CIVE 580 Midterm, Fall 2011

1 Case Study (Questions 1-4) � The design phase for a mid-rise building has recently being launched by a group of four investors (the client). The building will be around forty floors, six of which will form the substructure while the remaining 34 floors extend above the ground level forming the g g g superstructure. Only one of the investors has construction knowledge and, in fact, owns a general contracting company. This same investor (referred to below as the fourth investor) happens to be holding the lowest percent shares in the project. A client- representation panel has been formed by four individual representatives delegated by each of the four investors. � The client did not hire a development manager during the planning phase. The project concept is the result of a collaborative study by two architectural offices, local and foreign ones, selected on a competition basis by the Client. The envisioned design team is comprised of the same two architectural offices, a foreign engineering design firm, a local engineering design office, and a number of specialty consultants. A technical controller will also be appointed. CIVE 580 & ENMG 502 CONSTRUCTION MANAGEMENT � The client did consider the engagement of a project management firm whose first role would have been to administer and monitor the design phase, but they ended up not hiring one. Instead, they employed an individual to act more like a project director, whose role is to act on behalf of the client-representation panel and to be the contact person throughout the project implementation cycle. The fourth investor is expecting to be given a construction management role during the construction phase. The supervision of construction quality will be assigned to the two local architectural and engineering offices. Organizational Structure 1. Draw the project’s organizational structure and state the form(s) of contracts that could potentially be applicable for ( ) p y pp the construction packages? Client/Representation Panel/Project Director A/E: Foreign/Local & Sub-consultants Design & Supervision Construction management contract CM (4th Investor) Technical Controller CIVE 580 & ENMG 502 CONSTRUCTION MANAGEMENT Trade construction contracts: lump sum, unit price, or cost-plus Trade 1 Trade 2 Trade 3 Trade 4 Subcontractors 2 Fourth Investor’s Involvement 2. What roles do you envision for the fourth investor when acting as the construction manager during the construction acting as the construction manager during the construction phase? a) Facilitate the launching of all trade contracts in harmony with design progress. b) Provide common logistics and support to mall trade contractors and manage the it CIVE 580 & ENMG 502 CONSTRUCTION MANAGEMENT site. c) Coordinate the works of all trade contractors. Development Manager 3. The appointment of a development manager 3. The appointment of a development manager in the pre-project planning phase would have helped the Owner in better: a) Understanding the market needs b) Formulating the facility’s program CIVE 580 & ENMG 502 CONSTRUCTION MANAGEMENT c) Strategizing for the implementation of the development 3 Construction Phasing 4 By opting for the phased approach as 4. By opting for the phased approach as implied by the case description, a) One can conclude that the investors are keen on delivering the project the fast-track way. b) The fourth investor’s construction know-how will inform (be of benefit to) the design process, an advantage also expected under the design-build approach. CIVE 580 & ENMG 502 CONSTRUCTION MANAGEMENT c) The possibility of having one (or more) of the packages being let out (awarded) on the basis of “design-build” shall not be completely eliminated. Pre-Project Planning (PPP) - 1 5 I i h 5. It is correct to say that: a) The outcome of the PPP phase may be a “No- Go” decision. b) A “No-Go” decision would not result in some wasted investment by the Client. c) A “No-Go” decision could be the result of technical constraints having to do with CIVE 580 & ENMG 502 CONSTRUCTION MANAGEMENT technical constraints having to do with needing to upgrade the existing infrastructure serving the proposed project site location and the neighboring area. 4 Pre-Project Planning (PPP) - 2 6. It is correct to say that: 6 t s co ect to say t at a) For the public type project, both the financial and economic feasibility evaluations are needed. b) The outcomes of the traffic and environmental impact assessments could influence the financial feasibility l ti CIVE 580 & ENMG 502 CONSTRUCTION MANAGEMENT evaluation. c) The outcomes of the development manager’s market study feed into the financial feasibility evaluation. Banking Sector 7. It is correct to say that: a) The strengths of the banking sector in a certain country are of interest to the project owner. b) The strengths of the banking sector in a certain country are of interest to the project prospective contractor. CIVE 580 & ENMG 502 CONSTRUCTION MANAGEMENT c) The same banking institution should not end up providing financing to both the owner and contractor of the same project. 5 Project Manager 8. The project manager (PM) can be entrusted by the owner : a) To review and interpret the value engineering studies presented by the A/E design firm during the pre-project planning phase. b) To lead, on behalf of the Owner, the bid l i d ti ti d th CIVE 580 & ENMG 502 CONSTRUCTION MANAGEMENT analysis and negotiation process under the design-build approach. c) To act as the “Engineer” for the construction contract. Contracts/Sub-Contracts/ Trade Contracts 9 It is correct to say that the owner 9. It is correct to say that the owner may appoint a: a) Project Manager (PM) to administrate the design-build (DB) contract. b) Construction Manager (CM) to administrate the subcontracts under a DB contract. CIVE 580 & ENMG 502 CONSTRUCTION MANAGEMENT DB contract. c) CM to administrate the trade contracts under the professional construction management delivery approach. 6 Quality Assurance/Quality Control (QA/QC) 10. It is correct to say that: y a) When subcontracting firms are engaged in projects as trade contractors, a layer of QA/QC ends up being at least partially compromised on. b) The engagement of a technical controller introduces a new layer of QA/QC in judging the acceptability of the deliverables of the CIVE 580 & ENMG 502 CONSTRUCTION MANAGEMENT p y A/E design consultant. c) QA/QC is not of concern to the public owner under the build-operate-transfer (BOT) delivery approach. Defects Notification Period (DNP) 11. It is correct to say that: y a) The DNP is the period beyond the substantial completion date, during which the contractor remains fully liable for all defects surfacing during the said period. b) Acceptance of such liability towards this period by the contractor comes free of charge to the Owner. CIVE 580 & ENMG 502 CONSTRUCTION MANAGEMENT c) The professional construction management approach does not pose any difficulty in setting the DNPs for various trade packages. 7 Bidding Engineer’s Estimate (EE) $ i illi Average Bid = 149 12. It is correct to say that: a) The above distribution of received bid prices could be interpreted as being reflective of a boom in the construction market. b) The difference between the highest and lowest bids Min Bid = 135 Max Bid= 158 $, in million LS Price Average Bid = 149 CIVE 580 & ENMG 502 CONSTRUCTION MANAGEMENT could be interpreted to indicate that the design drawings and not the specifications may be ambiguous. c) The client should definitely consider that the bidding results are inconclusive, particularly when the location of the EE is taken into consideration. Quantity Surveying 13. It is correct to say that: y a) The bill of quantities (BOQ) is of significance to the participating bidders in terms of being a quantitative representation of the design drawings. b) The bill of quantities (BOQ) is of significance to the Project Manager in terms of facilitating the analysis of received bid prices. CIVE 580 & ENMG 502 CONSTRUCTION MANAGEMENT y p c) The bill of quantities (BOQ) is of significance to the “Engineer” in terms of facilitating the certification of payments due to the contractor under a lump sum contract. 8 Contract Forms 14. It is correct to say that: ) h l b l bl f a) The cost-plus contract can be applicable for the general construction contract if phased construction is desired by the owner under the traditional project delivery approach. b) The unit-price contract cannot be applicable for the multiple general construction contracts under the multiple-prime project delivery approach CIVE 580 & ENMG 502 CONSTRUCTION MANAGEMENT delivery approach. c) The lump sum contract cannot be applicable for the trade construction contracts under the professional construction management delivery approach. Design-Build 15. It is correct to say that under the DB h approach: a) The re-measured contract form is most suited for the design-build contract. b) The Client normally needs the assistance of an A/E consultant to help prepare the Employer’s Requirements (including the design criteria and guidelines) CIVE 580 & ENMG 502 CONSTRUCTION MANAGEMENT design criteria and guidelines). c) The contractor could take the lead role as the design-builder, while the design firm is engaged through a subcontract with (under) the contractor. 9 Acceptance of Executed Works 16. It is correct to say that: a) The provisional acceptance of accomplished works by the A/E is not necessary a prerequisite to the certification of payment by the Project Manager acting as the Engineer of the construction contract. b) The issuance of the Taking-Over Certificate by the Engineer based on the Engineer’s determination that the Works have been substantially completed is a prerequisite to the start of occupancy of the built f l b h d CIVE 580 & ENMG 502 CONSTRUCTION MANAGEMENT facility by the end-users. c) Upon the expiry of the Defect Notification Period, the contractor gets permanently relieved, under the concerned Lebanese Laws, from all his liabilities towards the integrity of the built facility.