Construction Economics and Management

UNIT 4

CONTRACTING

4.1Awarding Contracts

1.List the kinds of stakeholders and specialists involved in the execution of a construction project. What are their functions and responsibilities?

E.g.: A project manager organizes the project execution process.

2. Match the nouns with their Russian equivalents.

3. Match the words to build up word collocations.

4. Study the key participants of a project and answer the questions.

There are various players in the construction process that play distinct roles. The key participants are the owner (acting as a client, customer) and the contractor.

1)What are the two main stakeholders in a construction project?

2)Who or what can be the owner of a construction project?

3)What is the owner’s role in maintaining a project?

4)What is the general responsibility of the contractor?

5)Does the general contractor perform all the works on its own? What is its function in project implementation process?

5.If you were the owner of a project, how would you select the general contractor? What would you consider? Put these issues in the order of importance (1 to 5).

timing (time needed for the completion of the project) experience of the contractor

environmental impact total price of the project

amount and qualifications of subcontractors

6. Normally, contracts are awarded on the basis of bidding, or tenders. Read the abstract about construction bidding and complete the sentences.

The construction bid process is the process in which a general contractor is selected to work on a construction project. In some cases, the only thing that matters in the construction bid process is presenting the lowest price to the owner; in other cases, the contractor's qualifications are as important, if not more important, than having the lowest currency amount.

A construction bid proposal (tender) is the basis on which many construction companies are hired to serve as the general contractor on a project. Without a tender there would be no way to establish the overall cost of a project.

(Adapted from: http://construction.about.com/od/Bidding-Process/a/How-To-Bid-A-Commercial-Construction-Projects.htm)

1)The purpose of bidding is to ________________.

2)The two main things that determine the selection of a contractor are

______________.

3)A tender is a construction bid proposal which is aimed to ______________.

7.True or false?

1)There should be several key participants in any construction project, like the owner, the client, the contractor, the customer, and the project manager.

2)The owner of a construction project can be both an individual and a company.

3)The owner usually develops project specifications on its own.

4)The project financing and cost control should be guaranteed by the owner.

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5)The contractor uses the specifications provided by the owner as a basis of construction works.

6)A general contractor can engage other specialists or companies to do various parts of construction works.

7)The main function of the general contractor is onsite supervision.

8)In construction bidding process the contractor’s qualifications are much less important than the price.

8.Find the synonyms of these words in the text.

9. Complete these sentences with the correct form of the verbs in the box.

award engage evaluate propose secure serve

1)The feasibility of the project is usually ___________ by the owner.

2)The contract was ____________ to the company that offered the lowest price.

3)Our company ___________ as the general contractor of this project.

4)The task of the owner is to ___________ financing of the project.

5)Several architects were ___________ to design the project specifications.

6)Our company ____________ the most qualified bid at the tender.

10.Imagine that you are the owner of a construction project. You wish to construct an underground car park. Look at the proposals submitted by three potential contractors. Which would you select and why?

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4.2Types of Contracts in Construction

1.What is the role of the contract in the construction process? What issues should be included into the contract?

2.Match the nouns on the left and their definitions on the right.

3. Study the major types of construction contracts and match them with the descriptions below.

(Adapted from: E. Frendo. English for Construction. Course Book 2. Pearson Education Limited, 2012)

4. Compare the three types of contracts from the viewpoint of a client and a contractor. What are the advantages and disadvantages?

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5. Read the text and study the peculiarities of an EPC/Turnkey Contract.

EPC stands for Engineering, Procurement, Construction and is a prominent form of contracting agreement in the construction industry. The engineering and construction contractor will carry out the detailed engineering design of the project, procure all the equipment and materials, and then construct to deliver a functioning facility to their clients. Companies that implement EPC Projects are commonly referred to as EPC Contractors.

The EPC phase of the project is also known as the Execution phase which normally follows what is known as a FEED or Front End Engineering Design phase. The FEED is a preliminary engineering design used as the basis for the EPC phase.

Normally the EPC Contractor has to execute the project within an agreed time and budget, commonly known as a Lump Sum Turn Key (LSTK) Contract. An EPC LSTK Contract places the risk for schedule and budget on the EPC Contractor.

The Project Owner will normally have a presence in the EPC Contractors offices during the execution of the EPC Contract. The Owner places what can be termed a Project Management Team (PMT) to overlook the EPC Contractor. The client PMT may require specialist help and engage Project Management Consultants (PMC’s) to assist. The PMT/PMC will ensure the EPC Contractor is carrying out the works in accordance with the agreed scope of works and in accordance with the Contract. It is quite common for the Engineering and Construction Contractor which worked on the FEED to be offered a Project Management Consultancy Contract.

(Adapted from: http://www.epcengineer.com/definition/132/epc-engineering-procurement-construction)

6. Decipher the following abbreviations and explain their meanings.

EPC ________________________________________________

FEED ________________________________________________

LSTK ________________________________________________

PMT ________________________________________________

PMC ________________________________________________

7.Complete the sentences.

1)The task of an EPC contractor is to ___________________.

2)The EPC phase of the project usually follows __________________.

3)Under an EPC LSTK the contractor takes risks for_________________.

4)The PMT has to ________________.

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8.Choose the correct alternative.

1)According to an EPC contract the materials and equipment are usually

9. Match the verbs on the left with the nouns on the right to make word collocations.

10.Complete the sentences using the word collocations from exercise 9. Put the verbs in the correct form.

1)One of the main peculiarities of a lump sum contract is the fact that it is the contractor who __________________ for the budget and schedule.

2)Under a cost plus contract the client has to ______________ for the project.

3)The client can ________________ to assist the Project Management Team.

4)There is an incentive for a cost plus contractor to _____________ as soon as possible.

5)The PMT has to ensure that the contractor is _______________ within the budget and time limits.

6)The client usually provides some extra payment for the contractor to

______________.

11.Imagine that you are going to realize some construction project. How many and what kind of contracts will you have to award in order to have your project executed? Which stages of the project life cycle will be covered with these contracts? Consult Figure 2 on page 10.

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UNIT 5

PRESENTATIONS

5.1 Presenting a Company

1.Discuss the questions.

1)How often do you give presentations in your job/studies?

2)Who do you normally present to?

3)Have you ever given a presentation in English? Was it a success?

4)How do you feel about presenting in a foreign language?

5)In your opinion, what kind of presentation is good/bad?

6)What is a slideshow? In what way is it related to the presentation?

2.Read the text and make a list of tips for a good presentation.

When you make a presentation, the first stage is to plan it. You should start by thinking about your audience – who they are, what they know about the subject and what they expect from you. Will they be interested, enthusiastic, cooperative or perhaps critical?

If possible, try to visit the room where you are going to give the talk. Check the equipment and make sure you can be heard in the back of the room if you don’t want to use a microphone.

You are now ready to prepare what you are going to say. Stage one is the opening. A good opening is essential as you will be nervous and you need to grab the attention of the audience. You start by introducing yourself and then you use a technique to get the audience’s interest. You can do this in various ways. You can: ask a question; use a famous quotation; use a striking visual image; appeal directly to the audience’s interests or needs.

Once you have the audience’s attention, you should tell them the structure of your presentation. You give them the map of the talk, so they know what you will cover.

After the opening and a brief introduction of your subject, you come to the main body of your presentation. Then you have a conclusion during which you summarize the key points, and give your final opinion and recommendations. After that it’s the question and answer session.

(Adapted from: Cotton, D., Falvey, D., Kent, S. Market Leader. Intermediate Business. English Course Book. Pearson ELT, 2009)

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6. Plan your presentation of the construction company. What should you include in it? Consult the following table and continue the list if necessary.

7. Look at some slides presenting Yapi Merkezi Holding. What information about the company can you get from these slides? Tell about Yapi Merkezi using the expressions from exercise 6.

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