Cips L6m5 - Strategic Programme
Leadership Lo1 Questions And Answers
With Verified Solutions Already Passed
Van Weele purchasing development model - ANSWER✔✔1. Transactional
orientation, serve the factors - supply relationship is reactive, relationship based on
provision of raw materials and components.
2. Commercial orientation, lowest unit price - relationship is based on price
negotiation aimed at achieving lowest prices for the organisation.
3. Co-ordinated purchasing - procurement and supply using uniform policies,
processes and systems. Often bureaucratic and slow to respond to units.
4. Internal integration cross-functional purchasing - relationship becomes more
integrated. Focuses on cross functional problem solving
5. External integration: supply chain-management - Outsourcing strategies
developed with supply chain partners.
6. Value chain orientation - Recognises P&S strategy needs to deliver value to the
end customer, strong relationships encouraged with suppliers.
EPC Contract - ANSWER✔✔An EPC Contract is appealing to the client as a
turnkey solution and a risk mitigation tool - the EPC contractor assumes all of the
responsibilities and risk of completing a programme
EPC Contract vs D&B - ANSWER✔✔Close links between EPC and D&B
contracts - the difference is that the EPC contract requires the contractor the design
and construct a building to a specification where it is capable of producing a
certain level of output.
Mechanical completion - ANSWER✔✔Start up and commissioning of all systems
in a building
Performance Testing - ANSWER✔✔Demonstrates that the building is suitable for
the requirements of a client
Performance Testing - ANSWER✔✔Is important in terms of the programme as it
allow the contractor to avoid LDs or claim bonuses if the programme is completed
early
,provisional acceptance - ANSWER✔✔the client accepts the performance on the
basis that the contractor remains responsible for finding a remedy
Commercial operation - ANSWER✔✔Upon acceptance, the responsibility and
ownership transfers to the client and the Commercial operation of the facility may
commence
EPC contracts - ANSWER✔✔Are:
- Fixed price contracts
- Have a fixed completion date
- Limited contractor claims as all risk is passed to the contractor
- Limits of liability - EPC contractors seek cap
EPC contracts - ANSWER✔✔The biggest risks that the client bares on an EPC
contract is ensuring that the spec is correct, and communicating what is required to
teh contractor
Management Contractor Warranties - ANSWER✔✔Although clients only deal
with one contractor under mgmt. contracting, it may request warranties from the
individual works contractors so that direct claims can be made in the event that
mgmt. contactor becomes insolvent
Statement of need - ANSWER✔✔After a review of the statement of need, it may
be decided that a new progrmme is not needed
Workflow plan for: Management contracting and construction management -
ANSWER✔✔- Business Justification = Statement of need and prepare preliminary
BC
- Feasibility Study = Allows the client to prepare a business case for the proposed
option
- Project Brief = the basis for the design
- Concept Design = the initial idea for the facility design is proposed
- Appointment of Management contractor or construction manager = tender,
framework, referral, interview
- Production information = the info needed for the works contractor to perform the
activities is prepared
- tender works contract = works or trade contracts released for tender
- Mobilisation = SOS after MC is appointed
, - Construction = Contractor /CM assumes control of site
- Occupation and defects liability period = any defects which become apparent
after handover are rectified
- Post occupancy evaluation = review of how successful the programme was
- Business Justification - ANSWER✔✔Statement of need and prepare preliminary
BC
- Feasibility Study - ANSWER✔✔Allows the client to prepare a business case for
the proposed option
Project Brief - ANSWER✔✔the basis for the design
Concept Design - ANSWER✔✔The initial idea for the facility design is proposed
Appointment of Management contractor or construction manager -
ANSWER✔✔via tender, framework, referral, interview
Production information - ANSWER✔✔the info needed for the works contractor to
perform the activities is prepared
tender works contract - ANSWER✔✔works or trade contracts released for tender
Mobilisation - ANSWER✔✔SOS after MC is appointed
Construction - ANSWER✔✔Contractor /Construction Manager assumes control of
site
Occupation and defects liability period - ANSWER✔✔any defects which become
apparent after handover are rectified
Post Occupancy Evaluation - ANSWER✔✔review of how successful the
programme was
Construction Management - ANSWER✔✔Focuses on the administration and
activities relating to trade contracts that are placed with the client.
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