Case Study Questions Flashcards
1
Q
Why did you choose a design and build contract for the Link Bridge?
A
- Demolition of the link bridge could begin whilst the façade design was still being finalised.
- Harness the contractor experience of similar projects and input of buildability into the design.
- As the employer’s requirements were to match the existing façade, there was no real need for ownership of the design as enacted in traditional procurement. During the PCSA period, stone, aluminium and glass samples were reviewed on site by the client architect prior to sign-off.
2
Q
Why did you choose a two-stage procurement route for the Link Bridge?
A
- Demolition of the link bridge could begin whilst the façade design was still being finalised. If a single stage route was used, a complete design would typically be in place prior to works starting on site.
- Unattractive project to the market, and the high costs associated with single stage may have deterred contractors from bidding for the works. Therefore, to ensure my client had suitable competition in the tender stage, two stage seemed the most suitable option
3
Q
What other contracts could have been used? Why wasn’t a management contract used?
A
Design would be the responsibility of the client, and I wanted to protect my clients interests by harnessing the experience of the contractor into the design. It is not simply the benefits of stick vs unitised, by how methodologies such as scaffold hoists, internal waste routes, cranes etc affect the live building.
In addition, the JCT PCSA is only intended for use with the D&B, standard, major projects and intermediate contracts.
4
Q
Key pros and cons of stick vs unitised?
A
- Stick – large amounts of onsite cutting – noise disturbance
- Unitised – longer period off site but shorter period on site.
- Stick system is more affected by weather conditions.
- A stick system is more malleable to the conditions on site, and can be more easily adjusted.
- However, using a top tier contractor such as Permasteelisa, the design liability sits with them, therefore my key concern is the operation of the building.
- Little appetite for stick system – only Schneider provided a return.
5
Q
Did you undertake any normalisation at tender?
A
From a programme perspective, we provided a target practical completion date, in which all tenderers provided compliant programmes.
6
Q
How would you ensure parity amongst tender returns?
A
Although all programmers could be compliant, some may have greater periods off site and therefore less disruption, some may have inherently higher prelim costs such as using a crane. If all tenders bid on a set methodology, parity of analysis could be achieved, but optimal solutions could be proposed as a second option.
7
Q
What are the components of a PCSA?
A
- The PCSA document
- Project particulars
- Scope of services
- Cost plan
- Programme
- Draft building contract
- First stage tender documents
8
Q
Why use a PCSA?
A
- Allows instructions and early orders.
- Contactor input for buildability and design.
- Greater understanding of programme and cost prior to signing the main contract;.
9
Q
Why use a PCSA over an LOI?
A
An employer may need to involve a contractor in a project before it is ready to sign a building contract. This is sometimes generically known as early contractor involvement (ECI). Two common types of agreement between an employer and a contractor in these circumstances are a letter of intent and a pre-construction services agreement (PCSA).
- When using an LOI, this is typically when the design is mostly settled, and the employer/contractor are negotiating the final terms. A well drafted letter of intent can provide a legal framework for the contractor to begin work.
- For PCSA, this is when the employer wishes for the contractor to provide design, programme and buildability input prior to entering into the main contract (therefore the design isn’t fully developed). The PCSA allows early orders to be placed for long-lead items etc.
10
Q
What is the difference between a letter of intent and a comfort letter?
A
- A comfort letter is a non-binding statement of the future intention to enter into a contractual agreement, whereas a well drafted letter of intent can act as an interim contract.
11
Q
What part of the contract were the stand down days detailed in?
A
Schedule of Amendments
12
Q
What was the weighting of tender analysis?
A
60% commercial 40% technical
13
Q
Give me examples of the components of tender analysis
A
- Tender recommendation report
- Prelims and OH&P, main works, BAFO, tender queries, technical response, in line with TFOG
14
Q
JCT and change control – how was the change in scope instructed (as PCSA – allows instructions)?
A
- This was instructed using the change control procedure
- The JCT document makes a provision for Employer’s Instructions, but does not define a process for change control.
- On my projects, I use smartsheet for change control. Firstly the client will raise a change for example, and this will be distributed to the relevant designers/contractor (if traditional) or straight to the contractor if D&B. This is essentially a feasibility study for cost/programme/design impact, which is then presented to the client to make a formal decision. AThe Arcadis change control procedure seeks to implement changes 2 weeks after they have been raised.
15
Q
What PCSA document was used?
A
JCT PCSA 2016
16
Q
How do you run an inclusive meeting?
A
- Sending an agenda prior and
- Ensure everyone has a voice – Teams good – in person
- Clear next steps and action owners
- Opportunities for everyone to add further points
- Challenge poor behaviour
- Ask to mute mics with background noise
17
Q
What were the key objectives?
A
- Remove link bridge and reinstate the façade to match the existing – quality
- Minimise disruption to client building
- Following this – programme and cost
18
Q
How were the options in your case study presented?
A
formal paper as part of my weekly client meeting
19
Q
How did you create the stakeholder map?
A
liaised with colleagues that were already working within the building, discussed with my client who were the key business leaders on each floor, and the more obvious stakeholders such as H&S and security. – Regularly reviewed and updated stakeholder map.
20
Q
What is your role under CDM?
A
Advise my client and make them aware of their duties.
CDM Client duties:
- Appoint a Principal Contractor and Principal Designer
- Allowing sufficient time and resource for each stage of the project
- Ensure that the PD/PC carry out their duties under CDM
- Ensure that the appropriate documentation is in place and provided (PCI, CPP, H&S File)
- For notifiable projects (last longer than working 30 days and involves more than 20 workers at any one time, or the work exceeds 500 individual worker days), the client must notify the HSE through an F10 notification form
21
Q
How would you prioritise stakeholders on your project?
A
following a stakeholder mapping exercise, understand who will have the most influence. If high, regular communication, keep them informed and understand their needs and individual requirements (site visits, reports etc).
22
Q
Components of stakeholder management plan?
A
- Stakeholder map
- Stakeholder influence
- Strategy for individual stakeholders
- Regularly update and review
23
Q
How would you deal with tender errors?
A
nder the JCT Tendering Practice Note 2017, there is alternative 1 and alternative 2. Alternative 1 is where the correction of the tender price is not permitted, and alternative 2 is where the correction of the tender price is permitted. The tenderer must be made aware of the error, and confirm or withdraw under Alternative 1. Under Alternative 2, they can confirm/withdraw, or have the opportunity to amend. If withdrawn, the endorsement should be signed by both parties, if amended under Alternative 2, a letter should be attached to the tender acceptance.
24
Q
Examples of project finance?
A
- Issuing payment certificates
- Value engineering
- Programme and resource – prolongation fees
- Timesheets and billability
- Being aware of my own scope on a project
25
Why was the change in methodology a client risk?
– Client updated ERs to reflect requirements for noise
26
Can you issue an EoT under a PCSA?
No.
27
What is the difference between single stage and two stage?
- Single stage – fully developed design at tender (sufficiently developed ERs if design portion)
- Two-stage – contractor input to complete full design (ERs not sufficiently developed if design portion)
28
Why did you choose JCT over NEC?
Client preference, industry standard, although NEC could have also been used.
29
Why use a collateral warranty?
Sue for professional negligence due to a latent defect for example. Secondly, it provides step in rights if the main contractor was to go bust for example.
30
What are step in rights?
. In relation to construction and property development, a collateral warranty or schedule of third party rights may include a right for the beneficiary of the collateral warranty to step in and take over the developer's rights as employer of a building contractor or a professional consultant, if the developer commits a serious and unremedied breach of the building contract or the professional appointment
31
What is the difference between a collateral warranty and Third Party Rights?
? Essentially no difference, they both provide security to third parties to a contract for professional negligence, latent defects and step in rights for example. However, Third Party Rights are detailed in the contract, and a collateral warranty is a separate document. There may be a preference for a collateral warranty as a client legal team may draft it for inclusion within the contract, and therefore have more preferable wording specific to the client.
32
What is a schedule of amendments?
A schedule whereby the parties agree to deviations from the standard form. As the JCT is drafted to be equal to both parties, these amendments are likely to benefit one party over another.
33
What Data Management legislation are you aware of?
- Data Protection Act 2018
- General Data Protection Regulations 2018
o Data is used fairly, lawfully and transparently
o Used for specified, explicit purposes
o Accurate and up to date
o Kept for no longer than necessary
o Handled in an appropriate way that ensures security
34
How do you manage data on your projects?
- Within Arcadis, we have the information sharing rules, which define the requirement for using public, internal, confidential and restricted data. These requirements include actions such as access, storage, printing, transmitting and disposal.
- On my Aviva project, the professional team were under an NDA until the works started on site. This meant that thew information was classified as confidential/restricted, and could only be shared with those detailed under the NDA.
- Responsibility of project manager to ensure that access to filing system is up to date, and data is not being stored for longer than its intended period.
35
How are EOTs dealt with under JCT?
- The contractor is required to notify the CA/EA when it becomes reasonably apparent that the progress of the works is, or is likely to be, delayed by a relevant event and/or a relevant matter.
- The CA/EA should then make a fair and reasonable assessment of the extension of time request.
- If an agreement can’t be made and a dispute arises – dispute resolution procedure.
36
What is a relevant matter?
– contractor can claim loss-expense from an event caused by the client:
- Failure to give possession to site
- Inaccurate information
- Delays receiving instruction
- Issues around CDM etc
37
What is a Relevant Event?
– allows contractor to claim an extension of time – caused by the client or a neutral event.
- Exceptionally adverse weather
- Terrorism
- Failure to provide information.
38
What are Relevant Events/Matters under NEC?
compensation events.
39
What is the cost to a designer for causing a delay?
Under SBC, generally considered a client risk. Although a consultant may put a percentage of their fee against a KPI. For D&B, contractor risk. If PC date affected, Client able to claim LADs.
40
Name some elements of the SoA (Schedule of Amendments)
- 7 Stand down days
- 12 months rectification period (so all seasons experienced)
- 5% retention instead of 3%. Greater motivation for the contractor to deliver on time, and protects client in the event of the contractor going bust, in terms of the cost of appointing a new contractor.
Change control procedure.
41
What would be an alternative to revised methodology at tender stage?
Early noise monitoring and define noise levels within contract.
42
What leadership theories are you aware of?
- Tuckman's model of team development
- Maslow's hierarchy of needs.
- Democratic, authoritarian, lasses fair leadership.
43
What is the difference between hard and soft skills?
Hard skills are education, technical, training etc. Whereas soft skills are personality traits and interpersonal.
Importance of reinforcing informal communication through formal channels.
44
What is Tuckman's model of team performance?
- Forming
- Storming
- Norming
- Performing
- Adjourning
45
What human resource legislation are you aware of?
The Equality Act 2010 - projects people from discrimination in the workplace and in wider society.
46
Give some examples of measuring team performance.
- Hitting programme targets
- Accurate cost estimates throughout design and construction
- Team GPS
- Client feedback
- Consultant KPIs
- On site sustainability with contractor.
47
Why did you not use Section Completion?
Due to the construction methodology (unitised system), if SC was awarded floor by floor with the demolition, the facade would not actually be finished (only weather screen in place), as the whole bridge was removed prior to the unitised facade install.
In hindsight, I should have included a provision within the SoA for written approval prior to moving to the next floor.
48
Is there a provision for step in rights within the Rights of Third Parties Act?
No, but there is with a collateral warranty.
49
Why did you not novate the design team?
The keep them in an advisory capacity to check the works of the contractor, thus protecting my client's interests from a quality perspective.
50
What are the different types of float?
Under JCT - free float and total float. Under NEC, time risk allowance and terminal float.
51
In your experience, what are the key differences between residential and commercial construction?
- Stakeholder management for tenants
- Time requirements for commissioning
- Focus on M&E systems
52
How many people should be accountable within a RACI matrix?
One.
53
How long was the programme increased by?
8 weeks.
54
Which stakeholders did you have to manage with the additional timeframes?
- CWG for licenses
- Comms for stakeholders and notifying the floors that will be worked on.
- Profressional fees prolongation
- Updated F10
- Additional funding from client.
55
What is the role of the project manager?
to be the central point of contact for a project, and coordinate the necessary stakeholders to ensure that a project is delivered on time, on budget, and meet the desired level of quality.
56
What is a project management plan?
A broad and high level document that guides the project and informs stakeholders how the project will be managed.
57
What is a project execution plan?
A detailed document defining exactly how the project will be delivered through each stage.
58
When might a project deviate from the normal stages?
- Early use
- early orders
- prolongation etc
59
How do you manage data on your projects?
Arcadis have the Information Sharing Rules, which define how public, internal, confidential and restricted data should be handled. This is in line with the 2018 General Data Protection Regulations.
Example - Aviva NDA, access to system, only held for required period of time, training and awareness for all employees.
60
Who is responsible for generating the project brief?
The client, but the PM typically assists.
61
What is included within a feasibility study?
- Details of the proposed work
- Performance requirements
- Constraints and assumptions
- Value
- Risks and opportunities
Feedback options to client.
62
When does the Construction Act become applicable to construction contracts?
For contracts over 45 days.
63
What insurance were in place for the works?
Insurance option C under JCT, where the employer takes out an all risks insurance policy for the works and for the existing building. The contractor would also have public liability and professional indemnity insurance in place.
64
What is all risks insurance?
An insurance policy that covers all risk such as loss or damage, fire, theft, terrorism etc.
65
What is professional indemnity insurance?
A insurance that covers an entity in the event of professional negligence.
66
What is public liability insurance?
Insurance that covers a business from third party claims for injury or property damage as a result of their operations.
67
How is data managed on your projects?
Information sharing rules - public, internal, confidential and restricted. Decision tree.
68
What was the contract sum?
£11m.
69
What are the elements of a cost report?
Contract Sum, expenditure in period, cash flow, provisional sum tracker, instructions and anticipated instructions.
70
What documents are within the black book?
20 Technical Practice Notes:
- Change control and management
- Commercial Management of Construction
- Conflict Avoidance and Dispute Resolution in Construction
- Construction performance and security documents.
- Cost reporting
- Defining completion on Construction Works
- E-tendering
- Employer's Agent: Design and Build
- Final Account procedures
- Fluctuations
- Interim Valuations and Payment
- Lender's independent monitoring surveyor
- Life cycle costing
- Management of risk
- Retention
- Subcontracting
- Tendering Strategies
- Termination of Contract, Corporate Recovery and Insolvency
- Value Management and Engineering
- Valuing Change
71
Is the black book mandatory?
No, as these are guidance note to show best practice (which should always be the intention of a chartered professional). If it is a professional statement, then it is mandatory.
72
Can sectional or practical completion be withdrawn when issued?
No. Hence why a robust sectional/practical completion procedure must be put in place.
73
What is the difference between sectional completion and partial possession?
Partial possession is not defined within the contract, whereas sectional completion is. The works are often not fully finished with partial possession. Partial possession would require the contractor's agreement post-contract.
74
What is the difference between partial possession and early use?
With partial possession, this mechanism will trigger the same mechanisms as PC (as it is considered to have taken place for this area). With early use, the initial SC/PC date stands. The Employer, therefore, would have a preference for early use. The contractor would have a preference for partial possession.
75
What is the standard duration for planning determination?
8 weeks. Unless unusually complex, this can be extended to 13 weeks.
76
What are the strategies for risk management with the RICS Management of Risk Guidance note 2015?
Avoid (contractor - work at height)
Reduce (tool tethering, fall restraint etc)
Transfer - discoverables in SOA
Share - target cost contract
Retain - standdown days
77
What is a business case?
A business case is used to justify a proposed project or undertaking on the basis of its expected commercial benefit. This is presented as a formal document.
78
What happens if the works are not complete at the PC date?
- Issue certificate of non-completion
- Issue withholding payment notice
- Pursue LADs if client wishes
79
What are the elements of the Arcadis contract?
Professional Services Agreement:
- Key project information
- Scope of services
- Fee proposal
- Programme
- Payment terms
80
Are relevant events and matters detailed within the contract?
Yes.
81
Give an example of a relevant event?
- Delays in instructions
- Failure to give possession of site.
- Force Majeure.
- Exceptionally adverse weather.
82
Give an example of a relevant matter?
- Opening up for inspection
- Changes to the scope of works
- Delay of approvals
83
What are the tendering strategies?
Single stage, two stage, negotiated tender. Invitation can be selective, open, or single single source (negotiated).
84
What information is on a payment certificate/notice?
- Contract sum
- Gross valuation
- Minus retention (4% on CS)
- Minus amount previously certified)
- Net valuation
- Amount in numbers and words.
- Payment due date.
85
How would retention be dealt with with Sectional completion?
Half of retention released proportionally for that area, then half retention % on valuations for the sectionally complete area for the length of the rectification period, and full amounts for the areas not complete.
86
What items do not have retention associated with them?
Loss and expense claims.
87
Who gets the interest on retention money?
The Employer.
88
How should retention be held?
In a separate bank account, labelled and proof given to the contractor.
89
What is the purpose of retention?
To incentivise the contractor to complete the works on time, to cover the costs to the employer if the contractor goes bust, and to cover snags in the rectification period if the contractor refuses.
90
On your project, were payments made on a stage or periodic basis?
Periodic - in the form of monthly valuations.
Stage payments would be by key milestones such as RIBA stages or stages within the construction process such as lift by lift brickwork.
91
When does CDM apply?
CDM applies to ALL construction works.
92
When is a project notifiable?
If it lasts more than 30 days and has more than 20 people working simultaneously, or more than 500 person days.
93
How would you notify the HSE of a project? And who should do this?
F10 Form. This is the client's duty.
94
Give an example of value engineering on one of your projects.
AQA - furniture package and Gold/Silver/Bronze.
95
Is retention fair?
It doesn't matter if it's fair, it's a contractual obligation, and the contractor has no obligation to sign the contract.
95
Is retention fair?
It doesn't matter if it's fair, it's a contractual obligation, and the contractor has no obligation to sign the contract. In addition, the JCT is drafted to be fair between parties - so amending retention to 5% could be considered unfair from this standpoint.
96
What are the 5 components of a contract?
Offer, acceptance, consideration, intent to form legal relations, certainty of terms (contract).
97
Why didn't you choose a management contract?
- Risk profile is very different, the management contractor is paid a fee to manage the works, but is not responsible for them.
- Also typically a cost-plus arrangement, so high cost uncertainty for the client.
- However, can achieve an early start on site, and have early input into the design in terms of buildability.
- A management contract is where an employer employers a management contractor, then the management contractor appoints the sub contractors.
98
What is construction management?
Where the employer appoints all of the subcontractors, then appoints a construction manager to purely manage the works.
99
What happens if a payment notice/certificate is issued late?
The Contractor may give a payment notice (default payment notice) to the CA stating the sum due on the due date and the basis on which that sum has been calculated.
100
Are you aware of any contractor performance incentives?
Fixed price contract, so any saving benefits the contractor, for example an early finish would benefit them in terms of unexpended prelims. Also use of KPIs.
101
What is programme LAG?
A required delay to the start of a successor activity. E.g plaster drying prior to mist coat.
102
What is programme lead?
When elements of a task can start before it's scheduled time. E.g loading out a scaffold with bricks ahead of the bricklayers.
103
What is Tuckman's model of team performance?
Forming, storming, norming, performing, adjourning. Covid - prolonged norming stage.
104
Why is there a current preference for two stage tendering in the market?
Inflationary pressure is driving up costs. The costs associated with single stage are much higher - therefore greater contractor risk.
105
Define Net Zero Carbon.
Removing an equal amount of carbon from the atmosphere to what goes into it.
UK target to be net zero carbon by 2050.
106
What is BREEAM?
The British Research Establishment Environmental Assessment Method. A number of scored variables give a classification of good, very good, excellent and outstanding. (materials, waste, management, transport, energy etc).
107
What is the situational leadership model?
The relationship between directive and supportive leadership.
108
Give an example of identifying a skill gap within your team and how you dealt with it.
- Not delivering on time (internal)
- Slow responses and not having answers (Internal)
- Lighting consultant - Aviva
109
When would you use a management contracting procurement rote?
Emergency works or very quick start on site.
- Different risk profile as although management contractor manages construction, they are not responsible
- typically a cost plus arrangement so very low cost certainty
110
Are oral contracts binding?
Yes. (3 types of contract - Deed, under hand, oral). The provisions for oral contracts are covered within the Housing Grants, Construction and Regeneration Act 1996.
111
What is the difference between a manager and a leader?
A manager simply undertakes managerial tasks, whilst a leader motivates, is aspirational and acts as a role model for the team.
112
What is time at large?
There is no enforceable date for completion, and the contractor then only has an implied obligation to complete the works within a ‘reasonable time’.
113
What is the difference between hard skills and soft skills?
Hard skills are technical skills, whereas soft skills are interpersonal.
114
What are some measures of team performance?
- Hitting programme dates
- Client feedback
- KPIs
- GPS
- Softer - knowing your team
115
What is assignment?
When a party to a contract is relived of their obligations and the obligations are then transferred to another party.
116
What is the difference between stage vs periodic payments?
Stage payments are predefined stages such as RIBA stages or key milestones. I use periodic payments in the form of monthly valuations.
117
What are the typical OHP values?
1-5% for large projects
5-10% for smaller projects.
118
How is contingency calculated?
Using the risk register, with an additional allowance for unknowns.
119
What is novation, why didn't you use it and how would you implement it in theory?
Novation is the substitution of one contract for a new one. In other words, the client design team joins the contractor design team.
This would be written into the tender documentation, and has the benefit of retained experience and familiarity with the project. However, on my Credit Suisse project, I wanted to provide an extra level of assurance from the design team, harness the contractor's expertise and retain the client design team in a quality assurance/advising capacity.
120
What additional provisions are required for trading floors?
- Access control
- Possible manifestations for privacy
- Dual power for resilience
- Additional cooling due to monitors etc.
