CIVL-4420 Exam 1 (Module 1, 2, and 3)

*How many levels are in a Work Breakdown Structure?

Depends on the project

*What is the 100% rule for a WBS?

A WBS must cover 100% of the work to be performed under the project and all project deliverables.

*What is the difference between a general and a supplementary condition?

General: Standard condition Supplementary: Modified or non-standard condition ("…deleted and changed to…")

ON EXAM: "Is this a general or supplementary condition?"

*What is the difference between prescriptive and performance specifications?

Prescriptive: dictates the exact materials, equipment, and installation methods

Performance: defines the desired end results, operational functions, and compliance criteria without dictating the exact methods or materials used to achieve them

ON EXAM: "Is this a prescriptive or a performance specification?"

*What is wrong with Payback Period?

Doesn't take into account the time value of money.

*When comparing multiple projects, why do you assume inflation equals zero?

All projects experience the same inflation.

*What do the following NPV values mean? NPV = +$10k NPV = 0 NPV = -$10k

NPV = +$10k: Making $10k more than the required rate of return. Project is feasible.

NPV = $0: You're making exactly the required rate of return (k) after the investment

NPV = -$10k: Project isn't acceptable

*Can you use NPV, IRR, and PI to compare projects with different durations?

NO! you can only use NPV, IRR, and PI for projects that have the SAME duration. For projects with different durations you use EAA.

ON EXAM: you will be given projects with different durations and will be asked to compare them. USE EAA!!!

What is a project?

A temporary endeavor undertaken to create a unique product

What are the 5 project characteristics?

1. Defined goals or objective
2. Composed of specific tasks not routinely performed
3. Defined beginning and end
4. Defined deliverables
5. Consumes resources

What is the project life cycle for the owner/client?

Initiation, Planning, Bidding, Execution, Closure

is the Operation and Maintenance part of a project life cycle?

NO!

What is the project life cycle for a contractor and where does it start in relation to the project life cycle for a owner/client?

Initiation, Planning, Execution, Closure.

Starts after Planning and before Bidding in a owner/client project life cycle.

When does the bidding submission and contractor selection happen in both owner and contractor project life cycles?

owner: Bidding

contractor: Planning

What is project management?

The application of knowledge, skills, tools, and techniques to meet specific project objectives.

What is a project manager?

A trained professional who leads the project team through all project phases and within identified project constraints.

What are the responsibilities of a project manager?

Main: successful accomplishment of project objectives

Facilitate communication among stakeholders

Address stakeholders needs

What are the project constarints

Scope Cost Schedule Quality Risk Resources

What are the six dimensions of effective leadership?

1) Ethics and Integrity 2) Problem solving and decision making skills 3) Negotiation and conflict management skills 4) Technical skills 5) Planning and execution skills 6) Team management and interpersonal skills

What is the definition of ethics?

Set of moral principles that govern a persons behavior.

What is the definition of integrity?

Quality of consistently acting in an ethical manner.

Why is ethics important?

It is easier to assist workers with strong ethical principles in learning and developing the other necessary skills then to try to make a unethical worker honest and reliable

What are the 5 stakeholder groups that ethical responsibilities are divided up into?

1) Society 2) Natural and Built Environment 3) Profession 4) Clients and Employees 5) Peers

what are the four set priorities for effective decision making?

By priority: 1) Ethical concerns 2) Legal concerns 3) Project objectives 4) Stakeholders' objectives

What two things are essential for before a negotiation

Knowledge and preparedness

What are the main risks that may trigger a legal team intervention?

Poorly written contracts or ambiguous contract language Contract formation issues Design errors or omissions Unfair or unreasonable contract provisions

What's the most important risk mitigation and control practices that a project manager could use?

Effective document management practices

What are the requirements to form a contract?

Offer Acceptance Meeting of Minds Consideration Legal Basis Competent Parties

What type of people are not permitted to enter into a bidding contract?

Minors and people who are determined to be insane.

What is the most common type of contract in construction?

Express contract

What is a quasi contract?

Exception in court where the situation isn't fair for one party so the court creates a contract.

What are industry standard forms?

Contract document standards that were tested in court.

What documents are included in the Invitation for Bids?

Instruction to bidders General and Supplementary conditions Technical Specifications Plans and drawings

How does a surety bond work?

Owner makes a claim to the insurance company. Insurance company pays owner. Contractor reimburses the insurance company.

What is a bid bond?

Protects owner if winning bid is not honored by contractor

What is a performance bond?

Protects owner if contractors default or have poor performance

What is a payment bond?

Guarantees that all contractors' subcontractors and suppliers will be paid.

What is a type 1 differing site condition?

Conditions materially different from contract documents

What is a type 2 differing site condition?

Conditions materially different from those that an ordinary contractor would expect to encounter

What is the definition of Liquidated Damages?

The sum of money that the aggravated party in a contract should get as total compensation if the other party breaches a specific part of the contract.

Why wouldn't liquidated damages be charged to a contractor?

delays that occur due to unforeseeable causes beyond control.

What does a time extension provision describe?

Describes conditions where the owner is obliged to extend the time that a contractor has to complete a contract.

What does a price adjustment provision describe?

Clauses that allow for changes in contract prices for fluctuations in prices for materials

What is the most common provision used in a multi-year contract?

Price adjustment provision

What is the most common cause for construction disputes?

Errors and omissions in contract documents.

What is a Tort claim?

Breach in performance of duties that the law says people have to owe another regardless of the existence of any type of contract

When someone makes a Tort Claim is there a contract already in place?

NO

What are the types of tort damages?

Personal injury property damages economic loss (only if you have a contractual claim)

What is the economic loss rule for tort claims?

Can only claim economic loss if you have a contractual claim

What are the types of Tort claims and what are some examples?

Intentional: Battery

Negligent: not intentional

What is mediation?

A voluntary process of formal discussion with a neutral third party to resolve disputes Not enforceable by law

What is a Arbitration?

A more formal dispute resolution process where a arbitrator is selected to make the final decision on a dispute. Enforceable by law Private

What is a Litigation?

Disputes are resolved in a public court system. Usually both parties are represented by legal counsel. Most expensive