Lecture 7

Question 1

Applied resources are the same as soft resources

Answer 1

true

Question 2

Applied resources are resources that are applied by the contractor to different projects

Answer 2

me as contractor will divide my resources according to my priorities on each project

Question 3

Construction projects are cash intensive especially to the contractor that is why he must have good knowledge of cash flow

Answer 3

they are very critical to the contractor because 1)he is allocated the most of the money in a project ( 80 % of the project)
2-) there is a lag of time between when i pay money and when i start making money ( I usualize hire labor mobilize with equipment and start working without getting paid money

Question 4

The profit of the contractor is build in the contractor curve

Answer 4

true

Question 5

the fact there is a delta difference between project expenditure curve and contractor expenditure curve of the means that i start paying money before i start making money (laps on time)

Answer 5

true

Question 6

If i am a contractor and i want ot have the jib i must have at least the difference delta to get the job start

Answer 6

true

Question 7

Every project done by the contractor is at first casj taker then it becomes cash provider

Answer 7

true

Question 8

The difference between the curves is how much money i shall secure as a contractor

Answer 8

true

Question 9

TO deal with the problem of cash

Answer 9

Contractors can postpone their own payment

Ask for advanced payment for the project

Question 10

Idea of retention

Answer 10

Every payment or every request of payment the client will retain a certain amount if the payment ( about 10 percent) for the reason of quality assurance.
When the handover certificate is issued I will give you half of what is retained and the other half of the retained will be given after the defect liability period.

Question 11

Problems faced by the contractor in the cashflow

Answer 11

1-retention
2-lagperiod between start of work and first payment
3- Delay of payment by client especially governments

Question 12

If i dont have enough money to finance my project then i will have to increase my line of credit by debt for example

Answer 12

true

Question 13

I do all this analysis in order to know how much money i need and to to see if i am capable of the job ; also to convince bank for additional credit for example

Answer 13

true

Question 14

Sources for financing the project

Answer 14

1-Sharehoulders equity : things that you have/own (liquid) including money that u use to finance the project
2- loans

Question 15

Now we will talk how projects are organised

Answer 15

true

Question 16

Marinatowers casestudy

Answer 16

Client : Marina towers shareholders
job : develop the project ( it is need , scope, managing the funding, contracting necessary processes) and operate it.
As a client i wont be able to develop whole project alone thus i will hire development management ( they will find the right market, validate market needs,, what facility and how shall i design; set up the program) help the client in the feasability.

ALso the client will hire a project management firm to supervise the project until it becomes a facility
The project maanagement firm is involved in planning but more involoved in construction unlike the development management firm which is more involoved in planning and less involoved in construction

Question 17

Responsibility of the project management firm is to represent the client in issues relalted to cost , time or wuality problems that may affect time and cost
Meaning review 
Progress report
validate the schedule
validate intermittent payment
assist client in bidding phase
assist client in sequence of work
assist client in managing design and construction

Answer 17

true

Question 18

The best companies that can play project management firms are the contractors

Answer 18

Because they are the one who best understand how contractor works(they have construction expertise)

Question 19

the more complex the project is the more entities needed

Answer 19

true

Question 20

Client can be represented by many entities at the same time

Answer 20

like project management and cost consulting controller firm and techniical controlller

Question 21

cost controller firm help in estimating claims made by the contractor

Answer 21

true

Question 22

cost consultants are more finance people than engineers

Answer 22

they double check the cash flow and payments coming from the project management firm

Question 23

technical controller

Answer 23

they are specialized technical firms that do checks on seiemic requirements for example/ u do it for more satisfaction like acquestics in opera house u cant trust the construction company only

Question 24

technical controllers

Answer 24

they are specialized companies that make sure of the liability of the required fuction (special feature of the design) in case if they see an error they just raise a flag

Question 25

technical controllers in design hey need to have access to design

Answer 25

true

Question 26

in construction they need to have access to site

Answer 26

true

Question 27

In marina towers there were two entities doing the design one in the uk and the other in lebanon dar el handasah

Answer 27

true

Question 28

Also in marina towers the client has another representative (in house representativ, they hire every firm and supervise the firm, review the reports coming from project management firms)

Answer 28

true

Question 29

The more complex the project the more entites u have in order to have more checks

Answer 29

true