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Cork Institute of Technology
Bachelor in Engineering in Civil Engineering – Award
(CCIVL_7_Y3)
Spring 2008
Construction Management
(Time: 3 hours)
Instructions: Examiners: Mr. D. Cadogan Answer FIVE questions. Mr. J. Lapthorne All questions carry equal marks. Mr. J. Kindregan
Q1. (a) In regard to a construction contract, explain the meaning of the following terms: provisional sums liquidated damages retention dayworks price variation clause (8 marks)
(b) Explain why the planning and programming process is critical to the successful outcome of a proposed project. (3 marks)
Briefly describe how the critical path and the overall duration of a sequence of activities is to be identified using the network analysis procedure, once a work schedule is formulated for a project, and how these are subsequently monitored through the course of the project. (3 marks)
(c) Identify the critical path for the following sequence of activities, and calculate the project duration, using an activity-on-arrow diagram: (6 marks)
Activity Predecessor Duration (Weeks) A ---- 4 B ---- (^3) C ---- (^5) D A (^4) E B (^6) F C (^7) G D (^3) H E,F (^8) J G,H (^7) K G, H 12 L J (^5) M K 7 N M (^9) P L,N (^10)
Q2. (a) In planning the site layout for a proposed project, access to the site and the layout of the internal site roads are critical to efficient progress of the construction operations – outline the considerations that need to be examined in order to achieve the optimum arrangements. (3 marks)
Adequate office accommodation and welfare facilities are basic requirements on a construction site – explain how the most advantageous layout of such resources can be attained. (3 marks)
(b) Describe the range of tendering or procurement mechanisms available to a client, and indicate the advantages and disadvantages of each type. (7 marks)
(c) When deciding on whether to undertake a proposed project, a client will generally decide going ahead with such a proposal based on a number of practical issues and possible outcomes for the project – outline briefly a summary of such details. (4 marks)
The client must be kept involved and informed while the project feasibility study is being undertaken – explain why this is especially the situation when finalising the concept and design of a proposed project. (3 marks)
Q3. (a) Outline the difference between a contract sum and a tender sum. (1 marks)
(b) Where an investment of capital in a project is proposed, a client will be concerned with the potential return from a financial outlay. In regard to estimating the viability of such a scheme, describe in detail the following terms: (6 marks)
- Payback Period and Discounted Cash Flow (DCF)
- Net Present Value (NPV)
- Internal Rate of Return (IRR)
(c) An investment project is being considered, where a sum of €174,428 is required for initial capital costs. The expected cash flows for the subsequent five years are set out in the table below, the limit for a return on the investment. (13 marks)
- calculate the basic payback period and the discounted payback period
- find the Net Present Value (NPV) of the project over this period, given a discount rate of 7.3% and indicate if it is viable to proceed with the investment
- calculate the Internal Rate of Return (IRR) for this investment over this five year period, using a minimum of three further rates in your calculations
Year Cashflow Discount rate of 7.3% Present Value 0 (€174,428) 1 €43, 2 €28, 3 €51, 4 €63, 5 €55,
Q6. (a) Using a network analysis diagram, identify the critical path for the sequence of activities shown in the following table, and calculate the project duration (show the Earliest Event Times and the Latest Event Times). (5 marks)
Direct Costs for Each Activity
Activity Predecessor (^) DurationNormal MinimumDuration NormalCost (€) Cost (€)Crash
A ---- (^8 6) 72,812 76, B ---- (^5 2) 28,283 32, C ---- (^5 4) 82,734 85, D A (^8 6) 39,473 45, E B 9 7 92,583 95, F C 4 3 36,564 39, G D (^4 4) 43,234 43, H E,F (^5 4) 44,536 46, J G,H (^6 4) 63,892 70,
Calculate the basic cost of the project, given the direct costs for each activity as shown on the table above, and where the total bill for indirect costs for the overall normal duration of the project is €85,514. (2 marks)
Examine reducing the project by up to four weeks, using least-cost scheduling techniques, and advise on the optimum crash duration for the project (maximum reduction for each activity is reflected in the minimum activity durations shown on the table above, while the adjusted cost of each activity when crashed is also given). (7 marks)
Calculate the optimum project duration where the following bonuses are available to the contractor: (3 marks)
(b) Describe sources of short-term and long-term finance available to a construction firm. (3 marks)
Weeks Reduced 1 2 3 4 Weekly Bonus Earned
Q7. (a) Describe development circumstances whereby planning permission must be sought from a local planning authority, and outline the basic procedures and documentation required as part of the process for such an application. (4 marks)
Explain the difference between full planning permission and retention planning permission. (1 marks)
A fire officer will examine a fire certification application for sufficient means of minimising the risk of a fire in a development, as well as a suitable evacuation procedure – describe some of the basic requirements considered when deciding on the outcome of such a submission. (7 marks)
(b) There are four essentials factors which must be in place to make a contract legally binding – describe fully each one. (5 marks)
Describe a practical example of the difference between criminal law and civil law, and outline the implications of each type of law. (3 marks)
