Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

ENCN371 test > Test > Flashcards

Test Flashcards

1
Q

Advantages of Project Manager Agent

A
  • increased representation for owner
  • independent evaluation
  • increased constructability
  • increased value engineering
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Disadvantages of Project Manager Agent

A
  • PM assumes no risk - owner holds contracts
  • PM agency does not guarantee cost
  • PM licencing not available
  • high owner/PM involvement
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Advantages of Design-Build

A
  • sole source of responsibility
  • reduction of project duration
  • high constructability
  • claims reduction
  • non-adverserial relationship
  • react rapidly to scope changes
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Disadvantages of Design-Build

A
  • fewer checks and balances
  • reduced owner involvement
  • difficulty of selection
  • large staff
  • additional risk
  • scope changes difficult to track
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Advantages of Design - Bid - Build

A
  • historically accepted
  • price fixed before construction
  • owner involvement low
  • contractor taes risk for construction
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Disadvantages of Design - Bid - Build

A
  • long delivery time
  • no constructability advice during design
  • can be adverserial relationship
  • leads to change orders
  • low bid does not always = lowest final cost
  • low margins
  • high risk for unforseen circumstances
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Blanchards Situational Leadership

A
  1. Directing - Beginner
  2. Coaching - Learner
    3 Supporting - Contributer
  3. Delegating - Achiever
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Mazlow’s Hierachy of Needs

A
  1. Self Actualisation
  2. Esteem
  3. Social
  4. Safety
  5. Physiological
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

ERG Theory

A

Individual drive from:
- Existence Needs
- Relatedness
- Growth Needs

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Changing percieved inequity

A
  • change money
  • change input
  • change comparison to others
  • explain reason for difference
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Porters 5 Forces Model

A

Potential Entrants
Buyers
Substitutes
Suppliers
Industry Competitors

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Six Major forces of barrier to entry

A
  1. Economies of scale
  2. Product Differentiation
  3. Capital Requirements
  4. Cost disadvantages independent of size
  5. Access to distribution channels
  6. Government Policy
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Supplier group powerful if

A
  • dominated by a few companies
  • product unique or differentiated
  • not obliged to contend with other products
  • poses a credible threat of integrating forward into industry’s business
  • industry is not an important customer of the supplier
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Buyer group powerful if

A
  • it is concentrated, or purchases large volumes
  • purchases standard or undifferentiated products
  • product purchased is a significant component of its product
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Elements of a Contract

A
  • offer
  • acceptance
  • intention to be bound
  • capacity
  • reality of consent
  • legality
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Reality of Consent

A
  • Mistake
  • Misrepresentation
  • Duress
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Responsive tenders

A

all terms in the solicitation are met satisfactorily
- forms filled out correctly
- authorised signatories
- submitted as directed on time ad at correct location

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Agency Problems

A

a manager who is principally and agent for stakeholders, acts in his own interests instead of maximising market value
- claiming high expenses
- avert risk to secure own position

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

ways to combat agency problems (conflict of interest)

A
  • compensation plans
  • board of directors
  • takeovers
  • monitoring
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Payback Period

A

time until cash flows recover the initial investment of the project
- no account of time value of money

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

payback rule

A

specifies that a project be accepted if its payback period is less than the specified cut off period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

ROI

A

Return on Investment
- the ratio of cashflows (gained) and initial investment
- no account of time value of money or size of the project

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Net Present Value Rule

A
  • accept all projects that are worth more than they cost (positive net present value)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Profitability index

A

relationship between NPV and initial investment

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

Costing Methods

A
  • process costing
  • job-order costing
  • activity-based costing
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

process costing

A

assigns average costs to each unit of production

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

job-order costing

A

differentiates the direct costs per job, to see how profitable each job is

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

activity-based costing

A

calculates what percentage of overhead should be assigned to a job

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

depreciation

A

the expense part of an expenditure that falls within the period

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

3 phases of cost estimation

A
  1. the ‘decision’ phase
  2. the ‘validation’ phase
  3. the ‘execution’ phase
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

decision phase

A

work of cost estimator to quickly assist decision maker in estimating cost of various concepts and estimating influence of potential technical uncertainties to the cost
- focus on product

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

validation phase

A

make sure we will accomplish the project for the cost which has been decided upon
- focus shifts to activities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

execution phase

A

periodically, from the information which is collected, decide if the project will remain inside the allocated budget

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

External Factors on Productivity

A

-market conditions
- environmental conditions

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

Internal Factors on Productivity

A
  • work conditions
  • management conditions
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

purpose of income statement

A

shows whether or not a company’s business is profitable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

equity formula

A

equity = assets - liabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

equity definition

A

(or net worth) is the capital invested by the owners of a company

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

liabilities

A

obligations to third parties

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

current liabilities

A

debts they have to pay within a year

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

long term liabilities

A

obligations with a payback period of more than a year

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

working capital

A

measure of short term financial strength of company

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

Client and contractor have conflicting interests

A
  • client is interested in cost effectiveness
    output / client’s costs
  • contractor is interested in cost efficiency
    price / contractor’s costs
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

Difference between outsourcing and collaberation:
BASIC LAWS

A
  1. Two or more players which want to deliver the same product or process at an equal scale level should always be placed in an outsourcing competition
  2. Two or more players which want to deliver complimentary products or services at an equal scale level preferably should collaberate.
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

Two basic contract types

A
  • fixed price contract
  • cost plus fee contract
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

definition of Alliance Contract

A
  • client and contractor create an initial risk budget
  • all unexpected events during project (with associated consequences) financed by this risk budget
  • risk budget left over at the end split 50-50
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

PPP

A

Public-private partnerships allow large-scale government projects, such as roads, bridges, or hospitals, to be completed with private funding.
- Private sector expertise request
- Cost on “whole life” basis
- High maintenance requirements (benefit to owner)
- Shifts risk transfer to private
- Value for money - balance upfront to long term cost risk

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
48
Q

What can we do with risk?

A
  • accept
  • control (minimise/mitigate)
  • avoid
  • transfer (insure (pass on to 3rd party))
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

What is a risk

A

risk is a combination of:
- the chance of an event happening
- the outcome should that event occur

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

when is greatest uncertainty/risk

A

at the start of a project

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
51
Q

Two of the most important financial statements

A

-income statement (or Profit & Loss Account)
- balance sheet

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
52
Q

Purpose of income statement

A
  • to show whether or not a company’s business is profitable
  • shows profit or loss over a period of time
  • usually comparison between figures of most recent year and year before
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
53
Q

Steps of Income Statement

A
  1. Establish the revenue
  2. Deduct direct cost of making that revenue (cost of sales) to get Gross Profit or Gross Margin
  3. Further deduct the cost of being in business (operating expenses) to get Operating Profit
  4. Further deduct any financing costs or income to get the Profit before Income Tax
  5. deduct tax to get Net profit for the period
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
54
Q

Purpose of Balance Sheet

A

shows a company’s financial position at a point in time (end of fiscal year), a snap shot

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
55
Q

3 major items in a balance sheet

A
  • assets
  • liabilities
  • equity (or called net worth)
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
56
Q

Total Assets is the sum of

A
  • total current assets
  • fixed or non-current assets
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
57
Q

Examples of total current assets

A

-cash
- inventory (materials)
- investments
- accounts receivable

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
58
Q

Examples of fixed or non-current assets

A

-depreciable assets of property, plant equipment etc

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
59
Q

Liabilities is the sum of

A
  • current liabilities
  • non-current or long term liabilities
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
60
Q

examples of current liabilities

A
  • accounts payable
  • accrued expenses
  • excess billings for work not done yet
  • bank overdraft and short term loan
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
61
Q

examples of non-current or long term liabilities

A
  • long-term bank loans
  • mortgages of equipment, buildings, land, cars/trucks
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
62
Q

Current liabilities

A

debts a company has to pay within a year

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
63
Q

long term liabilities

A

obligations with a payback period of more than a year

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
64
Q

Accounting Equation

A

Equity = Assets - Liabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
65
Q

Working Capital equation

A

= current assets - current liabilities

66
Q

working capital definition

A
  • a measure of the short term financial strength of a construction company
  • liquidity of working capital is high
67
Q

increase working capital by:

A
  • making profit, selling equipment, long term loans
68
Q

decrease working capital by:

A

-losing money on a project
- purchasing equipment
- repaying long term loans

69
Q

To stay a healthy company, volume of unfinished work:

A
  • of all projects in hand should be at most ten times the working capital
  • of the biggest project in hand should be at most five times the working capital
70
Q

current ratio definition

A

ratio for a construction company’s liquidity or its ability to fulfil short term financial obligations
- should be 1.3 or higher

71
Q

underbilling

A
  • expressed in balance sheet under current assets
  • estimated work done but not billed yet
72
Q

Gross Profit Margin Ratio

A

gross profit / revenue
- goal of 25% minimum

73
Q

Net Profit Margin Ratio

A

net profit before tax / revenue
- goal of 5% minimum

74
Q

Return on Equity Ratio

A

net profit before tax / owners’ equity
- should be between 15% and 40

75
Q

Current Ratio

A

current assets / current liabilities
- should be higher than 1.3

76
Q

Current Assets to Total Assets Ratio

A

current assets / total assets
- should be between 60% and 80%

77
Q

Working Capital Turnover

A

revenue / working capital
- should be between 8 and 12

78
Q

Net Profit to Working Capital Ratio

A

net profit before tax / working capital
- should be between 40% and 60%

79
Q

Leverage

A

total assets / owner’s equity
or
(total liabilities + owner’s equity) / owner’s equity
or
debt to equity ratio + 1
- should be lower than 3.5

80
Q

Break Even Point

A

income from sales is equal to total expenses

81
Q

Degree of Operating Leverage

A

degree of operating leverage is the percentage change in profit per percentage change in sold items

82
Q

costs

A

the amount of money sacrificed for goods/services to bring a current or future cashflow to the organisation

83
Q

direct costs

A

every cost that can be easily tracked to a product or service

84
Q

indirect costs

A

every cost that cannot be easily tracked to a product or service

85
Q

overhead is divided into?

A
  • manufacturing overhead
  • administrative expenses
  • selling expenses
86
Q

fixed cost

A

does not increase or decrease when output varies

87
Q

variable cost

A

increases or decreases with output

88
Q

mixed cost

A

has a variable and fixed component

89
Q

Financial accounting

A

produce financial statement that conveys information to outside parties

90
Q

Management accounting

A

provides useful information for operation of the company

91
Q

Cost accounting

A

technical process by which expenses are allocated to products

92
Q

expenditure

A

an amount of money paid for acquiring an asset or service

93
Q

Expenses

A

amounts of money which is used during a given year for the production of goods and services sold by the company

94
Q

Relationship between expenditure and expenses

A

not all expenditures are expenses

95
Q

Process Costing

A

assigns average costs to each unit of production

96
Q

Job order costing

A

differentiates the (direct) costs per job (or service) to see how profitable each job is

97
Q

activity based costing

A

calculates what percentage of overhead should be assigned to a job

98
Q

Depreciation

A
  • expense part of an expenditure that falls within the period
  • depreciate according to physical deterioration (or different for tax deductions)
99
Q

Accuracy factors

A

quantity and cost of:
- construction materials
- labour
- equipment

100
Q

Contingency

A

amount of money added to an estimate to cover unforseen needs of the project, construction difficulties or estimating accuracy

101
Q

Sole traders

A

own all assets of a business and are responsible for all the risks, obligations and debts

102
Q

Partnerships and joint ventures

A

can establish an ordinary or special partnership to operate a business with other people
-> advantages: combine overseas capital or expertise with business networks and ownership of resources here

103
Q

Companies must have:

A
  • a registered name
  • one or more shares
  • one or more shareholders
  • one or more directors
  • registered company with the companies office
104
Q

Three main forms of businesses in NZ

A
  1. sole traders
  2. partnerships and joint ventures
  3. Companies
105
Q

Structure of Companies

A
  • shareholders
  • board of directors
  • top management (CEO, COO, CFO etc)
  • staff
106
Q

Shareholders

A

owners of the company

107
Q

Ways to combat agency problems

A
  • compensation plans
  • board of directors
  • takeovers
  • monitoring
108
Q

Accounting

A

preparation of accounting records

109
Q

Economics

A

study of choices made by people who are faced with scarcity

110
Q

Finance

A

consists of investments, the decisions of institutions as they choose to invest, and managerial finance (business finance) which involves the actual management of the firm.

111
Q

Role Financial Manager

A

-make ‘project’ decisions
- issue shares
- borrow
- certainty against market fluctuations (hedging, futures)
- short term decisions

112
Q

Disadvantages of ROI

A
  • no account of time value of money
  • no account of the size of a projec
113
Q

Time value of money

A

a dollar today is worth more than a dollar tomorrow

114
Q

interest calculation

A

interest = interest rate * initial investment

115
Q

investment value calculation

A

investment value = initial investment + interest
or
investment value = initial investment * (1 + interest rate)

116
Q

present value

A

investment i have to do now to get a certain value in the future

117
Q

profitability index

A

= NPV / initial investment

118
Q

NPV Rule

A

managers should accept all projects with a positive net present value

119
Q

Agency Costs (DB)

A
  • specimen design
  • laborious tender
  • consultant costs
  • lower number of bids
120
Q

Agency Benefits (DB)

A
  • control over design
  • best value
  • best design
  • DB advantages (less claims, less costs, schedule, contractor leads designer)
121
Q

Contractor Costs (DB)

A
  • tender costs (1.5%)
  • less control
  • best design no guarantee
122
Q

Contractor Benefits (DB)

A
  • ability to add value
  • paid for tender no matter whether they win
  • no non-conforming bids
123
Q

Sources of Law

A
  • Statute Law
  • Common Law
  • Regulations
  • By-Laws
124
Q

What is a contract

A
  • a promise(s)
  • between capable parties
  • that create an obligation
  • that is enforceable by law
125
Q

Elements of a Contract

A
  • offer
  • acceptance
  • consideration
  • intention to be bound
  • capacity
  • reality of consent
  • legality
126
Q

Offer

A
  • needs to promise to do something, for something
  • can be express (written or verbal) or implied
  • intended to lead to a binding obligation
  • time dependency
  • offer can be revoked
  • communicated
127
Q

Revocation of offers

A
  • withdraw before acceptance
  • scheduled revocation (“good until…”)
  • offer revoked b counter-offer
128
Q

Reality of Consent (contracts)

A
  • Mistake
  • Misrepresentation
  • Duress
129
Q

Interpretation (contracts)

A
  • implied vs. expressed
  • correspondence
  • language
  • exclusion
130
Q

Consideration (contracts)

A
  • something FOR something
  • does not have to be monetary
  • is the consideration fair?
131
Q

Discharge (contract)

A
  • performance
  • agreement
  • frustration
  • operation of law
  • breach of contract
132
Q

procurement

A

the framework within which construction is brought about, acquired or obtained

133
Q

Tenders

A
  • responsive
  • responsible
  • award metric
134
Q

Responsive (tender)

A

all terms in solicitation met satisfactorily
- forms filled out correctly
- authorised signatories
- tender offer displayed as required
- submitted as directedon time at correct locatio

135
Q

Responsible (tender)

A

meets the requirements to submit the offer
- prequalified, if required
- registered with appropriate governmental agency
- tender offer contains required financial instruments/securities
- tenderer is not a falon

136
Q

Award Metric (tender)

A

formula by which the owner will determine the successful offerer
- lowest price
- best qualified
- best proposal at stipulated price
- best value

137
Q

Rules of Contract Administration

A
  1. Read the Contract
  2. Do what the contract tells you to do
  3. Do not do what the contract tells you not to do
138
Q

Delivery Methods

A
  • Negotiated
  • Design-bid-build
  • Design-build
  • Project Manager Agent
  • PPP
  • Alliances
139
Q

Motivational Theories

A

Needs Theory
- Mazlow’s hierachy of Needs
- Alderfeld’s ERG theory
Process Theory
- Equity Theory

140
Q

Individual attributes

A
  • biographic characteristics
  • competency characteristics
  • personality characteristics
141
Q

self serving bias

A
  • our success comes from our traits and dispositions
  • our failure comes from factors external to us
142
Q

attribution error

A

an individual’s tendency to attribute another’s actions to their character or personality, while attributing their behavior to external situational factors outside of their contr

143
Q

Equity Theory

A

two people paid differently for same job
- person paid less wants more money
- person paids more works harder/feels greater pressure

144
Q

Job satisfaction

A
  • low job satisfaction costs money in form of labour turnover, absenteeism and ultimately mental and physical health
  • influences whether an individual stays a member of the group
145
Q

Situational Theory

A
  • Contingency Theories (assume that a leader’s effectiveness depends on the situation)
  • Path-goals theories (leaders clear the path in order for employees to achieve their goal)
  • Life-cycle theory
  • Blanchard’s Situational Leadership
146
Q

Situational Leadership

A

Directing: Beginner
Coaching: Learner
Supporting: Contributer
Delegating: Achiever

147
Q

Beginner

A

Directing

148
Q

Learner

A

Coaching

149
Q

Contributer

A

Supporting

150
Q

Achiever

A

Delegating

151
Q

MBTI

A
  • Source and use their energy
  • Gather and take in information
  • Make decisions about what they have perceived
  • Organize their live
152
Q

top down estimate

A

use one design parameter to calculate overall project cost

153
Q

bottom up estimate

A

use detailed design to add up all cost components and calculate overall project cost

154
Q

What are the project phases in order?

A

Project Establishment
Concept Design
Prelim Design
Procurement
Construction
Post Completion

155
Q

project establishment phase

A

agreement between client and consultants is established; preliminary information is gathered; methods of procurement other than tendering advised; no design work done; H&S plans commences

156
Q

concept design phase

A

explore design concepts and test client brief; prepare concept estimate; prepare resource consent; prepare preliminary programme; update coordinated H&S plan

157
Q

preliminary design phase

A

refinement of the approved concept design (regulatory requirements, preliminary cost estimate, preferred procurement method, resource consent application, H&S plan updated) top-down estimate

158
Q

developed design phase

A

design major elements with documentation; all design decisions made; firm estimate of cost; gain stakeholder approvals; requires client approval to move into detailed design; H&S plans updated

159
Q

detailed design phase

A

design developed to clear definitions of quantity and quality of all elements, materials and systems (drawings, specifications, schedules and performance requirements); coordinate with other disciplines; critical use in consenting and procurement; H&S plan updated detailed estimate and schedule (quantity takeoff)

160
Q

procurement phase

A

selecting a builder to construct the building, process is managed by the consultant (required to review tender submissions for technical conformance); QS closely involved in assessment of cost; once tenderer selected, contract documents assembled for signing including design matters negotiated during tendering; H&S matters relevant to contract included in procurement documentation

161
Q

observation stage

A

site visits to determine if the installations are in accordance with the contract documents;
HSW plan developed and implemented on site, monitored and reported

162
Q

post completion phase

A

issuing of practical completion and notification of defects to contractor; provide items required under contract terms (warranties, as built drawings etc.); QS prepares final account; contractor attends to defects; HSW plans continually updated; defects liability period forms at end of phase; contract administrator issues final completion certificate; remaining retentions discharged

ENCN371 test (1 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions