1. What is project?

 means for organizations to respond to those requests that cannot be addressed within the
organization's normal operational limits.
 The objective of a project is to attain the objective and close the project.
 Finite duration ( a specific start and end date)
 Has a well defined goal unique and not repetitive
 It is constrained by time cost and quality but also involves change
 It is often cuts across organization and functional lines
 Improvement in policies (pricing, subsidies, cost recovery, cost sharing,….)
2. What is project management?
 The application of knowledge, skills, tools, and techniques to project activities in order to
meet or exceed owners’ needs and expectations from a project.
 Project management balances competing demands throughout the project lifecycle
 It is an integration of project activities through the project cycle to achieve the delivery of
defined product or service with prescribed constraints of time, budgets, scopes and
quality.
 using a set of tools and techniques to manage projects.

3. What does mean competing demands and what are the competing demands in a project?
competing demands: scope, time, cost, quality requirements

4. Construction industry involves interaction of three main phenomena’s what are they?
Among these which one is more directly related for success and Failure of a project? People
• People : People perform the work and determine the success or failure of a project. It includes the
project team and other stakeholders involved in project management.
• Processes : Processes specify deliverables required for the project and identify who will perform the
work and when.
• Tools : People use predefined tools and techniques to manage the project.

5. Why a project management is required in a construction project?

 The need for efficient use of Limited Resources.
 Project management helps to maintain efficiency by making sure that the right people
complete the right tasks at the right time.
 Deliver projects that satisfy customer needs
 Improve project delivery performance related to quality, scope, schedule, and cost
 Do the right things right the first time
 Anticipate and respond to issues before they become problems
 Communicate effectively with stakeholders
 Manage change and risk
6. What is the difference between programme management and project management?
PROGRAM:
 is a group of related projects managed in a coordinated way to obtain benefits not available from
managing them individually
  Laws and regulations establish programs for government projects. These laws and regulations define
each program’s purpose, funding sources, and funding process.
 Funds for every project come from one or more programs. Project managers must know which
programs are funding their projects, and understand the particular funding rules of those programs

Project management: is the application of knowledge, skills, tools, and techniques to project activities in order
to meet or exceed owners’ needs and expectations from a project
7. What are the construction management contents or Body of knowledge (List all 9 contents)
 Project Integration Management
 Project Cost Management
 Project Communications Management
 Project Scope Management
 Project Quality Management
 Project Risk Management
 Project Time Management
 Project Human Resource Management
 Project Procurement Management
8. What are the core and Facilitating body of knowledge’s for construction management
Facilitating
• Qualitative Risk Analysis—performing a qualitative analysis of risks and conditions to prioritize their
effects on project objectives.
• Quantitative Risk Analysis—measuring the probability and impact of risks and estimating their
implications for project objectives.
• Risk Response Planning—developing procedures and techniques to enhance opportunities and to
reduce threats to the project's objectives from risk.
• Procurement Planning: determining what to procure, how much to procure, and when.
• Solicitation Planning: documenting product requirements and identifying potential sources.
Core
• Scope Planning—developing a written scope statement as the basis for future project decisions.
• Scope Definition—subdividing the major project deliverables into smaller, more manageable
components.
• Activity Definition : Identifying the specific activities that must be performed to produce the various
project deliverables.
• Activity Sequencing : identifying and documenting interactivity dependencies.
• Activity Duration Estimating : Estimating the number of work periods that will be needed to complete
individual activities.
• Schedule Development : analyzing activity sequences, activity durations, and resource requirements to
create the project schedule.
• Risk Management Planning—deciding how to approach and plan for risk management in a project.
• Resource Planning—determining what resources (people, equipment, materials, etc.) and what
quantities of each should be used to perform project activities.
• Cost Estimation : developing an approximation (estimate) of the costs of the resources required to
complete project activities.
 • Cost Budgeting : allocating the overall cost estimate to individual work packages.
• Project Plan Development : taking the results of other planning processes and putting them into a
consistent, coherent document.
• Quality Planning—identifying which quality standards are relevant to the project and determining how
to satisfy them.
• Organizational Planning—identifying, documenting, and assigning project roles, responsibilities, and
reporting relationships.
• Staff Acquisition—getting the human resources needed assigned to and working on the project.
• Communications Planning—determining the information and communications needs of the
stakeholders: who needs what information, when will they need it, and how will it be given to them.
• Risk Identification—determining which risks are likely to affect the project and documenting the
characteristics of each.

9. Construction management body of knowledge which aims giving knowledge of managing all core and
facilitating knowledge contents is Planning processes
10. In construction a collection of phases make project completing
11. What does mean project deliverable in project phase?
 Deliverables from the preceding phase are usually approved before work starts on the next phase.
12. Review of key deliverables and performance report at the end of one phase is important (why).
 Determine if the project should continue into its next phase.
 Detect and correct errors
13. What is the importance of marking projects by life cycle (list at least 2 points)
 What technical work should be done in each phase?
 Who should be involved in each phase?

14. Draw a typical project life cycle (cost and staffing level versus time)

15. What is stakeholder in construction management?

 are individuals and organizations that are actively involved in the project, or whose interests may be
positively or negatively affected as a result of project execution or project completion; they may also
exert influence over the project and its results.
16. What are the key stakeholders in construction industry?
 Project manager—the individual responsible for managing the project.
 Customer—the individual or organization that will use the project's product or service.
  Performing organization—the enterprise whose employees are most directly involved in doing the
work of the project.
 Project team members—the group that is performing the work of the project.
 Sponsor—the individual or group within or external to the performing organization that provides
the financial resources, in cash or in kind, for the project.
17. List and describe the five project management process
 Initiating processes—authorizing the project or phase.
 Planning processes—defining and refining objectives and selecting the best of the alternative
courses of action to attain the objectives that the project was undertaken to address.
 Executing processes—coordinating people and other resources to carry out the plan.
 Controlling processes—ensuring that project objectives are met by monitoring and measuring
progress regularly to identify variances from plan so that corrective action can be taken when
necessary.
 Closing processes—formalizing acceptance of the project or phase and bringing it to an orderly
end.
18. How those management process groups linked
• The process groups are linked by the results they produce—the result or outcome of one often
becomes an input to another.
19. What are the project management process element?
• Inputs—documents or documentable items that will be acted upon.
• Tools and techniques—mechanisms applied to the inputs to create the outputs.
• Outputs—documents or documentable items that are a result of the process.
20 what are the core planning process?(list 16 planning processes)
• Scope Planning—developing a written scope statement as the basis for future project decisions.
• Scope Definition—subdividing the major project deliverables into smaller, more manageable
components.
• Activity Definition : Identifying the specific activities that must be performed to produce the various
project deliverables.
• Activity Sequencing : identifying and documenting interactivity dependencies.
• Activity Duration Estimating : Estimating the number of work periods that will be needed to complete
individual activities.
• Schedule Development : analyzing activity sequences, activity durations, and resource requirements to
create the project schedule.
• Risk Management Planning—deciding how to approach and plan for risk management in a project.
• Resource Planning—determining what resources (people, equipment, materials, etc.) and what
quantities of each should be used to perform project activities.
• Cost Estimation : developing an approximation (estimate) of the costs of the resources required to
complete project activities.
• Cost Budgeting : allocating the overall cost estimate to individual work packages.
• Project Plan Development : taking the results of other planning processes and putting them into a
consistent, coherent document.
• Quality Planning—identifying which quality standards are relevant to the project and determining how
to satisfy them.
 • Organizational Planning—identifying, documenting, and assigning project roles, responsibilities, and
reporting relationships.
• Staff Acquisition—getting the human resources needed assigned to and working on the project.
• Communications Planning—determining the information and communications needs of the
stakeholders: who needs what information, when will they need it, and how will it be given to them.
• Risk Identification—determining which risks are likely to affect the project and documenting the
characteristics of each.
21. List at least four executing process of project
 Project Plan Execution—carrying out the project plan by performing the activities included therein.
 Quality Assurance—evaluating overall project performance on a regular basis to provide confidence
that the project will satisfy the relevant quality standards.
 Team Development—developing individual and group skills/competencies to enhance project
performance.
 Information Distribution—making needed information available to project stakeholders in a timely
manner.
 Solicitation—obtaining quotations, bids, offers, or proposals as appropriate.
 Source Selection—choosing from among potential sellers.
 Contract Administration—managing the relationship with the seller.
22. Integrated Change Control :coordinating changes across the entire project.
• Scope Verification : formalizing acceptance of the project scope.
• Scope Change Control :controlling changes to project scope.
• Schedule Control : controlling changes to the project schedule.
• Cost Control : controlling changes to the project budget.
• Quality Control : monitoring specific project results to determine if they comply with relevant quality
standards and identifying ways to eliminate causes of unsatisfactory performance.
• Performance Reporting—collecting and disseminating performance information. This includes status
reporting, progress measurement, and forecasting.
• Risk Monitoring and Control—keeping track of identified risks, monitoring residual risks and
identifying new risks, ensuring the execution of risk plans, and evaluating their effectiveness in
reducing risk.
23.
 Contract Closeout : completion and settlement of the contract, including resolution of any
open items.
 Administrative Closure—generating, gathering, and disseminating information to formalize
phase or project completion, including evaluating the project and compiling
lessons learned for use in planning future projects or phases.

[Link] each construction management knowledge areas what activities has done in each process groups?
(Show in table matrix)
25. Scope of project manager
• How many sub-trades you will need and what they are
• it suggests an order of work
• it ensures that you do no more than you have contracted for
• it establishes a basis for claims for additional work
• it establishes a schedule for ordering materials
• it gives an idea of how much time you must spend on coordination and inspection
• with the WBS it gives a sound basis for an estimate
• it shows interfaces with existing work and other contractors (if there are any)
Scope of client
• it leaves him or her in no doubt as to what he or she is getting for the money
• it eliminates arguments between Contractor and Client as to what was or was not included
• it makes it easy for the Client to acknowledge a claim by the Contractor for extra money or time
• it saves the Client from that uncomfortable feeling they may encounter due to undefined scope.
Scope of contractor

26. What is project scope base line?

 Is the approved detailed project statement & it’s associated Work Breakdown Structures & Work
Breakdown Structures dictionary.
 The baseline is then monitored ,controlled throughout the life cycle of the project
27. What is statement of work/sow/?
 The basic framework within which a contractor is accepted to operate that is , the work to be
performed and /or the result to be achieved.
28. What is the importance of WBS in project management?
• Defining Activities, determining method of work, resources and durations of activities
• Define project workforce needs (management and labour requirements)

29. Processes includes

• Initiation (collect requirements): COMMITING THE ORGANIZATION TO BEGIN THE NEXT PHASE OF
THE [Link] is the process of defining and documenting stakeholder’s need to meet the project
objective
Inputs Tools & techniques output
Strategic plan Project selection methods project charter
Historical information Expert judgment project manager identified
Product description OWNER’s Priority, Need constraints
Project selection Assumption
• Scope Planning (define scope): developing a written scope statement as the basic for future project
decisions. The process of developing a detailed description of the project and product
Tools & techniques out put
 Product analysis Scope statement
 Cost/benefit Scope mgt plan( Contract Document)
 Alternative identification
 Expert judgment
• Define Scope (create WBS): subdividing the major project deliverables into smaller, more
manageable components
Tools & Techniques Out put
 WBS templates WBS
 Decomposition Scope Statement updated
• Verify Scope: formalizing acceptance of the project scope
Inputs Tools & Techniques OUT PUT
 Work result Inspection Acceptance
 Product/ facility document
 WBS
 Scope Statement
 Project plan
• Control Scope changes: controlling change to project scope
Tools & Techniques out Put
 Performance Measurement Scope changes
 Change control system Corrective measures
Lesson learned
Adjusted base line
30. in the initiation phase of fixing project scope, what are the main inputs used
 Strategic plan
 Historical information
 Project selection
 Product description
31. There are four main out puts from project scope initiation, what are they

 project charter
 Assumption
  constraints
 project manager identified
32. What is project charter?
It is a document that proof the upper commitment to the project and gives an authority to the project
manager to manage the project and also recognize the existence of the project
33. What are the two main outputs from scope planning?
 Scope statement
 Scope mgt plan( Contract Document)
34. What are the two main outputs from scope definition?
 WBS
 Scope Statement updated
35. What is scope verification? And what the main inputs for scope verification
Scope verification: is formalizing acceptance of the project scope
Main input
 Work result
 WBS
 Product/ facility document
36. What is the end goal of scope verification?
 Formalizing acceptance of the project scope
37. What is management (HRM)?
 the social process of planning, organizing, leading and controlling for the determination and
achievement of organizational objectives in a dynamic environment.
38. What are the four human resources management function processes?
 planning,
 organizing,
 leading and
 controlling
39. For achieving this management function process what type of skill required?
 Hard (skills not related to feelings & beliefs); Soft (skills related to feelings and beliefs) of individuals
and groups
40. Why human manage human? And when human managing human ends?

41. Describe the difference between thought, attitude and behavior?

Thought
Attitude
Behavior

42. What is the importance of being emotional in a project?

 Helps to develop vision and motivate or energize others ,
 Encourage creativity and innovation because people having these challenge status quality and are
willing to take risks of failure rather they learn and work hard to succeed
 Helps to build trust and cooperation
43. What is motivation in a project and what the base of motivation
Motivation: is an urge or drive which impels a person to act in a particular direction to achieve a certain goal
Bases: various studies claim that it is based on needs. Physiological needs which are finite in nature are
referred as primary while socio-psychological needs which are infinite as secondary needs.
44. What are the two main types of needs?

45. Have you understand the three motivation theories about human?

46. What are human resource Management system and activities processes?

47. What are the four “c”‘s used to check effectiveness of human management system?
 Competence: skill and knowledge
 Commitment: demonstrated duty to perform task
 Congruence: is there trust and common purpose b/n managers and employees. Low level of trust and
common purpose are signs of incongruence
 Cost Effectiveness: are HRM policies effective when evaluated in terms of wedges, benefits, turnover,
absenteeism, strike
48. The main responsibility of a project manager is to bring satisfaction for the client?
How client satisfaction can be achieved? (List at least three points)
 Quality,
 time &
 budgeted cost by mobilizing the necessary resources and managing stakeholders
49. What are the skills and Environmental inputs to project manager?(list at least 6)
 Team orientation keeping individual contributions up
 Empowerment: prevalence of enabling environment and competence and commitment of individuals
involved
 Compatibility of Core values of employees to that of the company
 Adaptability to project changing environment
 Alignment to project objective organizational strategic intent and direction
 Interest to please customers and other stakeholders
50. What are the five main roles of project manager?
 commercial or entrepreneurial role
 human or team leader role
 technical role
 figurehead role
 decisional and negotiation role
51. What are the key constraining factors for a project objective?
 Time
 Budgeted cost
 specification
52. What are the three key tasks of a project manager as a project leadership?
 the management of works, resources, and contract
53. What main activities has been done in project leadership specially at planning ,organizing leading and
controlling processes
Planning:
 Involves selecting missions and objectives and the actions to achieve them; it requires decision
making, that is, choosing from among alternative future course of action.
 Bridges the gap from where we are to where we want to go.
 It is inseparable from control.
Organizing the works and determining HR requirement
 Organization Breakdown Structure (OBS) is a responsibility level established by dividing and grouping
of project works into manageable sizes.
 The most common factors for breakdown and grouping into responsibility centers are type, size,
proximity and complexity of project works; and in some cases time and resource size may also be
factors
 At some level the works may be organized by work packages such as earthwork, concrete etc
 The organizing process of the works integrates the organizational hierarchies of responsibility
centers with the work packages /activities/ of the physical WBS
Leading HR: mobilization, coordination and enhancement of productivity and quality
 Conduct project kick-off meeting
 Create awareness and set project level SMART goals
 Work out and agree on individual and crew/team/ performance standards of human, equipment and
materials
 Build motivated teams
 Enhance creativity and innovation to assure continuous improvement
 Enhance productivity/individual and crew/

54. Qualification requirement of a PM depends on (list three points)

 Nature of project
 Size of project
 constraints under which he is required to work

55. What are the recommended attitudes of a PM?

 desire to delight customer;
 accept challenge and responsibility;
 desire for best use of resources;
 Goal focused;
 has integrity;
 flexible about the route to his target;
 has personal goal consistent with organizational goal ...
56. What are recommended skills of a PM?
 technical knowledge;
 team motivator;
  able to delegate;
 manage his time ;
 balance stake holders’ perception;
 negotiator;
 problem solver ...
57. What is Camp administration is one of the project team environment management
Camp Administration: show concern about the living environment of your work force makes frequent
observation to be informed about life in camp.

58. What is the difference between leader and manager?

Leader manager
 Concur the context Surrender to them
 Innovates Administrates
 Is an original; originates Is a copy; imitates
 Develops Maintains
 Focuses on people Focuses on systems and structures
 Inspires trust Relies on control
 Has long-range perspective Has shot-range view
 Asks what and why Asks how and when
 Has his eye on the horizon Has an eye on the bottom line
 Challenges status quo Accepts status quo
 Does the right things Does things right
59. What is contract and what is the end consequence of contract
 A contract is a legally binding agreement between the parties identified in the agreement to fulfil all the
terms and conditions outlined in the agreement.
 End consequence of contract duties and obligations of the contractual Partners against each other
60. What elements should be fulfilled to create valid contract (list all)
 The parties are capable of contracting and give their consent sustainable at law
 The object of the contract is sufficiently defined and is possible and lawful;
 The contract is made in the form prescribed by law, if any.
 Capacity:- on the one hand fulfilling the issue of legal capacity related to parties / persons who are
non minor, non-bankrupt, etc; and on the other hand eligibility and technical competence
requirement of the specific service or works. (As defined in regis proc & Directive)
 Consent (Offer – Acceptance – Agreement Principle) a contract can only be valid if and only if the
Contracting Parties Consented with their own free will to enter into agreement without undue duress
and force and with full understanding of the rights, obligations and remedial rights included in the
contract through the offer, acceptance and agreement process in the presence of witnesses.
 Rights – Obligations – Remedial Rights Principle
 As the very essence of a contract is to clearly state the obligations and rights of the contracting
parties, it is essential that Contracting Parties should be entitled to remedial rights in case on one of
them has failed to perform their obligations, based on the risk allocation and mitigation mechanisms
stated in the contract.
 Risk Sharing – Mitigation Principle
  because Contracting parties have agreed on the bases of the risk allocation and mitigation
mechanisms during their tender offer and acceptance which include:
 which of the Risks are absorbed in the Contract Price;/clause 11
 which ones are transferred to be governed by the Contract Securities such as Performance, Advance
Payment and Retention securities;/bond issues
 Defined Object:- a contract shall clearly define the object in which the Procuring entity would like to
get at the end or in stages of the execution of the Contract for the comparable exchange to the party
who executes the Contract. ( not percept)
 Clearly state the obligations and rights of the contracting parties so as to let them and know definitely
what is required of them as part of their performance of the Contract. (REQUIREMENTS IN scope, Qlty
Time) through (BOQ, SPEC, DRWG)
 Possible and Lawful:- As Objects or Promises defined in Contracts shall be lawful and humanly and
technologically possible to execute with the Consideration agreed upon.
61. In construction there are three main involving parties (list their name and the responsibility and right
which they exercise)
OWNER’S RESPONSIBILITY
 Providing information to the con tractor
 Payment of fees and charges associated with the work
 Making payment to the contractor
OWNER’S right
 Right to stop the work
 Right to carry out the work.
 Right to award separate contracts
 Right to perform construction
 Right to partial occupancy
 Termination without cause
 Involvement in contract administration activity.
CONTRACTOR’S RESPONSIBILITY
 The contractor is responsible for accomplishing the work and for the contractor project management
process.
 The conditions of the contract list the basic responsibilities of the contractor.
 Standard owner-contractor agreements typically require the contractor to conform to the construction
contract, including the following tasks:-
 Review contract documents and notify the consultant of any errors or omissions as soon as
they are observed.
 Follow procedures for substitution of products as specified in the contract documents.
 Provide competent supervision, capable of representing the contractor in all matters relating
to the construction of the project.
CONTRACTOR’S right

CONSULTANT’S RESPONSIBILITY
 Represent the owner
 Observe the work
 Certify/recommend
  INTERPRET CONTRACT DOCUMENTS
 Resolve disputes
 Modify the contract documents
 Modification vs additional bond requirement
 Review submittals.
 Perform inspections
CONSULTANT’S right
62. What good things you expect from each party putting you as one of them.
OWNER
• The owner needs to understand that the contract documents are not perfect and that changes are to
be expected during construction. It is important for the owner to provide a reasonable contingency
fund in the project budget to cover such situations.
• The consultant and contractor expect full disclosure of all information as required by the contract
documents so that they may perform their contractual responsibilities.
• The owner, or an authorized agent of the owner, is expected to be accessible for decisions or
consultation. The owner is also expected to promptly process payments, modifications, and other
documents requiring the owner’s approval.
• The contractor expects the owner to have the necessary financial resources to make prompt progress
payments and to fund the costs of changes. The contractor also expects the owner to be reasonable
and fair in the owner’s interpretation of the scope of the work under contract as represented by the
drawings and specifications.
• PLEASE ALSO REFER THE CIVIL CODE
Consultant
• The consultant is typically required to exercise reasonable care in preparing construction documents.
• During construction, the owner typically relies on the consultant for information on the progress and
quality of the work.
• The consultant is expected to be knowledgeable and professional and to take a leadership role in the
decision-making process.
• The owner relies on the consultant to design the project within a given budget and continue to be
prudent during the construction stage to help complete the project within budget.
• The consultant is also expected to provide an evaluation of any proposed change orders to ensure that
the extra costs are fair and reasonable. VFM
• The contractor expects the consultant to be fair and responsive in interpreting the contract
documents.
• Subcontractors expect the consultant to process the contractor’s applications for payment in a timely
manner because their payment is often contingent on the contractor being paid.
• Subcontractors also expect the consultant to promptly process submittals and to act in a fair and
timely manner when interpreting the contract documents.
• Testing and inspection agencies expect the consultant to provide a clear definition of the services to be
performed and to be present when tests are conducted if required by the contract documents.
• The consultant may be requested to inform sureties of the progress of a project, but do so only within
legal limitations.
Contractor
• The consultant expects the contractor to be knowledgeable of, and in compliance with, the contract
documents for the actual construction and the administrative requirements of the project, and to be
experienced in the type of construction specified.
• The consultant expects a qualified project superintendent who will be conscientious in constructing the
project based on what is reasonably inferable from the contract documents.
• The owner expects the contractor to be financially sound, to complete the project according to the
contract documents, and to be reasonable in pricing modifications to the project.
 • The owner also expects the contractor to accommo date the owner’s use of the partially completed
facility.
• The subcontractorsexpect the contractor to properly schedule and coordinate the work, to enforce QC
provisions, to get clarifications and interpretations in a timely manner, and to make prompt progress
payments.
• HENCE ALL PARTIES SHOULD WORK AS A TEAM FOR SUCCESS OF THE PROJECT

63. What are the difference between contract document and construction document?

64. List all the construction document including their purpose.

65. List all the contract document including their purpose.

Contracting Requirements: Includes:-
 Procurement Forms and Supplements
 Contracting Forms and Supplements
 Project Forms
 Conditions of the Contract
Condition of contract
 General condition
 Supply condition

66. What is the central aim of contract management?

 To obtain the product s agreed in the contract and achieved value for money
67. Describe each term (Commencement stage, Dealy and suspension, defect liability period)
Commencement
 Issue Notice to Commence to the Contractor
 Failure by the Contractor to commence with due expedition
 Failure by the Employer/Engineer to issue a Notice to Commence
Delay
 Is an adverse impact on timing in relation to what was intended.
Suspension
 Is a stoppage of work on any or all activities in all or part of the works for a certain duration
Defect Liability Period
 Definition of DLP
 Patent and Latent Defects
 Commencement of the DLP
 Contractor’s payment during the DLP
 Failure by the contractor to remedy any defects
 Termination during DLP
68. What are the major categories of construction delay?
• Delay to Progress: Delay in a particular activity;
• Delay to Completion Date: Delay to the Contract Completion date;
 • Delay to the Date for Completion: Delay to the completion date intended by the contractor;
69. What are the main types of construction delay?
• Excusable and Compensable Delay
• Excusable but Non-Compensable Delay
• Inexcusable/Culpable Delay
• Concurrent Delay
• Parallel Delay
70. What are the major causes of suspension in construction?
 Delay in Payment;
 Design Revision;
 Availability of Obstructions
71. List the effect that occur in construction due to suspension
 Reduction of Rate of Progress
 Stoppage of work
 Termination of Contract
72. List and describe construction payment types.
 Advance Payment: What makes it different from Down Payment? Is it Interest Free for the Employer;
in case of delay?
 Interim Payment Certificates: Could be termed as temporary certification that could be
corrected/modified. It is a sum of monthly statements if the amount of the previous month is less
than the minimum.
 Statement at Completion: payment for the whole outstanding payments of works after substantial
completion. Half of the retention money would also be released.
 Final Payment: Covers all eligible payments until the completion of the DLP. Any claim/dispute should
be settled before the final payment. Letter of Discharge.
73. What is contract sum?
 Changes the Contract Sum from what is stated in the Letter of Acceptance could arise due to
Variations, Fluctuations and Claims.
74. What is the difference between variation and fluctuation?
Variations: Any changes to contracts from what has been anticipated at the making of the contracts could be
regarded as variation.
Fluctuation is the rise or fall of the prices of construction inputs; like material, labour and/or equipment
during the course of construction.
75. What is the difference between Defect liability bond and Retention Money?

76. What is the difference between statement at completion and final account?
Statement at Completion: payment for the whole outstanding payments of works after substantial
completion. Half of the retention money would also be released
Final Payment: Covers all eligible payments until the completion of the DLP. Any claim/dispute should be
settled before the final payment. Letter of Discharge
77. What is the main cause for variations?
 Variations could arise either from the insufficiency of the original design, change in mind by the
client, as a result of mitigation measures, etc.