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HI - APC > Case Study - Key issue 1 > Flashcards

Case Study - Key issue 1 Flashcards

1
Q

What happens at sectional completion in the NEC

A

It is agreed in option Optional clause X5 sectional completion

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2
Q

How are cashflows produced?

A

with the contractor and reviewed agaisnt programme

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3
Q

How do you check the robustness of a contractors QS

A

Check the programme against the cashflow and see how the activities align with the costs

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4
Q

How did you review the contractors application

A

Applicaiton is actual costs to date, so I reviewed the subcontractor applications to ensure they had only included for completed works.

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5
Q

what is included wihtin a contractors application

A

Timesheet, site cabins, Plant and Materials, Fee & insurances

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6
Q

What is the Change control process on the NEC

A

EWN, PMI, CEs

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7
Q

What the benefits of using option C for Glangwili

A

Target cost contract, Pain gain mechanism to encourage the contractor to reduce spend

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8
Q

What are the negatives of using option C for Glangwili

A

Do not have the cost certainty of a Option A/B

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9
Q

Why was option C selected?

A

Project was part of the Welsh Health Estates frameworks, and Opiton C was the chosen Contract as part of this framework

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10
Q

Would you have suggested a different NEC contract Option

A

Potentially option A - Price contract, however I as the project was not fully designed, option C encourages the contractor to look into options to reduce costs

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11
Q

What measures were undertaken to achieve expenditure

A

Monthly reproting and cost contact with the Client financial team to keep costs low

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12
Q

How long does an EWN last

A

8 weeks

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13
Q

What are X clause

A

Optional clause to include into the contract

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14
Q

What are Z clause?

A

Secondary option clauses, which can be specifically written into the contract

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15
Q

How does a Contractor produce a compensation event

A

The can issue a NCE if the issue has raised in the past 8 weeks, PM has 2 weeks to review and then the contractor has 3 weeks to issue a CEQ and the contractor has 2 weeks to reposd to the CE

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16
Q

How long was site closed for?

A

Initally the site was only closed for a few days

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17
Q

In the NEC what are the provisions for closing a site

A

Contractor issued a EWN explaining of the situation

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18
Q

How do you suspend works in the NEC

A

Clause 91 within the contract talks about terminitation table

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19
Q

What activities would not be able to be carried out concurrently

A

laying the vinyl floor, this had to be carried out on the weekend.

20
Q

How is Option X5 worked into the contract?

A

Included within the Contract Data, with a brief description of the works and the completion date

21
Q

Would this not be a compensation event under 60.1(19) event that stops the contractor from completing get works?

A

This clause had been removed as part of the amended version of this contract

22
Q

How would you stopping works on the NEC contract?

A
  • Under the NEC the contractor has an obligation to achieve completion by the completion date as per clause 30.1
  • Clause 19.1 Prevention instruction to stop work would be a compensation Event 60.1(4)
  • Contract would be entitled to a delay under this as the works have been stopped
23
Q

Health and safety question on working on-site with COVID-19?

A

Site must be safe for employees to work, as work was allowed to continue as long as COVID measure was in place. Contractor has to make work environment safe for team

24
Q

Why would stop all construction work be an option if the client needed to spend his budget?

A
  • Client had target spend to achieve, but not to waste money in spend.
  • The costs to stop works and start again 12 weeks later as per government guidance could be a cheaper and better solution then making cost amendments to make site “covid secure”
25
How do you produce cashflow
Work with the contractor, work through subcontract packages along with the programme to understand costs
26
what are the NEC timescales for change control
- 8 weeks from the event - Contractor issues Compensation event - 1 week for the PM to respond If pm fails to respond the contractor must notify) - PM instructs Contractor to issue Quotation - 3 weeks for Contractor to submit quotation - 2 weeks for PM to respond - PM asks for revised quotation – Contractor has 3 weeks to resubmit - PM could refuse - PM could make assessment, 3 weeks for PM to make an assessment
27
What is an activity schedule?
Activity Schedule is a list of activities prepared by the contactor which he expects to carry in providing the works.
28
Who produced the activity schedule?
I was not present at the tender stage of this project. My understanding is that it was the client and the contractor added to the activity schedule at the tender stage
29
What is the build-up to the total of the prices?
The total of the prices is the priced activity schedule plus any compensation events
30
What is the defined cost?
The price of work done today
31
What is a disallowed cost?
Costs which the contractor has occurred but which the client does not have to pay.
32
Would it have been easier to use option D target cost with BQ
Option D is a BQ and therefore does not have an activity schedule, it is set works. Not an option as the project design was not fully complete before going to tender therefore an activity schedule was the best option.
33
Would it have been easier to use option A
I was not present at the tender stage, option Price Activity schedule lump sum would have protected the client. However, the cap on pain for the client does a similar job. Option C allows for the contractor to suggest value engineering options to reduce the Defined cost.
34
Difference between NEC3 & 4
Terminology – Employer becomes client, Works information = scope Early warnings – Risk register is now early warning register Payments – Contractor must issue applications instead of PM being obliged to assess if they don’t
35
What are valuations called on the NEC?
Total of prices to date
36
What is included in the Total of prices to date on the Glangwili project?
People costs – Contractor staff costs & Supply chain Equipment costs – Accommodation & storage Plant & material – Working Area Overheads – FEE - Insurance -
37
What is working area overheads?
A percentage added to the people costs which covers the Overheads required to complete a job Examples are small tool, paper and printer ink.
38
How do you assess the application during COVID?
- Request site photographs and a narrative from the contractor of the works to date - The client also issued a report of the works to date with photos - review the subcontractor’s application and ensure it is only for the works that have been complete (actual costs) - Review the contractor's timesheets and plant and material invoices
39
Was your assessment of the application correct?
- The assessment was issued with a caveat explaining the lengths I have gone to, to overcome the issue of not being able to visit the site. This was agreed with the client.
40
Did the team succeed in meeting the required expenditure?
Yes, we did achieve this, in September WG allowed the client to amend the required expenditure following the COVID issue.
41
What are the benefits of Option C over the other options
Encourage the contractor to look into Value Engineering options to reduce the defined costs through Pain & gain mechanisms
42
Your project is based on the Welsh Health Estates Framework, how is a framework set up
A framework is a number of contractors & consultants sign up to a frame
43
Clause X2.1 (change in the law) is this applicable to all NEC contracts?
No X2 is an optional clause, which is selected at the contract stage
44
Was the CE they applied for both time and money
Yes, there was an additional 20 weeks after as well as money
45
Options A & B talk about how you would not achieve the financial spending required for the year, was an advanced payment considered?
Advanced payments have been considered but the client do not like them as they have been promised but not delivered on in the past
46
Who ended up taking the brunt of these COVID costs
Welsh Government confirmed that any COVID related compensation events would be funded by the client who would be reimbursed by WG.

HI - APC (9 decks)

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