THE COPPERBELT UNIVERSITY

SCHOOL OF BUILT ENVIRONMENT

2006 SUPPLEMENTARY EXAMINATIONS

PROJECT MANAGEMENT
(ESA/B 520)

FEBRUARY 2007

TIME ALLOWED: THREE (03) HOURS

INSTRUCTIONS

 ANSWER ANY FOUR (4) QUESTIONS

 EACH QUESTION CARRIES 25 MARKS
 QUESTION 1

Kenwood developers called for tenders for the building of a complex factory which
was to be built in Kafue. An advert was placed in the print media for the short listing
of contractors. Three contractors were successfully short-listed. Tender conditions
called for the submission of a bid bond together with a conforming tender which was
based on an architect’s scheme design. The procurement system was to be Novated
Design and Build. The three contractors submitted conforming tenders. Among them
was Ovam Contractors which in addition to a conforming tender submitted an
alternative tender with an innovative design option that was going to save the client
20% in construction costs.

After the adjudication of tenders the contract was awarded to Ovam Contractors on
the basis of an ‘alternative tender’.

a) The lowest bidder among the conforming tenders, Sipp Contractors, has
challenged the appointment of Ovam alleging that Kenwood developers is in
breach of contract and is threatening to take legal action. Kenwood has argued
that it has the right to choose any contractor it wants for the contract and if it
wants it can choose none of those who tendered. Concisely and precisely advise
Sipp on the merits of its contention and of Kenwood’s response. (15 marks)

b) Explain the meaning of a bid bond (5 marks)

c) What is meant by the adjudication of tenders? (5 marks)

QUESTION 2

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

construction programme of a 2 storey building. Because of the uncertain nature of the
site, it is decided to analyse 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) What is the probability that the programme will be completed in 31 weeks?

(16 marks)

b) Explain the following and elaborate their use and application in decision
making processes in project management.
i) Decision trees
ii) Sensitivity analysis
iii) Pareto Rule (9 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

QUESTION 3

(a) Time, Quality and Cost are major factors to consider in project control.
Explain in detail how these factors can practically be controlled on a project.
(5 marks)

(b) Under the ZIA standard form of contract, a contractor can be allowed
extension of time. Elaborate five possible relevant events on which a
contractor can base his application for an architect to issue extension of time
(EOT). (10 marks)

(c) Explain the difference between Measurement and Cost Reimbursement type of
Contracts. (5 marks)

(d) Critically analyse the difference between the typical Zambian contractor (such
as Minestone) and a Management Contractor. (5 marks)

QUESTION 4

a) Explain the following planning techniques and outline situations in which they
are used.
(i) Line of Balance Planning Technique
(ii) Time Chainage
(iii) Work Breakdown Structure
(iv) Programme Evaluation and Review Technique (16 marks)

b) Explain the term Resource Leveling which is used in Project Planning and
outline its necessity. (4 marks)
 c) Explain the term Monitoring and Control in Contract Management and outline
its significance. (5 marks)

QUESTION 5

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 5 Wade Adams
B 1-3 Wall structure 14 Minestone
C 2-4 Plumbing 5 Minestone
D 3-4 Electricals 10 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 10 E-deco
I 6-7 Landscaping 6 Xscapes

(a)
i. Using the CPM approach, determine the contract period for the above
works. (7 marks)
ii. Which package contractors, if any, can delay starting their work without
affecting the overall construction period and by how much time in each
case? (5 marks)

(b) 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 14 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 10 week lag after the completion of activity E.

i. Using the Precedence diagram format determine the new contract

duration (10 marks)
ii. Highlight the critical path (3 marks)

END OF EXAM