7/28/2019 Real Ccheatheat Sheet

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ngineering News Record (ENR) : Heavy & highway, nonresidential building

building+ind.const.), multiunit housing. Res. Build. Cons. Single-family homes, multi-unit

ownhouses, apartments, condo. Non-res. Build. Cons. Sch. U, hosp, warehouses,

heaters. Ind. Cons. Petroleum refineries, steel mills, heavy manufacturing plants. Heavy

ng. Cons. dams, tunnels, bridges, highways, pipelines. 10 Major Infra. Pro. In HK->Local

ailway & Highway (South Island MTR Line, Sha Tin to Central Rail Link, Tuen Mun

Western Bypass), Cross-Border Development (Guangzhou-Shenzhen-HK Express Rail Link,

K-Zhuhai-Macau Bridge, Chek Lap Kok to Shenzhen Airport Rail Link, HK-Shenzhen Joint

evelopment of Lok Ma Chau), Regional Development (West Kowloon Cultural District,

ai Tak Development, New Te rritories Northwest Development).Manufacturing-

automobile, TV,phones; same products are manufactured multiple times; designed &

roduced without designated buyers; manufacturers make own decisions for design &

roduction, prior to sale; advertising to attract buyers; at risk of failing to recover $ as

roducts remain unsold (x market)/ sold at $ lower than cost;$=direct design/man.

osts(labor, materials)+indirect cost(marketing)+Gen.& Administrative+profit; man. Risk:

market demand & $, buyers risk: product operates as advertised? Sales networks: to

di(mail, web), to wholesalers(bulk) & to retailers.; single item is made n times; mass

roduction, batch production. Payment is made when unit is purchased. Construction-

one of a kind nature with unique products; purchase process begins with a client who

eeds a facility; client (buyer) is known be4 const. starts, designers defines scope of

ork& details of pro., contractor builds product, start when agreement is reached among

articipants; high risk of failure to complete pro. In functional/timely manner; large no. of

akeholders & issues that must be dealt with prior to pro. Completion lead to complex

vel of risk for participants; commitment to purchase facility starts after preliminary

esign. Cons. Tech.->methods & tech. to place phy. Materials & elements of cons. at job

te; evaluation & selection of methods & techn. Cons. management->Resources

M1T:Manpower, machines, materials, money, time);technical: design of formwork,

apacities of excavators;qualitative:motivation of workers, form of contracts, safety on

b site, legal liability. CM optimally apply resources to realize a constructed facility of

cceptable quality, on time & within budget. (quality, time, $); Key Roles: owner-client,

esigner/design professional-consultant, constructor/builder-Contractor; subcontractors,

material vendors, regulatory bodies, fabricators, special interest groups

ro development cycle: need established>conceptual design> approval of conceptual

esign>preliminary & final design>bid package complete>decision to release for bid>

dvertise notice to bidders>bid period & receipts of proposals>select contractor>notice

o proceed>construction period>inspection & acceptance of pro. Cons. Pro.

evelopment(Owners view)->(Need for facility>initial feasibility & cost

rojections>decision to proceed with conceptual design, scope of work, approximate

stimate of cost>decision to proceed with final design doc. that define pro. for

ons.>advertising pro.& request for proposals>>constructor selection & notice to

onstructor to proceed with work, based on proposal (formation of a

ontract)>construction>facility testing(as designed & planned)>operation & maintenance

f facility over specified service life>facility is disposed/maintained for life). Private

ommercial entities: Pro. Profitability $->economic basis based on market studies

rojecting demand for facility; considerations: facility size, site location, availability of

bor & supporting resources(energy, water, shipping connections) are investigated ineasibility study report & supporting cost analyses.; structure of feasibility study is

ctated by requirements of financial institutions who lend $ for facility development;

easibility info & supporting $ analyses are submitted to board of directors. Public &

ommunity-service-related pro. (not involve profit )->highways, tunnels, dams,

museums; public entities (government) are continuously reviewing societal needs; need

easibility study & cost analyses. Pro. Feasibility study:Is it possible to build (Land,

echnology, construction, finance, public/social/authoritys responses); worthwhile to

uild? (pro. Justification); project useful? (benefits/reward/revenue) Issue add. in

easibility study: layout/alignment; land; design approach; const. method; materials;

orkmanship; maintenance requirements; consultation; programme;

stimates(cost/cash flow) >>> carry out site investigation, design info, data collection,

orking drawings, estimates, programs, consultation & contract doc. Conceptual pro.

tage(be4 preliminary design): prepare graphical representation of pro & a layout

agram, cost/benefit analysis, cost estimate based on conceptual-level info; present to

otential funding sources (banks & investors). Cost/Benefit analysis: commercial/profit-

ased>comparison of estimated cost against projected revenues to be generated; benefit

or public/non-profit based>tangible (electricity generated) & intangible (flooding

revention & lake for recreation), gov. authorities establish protocols for converting

tangible aspects into eco. Benefits; Evaluate intangible is judgement call & sub. to

eview & criticism. Impact Assessment Studies: by engineer, need detail study, (DIA, SIA,

A, TIA, CTIA), identify potential impacts, give mitigation solutions & implementation &

monitoring. Cost Estimates: based on conc. drawing & other design info(floor space, roof

rea); approved pro may not be built for years>project cost to future const. date, cost

dexes, use Building Works Tender Price Index ( BWTPI)to adjust building cost for

stimating, x reflect level of tender prices for build services work. Preliminary design:

0% completion, extension of concept docs; design team leader coordinates design

rofessionals; architect-floor plan& general layout, build. cladding & interior/exterior

nish; civil/structural engineer: structural frame, subsurface foundation support;

mechanical engineer: heating, ventilating & air conditioning (HVAC), service water

ystems (pumps). Detail design: completion in plans & specifications for bidding; produce

ost estimate at 3% accuracy; owners cost estimate as benchmark to ensure design is

ithin owners financial resources & evaluate bids submitted; owner may reject bids,

ithdraw pro for redesign/consideration if bids>>estimate. Bid package: doc available to

ontractor for him to make decision to bid with notice to bidders; general conditions,

pecial conditions, Technical specs, plans & drawings, proposal form; basis for determine

d $ & influence willingness of bidders to bid a contract. Proposal form: offer, x formal

ontract, indicates contractors intent to enter into contract to complete specified work

t specified $; contains project duration (may in SCC) & start date; award contract based

n this, contractual r/ship forms; award of contract is sent by Notice to Proceed->legally

nding contractual r/ship. Lump sum: the amount of money the client is willing to pay for

ertain construction item; Unit price: the price of every unit of material/construction

rice of a particular item. GCC: standard set of stipulations that applies to all contracts

n how a contract is to be administered & r/ships between parties established. Rights,

rivileges & responsibilities that accrue to primary contractual parties are defined;

ections pertaining to owner, A/E, contractor, subcontractor; different provisions has

wn legal implications; wording establishes a fair & equitable balance of protection of all

arties concerned, shall not be changed without careful consideration. SCC: unique toven pro (pro duration, additional instructions of commencement of work, owner-

rocured materials, mandatory wages of local area, project progress reporting format,

mount of liquidated damages; modifications to basic articles of GC in form of +,

eletions/substitutions; additional articles of a contractual-legal nature that

esirable/necessary for a particular pro; paragraph titles may be similar to those in GC.

ans & drawings: schedule & graph presentation of pro. Tech. Specifications: textual,

ritten description of tech. requirements of pro. Legally precise pic of tech aspects of

ork to be performed; pertain in l arge part to establishment of quality levels, standards

f workmanship, material standards are defined; specific brand name/model numberis

ted as desired for installation; quality referred to accepted practice/quality specification

ACI, ASTM AWS); organization follows sequence of construction. Addenda: change in

etail, +, correction & contract conditions before bids are opened that are intended to

ecome part of bid package (incorporated into it). Change orders: future changes in

cope/details of contract. Once contract is signed, future changes in scope/details of

ontract may form basis for a new financial r/ship between contracting parties. Notice to

idders (NTB): owner advertises pro to capable contractors to achieve lowest bid $; doc

nnouncing to prospective bidders that design doc are available for consideration & that

wner is ready to receive bids; contains project type & size, availability of plans & spec for

eview, place date time of bid opening; methods to know: A/E firms have mailing list

qualified bidders), a builders exchange may operate to serve contracting community &

eep it appraised of status of design & bid activities by operating plans rooms &

ublishing newsletters, nationwide(web-based) services; includes: general type, size,

ans and specifications, time, place date of bid opening

Decision to bid: major financial decision to contractor; needs contractors commitment of

man-hours for development of estimate costs & resource requirements; predictions are

made based on past exp & ability to sense potential trouble spots that affect field costs;

quantity takeoff/surveying: process of determining required material quantities on a job;

most failure-incorrect & unrealistic estimating & bidding practices; cost of time & effort

to develop a total bid price & submit proposal is recover when receives contract;

estimating $ is 0.25% of total bid price. Prequalification: interested contractors need

submit doc that establish firms expertise & capability in accomplishing similar types of

construction;win-win: contractor x prepare bid & x incur cost unless he can qualify;

owner x find himself in position of being under pressure to accept a low bid from an

incompetent firm. Subcontractor & Vendor Quotations/Contracts: solicits specialty areas

(electrical work, interior finish, roofing) & material $ from subcontractors; Quotations via

phone/email; integrate quotations into total bid $; electronically transmitted doc &

signed quotations eliminate misunderstandings & prevent suppliers/subcont from change

quoted $. Construction bonds: role in surety bonds(principal: who may default, obligee:

who may be damaged/loss some advantage,surety: who offset damage/loss of

advantage,beneficiary); guarantee-surety guarantees contractor (principal) will p erform

obligation stated in bond. Bid bond: owner requires a bid security to offset damage due

to contractors default (failure) to start pro as directed; damage = difference bet winners

$ & next low bid; responsibility of surety is indemnified (covered) by principal; if principal

unable to pay, surety cover it; as alternative, owner may accept a cashiers check in

specified amount, if contractor fails to enter contract, he forfeits his check; penal sum

(coverage, liability): gov construction contracts: 20% of bid $, private const agencies:5-

10%. Performance bond: issued to contractor to guarantee owner that contract work wil

be completed & comply with pro spec. Payment bond: protect owner against any

liens/charges against pro that are unpaid due to contractors default. Surety may elect to

negotiate short-term financing for contractor (current liquidity problems); Surety may

grant loans/help contractor obtain additional loans; list of troubleshooters, negotiation

with 2nd

contractor to complete; issed for premium (0.5-3%), increases with penal sum of

bond; The Miller Act, 1935: performance bond 100% of contract amount; payment bond:

50% if contract is %1,000,00/less, 40% if $1,000,000 - $5,000,000;max of $2,500,000 if

contract > $5,000,000; Surety keep informed of contractors performance & with its

changing business & financial status, through contractors reports on costs, payments, &

disputes. Net quick assets (cash on hand, demand deposits, accounts receivable):

contractors assets available to surety in case of default. Bonding capacity: multiple of

net quick assets; new: 5/6, old & reliable, 40/>

Issuance of NTB opens bidding period; Bid opening marks formal end of bidding period;

pro duration measured from notice to proceed; late submission is disqualified; prior to

bid opening, contractors can withdraw bid without penalty. Acceptance period: No

submitted bid may be withdrawn; owner must send written notice of award, if no,

contractors can withdraw/adjust bids after period; bid security protects owner from

failure by contractor to enter into formal construction agreement; contractor is protected

by acceptance period, if not owner could hold bids for un specified period, affecting

financing/approximation for pro; specified in NTB. NTP: completes contractual r/shipfrom legal viewpoint; site is free of encumbrances & contractor can enter site; reference

date for pro start & damage calculation. Letter of Intent: indicate selection & acceptance

of proposal, when encumbrances exist on site & owner x issue NTP to authorize

contractor to enter site; establish owners intent to enter into contracts as soon as

barriers have been removed. Contract Agreement: single doc that binds contractual

parties, & by reference describes work to be performed in legal sense; includes drawings,

general conditions, supplementary conditions, technical spec, addenda; standard forms

of contract agreement are available from various professional organizations. Change

orders: any alteration of contract doc constitutes alteration of contract; modifications to

original doc; legal arrangement; unit price has flexibility; lump sum contract has no

leeway for change/interpretation; procedures to implement are specified in GCC; ~mini

contracts, implementation similar to bid cycle, just x competition; formal communication

of change in scope & supporting technical doc should be sent to contractor; contractor

respond with price quotation (offer), owner can accept offer/attempt to negotiate (make

counteroffer); contractor is justified in increasing $ to recover costs; poorly scoped &

prepared, project turn into change orders-> cause adverse r/ships, increase costs & const

duration. Change conditions: engineering designs are based on site conditions as

perceived by A/E; conditions of structural, mechanical & electrical items above ground

are constant & easily determined; subsurface & topographical portions are difficult to

predict; ability of below grade area to support weight is established by a gird of test piles;

info from subsurface investigation is contractors basis to estimate excavation&

foundation work, to claim a changed condition; some condition (underground river,

depth of rock layer) may not be detected during design; failure to reflect conditions cause

contractor to claim changed conditions for + costs; owner accept change order; decline,

solve through litigation/arbitration. Rework:installed work x comply/meet required spec;

major sources of unplanned cost growth on const pro; Const Ind Institute (CII), reduce

field work, save 10% cost;not caused solely by cons site activities; preventimprove

effectiveness of early project phases, helped by computer-based tools . Suspension,

delay/interruption (SDI): GCC-Contracting officer may order Contractor in writing to SDI

all/any part of work such period of time as he may determine to be appropriate for

convenience of owner; costly to contractor: demobilization-remobilization, inflated labor

& materials;compensation provision: an adjustment shall be made for any increase in

cost of performance of this contract necessarily caused by such unreasonable SDI &

contract modified in writing accordingly; amount of adjustment by owner is contested by

contractor & lead to possible l engthy litigation. Time Extensions: pro duration can be

specified in working/calendar days; procedures set in GCC; claims based on delays caused

by owner, owners agents/acts of Gods design errors, design changes & worksite

hindrance-owner-assignable delays, weather delays-act of God type delay; avg percent of

time extension granted on typical gov pro. Liquidated damage: assessed when

contractor exceeds pro duration(ori duration+time extensions); actual: from NTP to

complete; Date of Substantial Completion of Work/designated portion thereof is Date

certified by owners representative when const is sufficiently complete, in accordance

with Contract Doc, so Owner can occupy/utilize Work/designed portion thereof for use

for which it is intended; Completion date-beneficial occupancy date (BOD); complete on

time? Tied to Utilization/occupancy date; unavailability-lost (rental) revenues, cost of

administration & supervision of contract; amount charged is given is SCC, x arbitrary &

reflector actual damage incurred; Unreasonably high charge, owner x justify, court mayrule charge is penalty charge for overrun->penalty-bonus clausesapply, owner must offer

bonus in equal amount for every day brings pro early. Progress payment: contractor is

reimbursed on periodic basis; at end of month, owners representative & contractor

estimate work performed during month; amount by owner to cover contractors

expenditures & fee for work. Retainage: retain portion of $, incentive to properly

complete pro; if pro is close to completion, receive all bid price, x motivated to do

closing-out tasks; provision: in making progress payments, there shall be retained 10% of

estimated amount until final completion & acceptance of work; owner may decide to

drop retainage requirement if work is progressing satisfactorily at 50% completion point.

Progress reporting: contractors required to submit a schedule of activity & pe riodically

update schedule reflecting actual progress stated in GCC;S-curves/bar charts: based on

indi activities, $ completion og work categoris (concrete, structural, electrical &

mechanical work); basis for progress payments, ensure satisfactory progress by

contractor. Final acceptance: joint inspection on part of owners representative

(pro/resident eng) & contractor, scheduled on mutually acceptable date; notes

deficiencies-punch list-basis for accepting work as final, releasing final payment

(+retainage) to contractor. Value management: cost-what an item is; value: what an item

does; done during design phase & construction phase; functional analysis: producing low-

cost products w/out reducing quality; contractor is more + than designers of field

conditions &const. methods; prepare value engineering change proposal (VECP)-improve

design, reduce cost, maintain/improve functionality; incentive clause allows contractor to

share net savings. Stages of VM: information, analytical, creative, judgment,

development phase; multi-criteria evaluation: cost, aesthetics, performance safety;

weighted system for final analysis.

Contract: agreement btw 2/> parties, a promise for breach of which law

recognizes duty, legally enforceable.R/ships: owner-contractor/design

professional; contractor-subcontractor/surety; (sub)contractor-

workers/suppliers.Pro delivery method: comprehensive process of assigning

contractual responsibilities for designing & constructing a pro; address 2 critical

issue: responsibility to owner for pro design & construction tie to single/multiple

entities? Criteria for award based on lowest cost/other?; type: DBB, DB, CM

contract;competitively bid, negotiated contract.DB contract: turn-key

contract, DB contractor-design builder/ EPC(engineer, procure, construct)

contractor; advantageous from clients view point to have single contractor

provide entire pro as a single contract package; design & construction can be

done concurrently; coordination btw design & construction is enhanced: low life

cycle cost, efficient construction process, constructability/maintainability; large

& complex projects for firms with large design & construction capabilities.DB in

Consortium Format: builders with x in0hse design capability can form

consortium; each member at risk & motivated to work with other to minimize

delays & disputes; give owner a final lump-sum $ at end of preliminary design

phase(30-40% of design); reducing need for contingency as final $ is locked in;

competition-major factor, non-selected consortia incur losses.CM Contract:

owner contracts separately, but simultaneously, with A/E & with a firm whose

primary expertise is construction (CM); CM is hired during design phase, work

directly with A/E & avoid potential design issues before completion of

construction doc.Agency CM(CMa): agent of, advisor to owner; owner has trade

contracts with multiple trade contractors & suppliers, CM receives fee for

service basis, manages, supervises & c oordinates trade contracts on behalf of

owner in best interests of owner; construction coordinator & assists in obtaining

bids & managing construction; links owner, contractor & A/E; provides single

point of coordination to owners; contracts btw design & construction firms are

signed by owner. CM At-Risk: coordinates pro, assumeresponsibility for

construction phase (like construction contractor in DBB); sign all contracts

related to construction phase of work, take direct responsibility for construction

means & methods; design & other pre-construction contracts signed by/remain

with owner; hired during design phase to act as pro coordinator & general

contractor (CM/GC); Construction Management as Constructor (CMc) contract.

Fast track construction: stages of design & construction overlap, shortening

time need ed to complete pro; allowed in DB & CM contracts. Competitively Bid

Contracts: NTB-advertise, invite quote for work, award to lowest $ & responsible

bidder; contractor qualifications reviewed in $-ascending order: technical

competence & experience, current financial position, bonding capacity, current

amount of work under way, past history of calims litigation, defaults on previous

contracts; advan: ensures lowest responsible $, essential for public work to

ensure all bidders are treated equally; disadvan: change orders tend to offset

competitive advan, purposely low bid(0/- profit), plans & spec 100% completed

prior bid advertisement; long pro duration (x parallel).Lump-Sum Contracts:

quotes one price for work & services; direct c osts: labor, materials, machines;

indirect costs: field/front office supervision, equipment, maintenance costs;

profit: 10, 15%, suitable for building construction, x for earthwork; advan:

guarantee $ for work specified, owner w/out worrying abt contingency, reduced

work of field measurement for c ontractor; disadvan: lack flexibility to change

design/modify contract, any deviation to ori plan must handled as change order,

potential litigation, adversary contractual r/ships.Unit-price contracts:

payments based on precise measurement of field quantities, work is broken

down into work items c haracterized by units; larger quantities allow ec onomies

of scale; flexibility for variations in amount of work; price renegotiation if actual

field quantity deviates from guide quantity; advan: flexibility in accommodating

in variation in field quantities, precision of quantity takeoff need not be as exact

as lump-sum contract, reduce no. of change orders, used in heavy & highway

contracts (earthwork, foundation work); disadvan: owner x precise final $,

contingency allowances must bemade.

Management organization: areas & levels of responsibility of members of firm;

communication of members. Legal organization: influencing/dictating governinglaws & taxes; liability distribution if firm fails; ability to raise capital.

Organizational:legal & business structure, functional areas of management,

interaction btw head office & field managers.Pro level: pro breakdown; time,

cost, quality control of pro. Process & operation: construction tech & processes;

at field lvl. Task: identification & assignment of work to field units & work crews.

Proprietorship: simplest form; indi retains ownership & sole control of firm; all

revenue to firm is personal cash revenue to proprietor; all losses/expenses

incurred are personal expenses to proprietor; taxed as indi, x separate taxation

of firm; Before-tax Profit=Revenue/Income-Cost/Expenses; Tax=(Before-tax

Profit-Deductions)x(Tax Rate); credit that firm can obtain & its ability to

generate new capital are limited by personal assets; x limitation of liability, x

suitable for high-risk business; bankruptcy of firm is personal bankruptcy; life

corresponds to owner, die, proprietorship ceases to exist; assets divided among

heirs to proprietors estate. Partnership: 2/> ppl start a firm together; division of

ownership based on monetary/ non-monetary assets, specified in Charter of

Ownership, equal ownership if based on verbal mutual agreement only; to

division risk & pool resources; partners share profits & losses according to their

degree of ownership; x limitation of liability, directly transmitted to partners; 1

partner may carry more liability as liability of each is not limited. Limited

partnership: carry a limited liability, liable only to his investments; x voice in

management of firm; allow general partners to attract capitals resources to firm;more difficult to establish; contribution made by limited partner must be

tangible (cash, shares of stock, x patent, x copyright); partnership is terminated

if 1 partner dies; agreement can be made for continuation; general partners

actively involved in management may decide to pay themselves a salary

(taxable), action of 1partner is binding on all partners; marriageCorporation:

company is a separate legal entity; initial issuance of shares of stock to establish

level of ownership of initial stockholders; protection of stockholders personal

assets; most complicated: lawyer to prepare legal doc, fees to cover actions by

chartering body, printed stock, formal meetings by principals; advan: limitation

of liability-good for businesses with high risks, only assets belonging to it are

subject to claims settlement & losses; get capital by sell stock instead of borrow

$, not subject to repayment/not a liability on balance sheet, corporations

continuity is independent of stockholders, unless firm is bankrupt/ corporate

charter lapses/all stockholders agree to dissolve;disadvan: reduced lvl of control

in management decision making, larger company more decentralized ownership,

difficult to reach agreement of all stockholders; certain restrictions when

operating outside of its place of incorporation-foreign corporation, legal

restrictions; double taxation- same profit that is taxed within corporation is

taxed again when it is distributed to stockholders as a dividend