Question

Answer the following question:

a) What is the main difference between the CM and CM at risk contracts?

b) Write the general format (equation) for each type of the negotiated contract

c) If free float = 6 and total float = 5, explain the meaning of these 2 numbers?

d) How to prepare the detailed Estimate?

e) During what period a contractor can withdraw the bid without penalty?

f) What is the project triangle? Explain the effect of increase of each one on the others?

g) What are the main steps used to estimate the total project cost?

h) List the four items that need to be identified when planning for WBS?

Answer 1

a. CM - The construction manager is the person who is an agent of the owner. A CM-Agent helps the owner to make critical decisions about a project but does not actually commited to delivering the project under the boundations.
CM at risk Contracts - Construction management “at-risk" is the situation where the construction manager is legally responsible for delivering the project on-time and on-budget and subcontracting for timely payments down the chain.

b. The General format of negosiation include these point -

1. Issue Identification- Identify the issues you want to negotiate like read the suppliers offer, write down down notes about part that are important.
2. Issue Information- Have proper information about each issue that you want to negotiate.

3. Classify the Issues- Classify the sections as Negotiable and Non-Negotiable.
4. Prepare the meeting agenda - Outline your issues and highlight any issues they may have with your contract.
5. Get ready to Negotiate- Understand the most important things before going to the negotiation table.
6.Negotiation Meeting - This is proper meeting in which you will sit down with the supplier and neggotiate on all the topics.
7. Summarise all points- Here you simply divide this into 2 categories: Points that you have agreed and Points that you or the other side would need to get back to each other.

c. Total Float is 5 that means that an activity can be delayed by 5 days from its early start date without delaying the project's finish date.

Free Float is 6 that means a schedule activity can be delayed by 6 days without delaying the early start date of any immediately following schedule activities.

d. The preparations of detailed construction estimate includes estimating the quantities of various items of work and then calculating the cost of each item.
Detailed estimate is prepared in two stages -
i) Details of measurements and calculation of quantities: In this the complete work is divided into various items of work like earthwork,concreting, plastering etc.
The details of measurements are taken from drawings and calculate the quantity of each and every item.
ii) Abstract of Estimated Cost: The cost of each item of work is worked out from the quantities that are calculated above at workable rates and get the total cost of the project.