Question 1 In a construction project, where decision is made to acquire from outside the project, a procurement strategy should be identified. The objective of a procurement strategy is to determine the project delivery method, the type of legally binding agreement(s) and how the procurement will advance through procurement phases. In your own words, describe and compare the following project delivery methods, 1. Design and Build, 2. Turnkey, and 3. Private Finance Incentive Question 2 A company is planning in reducing production bottleneck and increase production capacity. The project team has proposed three proposals as tabulated. Employing the payback method, discuss and evaluate which proposal is more suitable to be accepted. Proposal 1 $18,000 5 Proposal 2 $20,000 8 Proposal 3 $20,000 7 Details Cost of materials Period of revenue increase (year) Est. saving in wage Add. cost to run machine Est. saving in waste Increase in revenue $20,000 $5,000 $4,000 $10,000 $25,000 $7,500 $6,000 $20,000 $28,000 $10,000 $8,000 $23,000 Few years later, the company decided to expand its operations. Two investment proposal are presented as follow. Both proposals start with initial investment of $20,000. Employing the present worth method, discuss and evaluate which is the better proposal. Proposal 1 ($) 2 ($) End of Year 1 1,000 3,000 End of Year 2 3,000 7,000 End of Year 3 5,000 6,000 End of Year 4 6,000 5,000 End of Year 5 6,000 3,000