Haringey Hubs Flashcards
(44 cards)
What sort of ‘covering information’ did you send when issuing out the cost reports?
Why I have produced the Report;
general overview of what it contains;
key points I want to get across (big changes from previous);
Summary of financial position.
What is an ‘informal meeting’?
Meeting not formally ‘minuted’ but might have an agenda with clarifiations and actions to follow which will be confirmed in later correspondence.
What sort of ‘clarifications’ did the client require?
Main reasons behind the change in anticipated final account;
reasons for change in general contingency; costs apportioned to claims;
cash flow forecast and progress on site;
What was the process involved in ‘issuing the contract for signing’?
Consolidation of tender documents
Inclusion of contractor’s submission
Incorporation of clarifications and adjustments
Compilation in electronic format, except for JCT Contract and covering letter
Duplicate package for signing and forwarding to client
Why was the JCT Intermediate used for this project?
JCT Intermediate used because the contract sum was below a million,
duration less than a year, a
works were relatively straightfoward,
design input was not required and client wanted control of design post contract.
What were the ‘Employer’s Requirements’?
Drawings and Specs;
Client Working Policies;
PCI;
CDP Requirements;
Preliminaries; Scope of Work;
Qualitative Assessment.
What are ‘Contract Particulars’?
Can you name some of the Particulars for this project?
The Contract Particulars specify key contract details, while Articles and Recitals provide general clauses and preamble information, respectively.
start and completion dates; ;
rectification 12 months;
Retention 5%;
bond not required;
public liability £10M;
liability of employer £10M;
Works Insurance option C; PII £2M (expiry 12 years);
Adjudicator (RICS nominated);
Arbitrator (RICS nominated).
What was the rate of ‘Liquidated Damages’? How did the Client calculate this figure?
LADs £1,663.39/week
Client used a standard formula designed for their projects based on contract sum and associated Finance and Professional Costs.
What ‘all cost information’ did the Cost Report contain?
Contents Page;
Executive Summary;
Authorised Expenditure;
General Sumary;
Prime Cost and Provisional Sums;
Contract Variations;
Anticipated Variations;
Lodged/Anticipated Claims;
Cash Flow Forecast
What were the ‘variation items’?
numerous (circa 200) eg omissions/additions of:
decorations and/or floor finishes (all communal areas);
wc overhauls;
internal door replacements;
etc
How did you include costs for ‘anticipated variations’ and why were they ‘anticipated’?
Variations identified as required but had not yet obtained authorisation to proceed
Based on contract rates for estimation purposes until such time as the contractor submitted ‘open book’ costs, where an adjustment would be made.
What were the ‘PSUMs’?
Asbestos removal works only.
How were the PSUMs quantified originally?
Asbestos Management Survey Report identifying areas of likely asbestos; when comparing this with the scope of works, the extent of possible asbestos in these areas was quantified and costs estimated - these then formed the PSUM allowance for asbestos removal.
What were the ‘Contingencies’ for?
Unknown works that might arise
How were these quantified?
The client had a policy for including a percentage for unknown/unidentified risk - based on a percentage of the construction works, circa 10%.
How does the anticipated account figure ‘enable the client to make informed decisions’?
Budget comparison: Checks project costs against budgeted values.
Client insight: Informs client of cost savings or additional funds needed.
Progress assessment: Compares contract progress with pre-contract predictions.
Financial decisions: Helps client decide on financial commitments and authorize or reject variations.
Prioritization: Guides action to prioritize works for maximum value.
What sort of decisions did they make?
The works would have exceeded the budget and consequently the client decided to: prioritize residential communal areas and omit works to management areas;
a VE exercise was also undertaken with the omission of decoration to certain corridors and addition of cleaning instead;
How did you ‘highlight changes’ from the previous report?
The Cost Report included an Executive Summary giving an overview together with a section at the bottom ‘Key Report Analysis’ - this is where I highlighted the reasons behind change and the main changes.
How did you ‘prioritise larger value variations items’ for attention?
In the ‘Key Report Analysis’ section of the Executive Summary
How was the valuation submission document ‘based on the pricing document?
Adapting the Pricing Document by adding additional tabs (Claim Summary; Instructions; claims) and additional columns (% progress; gross claim; change from previous claim; net claim).
What was the general process of these ‘joint site inspections’?
Valuation review: Identify additional contract and instructed works claimed for.
On-site meeting: Meet contractor QS, walk through works, agree on % completion for each schedule item.
Materials inspection: Check for labeled, stored, and protected materials delivered according to program.
How did you ‘adjust’ the claim/format of the adjustment?
Adjustment - % of progress;
quantity of materials on site;
calculation/rate errors;
confirming that variation costs were those agreed.
How did you ‘receive’ variation cost submissions/what was the process?
Variations awareness: Notified through anticipated variations register, progress meetings, correspondences, or contractor.
Update anticipated final account: Budget cost included.
Contractor submission: Based on contract rates, dayworks, quotes, or combination.
Cost negotiation: Changed from contract conditions to open-book.
Agreed costs: Formed solid basis, remaining variations finalized promptly.
How did you determine that ‘costs were correct’?
Basis alignment: Ensuring adherence to valuation rules, correct quantities, and specifications.
Quote comparison: Seeking three suppliers for value-for-money assessment.
Quote requirements: Detailed breakdown, cost breakdown, any qualifications.
Cost agreement: Informing contract administrator, considering instruction issuance.
