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International Cons June Test 1-1

The document is an exam for an International Construction course consisting of two questions worth 30 marks each. Question 1 describes a case study where a design-build joint venture was contracted to design and build a chemical plant, but there was a major design flaw in the mechanical exhaust system discovered after completion. It asks examinee to discuss who is at fault, what types of insurance would apply, and what checks and balances are needed for design-build projects. Question 2 asks examinee to analyze the arguments that engineering firms WSP and Aecom would make to shareholders to gain support for their proposed merger, and explain how contemporary business ideas relate to those arguments.

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33 views3 pages

International Cons June Test 1-1

The document is an exam for an International Construction course consisting of two questions worth 30 marks each. Question 1 describes a case study where a design-build joint venture was contracted to design and build a chemical plant, but there was a major design flaw in the mechanical exhaust system discovered after completion. It asks examinee to discuss who is at fault, what types of insurance would apply, and what checks and balances are needed for design-build projects. Question 2 asks examinee to analyze the arguments that engineering firms WSP and Aecom would make to shareholders to gain support for their proposed merger, and explain how contemporary business ideas relate to those arguments.

Uploaded by

tholoana senti
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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PROGRAM : BSc (Hons) CPM, CM, HSM & QS

SUBJECT : INTERNATIONAL CONSTRUCTION

CODE : ICC8X00

DATE : TEST 1
Wednesday JUNE 23, 2021

DURATION : 95 MINUTES (19:00- 20:35 PM)

WEIGHT : 30

TOTAL MARKS : 60

EXAMINER : MR JACOB KOFI SIE

MODERATOR :

NUMBER OF PAGES : 3 PAGES

INSTRUCTIONS TO CANDIDATES:

Handwritten responses ONLY


• Answer ALL Questions
• At the top of each page include your surname and initial(s), Student ID
Number, and the Title of the module for which you are submitting.
• Submit your work in blue or black ink, in legible handwriting on lined
paper
• Clearly indicate the question number for all of your responses.
• Number each page of your work
• Scan your answers/responses with Any scanning device and upload your
answer scripts on blackboard
INTERNATIONAL CONSTRUCTION (ICC8X00) -2-

ANSWER ALL QUESTIONS


Question 1

Case 1: Design-build joint ventures

A client negotiated a design-build contract with a joint venture (JV) general contractor and

architect for the design and construction of a $100 million chemical manufacturing facility.

The project was constructed within a reasonable time frame and for a fair price. The quality

of the work was acceptable and there were not any time-loss safety incidents. The architect’s

and the contractor’s joint venture was dissolved immediately after substantial completion was

achieved and they had received their retention. In only six months after completion, the

owner had achieved 90% of potential production output and sales were higher than

anticipated. About that time, several employees began feeling ill and several citizens living

nearby and working outside the facility filed a claim due to unacceptable odors coming from

the plant. The government shut the plant down. It was discovered that there was a major

design error in the mechanical exhaust system and it would cost the owner $10 million to

redesign and repair, and maybe 10 times this in lost revenue. There would eventually be

personnel claims as well due to illness. The owner took the designer to arbitration and won.

The owner separately took the contractor to arbitration and won on the basis that the general

“should have known” that the design was in error. Should the owner be allowed to pursue the

two parties separately or only the JV? Was the general at fault? Shouldn’t the owner have had

some responsibility in this? The city approved the plans – what sort of liability do they have?

What types of insurance will come into play here? Does this mean the design-build

procurement approach is flawed? What sorts of checks and balances are required of the

design for a design-build project? [ 30 MARKS]


INTERNATIONAL CONSTRUCTION (ICC8X00) -3-

2. The business media has predicted the merger of the two engineering and infrastructure

giants WSP and Aecom. The combined company would have a value of over £11 billion.

Analyse what the two companies are likely to say to shareholders and other interested parties

to get their support for the merger. You must examine the arguments that will be used,

explaining how contemporary ideas are linked to business practice. [ 30 MARKS]

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