.Question 1 [25 marks]Fifty-six days before a regional sporting and games festival flooding occurs at Riley Hotel & Leisure (RHL) resulting in damage to premises, facilities, fittings and equipment, loss of stock, and major disruption of business activities.The festival is an annual event attracting several hundreds of people and remains the busiest time of the year for RHL. It is estimated that the management of RHL could lose a profit of about £25,800 per day if accommodation, leisure facilities, services, etc. are not available to cater for demand. The management of RHL is appointing a contractor
to repair the flood damage and to restore the business activities. The estimated contract value is £1.25 million.
a. As a consultant surveyor, discuss your procurement advice to the management of RHL. [10 marks] [200 words]
b. Management of RHL invites tenders from consultants for a consultancy assignment to provide pre-contract cost and procurement advisory services for the above scenario. A two-envelope method is used for tender submission; each tenderer submits a technical proposal and a fee proposal. The tenders are evaluated by RHL’s tender committee using the assessment criteria in Table 1. Fee proposals of the tenderers are reported in Table 2. The pre-determined weight for the technical proposal is 60% and the pre-determined weight for the fee proposal is 40%
.Table 1 Technical proposal marking scheme Assessment Criteria Weight of criterion (%)Tenderer / Assessed marks (%)Erney Cost Consulting Jeremy & Partners Riley LLPNhyira International North-East Surveyors1. Background and expertise of consultancy firm156 12 11 4 12 2. Experience and competence in delivering similar consultancy assignments 2517 23 23 20 21 3. Reputation of the consultancy firm108 6 8 7 5 4. Quality of proposed technical solution to address tasks expressed in the Assignment Brief30 20 22 24 10 22 5. Organization of consultant’s team with qualifications, expertise and experience of each consultant20 15 15 15 15 16 Total: 100
Table 2 Tenderer’ fee proposals Tenderer Fee proposal (£)Erney Cost Consulting650,000Jeremy & Partners730,000Riley LLP554,000Nhyira International478,000North-East Surveyors490,000b-1) Using the information above, calculate the following:i. Technical assessment scores of the tenders. State the relevant formula. [6 marks] ii. Fee assessment scores of the tenders. State the relevant formula. [6 marks] b-2) Based on i) and ii), recommend the best tender to the client. Justify your recommendation. [3 marks] [max: 50 words]
Question 2 [25 marks]a. Using the data provided below, determine the amount due to be paid to the contractor for interim payment NR. X for the construction works carried out in February 2021 on a Lecture Theater project funded by Northumbria University, Newcastle.Preliminaries- Fixed charges: £555,000- Time-related charges: 4 months at £86,250 each Facilitating works- Demolition works: £710,000- Temporary diversion works: £460,000 Main construction works – Substructures: £895,150- Superstructure: £1,950,400- Internal finishes: £725,300- Fitting and furnishing: £615,800- Services installation: £738,400- External works: £ 174,950
Other data:Variations to date: £400,000Materials on Site:£275,000Previous Payments: £2,900,000Rectification period: 6 months Retention: 5% Standard form of contract: JCT/Q 2016 NB: Show all calculations. All assumptions must be clearly stated (if any).[15 marks] b. A project surveyor is tasked with valuing the completed work package as part of above project. Discuss how appropriate the use of the S-curve method would be as the basis for the interim valuation exercise. [10 marks] [max: 200 words]
Question 3 [50 marks] You are working for a main contractor, JA General Construction Ltd, as a project surveyor and have been tasked with producing a cash flow forecast for a high-quality residential development scheme. The project is to be completed over eight months (May–December 2021) and has a contract sum of £3,300,000 and a 6-month defects liability period. The contractor’s profit and overheads on the project is estimated at 7%. Interim payments will be made based on work done, at the end of each calendar month. A retention of 3% applies to the contract. According to the contractor’s work programmed, the cumulative net valuation amounts are shown in Table 3. The contract terms provide for a 4-week billing period.
Table 3 Cumulative net valuation (forecast)Valuation Nr. Cumulative net valuation (£) Month 198,940Month 2279,360Month 3431,650Month 4824,500Month 51,164,000Month 61,843,000Month 72,366,800Month 82,764,500Month 93,089,450Month 103,250,500
a) Using information provided, calculate the following:
i. Cumulative gross valuations based on work done
ii. Monthly payments received by contractor
iii. Cumulative costs incurred
iv. Monthly costs incurred
v. Monthly retention amounts[15 marks]
b) Using a graph sheet or MS Excel spreadsheet, plot the following S-curves:
i. Value-time curve
ii. Cost-time curve
iii. A 4-week payment delay in meeting cost
[12 marks]c) Graphically represent the following:
i. Saw-tooth red
ii. Saw-tooth black[13 marks]
d) Discuss two important reasons why cash flow forecasts are not always a precise forecast of reality in a construction project situation.[10 marks] [200 words]