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XYZ is a large construction organization running five different projects. Each project has a specific type of contract and pricing mechanism.
Your task is to match the correct type of contract and pricing mechanism to each project.
Projects and Descriptions
Project 1
Description: Construction of an apartment block, where XYZ is responsible for both design and construction. Upon completion, ownership is transferred to the client.
Pricing Mechanism: Based on past experience of similar projects.
Project 2
Description: Facilities management for a 6-year period after construction. The budget is constantly adjusted due to industry volatility.
Pricing Mechanism: Budget changes continuously over time.
Project 3
Description: XYZ was involved from an early stage, but does not bear the design risk. The budget resets at the start of each new accounting period.
Pricing Mechanism: The budget is refreshed periodically.
Project 4
Description: XYZ is responsible for certain parts of the design and build, while another company handles other aspects. XYZ is paid upon milestone completion.
Pricing Mechanism: Payment is milestone-based.
Project 5
Description: Construction of a new toll bridge which will be operated by XYZ for the first 6 years post-construction. The pricing includes costs of raw materials, labor, and a profit margin.
Pricing Mechanism: Costs plus profit.
Giant Construction Company is working on five large-scale projects. Each project has a specific contract type and pricing mechanism.
Your task is to match the correct contract type and pricing mechanism to each project.
Project Descriptions
Project 1
Description: Giant is collaborating closely with the client to construct a hospital. The client has provided a cost estimate, and any savings will be shared between the parties. This contract is popular in the public sector due to its flexibility.
Project 2
Description: This suite of contracts is known as the "rainbow suite". It is rigid, meaning no changes can be made after signing. The price was fixed at the date of signing.
Project 3
Description: This international project involves the construction of wind turbines. The pricing mechanism calculates costs for each individual turbine.
Project 4
Description: The most popular form of contract in construction, utilizing a Contract Administrator to ensure timely information flow. Since the scope was not clearly defined, Giant is working with the client on a cost-sharing basis plus a small profit margin.
Project 5
Description: The project involves ICT services and software provision. Payments are linked to milestone completion during the project implementation phase.
Green Thumb Ltd, a landscaping company, is considering investing in a new lawn mower costing £10,000. The CFO estimates that the new machinery would increase annual income by approximately £2,000. What is the payback period of the investment?
Which of the following is an advantage to the contractor in an EPC contract arrangement?
EPC contracts provide several benefits to contractors, such as clear project scope, reduced risks, and better project management.
Answer Options:
Doug is a Manager at ABC Ltd. The company is struggling financially and needs to make several changes to its operating procedures to maintain its position in the marketplace. The changes involve letting 10% of staff go and moving 70% of staff to remote online working instead of being office-based. The staff at ABC have, in general, not taken well to the changes, and motivation has decreased. In order to push through with the changes, Doug has stated that staff who volunteer to work online will receive an additional day of annual leave, and if staff refuse to move to the online system, this will have repercussions on their ability to be promoted within the company. Because of this, all remaining staff have now embraced the changes.
Which two types of influence were used in managing this change process?
Which of the following is true about Engineering, Procurement, and Construction (EPC) Contracts? (Select all that apply.)
EPC contracts, commonly referred to as Turnkey Projects, are widely used in construction and infrastructure projects. These contracts require the contractor to design, procure materials, and construct the project to deliver a complete and operational facility to the client.
Answer Options:
Robyn has created a contract for a construction project and has used "The Red Book."
Q: Which professional organization is responsible for creating this contract?
Answer Options:
Scenario (same as Question 16):
In terms of the Cultural Web, which of the following impacts on staff behaviour?
Which elements define an organization's culture? (Select all that apply.)
✔ Beliefs and assumptions
✔ Ways of interacting
✔ The physical environment
✔ Attitudes and customs
Which of the following is NOT a benefit or function of a professional body?
Professional bodies are established organizations that promote industry standards, ethical conduct, and professional development.
Answer Options:
Skipped
Under what circumstances can Specific Performance be used to compensate an innocent party for a contractual breach? Select all that apply.
A positive work culture can lead to which of the following benefits? Select all that apply
A local library is contracting a construction firm to design and build a new extension using a target costing method. Which of the following statements are true about this pricing mechanism? Select all that apply
TESTED 22 Feb 2025
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