AFSB 152 FINAL REVIEW QUESTIONS
VERIFIED COMPLETE ANSWERS 100
PERCENT CORRECT
◉ New types of sectors of construction
Answer: -overspecialization can limit a contractor to one type of
work, reducing growth opportunities and increasing vulnerability
in down-cycle markets
-Contractors who attempt to diversify often drastically
underestimate the entry cost.
-If the contractor does not anticipate the learning-curve cost and
does not include it as a contingency in the price, that contractor
may end up getting the project and paying tuition for a new
learning experience in the form of an unprofitable job
◉ What are the considerable differences between public and
private work ....?
Answer: Bid-list qualifications, Criteria for selecting winning bids,
Amount of collaboration among the contractor, the owner, and
others, Quality of work expected and delivered, Amount of change
assumed in the bid or separately contracted for during
construction
◉ Key-Personnel Replacement
, Answer: -one of Schleifer's elements of risk
-the efforts of key personnel are generally responsible for a
company's profitability.
-the loss of a profitable top manager can put a construction
company at risk until a suitable replacement is found
◉ what are the three primary functions of a successful
construction firm....?
Answer: 1) estimating and sales (getting the work)
2) Construction operations (doing the work)
3) Administration and accounting (managing the work)
◉ Managerial Immaturity
Answer: -The last element of Schleifer's risks
-managerial maturity refers to the need for a contractor's
managerial abilities to mature as the business does.
-At some point in the growth of every company, the organization
must change. an organization may need more delegation of
authority , more-complex systems and procedures, and more
sophisticated personnel to handle them.
◉ What are the other factors associated with contractor failure....?
Answer: overextension
continuity
subcontractor failure
VERIFIED COMPLETE ANSWERS 100
PERCENT CORRECT
◉ New types of sectors of construction
Answer: -overspecialization can limit a contractor to one type of
work, reducing growth opportunities and increasing vulnerability
in down-cycle markets
-Contractors who attempt to diversify often drastically
underestimate the entry cost.
-If the contractor does not anticipate the learning-curve cost and
does not include it as a contingency in the price, that contractor
may end up getting the project and paying tuition for a new
learning experience in the form of an unprofitable job
◉ What are the considerable differences between public and
private work ....?
Answer: Bid-list qualifications, Criteria for selecting winning bids,
Amount of collaboration among the contractor, the owner, and
others, Quality of work expected and delivered, Amount of change
assumed in the bid or separately contracted for during
construction
◉ Key-Personnel Replacement
, Answer: -one of Schleifer's elements of risk
-the efforts of key personnel are generally responsible for a
company's profitability.
-the loss of a profitable top manager can put a construction
company at risk until a suitable replacement is found
◉ what are the three primary functions of a successful
construction firm....?
Answer: 1) estimating and sales (getting the work)
2) Construction operations (doing the work)
3) Administration and accounting (managing the work)
◉ Managerial Immaturity
Answer: -The last element of Schleifer's risks
-managerial maturity refers to the need for a contractor's
managerial abilities to mature as the business does.
-At some point in the growth of every company, the organization
must change. an organization may need more delegation of
authority , more-complex systems and procedures, and more
sophisticated personnel to handle them.
◉ What are the other factors associated with contractor failure....?
Answer: overextension
continuity
subcontractor failure
