THE COPPERBELT UNIVERSITY

SCHOOL OF BUILT ENVIRONMENT

ESA/B 520- PROJECT MANAGEMENT
TEST 1
TIME ALLOWED: 2.Hrs.
DATE: 27Th October 2004
INSTRUCTIONS: ANSWER ALL FOUR (4) QUESTIONS. EACH QUESTION
CARRIES 25 MARKS.

QUESTION 1

SS investments is putting up a commercial facility in Ndola. Figure 1 below shows a

simplified sequence of activities in the design and construction programme for the
facility. Because of the uncertain nature of the programme, 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.

a) What is the probability that the programme will be completed in 31 .5 (thirty

one and half months)? (16 marks)

b) Explain the following terms:

o Total float (3 marks)
o Free float (3 marks)
o Independent float (3 marks)

6-8-10 2-3-6
6-8-10 2-3-6
2 4 9 1-4-6
6-9-15 1-4-6
6-9-15
2-3-5
1 2-3-5 1
1 6 1-2-4 0 1
1-2-4
2-4-8 4-7-9
2-4-8 4-7-9 2-4-5
2-4-5
3 5 7 8
4-7-12 5-9-11 2-3-5
4-7-12 5-9-11 2-3-5

fig 1
QUESTION 3

(a) For a client, Novated design and Build is better than the Separated procurement
system. Analyze the statement. (10 marks)

(b) What is Construction Management Procurement System? (5 marks)

(c) The engagement of Package Contractors under the Construction Management

Procurement System is the same as the engagement of Nominated sub-contractors
under the Traditional Procurement system. Analyse the statement. (10 marks)

QUESTION 4

(a) On the balance sheet of MM Investments there is are Long term liabilities and
Current liabilities. Explain the difference between the two liabilities. (6 marks)

(b) In its quest to boost its capital, MM Investments has decided to float its shares on
the stock exchange. Your closest friend is contemplating investing in this firm.
Advise him the difference between Preference and Ordinary shares and outline
the advantages and disadvantages of each. (10 marks)

(c) With respect to contract administration, explain the following:

i. Performance bond (3 marks)
ii. Prime cost sum (3 marks)
iii. Domestic sub-contractor. (3 marks)

END OF TEST. WISH YOU THE BEST

CHIFUNDA/MILANDU.