Homework answers / question archive / 1) Prepare a flow chart identifying a discrepant condition, such as an incorrect soap dispenser in ten hotel room showers identified by NWR’s owner’s representative during a walkthrough, the direction to repair the problem from the architect, ordering and delivering materials, performing the work, preparing a COP and CO, and finally paying the GC and the material supplier

1) Prepare a flow chart identifying a discrepant condition, such as an incorrect soap dispenser in ten hotel room showers identified by NWR’s owner’s representative during a walkthrough, the direction to repair the problem from the architect, ordering and delivering materials, performing the work, preparing a COP and CO, and finally paying the GC and the material supplier

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1) Prepare a flow chart identifying a discrepant condition, such as an incorrect soap dispenser in ten hotel room showers identified by NWR’s owner’s representative during a walkthrough, the direction to repair the problem from the architect, ordering and delivering materials, performing the work, preparing a COP and CO, and finally paying the GC and the material supplier.

2) A)Not discussed in this chapter but why might a project owner or architect tie the monthly pay request process to the as-built drawing process? You may want to look ahead to Chapter 16 for this question. B)What is the difference between a COP and a formal contract change order and a claim? C)Which method of dispute resolution will the parties follow? D)How much backup should a PM or estimator or cost engineer include with a COP? E)What is the preferred timing of incorporating formal contract change orders and why then?

3) Assume this is a $10 million construction project and $8 million, including fees and other markups, worth of work is in place and has been invoiced. How much retention will have been deducted by the client based upon the following three scenarios?   (a) 10% retention rate   (b) 5% retention rate  (c) 10% retention rate until the project is 50% complete and no further retention held  thereafter.

4) A)We do not advocate this, but for comparison, prepare a lump sum SOV for the Olympic Hotel example except aggressively front-load the general conditions and fee and other markups. How would this change the cash flow curve presented previously in Chapter 13? B)What are some materials or fabrications that a GC may be willing to pay a supplier for early if the materials were either stored on the jobsite or in the supplier’s yard and why those materials?

5) Prepare a pay request for the month ending March 2020 (or any other chosen month) for the Olympic Hotel, including all supporting documentation and lien releases. Assume the project is on schedule. Refer back to the cost loaded schedule from Chapter 13. Make whatever assumptions are necessary.

6) A)What type of data is required to be submitted to support a payment request on a lump sum contract? B)Why are interim lien releases requested by the GC from subcontractors? C)Why are subcontractor lien releases requested by the client from the GC? D)Why might the GC’s PM want to pick up the owner’s check in person? E)What would happen to a subcontractor’s lien release if the GC unilaterally revised their invoice and processed a check? F)What would happen if Northwest Resorts discovered Evergreen Construction Company was overbilled by $2 million during a mid-project audit of our open-book case study project?

7) Draw a cash flow chart for a fourth-tier supplier such as the mechanical subcontractor’s ductwork insulation subcontractor’s material supplier. You may need to draw a quick organization chart. Assume the ductwork insulation is installed on May 1. Assume standard contracts and pay periods and processes and predict a) when is the earliest the supplier might be paid, and  b) when is the latest the supplier might be paid?

8) A)What would happen to a PM who a) operated in red for the first time on his or her construction project, or b) repeatedly operated in the red on all of his or her projects? B)What would happen to a GC’s cash flow if it had been scheduled to receive its invoice from the client on the 30th of month two but did not receive it until the 30th of month three? What would happen to subcontractors of subcontractors if all were subsequently paid 30 days after receipt of payment?

9) What would happen to a PM who was $1 million overbilled on a) a lump sum project, and/ or b) a negotiated guaranteed maximum price project with open-book accounting and was discovered by the client’s auditor during a monthly audit? You may want to peek ahead at the chapters on pay requests and audits for this question.

10) How would the cash flow curve presented for Evergreen Construction Company change if:   (a) The project start date was delayed for one month,  (b)  All of the site improvements were re-scheduled to be accomplished during early shell    construction rather than near the completion of the project,   (c) The swimming pool design was finalized and will cost $350,000 which is change ordered   into the contract and will be installed during the last month of the schedule, or   (d) Retention will only be held on Evergreen’s subcontractors?