LEADERSHIP LO1 QUESTIONS AND CORRECT
DETAILED ANSWERS (VERIFIED ANSWERS)
||ALREADY GRADED A+||NEWEST VERSION
Quiz: Van Weele purchasing development model
Ans: 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.
Quiz: EPC Contract
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, Ans: 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
Quiz: EPC Contract vs D&B
Ans: 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.
Quiz: Mechanical completion
Ans: Start up and commissioning of all systems in a building
Quiz: Performance Testing
Ans: Demonstrates that the building is suitable for the requirements of a client
Quiz: Performance Testing
Ans: Is important in terms of the programme as it allow the contractor to avoid
LDs or claim bonuses if the programme is completed early
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, Quiz: provisional acceptance
Ans: the client accepts the performance on the basis that the contractor
remains responsible for finding a remedy
Quiz: Commercial operation
Ans: Upon acceptance, the responsibility and ownership transfers to the client
and the Commercial operation of the facility may commence
Quiz: EPC contracts
Ans: 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
Quiz: EPC contracts
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, Ans: 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
Quiz: Management Contractor Warranties
Ans: 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
Quiz: Statement of need
Ans: After a review of the statement of need, it may be decided that a new
progrmme is not needed
Quiz: Workflow plan for: Management contracting and construction
management
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