Download Network Analysis Method - Civil Engineering Construction - Past Exam and more Exams Civil Engineering in PDF only on Docsity!
CORK INSTITUTE OF TECHNOLOGY
INSTITIÚID TEICNEOLAÍOCHTA CHORCAÍ
Semester 1 Examinations 2012/
Module Title: Civil Engineering Construction Management
Module Code: CIVL
School: School of Building and Civil Engineering
Programme Title: Bachelor of Engineering in Civil Engineering
Programme Code: CCIVL_7_Y
External Examiner(s): Mr. B. Byrne Mr. A. Cunningham
Internal Examiner(s): Mr. D. Cadogan
Instructions: Answer four (4) out of five (5) questions
All questions carry equal marks
Duration: 2 hours
Sitting: Winter 2012
Requirements for this examination: Graph paper
Note to Candidates: Please check the Programme Title and the Module Title to ensure that you have received the correct examination paper. If in doubt, please contact an Invigilator.
- (a) (i) Calculate the critical path and the project duration for the sequence of activities shown in the table provided below, using an activity-on-arrow network analysis method. (5 marks)
(ii) Calculate the overall cost of the project, given that the total bill for indirect costs for the overall normal duration of the project is €180,240 and the direct costs for each of the activities are presented in the table. (3 marks)
(iii) You are required to examine the possibility of reducing the project by up to four weeks and advise on the optimum crash duration for the project. (9 marks)
Recheck the critical path diagram each time that the project is reduced by a week, to confirm that the critical path has not changed – take appropriate steps if it has been adjusted.
Direct costs for each activity
Activity Predecessor
Normal Duration
Minimum Duration Normal Cost (€)^ Crash Cost (€) A ---- 6 5 €37,867 €46, B ---- 3 3 €79,679 €79, C ---- 6 4 €71,166 €82, D A 8 5 €68,766 €85, E B 10 8 €50,866 €61, F C 4 3 €41,186 €52, G E 4 4 €49,786 €49, H F 7 4 €77,975 €89, J F 10 7 €59,672 € 73 , 448
(iv) Where the following bonuses are potentially available to the contractor, calculate the optimum project duration: (3 marks)
Weeks Reduced 1 2 3 4 Weekly Bonus Earned
(b) Several methods can be used by clients and contractors where a reasonable valuation of a variation under a contract is to be agreed upon – explain the more common arrangements that are put in place for this. (5 marks)
- (a) Describe the relevance a feasibility study process and how it can be applied to the decision making process relating to choosing final options and procurement methods. (5 marks)
(b) When assessing a planning application, the local authority is expected to formulate the decision on the basis of an examination of a number of factors – discuss. (6 marks)
(c) Given the current economic situation in Ireland, cashflow is a critical factor for any company. Formulating projections of future cashflow is fundamental for survival – explain the process typically used to assess the cashflow situation for a proposed construction project. (4 marks)
(d) In regard to assessing a fire certification application, there are several requirements that must be examined by the fire officer – discuss these, referring to any documentation relevant to the evaluation process. (6 marks)
(e) The financing of large construction projects is regarded as a relatively high risk, particularly given the ongoing difficulties in the industry. Given that potential clients or existing contractors will generally require an element of both long-term and short-term finance for this purpose, outline possible sources available to such organisations. (4 marks)
- (a) A steel fabrication company is due to expand their premises, with a capital cost of €847, required for the initial outlay. Available information in relation to expected cash flows for the initial six years of operation is presented in the table below, as the company has the expectation that a positive return on investment is required by that time in order to progress with the investment. Calculate: basic payback period and discounted payback period for a discount rate of 7.8% Net Present Value (NPV) of the project after six years for a discount rate of 7.8% Profitability Index (PI) of this investment option at the end of the six-year period (indicating whether it is viable to proceed with the investment) Internal Rate of Return (IRR) for this cashflow and period of time (13 marks)
Year Cashflow
1 €185, 2 €217, 3 €164, 4 €183, 5 €179, 6 €197,
(b) In regard to the proper administration of a construction project, discuss the following terms: prime cost sums provisional sums retention liquidated damages dayworks (8 marks)
(c) A least-cost scheduling process may be used by a contractor if the project needs to be rearranged or “crashed” – explain the procedure involved, highlighting the role of direct costs and indirect costs in the process. (4 marks)
