CIVE 580 Midterm, Fall 2009

Case Study (Questions 1-4) A Client developing a mixed-use project of 500 apartments, commercial space, p g p j p , p , and underground parking is under a major constraint of starting construction on the ground in a matter of a few weeks from the appointment of the A/E. Once construction is started with excavation and shoring works, it is expected to proceed directly with concrete works for the sub-structure and progressing continuously with above-ground works, including concrete as well as other work trades The Client has a project management (PM) firm acting on his behalf trades. The Client has a project management (PM) firm acting on his behalf, which has already helped him appoint a reputable consulting firm (A/E) to provide design and construction supervision services. The Client has decided to work with a prominent contracting company, familiar with the locality of the project, to undertake all construction works. However, the Client does not foresee going for a cost-plus-a-fee arrangement to engage this preferred general foresee going for a cost plus a fee arrangement to engage this preferred general contractor (GC). The PM and the A/E agreed to a methodology for delivering the design in packages (not necessary along trades, but rather along sections of the project), allowing construction to proceed as desired. It is also agreed that the GC shall propose unit rates for negotiation with the PM and the A/E. These rates will be offered against a hypothetical bill of quantities (BOQ) to be prepared by g yp q ( Q) p p y the A/E. Once the design is completed (while construction will still be underway), a revised BOQ with more definite quantities will be generated and a more definite overall contract price can be calculated for the Client to finalize his project financing plans. Payments to the contractor will be made using the agreed-upon unit rates and based on actual quantities of executed work as measured on site CIVE 580 & ENMG 502 CONSTRUCTION MANAGEMENT measured on site. Construction Phasing 1 Th d ib d j t d li 1. The described project delivery approach: a) Can be viewed as one that involves fast-tracking. b) Is likely to result in considerable cut- b) Is likely to result in considerable cut- and-patch work. c) Serves the principle of “enhancing g constructability” through engaging the general contractor early on during the design phase. CIVE 580 & ENMG 502 CONSTRUCTION MANAGEMENT during the design phase. Construction Contract 2. The type of adopted construction contract: a) Offers reasonably competitive prices for construction works. b) Can be best described as a negotiated b) Can be best described as a negotiated two-step re-measured contract. c) Can be viewed as more advantageous to th Cli t d t ti f th the Client as opposed to opting for the cost-plus with a GMP type. CIVE 580 & ENMG 502 CONSTRUCTION MANAGEMENT Measurement of Quantities 3. It is correct to deduce that: a) Extensive quantities take-off will be done by the A/E prior to engaging the done by the A/E prior to engaging the GC. b) Detailed quantities take-off will be made b h / l h d by the A/E upon completing the design. c) Periodical measurement of on-site quantities will be made by each of the q y PM and the GC during the construction phase. CIVE 580 & ENMG 502 CONSTRUCTION MANAGEMENT Project’s Achieved Quality 4. It is expected that the level of quality that may be achieved: a) Is already being compromised on by having selected a GC through no competition. b) Is more or less being assured by having ) g y g appointed a reputable A/E firm based on the advice of the PM. c) Will depend on the effort invested and due c) Will depend on the effort invested and due diligence exercised by the on-site teams of all three parties involved (GC, A/E, and PM). CIVE 580 & ENMG 502 CONSTRUCTION MANAGEMENT Technical Controller’s Role 5. Complete the following sentence: a) The technical cont olle checks o a) The technical controller _checks or reviews_ the work of the A/E, with respects to design aspects, p o d g a p , including: b) _seismic resistance_ and c) _Fire fighting strategy_. CIVE 580 & ENMG 502 CONSTRUCTION MANAGEMENT The Defects Liability Period 6. During the defects liability period: a) The testing and commissioning of all b ilding s stems ill be pe fo med building systems will be performed. b) The general contract’s performance guarantee shall remain valid throughout. c) The general contractor shall repair latent defects and continue to adjust latent defects and continue to adjust and balance all functioning building systems at his own expense. CIVE 580 & ENMG 502 CONSTRUCTION MANAGEMENT The Q&A Period 7. This period: a) represents an opportunity for the Client to get formal feedback on the quality of design get formal feedback on the quality of design documents from qualified construction professionals. b) M b d i i t d b th PM ith b) May be administered by the PM with technical support provided by the A/E. c) Does not offer any indication as to the likelihood of facing claims during the construction stage. CIVE 580 & ENMG 502 CONSTRUCTION MANAGEMENT Unbalancing 8 Bid b l i d d i l 8. Bid unbalancing detected in a general contractor’s lowest bid and deemed to be aimed at “front-loading” the construction g contract: a) May have been the result of speculating on quantity overrun for items of work falling in the quantity overrun for items of work falling in the earlier stages of the construction schedule. b) Represents sufficient ground to consider the GC’s bid as non-responsive. GC s bid as non responsive. c) Will automatically -and without further analysis- result in the second lowest bidder being selected. CIVE 580 & ENMG 502 CONSTRUCTION MANAGEMENT selected. Sub-Contracts/Trade Contracts 9 I hifti f th GC (t diti l) t th 9. In shifting from the GC (traditional) to the phased project delivery approach, the administrative burden of sub-contract biddi hift f th GC t th f ll i bidding shifts from the GC to the following participants according to the following order (3-Highest burden to 1-least burden): a) The Architect/Engineer. 3 b) The CM. 1 c) The Owner. 2 [Distribute the ranks of “3”, “2”, and “1” on a), b), and c) above] CIVE 580 & ENMG 502 CONSTRUCTION MANAGEMENT Project Participants 10 You are building a new hospital in 10. You are building a new hospital in Beirut Central District, close to the Saifi Village. In addition to the owner, g , designer, and contractor, list three other possible major project participants that are likely to be part participants that are likely to be part of the project organizational structure: a) _medical planner_. b) _project manager__. c) technical controller CIVE 580 & ENMG 502 CONSTRUCTION MANAGEMENT c) _technical controller___. Project Contraints 11. You are building a new hospital in Beirut Central District, close to the S ifi Vill Li t th i t t Saifi Village. List three important constraints, particular to this location, which you believe can have an effect which you believe can have an effect on the construction process: a) _site accessibility__. b) _noise pollution__. c) _SOLIDERE regulations____. CIVE 580 & ENMG 502 CONSTRUCTION MANAGEMENT Bidding Engineer’s Estimate $, in million LS Avg Bid = 45 12. Given the distribution above: Min Bid = 38 Max Bid= 52 LS price a) The successive bid spreads seem not to reveal any major clustering. b) The difference between the highest and lowest bids seem to indicate that the specifications may be seem to indicate that the specifications may be ambiguous. c) The client should probably consider that the bidding results are inconclusive, particularly when the location of the EE is taken into consideration CIVE 580 & ENMG 502 CONSTRUCTION MANAGEMENT of the EE is taken into consideration. Human Resources 13. It is correct to say that: a) The fourth project parameter of safety is meant to h i th d t f i t emphasize the need to ensure a safe environment for the construction workforce. b) The fourth project parameter of safety is meant to h i th d t f i t emphasize the need to ensure a safe environment for the construction site and its immediate surroundings. ) The fo th p oje t pa amete of safet is meant to c) The fourth project parameter of safety is meant to emphasize the need to ensure a safe environment for all groups involved in construction supervision. CIVE 580 & ENMG 502 CONSTRUCTION MANAGEMENT Planning and Scheduling 14. It is correct to say that: a) Planning is a function exercised by the GC with the aim of translating the GC with the aim of translating the design into a physical object. b) Planning is a general term that could f d ff f mean a range of different functions. c) Scheduling has a lot to do with calendar-based sequencing of q g tasks/activities and a further analysis of time-related calculations. CIVE 580 & ENMG 502 CONSTRUCTION MANAGEMENT Design-Build 15. It is correct to say that under the DB approach: a) The Client is guaranteed the most a) The Client is guaranteed the most economical fixed price for the project. b) The Client will want to do away with h i t h A/E lt t d having to have an A/E consultant and a technical controller. c) The A/E enjoys a relatively higher ) j y y g leverage compared to that enjoyed by the A/E under the professional CM approach. CIVE 580 & ENMG 502 CONSTRUCTION MANAGEMENT pp Construction Financing 16. Construction financing is concerned with: a) Ensuring that enough money is secured by the t t t k th t ti h l contractor to keep the construction wheel rolling. b) Making sure that the appropriate financial i t t ( h l tt f dit LC ) instruments (such as letter of credits - LCs) are in place to allow the procurement of construction materials. ) Making s e that bidde s a e paid fo the c) Making sure that bidders are paid for the administrative costs incurred in preparing their construction bid prices. CIVE 580 & ENMG 502 CONSTRUCTION MANAGEMENT