Technical - Level 1 Flashcards

Question

Pros and cons of SPONS?

Answer 1

Pros: -Contains thousands of detailed pricing data -Covers many different construction areas -Based on real tenders Cons: -Not adjusted for location -Published annually so doesn’t account for cost changes throughout year -Not specific book for water -Doesn’t consider project specific factors

Answer 2

-Higher initial cost -However shorter programme so lower labour/prelims cost -This is good as can offset potential higher labour rate for specialist worker -Possible less material cost as less wastage -Though can cause delay costs if not considered early in design process

Answer 3

Whole works cost estimate divided by the chosen prime use of the building (unit), such as beds in a hotel or lettable m2 of an office So basically the unit cost of each bed/per m2 of office

Answer 4

-Requirement for contractor to make payment applications -Final account mechanism, -Single overheads fee for compensation defined cost, where NEC3 had lots of little -Ability for contractor to issue proposals (e.g change scope and accelerate programme) -Contractor can recover costs for preparing compensation events -Introduces a ‘Dividing Date’ for CE’s -Changes in terminology, -Gender neutral -Replaces ‘Employer’ with ‘Client’

Answer 5

Topsoil Earth Rock Trench Stepped Cut and fill Dredging Directional drilling Pipe jacking Trial holes Boreholes

Answer 6

Working space allowance; proximity to existing structures; nature of the soil; depth/width of excavation; requirement for earthwork support Health and safety Water level

Answer 7

The report focuses on housing: -Cross laminated timber as a solution to the housing crisis -Modular construction for increase house building speed -‘Pocket’ homes for first time buyers -Sustainability benefit of timber frames -advantages of MMC -barriers for implementing it eg lack of quality control, Supply chain development and consumer perception

Answer 8

International Cost Management Standard globally consistent framework for REPORTING, BENCHMARKING, CLASSIFYING construction costs and carbon emissions across the project lifecycle While WLCA is for QUANTIFYING (the whole life costs only)

Answer 9

-Introduced The Central Digital Platform (CDP) to simplify/modernise public procurement…. It is a centralised hub to streamline government procurement activities by making it easier for suppliers to find/bid for public contracts, and for buyers to meet transparency commitments ….it's simple registration removes barriers for SME's to bid -now require companies to demonstrate factors such as environmental responsibility to secure contracts. -New “competitive flexible" procedure, allows for a tailored process that aligns with the specific needs of the procurement. -SMEs receive payment within 30 days. -8 year maximum for framework contracts

Answer 10

1. Stop all payments to the contractor. 2. Secure the site. 3. Take possession of any offsite materials. 4. Value the works completed and prepare a notional final account 5. Inform the bondsman, if required 6. Terminate the contract. 7. Begin the process of appointing another contractor to complete the works.

Answer 11

-collateral warranties require a lot of administration and cost involved… while Third-party rights are easier/cheaper as there's no separate document required -Collateral warranties could be used for funders, as they provide a clear/direct contractual path for claims. Third-party rights may be more suitable for developments with multiple tenants where there is less need for a separate, formal agreement

Answer 12

Summary: Advantages: mirror contract, no separate agreement, cheaper/ quicker, certainty from contract execution (rather than collateral warranty which could be signed later on) Disadvantages: lack of flexibility as any provisions are applicable to all third party beneficiaries ———- Advantages: -No separate documents required (eg collateral warranties) so time and cost saved -Provides certainty from the contract execution, rather than collateral warranties which may not be agreed until the end of the works Disadvantages: -Lack of flexibility: any provisions explicit under the third-party rights act applicable to all third parties under that contract9

Answer 13

To provide a contractual link when one wouldn’t otherwise be there Eg between client and subcontractor doing a specialist design portion So they can hold that subcontractor accountable for defective workmanship/design or if contractor went insolvent

Answer 14

Bank/Funder- employer transferring the right to sue the contractor for defects/delays to the completed building. Tenants - transferring a collateral warranty to the tenant or purchaser of a building to sue for defective work

Answer 15

On completion is issued to the client to inform how the building has been constructed and how it should be cleaned/maintained/decommissioned Includes eg built drawings, specs, and lelectrical gas and fire certificates Often given at same time as H&S file

Answer 16

short report that accompanies the PLANNING APPLICATION to demonstrate how the building has been designed and can be accessed by prospective users

Answer 17

Conducting a Factory Acceptance Test before departing the facility; conducting a Site Acceptance Test post arrival on site

Answer 18

Propping; scaffolding; formwork; excavation support

Answer 19

Working space allowance; proximity to existing structures; nature of the soil; depth of excavation requirement for earthwork support

Answer 20

Ground conditions Loadings of the building; type of structure; cost; construction restraints for example proximity to other buildings

Answer 21

Raft: -Continuous slab that stretches over the whole footprint of the building to spread load per m2. Used on low bearing capacity soils and LIGHT load (if heavy then use piles) Pad: -uses individual foundations to support columns spreading the loads across the ground below, ground needs to be stable Strip: -linear strips that serves to spread weight across the total ground area, typically use to support masonry works, lighter loads

Answer 22

-Heavy structures that require loadings to be distributed to the ground below; -Low soil bearing capacity -High water table -site conditions require a more reinforced foundation solution

Answer 23

-End bearing piles rest on hard ground beneath the surface… GO DOWN FURTHER TO HARD ROCK -friction piles work to transfer loads to the soil around each pile

Answer 24

-Bored piles: hole is drilled then concrete poured in with reinforcement. Used in cohesive soils (stick together) to form friction piles -driven piles manufactured then driven/vibrated into the ground using a pile drill, good for loose soils -screw piles: good for loose soils, flooded areas, tight spaces, quiter/no vibration -CFA piles: quieter/no vibration

Answer 25

Advantages -any shape or size of pile can be matched on site -no risk of damage during delivery -reduced vibration and noise Disadvantages include -coordination of multiple trades eg reinforcement crew, piling crew, concrete supplier -significant spoils are generated that need to be disposed of

Answer 26

Advantages: -piles can be pre-cast any specific requirements - bearing capacity of the pile may increase - fast, neat and clean installation - suitable for contaminated ground Disadvantages: - requires heavy equipment for handling and delivery - increase noise and vibration - can be costly if piles are too short - precast piles can be damaged during delivery

Answer 27

wall that uses a female and male interlocking pile with no gaps creating a solid barrier

Answer 28

method for repairing and strengthening foundations Can stabilise foundations that have moved because of landslide, vibration damage, heave or subsidence

Answer 29

-Weather protection -Fire resistance -Acoustic performance -Thermal performance -Appearance -Lifespan -Maintenance requirements -Cladding that can be fixed

Answer 30

layer of hardcore used to allow the plant / equipment to move around to insert foundations

Answer 31

Height • Length • Fire requirements • Thermal performance • Acoustic performance • Specialist requirements, eg ballistic board • Material • Programme

Answer 32

- Waterproof concrete • Drain cavity (sump pumps in cavity to remove excess water) • Waterproof membrane • Damp proof course / damp proof membrane

Answer 33

-looks at the advantages of MMC, -different solutions for example cross laminated timber and modular construction solutions eg bathroom pods -highlights barriers for implementing MMC on projects eg lack of quality control, Supply chain development and consumer perception

Answer 34

Gateways that Keep designers and consultants at the correct progression of design information -makes sure design adheres to client budget at each stage to ensure scheme remains viable

Answer 35

A - structure B - fire safety C- site prep and resistance to contaminants and moisture D - toxic substances E - resistance to sound F - ventilation G - sanitation, hot water safety and water efficiency H - drainage and waste disposal J - combustion appliances and fuel storage systems K - protection from falling, collision and impact L - conservation of fuel and power M - access to and use of buildings Approved document O - Overheating

Answer 36

Water (for wood) Foam (for flammable liquid) Dry powder (for flammable liquids and electric fires) Carbon dioxide (for electrical fires) Wet chemical (cooking oil)

Answer 37

-consideration given to retain elements eg frame strengthening -Asbestos present in the building -planning restrictions

Answer 38

-takes heat from the air and boost it to a higher temperature using a compressor (endothermic = absorbs heat) -then transfer this heat to a heating system for distribution using refrigerant (Like how a fridge becomes cold but in reverse)

Answer 39

-Ventilation driven by a fan so air can flow from outdoors into a building -May be appropriate for high-rise buildings where curtain walling systems form the envelope

Answer 40

Shell and core - basis structure and envelope Cat A - Basic level of finish including raised access floors, suspended ceilings and M&E fixings Cat B - eg: Café, tea points and kitchens Furniture, Decor

Answer 41

-Client requirements -Program requirements -Availability of cost and resources -Appearance and quality

Answer 42

Advantages: -Cheaper -Good thermal / acoustic insulation -Can be aesthetically pleasing -Has sustainability benefits Disadvantages: -Potential for wet dry rot or woodworm… so more maintenance -Fire protection may be required -Skilled workmanship required

Answer 43

Advantages: -Fast erection on site -Recyclable -High strength to weight ratio -Beams can span over long distances Disadvantages: -Price of steel is volatile -More expensive -Fire protection may be required -Less aesthetically pleasing

Answer 44

Advantages: -Fire protection is inherent -Cladding/finishes can be fixed directly to frame -Provides good sound and heat insulation -Has a high compressive strength -Cheaper Disadvantages: -Requires formwork -Slower to construct on site -Does not span as well as steel (tensile) -Long curing time, which can increase program

Answer 45

-Steel is more lightweight, which could reduce foundation requirements -Concrete has inherent fire protection, whereas this would be an additional cost for steel frame -Concrete slower as need formwork/curing time, but precast can alleviate this -Steel has higher strength and better at spans -Concrete more durable/lower maintenance needed -Concrete has better acoustic/thermal properties -Steel Comes with sustainability benefits due to its high recyclability

Answer 46

-Precast concrete could provide programme benefits as curing time is not required -Precast better for repetitive works (basic volume/slabs) but in situ better for bespoke designs -In situ lower upfront costs -Pre-concrete materials could be damaged en route to site -Quality of precast units can be controlled within the factory

Answer 47

-Program, including erection and lead-in time -Fire protection requirements -Cost of materials -Quality and finish -Thermal performance -Acoustic performance Think about COST TIME QUALITY

Answer 48

Capital: - Cost of construction • Land acquisition • Consultant fees Operational: -Maintenance costs • Utilities usage • Repair or replacement costs

Answer 49

- cost per m2 • Cost per functional unit • Using the elemental method, eg stairs per nr

Answer 50

• Cover letter • Executive summary • Assumptions and exclusions • Quantified Summary (construction cost estimate, MC preliminaries, MC OH&P, Risk allowances, professional team fees, inflation) • Elemental breakdown • Inflation calculation -Risks calculated • Cash flow, if required

Answer 51

• Land acquisition fees • Legal fees • VAT • Insurances - professional fees (sometimes) - loose fixtures/fittings -asbestos removal -section 106 costs -General contingency

Answer 52

• I wouldn't need a full programme but at least indicative dates are required to inform preliminaries, OH&P and inflation

Answer 53

• Look at areas for value engineering • Look at over and above scope and where works could be omitted, if not required • Look at securing additional funding

Answer 54

• Ambiguous client brief • Unrealistic cost estimates • Project risks not effectively managed • Unknown external factors, for example wars and pandemics • Inflationary pressures or changing market conditions

Answer 55

First principles using price book or historic data: For example, a door: -Materials - door, hinges, ironmongery -Labour - Rate for joiner per hour -Plant - screwdrivers, drills etc

Answer 56

-The international property measurement standard -Provides guidance for the measurement of buildings in part or whole -ensure that properties measured in a consistent way, creating a more transparent marketplace, greater public trust, stronger investor confidence, and increased market stability Main document: IPMS: all buildings

Answer 57

Summary: Internal or external measurements For Whole/part of buildings …. Or selected areas ———- External measurements for whole or part of buildings Internal measurements for whole or part of buildings External measurements required for exclusive occupation Internal measurements required for inclusive occupations Internal measurements for selected areas including internal walls and columns Internal measurements for selected areas excluding internal walls and columns

Answer 58

-Bay windows -Internal dominant face Demising wall = wall that partitions two occupational areas Notional boundary = non physical boundary, eg - door threshold

Answer 59

-International Cost Management Standards, 3rd edition -International standards how to classify, measure, record, analyse, benchmark: construction costs and its life cycle costs and carbon emissions in a structured and logical format. -classifies the standards into areas eg railways, mining, water treatment works, bridges, tunnels

Answer 60

exercise that can be undertaken to demonstrate the holistic cost of the building from construction to end of life. using CROME: Construction Renewal Operation Maintenance End of life

Answer 61

considers all costs associated with a building, including: -construction, operation, maintenance (LCC) -land acquisition -demolition -income from the building throughout its life

Answer 62

Elemental: - Done at RIBA 2 to inform cost of a design solution would be over the life of the building Component: - End of RIBA 4 and compares cost of specific items to inform design solutions, eg carpet tiles vs vinyl, double vs triple glazing

Answer 63

• Scope of maintenance required • Replacement periods for different elements • Time period of appraisal • Method of economic evaluation, for example, net present value

Answer 64

Used in life cycle costing to determine if investment worth it Present value: present day worth of a future cost discounted at a given interest rate…..So is the amount of investment today required to pay for the capital cost plus all future operating costs and interest Net present value also takes this into account, but also considers the INCOME you will gain ——— The sum of the discounted future cash flows. Present value = future cost x discount factor

Answer 65

-Life cycle costing RICS guidance note -ICMS 3 for global consistency of presenting life cycle costs -NRM 3 for order of cost estimating and planning of Building Maintenance Works - RICS Whole life carbon assessment (WLCA)

Answer 66

• Excludes VAT • Excludes land acquisition • Excludes professional fees (if requested by Client) -General confingency

Answer 67

Code of Measuring Practice, 6th edition Provides guidance for measurement of GEA, GIA and NIA

Answer 68

-Contractor / Construction cash flow: for construction and preliminaries only -Employer cash flow: for construction, prelims, professional fees, direct costs etc (wider project costs)

Answer 69

-Ensures if there are any areas where there is a cash shortage is addressed and rectified early, allowing informed decisions to be made -Assists the client in preparing their accounts to ensure cash is available to pay contractor -Can be compared to monthly valuations as a sense check -Assess contractor’s financial health

Answer 70

• Could advise them to value engineer elements of the scheme • If any change requests from client led changes, look at reviewing whether they are a necessity to the works • Look at reducing the remaining scope to ensure the project can still be delivered -Balance between cost targets to aid in VE -Possibly secure additional funding

Answer 71

• Consider the extent of not affording the scheme, ie is it cost overruns, funding pulled, or cash flow issues • Look at value engineering, reducing the scope, freeze on changes, secure additional funding…. If cash flow issue then possibly RESEQUENCING of works • Possibly look at termination of the building contract

Answer 72

• Pre contract this can be OCE's / CP's / PTE'S / VE • Post Contract this can be cost reporting / valuations / EW's / compensation events / cash flow forecasting

Answer 73

• can see what has been expended against the tendered value • can see cost of approved and anticipated changes to see remaining contingencies • if a Target Cost, can see cost the contractor is likely to complete at, which can demonstrate whether there is any overspend and the % they may have to pay on top of that

Answer 74

Advantages: - Client retains design control - Client getting what they want from the scheme - easy comparison as All tenderers tender on the same basis (and so good for public procurement) - Client can obtain cost certainty - Should result in minimum risk premium Disadvantages: - programme may be longer - No buildability input from contractor - Client retains design risk

Answer 75

• Where client requires an early start on site / shorter programme • Where Client wishes to minimise their risk profile • To benefit from contractor buildability

Answer 76

Advantages. - Single point of responsibility - Client transters design risk - Provides buildability input from contractor - Can provide cost certainty Disadvantages: - Client cannot control quality - Can be difficult to compare tender returns - Employer changes will be more expensive (need well developed requirements) - Tenderers will build in risk premium into prices

Answer 77

Construction Management -The Client directly employs the subcontractors to carry out the works -employs a construction manager to deal with programme & coordination of subcontractors to carry out works, but has no contractual link Management contracting • Essentially a main contractor , who contributes to design and does the subcontract tenders • Client employs a "management contractor" to manage trade contractors, for a fee %

Answer 78

• When you have a more experienced client -Client wants high level of control • Where the Client does not require cost certainty • Design is evolving and Employer wants flexibility to make minor design changes • Wants to achieve an early start on site due to overlap of design and construction • Complex project that requires specialist subcontractor design

Answer 79

Advantages. - Early start on site / programme benefits if construction & design overlapped - Client has some flexibility with design - Prices may be lower due to direct contracts Disadvantages: - Client has direct contractual link with subcontractors, and construction manager does not have the contractual relationship, barring them from professional negligence - Cost certainty not obtained until last package is agreed

Answer 80

• Cost certainty not a priority • Wants to achieve early start on site due to overlapping of design and construction phases • Employer wants flexibility to make minor changes to design Get MC input into design, but retain design control Complex Projects that would benefit from MC expertise who can manage multiple subcontractors and their individual contracts

Answer 81

Advantages: - Single point of responsibility - Management contractor can provide buildability input - Programme benefits from overlapping design and construction - Flexibility with design changes Disadvantages: - Price certainty not achieved until last package is tendered and agreed - Requires an informed, experienced employer -little incentive for MC to reduce cost

Answer 82

Least - D&B -Transfers risk of design and construction to contractor Most = Construction management -Clients takes out numerous contracts with trade contractors & construction manager carries no contractual link, therefore barring them from professional negligence

Answer 83

Advantages: - Speed of appointment - No tender analysis required - Process allows for early contractor involvement Disadvantages: - Contract negotiations could be lengthy and therefore cause delays - Cost premium due to lack of competition - Heavy reliance of trust between parties - No competition with other contractors

Answer 84

• Compliance with UK Public Contracts Regulation 2015 • Ensures public sector clients provide opportunity, equality and non discrimination - Once on framework then all projects have met that competitiveness eg competition to get onto framework, with competitive framework rates

Answer 85

• Financial information • Relevant experience / technical capabilities • Health and safety policies & records • Insurance details • Company details • Technical & professional abilities

Answer 86

Advantages: - Client gets lump sum for the works - Gains the most competitive price Disadvantages: - May not be much appetite from Contractors in good economic climate - May lead to increased risk allowances / premium

Answer 87

Advantages: - Allows early appointment of contractor - Can benefit from contractor buildability input - Improved opportunity to identify risk - Increased opportunity for VE (and input from contractor) Disadvantages: - Potential parties will not agree contract sum - Client may be reluctant to dismiss contractor - Contractor has less incentive to price second stage competitively

Answer 88

NRM1 guidance provides a list of preliminaries

Answer 89

FTS (Find a Tender Service) where tenders should be disclosed -When contract value exceeds c.£140k - For public sector contracts only, private clients do not need to disclose in the FTS

Answer 90

• Check all tenders for arithmetic errors • Check for pricing errors • Ensure all items have been captured • Check forms of tender have been signed by an authorised person

Answer 91

• Undertake a financial check, using either a credit check agency (such as experian), or undertake a Dunn & Bradsheet report • Consider requesting a PCG or a performance bond • Undertaking a rigorous PQQ process would likely disqualify any contractors that may not be able to meet the criteria

Answer 92

• If there was not enough responses / lack of competition and would benefit from new contractors • If the design has substantially changed • If the tendering procedure is compromised, eg collusion

Answer 93

• Ensure tender documentation is clear and not conflicting • Ensure there is a fair apportionment of risk • Ensure they have enough time to provide the necessary information • Ensure tendering contractors are suitable, ie by conducting a thorough PQQ process

Answer 94

• Ways that tender documents can be shared, eg disk drive, CD, email, tender portal • Guidance for security when using electronic methods, eg sending and receiving data, eg having a secure network, keeping backups and records of information issued • Guidance on assessing and analysing tenders

Answer 95

Advantages: - All information in one place - Low running cost - Efficient to distribute information to tenderers Disadvantages. - Data requires careful management and enhanced security, eg password protection / two factor authentication - May be a high set up cost for tender portal - May require user training - Tenderers may not receive notifications from portal, which could lead to being ill-informed of addendums

Answer 96

Advantages: - Provides opportunity for new companies to compete for works - Price is likely competitive and so better value for money Disadvantages: - Need for a more robust analysis - Tenderers may not be suitable to undertake the works -Takes longer

Answer 97

Advantages: - Risk reduced as selected tenderers would be based on their capability - Tenderers would generally be prequalified - Quicker process Disadvantages: - Can be difficult for new contractors to win work if unestablished - May get a more competitive price with open tendering, but would likely still receive a competitive price too

Answer 98

• The client • Priorities in relation to time, cost, quality, and risk • Procurement route • Value, nature and complexity of works • Public or private sector client

Answer 99

The Local Democracy, Economic Development and Construction Act 2009 Introduced: - removed requirement for contracts to be in writing, this enables parties to go to adjudication even if they have not had their contract formalised in writing. (statutory entitlement for adjudication already established) - Client must have adequate mechanism for due date and final date for payment.. and dates set out in contract -payment notice must set value before or on due date, and how it was calculated - replaced withholding notice with pay less notice, even if £0 - Pay when paid clauses no longer acceptable -Suspension for non-payment and payment for associated expenses

Answer 100

The construction act states contractors are entitled to interim payments if the scheme is anticipated to exceed 45 days

Answer 101

• The act allows third-party to a contract to enforce the terms of that contract • the third parties must be a beneficiary under that contract to enforce those terms (under NEC, they are named within the contract data)

Answer 102

• Advance payment bond - ensures client can recover the advance payment if contractor fails to fulfill their contractual obligations or becomes insolvent. • tender bond - requested by client and contractor provides it alongside their tender, protects client in case contractor doesn’t honour bid to cover costs of re tendering • Performance bond - if contractor is unable to complete obligations under a contract, client can recover the costs eg getting new contractor • Retention bond - if contractor fails to perform its duties for remedying defects, bondsman will pay the employer the full retention value. Done when contractor needs cash flow assistance • Off site materials bond - used if client pays for offsite materials, and the subcontractor/contractor goes bust (or materials get lost/damaged) then client can claim the amount back

Answer 103

typically covers 10% of the contract value • if contractor is new or unapproved • If there are concerns around the contractors financial • The economy is heading into a recession, and so increased risk of insolvency • Employer may wish to protect their commercial standing

Answer 104

• client would have to pay the premium for the bond • Can disincentivise contractors to complete works promptly and properly Alternatives are: • Retention clauses under NEC and JCT can be executed to withhold monies

Answer 105

• Employer will be liable for all costs associated with contractors non- performance • Costs for sourcing a new contractor would lie with the employer, which is likely to attract a premium

Answer 106

On demand: • Monies are available available immediately without justification required Conditional: • Requires the employer to provide evidence that they have suffered a loss due to contractor non- performance

Answer 107

• MEP • steel work connections • Cladding • Design of temporary works Traditional & CDP: - design responsibility lies with the employer except for certain elements transferred under CDP… for D&B Contractor is liable for whole design

Answer 108

• At tender • performance specification will be provided and contractor would provide the design proposal in their response

Answer 109

Protects the policyholder against liability, resulting in defective products For example, faulty cladding panels —— Coverage for the costs associated with repairing or redoing construction works that have been damaged by any insured event Eg heavy rainfall damages materials or a fire damages part of the works

Answer 110

Domestic chosen by the contractor to execute a package of works. Named when the employer provides a preapproved list of subcontractors to undertake a package of works Nominated Selected by the employer to carry out an element of works

Answer 111

Advantages. - Their work should be of high-quality and acceptable to the employer Disadvantages: - Contractor and subcontractor may have conflicting procedures, ethics, attitudes - Contractor may be able to object under a certain conditions, such as safety reasons, but generally the subcontractor is imposed on the contractor

Answer 112

• Non-completion certificate should be issued and/or pay less notice

Answer 113

No But shouldn’t unnecessarily withhold access unless for health and safety reasons

Answer 114

• Half retention would be released (or an apportionment for the area • Contractor no longer needs to ensure the works • Liability for liquidated damages ends (for that specific area) • Defect period commences

Answer 115

this would be stipulated in the contract, but generally if sectional completion is required by the client, liquidated damages would be agreed upfront

Answer 116

-X5 Sectional completion (pre agreed) -‘Take Over’ is NEC version of Partial Possession Clause 35.2, which allows the client to use any part of the works before the completion date

Answer 117

• Check for frontloading in tender submissions • Request bond for client comfort - Dunn & Bradsheet report • Credit checks, eg Experion

Answer 118

1. Delays: to works 2. New contractor: needed so Client will pay a premium to on board them 3. Subcontractors: won’t have contractual link If not in possession of collateral warranties i.e MEP 4. Can be a lengthy process appointing another contractor

Answer 119

• Contract conditions • Contract data • Schedule of Amendments • Scope / Works Information • Activity Schedule / BOQ • Programme • Bonds / Insurances

Answer 120

Information to be provided by the Contractor: - Contractor details - Fee % - Tendered total of prices - Programme included in contract

Answer 121

• Service Manager (instead of PM) • Consultant (usually the contractor) • Client

Answer 122

• Access Date / Start date • Key dates (for critical path) • Completion date • Total float / time risk allowances

Answer 123

• If the contractor does not submit their first programme, 25% of the prices of work done to date can be withheld • If the contract conditions state monies can be withheld, for example, if collateral warranties have not been provided

Answer 124

In NEC3 - PM can assess the payment due to the contractor themselves tothe assessment date, as if the contractor had submitted an application In NEC4 Now, the PM has choice for amount due to be the lesser of: the amount the PM assesses .. or .. the value from the previous month

Answer 125

Client changes scope Client fails to provide access Client doesn’t provide information Client halts work Antiquities Physical conditions Assumption turns out to be incorrect

Answer 126

- Client - Contractor - Project Manager - Supervisor (witnesses tests & inspections, and ensures works are compliant with scope, law & contract) TW EQUIVALENT IS A NETWORK SERVICES TECHNICIAN

Answer 127

• Supervisor can request search for a defect to contractor which can involve opening up and inspecting works • If it is found there is a defect, Contractor must bare the costs associated with searching & rectifying that defect • If it is found there is no defect, the contractor can claim a CE

Answer 128

• 50% retention released • Client would need to start insuring the building - Ends client’s ability to claim delay damages • May affect Client's cash flow, depending on how early the contractor is due to finish • Defect period would commence earlier • Bonds and warranties are likely to expire once completion has been achieved

Answer 129

• 4 weeks after supervisor issues defects certificate (final account)… actual payment then within 3 more weeks Or.. • 13 weeks after termination certificate is issued

Answer 130

A cost that is not due to the contractor due to reasons outlined in the contract: -Not justified by contractors records/ accounts -Should not have been paid to a subcontractor in accordance with their contract -Was only incurred because contractor didn't give an early warning or do something in accordance with the scope -Rectifying defects

Answer 131

-SC does not have provision for PM / SM, only Client -SC does not include W/X/Y clauses -SC has Retention and Delay Damages as core clauses, not X options like ECC -In SC, contractor must submit notification and CE quotation together -In SC ,contractor assesses the amount due, and the Client can correct. Under ECC, ithe PM who assesses it -SC has no provision for take over or acceleration -SC requires contractor to provide a forecast of completion date on a weekly basis, ECC is 4 weeks -SC has no extra time to accept quotations -SC has no formal EW register/meetings

Answer 132

• JCT Standard Building Contract (with quantities, without quantities, with approximate quantities) • JCT D&B • JCT Minor Works • JCT Major Works • JCT Intermediate Contract -JCT constructing excellence JCT Major project contract JCT Construcgion management contract JCT repair and maintenance contract

Answer 133

• With Quants = Lump Sum (BOQ) • Without Quants = Lump Sum (Can be Activity schedule • With Approx Quants = Remeasurable

Answer 134

-Alternative A = Staged Payments (Activity schedule or milestone payments ) -Alternative B = Periodic (Interim) Payments

Answer 135

-Recitals (project background, parties) -Articles (key data eg: obligations of parties, contract sum, key persons) -Contract conditions (same as NEC core clauses so sets out payment terms, variations) -Contract particulars (same as NEC Contract Data so contract specific stuff eg dates, payment intervals etc) -Schedule of Amendments (changes made to standard contract) -Employer's Requirements -Contractors Proposal (eg design and build contracts) -Contract Sum Analysis (breakdown of contractor's price, often resembling a BoQ, but without requiring one)

Answer 136

Time and cost are dealt with separately Relevant events = entitle contractor to additional TIME eg Variations / instructions, Force Majeure, Exceptionally adverse weather affects Relevant matters = entitles contractor to additional COST… Where loss and expense has been incurred

Answer 137

JCT 2016 - 12 weeks JCT 2024 - 8 weeks the CA / EA should make an assessment within this time and fix the new completion date

Answer 138

These costs for Loss & Expense should be actual costs, which may differ from the Contractor's Contract Sum Analysis / BOQ

Answer 139

• Disruption caused by the employer • Failure to give contractor possession / access to the site • A change in scope / employer’s requirements

Answer 140

‘Heads of Claims’ which are different things that contractor can claim for loss and expense eg: -Prolongation (prelims, labour etc) -Disruption (plant/labour not used efficiently) -Additional works -Cost of compiling claim

Answer 141

Advantages: - Employer gets a fixed price for the works, so has cost certainty - Contractor takes the risk of cost of the works, but also has the potential to benefit from increased profits Disadvantages: - Tender prices may be higher due to risk allowances - Risk for contractor to lose on the scheme if it is not properly estimated

Answer 142

Advantages: - Flexibility in works - Contractors have comfort in knowing all payments will be actual cost Disadvantages. - No cost certainty for client - No incentive for contractor to seek best prices for works or be efficient with monies

Answer 143

• Summary • Measured Works / Activity Schedule / BOQ / Open book interim payments • Compensation Events / Variations • Any adjustments to provisional sums • Total of all previous payments made to the contractor • Plus the other 50% of retention upon completion • OH&P • Any delay damages, if applicable • final account statement to the contractor

Answer 144

-Payment -Completion -Take over -Defects -Termination

Answer 145

-Project bank account -Housing Grants, Construction and Regeneration Act 1996 -Contracts (Rights of Third Parties) Act 1999

Answer 146

Clients: - Prevents time at large - Provides them with a new contract completion date Contractors: - Excuses them from delay damages - Allows for resequencing of works

Answer 147

-Repayment typically deducted from monthly valuations

Answer 148

-Option A - New build - All risks insurance taken out by contractor -Option B - New Build - All risks insurance taken out by the Employer -Option C - Refurb - All risks insurance taken out by Employer All insurances are: Joint names = covers both parties

Answer 149

High risk items listed in the contract eg: fire, lightning, storms, floods, earthquakes Insurance can be obtained for them These are a subset of "Relevant Events" and so entitle contractor to an EOT

Answer 150

-Relative certainty of cost and time implications -Reduction of cost and time implications through mitigation plans -Enables informed decision making as client understands risks and their contingency funds -enhance collaboration and early indication of risks arising -Increased confidence for client and contractor

Answer 151

• Avoidance: Remove the risk or come up with alternative solution (eg redesign pipe route to avoid utilities) • Reduction: If risk does occur, how can the impact be reduced (dewatering) • Transfer: Move the risk to another party (eg ground risk to client or design risk to contractor) • Share: risk with another party (eg clause to share inflation risk) • Retention: Understand there is a risk and control (eg - Client retained risk for rock in ground )

Answer 152

• Risks are present in all projects and must be identified to avoid cost overruns or programme delays - helps clients understand their project's positions at all times so they can budget correctly

Answer 153

• Use a trusted, experienced design team • Transfer the risk in procurement (eg design risk) • Effectively manage the risk register and ensure it is regularly monitored & updated • Early Contractor Involvement to reduce construction risks & provide buildability input

Answer 154

-As project progresses, some risks may have not materialised and so risk allowance decreased -Achieved by constant monitoring and updating of risk register -allows the client to understand their available funds, to enable them to make informed decisions

Answer 155

• Traditional - may reduce client’s risk of changes post contract and control the cost risk of the scheme, but they would retain the design risk • Design and Build - would minimise the Clients risk in relation to cost and design • Construction management - would expose the client to a high level of risk as they would have the direct contractual relationship with trade contractors

Answer 156

-utilises a collaborative, early warning system approach towards risks, which ensures either party makes the other aware of potential risks that could arise - The use of early warnings and CEN’s give the client and contractor enough time to collaborate to reduce the impact of a risk, mitigate altogether, or agree to share etc.

Answer 157

- continually monitor and review the risks to ensure it is always current and up to date with the projects evolving risks - assign the likelihood' and 'impact' scores to each risk, and monitor whether these scores change when updating

Answer 158

• At the early stages this is likely to be a percentage of the construction estimate, which could be based on previous projects or experience • Throughout cost planning stages, a risk register should be developed which can inform the risk allowances to include

Answer 159

Generally it will be given a "worst case scenario" cost, which will be multiplied by an impact and likelihood factor Eg worst case scenario could be dewatering cost per m x length of whole excavation

Answer 160

• Contract Administrator = responsible for administering the contract on behalf of both parties, impartially. CA usually introduces after contract is signed • Employers Agent = Same as CA, but Employer's Agent acts as if they were the Employer, albeit, they should remain impartial.

Answer 161

• Act honestly and reasonable, and understand their actions are open to challenge via alternative/dispute resolutio • Issues timely information, instructions and variations • Assesses delay and grants EOT and cost from variations • Certifies sums due

Answer 162

-In JCT -Issued by the CA to certify that works / section of works have not been completed by contractual completion date

Answer 163

• JCT = Contractor provides master programme at Tender, but has no contractual status • NEC = includes a programme as a contractual document, should be updated in accordance with intervals stated in the contract data (default 4 weeks)

Answer 164

• They can issue an instruction for opening-up and inspection to test the works, materials and goods to determine they are in accordance with the contract specifications / design - In NEC this is called Tests and inspections. Test must be done and If a defect found it is correct red and test is repeated. Contractor obliged to do test but if no defect found then it can be a CE

Answer 165

• when the completion date is passed and no non-completion certificate has been issued (eg event occurs that’s not covered by contract) • Postpones the employers right to recover LD's for late completion • Contractors must finish the works in a fair and adequate timeframe should time become at large For client to claim damages they must prove not done in a reasonable time

Answer 166

• Contractor should notify CA as soon as it becomes apparent that an EOT is required • Contractor shall make efforts to mitigate the effects of the delay • CA would assess the EOT (within 8 weeks), and could request further information from Contractor to do this -CA would notify the contractor, in writing, of their decision

Answer 167

No - this would be covered under Relevant Matters

Answer 168

Depends on payment mechanism, eg NEC4 Option A: - Activity Schedule - Preliminaries and OH&P - Advanced Payments (if applicable) - Schedule of Compensation Events - Offsite materials / vesting (if applicable) - Less retention (if applicable) - Less previous assessments - Net amount

Answer 169

Both are used to assess the amounts due to the contractor for the works completed to date -Payment Certificate = NEC -Payment Notice = JCT term

Answer 170

• Not under NEC • Not Under JCT SBC • Under JCT D&B, due date is 7 days from receipt of the contractors application, or interim valuation date

Answer 171

• Allows the PM / CA to correct the assessment of the amount due to the contractor • Must be issued no later than 7 days before the final date for payment (NEC) or 5 days (JCT) - Also can be used for deducting delay damages

Answer 172

• May not be able to agree terminology • Contractor/Client may not be happy with risk apportionment under contract • May not be able to agree payment terms • Incorrectly drafted z clauses can conflict with core clauses • Conflicting clauses can lead to conflict and dispute resolution

Answer 173

• when works are practically completed and nothing is stopping the client from taking over the works, ie health and safety issues • when all contract conditions have been met, ie collateral warranties • when all as-built drawings have been issued

Answer 174

-Either party must notify PM and other party, giving the reason -PM has to agree that reason given complies with contract before issuing a termination certificate -Parties must continue obligations until this certificate is issued -If party does not agree with the PM’s decision, can challenge through adjudication There are five reasons for termination (R11 to R15, see following section) that require the project manager to first notify the contractor of its default. If not put right within four weeks, the client is then entitled to terminate. A defaulting subcontractor could constitute a default by the contractor by virtue of clause 26.1. -Reason must be listed in contract. Unless X11 used then client can terminate at any time Reasons are: -10 types of insolvency (both parties) -5 types of contractor defaults (failure to comply with obligations) -Contractor can terminate if not paid within 13 weeks (R16). -If work suspended for more than 13 weeks following PM instruction, either party may terminate -Prevention events (force majeure) only allow the client to terminate, and if delays completion by less than 13 weeks. -act of corruption by the contractor -Client is entitled to complete the works regardless of the reason for termination -PM assesses amount due within 13 weeks of issuing termination certificate, with Construction Act stipulating payment due 1 week later -Contractor liable for defects regardless

Answer 175

-adhere to local zoning laws, which dictate land use/development types in specific areas… may limit size/layout -Design Guidelines from local authorities for acceptable building forms, materials… may limit size/layout -Impact Assessment on impact ofc noise, traffic, and drainage. -prioritise sustainable designs -(NPPF) states that poorly designed developments should be refused

Answer 176

-JCT SBC: Contract Administrator / typically an architect, can also be other individual appointed by employer eg engineers, building surveyors, -JCT D&B: Employer’s agent -NEC is project manager -FIDIC is engineer —- -CA oversees all aspects of a contract, from pre-contract preparation to post-completion -Employer's Agent manages design & build contracts, and is the client's representative to make sure work meets their requirements (in POST-CONTRACT only)

Answer 177

Client PM Supervisor Contractor

Answer 178

-provide the Contractor with access to the site, necessary information, and clear instructions -manage changes to the project -ensure payments are made according to the contract / legislation -not interfere with works unless change scope

Answer 179

-following brief/reauirsmsnts -fulfilling all the duties outlined in the contract, -ensuring work is completed in a proper and workmanlike manner, in a reasonable time -complying with relevant regulations and instructions. -ensure safety

Answer 180

Remeasurable -JCT SBC: With Approximate Quants -NEC is option B, not option D as BoQ only used as basis for target cost Reimbursable: -JCT Prime Cost Building Contract (PCC) -NEC options C, D, E, F

Answer 181

-Interim Certificates -Practical or Sectional Completion Certificate -Certificate of Non-Completion: when contractor fails to achieve practical completion by agreed date -Certificate of Making Good Defects: confirms that contractor has rectified any defects identified -Final Certificate: final payment certificate issued upon completion of the project and all rectification works

Answer 182

-Price Adjustment Clauses: eg NEC X1 allows for a Price Adjustment Factor Index (PAFI), ensuring contractor is compensated for changes in costs due to inflation… JCT has options A-C -Risk Sharing: between parties -Early Material Acquisition to lock in prices

Answer 183

Uncertain event or hazard that can negatively affect project cost/programme/safety

Answer 184

Stage 0 - Identify high level potential risks, focusing on budget, program, and sustainability. Stage 1 - NRM risk categories with bespoke percentage for cost/programme impact Stage 2: Concept Design: Establish specific design development risks in a risk register Stage 3: develop on design risks Stage 4: Detailed design risks as well as specific construction risks, also begin planning general contingency Stage 5: shifts to managing risks during construction, shouldn’t be design development risks now Stage 6: Handover: risks of completion, defects, close out construction risks Stage 7: maintenance risks

Answer 185

-Considering client’s requirements and appetite for risk -Eg do they want to take design risk (using traditional over D&B) -Do they want the quantities risk (using a BoQ over activity schedule) -Do they want pricing risk (using lump sum over target cost/cost reimbursable) -Do they want programme risk (don’t use construction management)

Answer 186

pre-contract risk register -both parties identify risks and how can be mitigated -helps contractor understand risks involved to calculate gender price, but does not assign liability post-contract risk register -focuses on ongoing risks and changes during construction -can assign liability and determine who pays for CE Differs from EWN register which is more a carry on from pre-contract register as tackles mitigation

Answer 187

-Every project is different so shouldn’t have standard percentage -Doesn’t take into account probability or impact which could affect risk allowance -Doesn’t consider mitigation strategies -Only use percentage eg in RIBA stages 0-1 but still use a bespoke one for each NRM1 category

Answer 188

-Have discussions with client to consider their requirements and appetite for risk -Eg do they want to take design risk (using traditional over D&B) -Do they want the quantities risk (using a BoQ over activity schedule) -Do they want pricing risk (using lump sum over target cost/cost reimbursable) -Do they want programme risk (don’t use construction management)

Answer 189

-complex projects where ECI is crucial for informed design decisions VE -particularly beneficial for D&B projects -when a quick start on site is required. -increases collaboration / buildability, reduces risk -relative cost certainty from earlier cost and design certainty… and contractor replacing assumptions with subcontract quotes -element of design control as can review contractor’s technical submission and work collaboratively to make changes

Answer 190

-Clearly define their scope, requirements and objectives -Understand their priorities in terms of time, cost, quality …. And risk -Discuss options with client -Manage their expectations in terms of balance of time, cost, quality

Answer 191

Private Finance Initiative -where private companies finance, design, build, and then operate/maintainpublic infrastructure projects -contract can span several decades -so instead of funding project up front from taxpayers, private firms are hired to do this and then make their money back through long-term repayments from the government or revenue generated from the project -it’s a type of public-private partnership (PPP) where the private sector takes on the risks of the public project. Summary: leverages private sector investment and expertise to deliver public infrastructure projects, with the public sector making payments based on performance over a long-term contract.

Answer 192

-enabling early contractor involvement in design process to create a more cost-effective outcome -collaborative approach that results in improved buildability, and reduced risks, ultimately saving time and money. -also can create increased cost certainty and a more accurate understanding of project feasibility.

Answer 193

-formal notification by a contractor to employer (via CA) requesting change to original scope of work outlined in the contract -can be because employer has changed requirements, changes in site conditions, design development -contractor submits a variation request to CA with time/cost impact -request is reviewed to determine its feasibility, impact on the project, and cost and time implications. -request is either approved or rejected, -If approved, employer issues a formal instruction to contractor, outlining the changes and any adjustments to contract -CA then assesses cost and time implications of variation

Answer 194

NEC ECC NEC ECC short NEC PSC NEC Framework NEC TSC NEC Design, build, operate NEC alliance

Answer 195

Efficiency and Speed: -pre-drafted and well-known so less contract preparation and negotiation time -Above also reduces cost as less legal fees and other administrative costs associated with contract development. -Minimise disputes as parties know risk allocation, and proven case law is there is a dispute -All parties will understand it, ensuring everyone understands their roles and responsibilities. -Fairness of Risk Allocation: -Streamlined Project Management: eg CE’a EWN’s l

Answer 196

Z clauses eg -Key date delay damages -Confidentiality (HS2)

Answer 197

-responsible for administering the contract on behalf of the client -but must be IMPARTIAL administration This includes -overseeing project progress -ensuring adherence to the contract's terms -issuing instructions and notifications, -assessing compensation events, -managing the early warning system -certifying payments.

Answer 198

-PM takes a more proactive and hands-on approach, fostering collaboration and early warning mechanisms -CA focuses more on administering the contract's processes and procedures, often with a more traditional, adversarial approach.

Answer 199

-Monitoring Contractor's Work on site, ensuring that the work aligns with the project's specifications and requirements. -Witnessing or carries out Tests to ensure the work meets the required standards -confirms that Contractor's work is compliant with the details outlined in the Works Information, -Supervisor has the authority to notify contractor and issue instructions for inspecting and identifying any defects -issues defect certificate to signify end of defects correction period and work is deemed satisfactory. -Attending Meetings on site progress -preparing reports to document progress, identify issues, and track status of the projec

Answer 200

Provisions of the act include: -The right to be paid in interim, periodic or stage payments if contract longer than 45 days -The right to be informed of the amount due, or any amounts to be withheld. -The right to suspend performance for non-payment. -The right to adjudication. -Disallowing pay when paid clauses.

Answer 201

-PCG obligates the parent company to STEP IN ensure the subsidiary's performance under a contract, -PB is a financial instrument that provides COMPENSATION to client if contractor fails to meet their obligations. —- -PCG creates a SECONDARY obligation (basically to provide a remedy) for parent company to fulfill -PB creates a PRIMARY obligation (basically to not break it in first place) that the third party (bondsman) remedies by paying the amount on demand to client —— -PCG’s liability is usually limited to same as subsidiary’s liability under the contract -A PB bond is typically limited to a percentage of the contract sum.

Answer 202

The Grenfell Tower fire highlighted the exceptional risks associated with tall residential buildings fire and structural safety risks are so severe in these buildings that they deserve a separate building control regime overseen by a new Building Safety Regulator (BSR) The ‘golden thread of information’ is one of the main innovations… and is any secure digital system capable of capturing/sharing all information about the design and construction work needed for the building’s future management and maintenance. will minimise health and safety risks for occupants. ‘One central, source of truth’ for everyone including tenants and emergency services

Answer 203

Materials: Older buildings may contain materials like asbestos Techniques: old buildings more likely hand-laid brickwork, while new ones use eg MMC, prefabrication Regulations: new buildings subject to stricter regulations eg part M for new buildings/refurbs Deterioration: Older buildings may require specialized repair and restoration techniques Energy Efficiency: Older buildings may have lower energy efficiency due to outdated insulation and heating/cooling systems, Solid Walls: Older buildings eg Victorian homes, often have solid walls without cavities, while newer homes do (with insulation) for better energy performance. Windows: Older homes may have sash windows, while newer homes have modern windows with better energy efficiency and thermal performance.

Answer 204

Heat pumps to extract air Fans Green roofs Trees Shading Natural ventilation

Answer 205

VM: Stages Stages 0-1 VE: Stages 2-4, and during construction

Answer 206

Value Engineering aims to enhance the project's value by optimizing costs and functionality, often without altering the fundamental scope. Change in scope, changes the project requirements / deliverables through a formal change procedure

Answer 207

Front cover Summary Information used Exclusions Assumptions

Answer 208

-I (commercial) could not advise on this as outside of my expertise -also, different clients incur different levels eg charities may not pay it -Exclusion recommended by NRM1 -TW tax relief from capital allowances which was complex so didn’t know where it applied and not fully determined at cost plan stage

Answer 209

-by circulating air to regulate temperature and humidity…. to ensure comfort and healthy air quality. -achieves this by heating, cooling, and ventilating the air, which is then distributed throughout a building via ducts and vents. -Key components include the Air Handling Unit (AHU) and Mechanical Ventilation Heat recovery (MVHR) -rather than relying on natural ventilation

Answer 210

-Variable Refrigerant Flow -can be a heat pump system OR a heat recovery system -Uses an outdoor compressor unit (same as normal split systems) which absorbs the outside air (endothermic) to pull refrigerant into the multiple air handlers inside for localised heat and cooling -provides individual temperature control in different zones of a building… so heating AND cooling in different areas -same principle but more advanced than standard air conditioning unit (ductless mini-split) as can vary amount of refrigerant that flows around the system -used on larger buildings eg hospital or hotel eg different heating / cooling wanted in different hotel rooms -energy recovered from one zone can be used in another .. so is sustainable

Answer 211

Split systems: (ductless or ducted)* VRF - heating and cooling simultaneously, for larger, more complex applications with multiple zones eg different heating / cooling wanted in different hotel rooms Air source heat pump (mini split)-… same principle as VRF but can’t do heating/cooling simultaneously…. VRF has better individual zone control so hard for eg hospitals while ASHP’s used for houses AHU - if a more consistent flow of heating/cooling eg industrial unit. Works by collects air from outside, filters it, heats/cools it, distributes it to building... MVHR - extract stale air eg from bathroom/kitchen, air passes through a heat exchanger that recovers heat, fresh air brought in from outside and uses that recovered heat from heat exchanger to distribute back into building Continuously removes stale and circulates fresh.. so improves air quality and reduce energy costs. Other category: Heath pumps *Note: Ducted systems use a central unit and ductwork to distribute air throughout the house, while ductless systems, like mini-splits, use individual indoor units without ducts.

Answer 212

-Works on principle of an endothermic reaction where the outside unit (compressor) absorbs heat and pulls refrigerant to the unit inside to provide heat and cooling -Same as VRF as both use a refrigeration cycle to transfer heat…. but a VRF has better individual zone control flexibility by adjusting refrigerant flow to each zone…while air source heat pumps have a fixed refrigerant flow not as good (usually used for houses) -It is more ENERGY EFFICIENT than CENTRAL HEATING as you can turn it off in sections, as opposed to normal HVAC systems that just blow out air from duct systems

Answer 213

-Works same as VRF, they both use a refrigeration cycle to transfer heat -but a VRF has better individual zone control flexibility by adjusting refrigerant flow (temperature) to each zone -air source heat pumps have a fixed refrigerant flow not as good -so VRF used for eg hospitals and hotels which ASHP’s used on houses

Answer 214

-NRM3 -ICMS: International Cost Management Standards edition 3 introduced life cycle costing -RICS Whole life carbon assessment (WLCA) for the built environment -RICS Practice information: life cycle costing

Answer 215

-Completion date stated in Contract Data -Unlike JCT, NEC does not state that contractor has to be notified before delay damages charged, but it is good practice to give a written notice to avoid disputes. -Decided by PM -Deducted from amount due at each assessment until completion as achieved -Calculation of this is shown in payment certificate … OR can be in a pay less notice

Answer 216

Before, on, or after completion Within 1 week of client taking over works If done before then can be a CE for contractor Also shifts liability for loss or damage to the works from the contractor to the client

Answer 217

-Proper implementation of robust change control -proactive review of risk allowances and mitigation plans, release risk allowance -Value engineering (ie me looking at construction strategy, changing pipe route)… earlier the RIBA stage the better -continuous monitoring of cost targets and transfer -regular reporting of these costs, cash flow/forecast (rolling final account) -client change (CE) freeze -close audit of defined cost (ledgers ) ie increases audit on labour allocation sheets -forecasting by element to determine outturn cost

Answer 218

Reporting everything you know, NOT just written instructions but estimates of CE’s/risk Mention BASIS of where your costs have come from eg estimate Cash flow updated regularly Forecast final cost

Answer 219

For option C (they are shared) Option E, F they can be defined cost It’s only the lump sum ones (options A and B) that the contractor is responsible for all costs

Answer 220

IDENTIFICATION EVALUATION QUANTIFICATION MITIGATION / RESPONSE

Answer 221

Construction costs Compensation events Preliminaries Site staff Contractor design portion Advance payment Retention Materials off site Amount paid

Answer 222

SET COST LIMIT ALLOCATE TO ELEMENTS COST CHECK (constantly) Eg always compare planned costs with the cost limit

Answer 223

Statement of cost Specification / information used Statement of lengths / floor areas CASH FLOW FORECAST Assumptions and exclusions Risk allowances and general contingency Inflation (all in TPI)

Answer 224

Introduction -Preliminaries -Cash flow forecast Financial overview (eg say it’s inclusive of all construction cost, prelim, contingencies etc) Inflation forecast Cash flow forecast Contingency / risk allowance summary Basis of cost (elements / cost limits go here) Information/drawings used Assumptions / inclusions (eg base date for inflation, procurement route, measurements based on current concept drawings) Exclusions (eg demolition work, trial holes … or vat/ land fees)

Answer 225

-Basically a post mortem of the completed project -It is a breakdown of the final project costs in those same elements you did a cost plan with -So what was the final actual cost per m3 of imported topsoil, facilitating works per GIFA, m of pipe

Answer 226

Elemental Cost Analysis -BCIS -in house cost analysis of previous projects Unit cost information -pricing books -in house priced boqs -specialist suppliers quotations -Published Indices Also consider: - inflation - regional variations - abnormal project requirements

Answer 227

-Remove abnormals -Remove risk -Time (inflation) -Location

Answer 228

-Understand and establish clear scope of works / client requirements -set clear Client budget -Information/design available -Location / site plans -Any known risks -begin developing initial feasibility cost

Answer 229

-Constant comparison of estimated expenditure against the elemental cost limits (budgets) -Record and transfers between cost targets -Constant review of risk allowances / contingency -Regular reviews with client -Take into account inflation -Maintain clear documentation -Ensure unit rate information correct

Answer 230

-Meet and discuss to understand why -Advise on their benefits -Consider the procurement route and if a less risky one is needed eg design and build where contractor has design risk -Consider pricing route and if less risk one eg activity schedule or target cost to pass pricing/quantification risk -Ensure their scope/requirements are developed very well

Answer 231

Developed from order of cost estimate to cost plan -gathered detailed project information -conducted thorough market research to build unit rates -developed to a realistic budget with clear contingency allowances. -all communicated clearly on cost implications their decisions and overall financial position of the project Stakeholders: -client: kept them informed and worked with them -designers: produced designs/alternatives and I advised on cost implications -regulatory body: on public TW funded internal project I ensured I was just as transparent as I would be with a client

Answer 232

-Be proactive / identify as soon as possible -Identify what is root cause of cost increase -Communicate this clearly and transparently with client and review the scope/requirements -suggest possibility of scope reduction or increase of budget -Or suggest reallocation of resources/transfer of cost targets -Or suggest Value engineering -Possibly renegotiate subcontract unit rates quotes

Answer 233

Principles of measurement international Published by RICS in 1979 Mostly used in Middle East Simple and easy to use Use for simple projects

Answer 234

-CoMP is a broader….applicable to all buildings except offices and residential buildings -IPMS covers these office and residential buildings and goes into more detail on them -IPMS calls GEA, GIA and NIA: IPMS1,2,3

Answer 235

Level 1: CAD in 2D or 3D. Level 2: 3D environment with data attached Level 3: project model with construction sequencing, cost and life-cycle management information

Answer 236

Non construction costs (land acquisition, rental costs, tax) Income

Answer 237

I would discuss with client the pros and cons of each one: -JCT more for buildings, more widely used so best with least experience -NEC infrastructure/civil or public projects, collaboration required -Bespoke only if very experienced -JCT minor works, intermediate, major depending on project….. or D&B if want contractor design -Similarly NEC ECC for works and different pricing options depending on scope/risk … or can choose a framework, term services, DBO,

Answer 238

Steel Frame advantages : -Strength: High tensile strength, so suitable for taller structures and longer spans. -Lighter: Significantly lighter than concrete, potentially reducing foundation costs. -Design Flexibility: Steel's high strength-to-weight ratio allows for more creative architectural designs with thinner walls and larger open spaces. -Faster: can an be prefabricated and erected quickly, potentially reducing overall construction time. -cheaper as don’t need lots of formwork/curing time Concrete Frame Advantages: -Durability: more durable and resistant to corrosion/weather, so need less maintenance -more economical at 3 stories or below -More Fire Resistant -Better Soundproofing: -Thermal Mass: better at storing heat, providing natural heating and cooling. -Concrete materials are widely available locally, reducing transportation costs.

Answer 239

-Steel frame for warehouses of office where want large spans -Concrete possibly in coastal errors due to resistance to corrosion -Concrete for apartment blocks as good sound and thermal properties -Steel more economical for tall buildings but used for both, need TENSILE strength -Concrete more economical for less tall buildings but used for both C, bridges that need high COMPRESSIONAL strength

Answer 240

-MMC modular construction of repetitive projects -Traditional: more bespoke/flexible structures -Traditional: respond better to variations -MMC can focus more on sustainability eg less waste, factory testing -MMC for speed of construction -MMC for factory controlled conditions -Traditional: less upfront cost -Traditional: used in all instances, MMC limited -Tradifional: can be cheaper on smaller projects as MMC rely on economies of scale

Answer 241

Driven piles - pushed or vibrated into ground Bored piles - drill hole and then add in mesh/concrwte Continuous flight auger - similar as above but concrete inserted as drill goes up Screw - used in hard or flooded soil types Secant pile - create water tight retaining walls

Answer 242

Formal cost plan 1, 2, 3 -Order of cost estimate -Elemental or Approximate -quantities cost plan -Detailed cost plan -Pre tender estimate

Answer 243

-analyse the costs to assess the source of the increase and identify whether any element of work is abnormally high -When the reason for the overspend is identified I would then look to propose value engineering options to my client and design team to bring the forecast back in line with the project budget.

Answer 244

-Information phase: Understanding the project and clients objectives/key criteria -Speculation phase: Listing ideas to provide the necessary functions of the building at the most efficient price. -Evaluation Phase: ideas assessed against evaluation criteria eg greatest potential cost savings -Development Phase: Ideas retained from evaluation phase are developed into workable solutions, then cost comparisons made -Presentation Phase: retained ideas presented to client in a written report. Decisions then made by client on whether to accept proposals

Answer 245

-Greater resources required to do it -Hard to gather data -Hard to predict far into future -Doesn’t take into account defects

Answer 246

• BCIS OpX - operational estimating expenditure -Internal TW data • From sub-contractors and suppliers.

Answer 247

-judges an investment on time period over which the invested sum is returned in cost savings. -best option would be the one that repaid the investment in the shortest time. -often used to evaluate the options for incorporating sustainable technologies or have high initial capital costs to see if they have reduced running costs

Answer 248

-use programme and values from pricing document to populate cash flow -can also split works into separate packages shown on the programme and include individual s-curves for each -Obtaining drawdown schedules from specialist subcontractors and professional consultants can also increase accuracy -alternative approach would be to utilise a previous cashflow from a similar scheme but may not be as accurate

Answer 249

-no as cashflow expenditure unlikely to have a flat profits with same expenditure each week -much more likely to have S-curve profile where at start the expenditure will be low for site setup and enabling works, and as scheme progresses, higher value items eg steel frame and M&E installed, and lessens again towards end for minor finishing items eg decoration, cleaning

Answer 250

If contravenes safety eg CDM regulations Doesn’t comply with statutes or legal requirements. Impossible to comply Outside of contract scope

Answer 251

-If it causes delay then client can claim damages -If contractor notified and carries on for 4 more week, then can terminate -If in defects correction period then can get someone else to do it and disallow these costs from contractor’s final account

Answer 252

-As soon as the regular progress of the work is (or likely to be) affected, to cause contractor to incur loss and expense, they should notify architect in writing along with further information

Answer 253

Matters Employer causing delay, Variations, instructions, not a reasonably accurate approximate quantity, contractor suspension for non payment Events Variations, Instructions, approx. quantity not accurate, client delay / Deferment of site possession, Suspension by the contractor for non-payment, specified perils, force majeur

Answer 254

-Replaced SMM7 which was purely designed for the production of BoQ’s -resulted in a lack of guidance/uniformity for preparing cost estimates and cost plans -so NRM introduced a consistent basis

Answer 255

Steel By tonnes Itemised their respective lengths, weight, and type Type could be: bracing, columns, rafters, beams, purlins Brickwork By m2, Itemised by thickness, construction method

Answer 256

-purpose is to provide an accurate measurement of works for a common /consistent basis for pricing. -Following receipt of Tender submissions, BoQ also forms basis of the Tender Analysis to allow an accurate like for like comparison -Also used post contract stages as basis for the valuation rules of the contract for valuing works and variations

Answer 257

-meet with design team to establish when the necessary information will be available -I would then compile all information necessary from the Design Team eg: drawings, specifications -check there is sufficient information to do a BOQ and that it’s complete (if not an approximate BOQ) -Advise client on measurement method eg NRM, CESMM -Before starting, break it down into elements eg by floor or system -Carry out regular meetings with client on progress and review any updated drawings

Answer 258

- ensure this is provided in the agreed format & detail. -review all the costs incurred to date in respect of Labour Plant & Materials, Staff & OH&P. -carry out an audit of the information & reconcile this against the fee schedules & rates within the contract. • -check timesheets, staff grades & rates, project codes, payroll burden, invoices, subcontract accounts, applications & payments, materials invoices, dates, rates, quants, delivery tickets etc.

Answer 259

o Excavation & dispose of topsoil. o Contiguous or servant o Preparation of excavated surface. o Concrete for basement slab & walls. o Waterproofing, Blinding. o Reinforcement. o Formwork to walls. o Finishes to concrete. o Internal finishes.

Answer 260

method related charges -basically same as preliminaries but for civils…they are one-off items related to the method of carrying out the work that don’t form part of the permanent works eg temporary propping, scaffolding, welfare. CAN BE BROKEN DOWN INTO: time related charges -considered proportional to time taken to carry out the works for eg plant or equipment hire. Fixed charges -charges that don’t vary at all eg software license

Answer 261

collect and record data to help with the design and construction process: o Boundary hedges & fencing. o Existing trees. o Size, depth and location of services including gas, telephone, electricity, water & drains. o Existing buildings. o Ground water conditions. o Soil investigations. o Trial pit information.

Answer 262

-Test soil bearing capacity -Test water level

Answer 263

Advantages •quicker to assemble •100% recyclable -will not warp, split, crack or creep. -offer the highest strength to weight ratio •do not expand/contract with moisture or temperature changes. • consistent material quality obtained as manufactured with strict standards. • non-combustible so will not contribute to the spread of a fire (unlike timber) • lighter than concrete frames and so less foundations needed Disadvantages -require fire protection retrospectively •price often fluctuates so less cost certainty. -requires experienced builders at an additional cost and Resources can be difficult to acquire

Answer 264

Advantages • Fire protection inherent • Low Maintenance requirements • provide good sound and heat insulation l Disadvantages • take longer to erect than steel • complications from cold/wet weather • need for steel reinforcement can lead to issues around price fluctuations and cost uncertainty like steel has • heavier and require larger foundations

Answer 265

Advantages • Fire protection inherent • Low Maintenance requirements • provide good sound and heat insulation l Disadvantages • take longer to erect than steel • complications from cold/wet weather • need for steel reinforcement can lead to issues around price fluctuations and cost uncertainty like steel has • heavier and require larger foundations

Answer 266

Single service connections need to be -0.75m deep -width: diameter + 250mm

Answer 267

-made up of rafters (diagonal) which create the roof triangle - and fixed to top of the external wall by a wall plate. -Where they meet at the apex is a ridge board -roof covering eg slate is fixed to roof battens. -Rafters supported by struts, purlins and roof beams. -Soffit, fascia, and eaves board fixed to end of the rafters

Answer 268

Curtain walling (stick system) Unitised Panellised

Answer 269

• Beams. • Columns. • Purlins. • Rafters. -Joists -Struts -Trusses -Eaves. • Eaves Haunch. • Base Plate. • Apex Haunch. • Cladding Rails. • Cross bracings. • Fixings.

Answer 270

• Strip foundation. • Concrete block foundation wall. • Rebar reinforcement. • Damp Proof Course (wall) -Damp proof membrane (below slab) • Air bricks. • Suspended floor slab or ground floor slab. • Backfilling. • Drainage.

Answer 271

-Refrigeration Cycle: using refrigerant flow, most common type -Evaporative Coolers: draws outside air through a wet pad and heat converted by evaporation of water. These are smaller, usually temporary, cost less -Absorptive Chillers: uses gas turbines (that generate electricity) to also drive the absorptive chiller that produces cold water which runs through radiators in air ducts

Answer 272

-system that controls the temperature in a space by varying the amount of air delivered, rather than by changing the air's temperature -The system is made up of supply and return ductwork

Answer 273

Note:,VRF can be heat pump system (that heat or cool, but not simultaneously in different zones) while a heat recovery system can deliver simultaneous heating and cooling to different zones The heat recovery version of VRF differs from MVHR is that: -VRF uses refrigerant while the MVHR uses air/ducts… -MVHR has the same drawback as heat pump in that it cannot do heat/cooling in different zones

Answer 274

BOTH USE REFRIGERANT VRF can be heat pump system (that heat or cool, but not simultaneously in different zones) But a heat recovery system can deliver simultaneous heating and cooling to different zones ——- So to compare, a non- VRF MHVR has same function as heat pump (no simultaneous heating/cooling) but done with air (not refrigerant) through ducts

Answer 275

-Fan draws in air from inside/outside -Passes through heat exchanger which heats or cools it -Blown back into room through diffuser Smaller scale/More localised than AHU’s, cheaper and simpler than VRF

Answer 276

• Beam / cantilever Bridge • Arch Bridge. • Suspension Bridge or Cable Stayed Bridge. -Truss bridge • Moveable Bridge - Swing bridge, Draw bridge or Lift bridge.

Answer 277

On site: -materials should be for the works. -adequately protected. -Delivered to programme. -In a reasonable quantity. Off site: -Proof that ownership will transfer to the employer upon payment (vesting certificate). • Insurance until materials arrive at site. • Materials clearly labelled • off site materials bond has been provided if required.

Answer 278

• Go to site and inspect works to form a view on the percentage of works undertaken. • Check for materials on site and off site. • Value time related and fixed preliminaries items.l • Value any agreed variations • valuation amount is presented as gross valuation, less previous payment made and retention. • Finally I would send it to PM for them to prepare the payment certificate.

Answer 279

-Incentivise contractor to rectify defects -Provide client with security of getting in a new contractor if current one defaults

Answer 280

• Collateral warranties - contractual link between a party in contract and a third where privity of contract would otherwise prevent it • Third party rights act - does same as collateral warranties if term expressly states that party can benefit eg a tenant on a new property with the contractor who built it • Assignment - eg same as above, or transferring a collateral warranty to a tenant

Answer 281

-where a new contract transfers the rights and obligations of one contractual party to a new third party. Issue with novation: -Whether the new party has the right to take action against the novated party for breaches that occurred before the novation. How does novation affect the employer’s rights? -They lose all contractual relations with the novated party and therefore the right to take action for a breach. -So is common to be a collateral warranty between the employer and novated party.

Answer 282

Prepared when contractor is facing insolvency during project Is forecasted final account plus costs for getting in a new contractor Notional = estimate

Answer 283

Prepared when contractor is facing insolvency during project Is forecasted final account plus costs for getting in a new contractor Notional = estimate

Answer 284

Bonds -Shouldn’t be needed if proper tender process -pay premiums which are unlikely to be called on PCG -Free but not as powerful as bonds as no third party involved

Answer 285

• indemnity is the promise/legal responsibility or to compensate • Insurance is what covers the indemnifying party

Answer 286

-used for eg: early start on site, long lead materials, nstruct initial design or survey works…. While discussions are ongoing regarding the main contract. -They have no legal significance and courts will look at all correspondence between the parties to establish if a contract has been formed (offer acceptance consideration etc) -If no contract determined then quantum merit will be applied.

Answer 287

to harness private sector expertise, efficiency, and potentially reduce capital spending for the government Issues are: -High bidding costs -Can take longer to procure than traditional projects. -Value for money hard to achieve as cost of private borrowing is more expensive than public sector borrowing. -Long term and inflexible contracts which cannot respond to demographic changes eg reduction in school cohort numbers can lead to empty classrooms being paid for by local authorities.

Answer 288

Used for eg hospitals and schools -facility is designed, financed and constructed by the private sector and then leased back to government for a predetermined period of time at a pre-agreed rental cost. • at the end the government can renew the lease, buy out the private sector or walk away • provides the public sector with a way of financing large-scale infrastructure projects based on ongoing revenue rather than using high levels of capital expenditure. • The primary disadvantage is that legal ownership remains with the private sector.

Answer 289

BOT - used on infrastructure projects eg bridges and highways • The facility is designed, financed, operated and maintained by a concession company, for the period of the concession. • Ownership of the facility is vested in the host government from the time of construction completion. • At the end of the period, the concessionaire’s involvement in the project ends and all operating rights and maintenance responsibilities revert to the host government. • The concessionaire retains all toll income during the agreed period. Alternative is Build OWN Operate Transfer (BOOT) where concessionaire for a period of time and then gives to government for free

Answer 290

-Contractor becomes comfortable and second stage price is less competitive -Negotiations might fail and will have extra time and costs for re tendering -takes longer

Answer 291

In accordance with JCT practice note 2017 I would include:- -ITT (Invitation to tender letter) Instruction to tenderers with: -The date and time for return, errors procedure -Indicative programme -Scoring criteria/matrix -proposed contract conditions -Pricing documentation. -Drawings/Specifications. -Scope/Employers requirements. -Pre-construction information -Form of tender

Answer 292

-It depends on the procurement process and size of the project. -If a traditional procurement route with a BoQ is being adopted then I would usually allow around a month in order for the MC to obtain pricing information from their sub-contractors. -For large complex schemes the tender period would need to be longer. -If the tender is the first stage of a two stage tender then the tender period may be a shorter duration of 2-3 weeks. -It is better to ensure there is sufficient time so contractors can price the project correctly rather than rush and encourage contractors to price a high risk element into the tender.

Answer 293

-It depends on the procurement process and size of the project. -If a traditional procurement route with a BoQ is being adopted then I would usually allow around a month in order for the MC to obtain pricing information from their sub-contractors. -For large complex schemes the tender period would need to be longer. -If the tender is the first stage of a two stage tender then the tender period may be a shorter duration of 2-3 weeks. -It is better to ensure there is sufficient time so contractors can price the project correctly rather than rush and encourage contractors to price a high risk element into the tender.

Answer 294

• Once the certificate has been issued to the contractor, the client is contractually obliged to honour payment and cannot withhold money without a valid reason. • I would contact the client and contractor ASAP to arrange some form of payment. It may be that the client has insufficient cash flow for the final date for payment and could defer payment by 1-2 days. • Failing this, or if contractor is unwilling to accept delay, the client would need to find finance through other funds to honour the certificate.

Answer 295

-PM Instruct contractor to remove all defective work at their own expense and time. -PM can notify in writing that they can remain with an appropriate deduction being made from the contract sum. -Instruct contractor to open up and test further work to determine the extent of any non-compliance.

Answer 296

-PM Instruct contractor to remove all defective work at their own expense and time. -PM can notify in writing that they can remain with an appropriate deduction being made from the contract sum. -Instruct contractor to open up and test further work to determine the extent of any non-compliance.

Answer 297

-Minor works - less than £200k, simple -Intermediate - less than 1 year -Standard with quants - BOQ -Standard without quant - work schedule -Standard with approx quants - remeasure All above contracts should have design completed (traditional) -JCT D&B

Answer 298

-written by legal experts. -Rights and obligations of each party are clearly set out -Risks allocated appropriately between the parties. -Parties familiar with the provisions • don’t need to spend time drafting • proven Case law

Answer 299

-PM can be from the employer’s organisation or an external consultant. -PM represents the client and has duty to be impartial when applying the contract. Has full authority to make decisions, -Supervisor is either from the employer’s organisation or an external consultant… and its role is to check that the works are carried out as described in the contract. -Supervisor can also instruct searches or issue defect certificates.

Answer 300

No It only should list risks and mitigation measures anyway Even if it did list the ‘owner’, the party who owns the risk can only be changed by modifying the actual contract A pre-set lump sum also CANNOT be allocated to a risk to be paid to contractor if it occurs… it can only be dealt with through a CE Client having their risk allowances to account for their own risks is a separate internal register not relevant to the contractor

Answer 301

• All the works have been completed as described in the works information (drawings and specifications). • The contractor has done all the works required for the employer to use the works and for others to do their work. • All notified defects that may prevent the employer or others to use the works have been rectified. • The PM has one week to certify completion. • Clause 35 specifies that the employer should take over the works within 2 weeks of completion. If he takes over part of the works, this is a compensation event.

Answer 302

-Acceleration = where the completion date and key dates are advanced for an agreed price. Delays and damages apply from the revised date. -early completion bonus = where the contractor receives a bonus proportional to the number of days they completed the works in advance of the completion date with the original completion date being unchanged.

Answer 303

-The activity schedule does not describe the works to be done; this is included in the works information… so need to cross reference to understand what works are required for the activity to be fully completed. -If the contractor re-sequences the works to meet the completion date, he needs to revise the activity schedule so that the works and methods of working included in each activity are compatible with the programme. -He may take advantage of this to disproportionally load some activities. -The PM can reject the revised activity schedule in this case.

Answer 304

-Compensation events -Changes in a planned method of working (re-scheduling). -Acceptance of a quotation for acceleration.

Answer 305

-The contractor must group in his tender his activities by groups of activities which will form the milestones. -At each assessment date the PM assess the level of completion of each group. Payment is only certified when all activities of the group have been fully completed

Answer 306

Transferring pricing risk to contractor with an activity schedule Transferred ground conditions risk to client as they had a previous project in vicinity and best able to manage it

Answer 307

Part of the whole Cost Management Process is to: -Identify risks and then Undertake risk analysis to ensure accuracy of funds available & manage their release when no longer required. -Assist in the decision making process by providing estimates with a degree of certainty & carry out simulations to determine the level of risk. -Input in mitigation measures -Report on risk allowances/contingency occurring on cost reports, and their release -Provide advice when bidding for work on the level of risk & financial exposure to the company with understanding of market conditions & impact on the project & rates.

Answer 308

-Subjective (expert) options -Decision analysis (event tree, probability tree, fault tree) -Sensitivity analysis -Monte carlo -Probability x impact

Answer 309

-A project team will be formed prior to the workshop and a facilitator appointed -The facilitator will brief the team by issuing appropriate information on the scheme and the purpose/objectives of the workshop to allow preparation to occur prior to it -During the workshop, the following was discussed: Identification of risk & generation of the risk register, risk probability, risk impact, Allocation of risk items to the owner, Agreement of upcoming actions (usually design led), Agreement of review dates for each item for the following workshops. Internal (client team) only. UNLESS IN A FRAMEWORK THEN THE CONTRACTOR IS INVOLVED

Answer 310

-A project team will be formed prior to the workshop and a facilitator appointed -The facilitator will brief the team by issuing appropriate information on the scheme and the purpose/objectives of the workshop to allow preparation to occur prior to it -During the workshop, the following was discussed: Identification of risk & generation of the risk register, risk probability, risk impact, Allocation of risk items to the owner, Agreement of upcoming actions (usually design led), Agreement of review dates for each item for the following workshops. Internal (client team) only. UNLESS IN A FRAMEWORK THEN THE CONTRACTOR IS INVOLVED

Technical - Level 1 Flashcards

(334 cards)