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Chapter 18
Business Aspects Project Management
Review Questions:
1. What are the primary responsibilities of the business development staff of a
construction company?
2. What is the project team’s role in winning a construction contract awarded using
a negotiated procurement process?
3. Why do general contractors typically require prospective subcontractors to
submit current financial statements during the prequalification process?
4. Why is a liquidity assessment important when analyzing a prospective
subcontractor’s balance sheet?
5. What is the process for determining the monthly cash flow requirements on a
construction project?
6. What is a job description, and what is it used for?
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7. What are job specifications, and what are they used for?
8. What type of written documentation would you use when selecting applicants for
interviews?
9. What are performance standards, and what are they used for?
10. Who prepares the performance appraisal and what is it used for?
11. How would you prepare an individual development plan for a subordinate
employee?
1. Determine the current ratio, return on assets ratio, and the debt–to-equity ratio
for Eastside Excavating using the financial statements shown in Figures 18.2 and
18.3. What is your assessment of the financial condition of the company?