Exam Notes 2017

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PAST EXAM QUESTIONS

ARK 856 ARCHITECTURAL PRACTICE II


DEC 2014 a) Contractor a) +ve and –ve of Advice on cases Explain any 2
-5q selection by direct contract with BQ a) Employer refuse a) liquidated
Choose 4 negotiation – b) RE in PAM 2006 to pay damages
situation b) Employer insists b) variation order
b)compare project 3 - Role and the Ar. Get his c) difference
- fixed price lump responsibility of prior approval between contract
sum and cost employer, before issuing sum, pc sum and
reimbursement contractor and cert. provisional sum
architect
JUNE 2015 a) Process of a)factors of selection a) +ve and –ve of 4- EOT and 6 RE
-5q tendering of tenderers Bills of Quantities -PC, Provisional
Choose 4 b) Contractor b)meaning of b)compare features Sum, VO, DLP, LD,
selection by direct contract and of Lump sum and Contingencies Sum
negotiation – purpose of building Re-measurement -consequences of
situation contract contract price EOT

5 - Role and
responsibility of
employer, contractor
and architect
DEC 2015 a)+ve and –ve of a) Contractor case of Pembinaan - liquidated damages
-4q ab contract with BQ selection by direct Leow Tuck Chui v Dr. - difference between
b)characteristic for negotiation – Leela and Hickmans contract sum, pc
- fixed price lump situation v Roberts sum and
sum b) right to time and provisional sum
- cost money extension
reimbursement of delay due to
- employer fault
- contractor fault
- fault of neither
JUNE 2016 a)+ve and –ve of a) Contractor a) right to time and case of Pembinaan
-4q ab contract with BQ selection by direct money extension Leow Tuck Chui v Dr.
b)characteristic for negotiation – of delay due to Leela and Hickmans
- fixed price lump situation - employer fault v Roberts
sum b)process of - contractor fault
- cost tendering - fault of neither
reimbursement b) 5 RE for EOT
DEC 2016 a) Process of a) Contractor a) 5 RE for EOT - liquidated damages
-2q abcd tendering selection by b) right to time and - variation order
b) Role and negotiation or money extension - difference between
responsibility competition of delay due to contract sum, pc
-employer situation n effect - employer fault sum and
-contractor b) Comparison - contractor fault provisional sum
-architect contract with bq - fault of neither
and without bq
JUNE 2017 Process of tendering +ve and –ve of EOT and RE contract sum, pc
-4q Role n responsibility contract with BQ sum and provisional
sum, LD, VO
PAST EXAM QUESTIONS

Role and Responsibilities


- Identify and analyze the roles and responsibilities of the project participants in building contract (15m)-Dec
2016
- in conventional/traditional building contract (15m) June 2015, Dec 2014
- a)The Employer b)The Contractor c)The Architect

Traditional and D&B


- May be about contractual relationship or role and responsibilities. Similar to above
- X pernah keluar

Process of Tendering
- With aid of flow chart, illustrate and explain the process of tendering and evaluation
- Dec 2016 (10m), June 2016 (15m), June 2015 (15m)

Selection of Tender
- Analyze the circumstances and effect of employing each method (negotiation / competition) Dec 2016 (15m)
- Explain under what circumstances would you advice the client to negotiate directly with a particular contractor
instead of advertising for tenders (10-15m) June 2016, Dec 2015, June 2015, Dec 2014

Contract with BQ / Without BQ


- Compare the nature of projects which are suitable for a contract based on bills of quantities and contract based
on drawings and specification (10m) Dec 2016
- Discuss the advantages and disadvantages of contract based on bills of quantities (10-13m) June 2016, Dec
2015, June 2015, Dec 2014

Extension of Time (EOT) and Relevant Events (RE)


- Identify and explain 5 RE as provided in PAM Contract Form 2006 for EOT (15-20m) Dec 2016, June 2016,
Dec 2014
- Analyze the rights to time and money extensions because of delays due to
- a) employer’s fault b) contractor’s fault c) fault of neither (15m) Dec 2016, June 2016, Dec 2015

Sum, LD, VO
- Elaborate the following statements:
- a) the purpose and operation of liquidated damages
- b) the requirement for a valid variation order to the works in construction
- c) the distinction between contract sum, prime cost sum and provisional sum
- Dec 2016 -15m, Dec 2015 -25m (a,c), Jun 2015 -12m, Dec 2014 -25m

Retention Sum
- Maybe similar to Sum, LD, VO
- X pernah keluar

Precedent Case
- Based on the precedent cases of Pembinaan Leow Tuck Chui v Dr. Leela, and Hickmans v Roberts, analyze the
cases in regard to certification and interference in the contract administration
- 20-25m June 2016, Dec 2015, June 2014
ROLE AND RESPONSIBILITIES

- Identify and analyze the roles and responsibilities of the project participants in building contract
- (15m) -Dec 2016
- a)The Employer b)The Contractor c)The Architect

Answer :

The principal actors are:

- Client
- The design consultant (architect, surveyor, QS etc…)
- The builder (contractor, SC, supplier etc…)

Client / Employer (5m)

- Provide a brief to define the content, requirement and function of the building.
- Issues instructions through the architect or superintending officer (SO).
- Commission the construction project and pays the cost of work (certified by the architect, SO,
contract document.
- Make decision- ultimate decision maker over all facets of the project (type,size,cost).
- Finance the project – employer’s own fund / borrowing.

Architect (5m)

- Responsible for design, inspection of the works during construction and certification
- Interpret client’s brief, prepares preliminary and detail design.
- Obtaining planning permission from the local authority
- Securing the remedying of defects at the end of defect liability period (DLP)
- Certifying payment & final account

Contractor (5m)

- Responsible for planning the works, mobilisation, construction and commissioning.


- The only other party to the building contract with client
- Provide the overall coordination of the many firm who contribute to produce the building
- Expertise in project and cost management.
- May tender for a project against dwg and quantities or bid for design and built services.
ROLE AND RESPONSIBILITIES
- in conventional/traditional building contract (15m) June 2015, Dec 2014

Contractual relationship in the conventional construction contract

Administrative arrangement under conventional construction contract

Client

- The main contract is in between client and contractor.


- Provide a brief to define the content, requirement and function of the building.
- Make decision- ultimate decision maker over all facets of the project (type,size,cost).
- Issues instructions through the architect or superintending officer (SO).
Consultants

- There is no connection between consultant and contractor.


- Consultants generally carry out design, tendering and contract administration, and inspection of works.
- Consultant appoint by client by an informal exchange of letters or formal memorandum of agreement.
- Error made by the consultant architect which cause loss to the contractor could not lead to an action in
contract.

Contractor

- Contractor in contract with :


a) Domestic supplier and sub-contractor.
b) Nominated supplier and sub-contractor.
- Responsible for planning the works, mobilisation, construction and commissioning.
- Carry out and complete the contract works as describe in the document
ROLE AND RESPONSIBILITIES

Comparison of conventional/traditional and design and build

Answer :

Conventional /traditional Design & build

Contractual
relationship
diagram

- Client is in contract with contractor - Should know his contractual and


and consultant. financial commitment before
- Client select design consultant to construction started.
design. - Appoint independent project
Client manager to safeguard their interest.
- Client requirement must be
accurately specified and brief for
design unlikely to change.

- Contractor in contract with : - Solely responsible for all aspects of


a) Domestic supplier and sub- the project.
contractor. - D&B contractor in contract with sub-
Contractor
b) Nominated supplier and sub- contractor and the consultant for
contractor. design.

- The design consultant has no - Prepares conceptual design, then


contractual agreement with the contractor offer design in
contractor. competition
Consultant
- Administer the contract on behalf of
client.

SELECTION OF TENDER

Factors influencing decision on the method:


a) The building type and size
b) Nature and complexity of project
c) Likely method of construction eg: traditional or innovative technology
d) Extent of the completion of design documentation
e) Time available before the start on site is required
f) Time required to complete the project
g) Financial resources of the client eg: a firm price tender or reimbursable
h) The likely early involvement of the contractor in the design process
SELECTION OF TENDER

a) Analyze the circumstances and effect of


employing each method (negotiation /
competition) Dec 2016 (15m)
b) Explain under what circumstances would
you advice the client to negotiate directly
with a particular contractor instead of
advertising for tenders (10-15m) June
2016, Dec 2015, June 2015, Dec 2014

NEGOTIATION COMPETITION
1. A method to select tender without a call for 1. Consists of open tendering and selective tendering
competition 2. Open -The tenders are selected through
2. The client selects a contractor directly and then competition via public advertisement in website or
negotiates with terms of agreement and form of newspaper over specified period
payment 3. Selective – suitable firms are invited from client’s
3. Client can invite a contractor to prepare a budget approved list singled out by reputation and
quotation for the work based on limited information recommendation

Circumstances / When to use: Circumstances / When to use:


1. Established business relationship between client and 1. For general project and required low to medium
contractor level of expertise
2. Quality and not economy is a major determinant 2. Adequate number of potential tenderers with
3. A continuation contract based on the first contract relevant expertise in the market
4. Additional contract where the contractor is already 3. Complete or sufficient documentation to enable
on site the tenderers to appraise the work
5. The contractor have special expertise relevant to the 4. There are sufficient time available for
project – special project of high level of complexity advertising/invitation, tender submission and
6. Contractor’s contribution is required in relation to evaluation period
design and programming Open Tendering
7. Details of the final scheme are incomplete 1. Commonly used by government agencies to
8. May perceived as to be lack of accountability, ensure accountability of public funds
therefore not suitable for public project =public 2. Allows for new firms the chance of tendering work
funded Selective Tendering
9. Early completion is desired : early start on site and 1. Want benefit of competition but only capable and
there is little time for competitive tendering process approved firm can submit tenders

Effect / Outcomes: Effect / Outcomes:


1. Cut down time and money on tendering Open Tendering
2. Completed design documentation is not necessary 1. Attract a large number of tenders and more
for work to start and the contractor’s skill may be competitive bids, however it is inefficient use of
brought into the design process industry resource (eg: to duplicate docs)
3. Absence of competition, so the tender sum may be 2. Lowest possible price will be obtained although
higher experience and financial standing of such
4. Client may think it worth paying more in return for a contractors are suspected
quicker job or better quality than he may otherwise Selective Tendering
obtain 1. Ensures the lowest price from contractors who are
capable of doing works
2. Lower cost of tender administration and evaluation

*if a) answer both negotiation and competition if b) answer negotiation only


CONTRACT WITH BQ / DRAWING & SPECIFICATION

STANDARD FORM OF CONTRACT


A wide range of form of contract is applicable to different types of project. Example of standard forms are PAM, JKR and
CIDB form of contract. The form of contract may be provisioned with or without bill of quantities (BQ).

BILL OF QUANTITIES (BQ)


BQ document is prepared as a basis for a uniform tendering and determination of price that the client pays for the project.
The contents of a BQ normally cover these matters:

1) Preliminaries : the contractor’s general obligation and management arrangements


2) Specifications : materials and workmanship for each work
3) Measured items : detailed quantification of works
4) Prime cost sums : for works to be carried out by nominated sub-contractor or goods to be supplied by nominated suppliers
5) Provisional sums : for works which is not foreseen, defined or detailed at time of tendering

DIFFERENCE BETWEEN BQ AND DRAWING & SPECIFICATION IN TYPES OF CONTRACT


The differences between form of contract with and without bill of quantities are shown in table below:-

Drawing and Specification


Item Bill of Quantities (BQ)
(without BQ)
1) Definition BQ is a document prepared to provide The quality and quantity of work is
specific measured quantities of the shown in contract drawings and
items of work identified in the described in the specification. Any
drawings and specified in the tender divergences in the documents are
documents. corrected by the architect.
2) Preparation It is prepared by quantity surveyors The architect and other consultants
(QS) (eg: C&S engineer) prepares drawings
and specifications
3) Scale of Suitable for large project with Suitable for small project and there
project flexibility of time. are limitation of time
4) Error in Any changes or error in the drawing Any error and inaccuracies in
quantities or tender will be held responsible by quantities or missing any items of
the employer (QS and Architect). work will be held responsible by the
For example, if the BQ prepared by QS contractor.
and drawings and specifications This is due to the contract having a
prepared by Architect does not telly, fixed price after the tendering process.
the extra cost will be borne by QS and The contractor tendered and quoted
Architect. his own quantities based upon the
contract drawing and work
specification. Any discrepancies are
from his miscalculations.
5) Correction in -Any discrepancies or changes are -Contractor are required to prepare a
quantities subjected to adjustment for schedule of rates with provision for
variations and approved claims. fluctuations or variations to avoid
extra cost in any variation to be borne
-Variations (variation order) are by the contractor.
usually issued by architect or
engineers and require approval from -Schedule of rates is similar to bill of
client. quantities but without quantities. It
includes price for each item or unit of
-In a variation of works, a party is work
entitled to adjust the contract price in
their favour
6) Evaluation -All contractors enter their price -Each contractor has their own
for tender based on the same measurement quantities and price rate thus does
data in the BQ thus provide clear not provide for easy comparison and
basis for tender comparison and evaluation.
evaluation.
7) Contract sum The sum can be flexible until the The contract sum is a fixed price
completion of work due to variation hence provision for fluctuation and
or any contingencies. variation in tendering will lower risk of
contingencies.
8) Example of i. PAM Contract 2006 (With i. PAM Contract 2006 (Without
contract Quantities) Quantities)
ii. CIDB Option Module A – Bill of ii. PWD Form 203 – without
Quantities quantities
iii. PWD Form 203A – with quantities
9) Advantages -BQ provides a uniform basis for The contractor has more incentive to
obtaining tenders. complete the job quickly in order to
-It reduce cost for the contractor to maximize profit, minimize overhead
prepare his own quantities. and move to proceed with the next
-Discrepancies in tender prices can job.
easily be identified.
10) Disadvanta The design must be at advance stage The design has limited flexibility for
ges of completion and need detailed changes as any alteration may lead to
drawing and specification in order to an increase in cost.
prepare BQ.
CONTRACT WITH BQ / DRAWING & SPECIFICATION
EXTENSION OF TIME (EOT) + RELEVANT EVENTS (RE)

QUESTION A: 5 RE in PAM Contract Form 2006 for EOT (20 m)

Extension of time Relevant Events


EOT is the approved additional period of time that is RE is the events listed in the contract for which an
extended from the original completion date to complete EOT may be awarded
work. It is cause due to excusable events specified in
the contract

1. FORCE MAJEURE 4. DELAY BY EMPLOYER IN GIVING SITE


 PAM 2006. Clause 23.8 (a) POSSESSION
 Acts of God or man-made events which are  PAM 2006. Clause 23.8 (f)
beyond the control of the parties  Land is in possession and control of the
 Eg: earthquake, tsunami, plague employer
 Delay in site possession enable contractor to
apply for EOT provided the delay does not
2. EXCEPTIONALLY INCLEMENT WEATHER exceed Period of Delay stated in the Appendix
 PAM 2006. Clause 23.8 (b) (refer Clause 21.1 & 21.2)
 The weather is exceptional for that time of year  If the delay exceed Period of Delay, contractor
and location may terminate the contract or if he choose to
 To establish this, the weather of that year and proceed with contracts, he can claim for EOT
location have to be refer to past statistics of
weather conditions
 Eg: unpredictable persisting flood 5. OPENING UP & INSPECTION FOR COVERED
WORK
 PAM 2006. Clause 23.8 (l)
3. LOSS/DAMAGED OCASSIONED BY SPECIFIED  Contractor is entitled for EOT if during the
RISK opening or inspection of any covered work, or
 PAM 2006. Clause 23.8 (c) testing any materials and it is found to be in
 Contractor will have to reinstate the work if they accordance with contract
are damaged by the perils  The EOT is awarded to contractor in order to
 PAM Clause 20.A – 20. C had specified perils covered back any opening for inspection
that can be covered by employer’s or
contractor’s insurance
 Eg: fire, explosions, theft
EXTENSION OF TIME (EOT)

QUESTION B: Rights to time and money extensions because of delay due to: (15 m)

i) EMPLOYER’S FAULT ii) CONTRACTOR’S FAULT iii) NEITHER’S FAULT


- Cause of delays; - Usually caused by natural
- Cause of delays;
• Delay in employer to give events such as:
• Contractor is not progressing
access over employer’s land at the rate expected • Force majeure
• Delay or failure in supplying • Exceptionally inclement
• Contractor’s inability to secure
materials by employer weather
labour and materials
• Delay in supplying information - If the cause of delay falls under
• Delay of commencement of
from employer PAM 2006 Clause 23. 8, the
work at site
- If the cause of delay is as above contractor is entitled to EOT but
- As stipulated in PAM 2006
or as state in RE (PAM 2006 there will be not Loss and
Clause 22, if the contractor
Clause 23.8), the contractor is Expenses (LE) can be claimed
fails to complete the work by
entitled to apply for EOT - A new completion date will be
the Completion Date, he will be
- When the contractor is awarded fixed to complete the work and
issued with CNC
with EOT, he will be release contractor is relieved form any
- Upon the issuance of CNC, the
from paying LD and may claim LD for the period of delay
contractor will not be awarded
LE caused by the delay - There will be no issuance of
EOT or reimbursement for Loss
provided it is employer’s fault CNC and client will not be
and Expenses caused by the
- However, EOT will only be entitled to LD until the next
delay
granted if the event is listed in completion date.
- The client is entitled to LD from
the contract. If the fault of the the completion date to the
employer does not fall within
extended completion date and to
the clause and delay occurred, the date of practical completion
the LD clause become
inoperative
- EOT duration must be fair and
reasonable

EOT √ EOT X EOT √


LE √ LE X LE X
LD X LD √ LD √

Legend:
RE – Relevant events LD – Liquidated damages CNC – Certificated of non-completion
EOT – Extension of time LE – Loss and expenses
EOT and LE are claimed by contractor
LD are claimed by employer/client, bear by contractor

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