2. Question 1 (a)
The tender price sets out the way in which the design team and client wish to review the breakdown
of the overall tender price provided by tendering contractors. It is generally prepared by cost
consultants (often quantity surveyors). (Buildings, 2014)
• Enable like for like comparison between tenders and the cost plan.
• Enable the cost consultant to assess where value lies within the different tenders (such as
roofing or water reticulation) allowing assessment of value for money.
• Identify any significant differences in pricing between tenderers to ensure the design has
been correctly interpreted.
• Identify areas of savings that might be negotiated with tenderers while still in competition.
• Form the financial basis of the tender report.
Question 1 (b)
Prime Cost Sum reflects the material allowance being made in the rate for a specific item. A quoted
rate normally consists of Material, Labour, Plant and mark-up (profit + overheads). By using the PC
sum reference the builder identifies what material sum he has allowed for in his rate. This is
normally done when the specification of the item has not yet been clarified (for example finishes,
tiles, taps, light fittings, etc.). The builder would allow a reasonably accepted average cost for that
item which is generally based on the builders past experience.
Provisional Sums on the other hand are estimated allowances for work that involves both supply of
material, labour and associated work. This normally involves a specialist subcontractor for example;
an allowance for the installation of new Kitchen cupboards. The builder may base his allowance on
an average market rate per metre of identified cupboard space. However, the final price will be
based on an agreed design and finishes as prepared by a specialist. Once agreed the Builder will be
entitled to add his agreed mark-up percentage to the subcontractor quotation.
Reasons for inclusion:
• More changes in scope of works and variations can be accommodated
• It reduces conflicts as in the occasion of undefined provisional sums client is taking
the risk for the works and the contractor may be entitled to an extension of time and
additional payments
• It protects the client from over pricing by the contractor as they are required to provide
receipts and invoices from the sub-contractor engaged
• The quality of work is not compromised as the contractor concentrates on their area of
expertise and works outside their area of expertize are implemented by specialists
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3. Question 1 (c)
The method related charges is defined as a charge entered by the contractor to cover items of work
related to the intended method of executing the work, the costs of which are not proportional to the
quantities.
When the method related charges method is correctly used the following come as a result:
• There are fewer disputes regarding changes
• Payment is more realistic
• The use of method related charges increase the change in scope of works that can be
accommodated
• it provides the contractor with room to be innovative in terms methods of construction as
they have the budget to explore various construction techniques
• it reduces chances of delayed construction as the contractor can get access to equipment
that will fast track and simplify the construction process
Question 1 (d)
Method specification also known as recipe specification describes to the contractor the equipment,
material and procedure that they should use. When using this form of specification a supervising
agency commonly referred to as a consultant is obligated to monitor every aspect of the contractors
field operations and as such takes the responsibility for the outcome. It reduces job delays, contract
claims and escalation of future bid prices by ensuring the job is done right the first time.
Disadvantages are this method tends to stifle contractor innovation. Since a contractor’s only
motivation is instructional compliance, there is virtually no incentive to develop better, more
efficient construction methods. Second, since they are not statistically based and 100 percent
compliance is usually not possible, method specifications usually required “substantial compliance,”
a purposely vague and undefined term that can lead to disputes. (Interactive, 2009)
An end-result specification is one in which the final characteristics of the product are stipulated, and
the contractor is given considerable freedom in achieving those characteristics. In their roughest
form, the client will specify minimum, maximum or a range of values for any given characteristic and
base acceptance on conformance to these specifications; they do not rely on the nebulous
“substantial compliance” because they clearly define acceptable quality. The weakness of the end
result specification include the inability to identify or measure essential performance related
characteristics, the inability to quantify substantial compliance and to determine price adjustment
factors that relate to reduced or enhanced value and the uncertainty as to value to be gained from
the cost implementing statistically based end result specifications. (Smith, 1998)
Question 1 (e)
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4. The Engineer shall be responsible for the enforcement and proper administration of the contract and
shall, with due care and diligence, carry out:
(i) The supervision of construction
(ii) The testing and commission of the works
(iii) The periodic and final account of the works
(iv) The resolution of disputes (first instance). The Engineer shall also be responsible for all
communications to the Contractor except where the contract expressly provides for
instructions to be given by the Employer.
Question 1 (f)
An estimate for construction work can be defined as the process of calculating the quantities and
costs of the various items needed in connection with the work; it is produced by the Estimator in
conjunction with the pre-contract Tendering team. They come up with it from information provided
by the Client to the Architect and Quantity Surveyor and investigations and planning carried out by
the team. The estimate is a net estimated cost of carrying out the work. (Gateway)
A tender is a written bid submitted by a Contractor to a Client in pursuance of the notification given,
to execute certain work at calculated rates with the terms and conditions laid down in the tender
documents.
Question 2 (a)
Writing an accurate job description involves breaking the job down in to its component parts and
defining the key objectives.
The purpose of the job description is to:
• Detail the purpose, tasks and responsibilities of the post
• Enable jobseekers to read about the position before applying for it
• Use as a reference when short listing and interviewing applicants
• Assist with organising and designing the new staff member’s induction and training program
• Use in appraisals as an ongoing tool throughout the employment
The person specification details the necessary skills, qualifications, experience or other attributes
needed to carry out the job.
The purpose of the person specification is to:
• Detail what the person needs to fulfil the requirements of the position by providing a profile
of the skills and knowledge considered essential and desirable.
• It forms the basis for the advertisement i.e. where and how to advertise
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5. • Provide information that enables job seekers to match themselves to the job role before
applying
• Provide a basis for shortlisting applicants
• Provide the interview panel with the selection of criteria by which to assess the best
candidate for the role
• Assist with organising and designing the new staff member’s induction and training program
Question 2 (b)
Negative Motivation
Negative motivation techniques focus on the consequences of underperforming and failing
to meet goals, as opposed to positive motivation, where the focus is on the benefits of
superior performance.
The danger of using negative motivation is the lack of morale that will ensue. Employees will
detest going to work because their day is filled with constant threats of punishment.
Ultimately, they will reach the limit of their ability to handle the constant negative barrage
and either rebel or seek work elsewhere. Using negative reinforcement undoubtedly
shortens the retention rate of your workforce, leaving you constantly searching for
replacements. Employee loyalty will not exist in an environment where superior
performance goes unrewarded and unrecognized while sub-par performance is instead
highlighted as negative reinforcement. (Gambone, 2014)
Frustration Reduction
• Managers can ensure that regular feedback is obtained between themselves and
employees regarding performance. They should let staff members know where they
stand in terms of accomplishing goals. If they have made some wrong turns, explain
when and where they went off track.
• Managers should set up an environment of openness, in which management will
listen to and act upon employees’ ideas and suggestions.
• Managers should ensure that employees have the information, tools, equipment,
supplies, and assistance they need to perform their jobs.
• Managers should give consistent organizational support for training
and development opportunities and encourage employees to use those
opportunities.
• Employee should be given a high level of freedom for how results are achieved
Question 2 (c)
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6. The linear model views communication as a one-way or linear process in which the speaker
speaks and the listener listens. This model does not allow for feedback or comments from
the listener. It is commonly used in the army where are higher ranking officer gives
instructions or orders to a lower ranking officer for him to implement no questions asked.
Interactive model where the receiver or listener provides feedback to the sender or speaker.
The speaker or sender of the message also listens to the feedback given by the receiver or
listener. Both the speaker and the listener take turns to speak and listen to each other.
Feedback is given either verbally or non-verbally, or in both ways.
Question 2 (d)
• Employee Trust
Clear, open communication can create a sense of transparency in your organization, which
builds trust between levels of employees. Where keeping employees in the dark can result
in resentments, tension, and a feeling of low job security, strong communication can help
them feel valued and trusted. Open communication can reduce feelings of uncertainty and
cluelessness about the state of the company, which makes for a more-positive work
environment and staff who feel secure and safe.
• Relationships
Communication is essential to building relationships between staff members and between
levels of employees, both on a professional and social level. An atmosphere of open
communication makes it safe for employees to express their ideas; as a result, you will have
the benefit of your staff's combined experience in coming up with innovative solutions.
Communication prevents employees from feeling isolated, builds teamwork, and creates a
more collegial atmosphere in the office. When relationships are strong, employees are
better able to trust one another and work together more effectively.
• Clarity
In an organization, confusion and ambiguity can create negative feelings and a tense
atmosphere. By making roles and responsibilities clear to everyone on staff, you can give
your employees the information they need to get their jobs done; this is particularly
important when your employees are dispersed or come from different backgrounds.
Communication reduces misunderstandings and cuts the costs associated with mistakes.
• Collaboration
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7. Communication can help your employees collaborate effectively, which will make for a
more-productive team overall. When you have multiple departments who are working on
different facets of the same project, communication can streamline the process and
improve the end result. When your staff talks openly to each other, they can communicate
potential issues, requirements and feedback that can make the result stronger.
Communication can ensure that everyone is on the same page and prevent problems down
the road.
Bibliography
1. Buildings, D. (2014, May 17). Designing Buildings Ltd. Retrieved September 7, 2014, from
Designing Buildings : http://www.designingbuildings.co.uk/wiki/Tender_pricing_document
2. Gambone, G. (2014). Demand Media. Retrieved September 7, 2014, from Small Bussiness:
http://smallbusiness.chron.com/use-negative-motivation-workplace-16692.html
3. Gateway, C. L. (n.d.). Construction Learning Gateway. Retrieved from Estimating &
Measuring Work.
4. Interactive, P. (2009, June 5). Pavement Interactive. Retrieved September 7, 2014, from
Pavement Interactive: http://www.pavementinteractive.org/article/end-result-
specifications/
5. Smith, G. R. (1998). State DOT Management Techniques for Materials and Construction
Acceptance. Arizona: Transportation Research Board.
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