Project management Flashcards
(130 cards)
what is procurement
the framework within which construction is brought about,
acquired, or obtained.” (To procure ~ to obtain)
*what is Contract Administration:
“handling of the business relations between the
parties to the contract.”
what is the 2004 building act entail
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
what is the CHARTERED PROFESSIONAL
ENGINEERS OF NEW ZEALAND ACT
2002
regesters nz engineers as quality
establishes a registration system
requires a code of ethics and a complaints and a disciplinary process
CONSTRUCTION CONTRACTS
ACT 2002
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.
WHAT IS A CONTRACT?
A contract is a promise
* between capable parties
* that creates an obligation
* which is enforceable by law
what is a Covenant
A covenant is a type of contract in which the covenantor makes a
promise to a covenantee
what are the elements of a contract
offer, acceptance, capacity, Legality, Intention to be bound, Reality of consent
what is capacity in law
a person’s
ability to satisfy the elements required to enter binding contracts.
what is degin bid build advatenges for the owner
Historically accepted
* Price fixed before construction
* Owner involvement is low
* Contractor takes risk for construction
what is degin bid build advatenges for the contractors
- Contractor sets price
- Owner involvement is low
- Innovation = Opportunity
what are desgin bid build disadvanteges for the owner
- Long delivery time
- No constructability advice during design
- Can be adversarial
- Leads to change orders (design and scope)
what are desgin bid build disadvanteges for the contractor
Low margins
* High risk for unforeseen conditions
PROJECT MANAGER AGENT
ADVANTAGES for owner
Increased representation
* Independent evaluation
* Increased constructability
* Increased value engineering
PROJECT MANAGER AGENT
ADVANTAGES for contractor
- Contractor sets price
- Owner involvement is low
- Innovation = Opportunity
PROJECT MANAGER AGENT
DISADVANTAGES for owner
PM assumes no risk/Owner holds contracts
* PM-Agency does not guarantee cost
* PM licensing is not available
* High owner/PM involvement
PROJECT MANAGER AGENT
DISADVANTAGES for contractor
- Low margins
- High risk for unforeseen conditions
DESIGN-BUILD
ADVANTAGES owner
- Sole source of responsibility
- Reduction of project duration
- High constructability
- Claims reduction
DESIGN-BUILD
ADVANTAGES contractor
Receive both design & construction fees
* Non-adversarial A/E-GC Relationship
* React rapidly to scope changes
DESIGN-BUILD
DISADVANTAGES owner
Fewer checks and balances
* Reduced owner involvement
* Difficulty of selection
DESIGN-BUILD
DISADVANTAGES owner
- Fewer checks and balances
- Reduced owner involvement
- Difficulty of selection
DESIGN-BUILD
DISADVANTAGES contractor
Large staff
* Additional Risk
* Scope changes are difficult to track
what is prime cost amount
the amount you think something will cost
and you can adjust it later
what is a Provisional sum:
sum that you may use or can be taken out