Project management Flashcards

(130 cards)

1
Q

what is procurement

A

the framework within which construction is brought about,
acquired, or obtained.” (To procure ~ to obtain)

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2
Q

*what is Contract Administration:

A

“handling of the business relations between the
parties to the contract.”

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3
Q

what is the 2004 building act entail

A

people who use buildings can do so safely
buildings have attributes that contribute appropriately to the health, physical
independence, and well-being of the people who use them;
people who use a building can escape from the building if it is on fire; a
sustanible devlopment

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4
Q

what is the CHARTERED PROFESSIONAL
ENGINEERS OF NEW ZEALAND ACT
2002

A

regesters nz engineers as quality
establishes a registration system
requires a code of ethics and a complaints and a disciplinary process

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5
Q

CONSTRUCTION CONTRACTS
ACT 2002

A

protection of retention money withheld under construction contracts
* a fair, balanced and appropriate payment regime
* access to fast and cost-effective dispute resolution
* cost-effective and timely enforcement of rights and obligations.

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6
Q

WHAT IS A CONTRACT?

A

A contract is a promise
* between capable parties
* that creates an obligation
* which is enforceable by law

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7
Q

what is a Covenant

A

A covenant is a type of contract in which the covenantor makes a
promise to a covenantee

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8
Q

what are the elements of a contract

A

offer, acceptance, capacity, Legality, Intention to be bound, Reality of consent

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9
Q

what is capacity in law

A

a person’s
ability to satisfy the elements required to enter binding contracts.

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10
Q

what is degin bid build advatenges for the owner

A

Historically accepted
* Price fixed before construction
* Owner involvement is low
* Contractor takes risk for construction

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11
Q

what is degin bid build advatenges for the contractors

A
  • Contractor sets price
  • Owner involvement is low
  • Innovation = Opportunity
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12
Q

what are desgin bid build disadvanteges for the owner

A
  • Long delivery time
  • No constructability advice during design
  • Can be adversarial
  • Leads to change orders (design and scope)
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13
Q

what are desgin bid build disadvanteges for the contractor

A

Low margins
* High risk for unforeseen conditions

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14
Q

PROJECT MANAGER AGENT
ADVANTAGES for owner

A

Increased representation
* Independent evaluation
* Increased constructability
* Increased value engineering

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15
Q

PROJECT MANAGER AGENT
ADVANTAGES for contractor

A
  • Contractor sets price
  • Owner involvement is low
  • Innovation = Opportunity
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16
Q

PROJECT MANAGER AGENT
DISADVANTAGES for owner

A

PM assumes no risk/Owner holds contracts
* PM-Agency does not guarantee cost
* PM licensing is not available
* High owner/PM involvement

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17
Q

PROJECT MANAGER AGENT
DISADVANTAGES for contractor

A
  • Low margins
  • High risk for unforeseen conditions
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18
Q

DESIGN-BUILD
ADVANTAGES owner

A
  • Sole source of responsibility
  • Reduction of project duration
  • High constructability
  • Claims reduction
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19
Q

DESIGN-BUILD
ADVANTAGES contractor

A

Receive both design & construction fees
* Non-adversarial A/E-GC Relationship
* React rapidly to scope changes

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20
Q

DESIGN-BUILD
DISADVANTAGES owner

A

Fewer checks and balances
* Reduced owner involvement
* Difficulty of selection

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21
Q

DESIGN-BUILD
DISADVANTAGES owner

A
  • Fewer checks and balances
  • Reduced owner involvement
  • Difficulty of selection
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22
Q

DESIGN-BUILD
DISADVANTAGES contractor

A

Large staff
* Additional Risk
* Scope changes are difficult to track

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23
Q

what is prime cost amount

A

the amount you think something will cost
and you can adjust it later

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24
Q

what is a Provisional sum:

A

sum that you may use or can be taken out

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25
What is a Construction Cost Estimate
The determination of probable costs of any given project
26
what is parametric estimating
first divide a project into units of work. Then, you must determine the cost per unit, and then multiply the number of units by the cost per unit to estimate the total cost. – A.k.a. Top-Down Estimate
27
what is first principles pricing
is the process of 'building-up prices, or rates, for an item or piece of work considering all the parts and activities needed to put it together. – A.k.a. Bottom-up Estimate or First Principles Estimate
28
what are contenginces
Contingency is that amount of money added to an estimate to cover the unforeseen needs of the project, construction difficulties, or estimating accuracy
29
what is Disaggregation
Breakdown to finite components of work
30
what is project charter
High level statement of what is to be done and the boundaries to a project
31
Some short comings of PDM
All goals are based on estimates, which contain uncertainties * Estimates of activity times generally include a large safety margin * ‘Student syndrome’ may operate: human nature for many of us means activities are left to the last possible minute * ‘Parkinson’s Law’ may prevail: an activity will expand to fill the time available * The way that progress is measured is in error – by the time the PM is notified of a problem it is already too late to prevent it!
32
what is the time value of money mean
the concept that money avalible at the present time is more valuble than the identical sum in the future due ti its potential earning capacity
33
what is equity
Total Equity is the sum of Capital, Stock, Retained Earnings aka net worth
34
what is working capital
= Current Assets – Current Liabilities Working capital is a measure of the short-term financial strength of a company.
35
how would u increase working capital
Making profit, selling equipment or other assets, or switch from short to long term loans (bank). A long-term loan increases current (short term) assets, but at the same time increases long term liabilities.
36
what is current ratio
Current Ratio = Current Assets / Current Liabilities. The ratio for a construction company’s liquidity
37
what are profitability ratios
Profitability ratios measure a company’s ability to earn profit from its operation
38
what is cpi
The Cost Performance Index (CPI) is a measure of the cost efficiency of budgeted resources, expressed as a ratio of earned value to actual cost.
39
what is the individual performance equiation
individual attributes x work effort x organisational
40
what is the order of mazlos hiarachy of needs
physiological, safety, social, esteem, self actualisation
41
what leadership style does a beginer need
directing
42
what leadership style does a learner need
coaching
43
what leadership style does a contributor need
supporting
44
what leadership style does an achieveer need
delegating
45
claassify beauracy
standardized procedures (rule-following) * formal division of responsibility * hierarchy * impersonal relationships
46
calssify sicentfic manehement
Scientific Management analyses workflow processes to improve labour productivity. Decisions based upon tradition and custom should be replaced by precise procedures developed after careful study of an individual at work.
47
classfy cultural approaches in managment
CA use the fact that results are made by teams instead of individuals and that the team can have a ‘moral’ system that leads to common behavioural code of conduct.
48
Total Float (FT)
* Defined as the amount time an activity can be delayed without affecting the completion of the entire project. Sometimes called slack. activites with a total float of zero are defined as critical tasks
49
Free Float (FF)
The maximum amount of time an activity can be delayed from its Early Start (ES) without delaying the ES of any immediate successors.
50
Linear project
A linear project can be defined as a project where the majority of activities on the project are “linear activities”.
51
❑Block Activities
A block is used to represent an activity that occupies an area on the project for a period of time
52
Least Time Interval (LTI)
The least time interval (LTI) identifies points where the time buffer between activities is at a minimum
53
Least Distance Interval (LDI
The shortest distance between any two adjacent activities that lies within the coincident duration and intersects the least time interval.
54
. Perform the upward pass
Identify potential critical path and activity segments The goal of the upward pass is to determine which activities or portions of activities could potentially be controlling. This will be verified with the downward pass.
55
2. Perform the downward pass
Verify critical path and activity segments The purpose of the downward pass is to determine which portions of the potential controlling segments are actually on the controlling activity path
56
Lowest Price Conforming (LPC):
The contract is awarded to the lowest price bidder provided it conforms. The attributes of the other bidders are discarded or returned The beauty of this method is that it does not allow value decisions on which bidder’s attributes are better than the others. The decision is cut and dried. For this reason, LPC should only be used for contracts that are low in value, where the scope/Risk is tightly defined
57
Weighted Attributes
t, assessing attributes and price with varying weightings to determine a preferred bidder for cost and quality optimization. This method lacks transparency regarding trade-offs between price and non-price components, potentially leading to unexpected outcomes.
58
Target Price [Purchaser Nominated Price]:
Here's the process (or similar): 1. The client sets a budget clearly outlined in the RFP and specifies the desired outcomes. 2. Suppliers describe their proposed solutions based on weighted evaluation criteria. 3. Bids are scored, and the winner is determined using the weighted attributes method, without the need for a price score. This straightforward yet robust approach ensures optimal value within a set budget, resembling the method employed when purchasing a home, car, or significant asset—where you know your budget limit and strive for the best possible value within those constraints."
59
The Price Quality Method:
Like weighted attributes, the Price/Quality method starts by setting weights for the attributes and the price. At that point, before the RFT is released, it’s possible to review the Supplier Quality Premium (SQP) that is assigned to each attribute point. This is a dollar value that corresponds to the amount that the client is prepared to pay for each attribute point that one bidder scores higher than another. It’s a perfect ‘reality check’ for clients to consider, alongside the potential material impact of risks on the project and/ or the value that innovations might deliver to the project or the asset in future.
60
Quality-Based Selection, or Brook’s Law:
This approach is applicable when project scope is uncertain, pricing is challenging to estimate, or when a high degree of cooperation between the client and supplier(s) is essential for successful project delivery (common in Alliance or Public-Private Partnership projects). This method doesn't involve pricing; instead, it focuses on a list of attributes defining the desired qualities in a supplier or group of suppliers. Often, complex mechanisms are used in conjunction with this evaluation method to quantify risks and conduct a thorough cost/benefit analysis of proposed solutions.
61
Schedule of Values (SOV
The SOV is used in the measurement process for determining what work has been accomplished or earned.
62
Planned Value (PV)
The value of the work planned or scheduled to be accomplished within a specific time period as illustrated in the schedule. This is also known as the Budgeted Cost for Work Scheduled (BCWS).
63
Earned Value (EV
The value of the work completed measured in terms of the planned value of the work. It is the earned value for a task and a principle measurement in the Earned Value Management process. This is also known as the Budgeted Cost for Work Performed (BCWP).
64
Actual Cost (AC)
The actual cost incurred in the performance of the work for a given time period. It is one of the principle measurement tools of project control. This is also known as the Actual Cost of Work Performed (ACWP)。
65
Cost Variance (CV)
Difference (in dollars) between what was earned in performing the task(s) and what it actually costs to perform the task. CV = Earned Value – Actual Cost CV = BCWP – ACWP
65
Schedule Variance (SV)
Difference (in dollars) between what was planned on being earned and what was actually earned for a task(s). SV = Earned Value – Planned Value SV = BCWP – BCW
66
Schedule Performance Index (SPI
The budgeted cost of work performed (BCWP) divided by the budgeted cost of work scheduled (BCWS). It is a ratio of the earned value to the planned value SPI = BCWP/BCWS SPI = EV/PV
67
What is CPI cost performance index
The budgeted cost of work performed (BCWP) divided by the actual cost of the work performed. It is a ratio of the earned value to the actual cost. CPI = BCWP/ACWP CPI = EV/AC
68
Estimate at Completion (EAC)
The total anticipated cost of the project when it is complete. Thus, it allows the project manager to see what the final project cost estimate is. EAC = BAC ÷ CPI
69
Estimate to Completion (ETC)
for determining the amount of money required to complete the task (or project) if conditions remain as is. ETC = EAC - AC what is the cash requirement to complete the work?
70
Variance at Completion (VAC)
The expected cost variance at the end of the project VAC = BAC - EAC A positive VAC tells the project team that the costs are under budget. * A negative VAC tells the project team that the costs have exceeded the current target budget.
71
To-Complete Performance Index (TCPI)
It computes the future required cost efficiency needed to achieve a target Estimate at Completion (EAC). * TCPI answers the question of “how efficiently must we use our remaining resources (financial)?” For TCPI greater than 1.00, there is more work remaining than there is budget to pay for it. TCPI less than 1.00 indicates that there will be surplus funds in the budget after the work has been completed. 1.2 cpi may be too high
72
Delay Claims
A ‘claim’ is a request from one contract party (usually the contractor) to another party for additional compensation, an extension of time, or both.
73
A ‘claim’ is a request from one contract party (usually the contractor) to another party for additional compensation, an extension of time, or both.
Also know as “Budget creep” occurs when a project's costs increase beyond the original budget. Unexpected changes, organizational mismanagement, or unrealistic estimates can cause it.
74
Excusable delay
An excusable delay entitles the contractor to additional time for completing the contact work beyond the contractor’s control.
75
Non-excusable delay
Typically, a non-excusable delay is any delay that is either caused by the contractor or not under normal conditions but should have been anticipated by the contractor under normal conditions. A non-excusable delay does not entitle the contractor to either a time extension or monetary compensation.
76
What are liquidated damages?
Liquidated damages are not penalties, they are pre-determined damages set at the time that a contract is entered into, based on a calculation of the actual loss the client is likely to incur if the contractor fails to meet the completion date. They are generally set as a fixed daily or weekly sum Liquidated damages might include: Loss of rent. Loss of income. Fees. Storage costs. Rental costs. Fines imposed by third parties. Financing costs.
77
Concurrent delay
A combination of two or more independent causes of delay during the same general time period may be considered to be concurrent delays.
78
There are two types of concurrent delay:
‘true concurrency’. two or more delay events occur at the same time, one a Client Risk Event, and the other a Contractor Risk Event, and the effects of these events on the project are felt at the same time”. ‘concurrent effect of sequential delay events where two or more delay events occur at different times, but the delay effects of each overlap.
79
Accelerating a project
Accelerating a project means shortening the normal duration of the project schedule without reducing the original scope of work. It also called schedule compression.
80
Normal duration
We define normal duration for a specific contractor as the amount of time required to finish the project under ordinary circumstances without any deliberate acceleration or deceleration
81
Why need for time reduction?
Recover schedule and meet important project target dates The contractor may desire an earlier completion date Early completion bonus
82
Mandatory dependencies
Mandatory dependencies are those that are legally or contractually required or inherent in the nature of the work. Mandatory dependencies often involve physical limitations Mandatory dependencies are sometimes referred to as hard logic or hard dependencies.
83
Discretionary dependencies
Discretionary dependencies are referred to as preferred logic, preferential logic, or soft logic. Discretionary dependencies are established based on knowledge of best practices within a particular application area or some unusual aspect of the project where a specific sequence is desired, even though there may be other acceptable sequences.
84
Constructability
defined as “the optimum use of construction knowledge and experience in planning, design, procurement, and field operations to achieve overall project objectives
85
What is the definition of Risk?
Risk is a combination of (i) events A and the consequences of these events C, and (ii) the associated uncertainties U (about what will be the outcome)
86
Risk Management process
Planning Risk assessment Risk treatment
87
Fault Tree Analysis (FTA
FTA is a system analysis technique used to determine the root causes and probability of occurrence of a specified undesired event. Deductive, it transverses from the general problem to the specific causes.
88
Cut sets
set of events that together cause the top undesired event to occur
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Reactive FTA
Performed after an accident has occurred. * Used as an accident investigation method
90
Proactive FTA
Performed during system development to influence design by predicting and preventing future problems * Used as risk analysis method
91
Event Tree Analysis (ETA)
An event tree analysis (ETA) is an inductive procedure that shows all possible outcomes resulting from an accidental (initiating) event, taking into account whether installed safety barriers are functioning or not, and additional events and factors. ETA can be used to identify all potential accident scenarios and sequences in a complex system.
92
What are Markov Chains?
Markov chains are used to compute the probabilities of events occurring by viewing them as states transitioning into other states, or transitioning into the same state as before
93
Pre-posterior Analysis
A decision is ‘sensitive’ if * after a test the decision is different for different test results; * after more tests, the decision changes Sensitivity of the decision will tend to reduce with the increase in number of tests. One can do a test, incur the cost of that test, and then make a decision to take a particular action or do another test.
94
what is a type 1 error
Rejecting a true Hypothesis
95
what is a type 2 error
Accepting a false Hypothesi
96
Utility
Utility (U) is defined as the state of being satisfied ,useful, valuable, profitable, having worth or beneficia
97
Marginal utility (MU)
is defined as the additional utility gained from the consumption of one additional unit of a good or service.
98
Total utility (TU) i
Total utility (TU) is defined as the total amount of satisfaction that a person/decision maker can receive from the consumption of all units of a specific product or service
99
The Utility Maximisation rule states:
Decisionmakers decide to allocate their money incomes so that the last dollar spent on each product purchased yields the same amount of extra marginal utility. Utility Maximization model is built based on the following assumptions: 1.Decision-makers are assumed to be rational (trying to get the most value for their money) 2.Decision-makers’ incomes are limited because their individual resources are limited(budget constraint) 3.Decision-makers have clear preferences for various goods and services.(thus they know their MU) 4.Decision-makers must choose among alternative goods with their limited incomes/resources.
100
Deterioration modelling
Deterioration modelling involves the modelling and prediction of the physical state of equipment, structures, infrastructure, or any tangible assets. forming the foundation for decisions related to maintenance and rehabilitation
100
Individual Risk Appetite i,e explain risk neutral, averse and anot risk averse
A ‘risk neutral’ person bases all decisions on expected utility. * A ‘risk averse’ person will be uncomfortable with a small p* (i.e. large probability of big loss). * A ‘not risk averse’ person will be comfortable with a small p* (i.e. a small probability of a big win
101
what's the difference between Outputs, Outcomes and Benefits
outputs = tangible product or process from the project. enables a new outcome in part of operational organisation. outcomes = desired operational result derived from delivery of an output benfits = measurable gain to a stakeholder resulting from an outcome or part of an outcome
102
what should all asset management descions have in common?
policy driven, performance based, options evaluated, descions based on quality information, clear accountability
103
What is a Business Case?
A business case provides justification for undertaking a project. It evaluates the benefits, costs and risks of alternative options and presents the rationale for the preferred solution. Its purpose is to obtain management commitment and approval for the investment or funding”
104
the areas of main concern in IAM are:
that there is limited knowledge and information available on the condition of assets; ▪ that present financial provisions may be insufficient to meet long-term expenditure requirements for capital maintenance and eventual replacement of assets; ▪ that asset valuation provides a statement of current replacement cost and depreciated value, but only provides a rough indication of the size of likely problems, rather than the sort of accurate information required; ▪ that methods used to determine renewal expenditure must reflect the way assets are “consumed” over time; ▪ that Operators need to be able to apply a long-term perspective to the issue of asset management to ensure no undue burden is borne by one generation over another.
105
Independent Systems
Do not share any processes or data
106
Interfaced Systems
Simply connected systems or subsystems that can exchange information across the common boundary which they share. Systems share data but no processes
107
Interoperable Systems
Provide and accept services from other systems and use the services exchanged to enable them to operate effectively together. Systems share limited processes and data
108
Integrated Systems
Tightly coupled interconnection of different, highly specialized devices, subsystems or systems, into a broader system providing complex functions which require close interactions between it’s components. Systems share many processes and data.
109
what is the equation of a good decision?
expected value = odds of gain * value of gain
110
ALLAIS’ PARADOX
This involves calculating the expected utility of each action and choosing the action with the maximum expected utility. However, it has been found that decision makers do not always do this
111
Brute force with weighted expert opinion Simple MCA advantges and disadvanteges
Disadvantages: * -Weighting factors are often difficult to agree on by many parties. * -There may be inconsistencies within weighting factors (discussed later on in the lecture). Advantages: Fast and dirty approach.
112
Risk Based approach
Technique that uses Risk = Probability x Consequence to identify high risk areas that should be addressed. * Risk is often used to balance the funding gap. Understanding this gap will lead to better decision making. Advantages: * Based on Mathematical Decision Theory and is an industry standard * Generates ratio data Disadvantages: * Labour intensive * Participants perceive the tool as a 'black box' if they do not understand the mathematical theory
113
Analytical Hierarchy Process (3)
define objective structure elements make pair wise comparisons : Calculate criteria weights vector {W} Normalized Matrix (below Complete a consistency check Evaluate alternatives according to weightin
114
Delphi Method
Delphi method is a structured communication technique that seeks to minimize variance. * Based on the principle that decisions form a structured group of individuals is more accurate than those from unstructured groups. * Based on the assumption that group judgments are more valid than individual judgments. * It requires a panel of experts. The experts answer questionnaires in two or more rounds. * After each round, a facilitator provides an anonymous summary of the experts’ decisions from the previous round as well as the reasons for their judgments. * In the next round, experts are encouraged to revise their earlier answers in light of the replies of other members of their panel. * Finally, the process is stopped after a predefined stop criterion (e.g. number of rounds, achievement of consensus, stability of results
115
Cognitive Fluency
How easy an idea is to process and understand.
116
Suck Cost Fallacy
Not leaving a bad movie before it ends because you paid for it !!!
117
Self serving bias
If we win it is our success, if we lose, it is someone else's fault. (defence mechanism that protects a person’s self-esteem)
118
Consider both inside vs. outside view
Inside view is always optimistic. Outside view often gives a less optimistic but more realistic view. Example: When two companies merge: Inside view thinks things are great, board members think this will increase stock prices. Commonly when companies merge stock prices drop.
119
Scientific Management - Frederick Taylor what did he wittness
The more productive you are, the fewer workers will be needed 2. Workers get paid for their time, so work at slowest acceptable pace 3. Workers have the freedom to create their own work procedure
120
what are Fred Talyor's 4 principles of scientific management
1.Use scientifically optimised work routines 2.Scientifically select and train workers 3.Ensure work routines are followed 4.Managers and workers to use scientific methods
121
Differences between traditional & Lean (1
Traditional * Decisions are made sequentially by specialists and ‘thrown over the wall’ * Activities are performed as soon as possible * Not all product life cycle stages are considered in design Lean * Downstream players are involved in upstream decisions, and vice-versa * Activities are performed at the last responsible moment * All product life cycle stages are considered in design
122
What is the hawthorne effect
he alteration of behaviour by the subjects of a study due to their awareness of being observed
123
what is cost variance
Difference (in dollars) between what was earned in performing the task(s) and what it actually costs to perform the task. CV = Earned Value – Actual Cost CV = BCWP – ACWP
124
what does a negative schedule variance mean
behind schdule (EV - Pv)
125
What does a negative CV mean
Over budget EV - AC
126
what does a SPI lower than 1 mean
project is behind schdule = ev/pv
127
what does a cpi lower than 1 mean
project is overbudget
128
What are the components of SMARTER
S-pecific M-easurable A-chievable R-elevant T-ime bound E-valuation R-e asses