Construction Management - Question Bank
Construction Management - Question Bank
Construction Management - Question Bank
Y–
Question Bank
What management means?
The organization and coordination of the activities of a business in order to achieve defined
objectives. ... Management consists of the interlocking functions of creating corporate policy
and organizing, planning, controlling, and directing an organization's resources in order to
achieve the objectives of that policy.
Some examples of Public Private Partnership projects in transport sector in India. Some
of the well-known Public Private Partnership projects in India are mentioned below. SECOND
VIVEKANANDA BRIDGE (now Sister Nivedita Bridge) in Kolkota: This bridge is one the first BOT projects,
undertaken in 1995.
Build-Operate-Lease-Transfer (BOLT)
BOLT is a model for the development of infrastructure projects. Here, the government
gives a concession (project sanction) to a private entity to build a facility (and possibly
design it as well), own the facility, lease the facility to the public sector and then at the
end of the lease period transfer the ownership of the facility to the government.
The specific characteristics of BOOT make it suitable for infrastructure projects like
highways, roads mass transit, railway transport and power generation and as such they
have political importance for the social welfare but are not attractive for other types of
private investments.
Build–operate–transfer - Wikipedia
BOLT
It is a non-traditional procurement method of project financing whereby a private or public sector client
gives a concession to a private entity to build a facility (and Page 6 Nirali Shukla et al 140 possibly design
it as well), own the facility, lease the facility to the client, then at the end of the lease period ...
It is a non-traditional procurement method of project financing whereby a private or public sector client
gives a concession to a private entity to build a facility (and Page 6 Nirali Shukla et al 140 possibly design
it as well), own the facility, lease the facility to the client, then at the end of the lease period ...
Here, the government gives a concession (project sanction) to a private entity to build a facility (and
possibly design it as well), own the facility, lease the facility to the public sector and then at the end of
the lease period transfer the ownership of the facility to the government.
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Jul 4, 2018
List of the Advantages of Build-Own-Operate-
Transfer
1. It minimizes the public cost for infrastructure development.
Using the BOOT model, the public sector is able to take advantage of the efficiencies found in
the private sector for a minimal investment. Many PPP relationship using this model will offer an
incentive, such as tax breaks, to the private organization to develop the infrastructure. Because
the private sector assumes the risk for planning and use, they are given an opportunity to profit
from the structure by recruiting tenants for it. Then, after the contracted time, the public sector
takes over ownership.
Private companies assume the debts involved in the initial phases of a BOOT relationship. Even
in PPP structures where some initial funding may be provided by the public sector, the majority
of the initial development cost will be the responsibility of the private organization. This allows
the public sector to maintain a balanced budget while reducing its influence in how the new
infrastructure is developed.
The public sector brings in the best private contractors possible when developing infrastructure
using the BOOT model. This process encourages innovation, which allows the community to
benefit from advanced technologies which would be included with the project. If the project was
implemented by the public sector only, this inclusion factor would not always be possible
because of the costs involved.
The public sector is tasked with the need to bring in the best possible private companies to
complete the contract. If the necessary expertise is not available locally, then national or
international private enterprises might be brought in to create the required infrastructure. This
process allows for the companies with the most expertise to be brought in, no matter where in the
world they happen to be.
In the BOOT model, the private and public sectors are able to both focus on what they do best.
That allows projects to be completed faster, often with reduce delays, because the public sector
provides structure and cost containment, while the private sector provides efficiencies and
resource access.
If there is one constant in the world today, it is that the word of a government official or program
is not always accurate. By bringing in a private enterprise to develop the project, more trust can
be brought into the process to avoid any unrealistic expectations or promises from being released
to the community.
Although the purpose of a BOOT structure is to limit the cost liabilities to the public sector, this
type of transaction cost can be higher than other contract opportunities. The incentive to pursue
the build-own-operate-transfer is for the public sector to limit their overall liability with the
project. By having the private sector take all the initial risks of ownership and operations, the
public sector can avoid most of the risks of a financial loss from the partnership.
The BOOT model is only suitable for large-scale infrastructure projects within a community. It is
not a suitable PPP for most of the smaller projects that communities tend to need development
help with each year. Think of it like this: if your community has a skyscraper it needs built in the
public interest, a BOOT contract would be an option. If what you need is a strip mall, it would
not generally be a suitable choice.
The private sector will not get started on the infrastructure project until there are funds in place
to begin the planning phase of the project. If no funds can be raised to complete the project, then
it won’t get done. For that reason, the public sector often looks for private entities which already
have a funding mechanism in place to complete the proposed project. If no such entities are
interested in the project, then it may stall out before it gets a chance to begin.
For the BOOT model to be successful from a private standpoint, there must be large revenues
generated during the operational phase of the contract. That is why BOOT contracts have such a
lengthy transfer stipulation. By stretching out the relationship to four decades or more, the
private organization has the best possible chance of making their investment back, plus some
profits to enjoy, before losing control of what they built.
In this PPP relationship, the public sector must stay involved with the supervision of the project
during the ownership phase to ensure it remains successful. One of the most common reasons for
the BOOT structure failure is a lack of communication between the private and public entities
involved. When the program is being managed poorly on the private side, the public side must be
able to step in and change things up for the good of everyone involved.
If the public sector has limited expertise in the infrastructure matters being considered, then the
private sector can take advantage of that fact. Both sides must have knowledge of the
complexity, competitiveness, and risks involved to ensure a balanced relationship is possible.
1.
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Project characteristics include: (b) Project has a set objective to achieve within a distinct time, cost and
technical performance. (c) Project is planned, managed and controlled by an assigned team the project
team planted within the owner's organisation to achieve the objectives as per specifications.
SCAMPER. SCAMPER is an idea generation technique that utilizes action verbs as stimuli. ...
Brainstorming. ...
Mindmapping. ...
Synectics. ...
Storyboarding. ...
Role playing. ...
Attribute listing. ...
Visualization and visual prompts.
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The members of the consultant team that are likely to be required on most projects are:
Architect.
Cost consultant.
Services engineer.
Structural engineer.
The client may wish to allocate the roles of lead designer and lead consultant to one or more of
these consultants to co-ordinate the work of the rest of the team. It might also be appropriate to
appoint a design co-ordinator for the co-ordination and integration of design prepared by
specialist contractors, and an information manager for building information modelling.
During the early stages of a project, the client might appoint independent client advisers to give
them independent professional advice. They might also appoint a project manager to represent
the client and take responsibility for the day-to-day management of the project.
Access consultant.
Acoustic consultant.
Approved inspector (for building regulations approvals).
Archaeologist.
Business management consultant.
Chartered environmentalist.
Client design adviser.
Client's representative.
Civil engineer.
Construction manager.
Consulting engineer.
Contract administrator.
Ecologist.
Employer's agent.
Employer's BIM adviser.
Environmental consultant.
Facilities manager.
Fire engineering consultant.
Furniture, fixtures and equipment (FF&E) consultant.
Health and safety consultant.
Information and communications technology (ICT) consultant.
Interior designer.
Landscape architect.
Local consultants with specialist knowledge of local procedures, culture, and so on.
Lighting designer.
Management contractor.
Masterplanner.
Party wall surveyor.
Planning consultant.
Programme consultant.
Public health consultant.
Rights of light surveyor.
Security consultant.
Site inspector (clerk of works).
Specialist contractor.
Structural waterproofing consultant.
Surveyor.
Transport/traffic engineer.
For consultants to work effectively as a team they should adopt collaborative practices as early in
the project as possible. The requirement to adopt such practices should be included in
appointment documents.
See Collaborative practices and Consultant team start-up meeting for more information.
Given the increasing complexity of many construction projects it is becoming more common that
a consultant appointed on a project, will in turn appoint consultants to undertake some or all of
the work for which they have been engaged.
In this case, the client's consultants may be referred to as prime consultants or first tier
consultants whilst the consultants that they appoint are generally referred to as 'sub-consultants'
or second tier consultants. This is similar to the relationship between clients, contractors and sub-
contractors.
Contents
[hide]
1 Introduction
2 Finding consultants
3 Request for proposals
4 Standard forms
5 Scope of services
6 Building information modelling
7 Related articles on Designing Buildings Wiki
8 External references
Introduction
By appointments, is meant primarily the situation where the client contracts designers (such as
architects, landscape architects, engineers, specialist designers, specialist contractors, etc.),
and/or other consultants (such as cost consultants, independent client advisers, site inspectors,
project managers, client representatives, etc.).
A situation where the client contracts contractors is described as the 'tender process' or
'contracting', rather than 'appointment'.
On publicly-funded projects, the consultant team will often be contracted along with the main
contractor as part of a complete 'integrated supply team', and so appointments may be restricted
to independent client advisers and project managers.
Finding consultants
A range of search engines is available to find consultants:
NB: See the article Consultant Team for a more detailed description of the range of consultants
that might be appointed.
Recommendation, for example, one consultant may recommend others, which can save time for
the client and make it easier to establish collaborative working practices (it is important to set
out requirements for collaborative practices during the appointment procedure to ensure that
the consultant team works effectively together throughout the project).
Research and interview.
Open competition (with or without design).
Selective competition (with or without design).
An existing relationship or framework agreement.
A survey by the RIBA in 2014 (ref: RIBA Journal February 2014) revealed that the most
common methods of appointing architects were:
Direct appointment 50%
Framework agreement with or without further competition for specific projects 10%
Other 4%
Smaller practices tended to be appointed mostly by direct appointment (61%), whereas this was
less common for larger practices (25%).
A strategic brief, describing the client's assumptions, aspirations, budget and programme.
A management structure for the organisation of the project.
Assumptions about the procurement method that will be adopted.
The scope of services required.
Guidance on how fees should be quoted and broken down against stages of the project.
A description of the form of appointment and conditions of engagement (such as step-in rights
and the level of professional indemnity insurance required).
Employer's information requirements (BIM).
Requirements for collateral warranties (for use where a warranty is to be given to a purchaser or
tenant of premises in a commercial and/or industrial development, for example the British
Property Federation (BPF) model forms CoWa/F CoWa/F and CoWa/P&T).
It should request details of resources and curriculum vitaes of staff along with a summary of
their relevant experience on similar projects.
It should request references.
It should seek hourly rates to be applied to any work outside the proposed scope of services.
It should request identification of any sub-consultants the consultant intends to use.
For the appointment of design consultants, it may include a request for design proposals. If so, it
is good practice for the client to offer payment for the work involved in preparing designs. This
benefits the client as it will encourage the consultants to prepare their proposal more carefully,
and will also demonstrate to them that the client is serious about the project and is likely to
treat them fairly.
Some clients may feel they need assistance from an independent client adviser to decide on the
form of appointment, identify a short-list of potential consultants, prepare the request for
proposals, assess submissions and negotiate fees.
Standard forms
Standard forms of appointment for consultants are available, a range of which are listed below:
Other forms of appointment are also available, and in some circumstances appointment may be
made by letter or by a bespoke agreement. The NBS National Construction Contracts and Law
Survey 2012 indicates that approximately 40% of appointments are made using bespoke
agreements.
This may be inadvisable because of the risk that bespoke agreements might not adequately or
fairly make provision for all circumstances, and that they are not supported by a history of case
law. It is also a poor reflection of how inflexible and ineffective the industry perceives many of
the standard forms of agreement to be.
NB: Where appointments include the development of a building information model, (BIM) the
CIC bim protocol (or equivalent) should be appended to the appointments of members of the
design team and to the building contract. Project team members should arrange for it to be
incorporated into subcontracts.
Scope of services
With all forms of appointment, it is important that there is clarity about the scope of services
being provided, particularly where a range of consultants is being appointed. There might
otherwise be uncertainty about which consultant is responsible for which aspects of the project.
In addition, some standard forms of appointment may consider certain tasks to be 'additional
services' not covered by the consultant's fee unless specifically requested by the client.