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THE UNIVERSITY OF THE WEST INDIES

EXAMINATIONS OF APRILIMA Y 2012

Code and Name of Course: PRMG 6007 - Procurement Management, Logistics & Paper:Contracting

Date and Time: ~ 0 N1)A--~ lLt- M A'c-[ '2-0 l 2--@ If· 00 PM Duration: 2 HOURS

INSTRUCTIONS TO CANDIDATES: This paper has 3 pages and 5 questions.

CANDIDATES MUST ANSWER THREE (3)OF THE FIVE QUESTIONS LISTED BELOW

© The University of the West Indies Course Code PRMG6007 APRILIMAY 2012

Page 2

1. (a) Briefly explain the use of the following terms and discuss their relationships:

(i) Invitation to Register.(ii) Terms of Reference.(iii) Request for Expression of Interest.(iv) Request for Proposals.(v) Request for Quotations.(vi) Request for Information.(vii) Invitation to Prequalify.(viii) Invitation to Bid or Tender. [8 Marks]

(b) Identify and discuss the differences between the principal objectives of both public sectorand private sector procurement practice as they exist in your country. [8 Marks]

(c) Explain the different situations under which you would recommend the use of open/publictendering and selection tendering. [4 Marks]

2. (a) Explain the different stages in a typical project from conception to completion. [4 Marks]

(b) What are the principal stages in a feasibility study, briefly identify and discuss. [4 Marks]

(c) Explain the concept "project creep" and briefly list and explain the principal causesand the consequences. ,I' [4 Marks]

(d) Explain the role and use of an independent external consultant when employing adesign and build procurement system.

. \[4 Marks]

(e) Explain the role of the Engineer's estimate in tender evaluations. E~plain whataction you, as the Chairman of a State Board, would recommend if there areconcerns about the reliability of this estimate?

,.[4 Marks]

3. (a) Explain the following terms:

(i) Risk.(ii) Risk Analysis(iii) Risk Management [3 Marks]\

(b) Your Company is about to undertake several major projects and you areassigned to lead a multi-disciplinary team to conduct a risk assessment.

___ © The Univs:rsityof the West Indies Course Code PRMG6007------- --------------------------------------

APRIL/MAY 2012

Select Q.!!£ of the following projects and briefly identify and discuss the principalrisk factors:

(i) \(ii)(iii)(iv)

vxv)

A Multi Billion Dollar road construction project.The Construction of a Mega FarmA large beach front hotel.A largesuburban gated residential community.A new industrial estate. ' .....-

\ ,

[7 Marks]

(c) Discuss the risk allocation in the case of a situation in which you are employing aDesign and Build contractor in one of the situations above, where the contract .is a Lump Sum contract andthere are milestone payment schedules. [10 Marks]

4. (a),

What are the principal advantages of employing a standard fonn contract.: [4 Marks]

(b) List and briefly discuss the principal clauses in a typical standard form contract. [4 Marks].'

(c) Differentiate between liquidated damages and claims. ~ _ [4 Marks]

(d) ~ow has the intemationallending agencies influenced the procurement pr~c~sIII your country. , ......" [4 Marks]

(e) The Procurement Process is at the centre of most, if not all, instances of corruption inthe public sector. Discuss. [4 Marks]

5. (a) Briefly discuss each of the following:

(i) Codes of Practice.(ii) Codes of Ethics. '(iii) Compulsory Standards.(iv) Conflict ofInterest. [8 Marks]

(b) Differentiate between adjudication and arbitration. [4 Marks]

(c) An arbitrator's findings are binding. Explain, under what condition can anarbitrator's finding be appealed. [4 Marks]

(d) List and briefly discuss the principal characteristics you will be looking for inselecting a sole arbitrator. ~ [4 Marks]

END OF PAPER© The University of the West Indies Course Code PRMG6007 APRIL/MAY 2012