Viraj Projects Interview Questions and Answers

Escalation is the increase in cost or price of goods or services over time due to various factors.

• Escalation is significant in construction projects where the cost of materials and labor can increase over time.

• It is important to factor in escalation when creating project budgets and timelines.

• The formula for escalation is: Escalated Cost = Base Cost x (1 + Escalation Rate)^Number of Years

• For example, if the base cost o...read more

Penalty is a punishment for breach of contract while liquidity damages compensate for financial loss due to breach.

• Penalty is a fixed amount agreed upon in the contract as a punishment for breach of contract.

• Liquidity damages compensate for the actual financial loss suffered due to breach of contract.

• Penalty is usually higher than the actual loss suffered while liquidity damages are calculated based on the actual loss.

• ...read more

Basic Price variation refers to the change in the cost of materials or labor used in a project.

• Basic Price variation is a common clause in construction contracts.

• It allows for adjustments to the contract price based on changes in the cost of materials or labor.

• The variation can be positive or negative, depending on whether the cost has increased or decreased.

• The variation is usually calculated using an agreed-upon form...read more

Yes, basic price variation is beneficial for a contract.

• Basic price variation allows for adjustments to be made to the contract price based on changes in market conditions or material costs.

• This helps to ensure that the contractor is not unfairly burdened with unexpected costs and can maintain profitability.

• It also provides a level of transparency and accountability in the contract, as both parties are aware of the pot...read more

There are various types of contracts in construction projects. Each has its own advantages and drawbacks.

• Types of contracts include lump sum, cost-plus, time and material, and unit price contracts.

• Lump sum contracts provide a fixed price for the entire project, but can lead to disputes over changes.

• Cost-plus contracts reimburse the contractor for all costs plus a fee, but can lead to inflated costs.

• Time and material co...read more