Week 1: Introduction, Project Delivery and Procurement

Question 1

What is a Contract?

Answer 1

Promise:
- between capable parties
- creates obligation
- enforceable by law
Dispute hearing:
- is it a contract?
- if so, what is the exact meaning of the wording

Question 2

Types of Laws

Answer 2

Public Law:
- Criminal law
- Revenue and taxation law
Private Law:
- Contract law
- Law of tort (Happiness)
International Law

Question 3

What is the purpose of Building Act

Answer 3

• Performance Standard
• Safe
• Evacuation
• Sustainable

Question 4

What is the purpose of CPEng

Answer 4

Mark of Quality
Registered System
Code of ethics, disciplinary

Question 5

what is the purpose of Contracts

Answer 5

Protection
Fair and balanced
fast and effective dispute resolution
enforcement

Question 6

what is Privity of Contract

Answer 6

The relation between two contracting parties - only the person who is a party of the contract can sue on it

Question 7

what are the 2 forms of contract

Answer 7

Contract

Deed - Covenant

Question 8

Contract elements

Answer 8

Offer
acceptance
consideration
capacity
legality
intention to be bound
consent

Question 9

what is an offer

Answer 9

a promise
expressed or implied
intend to be in a binding obligation
time dependency
revocable

Question 10

what are offer revocations

Answer 10

withdraw before acceptance
Scheduled revocation “Good until”
Offer revoked by counter-offer

Question 11

what is a Quote

Answer 11

an offer to do the job, quoting person is bound by the offer

should include: work type, dates, rates and costs.

Question 12

How do you accept an offer

Answer 12

Formal notification
placing an order
standard of industry
reliance
tacit acceptance

Question 13

what does Capacity mean in terms of contract law

Answer 13

whether the person have ability to enter contracts
- age
- unintoxicated

Question 14

reality of Consent

Answer 14

Mistake - e.g. wrong calculation (common practise is to accept)

Misrepresentation
Duress

Question 15

Tender qualities

Answer 15

Responsive: All terms are met

Responsible: meets the requirements to submit offer

Question 16

types of Delivery Methods

Answer 16

Negotiated
DBB
Design and construct
Project Manager Agent
Alliances
PPP

Question 17

DBB Design-bid-build (traditional) method?

Answer 17

3 Linear Phases
3 Primary Players
2 Contracts

designer - qualification
GC - lowest bid

Question 18

PMA (project manager agent)

Answer 18

3 Linear phases
4 Primary players
3 Contracts (all with owner)

PM - qualification
A/E - qualification
GC - lowest bid

Question 19

(Design-build) method

Answer 19

2 continuous phases
2 primary players (owner - db)
1 contract (owner - db)

DB - qualifications/low bid

Question 20

Alliance

Answer 20

major contractors and consultants become stakeholders.
form a group of innovation and cooperation to manage the project.

Question 21

PPP (Public-Private-Partnership)

Answer 21

Large scale
Long duration
complex
-output focused
-private expertise required
-asset delivery
- high maintenance requirements
-risk transfer
-opportunity for innovation
-value for money

Question 22

Define:

Practical completion

Provisional sum

Prime cost amount

Answer 22

Practical Completion:
when all building work is completed
Provisional sum: sum that can be used when there is not enough detail to set a fixed price
Prime cost amount:
the estimated cost that can be adjusted later

Question 23

Guaranteed maximum price (GMP)

Answer 23

A Principal shares in cost savings
Contractor will not be paid more if it is in excess of the GMP

Question 24

bonds

Answer 24

a guarantee that the terms of a contract are met. If the contractor fails to met the conditions, the owner can claim the bond to recover financial losses

Question 25

retention

Answer 25

amount withheld by Party A to a contract as security for the performance Party B

Question 26

risks of using subcontractors

Answer 26

if the sub behind on schedule, it will result in an extension of the project time for the contractor