Technical - Level 2 Flashcards

Question

Risk Woodstock WBS How do you deal with changes in risk apportion?

Answer 1

Summary: -Impacts risk register and therefore tender value -ie contractor own risks go into target cost, so if they take on a risk it will increase target ———— The quantified risks impact the tender value depending on who owns risk. -Contractor risks go into target cost -Client risk only paid out as CE’s Best for whoever is best placed to control risk but standard apportion usually covers this unless want to transfer eg ground conditions/remediation risk to client as confident it won’t occur

Answer 2

Summary: -Design development -Employer change -Construction -Other -Done because each real risk that was identified needed a category, so it could offset the cost of that category’s risk allowance (which was originally calculated as % of project cost) ————- Needed to be allotted to each cost category as just had an initial percentage at Stage 0 (feasibility) and so these specific risk took over these percentages. I did this to prevent overlap These categories were allowances for: -Design development risks: for use during the design process eg changes in estimating data, third party risks (e.g. planning requirements, environmental issues), statutory requirements, procurement methodology and delays in tendering. • Construction risks: for use during the construction process to provide for the risks associated with site conditions (e.g. access restrictions/limitations, existing buildings, boundaries), ground conditions, existing services l • Employer change risks: for use during both the design process and construction process e.g. changes in scope of works or brief, changes in quality and changes in time • Employer other risks: e.g. early handover, postponement, acceleration, availability of funds, liquidated damages or premiums on other contracts, unconventional tender action, special contract arrangements Can also allot into categories to help decide mitigation action: -H&S <- CRITICAL -Construction <-CONTROLLABLE -Design <-CONTROLLABLE -Environmental <-INFLUENCABLE -Legal/Regulatory <-UNCONTROLLABLE So: -Critical risks have: mitigation plans -Controllable/influenceable risks have: mitigation plan + risk allowance, -Uncontrollable risks have: risk allowance Risks will be added and closed before construction, but some may still be a live risk during construction. This forms a risk pot for the client to use in the event that the risks materialise. Any risks that remain at the construction stage are monitored by the QS for the client by using the cost report. As the construction project progresses the project team will identify whether the risks can be closed out

Answer 3

Summary -Some risks had fixed cost impacts -Rest given a cost depending on if impact was v low, low, medium, high, v high (see below) —- SOME risks have a fixed cost that can be quantified e.g surveys / traffic management. For the rest, cost impact calculated by giving a qualitative magnitude score that calculates its own cost impact: Magnitude: Very low - 0.25% project cost, 0.25% programme Low - 0.5% project cost, 0.75% programme Medium - 1% project cost, 1.5% programme High - 1.5% project cost, 3% programme Very high - 2% project cost, 5% programme MAGNITUDE METHOD % ONLY USED AT COST PLAN STAGE FOR COMPETITIVELY TENDERED JOBS Negotiated framework jobs (Didcot Valley Park) don’t have cost plan and risk done collaboratively (TW and contractor risks priced together)

Answer 4

Summary: -Stage 0: percentages against NRM1 categories -Stage 1: cost impact of specific risks of probability x magnitude (% of cost and programme) -Stage 2: cost impact of specific risks of probability x actual risk estimate ——- Determine more accurate costs for dewatering as will know programme, amount of excavation open, specific prices of pumps Stage 0: percentages against NRM1 stages Stage 1: cost impact of specific risks determined by qualitative magnitude score of overall cost, multiplied by probability Stage 2: actual estimate of cost impact, multiplied by probability

Answer 5

General Building Cost Index 2.8%….. Used for: Subcontract and Reinstatement (Costs paid to nominated subcontractor)

Answer 6

CPIH 2.46%….. Firmed at REVIEW DATE (when the next quarter starts) Used for: plant, labour, materials

Answer 7

Summary: -GBCI is a COST index so good for plant, labour, materials et -GBCI was used for subcontract costs (not related to TW framework contractor) so OFWAT happy this be used for the CONSTRUCTION SPECIFIC costs -Could be used for everything, but OFWAT preferred CPIH for rest of costs as better reflected inflation that customers face ———— Indices can be: -Tender (like TPI) which measures changes in prices at ‘commit to construct’ stage after agreed tender. Used for COST PLANS -Cost (like GBCI) which measures changes in costs of resources purchased by constructors at any point BCIS General Bullding Cost Index (GBC|) measures the change in costs to the contractor for obtaining their input costs of labor and materials. This index tracks the trend of contractors pricing levels in accepted tenders, providing a more tailored reflection of inflationary pressures specific to the sector. General Building Cost Index measures average cost from all buildings from a basket of labour, plant and materials (the contractors Internal costs of cotaining these inputs) This is a COST index (so more specific) while TPl s a TENDER (price) index (more broad eg including risk) There are other subdivision indices like BCIS steel frame index Both indices forecast 5 years ahead GBCI less volatile/erratic/dependent on market conditions than TPI, partly as TPI is for entire tender and includes risk allowances

Answer 8

Take index for future month and divide it by the index of the current month Eg 372.8 / 334.6 = 1.114 This is what you multiply by the current rate

Answer 9

Summary -OFWAT determined should be used as better reflects the inflation rate that customers face….. So TW used this. -GBCI was used for subcontract costs (not related to TW framework contractor) so OFWAT happy this be used for the CONSTRUCTION SPECIFIC costs ——— Used because OFWAT determined that CPIH be used as the inflation measurement for index price controls, stating it better reflects the inflation rate that customers face….. So TW used this. It is also the primary focus of the Office of National Statistics, as the most comprehensive measure of inflation. CPIH is a measure of the costs associated with owning, maintaining and living in one's own home, known as owner occupiers' housing costs (OOH), along with council tax. However GBCI was used for subcontract costs because it was CONSTRUCTION SPECIFIC and costs move differently to general inflation Note: PAFI not used as wasn’t a trade index for specifically water

Answer 10

Summary: -Contribute to overall cost plan -Provide client with expected staff costs over entire project -Internal staff is TW and external is consultants, although TW staff basically consultants to the client too ————- To contribute to the overall cost plan, providing an estimate for the client of mandatory costs to run the project from start to finish, and effectively the equivalent of fees a consultancy charges Internal staff = TW staff because standard forms of appointment are NOT USED External staff = design consultants

Answer 11

Summary: -Average of FINAL COSTS from similar projects -Costs of each staff category depending on project value -Eg project is £500k then PM is 4% of costs, design is 5% of costs, operations (eg site management) is 2% -Similarly if project is £2m then its 2% ———- Used estimating system to gather similar projects to produce average percentages of TW (internal and external) costs in comparison to overall cost. This produced differing percentages of costs for each increment of cost For example, the increments were: £20k £20-50k £50-150k £150-500k £500k-1m £1-2m With each one having a different percentage for: PM, Design, Commercial, Construction Management, Operations, Gen OPCs, Overheads For example: For up to £20k PM=21.01, Design=36.88, Commercial=11.54, CM=9.29, Operations= 3.95, Gen OPCs=2.38, Overheads=11.3 Total: 85.05% For £150-500k PM=3.74, Design=4.92, Commercial=2.52, CM=5.32, Operations= 1.88, Gen OPCs=6.95, Overheads=9.53 This shows how the total % of TW costs within the total build cost (contractor cost) reduces the bigger the overall project value. -Initially, design is the biggest cost of total cost,but by £2m projects it’s only 4% -PM goes from 25% to 5%, not as big a drop -Commercial and Operations stay similar in proportion to total project cost -CM costs in proportion increase from 11% to 25% The only actual one that grows slightly in actual percentage is General OPCs from 2.38 to 7%. This translates to 3% to 54% of Note: OPC = other project costs (has PO attached to it) and is e/g land agent costs, surveys

Answer 12

Summary: -actual (committed) cost reports of timesheets for each staff category -design costs are actual cost and should have no more at construction -commercial and PM use actual cost, PLUS forecasted costs for construction stage -Labour using historical data as all costs during construction stage ———— Using actual (committed) cost reports to determine: The cost of staff so far: eg QS’s, designers, estimators at the cost plan/design stage I then forecasted costs for during the construction stage using the current costs PLUS forecasts based on historical data from similar scope projects/values, such as: -QS costs doing AFP’s and CE’s -PM costs for construction which will vary depending on project value/scope -Labour PM costs for construction which will vary depending on project value/scope -Estimated contractor preliminaries which will vary depending on project value/scope Did a prediction using judgement and looking at CJI3 for other similar projects on how many hours needed each month for AFP’s or PM on site Should be no more for designers unless design change — I then got all of these costs and worked out the percentage breakdown of each staff category. This could then be submitted for RIBA stage 1 estimates of future projects Note: Although, as this was a £1m project the costs could only be submitted for the £500-1m category

Answer 13

Diversion Section 185 places a duty on TW to divert pipes in land upon receipt of interested party to allow them to carry out work. Does not apply to streets (that's NRSWA). Often can be done by developer but strategic ones have to be done by TW. Funded by customer Requisition Connection to TW sewer and can't do it themselves e.g it needs to go through a third party's land to get to TW's sewer. TW then selects suitable route, does design and constructs a lateral sewer/drain Funded by customer NRSWA Done by highway authority defined in NRSWA and carrying out road works in street, TW will contribute to costs of diverting their assets if they’re affected by your work. Can be diversion or requisition. TW contribution of 18% Waste Water - Network Reinforcement Section 94 of the Water Industry Act 1991 places a duty on sewerage companies to maintain their sewers to ensure that their area is effectually drained Funded by TW (from infrastructure charges) — Note: Infrastructure charges are a one off charge, charged by all water companies for first time connections. Each new connection that adds a demand to our water and sewerage network will incur these costs. Every servs/main job has infrastructure charge of £885 for clean and £455 for wastewater added to each job

Answer 14

Clean water -Medium density polyethylene -Ductile iron for larger diameters Waste water -High density polyethylene -Vitrified clay due to long life and resistance to domestic/industrial sewage, particularly the sulfuric acid. -Ductile iron for larger diameters Concrete also used for very large sewers. Old jobs used case iron and ductile iron for both clean/waste.

Answer 15

Gate Valve/sluice valve, - opens by lifting a barrier (gate) out of the path of the fluid Washout - used to empty a pipeline or dam of sediment District meter - section of a water distribution network, allowing utilities to monitor the flow of water into and out of that specific area, helping them identify leaks, assess water consumption patterns, and manage water losses within that zone Flange: how ductile iron pipes are connected

Answer 16

Under Pressure Tee/Fitting (UPT / UPF) – used when: -want pipe connection to go directly above pipe -when don’t want to shut off large length of pipe eg hospital, used as linestops as has no interruption to customers or supply -No water contamination issues -No drain down time -No planning works for reconfiguring supply to customers -Rapid installation -No customer warning (System not being depressurised) -Time and cost savings: UPTs can be used under live conditions, so there is no need to disrupt supplies. -Reduced excavations: Only a small amount of working space is required. Is a type of pipe that allows for live branch utility connections without shutting off the supply. UPTs are designed to be efficient to install without having to remove studs to prevent contamination of threads and dropping Cut out connection -less maintenance required/chance of leak -you are actually replacing the pipe rather than clamping on old one so improving the network Small SoR connection Line Stop Isolates leaks (to fix) or if want to shut off main to make connection

Answer 17

Summary: -Abandoning methods (cut/cap, grouting, removal) -Thrust blocks -Excavation: stepped, open excavation (with trench support), moling Different ways to abandon a main: -cut and cap,grouting, or even just removing pipe -Thrust blocks to prevent pipe pulling away -Different excavation types depending on ground conditions e.g stepped or trench support -Commissioning methods Servs jobs: -drilling into a ductile iron mains pipe Required Excavation, connect with developer, see images.

Answer 18

Summary: -Normal: cut both ends and put in a tee -New pipe: no cutting required -Back to back: half cutting required -Linestop: full cutting required + 2 UPF’s ———— To determine whether a cut-out is payable when installed on: 1 Normal scenario of cutting both ends and putting in a tee Atypical scenarios: 2 Installed on a newly laid mains pipe by, and if this is deemed to be included within the ‘mainlaying’ rate. 3 If a back-to-back connection is installed onto an existing main. 4 Line stop: contractor also applying for cut-out on the inner cutting portion of a linestop (and then two UPF’s do bypass)

Answer 19

Summary: -Normal: full cutting so full labour and plant, fitting cost -New pipe: no cutting, fitting cost, Labour for fixing (not cutting) and no drain down time, some plant, less time for TM as not shutting down main NEW RATE -Back to back: ….. half cutting/labour/plant required NEW RATE. -Linestop: full labour, plant, mat for cut out, plus 1 or 2 UPF rates ——— 1 Normal scenario of cutting both ends and putting in a tee -FULL LABOUR Atypical scenarios: 2 Installed on a newly laid mains pipe, and if this should be included within the ‘mainlaying’ rate. …. no cutting required = fixing only labour and no extra plant so could argue included in mainlaying rate… and less time needed for TM as not spending it shutting down/isolating main but agree new rate as labour for: standing time spent requesting NST to shut main, wait for shut main to drain down, the actual fitting - NEW RATE NEEDED 3 If a back-to-back connection is installed onto an existing main. ….. only half cutting required = half labour. But labour is required to provide the shut and flush out of the existing main, or to maintain a flow between the developer’s and TW’s main Washout to prevent the need for a shut. - NEW RATE NEEDED. Further factors can affect how suitable a cut-out connection rate is when applied to a back-to-back connection. For example, if the existing main is ductile iron and the new main is PPE then a simpler ‘unbolting’ and flange is needed to make the connection, removing the need for any cutting out to be performed and making the process more attributable to a that of mainlaying. Also need TM time to isolate/shut down pipe. Extra plant needed 4 Line stop: contractor also applying for cut-out on the inner cutting portion of a linestop (and then two UPF’s do bypass) …. inner cutting portions still more akin to UPF’s - highlighted a need for a linestop rate to be created (fittings only as labour is sucontracted)

Answer 20

Summary: -Flex Good for: tight spaces Bad as: air leakage -Rect Good for: tight spaces, low pressure, aesthetics Bad: cost more, less efficient, noisier -Circ Good: quicker, cheaper, high pressure, lots of bends Bad: low pressure, tight spaces, aesthetics -Plastic Good: high corrosion area, used for industrial fume Bad: high pressure, flammable, -Flameshield: smoke extraction systems eg kitchen, 2-4 hrs fire resistance ———— Flex - Good for: tight spaces (eg wall cavities), short duct runs, temporary use, unusual spaces, Bad as: more prone to air leakage at seams so lower HVAC system performance, prone to tangling/crushing in tight spaces Rect ductwork - Good for: tight spaces, on ceilings, better for low pressure systems, look better generally especially if exposed like warehouses Bas as: noisier, cost more initially, less efficient as square has less flow at corners (compared to more efficient circle) Circ ductwork - Good for: more common and generally easier to install (e.g join pieces together or connect to fans.. ,much better if lots of bends, and easier to drill a round hole ), quick installation, increased airflow, quieter, cheaper Bad as: take up more height so bad in tight spaces, less efficient with space, inefficient for low pressure systems, unappealing to eye when connecting to main rectangular duct Flameshield - Used in ventilation and extraction systems, such as kitchen, smoke, and car park extraction systems , Used in stair pressurization systems to prevent smoke from entering critical areas, Used in buildings where building codes require 2–4 hours of fire resistance (Lambeth College). Flame shield insulation is used in areas where there is a high risk of fire, such as in multi-story buildings, stairwells, and escape routes. It can also be used to protect ductwork and stoves. https://www.gardnerco.net/applications/smoke-extraction-systems/ Plastic duct Good for: exteriors (especially in area where metal could be corroded or interior chlorine treatment rooms), space is tight (toilets) Bad as: flammable areas, high pressure systems, high dust particles At Gardner used for industrial fume. Toilet extract = axial, centrifugal, and inline fans

Answer 21

Smoke Dampers - specifically designed and installed in the ductwork and air transfer openings to prevent the passage of smoke between sections Volume control dampers - help adjust the airflow volume to other parts of your duct system. (NOT FOR SOUND) Fire damper - prevent spread of fire a typically installed in fire resistant rooms of larger buildings, such as schools, hospitals, factories, and office buildings, triggered to close when smoke detector activates

Answer 22

Summary: -AHU -MVHR -Air, ground, water source heat pumps -VRF -Fan coil unit -Axial fan for low pressure systems ———- **For MHVR and AHU’s see level 3** -Centrifugal fan - moves air, which can help improve air quality and remove moisture and odors. -Axial fan -as above but are low pressure systems and cool electronic equipment, computer rooms, and other spaces. -Inline fans - mounted in a duct, rather than directly on the wall or ceiling, save space and extra movement -Fan coil unit - device that heats or cools a room using a fan and a coil Air Terminals (FO) -Diffusers - distribute air evenly around a room or in specific directions. They are often used in high-volume rooms, or when it's difficult to distribute air freely. -Sound Attentuator's (FO) - used to control noise from fans, air handling units, and other equipment -Actuator - device that converts energy into mechanical motion to control or move a system

Answer 23

Contractor CE notification: -PM has 1 week to assess - reject or instruct -After 1 week, Contractor can notify and PM has another 2 weeks,and if still no response is deemed to instruct quote Quotation: -Contractor has 3 weeks to submit quotation -PM has 2 weeks to respond, and if still no response then contractor can notify. If still no response after another 2 weeks then quotation is deemed accepted -If PM does respond they can either instruct contractor to resubmit quotation, notify they will make their own assessment, or accept.

Answer 24

-Whether EWN/CEN within 8 weeks of becoming aware (note: only CEN stops the 8 week timer) -In list of NEC CE’s (delay/cost was caused by TW ) -Whether instruction issued following notification

Answer 25

The contractor encountered uncharted services not mentioned in Site Information. 60.1(12) Contractor encounters physical (natural or man made) conditions which: -are within the Site -are not weather conditions; and -an experienced contractor (objective test) would have judged at the Contract Date to have a small chance of occurring that it would have been unreasonable for him to have allowed for them This then needs to be read in conjunction with either: Clauses: -60.2 (site worse even after contractor has taking into account site information, visual inspection, public and reasonably obtained information) Or -60.3 (site information eg borehole log is DIFFERENT to actual site). In this case, it is So this is a bit different as for information NOT included in Site Information while 60.3 is when it has been included but isn’t accurate In this case I used 60.2 as contractor would not have known uncharted services were there and couldn’t have allowed for it So this one (level 2) is 60.1.(12) -> 60.2 Note: Physical conditions is not limited to just ground conditions and, for instance, may apply to an existing building for; the discovery of asbestos, dimensions not being as shown on as-built drawings, structural materials being different to that expected, etc.

Answer 26

During a post-site walk off, it was not picked up prior to completion. The period up until the final defects date (which follows certification of completion) is not a chance to correct problems apparent at completion, it is the period during which the contractor may be recalled to rectify defects which appear. If there are defects apparent before, then these should be rectified before completion certificate.

Answer 27

Summary -Defects date typically 12 or 24 months after completion -Within this are mini defects correction periods eg 2 weeks -if not done in that time then client can get someone else to do it and recover cost from contractor ———- -Defects date is 12 months after completion -2 week mini defect rectification periods -Unless health & safety related then it’s 2 days If defects notified before job is finished, they have to be corrected before end of defects correction period, which starts at completion of project. These are basically the snags that you see, eg you walk the site off and able to say work has been completed but there’s a list of things that still need to be corrected If further defects arise after completion, then the timeframe starts the date the defect is notified. Note: JCT doesn’t have these Defects Correction Periods.

Answer 28

Summary: -46.1: contractor WAS given access but didn’t correct defect. -So PM assesses cost to client of getting someone else to assess that defect and recovers it from contractor -Didn’t choose: 46.2 as this is when you don’t give contractor chance to rectify. Usually recover less cost as can only recover cost of the original contractor doing it (not someone else) .. so you can’t recover as much ———- What I chose: -Contractor WAS given access but did not correct defect > Clause 46.1 PM assesses the cost to the client of having defect corrected by others and contractor pays that amount > Clause 46.1 (Scope treated as having been changed to accept defect) E.g Bring in another painter and assess costs of how much to bring in that new painter and contractor has to pay that What I didn’t choose: -Contractor WAS NOT given access to correct defect > Clause 46.2 PM assesses the cost to the contractor of correcting the defect and contractor pays this amount > Clause 46.2 (Scope treated as having been changed to accepted defect) E.g If didn’t give contractor fair opportunity to come back. The defect still has to be fixed but different when it comes to assessment: assess it as if contractor came back themselves to fix it themselves even if they didn’t, which would be lower than bringing in someone else ie no profit margin and likely less efficient than contractor doing it

Answer 29

Summary: -Defects date typically 12 or 24 months after completion -Within this are little ‘Defects Correction Periods -Defects certificate at end of 12/24 months -PM 4 weeks for final account assessment - PM has to pay within 3 weeks -contractor 3 weeks to dispute ——- -Defects date* for TW is 12 months after completion. -Within this there are little ‘Defects Correction Periods’ which at TW is within 2 days for H&S related and 2 weeks for standard issues -On the ‘defects date’ the ‘defects certificate’ is issued (listing any outstanding defects if there are any) or soon after (providing all defects corrected). -Within 4 weeks of defects date have to go through final account process which requires PM to issue final assessment to set out how much contractor will be paid. Includes extra adjustments not relevant to actual/customer’s costs (project account. This could be eg any retention to be paid to contractor minus disallowed amounts for not correcting defects. -This then has to be paid within 3 weeks - If the PM fails to do so, the contractor can submit their own assessment NOTE: Under clause 50.3 If contractor not happy with amount then have to challenge it within 4 weeks. If not challenged then deemed accepted and cannot go to adjudication/ arbitration etc. Draws a line under project *Defects date and defects correction period can be amended in contract data part 1. Also note that ‘defects liability period’ is not a term used in NEC Value of the adjustment to the final account must be agreed between the employer and the contractor and will form part the statement of final account NEC/TW final account includes: costs taken from retention for defects, release of retention, amounts still withheld from no substantiation, liquidated damages, compensation events (should be done prior but e.g Radley College didn’t) Note: RETENTION NOT TAKEN FROM SUBCONTRCT COSTS ----------------- 53 - final assessment: new under NEC4 which DOES have a final account whereas NEC3 didn’t

Answer 30

Paid for from RETENTION Retention of 3% from each payment of the amount due to the contractor Any sum set off against the retention should be fully justified. NEC issues a defects certificate listing the defects outstanding at the end of the defects period. —— If the final account has been agreed at the point of completion then the employer can release ‘the part of the retention (typically a percentage) stated in the contract up to the final account settlement figure. However, if the final account has not been agreed and a difference of opinion remains then the employer is entitled to release retention only up to the amount they believe is payable under the contract. When the final account is agreed it is not uncommon for another payment certificate to be issued. In NEC FA not agreed until after defects liability period anyway

Answer 31

Summary: -main and secondary options -key/completion/sectional dates -defects date, correction period -payment timeline/intervals -CE information -client insurances ———- Section 1: pricing mechanism (main option), secondary options, PM Sections 2/3: if there are any Key Dates, any sectional completions, starting date, access date(s), Completion Date. Sections 4 and 5: when the quality plan submitted, defect date, defect correction period, payment intervals, payment timeline, target cost % Section 6: information related to compensation events eg weather data additional CE’s, value engineering ratio (for options A&B) Section 8:, any additional Client liabilities, insurances and levels

Answer 32

Summary: -details of guarantor (parent company) and beneficiary (current company) -chose over performance bond (X13) as there WAS a parent company. Usually one of these is required for client protection ——— Chose this over performance bond (X13) as I identified the contractor was a subsidiary: Normally one of these will be included to give the Client protection on the event of the Contractor defaulting on being able to fulfil their contract works. X4 means a parent company (the ultimate holding company) will step in to see the works through. Alternatively, where there is no parent company, an X13 performance bond would pay out a sum of money to allow the Client to get someone else on board to complete the works. Normally the only issue/risk here is agreeing the wording of the ultimate holding company guarantee that both sets of legal teams are happy with, or for X13 the amount of performance bond the Contractor has to provide and hence consider within their bid. What I did: I entered the name of guarantor (Barhale Holdings), beneficiary (Barhale Construction Services Ltd), agreement date, services provided,

Answer 33

Allows Client to retain a percentage of the “Price for Work Done to Date” each period cumulatively, with half the amount released at the point the Contractor achieves status of Completion and the other half retained until the Defect Date (to encourage correction of defects).

Answer 34

Summary: -Used when contractor has constructed pipe but is a leakage that prevents hitting minimum flow rate litres per second -So same principle as delay damages, but lower value, with a estimate of cost for reduced capacity, eg cannot feed as many houses -Listed in defects certificate ——- This is where the Client sets a performance specification to be achieved e.g. pipe to deliver X amount of litres per second If this performance level is not achieved so that it is listed in the Defects Certificate, then damages will be charged to the Contractor for that under performance. Has to be a genuine pre estimate like delay damages. For most projects this would simply be a defect that is expected to be corrected and hence X17 is not often used but can be quite onerous if it is. I drafted: The amount for low performance damages are: Amount ‘……’ for performance level ‘……’ -For TW any leakages after survey that cause a delay: had a sum of £5,000 per week (same as delay damages as they dp the same thing, basically another way for delay damages to be claimed.) -If flow velocity not sufficient All in accordance with asset standards as these are very important

Answer 35

Summary: -Limits contractors liability for delay/performance damages to 10% of total of prices -Contractor may refuse to tender without it, as could not afford it and insurance may not cover for unlimited liability ———- Applies to delay damages and performance damages If X18 is not included then the Contractor has unlimited liability - which is not a risk most want or can afford to take, and they may also find their insurances do not cover them for unlimited liability. Several Contractors/Consultants have refused to tender on this point alone as not a risk they are prepared to take for their business. Lots of risk in performance damages for poor work, so parties agreed a limitation to their liability for indirect or consequential loss to satisfy the terms of their professional indemnity insurance. I This contract was a limitation of: 10% of the total of the Prices

Answer 36

Summary: -Open book -Against full schedule of cost components -Option E used when scope not well defined/urgent, and not commercially viable for contractor to price a lump sum —— Initial phase is ground investigation ie trial holes, uncertain ground conditions, Low value projects Open book accounting This option is suitable when the works are very urgent or where the scope is not well defined, or where the risk would be considered so great to the Contractor it may not be commercially viable for a Contractor to price it under a lump sum or even target cost type arrangement. Valued against FULL schedule of cost components Compared applied costs against agreed tender

Answer 37

Summary: -open book accounting, paid on defined cost plus fee -C D E F: forecast how much contractor is due up to next assessment period so they aren’t a month in arrears.. facilitates cash flow -Option A CE’s are new items in activity schedule -Option C CE’s adjust target cost ————— Payment Options C D E F: forecast how much contractor is due to be paid until next assessment period The Contractor is paid forecast Defined Cost plus Fee. This is to make Option C effectively cashflow neutral for the Contractor so they aren’t funding the works, without this the Contractor’s payments would be a month in arrears. The forecast element will be for Defined Cost that has been invoiced but not yet paid at the current assessment date, but is Defined Cost which the Contractor knows they will have paid before the next assessment date. CE’s Option A: Compensation events are assessed as the ‘change to the Prices’ in the form of changes to the Activity Schedule, which means that an implemented compensation event is added to the Activity Schedule as an additional item, so that it can be considered for payment purposes. As they are new activities, the contractor is only paid when the activity is completed Option C: changes adjust the target cost. Activity schedule doesn’t really have any meaning on target cost once the tender has been agreed

Answer 38

Summary: -Release half retention -End contractor’s liability for delay damage -Possession of site is now client’s -Contractor no longer needs to insure works as site/works damage is client’s risk -period until defects date begins ——- -Release of 50% retention -Employer takes possession and control of site/building (or part of it if sectional) -risk of loss or damage to the works passes to the client, which terminates any further requirement on the contractor to insure and secure the works -end of any further liability for delay damages, whether liquidated or unliquidated -commencement of defects period (in NEC is unnamed and goes until Defects Date) -milestone payment or release of retention monies -a requirement for an account of the works to be prepared -obligations under third party agreements e.g funding arrangements, bonds, guarantees, leases, sale agreements, etc. Sectional completion In the ECC, if the employer does take over part of the works, it takes on risks in relation to the part of the works because of clause 80.1. This states the employer is liable for loss of or wear or damage to the parts of the works taken over (with a few exceptions). Loss to or wear or damage to the parts of the work taken over is therefore a compensation event under clause 60.1(14). In this case the employer should use secondary option X5, sectional completion and then may use associated delay damages for late completion (secondary option X7). If the employer does not want to take over a part of the works, then a key date may be appropriate. If so, the employer needs to be aware of the lack of clarity for the bidder on the consequences of it not meeting the key date – and might chose to use a Z clause to put a predetermined amount of damages on not achieving the stated condition by the key date.

Answer 39

In a framework agreement TW funded projects in framework, and have passed public procurement rules

Answer 40

-Uploaded tender documents eg drawings and site information to a shared folder for contractor -Issued to relevant person who had to action it -During tender negotiation I submitted my assessed tenders on the platform

Answer 41

Summary: -Assumed no new trial holes as form part of excavation -Assume third party access granted -Assume plant charged continuously but larger plant (13T excavators) off hired to other framework projects -Assume no topsoil/seed needed -Assume 9 hr working day ————— 1 Stated item 2 Agreed comment -- Assumed additional Trial Holes not required as current ones already have logs and new ones and will form part of new excavations Assumed that the customer allows access to connection point A to enable concrete pour…. Risk included in risk register (TW risk) Price is based on Saturday only for completion of connection A Water pumps will be onsite for duration of works (even when no works being undertaken) but 13T machines will be off hired during periods when they are not required to other framework jobs (listed in overall delivery programme)… no change to target cost as will be cost saving on other framework project (unless it’s a CE) Assume 9 hour working day Assume no unusual dewatering requirements Assumed no top soil and seed is required for reinstatement. Bed and Surround and Backfill only. Steel fixers have been priced using Ganger and Skilled Labour rates as contractor unable to provide actual subcontractor quote before agreement of the Target Cost

Answer 42

Summary: -Allowed to correct if have a justified reason…. Or threaten integrity/value for money of project ———- Had meetings with contractor to talk through errors and omissions - as a negotiated tender -Formula error doubling up of programme -Incorrect framework rates -Formula error causing underclaim e.g Network Plus have divided hire rate by 7. If it is only being claimed for Mon-Fri, it needs to be divided by 5 Allowed contractor to amend errors in accordance with JCT Practice note method 2

Answer 43

Summary: -Clearly recording cost differences of each iteration -Comparison between original version, corrected version, and assessed/agreed versions -Broken down into pricing levels and cost components -Abnormals/differences compared against benchmarked (stage 1) figure ———— -Outlining the cost differences of each iteration, compared with the contractor’s original price and my standardised/corrected version of arithmetical errors -All costs broken down by cost component/pricing levels . This allowed value for money to be demonstrated against benchmarked values (same as Design Econ level 3) Changes made: -Incorrect quotes Rates, -ganger/skilled labourer was being subcontracted with no explanation -Insufficient programme duration allowed for activities, -Lack of substantiation for subcontract costs. -Risk allowance very excessive due to several risks priced at 75% probability -Arithmetical errors causing inflation of target cost. -Time sensitive costs (Plant, Labour, On-Cost) linked to TWUL assessment of programme duration. -Re-assessment of risk register. -Incorrect management fee -Remeasure excavation -- Checklist: Arithmetical Errors Assumptions and Exclusions Quoted Rates Supply Chain Costs (subcontract) Management Fee Durations align to Programme Resource Utilisation Risk Comparison with EES Priced scope aligns with pricing schedule

Answer 44

Summary: -The date and time for return, errors procedure -Indicative programme -Site information -Scope/Employer’s requirements -Pricing document (activity schedule) -Project information schedule -Current design/specification -Works packages -Qualitative criteria/scoring matrix -Contract terms and amendments -Preliminaries -more detailed Questions on H&S, experience, CV’s, financial standing -Form of tender -proposed contract conditions -Pre-construction information -ITT (Invitation to tender letter) ——— Project Information Schedule - setting out list of relevant project information Employer’s requirements Current design drawings Works packages required (solution needed from contractor) Pre construction information Invitation to tender - see JCT practice note Form of tender - states contractor has examined: drawings, specs, employer’s requirements, contract, construction phase plan, other documents and states tender sum and programme length Preliminaries: e.g pre construction information, site waste management plan. Preliminaries provide a description of project that allows contractor to assess costs which, whilst they do not form a part of any of the package of works are required by the method and circumstances of the works. Conflict of interest statements Contract Amendments —- Sent electronically via IASTA

Answer 45

Summary -Surface runoff history record -Specific suppliers needed -Relationshio with local council -Requirement for locally sourced material/staff -Flexibility/firmness of design/scooe -Expected key dates ——— -Surface runoff history record -Specific suppliers or subcontractors that need to be used, or can we source materials and labour independently? -Relationship with local council -Need to locally source materials? -Expected key dates in contract -Firmness of design/scope If a question asked then, to be fair, I would maintain a tracker of all questions and issue it so all tenderers could see it (done anonymously) Also sent this tracker to my internal project team

Answer 46

Summary: -Compared costs of of labour, staff, prelims, plant for first stage… with an appendix of which ones would be used in second stage -Did a normalised price against work packages ——— -Labour gang rates for first stage (and used as basis for second stage) -Specialist staff rates for first stage only -Site management staff rates ((and used as basis for second stage) -That prelims had suitable rates and e.g welfare facilities, storage containers were needed on job. -Costs of producing as-laid drawings -Also an appendix setting out all the items that can be used for second stage

Answer 47

Summary: -Normalisation of each works package to determine best price -These had FLEXIBILITY as measured against vague deliverables -Deliverables were: sewer infiltration reduction, manhole repair, pipe repair, landscape runoff reduction -Each one included staff, labour, plant, prelims that applied to those deliverables .. and which would be used for main works in second stage ——— Sewer infiltration reduction (for normal pipes and pipes in pumping station): Manhole repair and replacement of frames and covers (related to above) Rectifying poor condition sewers (repairs) - NWP did for smaller pipes Combined sewer overflow screen Cleaning and scouring of mains Installation of pressure monitoring / reducing valves Wet well cleaning Surface water separation (separating grassy areas as they are impermeable) Production of as-laid drawings for early works Contaminated surface water investigations These packages included: -How they fitted into initial activity schedule (would be developed as part of contractor’s services to incorporate main works) -Specialist staff and rates outside prelims (prelim staff separate) -Firm subcontract cost -Firm material cost -Durations I check rates, prices, durations of these

Answer 48

Summary: -Compared quotes of eg trench support, valves, surveys -associated staff eg site management on site to receive delivery and organise work… and project engineer for drawings -prevented programme delay/allowed a quicker start on site -Eased cash flow for contractor ————- Gaining QUOTES and LEAD TIMES for materials needed for MAIN WORKS -Line stops with associated thrust blocks to aid network isolation and drain down volumes as indicated in the drawings -Trench support -Aquamaster district meter -Gate valves Agreeing rates/days for related staff eg: -Site agent/customer liason manager to organize work and coordinate delivery with all parties against RAMS -Project engineer - for technical drawings/consulting of temporary works design -Overhead to cover commercial team (pricing this quote) Done because: This prevented programme delay/allowed a quicker start on site -Eased cash flow for contractor, --------

Answer 49

Summary: -For each work / deliverables packages eg Pipe remedial works, Manhole fixing Surface runoff, Pumping station upgrade -Lowest price is 100, higher scores are given a score eg 0.96 in comparison ———— Lowest tender price = 100 (normalised score) Other tenderers = (Lowest tender price x 100) / Other tender price E.g Tenderer 1 - 1,282,000 Tenderer 2 - 1,333,000 Tenderer 3 - 1,925,000 Tenderer 1 will be: 100 (normalised) Tenderer 2 will be: (1,282,000 x 100) / 1,333,00 = 96.2 Tenderer 3 will be: (1,282,000 x 100) / 1,925,000 = 66.6 Maximum score: 100 (same as qualitative) This has a weighting of 40% Final score: So e.g if got score of 96.2 in this (40%) and 83.3 in qualitative (60%) would get a score of: 38.48 + 49.98 = 88.41 — For TW this is split into packages of: -Pipe remedial works -Manhole fixing -Surface runoff -Pumping station upgrade -Cleaning — One tenderer was cheaper but required significant normalisation against deliverables … pre-tender estimate ?

Answer 50

Summary: -For this project, no off site materials as they must be delivered to site…. But if delivered off site, the : -Ownership transfers to client on PURCHASE with a vesting certificate -There is no ‘retention of title’ / Romalpa clause ———— Materials delivered on-site: Materials and goods must be delivered to site, adequately protected These become the employer’s property once they are paid for. There is no ‘retention of title’ (Romalpa) clause where contractor owns materials until it’s delivered irrespective of whether payment has been made. Instead, because TW ordered materials early, a vesting certificate used so TW could own materials even before delivery. This vesting certificate was required from contractor to certify that ownership passed to TW at payment Also confirming that the materials will be properly identified, stored and free from ‘retention of title’ clause. Although the contractor remains responsible for loss or damage to them

Answer 51

Summary -VOWD = Productivity -Forecast = Profitability -Both shown on cumulative line graph -CERTIFIED Base costs + fee only (costs due to main contractor) - ———— VOWD = Productivity Forecast = Profitability Shown as a: Cumulative graph = line graph Report on amount due to main contractor only (construction costs) which is base cost + fees Unlike MCR which is a project cost report that includes professional fees (e.g design consultants, TW QS’s, PM’s). -Report on certified values only -And also must be amount on payment certificate if the PM deems works have not been carried out in accordance with the contract. Net values used: after deducting retention, advance payments, work not properly executed —- Wider PROJECT costs (included in the wider cost report) might include: -Land or property acquisition. -Statutory fees. -Consultant design fees -Project insurance, inflation, taxation and financing.

Answer 52

Summary: -l got completion % of sub activity (50%) and compared against the budget for that activity (£10,000) …So VOWD is £5,000 -However certified value for this activity is £6,000… so we are over budget -If open book accounting doesn’t break costs into activities then can only do OVERALL VOWD ———— Against the activities in activity schedule*, I reported on % progress of each activity (broken down into small sub activities) So if contractor has done 25% of work but the amount paid is 30% of contract sum then project costs are behind. However, how fast contractor is working has no bearing on VOWD as just measured progress v cost. So the same activities from activity schedule were linked to the programme to determine progress Programme has: Activity name Original duration Actual duration Start date Finish date Physical progress % —— *Note: Activity schedule is how the tender price is determined (contractor puts prices against them) but it then becomes unimportant during construction phase of Option C as only purpose is to ascertain original price. Option C open book accounting isn’t linked to activities.

Answer 53

I calculated the VOWD of what had actually been completed on site by: 1-Measure: eg 2x2x2 = excavation volume of 8m3 done So if we need 16m3 for activity then its 50% done 2-Value: get tendered quantity (£10,000) of that activity and multiply by 50%. So £5,000 is the VALUE of work done for (e.g excavation within Connection 1)* -These costs can then be compared against corresponding cost applied against activity (£6,000) to see that the progress is £1,000 behind I plotted on a graph (linked to accepted programme) to determine actual progress v costs -The more the activities are broken up into smaller ones the easier it is to assess VOWD and also helps contractors cash flow Option C (open book) is harder to measure progress than Option A (which pays on completion of activities and is either 0 or 100%) On Option B), it is measured against actual quantities done, so probably a bit easier actually rather than getting activity schedule % (although that will have quantities too) ----- Another example: Jan-23 Activity: Install Pipework Original duration: 5 days % Complete: 65% -------------------------- (Tendered cost: £3,500) -------------------------- VOWD: 65% x £3,500 = £2,275 Repeat above for all activities e.g excavate, thrust block to get e.g: VOWD: £4,215 VOWD: £2,050 ------------ Total VOWD: £8,540 This will be the VOWD plotted on graph for Jan-23

Answer 54

Summary: -If activity is 50% complete and £6,000 certified, then forecast for that activity is £12,000 -Repeated for all activities to get overall forecasted outturn cost -If open book accounting does not provide activity cost breakdown, then forecast is done by getting an OVERALL % (less accurate) ——— -I got all the completion %’s for each sub activity to forecast their final costs. Eg: If 50% done and £6,000 applied you’ll expect £12,000 compared to the original tendered value of £10,000 This project’s open book accounting HAD APPLIED COSTS IN AFP BROKEN DOWN BY ACTIVITY. If the open book accounting does not provide this breakdown, then forecast is done by getting an OVERALL %. complete based on programme eg: -Getting the completion %’s for each sub activity (as normal) -But this time, comparing it with the original durations to produce an overall % complete of programme , eg: Pipework 5 days at 65% = 3.25 Excavate 3 days at 85% = 2.55 Thrust block 1 day at 10% = 0.1 ------------------------ So out of original 9 days we are 5.9 days complete. So overall % complete is= 65.6% -The current applied cost was £13,640. So if we are 65.6% done, the forecast outturn cost is £23,982.42 So in normal open book accounting, fire forecasting costs you have to do an OVERALL % complete (rather than each sub activity) as you cannot distinguish costs for each sub activity as they aren’t linked to activity schedule

Answer 55

Summary: -As well as by activity, costs were broken down by cost component eg labour -Notifed that one activity (connection excavation) had high labour costs which causes activity costs to exceed the VOWD -I Suggested that PRODUCTIVITY needed to be improved. -So increased audit of allocation sheets to determine why this was happening ————- Broken down by activity AND the usual cost categories eg plant, labour, materials The extra costs of the activities were attributed mostly to costs of their labour section being exceeded. Suggested that PRODUCTIVITY needed to be improved. So the increased audit of allocation sheets allowed it to be determined why this was happening

Answer 56

Summary: -Each risk had a trigger activity where once passed, whatever value of the inexpended risk allowance would reduce the outturn cost -Eg when all excavation complete the risk of ground conditions is expended ———— Not meeting their planned ‘closing out’ dates: -Each risk has a linked activity that when 100% complete triggers the closing of the risk on the register. And any remaining risk allowance that hasn’t been expended reduces the forecast value. -These expenditure times can also be used to forecast cash flow as can predict when they’ll be expended. E.g -When all excavation complete - risk of ground conditions expended -Mobilisation complete - risk of unsuitable suit compound space expended -Temp works complete - risk of enhances temp works/redesign expended

Answer 57

Summary -EWN’s: estimated value (done by me) put into cost report to increase outturn cost -CE’s: then revised estimated then updated following contractor’s quotation, and update again with firm value once agreed ———- EWN’s: if valid then estimated value to put into cost report and subsequently will affect forecast outturn cost CE’s: same as above but more firm cost from contractor’s quotation and subsequent accepted figure The TIME impact was also used for both of these, so could use EWN’s to forecast programme delay and CE’s for firm programme delay. This allowed extra prelim/hire costs to be calculated

Answer 58

Summary: -Release of half retention (1.5%) -Release withheld amounts after substantiation provided -Deduct uncorrected defects (only after defects correction period elapses) ———— -Retention 1.5% (half of 3% total) Lower than standard 5% due to element of trust within framework -Withheld amounts - Where substantiation provided for audited items -Deduction for defects -Any potential received delay damages

Answer 59

Summary: -Balance costs against different cost targets -Identify specific areas of cost increase and increase audit (eg hire costs of plant not being used, inefficient labour) -Design freeze if caused by CE’s -Value engineering on specific components or construction strategy -More frequent cost reporting ———- -If caused by CE’s (so can do e.g a design freeze) -Identify specific areas causing increase in cost and increase audit (eg hire costs of plant not being used, inefficient labour) -Value engineering on overall construction method

Answer 60

Summary: -Current: certified values against target cost to determine pain/gain share -Forecasted: using VOWD to forecast what the pain/gain share will be ——- Current -By seeing current certified value against target cost -To be able to determine monthly pain/gain value due to contractor Forecasted -Forecasted outturn cost (from other level 2) -This includes forecasted base cost (from VOWD), forecasted EWN’s/CE’s -To be able to calculate final pain/gain value due to contractor

Answer 61

Summary: 1 Firstly got forecast outturn cost (from VOWD) consisting of actual construction + CE’s + forecasted construction/CE’s 2 Then adjusted for advance payments (payments on account) made during framework to contractor, defect retention……… This Determined pain/gain share for each party 3 Finally reduced TW’s pain share for committed costs (not attributed to specific element) eg third party costs…..,and non construction costs eg NRSWA funding and internal/external staff ———— 1 Firstly got the forecast outturn cost 2 Then made adjustments for committed and non-construction costs Committed Costs (Costs related to project but not attributed to specific element): -Payments through project PO’s e.g: land agent costs (and so not payable to contractor) -Advance payment to contractor on mobilisation costs (deduct from contractor’s final payment) -Payment on account during project: unassessed CE’s (deduct from contractor’s final payment) Non-construction -Funding stream. E.g in NRSWA jobs TW contribute 18% to Deveoper’s quote. So if a 200k job then TW charged £36k On these jobs usually a ‘profit’ not made (deduct from TW profit) -Internal/external staff determined from timesheets (deduct from TW profit)

Answer 62

-This tracker summarised the certified (current) values due to contractor for that month for all framework projects. -This allowed an easy record of multiple payment notices. -Note: the contractor’s interim application is the payment notice… and although TW can issue another ‘response’ payment notice if it’s the same value, I actually issued a PAY LESS notice because I will took off costs in my assessment

Answer 63

Summary: 7, 5, 14, 7 - NEC 7, 5, 14, 5 - JCT 7, 5 17, 7 - Con Act (scheme) -After contractor application I updated tracker with applied and my certified value -Tracker ensured dates of multiple framework projects not missed ———— Housing Grants, Construction and Regeneration Act 1996 -Contractor to submit interim application at least 7 days before due date **At this point I updated the tracker with contractor’s applied value and my certified value** -Employer to issue payment notice within 5 days AFTER due date **My tracker allowed multiple projects to be tracked to ensure this date wasn’t missed and with the right values** -14 days AFTER due date is final date for payment (for NEC) and 17 days in The Scheme) -Employer to issue pay less notice within 7 days BEFORE final date for payment **NOTE: when the contractor issues an AFP, this is the payment notice, so if TW pay same amount they issue a CONFIRMING payment notice, but if they want to pay less they issue a pay less notice** 7, 5, 14, 7 -If employer fails to issue payment notice within the 5 days, the contractor can issue their own any time. How long they take is how long final date for payment is postponed. So if do it 1 day after then final date for payment is pushed back a day. -Though if contractor made an application for payment this automatically becomes the payment notice after the 5 days instead (this happens at TW)

Answer 64

Summary: -Subcontractor design portion - design AND build, so produced own drawings -Management contracting route as submitted to the main contractor (client) -8 floor project ———— Subcontractor design portion Package was designed AND constructed by Gardner So produced their own drawings Under a Management Contractor procurement route Project spanned 8 floors

Answer 65

Summary: -NRM2 - section 38. Mechanical Services -Measurable: Ductwork (m) > material > diameter > fixing location e.g high/low -Fix only: Duct Ancillaries (nr) > Type > Pipe material fixed to > Fixing method. Above format applied to:dampers, fans, AHU’s, MHVR’s -Insuation and fire protection (m2) > Thickness > Material > Duct dimensions ———— Using NRM 2 - 38. Mechanical Services Not in CESMM4. Measurable: Pipework (m) > material > diameter > fixing location e.g high/low Fix only: Duct Ancillaries (nr) > Type > Pipe material fixed to > Fixing method. Or Insuation and fire protection (m2) > Thickness > Material > Duct dimensions This can be applied to eg: dampers, fans, AHU’s, MHVR’s

Answer 66

Summary: -Based on NRM2 elemental breakdown structure -Mechanical services -Ventilation / Fire Rated /Industrial Fume -System: Supply/Extract/Intake -Sub-element 1: Building section/area -Sub-element 2: Floor -Component 1: Vents, Insulation, FO, etc -Component 2 (vents): shape -Component 2 (insulation): shape, -Component 2 (FO): item eg AHU -Diameter ———- Based on the NRM2 elemental breakdown structure, but more detailed: -Level 0: project number N/A -Level 1: cost plan number 1.Mechanical Services -Level 2: group element 1.Mechanical service: (Ventilation, Kitchen Fire Rated, Industrial Fume) -Level 3: element 1. System: Supply/Extract/Intake -Level 4: sub-element 1. Building section/area 2. Floor -Level 5: component 1.Item Category: (Vents, Insulation, Fix Only etc) 2. Vents = Shape (Square/Circular) Insulation = Shape (Square/Circular) Fix Only = (item) 3.Diameter

Answer 67

Summary: E.g for rectangular ductwork: -First measure quantity -Supplier data: then multiply by supplier rate, less discount (economies of scale), plus supports (25%), plus delivery (6%) -In-house: plus Labour Rate per m, Plus offloading, Plus testing (hrs per m) , Plus Profit Margin -Produces final ALL-INCLUSIVE REMEASURABLE to be submitted to client -different rates for different duct types, diameters etc .. and for systems/location.. eg higher floors, kitchen extract more expensive -Supplier discount and in house labour margin %’s will differ depending on item ————- E.g for rectangular ductwork General: -Quantity Supplier data: -Multiplied by Supplier Rate = Base Cost -Less Supplier Discount (economies of scale) -Plus Supplier Supports Rate (25%) -Plus Supplier Delivery (6%) In-house data: -Plus Labour Rate per m -Plus offloading -Plus testing (hrs per m) -Plus Profit Margin Produces final ALL-INCLUSIVE REMEASURABLE rates to be submitted to client (main contractor). Lots of different rates as lots of different items AND different rates for different systems/location.. eg higher floors and kitchen extract more expensive with higher fixing and offloading (getting to high floors) cost —— -Discount: Varies depending of amount ordered (economies of scale) -Supports: 25% generally but 0% for fix only items/insulation/access doors etc -Labour: Varies depending on item -Margin: 20% ductwork/fix only, 45% flame shield, 15% insulation,

Answer 68

Summary: -Contract sum analysis because although BOQ produced, this was a design and build proposal (for subcontract section) -Prelims were for construction (PM, QS, Supervisor) -And pre-construction (same as below + designer) -Method related items were either time related (Mobile towers, Scaffolding), or fixed (IT software) ———— Note: Used the term ‘contract sum an analysis’ because although a BOQ was produced, this was designed by Gardner so and submitted as tender so was effectively a detailed contract sum analysis providing a design solution Preliminaries were: Pre-construction period: -Same as below + designer Construction period: -Project Manager -Quantity Surveyor -Site Supervisor (Basements/Risers) -Site Supervisor (Fit-out) -Logistics Manager -Commissioning Manager -Safety Consultant All of above measured in Weeks x Weekly Rate /Method related items: Mobile towers Scaffolding IT

Answer 69

Summary: -Project undertaken during close out of 5 year framework -Contractor winding down staff -All quotations issued at end -Instructions made at time by PM -For each one, during construction the PM extended period for contractor to submit a quotation under Clause 62.5. -Parties agreed to assess them on actual cost ——-_ Framework project CE’s weren’t assessed due to close out of framework, the contractor was winding down staff at end of framework -I assessed their validity in terms of CEN within 8 weeks (and whether they could have mitigated situation by providing an early warning with 8 weeks) -Contractor did not issue quotations until they issued them all at end of project -Whether PMI issued -For each one, during construction the PM extended the period for contractor to submit a quotation under Clause 62.5. Note: has to be done before 3 weeks timeframe to provide quotation has expired -Although poor NEC practice, the parties agreed to assess them on actual cost even though they should be assessed as a forecast from the date of instruction (dividing date)

Answer 70

Summary: -Basically replicated accepted (as built) programme -Same number of days -As no CE’s implemented, completion date effectively came ‘time at large’, ——— Timeline had same number of days as as-built programme. As-built used of however long contractor took. As no CE’s implemented, the completion date effectively came ‘time at large’, Not good practice at all.

Answer 71

Summary: -Each CE laid on top of another -Identified concurrent standing time (2 CE’s at a time) ————— Each CE was laid ‘on top of eachother’ on the timeline, and I identified: -Standing time was being applied for 2 CE’s at the same time (same gang) Big CE (05) - Delay in isolation for the North Connection. Small CE (06) - Commissioning of Developers Main outside of tendered scope

Answer 72

Summary: -Contractor left site -Then returned to site prior to PM instruction return, simultaneously doing work on another project -So disallowed ——— ———— CE05 - Delay in isolation of connection -Contractor left site to be redeployed then returned to site to claim more standing time -No written instruction from PM to return to site I disallowed costs when contractor returned

Answer 73

Summary: -TW caused delay and instructed halt to works to return in 2 weeks time -Contractor entitled to 2 days delay of gang and then redeployed to another project -I summarised all work allocation sheets to easily visualise. I essentially created my own accepted programme. ———- CE08: - Delay in isolation of connection When TW caused delay, PM instructed work to be delayed and resumed in 5 working days time. As per contract, I paid for the first and second days of delay. But contractor was claiming for the whole week so I disallowed this I achieved this by summarising all work allocation sheets and could easily visualise. I essentially created my own accepted programme. —— CE05 - Delay in isolation of connection -Contractor left site to be redeployed then returned to site to claim more standing time -No written instruction from PM to return to site Disallowed costs when contractor returned

Answer 74

Summary: -Reduction in total EOT (13 days) applied to CE’s in terms of labour, plant/prelim hire AND constrict temporary works claimed across all CE’s ——- -Once I determined the overall EOT (42-13=29) I could use the 13 disallowed days to constrain the programme for how long temporary works and preliminaries could be paid to contractor -Plant, labour materials done separately for each CE (see other flash card) they would need to be hired for.

Answer 75

Summary: -FRAMEWORK project -allocation sheets: what work each labour and site management member doing --plant and prelim durations correct -plant, prelim, labour rates followed framework rates -Once entire EOT reduction calculated, used to constrict entire programme and reduce temp works hire -Done retrospectively so based on DEFINED cost -all costs allocated under cost component for fee purposes ————- I looked at allocation sheets used to determine what staff were on site and what work they were doing as on each day there were different labour staff and sometimes costs claimed when they were on holiday Staff: -Ensuring site management rates in accordance with framework Labour: -Ensuring labour rates in accordance with framework and work done matches job description Prelims: -Durations of vans in line with labour -No additional van needed if site manager on site, —— All costs were then allocated to the correct cost component (plant, labour, materials etc) for fee calculation and reporting purposes….. Fee calculation: ..Management Fee - Subcontract and Other Costs (7.5%) Management Fee - Associate Personnel (11.3%) Reported in: In AFP ‘rolling’ file

Answer 76

-Employer time to make decision on EOT claim from contractor reduced from 12 to 8 weeks -‘Epidemics’ now a relevant event (time) and relevant matter (cost) which affect execution of works -Contractor home has no design liability for design to be ‘fit for purpose’ … ONLY that it is ‘reasonable skill and care’ -Following Building Safety Act 2022, duty holders must be identified -More wording encouraging collaboration, distinct requirement for the parties to notify each other of a potential dispute -clarify that where the contractor’s employment has been terminated before the practical completion date the employer’s right to liquidated damages applies up until the date of termination.

Answer 77

Relevant event entitles contractor to extra time Relevant matter entitles contractor to extra payment

Answer 78

-Done with open book tendering, so contractor provided COMPETITION AT SUBCONTRACTOR LEVEL with subcontractor quotations eg for materials, surveys -Ensure pre agreed framework rates were used (COMPETITION FOR RATES) eg staff, prelims, plant, labour gangs already done through competitive process Understand where the competition was ^ —————— - -Ensuring value for money even though only one contractor -Ensure tendered costs align with scope and programme -Value got money report once agreed

Answer 79

-In NEC final date for payment is 14 days after due date, while in Construction Act (scheme) the default is 17. -In NEC/Construction Act, the pay less notice is 7 days before final date for payment, while in JCT it is 5 days

Answer 80

-Calculated probability using root cause analysis (Score of 0-100%) -Calculated impact score: v low, low, med, high, v high (0.25%, 0.5%, 1.5%, 3%, 5% of project cost) -Probability x impact = risk rating Eg if project is £1m, then: 0.2 probability x high risk (3%) = £6,000

Answer 81

Avoidance Reduction Transfer Sharing Accept/retention

Answer 82

-Onus for contractor to make payment applications as if not, then PM now has choice to pay the lesser of: the amount they asses for this month .. or .. the value from the previous month -Final account mechanism, -Single overheads fee for compensation defined cost, where NEC3 had lots of little -Contractor can recover costs for preparing compensation events -Introduces a ‘Dividing Date’ for CE’s -New contracts: Alliance Contract and Design, Build & Operate contract -Replaces ‘Employer’ with ‘Client’ -Ability for contractor to issue proposals (e.g change scope and accelerate programme) -Now a ‘deemed acceptance’ mechanism for programme ie 2 weeks + 1 week after contractor notifies -Changes in terminology, -Gender neutral

Answer 83

-Initial flush -Swabbing (with large cylinder) -Pressure testing (to ensure leak free) -Flushing (remaining debris) -Chlorination

Answer 84

Advantages: -Speed of appointment -No tender analysis required -Process allows for early contractor involvement Disadvantages: - No competition with other contractors and so potential for a cost premium -Not suitable for public procurement -Heavy reliance of trust between parties - Contract negotiations could be lengthy and therefore cause delays

Answer 85

-Ensure contractor submits 3 or more quotations for subcontracted work -Ensure its on an open book basis so recommendation can be reviewed and interrogated (Open book tendering is where the client has full transparency into the contractor's costs and margins, sharing financial records with the client) -Competition with framework rates (went through competition when the framework was being tendered)

Answer 86

-Executive summary • Commercial overview • Financial changes in the period • Approved CE's • Anticipated and Disputed items (anticipated includes for EWN's and NCE'S) • Cash flow

Answer 87

Professional fees • VAT • Client decant costs • Loose fixtures and fittings • Site/land acquisition costs • Section 106s • Removal of asbestos

Answer 88

-determine which candidates meet the minimum qualifications and are eligible to advance to Invitation to Tender (ITT) phase. -can be discounted on eg poor health and safety record or no relevant experience

Answer 89

-Good payment practices -Unambiguous/clear contract and tender documents -Good quality communication -Respect and professionalism -clear scope of services -good record keeping -good project management/collaboration eg EWN’s -Negotiation -Mediation -Adjudication -Arbitration

Answer 90

-JCT for building works -More traditional employer / contractor approach to risk allocation with a clear allocation this is familiar to both parties -JCT contracts focus on completing project within set timeframe, while NEC more concerned with achieving the project objectives, regardless of the timeline…… however NEC better audit trail of time so good for public -Client wants ‘hands off’ approach as less administrative -Client want to retain a greater level of control over the project delivery -lump sum contract -more well known

Answer 91

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 92

-Attended early warning meetings -suggested options for dealing with early warning from contractor eg I discussed with the parties the practicalities of a different sequence of works and traffic management measures to permit partial taking-over by the employer -provision of more dewatering pumps and trench protection in case of flooding -Site investigation for ground conditions -Line stop: order long lead materials early, backup materials and protected -Line stop delay: close coordination with operations, plan shut well in advance -flood risk: dewatering pumps on standby

Technical - Level 2 Flashcards

(116 cards)