1. CBB512 Page 1
Question 1
a) Discuss the effects of the issuance of the Certificate of Substantial
Completion (ICE)/Practical Completion (FIDIC).
b) What is the purpose of Liquidated Damages (ICE)/ Delay Damages
(FIDIC)
c) Discuss the effects of the issuance of the Defects Correction
Certificate (ICE)/Performance Certificate (FIDIC).
d) Discuss the purpose of including the Forfeiture (surrender) Clause and
Default Certificate clause in the Conditions of Contract.
Question 2
a) Define the “Bill of Quantities” and briefly discuss its objectives (pre-
tender and post tender).
b) What are variations?
c) Discuss the basis of valuation of variations in Civil Engineering.
d) Define “Provisional Sums” and “Prime Cost Items” and discuss the
reason(s) for inserting them in the bill.
e) What is the purpose of the numbers zero (0) and nine (9) in the bill of
quantities Item Numbering Column.
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Question 3
a) Discuss the principal/primary contractual roles of the client and contractor
under the conventional contractual arrangement.
b) Overwhelming literature indicates that the engineer has conflicting roles
under the conventional contractual arrangement.
With an aid of a well annotated diagram discuss this statement and outline
the roles of the engineer during a construction contract.
c) The engineer is represented by his/her representative at site level;
however, the powers of the representative are limited.
i) Discuss why it is important to limit the powers of the engineer’s
representative?
ii) Give any five (5) powers that can not be delegated to the
engineer’s representative
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2. CBB512 Page 2
d) Discuss circumstances that may “frustrate” the execution of a construction
contract.
Question 4
a) Discuss the difference between assurance and insurance.
b) A strong wind caused the collapse of false work (system of temporary
work that facilitates completion of permanent works) at Francistown
thereby damaging fresh concrete beams and columns.
i) Suggest with reasons which party is liable for making good the
damages.
ii) Outline reasons why Insurance Companies may not accept the
above-mentioned risk.
c) Describe the purpose of the following bonds:
i) Retention bond
ii) Performance bond
d) Discuss the contractual obligations of the (i) contractor and (ii) client in
respect to “Care of the Works” during Defects Liability Period of a
construction project.
Question 5
a) Discuss the value of a job description and person specification by
stating clearly their function to the employer and prospective
employee.
b) Discuss the relevance and importance of the subject of Human
Resource Management to an engineer.
c)
i) What is Motivation
ii) Why are managers concerned with motivation?
iii) Use the basic motivational model to discuss the underlying
concept of motivation.
End of Examination Questions
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3. CBB512 Page 3
Question 1
a)
Effects of Issuance of the Certificate of Substantial Completion
 The contractor is released fromhis contractual obligations when is accepted
by the Engineer on behalf of the employer by issuing Certificate of
Substantial Completion
 Signal the start of the Defects Correction Period
 Requires the responsibility of the care of the works to pass from the
contractor to the employer (has to effect immediate insurance)
 Releases the first half of the retention money
b) Liquidated Damages
The contractor’s obligation is to complete within the period of completion; if he fails
to do so, the employer will be entitled to damages for late completion. These
damages are liquidated, which means the employer and contractor have agreed in the
contract a sum of money which will represent the total damage to the employer,
should the contractor complete late.
c) Defects Correction Certificate –
 At the end of the period of Defects Correction, the defects correction
certificate is issued.
 It marks that works have been finally completed to the satisfaction of the
engineer
 It signals the finish of the contract works and thereafter the contractor has
no obligations for further work under the contract
 It heralds the release of the second tranche of the retention monies and also
permits the contractor to submit his Final Account, which has to be
delivered to the Engineer within three months
d) Forfeiture and Default Certificate Clauses
 There has to be security where the employer has paid the contractor ‘on
account’ before completion of work
 Security necessary to guard against liquidation or serious breaches of
contractual obligations
 Security must entail the right of entering the site, taking over the partially
completed works, & finishing them without incurring additional liability in
so doing
 Right of access must be immediate and without the need to prove default or
obtain agreement from any one else.
 The engineer issues the Default Certificate if the contractor is in Default;
the engineer should have issued a warning before issuing the Default
Certificate.
Question 2
a) The bill of quantities is a list of items giving brief identifying descriptions and
estimated quantities of the works that shall be comprised in a contract.
 It is a basic control document governing the cost of the work to the client and
the whole income to the contractor
 It provides information on the best estimate of items and quantities of work to
enable contractors to offer a price to construct that quantity of work
 When a contract has been entered into, it provides a basis for the evaluation of
work actually completed and the progressive payment of the contractorfor the
completed work using re-measured quantities of actually completed work.
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4. CBB512 Page 4
b) Variations are changes in the detailed requirement of work both for methods of
construction or quality of work. For instance, when a new standard has been
developed the engineer may issue a variation order to enhance the quality of works.
c) .
 Where a variation is for similar work carried out under similar conditions
(similar means any factor that has a cost consideration), the bill rates will apply
 Where work is not of similar character or not carried out under similar
conditions, the engineer must fix the rate using bill rates as far as possible.
d) .
 Provisional sums are put into the bill by the consultant to allow for
contingencies that may arise, the extent of which are unforeseen and cannot be
assessed.
 Prime cost. The consultant where particular items of equipment are required and
for which a price has already been negotiated includes the prices. In addition,
the main contractor adds his handling charge (provision of accommodation and
necessary services, labour, and profits).
e) The numbers (0) and (9) are reserved for particular uses; 0 is used where there is no
description required by division in the work classification, and 9 is used to identify a
division description which is not a standard one given in CESMM.
Question 3
a) The employer (general)
– Employer's obligations are restricted to paying sums of money certified by the
Engineer, change of contract scope, appointment and termination of parties
to the contract, agents, and third parties, and approval of bonds and
surities
• Contractor (General)
– The Contractor is an entity whose tenderhas been accepted (he is a second party
to the contract)
– The contractor is responsible for construction of the works and their security
until employer takes over
– Contractors’ general obligations are to construct, complete & maintain works,
supply everything required for works completion including problems with
availability & delivery of materials, and difficulties with nominated
subcontractors
b)
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5. CBB512 Page 5
In conventional Civil Engineering, the consulting engineer is responsible for
design and for construction. The engineer is responsible for supervision of
construction and for equitable supervision of the contract. Therefore he has a
dual role during construction, (i) contract supervision (ii) contract administration
when he has to act fairly between the interests of the parties as a ‘quasi
arbitrator’.
c)
i) The engineer’s representative power are limited so that he does not commit
the client’s budget and/oralter the contractor’s method of construction since
he would not have been involved in the formation of the contract.
ii)
 Valuation of Variations
 Certifying the final account
 Award of extension of time
 Issue of certificate of substantial completion
 Issue of Defects Correction Certificate
 Certification of the Contractor’s default
 Settlement of disputes
d) Frustration is the occurrence of an event that will curtail fulfilment of the contractual
obligations of the parties (e.g. overflowing lake, inclement weather, earthquake,
tremors, etc)
Question 4
a) Insurance is a contract whereby the insurance company shall be make good the
insured’s damages resulting from an anticipated foreseeable risk - an insurer may not
have to pay insurance because the risk may not occur. An Assurance covers an event
that is bound to happen – the only question is when?
b)
i) The client - Some risks are uninsurable e.g. war, nuclear explosion, radiation
and contamination. Therefore these risks are categorised as excepted risks to be
borne by the employer.
ii) Insurance companies can not insure for unforeseeable risks because the
obliterating effects can not be estimated for purposes of determining the
premium.
c)
i) Instead of deducting retention money from each certificate, the employer is
given a bond by the contractor equal to the sumthat would have been retained.
Useful for the contractor’s cash flow, particularly where payments are not in his
own currency and the money would have to be borrowed. [Usually 3% to 5% of
the certificate value]
ii) Performance bond. A guarantee that the contractor will perform all his
obligations under the contract. [It is usually approximately 10% of the contract
sum
d) Effects of Certificate of Substantial Completion signal the start of Defects
Correction Period. The effect is that the responsibility for the care of the works
passes from the contractor to the employer (employer has to effect immediate
insurance). This does not mean that the client absorbs damages due to poor
workmanship or use of sub-standard material. ( which are basically secured by half
retention).
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6. CBB512 Page 6
Question 5
a) .
JOB DESCRIPTION outlines (i) Job Title (ii) Place of Jobholder (iii) Overall Purpose of
the Job (iv) Principal Accountabilities [Key Tasks or Duties] (v) Nature and Scope of the
Job
PESRON SPECIFICATION sets out the (i) Education (ii) qualifications (iii) Training,
Experience, Personal Attributes,& Competencies of prospective jobholders: the person
specification forms the basis for the Advertisement and the whole Selection Process.
b) .
Relevance of Human Resource Management to the Engineer:
i) Effective recruitment and selection at site level
ii) Team building; Group Dynamics, and Team Working; Effecting Appropriate
Leadership Styles
iii) Motivating the Workforce
iv) Training and Development of Personnel
v) Effective Communication Skills
c)
i) Motivation is concerned with why people chose a particular course of action in
preference to others, and why they continue a chosen course of action, often
over a long period, and in the face of difficulties and problems
ii) Organisations are concerned about the performance of its employees. To
maintain and improve the performance of an organisation, attention must be
given to the level of motivation of employees. Contemporary managers are
expected to encourage staff to direct their efforts towards the objectives of the
organisation (this shall take place within the culture of the organisation).
iii)
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