BOT Contract and Revenue Generation

What is the primary requirement for a project to be viable in a BOT contract?

To generate revenue to payback debts (correct)
To have a complex contractual structure
To have a long concession period
To have a defect liability period

What is the main purpose of the operation period in a BOT project?

To verify the quality of the output and train the employer's personnel (correct)
To decrease operating and maintenance expenditures
To transfer the facility to the employer
To provide training to the employer's personnel

Why is a defect liability period included in some BOT contracts?

To minimize owners' financial resources
To ensure the quality of the facility during transfer (correct)
To decrease operating and maintenance expenditures
To increase the concession period

What is one of the advantages of the BOT delivery system?

It minimizes owners' financial resources (C) Signup and view all the answers

Why do operators in a BOT project may decrease operating and maintenance expenditures towards the end of the concession period?

To save costs (B) Signup and view all the answers

What is a necessary step in a BOT project according to the text?

To package projects and define them clearly (C) Signup and view all the answers

What is the main reason for the failure of most BOT projects?

Engagement in very large projects (D) Signup and view all the answers

What is the primary benefit of using a private entity in a BOT project?

More efficient management of the facility (A) Signup and view all the answers

What is the role of a construction management consultancy firm in a delivery system?

To coordinate all activities from concept inception to facility operation (D) Signup and view all the answers

What is the main difference between Construction Management Consultancy and Facility Management Consultancy?

The scope of services provided (C) Signup and view all the answers

What is the purpose of using a consortium of contractors in BOT projects?

To carry out such large-scale projects (A) Signup and view all the answers

What is the significance of FIDIC Yellow Book in BOT projects?

It outlines the standard conditions of contract for BOT projects (B) Signup and view all the answers

What should be done when addenda are issued within five days of bid opening?

The bid date should be extended accordingly (D) Signup and view all the answers

What is the correct order of priority of the contractual documents?

1st Agreement, 2nd Letter of Acceptance, 3rd Contractor's Bid (A) Signup and view all the answers

What is typically included in the contract document?

Forms, formats, and schedules, and other documents (D) Signup and view all the answers

What is the typical composition of a construction agreement?

Conditions, drawing, specifications, and addenda (A) Signup and view all the answers

What is typically included in the articles of the agreement?

A short introductory paragraph, scope of the work, and others (C) Signup and view all the answers

What is the correct order of the documents in the contract?

1st Agreement, 2nd Letter of Acceptance, 3rd Contractor's Bid (D) Signup and view all the answers

What is the basis of payment to the contractor in a unit price contract?

Detailed measurements of work actually done (C) Signup and view all the answers

Why are unit price contracts commonly used for heavy/highway work?

Because the exact quantity of materials cannot be calculated beforehand (B) Signup and view all the answers

What happens when the actual quantity of an item varies from the estimated quantity by more than 15 or 20%?

The unit price is renegotiated (D) Signup and view all the answers

What is the purpose of the Bill of Quantity (BOQ) in a unit price contract?

To show the items present for the construction work with specification and estimated quantity (D) Signup and view all the answers

Who is responsible for estimating the quantities of work in a unit price contract?

The architect/engineer (C) Signup and view all the answers

What is the characteristic of a project that makes it suitable for a unit price contract?

The project can be divided into various items and quantities (B) Signup and view all the answers

What is the primary outcome of the Contract Formulation process?

A signed contract document that serves as the basis for Contract Administration (D) Signup and view all the answers

What is included in a Construction Contract Document?

Signed and Sealed Form of Contract Agreement, General and Particular Conditions of Contract, Technical Specification, Methods of Measurement, Priced Bill of Quantities, Drawings, and Forms, Formats and Schedules (B) Signup and view all the answers

What is the purpose of Contract Administration?

To ensure the successful completion of the project with substantial compliance of the Terms of the Contract (D) Signup and view all the answers

What is the outcome of the Negotiation process in Contract Formulation?

A contract agreement that forms the basis for contractual agreements (A) Signup and view all the answers

What is the role of the Project Owners in the Negotiation process?

To deal with the recommended winner of the tender on the requirements of the tender (D) Signup and view all the answers

What is the significance of the Contract Agreement in Contract Formulation?

It forms the basis for contractual agreements (A) Signup and view all the answers