CIPS L6M5 - STRATEGIC PROGRAMME LEADERSHIP
LO1
Van Weele purchasing development model - Answers - 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 - Answers - 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 - Answers - 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 - Answers - Start up and commissioning of all systems in a
building
Performance Testing - Answers - Demonstrates that the building is suitable for the
requirements of a client
Performance Testing - Answers - 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 - Answers - the client accepts the performance on the basis that
the contractor remains responsible for finding a remedy
Commercial operation - Answers - Upon acceptance, the responsibility and ownership
transfers to the client and the Commercial operation of the facility may commence
EPC contracts - Answers - 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 - Answers - 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 - Answers - 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 - Answers - 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 - Answers - -
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 - Answers - Statement of need and prepare preliminary BC
- Feasibility Study - Answers - Allows the client to prepare a business case for the
proposed option
Project Brief - Answers - the basis for the design
Concept Design - Answers - The initial idea for the facility design is proposed
Appointment of Management contractor or construction manager - Answers - via tender,
framework, referral, interview
Production information - Answers - the info needed for the works contractor to perform
the activities is prepared
tender works contract - Answers - works or trade contracts released for tender
, Mobilisation - Answers - SOS after MC is appointed
Construction - Answers - Contractor /Construction Manager assumes control of site
Occupation and defects liability period - Answers - any defects which become apparent
after handover are rectified
Post Occupancy Evaluation - Answers - review of how successful the programme was
Construction Management - Answers - Focuses on the administration and activities
relating to trade contracts that are placed with the client.
Construction Manager - Answers - The CM is contracted by the client to oversee the
completion of a programme as an agent of the client
management contractor vs construction manager - Answers - In essence, a
management contractor is a Prime contractor while a construction manager is an agent
of the client
Design-Build-Operate and Ownership Contract - Answers - In a DBO, the client still
finances and owns the asset at the the ened of the programme but reduces the nuber of
external parties that it has to deal with. The main aim is to improve the level of
innovation, cost efficency and performance delivery
Design-Build-Operate and Ownership Contract - Answers - The distinguishing feature of
a DBO is that the contractor is responsible for both the design and build activities but
also it's operation and maintenance after completion.
Design-Build-Operate and Ownership Contract - Answers - Is difficult to price as relies
on future unknowns and could result in a less cost-effective solution
Design-Build-Operate and Ownership Contract - Answers - Typically used for medium-
long term projects with durations of 15-20 years
Design-Build-Operate and Ownership Contract - Answers - The contractor is implicitly
encouraged to design and build a facility which is durable, reliable, and efficient to
operate
public-private partnership - Answers - A business venture approach whereby a public
sector authority and a private enterprise join forces and combine resources to deliver
government projects aimed at serving the public good
public-private sector partnership - Answers - Based on the rationale that all projects
must generate VFM for the public sector
LO1
Van Weele purchasing development model - Answers - 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 - Answers - 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 - Answers - 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 - Answers - Start up and commissioning of all systems in a
building
Performance Testing - Answers - Demonstrates that the building is suitable for the
requirements of a client
Performance Testing - Answers - 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 - Answers - the client accepts the performance on the basis that
the contractor remains responsible for finding a remedy
Commercial operation - Answers - Upon acceptance, the responsibility and ownership
transfers to the client and the Commercial operation of the facility may commence
EPC contracts - Answers - 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 - Answers - 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 - Answers - 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 - Answers - 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 - Answers - -
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 - Answers - Statement of need and prepare preliminary BC
- Feasibility Study - Answers - Allows the client to prepare a business case for the
proposed option
Project Brief - Answers - the basis for the design
Concept Design - Answers - The initial idea for the facility design is proposed
Appointment of Management contractor or construction manager - Answers - via tender,
framework, referral, interview
Production information - Answers - the info needed for the works contractor to perform
the activities is prepared
tender works contract - Answers - works or trade contracts released for tender
, Mobilisation - Answers - SOS after MC is appointed
Construction - Answers - Contractor /Construction Manager assumes control of site
Occupation and defects liability period - Answers - any defects which become apparent
after handover are rectified
Post Occupancy Evaluation - Answers - review of how successful the programme was
Construction Management - Answers - Focuses on the administration and activities
relating to trade contracts that are placed with the client.
Construction Manager - Answers - The CM is contracted by the client to oversee the
completion of a programme as an agent of the client
management contractor vs construction manager - Answers - In essence, a
management contractor is a Prime contractor while a construction manager is an agent
of the client
Design-Build-Operate and Ownership Contract - Answers - In a DBO, the client still
finances and owns the asset at the the ened of the programme but reduces the nuber of
external parties that it has to deal with. The main aim is to improve the level of
innovation, cost efficency and performance delivery
Design-Build-Operate and Ownership Contract - Answers - The distinguishing feature of
a DBO is that the contractor is responsible for both the design and build activities but
also it's operation and maintenance after completion.
Design-Build-Operate and Ownership Contract - Answers - Is difficult to price as relies
on future unknowns and could result in a less cost-effective solution
Design-Build-Operate and Ownership Contract - Answers - Typically used for medium-
long term projects with durations of 15-20 years
Design-Build-Operate and Ownership Contract - Answers - The contractor is implicitly
encouraged to design and build a facility which is durable, reliable, and efficient to
operate
public-private partnership - Answers - A business venture approach whereby a public
sector authority and a private enterprise join forces and combine resources to deliver
government projects aimed at serving the public good
public-private sector partnership - Answers - Based on the rationale that all projects
must generate VFM for the public sector
