Critical Path Method in Project Management
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Questions and Answers

What happens when two or more paths become critical as the original critical path becomes shorter?

  • The project duration increases
  • The indirect costs of the project decrease
  • The next improvement will require simultaneous shortening of two or more paths (correct)
  • The project manager is replaced

    • What is the condition for crashing a joint activity to be more economical?

  • If the crashing cost for a joint activity is less than the sum of crashing one activity on each separate path (correct)
  • If the crashing cost for a joint activity is more than the sum of crashing one activity on each separate path
  • If the project duration is more than 26 days
  • If the indirect costs of the project are more than P10,000 per week

    • What is the duration of path 1-2-5-6 or A-B-F?

  • 25 days
  • 23 days
  • 26 days
  • 24 days (correct)

    • What is the duration of path 1-3-4-5-6 or C-D-E-F?

    <p>26 days</p> Signup and view all the answers

    What is the indirect cost of the project per week?

    <p>P10,000</p> Signup and view all the answers

    What is the crashing cost of activity F?

    <p>24-1 = 23 days</p> Signup and view all the answers

    What is the main goal of developing an optimum time cost plan?

    <p>To optimize the project schedule and cost</p> Signup and view all the answers

    What is the first task in the example given?

    <p>Develop an optimum time cost plan</p> Signup and view all the answers

    What is the second task in the example given?

    <p>Determine an optimum crashing plan</p> Signup and view all the answers

    Why is it important to consider the indirect costs of the project?

    <p>Because it affects the project cost</p> Signup and view all the answers

    What is the comprehensive estimate of costs associated with completing a project?

    <p>Cost plan</p> Signup and view all the answers

    When does the BAC declare a failure of bidding?

    <p>When no bids are received</p> Signup and view all the answers

    What is the purpose of the cost plan?

    <p>To ensure the project stays within budget</p> Signup and view all the answers

    What happens when a failure of bidding is declared?

    <p>The BAC conducts a mandatory review</p> Signup and view all the answers

    What is one of the reasons for reducing project construction time?

    <p>To avoid penalties for not completing the project on time</p> Signup and view all the answers

    What is the effect of injecting additional resources into a project?

    <p>The project construction time is reduced</p> Signup and view all the answers

    What is the purpose of the reservation clause?

    <p>To avoid penalties for not completing the project on time</p> Signup and view all the answers

    What happens when the BAC conducts a mandatory review?

    <p>The BAC revises terms, conditions, and specifications</p> Signup and view all the answers

    What is the result of a failure of bidding?

    <p>The BAC conducts a mandatory review</p> Signup and view all the answers

    Why is it necessary to reduce project construction time?

    <p>To avoid penalties for not completing the project on time</p> Signup and view all the answers

    Study Notes

    Bidding Documents and Fees

    • Bidding documents may come with a fee, set by the Procurement Entity (PE) based on certain rates.
    • The fee may be refunded under certain conditions, as stated in Section 41 (Reservation Clause).

    Pre-Bid Conference

    • Purpose: to discuss, clarify, and explain bidding documents.
    • The conference allows bidders to ask questions and seek clarification on bidding requirements.
    • Bidders who submitted bids before the issuance of Supplemental/Bid Bulletin must be informed in writing and allowed to modify or withdraw their bids.

    Submission of Receipts of Bids

    • Bids must be submitted on or before the deadline.
    • Late submissions will not be accepted.
    • The BAC Secretariat will notify bidders in writing within 7 CDs from the date of bid opening.

    Eligibility and Technical Documents

    • Original eligibility and technical documents must be enclosed in one sealed envelope marked "ORIGINAL - TECHNICAL COMPONENT".
    • Original financial component must be in another sealed envelope marked "ORIGINAL FINANCIAL COMPONENT".
    • Copies of documents, if requested, should be marked accordingly.

    Post-Disqualification

    • In case of post-disqualification of the Lowest Calculated Bid (LCB), the BAC shall be given a fresh period to conduct qualification of the next LCB.
    • The Bidder with the Lowest Calculated Bid will be notified, and within 5 CDs, must submit required documents, including tax returns and licenses.

    Contract Signing

    • The Approving Higher Authority has 20 CDs to approve or disapprove the contract.
    • The Concerned Board has 30 CDs to approve or disapprove the contract.

    Issuance of Notice to Proceed

    • The PE shall issue the Notice to Proceed (NTP) together with a copy of the approved contract to the successful bidder within 7 CDs from the date of approval.
    • All notices shall be effective only upon receipt by the successful bidder.

    Award of Contracts

    • The BAC shall recommend award of contract to the Lowest Calculated and Responsive Bid (LCRB) at the submitted price or calculated price, whichever is lower.
    • Award of contract is subject to certain conditions, including submission of joint venture agreements, PhilGEPS registration, and posting of performance security.

    Notification and Award of Contract

    • The BAC shall notify all other bidders in writing of its recommendation to award the contract to the winning bidder within 3 CD from the issuance of the resolution.
    • The award of contract is subject to several conditions, including:
    • Submission of JVA (if JV)
    • PhilGEPS Registration Number (if procurement by a Philippine Foreign Office or Post)
    • PCAB License (if foreign-funded and stated in treaty or international agreement)
    • Posting of Performance Security and Warranty Security
    • Signing of Contract upon compliance with all documentary requirements
    • Approvals by higher authority (if required)
    • Compliance with the PPMP and APP
    • Availability of appropriations
    • Completeness and correctness of the Bidding Documents
    • Completion of detailed engineering according to the prescribed standards (for Infrastructure Projects)
    • Availability of right-of-way site or location, and possession of affected properties

    Avoiding Suspicion and Anomalies

    • The BAC should avoid suspicion of favoritism and anomalies by ensuring correctness and completeness of the Bidding Documents.

    Scope of Work and Technical Specifications

    • The DPWH Specifications Standard for Public Works and Highways ("Blue Book") shall be the main basis for the standards and codes to be met by the goods and materials to be furnished and work performed or tested for the Contract.

    Failure of Bidding

    • The BAC declares failure of bidding when:
    • No bids are received
    • Bids were received but no one was eligible
    • All bids failed to post-qualify
    • Refusal of the post-qualified bidder to accept the award without justifiable cause

    Effects of Failure of Bidding

    • The BAC shall conduct a mandatory review and revise terms, conditions, specifications, and adjust ABC (subject to required approvals)
    • Re-bidding or re-advertisement may be necessary

    Reducing Time and Cost

    • The activity time for construction projects can be reduced by injecting additional resources
    • Factors influencing the desire to shorten project construction time include:
    • Avoiding penalties for not completing the project on time

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    Description

    This quiz is about the critical path method in project management, where multiple paths can become critical, and improving the project timeline involves shortening multiple paths simultaneously.

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