Deck 11: Construction Phase

Question 1

The pricing format for construction projects can be divided into two general categories- fixed price and cost reimbursable. Describe the conditions that are favorable to each of these two types of pricing formats.

Answer 1

Fixed Price:
- Good for projects that have well defined work, with no unusual requirements.
- Generally selected for projects which have cost as a primary consideration.
- Requires I 00% design complete, therefore schedule is usually secondary.
- Preferred for projects when the owner does not contemplate changes during construction.
- Allows a look-ahead of the probable total construction costs before making a commitment.
- Allows the contractor the opportunity to know the job requirements before submitting a bid.
- Relieves the owner of the detailed day-to-day management of costs during construction.
Cost Reimbursable:
- Good for projects that do not have well defined work or the entire design is not complete.
- Generally selected for projects that have schedule as the primary consideration.
- Suited for emergency type projects or projects that have unique requirements.
- Allows flexibility for the owner to modify the project as needed to suit their needs.
- Preferred for projects when the owner intends to make changes during construction.
- Allows the owner more input and control throughout the duration of the project.
- Requires extensive time for the owner to monitor construction costs and schedules.

Question 2

Bonding capacity Is the criteria that is normally used in evaluating contractors for bidding construction projects. What other criteria would you suggest for evaluating contractors

Answer 2

- Documented experience in performing the type of work required in the project.
- Record of claims against the designer and/or the owner on past projects.
- Safety record of lost time injuries and serious injuries per worker and per work hour.
- Legal actions against the contractor from material suppliers, vendors, and subcontractors.
- Reputation in the industry from other owners and other contractors.
- Number of recent contracts that have a monetary value in the range of the proposed project.

Question 3

Describe the important factors that can greatly contribute to a successful project during the construction phase.

Answer 3

- Assign a good field construction representative at the job-site during construction.
- A gooddetailed construction schedule, developed bythe construction contractor.
- Well-definedauthority/responsibility that is agreed upon by all parties.
- Good communication links between the fieldoffice and the home office.
- Dissemination and approval of reports in a timely manner.
- Documentation of events, meetings, and decisions made during construction.
- Don't make a field change without a careful consideration of impacts on future work.
- A spirit of cooperation and teamwork among all parties.
- Routine meetings of key representatives from the owner, designer, and contractor.
- A good system for controlling costs, schedules, and quality of work.
- Good working relationships between the contracting parties.
- An effective public relations program for the project.

Question 4

You are in the bidding phase of a project and have received numerous inquiries about a particular part of the project. You have issued several addenda for clarification, but still continue to receive questions.
(A) What is your assessment of the possible causes for the numerous questions from bidders
(B) What could you, as project manager, have done that might have prevented the problem
(C) How would you handle the problem, considering you are now in the bidding phase

Question 5

You are responsible for a project where you are uncertain of the cost of various parts of the project. The owner has a limited budget, yet needs the project completed at the earliest possible date. What are your recommendations Discuss the contracting pricing format you would use in preparing the bid documents.

Question 6

You are in the process of evaluating bids for a cost plus contract. Discuss the factors you would consider in your evaluation and how you would attempt to compare the costs of bidders.

Question 7

Much of the day-to-day work on a project is accomplished by informal exchanges of Information between team members. Examples are phone calls and Informal meeting between two or more individuals. How should a project manager handle informal exchanges that may have an important Impact on a project

Question 8

Describe the difference between a traditional specification and a performance specification for construction work.

Question 9

Name and briefly describe the methods that can be used to resolve disputes related to construction work.