cee167-fa10-mt1-Ibbs-soln - CE 167 Engineering and Project...

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CE 167: Engineering and Project Management Professor William Ibbs Fall 2010 General Instructions This exam is to be completed in a bluebook – answers not recorded in a bluebook will not be graded. Do not start the exam until directed. You will have until 12:30 to complete the exam. Time checks will be provided throughout the exam. Place the exam sheets on the inside of your bluebook when finished and hand them in back with the bluebook. Put your name on both your blue book and the exam sheet. Show your work step-by-step. Write legibly, and state any necessary assumptions. Draw your cash flow diagrams. State which perspective they are drawn from. Cell Phones or any other communications device must be turned off and completely hidden from view for the entire duration of the test. If you have a question during any portion of this exam, raise your hand & speak privately to the proctor. Questions (Total 100 points): 1. [10 points] Describe following terms in relation to construction project management: A) Privity of Contract Contract can only be enforced against the entities that are party to them. In some cases, a third party beneficiary (such as a bank or loan agency) may become involved in disputes. B) Prime Contract The Prime Contract is that contract awarded to the GC, Consortium, or other entity that has full responsibility for the project. (e.g. General Contractor will hold a prime contract, not the subcontractor). C) Internal Rate of Return The internal rate of return is a method of investment analysis where the interest rate is determined at which the costs of the investment is equivalent to the benefits, or the annualized effective interest rate at which the NPV of all cash flows relevant to an investment add up to zero. It is called “Internal” because it tends to neglect externalities, such as the cost of capital. It is not ideal for comparisons between mutually exclusive options. D) Fast-Tracking Generally, in DB projects, the construction may break ground before the design is complete, allowing the project to be completed in less time.
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21 22 29 30 64 65 F= ? A = $2000 E) Professional Construction Manager Owners may hire a professional construction manager to act as an owner’s representative. This may be the case when the owner lacks the expertise to make informed judgments regarding the relative strengths and weaknesses of different project opportunities 2. [10 points] Your friends have been arguing, and since you are taking CE167 ask for your help. The argument centers on a supposed contract they made over use of a bicycle.
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cee167-fa10-mt1-Ibbs-soln - CE 167 Engineering and Project...

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