Question 1

A dispute arose between KCM (the Employer) and ADF (the contractor) as to the
status of Liquidated and Ascertained damages (LAD) while using the ZIA Form of
Contract. An interim certificate issued by the architect stated the total value of work
done (whether done properly or not) from which the agreed retention and earlier
payments were deducted. It showed further deductions on the face of the certificate
for defective work and for liquidated damages.

ADF protested that the certificate had not been properly calculated and challenged the
deduction of LAD and for defective work. KCM responded that it was entitled to
deduct for improper work and had the right to deduct LAD, and that in any case, ADF
was seven weeks behind schedule so far as the contract programme he had submitted
was concerned. It was apparent that ADF was not going to complete the project
within the remaining one week. In response ADF withdrew its labour from site.

(a) Explain Retention and why it is provided for in the ZIA form of Contract.
(3 marks)

(b) What is Defects Liability Period? (3 marks)

(c) Briefly outline the structure of the ZIA Form of Contract. (7 marks)

(d) Concisely and precisely advise ADF on the merits of its action and its
contention as to the correctness of the interim certificate and of KCM’s
response. (12 marks)

QUESTION 4

The table below is for a pre-contract programme of activities for the construction of a
Motel submitted to the client by a Management Contractor.

Activity i-j No. Description Duration Package Contractor

Code (Weeks)
A 1-2 Substructure 8 Wade Adams
B 1-3 Wall structure 14 Minestone
C 2-4 Plumbing 5 Minestone
D 3-4 Electricals 8 Terotech
E 3-5 Aluminium works 12 Just Aluminium
F 4-6 Plastering & flooring 10 Minestone
G 5-6 Air conditioning 7 Eyaco Engineers
H 5-7 Interior decorations 8 E-deco
I 6-7 Landscaping 6 Xscapes

After the award of contract the Management contractor synchronizes the sequence of
activities and notes that he needs to revise the program in order for it to take care of a
few factors as below;
  Due to some constraints, a 17 weeks delay after the completion of activity C
will be required before the commencement of activity F.

 Activity H will have a lead factor of 50% (6 weeks) after the start of activity
E.

 Activity G will have a 13 week lag after the completion of activity E.

(a) Explain the following terms:

i Critical path
ii Lead time
iii Lag
iv Loop (4 marks)

(b) Using the Precedence diagram format determine the contract duration

(10 marks)

(c) Highlight the critical path (3 marks)

(d) Explain the Line of Balance Planning Technique and outline situations in
which it is used. (4 marks)

(e) Explain the term Resource Leveling which is used in Project Planning and
outline its necessity. (4 marks)

QUESTION 1

Figure 1 below shows a simplified sequence of activities in the design and

construction programme of a bridge over the Kafue river. Because of the uncertain
nature of the work, it is decided to analyze the arrow diagram using three estimates
(PERT) of durations of activity. The three durations (in months) are shown against
each arrow in the figure. During tendering the client had requested the contractors to
provide a bid bond.

a) Explain the meaning of a bid bond (4 marks)

b) What is the probability that the programme will be completed in 33 weeks?

(12 marks)

c) The Pareto rule is one of the tools used in Project Management.

i. Explain the Pareto rule and its underlying principles (5 marks)

ii. Explain and illustrate how this principle is applicable to

Project Management. (4
marks)
 6-8-11 2-3-6
6-8-11 2-3-6
2 4 9 1-4-6
6-9-17 1-4-6
6-9-17
2-3-6
1 2-3-6 1
1 6 1-2-4 0 1
1-2-4
2-4-8 4-7-9
2-4-8 4-7-9 2-4-6
2-4-6
3 5 7 8
5-7-12 5-9-11 2-3-5
5-7-12 5-9-11 2-3-5

fig 1