UNIVERSITY OF TECHNOLOGY, JAMAICA

School/Department: School of Engineering

Module Name: Construction Project Management

Module Code: CVE4006

Date: 26th of October 2022

Lecturer: Percival Stewart

Student Name Student ID#

Myeisha Williams 1903012

Lecture Session: - 7pm to 9pm

Question 1
Explain in detail giving examples of what a Work Break down Schedule is.
Essentially, the WBS defines the “what” of the project. Everything you need to accomplish in

the project is displayed in a single, easy-to-understand chart. The purpose of this chart is to

break down complex activities into smaller, more management constituents. It also describes

the deliverables needed to complete the project, i.e. the “what” of the project. It doesn’t

include timelines or resources. The goal of the WBS is to give the project team a hyper-

focused idea of what they need to achieve. An example of a work break down

structure/schedule is shown below

The top of the hierarchy shows the project name which would be level 1, below that are the

sub divisions are level two and below that are the activities to be undertaken under each sub

divisions.
Prepare a WBS for a 1km water trunk main 32” Dia. with four Tee intersection supply
take off at 100 m equidistance.
Question 2
For the following table of information:
i. Draw the network diagram (10 marks)
ii. List the network paths (5 marks)
iv. Determine the float for each activity (10 marks)

Earliest Latest Latest

Earliest Start Start Time Start Time Finish Float
Activity tu (Duration) Time (EST) (EFT) (LST) Time (LFT) Time
START 0 0 0
A 18 0 18 0 18 0
B 14 18 32 18 32 0
C 12 32 44 32 44 0
D 14 44 58 68 82 24
E 21 44 65 44 65 0
F 14 44 58 126 140 82
G 12 58 70 82 94 24
H 22 72 94 72 94 0
I 15 72 87 125 140 53
J 32 94 126 94 126 0
K 14 126 140 126 140 0

Critical Path = A-B-C-E-H-J-K

v. Prepare a detailed Gantt chart for all activities

Site clearance
excavate
foundation
columns
walls
floors
roof
plumbing
finishes
Electrical finishes
Practical
completion

Question 3
i. Explain what constitutes a contract and name and explain the Four (4) types
used in the Construction process.
A contract is an agreement between two parties that creates a legal obligation for both to
perform specific acts such as rendering payment or delivering goods.

Lump sum contract - contracts are the most frequently-used contract, particularly for

building construction. The idea is that all aspects of the project are pre-determined and laid

out in a fixed scope of work. The cost is known and upfront for the owner, and the contractor

is able to manage expectations.

Advantages

The amount of the project is known and upfront before the project begins.

Expectations are managed on the owner’s side.

Disadvantage
If any out-of-scope work is needed, a change order will be required, which could delay the

timeline of the project.

If the project goes out of scope as a result of the contractor’s poor time management, rework,

or weather, the contractor will suffer loss if a change order was not used

Unit price contract - contracts are necessary when the work materials can’t be measured

accurately ahead of time. These are most common with civil projects. For example, if a

contractor is tasked with building a highway, dirt removal would be something that can’t be

accurately quantified but would require time and heavy machinery. For this contract, owners

provide fixed quantities for the project materials, and contractors apply their personal unit

pricing. Contractors can then bid for the project, and the owner will choose whichever unit

price works best for them. Advantages of this type of contract is that the unit prices are fixed

thus making this a pro for the owners, in addition if the owners original unit estimate are

inaccurate, then they are responsible for covering any additional cost

The disadvantage of this type of contract is that If the owner’s original estimates are

inaccurate, they will need additional work from contractors and go over budget (for

contractors, this would be a pro, since more work = more money). The full price of the

contract is not known until the project is near completion.

Cost-plus contracts - does not require a predefined scope of work with a fixed cost. Instead,

the contractor keeps track of the time and materials spent throughout the project and the

owner is responsible for reimbursement, plus a fixed fee for the contractor.

Advantages
There is guaranteed profit for the contractor since they can add on work at any point in the

project, plus the percentage of the total cost is added at the end.

Disadvantages

There is significant risk for the owner, who is responsible for reimbursing all time and

materials spent on the project.

A ton of paperwork is involved with these contracts because every receipt and time stamp

needs to be accounted for in order to bill the owner properly.

Target-cost contract - this contract is a combination of the lump sum and the cost-plus

contracts. The contractor is paid based on the actual project costs, plus a fee (fixed or

percentage of total cost). This fee makes provision for a case where the cost of the project

does not exceed certain target costs specified by the owner. The contractor faces risk if the

project cost increases; however, the contractor is rewarded a percentage of any savings

between the target and actual cost.

ii. Discuss eight (8) key elements that make up a standard construction contract

1). Termination clause - This is often included in construction contracts and considers the

terminating party and the cause of termination, if any. The method of termination and the

termination fees are often negotiable.

2). Warranties and Statute of limitations- The contractor should state any warranties clearly in

the contract. The warranties make provision for the correction of any issue caused by the

contractor at no cost to the owner within a specified time.

3). Mediation/arbitration and attorney’s fees - This element makes provision for disputes

surrounding the contract. Both parties may agree to settling disputes through mediation where

a third-party mediator may facilitate a resolution, before demanding for arbitration.

Provisions for the attorney’s fees should also be clearly stated. The contract may state that the

prevailing party is entitled to recovering legal fees.

4). Project cost and payment terms - The project cost should be clearly stated in the contract.

It should also detail the payment schedule, that is, the specific dates and amounts for various

instalments.

5). Project Scope- The scope describes the construction project in clear details. It outlines the

precise tasks to be undertaken by the contractor. It also determines the amount of work

required by everyone to fulfil their contractual obligations.

6). Contractor and owner information and signature - In any standard construction contract,

the contractor’s information must be clearly detailed. This includes the contractor’s name,

contact information, license number, email address and company information.

7). Owner’s information and signature- For the contract to be legally binding, the owner’s

name, address, signature, and other relevant details must also be included in the contract.

8). Contract documents - The contract documents must also be included in the contract. This

includes drawings, specifications, scope of works, conditions, bill of quantities, schedule, and

other pertinent documents.

iii. Define tendering, explain why is this process necessary

Tendering is the process by which bids are invited from interested construction contractors to

undertake specific packages of construction work. Tendering allows the owner of the project

to obtain a fair price and the best value possible for the project at hand. It ensures that true

competition is achieved, and that a fair chance is given to all contractors.

iv. List and explain in detail 4 types of Tendering methods

Framework Contracting - This is a long-term agreement with suppliers, contractors and

service providers of non-consulting services which sets out terms and conditions under which

specific procurements can be made throughout the term of the agreement.

Closed Tendering - In this method a select group of contractors are invited to bid. Usually,

these contractors are prequalified for the specified works, or are specialists in the field of

work. The necessary bidding information and data are documented in the Request for

Quotation (RFQ) or Request for Proposal (RFP) and sent to the prospective bidders

Direct Contracting - This method is used only when there is a single known company that

that can provide the necessary services, goods, works or continuation of works or services for

the project.

Open Tendering - This method allows all eligible bidders the chance to bid competitively

for procurement opportunities.

v). The Contractor’s tender states that it is open for acceptance for six weeks from the

date of tender, but the contractor withdraws it after three weeks citing a suddenly

increased workload. Is the contractor liable to the employer for the additional cost of a

replacement contractor?

When a contractor submits a tender, it is an offer to carry out the required work for a certain

sum. The employer is free to accept the offer, reject it or to attempt to negotiate. Until the

offer is accepted there is no contract. The law is that an offer can be withdrawn at any time

before it is accepted and there are some rather awkward rules regarding acceptance by post.

Therefore, in normal circumstances the contractor can withdraw the tender before it is

accepted and, strictly, no reason need be given. The contractor has no liability for any

additional costs suffered by the employer. In addition to that the position is very different if

the employer pays the contractor to keep the tender open. Tenders often state that in
consideration of a payment the contractor agrees to keep the tender open for acceptance for a

period of 6 weeks from the signing date of the contract. The effect of that is to create a little

contract between employer and contractor whereby the consideration is the employer’s

payment and the contractor keeping the tender open. Effectively, the employer has bought an

option for a few weeks to decide whether or not to accept the contractor’s tender. A sum of

say $100,000.00 may not seem much, but the law does not require that adequate

consideration is given. It is sufficient if the consideration has some value. In this case, a

contractor who withdraws the tender after three weeks would be in breach of the little

contract and the employer would probably be able to bring an action for damages. The

damages would be likely to be the additional costs incurred by the employer in engaging

another contractor for the work.

Vi). Explain in detail the various stages of a tender Review process and their Personnel.

The various stages of the tender review process and their personnel are as follows:

Opening and Recording Tenders- tenders should be opened and recorded in a way that

maintains security of the tenderers intellectual property and that offers no advantage to one

tenderer over another. It is ideal or a good practice to open ad summarise tenders as soon as

possible after the closing time. This process should be checked by at least two persons.

Tender analysis- The importance of assembling an experienced and competent tender

evaluation team is critical to the success of the tender process. Above all, a consistent

approach to the evaluation of all tenders is required. After receipt of tenders, submissions are

comparatively assessed against the Criteria for Selection defined in the tender documents.

Tenders are likely to contain significant differences, particularly in areas of design, time,

cost, risk allocation, durability and operation. Tenders may also differ in terms of certainty of

delivery and clarity of content. A tender that does not comply with the tender documents
should be rejected. If a tender is rejected, the reasons for such action are to be clearly

documented and communicated to the tenderer.

Tender Clarifications- The evaluation team may seek clarification of any issues from

applicants, verbally or in writing, but may not solicit new information. The tender

clarifications need to be carefully managed to ensure that confidentiality is maintained and

tenderers are treated equitably and ethically.

Tender selection and award- The lot feeder should ensure that unsuccessful tenderers are

advised in writing that their tenders have been unsuccessful. In the finalisation of the contract

documentation, the lot feeder and successful tenderer shall ensure that the contract

incorporates the tender submission of the successful tenderer and any qualifications during

the tender process. It is noted that this phase of the process is to settle all outstanding

technical, commercial and/or legal issues necessary for finalisation of the contract. It is not an

opportunity for either party to vary the final contract price or to materially alter the proposal.

Vii). Using a clearly labelled diagram, explain the procurement cycle.