Summary of Experience Questions Flashcards
What are some of the key differences between NEC and JCT?
NEC
(1) Time and cost are dealt with together through Compensation Events
(2) The programme is a contractual document and there must always be an ‘accepted programme’
(3) Pricing Options including Option C Target Price
(4) Concept of Defined and Disallowed Costs
(5) Collaborative approach with EWs, NCEs, CEQs and CEs
(6) NEC Project Manager Role
(7) Works Information
JCT
(1) Time and cost are dealt with seporately with Relevent Events for time resulting in an EOT and Relevent Matters for Costs
(2) Lump Sum Pricing (with or without quantities)
(3) Use of Contract Sum Analysis and Provisional Sums
(4) Employer’s Requirements and Contractor Proposals
(5) Use of Contractor Design Portion
What are some of the key considerations when advising a Client on an appropriate procurement route?
Consideration of Cost, Time and Quality, along with the Client’s positiion on Risk and Funding. These factors help to develop a procurement strategy.
D&B
(1) Programme benefits associated with contracting before the design is fully developed
(2) Contractor takes design risk
(3) Single point of contact and accountability for design and construction
(4) BUT reliant on in-house design capability and contractor may seek ways to profit through design options which can impact quality
(5) AND less cost certainty as the contractor is appointed before the job is fully designed and all risks known
Traditional
(1) Client controls design and appointment of the architect
(2) Design is fully developed before tender leading to greater cost certainty and more comparability with tenders
(3) BUT client takes on the design risk
Management
(1) Early procurment of works packages
(2) Quick programme
(3) BUT there is lack of accountability
What is a PCSA?
Pre-Construction Services Agreement
A form of Early Contractor Involvement (ECI), whereby the contractor is appointed during the pre-contract stage to provide advice and outputs relating to buildability, programming, works packaging and discharging planning conditions.
Costs are agreed for the appointment based on prelims and overheads.
What are some of the key aspects of JCT “Deciding on the appropriate form of contract 2016”?
(1) Procurement methods e.g. Traditional, D&B and Management Forms
(2) Types of JCT Contract such as Trad lump sum, Trad measurement, Trad cost reimbursable
(3) Matters that might affect the choice of contract and the consequences of that choice e.g. Nature of project, complexity, measure of control, accountability, appointment, changes, contract sum etc.
(4) Range of Contracts such as Standard with or without quantities, Intermediate, Intermediate with Contractor Design, Deisgn & Build, Minor Works etc.
(5) Flow charts and diagrams to help you select the appropriate form
Why did you select JCT D&B for FAB Office Fit-Out?
(1) Quicker programme as we appointed the contractor before detailed design development
(2) Newly renovated to CAT A by Landlord and robust requirements and performance specs at the time of tender so unlikely to implement much change post-contract in terms of design or disruption
(3) Single point of contact and accountability
(4) Speculative risks sat mainly with the contractor
What is the affect of including sectional completion dates within your contract?
Each section has its own discrete completion process which affects handover of area to the client, delay damages, insurances, retention and the defects rectification period.
How do you typically assess an EOT Claim?
RICS Guidnace Note - Extentions of Time
(1) Consider whether there is a valid reason why the completion date should be adjusted. Refer to Relevant Events under JCT or Compensation Events using NEC. Typical reasons would be instructions, variations, deferment of possession, suspension or particularly adverse weather.
(2) Delay notice by contractor stating cause and effect
(3) Analysis of the delay such as critical path analysis and comparing actual vs planned progress
Why did you select NEC ECC Option C for the TH Project?
(1) Government organisation had an overarching contract strategy to use NEC
(2) Option C incentivised the contractor to deliver under the target price through the pain/gain share mechanism.
(3) The nature of the scheme worked well with the NEC concepts of agreeing time and cost within set timeframes because changes were easy to quantify
What is the process for submitting and accepting the programme under NEC?
Contractor submits a programme for acceptance.
Project Manager has 2 weeks to accept or reject. Reasons to reject can only be for one of the following:
- Contractors plans shown are not practicable
- It does not show the information which this contract requires
- It does not represent the Contractors plans realistically
- It does not comply with the works information
What are the general principles and procurement thresholds associated with OJEU?
OJEU = Official Journal of the European Union
It is an online government contract and procurement portal.
It is set up for compliance with public sector procurement rules under the Public Contract Regulations 2006
Basic thresholds apply where supplies or services are over circa £122k and works are over £4.7m
What is the difference between procurement and tendering?
(1) Procurement is the overall act of obtaining goods and services from external sources. It refers to the overall strategy which would be determined by cost, time, quality, funding and complexity
(2) Tendering is the bidding process, to obtain a price; and how a contractor is actually appointed.
What are the main forms of tendering?
Single Stage, Two Stage and Negotiated
Why would you impliment a two-stage tender?
Contractor appointed under a PCSA earlier in the design process (RIBA 2/3) for specialist input around buildability, packaging, works procurement and planning.
Contractor appointed on a prelims basis including overheads and profit.
Ideally the contractor is working with the Client to contribute towards the design and then produce a bid for the construction works which meets the Client’s budget requirements.
What are the main reasons for a robust tendering strategy?
Accountability, auditability, ensuring everything has been picked up, parity, helping to reduce claims of corruption; and ensuring that the correct price has been paid for the proposed works.
What information would you include in an RFP for the appointment of a contractor?
Cover Letter
Instructions to Tenderers
Background
Scope of Services Required
Employer’s Requirements, Design and Specifications
Preliminaries / Site Information / Pre-Construction Information
Pricing Document
Tender Return Template
Evaluation Methodology
Form of Contract
What financial information do you include in your monthly client reports?
(1) Projected and actual costs for all project liabilities such as profesional fees, construction costs, client direct works and contingencies
(2) Variation account / change log including pending or potential
(3) Anticipated final costs
(4) Total certified payments
What are the main reasons why the contract sum might change?
(1) Adjustment of provisional sums or prime cost (PC) sums
(2) variations to the design and/or the specification of the work
(3) additions or reductions to the scope of the works
(4) loss and expense incurred by the contractor for specified reasons
(5) increases or decreases in the costs of labour and materials or in taxes, levies or contributions imposed by the government (i.e. fluctuations – albeit many employer’s will seek to remove such provisions through amendment to the contract conditions).
What do you include in your Payment Certificates?
Contract Details / Cert No
Contract Date
Valuation Date
Due Date
Issue Date
Date for Payment
Contract Sum
Gross Valuation
Less Retention
Less Previously Certified
VAT
What is the standard interim payment timeline under JCT Standard BC?
Application to be submitted no less than 7 days before Due Date
Valuation period (7 days)
Due Date
Payment Cert no later than 5 days from the Due Date
Final date for payment no later than 14 days from the Due Date
Total process is 21 days as standard
What are the main methods for interim valuations and payment?
- Stage Payments
- Milestone payments
- Payment based off activity schedule
- Third party certification (application and valuation)
What are the four main types of communication?
(1) Visual Communication
(2) Written Communication
(3) Verbal communication
(4) Non-verbal communication / body language
What are some of the key principles of negotiation, the pitfalls and the distinct phases that should be followed?
Principles:
Prepare beforehand and gather the facts
Seek common objectives
Know your fallback position or bottom line
Engage with relevent stakeholders
Process
Opening statements
Bargaining and negotiation
Close
Review and communicate
How do you adapt your communication style to suit your client?
Consider the governance structure, their personanility, your relationship, their requirements, the services being provided and your role.
Make a judgement and contunally review either through formal feedback and client care or informally.
What are some of the concepts laid out by Stephen R. Covey in ‘The Seven Habits of Highly Effective People’ and how do you impliment them?
(1) Paradigms of interdependence
(2) Empathic communication
(3) Creative cooperation
(4) Thinking ‘win–win’.