs
- Replacement costs
- Disposal costs
70
What is the benefit of a cashflow forecast?
- Allows employer to gain an understanding of the financial requirements over the duration of the project and setup any funding requirements in advance
- Can act as a check against valuations and provide an early sign of financial difficulties
71
What is the purpose of a financial report?
- Report against budget values and act as a cost check on the project budget
- Give Client understanding of any savings or additional monies required
- To report progress against pre-contract predictions
72
What are variations?
Alterations or modifications to the design, quality or quantity of the works
73
Why might variations arise?
- Change to spec
- Discrepancies in contract documents
- Errors or omissions
- Deficiencies in employers requirements
- Discrepancies with statutory requirements
74
When can a Contractor object to a variation?
- If it may affect the efficacy of the CDP
- If it means not complying with CDM
- If it relates to a named specialist who the contractor cannot enter into contract with
75
What can the Architect do if the Contractor does not comply with an instruction?
Can issue a 'notice to comply', if they still don't comply, the Architect can instruct others to complete the works and the Contractor will be liable for additional costs incurred.
76
What are the valuation rules under JCT forms of contract?
- If work is of similar character, quantity and in same conditions, it should be valued based on bill rates
- If work is of similar character, but different quantity or conditions, it should still be based on bill rates but add a fair allowance for change in conditions
- If not similar character, fair rates and prices apply
- If work cannot be measured, dayworks apply
77
What is loss and expense under JCT forms of contract?
- Reimburses Contractor for direct loss and expense incurred in carrying out additional work or from an Employers breach of contract
78
What is the period of assessment by the QS of loss and expense?
28 days from receipt of initial assessment and 14 days of each subsequent update of them
79
What are the common heads in loss and expense claims?
- Prelims
- Overheads
- Disruption
- Loss of profit
- Acceleration costs
- Claim preparation costs
80
Why were NRM introduced?
- Replaced SMM7 which was more based on producing BoQs
- Provide more common and consistent basis for producing order of cost estimates and cost plans
81
What does GIA not include?
- Open sided balconies
- Fire escapes
- External walls
- Canopies
82
Where are GIA, NIA, GEA etc defined?
Code of Measuring Practice by the RICS
83
How do you measure structural steelwork under NRM2?
- Measured in lengths and converted to tonnes using their weight (kg/m)
- Other items to measure include fittings, surface preparation, surface treatment, protective coatings
84
What is galvanised steel?
Regular steel sheets that have been coated in zinc to make them corrosion resistant
85
What are Preliminaries?
Items of work required to facilitate construction but do not form part of the permanent works, can include site set up, staff, temporary supplies, insurances etc
86
What is a Provisional Sum?
Allowance included for works where the extent and design of the works is not yet known meaning the cost cannot be established at the time of agreeing the contract.
87
Difference between a Defined and Undefined Provisional Sum
Defined - cannot be accurately measured but there is enough information about the nature, location, programme, quantity of the works to allow planning, programming and pricing of Prelims to take place.
Undefined - insufficient information, Contractor entitled to EoT and additional Prelims.
88
89
How do you measure cut and fill?
- Obtain existing and proposed levels drawings
- Divide area of excavation into a grid and interpolate the levels on the grid to establish an average existing and average proposed level
- This would determine which area was in cut and which was in fill
90
What is a Preamble?
- Explanation of a document that is usually found in specifications, BoQ's, contracts.
- Can help with interpretation of document
- Includes description of the parties and background to the document
91
What are the Building Regulations?
Statutory instruments that set out the minimum performance standards for design and construction of buildings, supported by Approved Documents.
92
What are British Standards?
Publications issued by British Standards Institution, giving recommended minimum standards for materials, components, design and construction practices
93
What is the difference between superstructure and substructure
Substructure are all items of works below the damp proof course, whereas substructure are all external and internal elements above the damp proof course, such as external walls, internal walls, finishes.
94
What are temporary works?
Not normally shown on construction drawings but may be required based on methodology or for health and safety purposes e.g. temporary propping
95
What are the main components of concrete?
Cement, aggregate and water
96
What are the 3 main methods of waterproofing a basement?
Monolithic concrete - waterproof concrete
Drained cavity
Tanking
97
What are the advantages and disadvantages of steel frames?
Advantages -
- Quicker to assemble
- High quality
- Do not expand or contract in changes of moisture and temperature
- Non-combustible
- Lighter - cheaper foundation solution
Disadvantages -
- Can be subject to price fluctuations
- Require skilled workers
- Fire protection needs to be retrospectively installed
98
What are the advantages and disadvantages of concrete frames?
Advantages -
- Already provide fire protection
- Good sound and heat insulation properties
Disadvantages -
- Take longer to erect
- Price fluctuations due to reinforcement
- Heavier - larger foundation solutions
99
What are the common components in a steel frame construction?
- Columns
- Beams
- Base plates
- Purlins
- Rafters
- Eaves
- Fixings
- Cross bracings
- Cladding rails
100
What is intumescent paint?
Fire resistant paint
101
What is the size of a brick?
215 x 102.5 x 65mm
102
How many bricks are in a m2?
60
103
What are the different types of brick bond?
- Stretcher
- English
104
What factors may affect the choice of materials for internal partitions?
- Sound
- Fire ratings
- Aesthetics
- Fixed or moveable
- Strength
105
What is an MF ceiling?
Mineral fibre plasterboard ceiling
106
What are automatic fire sprinklers?
Individually heat activated and tied into a network of piping with water under pressure. When activated with heat, the sprinkler near the source of heat will be released, releasing water.
107
What does VRF stand for?
Variable refrigerant flow
108
What needs to be in place to pay for materials on site?
- Protected
- Delivered to programme
- Reasonable quantity
109
What needs to be in place to pay for materials off site?
- Vesting certificate
- Needs to be labelled for the site and set apart from other materials
- Insurance until materials arrive to site
110
Are interim payment certs conclusive?
No - not conclusive until final certificate is issued
111
What is retention?
Percentage deducted by the employer from each interim payment to the contractor
112
What are collateral warranties?
Create contractual relationships between the main parties of a contract and an external third party
113
Why are collateral warranties used?
To give third parties contractual resource / remedies to make a claim
114
What are different types of collateral warranties?
For funders or for purchasers and tenants
115
What is assignment?
Where the rights and benefits of one contractual party are transferred to a third party
116
What is the difference between novation and assignment?
Novation is where a new contract transfers the rights and obligations of one contractual party to a third party, whereas assignment involves transfer of obligations or benefits but not burdens
117
What is reasonable skill and care?
The ordinary skill and care expected of an ordinary competent man carrying out that particular service
118
What is fitness for purpose?
Provision of a service that is suitable for the Employer's intended purpose
119
What is a Parent Company Guarantee?
Where the contractual performance of one company in a corporate company is underwritten by other members of that corporate group, meaning it must complete the works itself or pay the financial equivalent
120
What are performance bonds?
Typically provided by banks or insurance companies. They give the Employer a guarantee of payment up to a maximum in the event they suffer a loss as a result of a Contractor breach.
121
What does joint names mean?
Where the employer and contractor are insured under the same policy
122
What must an LOI have to be legally binding?
Offer, acceptance, consideration and intention to create legal relations
123
When are LOI's used?
- To enable a quicker start on site
- When Contract discussions are ongoing
- Can be used to instruct initial design or survey works or procurement of materials on a tight programme
124
What are the main procurement methods?
- Traditional
- D&B
- Management Contracting
- Construction Management
125
When might Traditional procurement be appropriate?
- Design sufficiently developed
- Client wishes to retain control over design and spec
- Shortest programme not client's main priority
- Cost certainty at start on site
126
Advantages and disadvantages of Traditional procurement
Advantages -
- Cost certainty
- Higher quality
- Design changes easy to arrange
Disadvantages -
- Overall project duration longer
- Dual point of responsibility for design and construction
- No Contractor input into design
127
When might D&B be appropriate?
- Earlier start on site
- Client wishes to minimise risk
- Technically complex projects requiring Contractors expertise
- Employer does not want to retain control over design
128
Advantages and disadvantages of D&B
Advantages -
- Single point of responsibility for design and construction
- Earlier start on site
- Early price certainty increased
- Client can benefit from Contractor's expertise
Disadvantages -
- Client may find it hard to prepare comprehensive brief
- Have to commit to concept design early
- Harder to determine whether value for money is achieved
129
What is management contracting?
- Employer appoints management contractor who has direct contractual links with all the trade contractors
- Management contractor has responsibility for the works without actually carrying any works out
- Client pays management fee for them to carry this out
130
Advantages and disadvantages of Management Contracting?
Advantages -
- Early start on site
- Contractor contribution to design and planning
- Competitive prices on packages
- Variations can be accommodated in packages not yet let
Disadvantages -
- Price for works not received until last package let
- Changes to design of later packages may affect packages already let
131
What is construction management?
Employer places direct contract with each of the trade contractors and utilises the expertise of a construction manager who acts as a consultant to coordinate the works
132
What is the difference between Management Contracting and Construction Management
Management contracting - contractual link is between management contractor and works contractors whereas in construction management, contractual link is between employer and trade contractors.
133
What are the advantages and disadvantages of Construction Management?
Advantages -
- Overall project duration shorter
- Changes in design can be accommodated
- Construction manager can contribute to design and planning
Disadvantages -
- Price certainty not achieve till last trade package let
- Changes may affect packages already let
- Client needs to be proactive and hands on
134
What is project partnering?
- All members of the professional team become involved in the partnering process including contractors
- Ownership of risk is spread between all parties
135
What is tendering?
Structured procedure for generating quotations from suppliers or contractors looking to obtain an award of business activity either through competitive process or negotiation
136
What are the main methods of tendering?
- Open
- Selective - single or two stage
- Negotiation
- Serial
137
What is single stage tendering?
Structured process of receiving competitive tenders from a number of pre-selected capable contractors
138
What is two stage tendering?
Where the Client seeks to appoint the Contractor based on an outline scope of work that is not fully defined. The Client then works with the appointed Contractor to develop the scope and agree a price.
139
What do tenderers return as part of the first stage?
- Prelims breakdown
- OH&P percentage
- Construction programme
- Price for assisting Client with design development during Stage 2
- Proposed subletting of the works
140
Advantages and disadvantages of two stage tendering
Advantages -
- Buildability / expertise of Contractor
- Earlier start on site
Disadvantages -
- Additional pre-construction fees incurred
- May not reach agreed price, Contractor may increase costs and take advantage
141
What would be included in a set of tender documents?
- Invitation to tender
- Instructions to tenderers
- Pricing document
- Drawings
- Specifications
- Proposed Contract conditions
- ER's
- PCI
- Form of tender
142
What would you include in a Pre-Qualification Questionnaire?
- Company turnover
- Previous relevant experience and references
- Company accounts
- Management and organisational structure
- Health and safety records
- Quality systems and environmental policy
- Provision of bonds, PCGs and warranties
143
What is a named Subcontractor?
Client provides the Contractor with a choice of named Subcontractors for a portion of the works, once appointed they become a Domestic Subcontractor.
144
What are domestic Subcontractors?
Standard appointment of a Subcontractor by the Main Contractor.
145
What are nominated Subcontractors?
Selection of a particular Subcontractor to carry out the works.
146
What is the difference between JCT and NEC?
NEC applies to civil engineering and building projects whereas JCT only applies to building projects.
147
What are latent defects?
Not readily identifiable upon inspection and only come to fruition some time after completion, may take years to become noticeable. A claim for these can be brought against within the limitation period of the contract.
148
What are the options for works not in accordance with the Contract?
- Instruct to remove works
- Notify in writing works can remain but an appropriate deduction will be made to the contract sum
- Issues instructions for variations that are necessary as a result of the work
- Instruct Contractor to open up and test the work
149
What is a provisional sum?
A sum of money included in the Contract for works that cannot be fully designed and costed at the time of contract sum agreement
150
What are the main sections of a JCT contract?
- Articles
- Recitals
- Contract Particulars
- Conditions
- Attestation
- Schedules
151
When would you use JCT Minor Works?
- Short duration projects with small scope and straight forward construction
- JCT guidance is up to £200k in value
152
When would you use an intermediate JCT?
Similar to Minor Works, guidance is up to a year in duration
153
What is the difference between Schedule of Rates and BoQ?
Schedule of Rates - Contractors risk for quantity and rates
BoQ - Employers risk for quants, Contractors risk for rates
154
What would you include for when pricing an EoT?
- Site cabins
- Welfare
- Staff / management costs
- Utilities
- Head office
- Loss of profit
- Finance charges
155
Advantages of JCT contracts
- Cover most forms of procurement and building types
- Comprehensive in detail and considered fair and reasonable
- Considered industry standard
156
Disadvantages of JCT contracts
- Sometimes thought to compromise conditions in which they try to satisfy interests of all parties
- Can be considered unnecessarily long / complex
157
How do you carry out risk analysis / risk management?
- Risk management workshops
- Risk registers
158
What is risk defined as?
An uncertain event that will have an effect on project outcomes if it occurs.
159
What are the stages of Risk Management?
- Identification
- Analysis
- Response
- Monitor / control
160
What does a risk register normally include?
- Description of the risk
- Probability
- Impact
- Risk score
- Risk owner
- Actions
- Review date
- Status (open or closed)
161
What are some methods of risk analysis?
- Monte carlo - computer simulated risk analysis that models outcomes-
- Decision trees - calculate total risk based on series of related risks
- Estimated monetary value - probability of risk occurring multiplied by its impact
162
What types of risk response are there?
- Avoidance
- Reduction
- Retention
- Transfer
163
