WARRANTY Flashcards
(120 cards)
1
Q
case law for collateral warranty
A
parkwood vs laing o rouke where case wording meant the cw would be treated as a construction contract
2
Q
explain how assignment might be applied
A
can arise when one party wants to assign a benefit of the building contract to a third party such as a purchaser/tenant
3
Q
what is section 106?
A
A Section 106 Agreement (often referred to as a S106 Agreement) is a legal agreement between a local authority and a developer that is used to secure obligations from developers to offset the impact of a new development.
4
Q
difference between rics ethics and rules
A
rules are what you need to follow and ethics are morals which you follow
5
Q
what is the procurment route on the project your working on?
A
ours is d&b this was effective as time and cost were ultimately most important, they has limited funding as it was government funding. also time the tenants were due to be housed in December so there was a emphasis on the time. while design quality was an important factor, value for money was preferred
6
Q
if the design team is novated in a db contract what should the client put in place.
A
Employer will transfer the Architect and Design team to the main contractor, who assumes full responsibility. The contract should clearly outline the transfer of obligations, risks, and rights from the original party to the incoming party.
7
Q
case law of change vs design development
A
Skanska vs Egger Limited. Skanska was responsible for design in ER’s. Dispute arose additional works and whether this was a change or design dev. 2 water maines instead of 1 as shown on drawings. court held for ER’s these could be perfected at a later stage, this was part of the design risk that skanska assumed.
8
Q
explain how a clients level of construction knowledge influenced your recommendation of a procurement strategy
A
Clients with significant construction knowledge may prefer a strategy that offers more control and involvement. Traditional Design-Build could be recommended, allowing them to have direct input at different stages, such as design, contractor selection, and construction oversight.Clients with limited construction knowledge may benefit from a procurement strategy that minimizes their involvement in complex decisions like construction management.
9
Q
when would you use a pqq
A
ensure they can carry out works// check financial statements so we can do a creditcheck also check there turnover. Organogram for the organisations structure. Check for any h&s record of company. Confirmation of insurances.
10
Q
purpose of pre-qualification scoring matrix
A
Preestablished scoring matrix sent out alongside pqq so everyone knows the basis of the scoring. clients use the process for selecting from a pool of contractors to save time and project costs by quickly removing inexperienced or incapable tenderers.
11
Q
benefits of 2 stage tender
A
early contractor involvement. client retains control of design. collaborative working to secure subcontract packages. design starts then both stage 1/2 cone before construction starts.
12
Q
what is submitted as part of the 1st stage of a 2 stage tender
A
Prequalification and Initial Tender. This stage of the tender is competitive and multiple Contractors submit the following:
-An outline price for the works
-Details of preliminary costs and overheads/profit forecast
-A design and site programme for the project
Upon receiving this the employer will decide on favoured bid and issue a letter of intent/PCSA
13
Q
stage 2 of 2 stage tender
A
The Contractor enters into a detailed contract negotiation with the Employer that includes price, programme and contract conditions. During this process, they also create a bill of quantities, final price and final contract with the Contractor.
14
Q
when to use 2 stage
A
Two Stage tendering is better suited to projects which are more bespoke and complex in their nature. These are projects where early contractor engagement is important to assist in finalising the design to ensure efficiencies on site in terms of time and cost.Two stage tendering works well with Design and Build Contracts because the contractor works closely with the design team during Stage One, ahead of being appointed as the primary point of responsibility for the design after Stage Two.
15
Q
dis of 2 stage tendering
A
The cost of the Pre-Construction Services Agreement is typically a cost not envisaged in the initial cost plan. During Stage Two, the Contractor may hold more power over the Employer than during a typical tender negotiation as the Employer may have no viable alternative to the Contractor in that moment.
16
Q
diff between single stage tender and two stage
A
single stage is an all in one submission. client will invite contractor to complete a final tender in response to a projects requirements.
17
Q
what to include on instruction to tender?
A
location of works/project programme/deadline of submission/spec and drawings/dealing with errors process/PCSA/form of tender
18
Q
how to deal with errors in tender
A
tenderer advised of errors and given opp to coreect genuine errors or withdraw
19
Q
how to conduct tender analysis and what to include in tender evaluation report.
A
Compare to specification check if there is any outliers. Check if they are capable of carrying out the works then do the recommendation and make yours.
Tender report to include executive summary, intro, brief scow, mid terms interviews then make the recommendation.
20
Q
How would you deal with a front loaded BQ?
A
Contractors may front-load costs in order to maximise their revenue early in a project by assigning overstated values to the preliminary elements of the work. Can be avoided by comparing competing bids to determine whether individual tenderers have submitted excessive prices for certain aspects or stages of the works.
21
Q
front loaded BQ? example
A
For example, a contractor might front-load costs for preliminary construction work such as services diversions, demolition, setting out, groundworks, piling, and so on.
22
Q
How can you ensure competitive prices are obtained at the 2nd stage of a Two Stage Tender?
A
–Conduct thorough market research to understand the prevailing market rates –
–Benchmark against similar projects. Ensure that only qualified and capable bidders participate in the second stage, leading to more competitive offers.
–if prices seem high engage in negotiations to achieve better prices.
23
Q
What are the disadvantages of Open Tendering?
A
ads- no sense of favouritism/give opp for capable firms you might not have on the list.
dis- risk lowest tender is inexperienced or lots of errors. no guarantee lowest is capable of financially stable
24
Q
how many tenderers would you include on tender list
A
the number of tenderers to include on a tender list can vary depending on the project’s size, complexity, and market conditions. 3-6 is ideal less then 3 might not ensure enough competition and more then 6 the process can become less efficient.
25
What would you do if you suspect the contractor submitting the lowest tender was in financial
difficulty?
it's essential to handle the situation carefully to mitigate risks while ensuring a fair and transparent procurement process. Perform a credit check to understand their creditworthiness and any outstanding liabilities. Contact previous clients and suppliers to inquire about their experiences, particularly regarding payment terms and any issues with financial stability.
26
What is the Difference between a Lump Sum and a GMP?
lump sum is contract sum is determined before construction work is started. based on a defined sow.
GMP: A guaranteed maximum price (GMP) is a form of agreement with a contractor in which it is agreed that the contract sum will not exceed a specified maximum. "pain gain" contract incentivises contractor to make savings.
27
what to include in itt
invitation to tender--how to submit the tender, the valuation criteria, employer requirements if its design and build, indicative programme dates, any warranties or bond wording, tender period (as long as necessary not too long to effect design or programme). Local supply chain we use at MS. Drawings boq specification.
28
what is involved in managing the tender process
- notify client of tender list and get approval required. Specifiy date for return of tender. Carry out financial due diligence. Insurance checks and check if they will sign up to our t and c’s. complete tender analysis. Issue tender recommendations.
Meet the team and check proposals. When tender is returned conduct analysis. Late tenders not included within the recommendation.
If seen errors in tender, within jct you can give them a chance to withdraw the tender for example if you think its is a genuine error
29
identify main causes of conflict on construction projects.
Unclear contract terms, scope gaps, design changes, payment terms. Cash is the mine driver of the industry so I think payment is the most important factor. Discrepancies between original and valued works. Programme, having more robust dates, documenting progress of there works.
30
how to avoid conflict
Maintain a good relationship before referring back to the contract documentation. Keeping records in case disputes do arise. Having clear communication. Setting up proper communication channels i.e. precontract meeting minutes, making sure directors are on there. Having clear scope of works, having clear supervisors in place.
31
ads + dis of mediation/concilliation
Mediated won’t give a decision they work with both parties to come to a decision whereas concillation they will come to a decision. Not binding. Both parties need to be willing to mediate for this to be successful
32
ads + dis of adjud
not time consuming can take 28 days or extended if both parties agree 14 days extension. Any decision is legally binding. Cons- element of non recoverable costs, payment disputes are the biggest disputes that adjudication sees.
33
ads + dis of arb
Pros- cost effective saves time and effective and more flexible for both parties. More private then other forms of ADR. Cons- no appeal to it whatever is decided is final.
34
ads + dis of litigation
Run by a neutral party, easier to appeal, binding, protects intellectual properties better for design issues. Cons- public so damaging companies reputation , time consuming process
35
your commencing works on a new project how to avoid conflict?
clear contractural documentation/clear change control procedures/ effective communication methods/collab between parties/ good design team management
36
what would you consider to select a form of dispute resolution
the cost in proportion to the claim/timescales involved/impact on business relationships and reputation
37
diff between mediation & concilliation
The mediator is a neutral party who helps parties to rebuild business relationships and help them to work out a solution that is mutually agreeable. It is non binding and parties can revert to arbitration or litigation at any time.
-The conciliator is usually a figure of
authority that the parties have turned to for guidance. The conciliator makes suggestions and the parties make the
final decisions.
38
What if a building contract does not contain provisions for adjudication?
parties have the statutory right to adjudication assuming the contract qualifies under the construction act.
The Scheme for construction contracts will apply in its entirely
39
What is the different between Arbitration and Litigation?
arbitration- private proceeding/ both parties must agree to arbitration/quicker then litigation and less expensive then lits.
litigation- public/Either party can refer a dispute to Litigation without prior
consent from the other party.Slowest dispute resolution procedure
40
ads of adjudication
ads- independent assesment/quick decision and binding.
Dis- binding for duration of contract works only. can be reassessed after work is completed.
41
Questions to include in Client Satisfaction Survey
How satisfied are you with the quality of our services on your project?
* How satisfied are you with our team’s leadership, structure and continuity?
* Has the performance of a particular individual stood out?
* What are your suggestions to further improve our service?
* How likely are you to recommend our company to other organisations? ( 1 Not likely, 10 Definitely)
* Please rate our overall performance out of 10. (1 Not acceptable, 10 Exceptional)
42
What does the RICS say about a Complaints Handling Procedure? 8
Firms must publish a complaints-handling procedure, which includes an alternative dispute resolution provider approved by RICS and maintain a complaints log.
*Should be available to all staff
*Should be agreed with PI Insurers
*Should include a designated Complaints Handler
*Include specific timelines for evaluation and response
*Should allow for escalation
Keeps records of all staff training
*Notified to PI Insurers
*Provide access to independent Redress
43
RICS regulated firms that operate a client account must
*Set clear segregation of duties for employees
*Client money must be kept separate and clearly identifiable —included 'client' in account name
*Client must always have access to funds
*Agree the terms and advise the client on bank details
*Interest on the account must be agreed with the client
*Must not be overdrawn
44
RICS Requirements for PI Insurance:
*Must be made on an ‘each and every’ claim basis
*Gives min wording
*Sets out minimum levels of indemnity
*Run off cover must be in place for at least 6 years
*Must be fully retroactive
*Should include cover for past and present employees, directors and partners
45
What are some of the Barriers to Effective Communication?
Verbal (Tone, clarity, language barriers, silence, etc.)Technical language (Jargon) Language barriers//Interruptions
46
What are the four stages of a negotiation? PDPB
prepare/discuss/propose/bargain
47
What is the difference between effective and efficient Communication?
effective= Communication wherein the intended message is successfully delivered, received and understood.
efficient=Efficient communication is the ability to deliver a clear and concise message in the shortest amount of time.
48
If you chair a meeting, how do you make it effective?
Be prepared, start and finish on time, stick to the agenda and limit distractions. set actions to get results. summarise the meeting in minutes.
49
What would you do if you received a complaint from a Client? RAIID
receipt/assignment/investigation/information and advice/decision
50
What is your understanding of Client Care?
ensuring regular contact, getting client feedback, ensuring all complaints are dealt with.
51
How do you encourage repeat business?
*Provide high level of services and customer care during projects
*Obtain feedback and act on it
*Deal with complaints honestly and effectively
*keep in touch with clients when we have no live project with them
*Organise business development activities such as social events or CPD’s
52
How would you calculate a fee proposal for a Client?
I would review the work involved with the commission based on the level of information available & calculate the time & number of individuals required to undertake the work & multiply it by an hourly rate, adding a suitable allowance for OH&P
53
What is the difference between LEED and BREEAM?
LEED- benchmarked globally US with other portfolios/ has greater market penetration globally.
BREEAM- Planning policy in UK. Developer achieves higher rental premiums/reduces timescales to let/sell
54
What sustainable initiatives are being implemented by the RICS ?
rics do yearly sustainability reports. advocates for mandatory carbon assessments (such as WLCA) for all new projects, and enhanced training for built environment professionals.
55
What are the 3 Pillars of Sustainability?
social economic environmental
56
What are the most common environmental issues experienced on construction sites?
* Risk of Land Degradation
* Risks to Flora (plants) and Fauna (animals)
* Risks of Water Pollution
* Air Pollution
* Land contamination
* Noise and Vibrations
* High Energy usage and Emissions of CO2
* High Wastage production into landfill
* Release of dangerous gases / materials
57
Name some sustainable building methods?
* Use of recycled materials such as reclaimed timber, recycled tiles and plastics
* Ground Source Heat Pumps
* Air Source Heat Pumps
* Solar Panels
* Wind Turbines
* Solar Shading
* Rain waterharvesting
* Green Roofs
* Automates Building Systems (Lighting sensors)
58
What things do you implement to promote sustainability?
* Print only when necessary
* Car sharing
* Use of energy efficient equipment
* Recycling
* Cycle to work
* Careful to minimise waste
* Avoid use of plastic bottles where possible
* Use of cloud basedsharing systems
59
Who is responsible for H&S on site?
The Principal Contractor is responsible for H&S on site. We all owe a duty of care with regards to our own and others health, safety and welfare. Client has ultimate responsibility for carrying out this role & ensuring the appropriate
information is made available to all members of the team and competent persons are appointed.
60
You walked on site for a valuation and found out that it is not safe. What do you do?
Notify the client & HSE
61
What would you do before, during & after visiting a construction site?
1) Before -Gain information about the site, undertake a risk assessment, obtain
PPE, nature of work, access, conditions , notify of visit
2) During -Wear PPE, review risk assessment, sign in, induction, emergency
procedures, remain vigilant of hazards, walking routes, dangerous substances, site rules
3) After -sign out, lock vacant site, report any accidents
62
What is the construction Skills Certification Scheme
--CCS was set up in 1997 & is responsible for improving the image of construction, monitors all registered sites, ensures best practice carried out & promotes good working practices
-CSCS cards provide proof that individuals working on construction sites have the appropriate training and qualifications for the job they do
63
Is the quantity surveyor a designer under the new CDM regulations?
Yes -Anyone who prepares or specifies information in connection with the construction of a project is deemed a designer. As the QS prepares BOQs then he is classed as a designer
64
What would you do if you witnessed a fatality on site?
Call the Police and report to the HSE
65
On the project described in your case study, what measures did you or your company take to ensure good standards of health and safety when either undertaking your work or delivering the project?
▪Preparing work risk assessments
▪Wearing personal protective equipment on site
▪Adhering to contractor’s site rules
▪Attending site inductions
▪Ensuring health and safety was discussed at meetings
▪Cooperating with the Principal Designer.
▪Reporting visible risks (traffic management issues)
66
What is the difference between a profit and loss account and a balance sheet?
A profit and loss account shows the incomes and expenditures of a company and the resulting profit or loss.
The balance sheet shows what a company owns (assets) and what it owes (liabilities) at a given point in time.
67
What is the difference between Company and Management Accounts?
company accounts= more external focused. highly regulated and provides a specific period in a snapshot. users are shareholders banks clients.
Management accounts= internal focus. weekly/monthly/quarterly. for employees.
68
What signs might there be that a Sub-Contractor is having financial difficulty?
▪Industry rumours
▪Over-valued payment applications
▪Reduction in labour on site
▪Slow progress of works
69
What would you do if a sub-contractor went into administration?
▪Secure the site and materials
▪Contact the administrator
▪Withhold any further payments
▪Contact sub-contractors/suppliers to try and continue with the works
70
When would you use accounting ratios?
to assess financial strength of a contractor/subcontractor. to assess companys performance and to identify unfavourable trends
71
What are the elements of typical consolidated Financial Statement of a company?
Auditors report
Director’s report
Consolidated income statement
Consolidated balance sheet
Consolidated cash flow statement
Statements of changes in Equity
Notes to Financial Statements
72
What is the difference between Liquidation and Administration?
liquidation- Winding up of a company because it cannot pay its debts Trading ceases, assets are collected and used to
offset liabilities.
administration- * Introduced in Insolvency act 1986 and 2000.Freezes affairs of company to allow breathing space.
73
What is a business plan?
document that outlines a company's goals and the strategies to achieve them. The plan is continuously updated using a feedback system and measuring performance.
74
What is a SWOT analysis?
The analysis combining Strengths, Weaknesses, Opportunities and Threats of different elements. SWOT Analysis is a strategic planning method used to evaluate the Strengths, Weaknesses, Opportunities, and Threats involved in a project or in a business venture. Swot analysis is to formulate organizations strategy.
75
What is the Vision / mission of a company?
Vision is to set a direction for the company and its stakeholders. This is part of strategic management of company. Mission consists of four elements -Purpose, Strategy, Standards and behaviourand Values.
76
What is the difference between a strategic and an operational business plan?
A strategic Business plan is your long term business plan which is usually over a 5 year period. This looks at the overall strategy of the company whereas an operational business plan is your short term business plan which deals with the detailed implementation of specific aspects of the overall strategy
77
What is your role within the company’s business plan?
I can assist in optimizing project schedules, resource allocation, and workflow management, ensuring that projects stay on track and within budget. By analysing data from past projects, I could help predict potential risks and suggest mitigation strategies.
78
What is data management?
Is the management of sources of information and data, and of the systems applicable to an organization or practice, including the methodologies and techniques most appropriate to collect, collate and sore data.
79
What is the Statutory requirement for Data Management?
Following implementation of the EU GDPRon 25 May 2018 the DPA was updated to DPA 2018 to incorporate the new legislation
80
Who are the key people outlined within GDPR?
Controller: Natural person or legal entity that determines the purposes and means of the processing of personal data.
Processor: Natural person or legal entity that processes personal data on behalf of the controller.
Data Protection Officer: Leadership role which exists within companies that process the personal data of EU citizens. Oversees the data protection approach, strategy and its implementation.
81
How is data managed and protected in your company?
1)EDMS (electronic document management system)To store all documentation in a logical order that can be called upon at any time
2)Regular back-up of documents
3)Confidentiality of documentation
4)Non Disclosure Agreements
5)Controls in place for sharing or information both internally and externally
6)Standardisation of reports
82
What are the principles of the GDPR?CAMLL
lawfulness fairness and transparency//purpose limitation//data minimisation//accuracy//storage limitation//confidentiality and accountability.
83
What elements must be in place for a Contract to be formed?
offer acceptance consideration capacity and intention to create legal relations
84
What happens when ‘time is at large’?
The phrase 'time at large' describes a situation where there is no practical completion date or a contract's completion date is now invalid. can become time at large because of delays.
85
What is a compensation event?
Compensation events are events which are usually not the fault of the contractor and change the cost of the work, or the time needed to complete it.
86
What are liquidated damages?
Liquidated damages are an agreed fixed sum that the employer in a contract for construction works can recover in the event there is a delay in completing the work which is the contractor's fault or for which the contractor has taken the risk.
87
What must be in place before LDs can be deducted?
LD’s can only be deducted once a certificate of non-completion has been issued.
88
What is a bespoke contract?
Contract conditions that are drafted specifically for a particular project
89
What the advantages of standard forms over bespoke contracts?
*Generally bespoke is used for major projects with novel obligations
*Drafting them needs great skill and knowledge
*Drafting from first principles is too daunting for most in the industry
90
What needs to be in place for you to include payments for materials off site?
materials off site bond- Covers the employer against loss or damage to materials already paid for (through interim valuations) before the materials are delivered to site
91
What is the difference between express and implied terms?
Express terms: are terms defined in the contract
Implied terms: are not defined in the contract,i.e.An obligation not to hinder or prevent the contractor from carrying out its obligations in accordance with the terms of the contract and from executing the works in a regular and orderly manner.
92
What are the relevant events?
The events that entitle the contractor to an extension of time. There are 13Nr. Relevant Events under JCT Contracts.
93
There are 13Nr. Relevant Events under JCT Contracts:
Variations Instructions/ Deferment of possession of the site/adverse weather conditions/Force majeure (natural disaster)
94
Can you have an EOT without an L&E claim?
Yes, it is possible to have an Extension of Time (EOT) without a Loss and Expense (L&E) claim. A delay might occur that justifies an EOT but does not result in additional costs for the contractor. For example, contractor might decide not to pursue an L&E claim even if they have incurred additional costs. This could be for reasons such as maintaining a good relationship with the client, avoiding the complexity of proving the claim, or the costs not being significant enough to justify the effort.
95
What is the difference between partial possession and sectional completion?
-Partial possession often requires the agreement of the contractor, but allows the employer to use part of the works for their intended purpose prior to completion of the whole of the works.
-rather than requiring the contractor to complete the whole of the works on a given date, sectional completion allows the employer to require two or more sections to be delivered at different times.
96
Can you tell me some Heads of Claim that you might see in a Loss & Expense Claim?
Time related preliminaries- e.g longer on site//Thickening of preliminaries (e.g. extra supervision required due to variations)//Increases in labour// material costs during the period of delay//Claim preparation costs
97
What is a Preamble?
clauses inserted before the measured works or at the head of each work section bill that principally contain descriptions of materials and workmanship, as found in specifications, together with any relevant information of which the contractor should be aware in pricing.
98
How do you measure prelims?
should be split into time based, fixed costs and progress related costs. how many people required on site complexity of works
99
What is included in an excavation take-off?
reference work section 5 of NRM2. Firstly preliminary sitework is measured. This includes removal of trees and tree stumps. Any site clearance of vegetation and any site preparation i.e. removing any topsoil.
100
What does NRM 1 provide guidance on?
focuses on cost estimating and cost planning for the initial building works, Order of cost estimating and cost planning for capital building works. NRM provides a structured basis for the quantification of building works for the purpose of preparing a cost estimate or cost plan including all the costs and allowances forming part of the building to the client but which are not reflected in the measurable building works
101
when to use NRM1 and quantification method of NRM1
Preconstruction cost management//order of cost estimates//analysis of cost data.
quant methods when using nrm are floor area//functional unit//elemental
102
How would you deal with a scenario where you were over budget at the end of a design stage?
Conducting value engineering workshops to ensure cost savings can be made without compromising the quality of the overall project.
103
What is the difference between a Cost Plan and a Cost Estimate?
-Cost plans are usually carried out at the end of a design stage in order to compare back against the budget and previous design stage
-Cost Estimate is a forecast of construction cost and can be for a full building or can be for a specific element.
104
What are the factors that would affect the accuracy of a Cost Plan?
Location of a project//complexity of works//programme//clear scope definition//material availability
105
What is the difference between CESMM and NRM?
cessm is more for civil engineering use and nrm is more building use
106
How would you measure concrete under NRM?
107
Why would you advise using a standard method of measurement?
all parties understand in what context measures are given.
Easier to compile and convey information
True / fair comparison of information
Without one assumptions may be made which are incorrect
108
What are the different volumes of NRM?
*NRM 1: Order of cost estimating and cost planning for capital building works
*NRM 2: Detailed measurement for building works
*NRM 3: Order of cost estimating and cost planning for building maintenance work
109
What is IPMS and or ICMS?
=IPMS stands for International Property Measurement Standards. It is a international standard which sets out how to measure property assets.
=International Cost Management Standard ICMS aims to provide global consistency in defining, measuring, analysing and presenting entire construction life cycle costs and carbon emissions at a project, regional, state, national or international level.
110
How would you prepare a Take off list when conducting a measurement?
Review the Project Plans//Calculate Quantities Of Materials such as by type, size, or quantity//Measure the Various Components of the Project//Determine the Quantities
111
How would you price the preliminaries section of a BOQ?
-Time-related preliminary items which are directly associated with the duration of the project. The longer the project takes to complete, the higher the costs for these items. They typically have a unit of measurement linked to time, such as 'weekly.' i.e. Maintenance of Site Office (Running Cost).
-Cost-related preliminary items are those for which the costs are primarily fixed and do not significantly change regardless of the project's duration. These costs are often linked to fulfilling specific requirements or standards set by the Employer (or Client) and typically involve one-time expenses. i.e.Erection of Site Office
112
What are the different types of Pricing Documents and when would you advise to use each of them? 4
-boq/bill of approximate quantities/schedule of rates/csa/activity schedule
-use boq when going out to tender, Ease of comparison when -reviewing tenders – tender analysis. Also provides a basis for valuing works.
-csa going into contract. It is prepared based on the Employers Requirements. Which may or may not be amended prior to execution of the Contract
-schedule of rates, Used when the nature of work is known but it cannot be quantified, can also be used to value variations during construction project.
BOAQ-A Bill of approximate quantities is used when early appointment of a Contractor is required. Quants are subject to remeasurement
113
How would you value preliminaries in an interim payment?
=prelims should be split into time based, fixed costs and progress related costs
=Identify set up and removal costs e.g. temporary works, site accommodation, plant establishment and fixed costs with the time costs (staff etc) being paid on a pro-rata basis
=Ideally prelim drawdown schedule could be agreed at the start of the project and then adjusted throughout the project when required.
114
define prelims
costs for setting up / running of site safely / producing various requirements to complete H&S.
115
What is a star rate?
If the work required for the change is dissimilar, a new rate (often referred to as a star rate) may be estimated from first principles.The first principles approach for a star rate should quantify the specific
resources required to perform the variation work.
116
What would you include in your monthly payment application?
would include prelims, measured works, materials on//off site, variations, claims, retention and previous payments.
117
What are the different ways that you would value a variation?
several ways to value a variation, use BOQ rates, adjust BOQ rates, Build up rates from first principles to include, plant, material, labour, prelims, OH&P etc. Dayworks, suppliers or sub-contractors quotation and bench mark rates.
118
When would you use Dayworks to value a variation?
As a last resort, when a ‘fair’ rate or price cannot be identified due to special circumstances, work is valued on the basis of the time taken and resources used to complete it. This may be a ‘daywork’ valuation.
Examples of daywork activities could be
opening up works for inspection, testing
operations, repair of damage etc. It is intended
for short duration, limited scope activities.
119
example of using a star rate
For example, a change from a standard specification of concrete to rapid-set, fast curing, concrete (also known as expedient concrete). In addition to the change in material type, this change is likely to require a greater number of labour resources as well as different types of plant and equipment. For example, expedient concrete works often require on site mixing trucks that work back-to-back
to ensure the concrete is poured and finished before it starts to cure. The valuer may need to consider savings in formwork, reinforcement and the like. Time related costs may also require consideration.
120
How would you evaluate interim valuations?
=Go to site and conduct valuation
=Check work done, materials on site, materials off site
=value preliminaries, agreed variations and any claims
=Valuation amount is gross valuation, less retention, less previous payment
=Then send recommendation to employers agent
