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ADVANCED BUSINESS CONSTRUCTION MANAGEMENT ANSWERS (TYPE A)
SECTION A: ANSWER ALL QUESTIONS
(1)
(i) Functional structure;
(ii) Divisional structure
(iii) Matrix structure
(iv) Line and staff structure
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(2)
Direct financial incentives:
(i) Overtime pay
(ii) Commission
Indirect financial incentives
(i) Pension schemes
(ii) Health insurance
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(3)
(i) Recruitment and selection of employees
(ii) Training and development of staff
(iii) Employee welfare and discipline
(iv) Performance appraisal and motivation
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(4)
A contract under seal is a formal agreement that is signed and sealed, showing an intention to be legally bound, even if no consideration is given. It is legally enforceable because of the seal.
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(5)
(i) To improve employee performance by setting clear and measurable goals
(ii) To align individual objectives with organizational objectives
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(6)
Break-even point (units) = Fixed Costs / (Selling Price per Unit – Variable Cost per Unit)
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(7)
A = P (1 + r)ⁿ
Given;
A = ?
P = 5 000
r = 0.03
n = 12:
A = 5000 × (1 + 0.03)¹²
A = 5000 × (.03)¹²
A = 5000 × 1.4258
A = N7129
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(8)
A Bin card is a record used in stores to show the quantity, description, and movement (issue and receipt) of stock items. It helps in monitoring stock levels and preventing shortages or overstocking.
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(9)
Encoder is a device or circuit that converts information from one format into another, typically from a readable input into a coded output while a decoder is a device or circuit that converts coded information back into a readable format.
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(10)
(i) Cement factory: near limestone deposits
(ii) Sugar refinery: near sugarcane farms
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SECTION B: Answer two questions only from this Section (To be answered by all candidates)
(11)
(i) Offer: An offer is a clear proposal made by one party to another, expressing a willingness to enter into a contract on specific terms. It sets out exactly what one party is prepared to do and under what conditions. For example, in construction, a contractor may offer to build a residential house for a client at a specified price and within a set timeframe. Without a clear offer, there can be no agreement.
(ii) Acceptance: Acceptance occurs when the party to whom the offer is made agrees unconditionally to the terms of the offer. It must correspond exactly to the offer; otherwise, it may be considered a counter-offer rather than acceptance. In construction, if the client agrees to the contractor’s proposal without changing any terms, this constitutes acceptance, making the contract binding.
(iii) Consideration: Consideration is the benefit or value that each party receives from the contract. It can take the form of money, goods, services, or a promise to act or refrain from acting. For a construction contract, consideration may be the payment the client promises to make in exchange for the contractor completing the building project. Consideration is essential because it shows that both parties are giving something in return, making the agreement enforceable.
(iv) Intention to Create Legal Relations: Both parties must intend for the agreement to be legally binding. In business and construction contracts, it is presumed that the parties intend legal consequences if the contract is breached. This distinguishes a formal contract from informal or social agreements. For example, a signed contract specifying project timelines, costs, and penalties shows that both the contractor and client intend to be legally responsible for their obligations.
(v) Capacity of Parties: The parties entering into a contract must have the legal ability to do so. This means they must be of sound mind, of legal age, and not restricted by law from entering contracts. In construction, this ensures that, for instance, a minor or a person declared mentally incapacitated cannot bind themselves or others legally in a contract, protecting all parties from unenforceable agreements.
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(12a)
Compound interest is the interest calculated on both the initial principal and the interest that has already been added to it from previous periods. Unlike simple interest, where interest is only earned on the principal, compound interest allows money to grow faster because interest accumulates on accumulated interest.
(12b)
A = P (1 + r)ⁿ
Given;
P = 10,800
r = 5% = 0.05
n = 4years
Amount (A) = 10,800 × (1 + 0.05)⁴
A = 10,800 × (1.05)⁴
A = 10,800 × 1.2155
A = N13,127.40
Compound interest (CI) = A – P
CI = 13,127.40 – 10,800
CI = N2,327.4
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(13a)
(i) Language Barrier; Differences in language, jargon, or technical terms can prevent the message from being understood correctly. For example, using construction-specific terminology with non-technical staff may lead to confusion.
(ii) Physical Barrier; Physical distance, noise, or poor communication tools can hinder the transfer of information. In construction sites, heavy machinery noise or remote locations may prevent messages from being heard or received accurately.
(iii) Emotional Barrier; Personal feelings, stress, or attitude can distort communication. For example, if a manager is angry or stressed, the way instructions are given may be misinterpreted or ignored by employees.
(iv) Cultural Barrier; Differences in culture, beliefs, or values can affect understanding. For instance, gestures, expressions, or norms that are acceptable in one culture may be misunderstood in another, affecting teamwork on a construction project.
(v) Perceptual Barrier; Misunderstandings can arise due to differing perceptions or interpretations of the same message. For example, a worker may perceive a safety instruction as unnecessary, while the manager sees it as critical.
(13b)
(i) Verify Information: The manager should cross-check information obtained through the grapevine to ensure its accuracy before acting on it.
(ii) Use It to Gauge Employee Sentiment: Grapevine often reflects employee morale and opinions. A manager can use it to understand concerns, identify issues early, and improve workplace relations.
(iii) Clarify Rumours: Managers can use grapevine information to detect false rumors and provide clarification to prevent misinformation from spreading.
(iv) Improve Communication Strategy: By analyzing grapevine trends, a manager can identify gaps in formal communication and adjust official communication channels to address these gaps.
(v) Motivate and Engage Employees: Understanding informal communication can help managers engage with employees more effectively, address grievances, and foster a positive work environment.
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SECTION C: Answer two questions only from this Section (To be answered by Business and Miscellaneous Trades candidates)
(14a)
Management is the process of planning, organizing, leading, and controlling resources (human, financial, and material) efficiently and effectively to achieve organizational goals. In construction, management ensures that projects are completed on time, within budget, and according to specifications.
(14b)
(i) Planning: Planning is the process of deciding in advance the objectives of the organization and the steps necessary to achieve them. It involves analyzing the current situation, forecasting future conditions, setting goals, and determining the resources and actions required. Planning provides direction, reduces uncertainty, helps anticipate challenges, and ensures efficient utilization of resources. It also serves as a standard for evaluating progress and making adjustments where necessary.
(ii) Organizing: Organizing involves arranging and coordinating resources and activities in a structured way to achieve organizational objectives. It includes defining tasks, allocating responsibilities, establishing authority, and creating relationships among employees. Organizing ensures that resources are used efficiently, prevents duplication of effort, facilitates coordination, and helps maintain order. It provides a clear structure within which employees understand their roles and how they contribute to overall goals.
(iii) Leading (or Directing): Leading is the process of influencing, guiding, and motivating employees to perform tasks effectively and achieve organizational objectives. It encompasses communication, motivation, supervision, and leadership. Effective leading fosters teamwork, encourages initiative, enhances employee morale, and aligns individual efforts with organizational goals. Leadership also involves resolving conflicts, building a positive work culture, and inspiring commitment and dedication among employees.
(iv) Controlling: Controlling is the process of monitoring activities, comparing actual performance against set standards, and taking corrective action when necessary. It ensures that organizational goals are being met efficiently and effectively. Controlling helps detect deviations, prevent errors, maintain quality, and optimize performance. It also involves setting performance standards, measuring outcomes, analyzing results, and implementing improvements to ensure continuous progress and achievement of objectives.
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(15a)
A Trade Union is an organized association of workers formed to protect and promote their rights, interests, and welfare in the workplace. It acts as a collective voice for employees, negotiating with employers on issues such as wages, working conditions, benefits, and job security. Trade unions aim to improve labor conditions and ensure fair treatment for all members.
(15b)
(i) Collective Bargaining: Trade unions engage in negotiations with employers on behalf of their members to agree on terms of employment, including wages, salaries, working hours, and benefits. Collective bargaining helps prevent exploitation by ensuring that employees receive fair compensation and treatment. It also provides a structured process for resolving disputes between workers and management without resorting to strikes or unrest.
(ii) Protection of Workers’ Rights: Trade unions safeguard the legal and contractual rights of workers. They act as a voice against unfair treatment, discrimination, or arbitrary dismissal. This includes providing legal representation, filing complaints, and ensuring that labor laws are enforced. By protecting workers’ rights, trade unions create job security and promote a sense of fairness in the workplace.
(iii) Improvement of Working Conditions: Trade unions advocate for a safer and healthier work environment. They work to reduce workplace hazards, ensure the provision of proper tools and equipment, and maintain reasonable workloads. By improving working conditions, trade unions enhance employee productivity, morale, and overall job satisfaction, which contributes to better performance and reduced absenteeism.
(iv) Provision of Welfare Services: Trade unions often provide additional welfare programs to support their members beyond basic employment rights. This includes financial assistance, medical care, insurance coverage, educational scholarships, and retirement benefits. These services improve employees’ quality of life, reduce financial stress, and foster loyalty and commitment to the organization.
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(16)
(i) Position or Legitimate Authority: A leader’s formal position within the organization gives them recognized authority to make decisions, assign tasks, and enforce rules. In construction management, for example, a project manager has the authority to approve work schedules, allocate resources, and enforce safety regulations. Employees respect this authority because it is backed by the organization, giving the leader power to direct and coordinate activities.
(ii) Expertise and Knowledge: Leaders who possess specialized skills, technical knowledge, or extensive experience are more influential because employees trust their judgment. In a construction project, a site manager who understands structural design, material specifications, and project management techniques is more likely to gain the confidence of workers and contractors, which enhances their ability to lead effectively.
(iii) Control of Resources: Leaders who control essential resources, such as finances, construction equipment, or labor, hold significant power. For instance, a construction supervisor who decides on the allocation of machinery or the procurement of materials can influence how efficiently the project progresses. Access to resources allows the leader to reward or withhold support, making their directives more compelling.
(iv) Personal Qualities and Charisma: Leaders with strong personal qualities such as integrity, confidence, empathy, and effective communication, can inspire and motivate their team. Charismatic leaders in construction management can encourage teamwork, boost morale, and instill discipline among workers. Their ability to connect with employees on a personal level often results in voluntary compliance and greater commitment to project goals.
(v) Support and Network: The level of support a leader receives from colleagues, subordinates, and external stakeholders affects their power. In construction, a manager with strong relationships with engineers, suppliers, and labor unions can secure cooperation, resolve conflicts, and mobilize resources efficiently. A broad network enables the leader to influence decisions, negotiate effectively, and overcome obstacles more successfully.
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SECTION D: Answer two questions only from this Section (To be answered by Engineering and Construction Trades candidates)
(17a)
Method study and work measurement are two complementary techniques in work study that aim to improve efficiency and productivity. Method study focuses on determining the best and most efficient way to perform a task, while work measurement determines the time required to perform the task using the best method. Essentially, method study comes first to optimize the process, and work measurement follows to establish fair and realistic performance standards. Together, they ensure that work is done efficiently, safely, and within planned time and cost limits.
(17b)
(i) Resistance from Workers: Workers may resist work measurement because they fear it could result in increased workload, stricter supervision, or reduced wages. This resistance can take the form of deliberately slowing down work or providing inaccurate information during observation. Such behavior can make it difficult to obtain precise and reliable time data, limiting the effectiveness of work measurement.
(ii) Variability in Performance: Differences among workers in terms of skill, experience, motivation, and physical ability can cause significant variation in the time it takes to complete tasks. Environmental factors, such as weather conditions, tools, and workspace layout, also affect performance. This variability makes it challenging to establish a fair and accurate standard time that applies to all employees under all conditions.
(iii) Cost and Complexity of Implementation: Work measurement often requires trained personnel, careful observation, recording devices, and analytical techniques. Implementing it across large or complex projects, such as construction sites, can be expensive and time-consuming. Additionally, adapting the measurements to account for changes in processes, technology, or project conditions adds further complexity, making it difficult to maintain accurate and up-to-date standards.
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(18)
=ASPECTS OF PRE-TENDER PLANNING=
(i) Project Scope Definition: Clearly define the objectives, deliverables, and specifications of the project. This ensures all parties understand the work involved and prevents ambiguity in the tender documents.
(ii) Cost Estimation and Budgeting: Prepare preliminary cost estimates, including materials, labor, equipment, and overheads. This helps in setting realistic budgets and evaluating tenders from contractors.
(iii) Risk Assessment: Identify potential risks such as site conditions, environmental issues, safety hazards, and financial uncertainties. Develop strategies to mitigate these risks before tendering.
(iv) Resource Planning: Determine the type and quantity of resources required, including labor, materials, and machinery. This ensures that tenders reflect realistic resource needs and availability.
(v) Tender Document Preparation: Prepare detailed tender documents that include project specifications, timelines, terms and conditions, evaluation criteria, and contractual obligations. Clear documentation improves the quality and accuracy of contractor submissions.
=ASPECTS OF PRE-CONTRACT PLANNING=
(i) Contract Type and Conditions: Decide on the appropriate contract type (e.g., lump sum, cost-plus, or unit price) and define the terms and conditions. This provides clarity on responsibilities, payment schedules, and legal obligations.
(ii) Construction Method and Sequencing: Plan the construction methodology, including work sequences, critical paths, and key milestones. This helps in scheduling resources and ensuring efficient workflow once the contract is awarded.
(iii) Procurement Strategy: Develop strategies for sourcing materials, labor, and subcontractors. This includes identifying reliable suppliers and ensuring timely delivery to avoid delays.
(iv) Health, Safety, and Environmental Planning: Establish safety procedures, environmental compliance measures, and site regulations. Pre-contract planning ensures that safety and legal standards are considered before work begins.
(v) Project Team Organization: Assign roles and responsibilities to project managers, engineers, supervisors, and other key personnel. Effective organization ensures smooth coordination and communication during project execution.
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(19a)
Drafting of specification is the process of clearly describing the quality, standards, materials, workmanship, and methods required for executing a construction project, so that all parties understand exactly what is expected.
(19b)
(i) Cost estimation: This is used for preparing an accurate and detailed estimate of the total cost of a project by listing all measured items of work with their quantities and corresponding rates.
(ii) Tendering and contractor selection: This is used as a basis for inviting contractors to price the work, ensuring all bidders use the same quantities, which allows fair comparison and selection of the most competitive tender.
(iii) Financial control during construction: This is used for preparing interim valuations, monitoring expenditure, assessing variations, and ensuring the project remains within the approved budget.
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