Quantification and Costing Flashcards
Name some methods of measurement
- NRM2 (New Rules of Measurement)
- CESMM4 (Civil Engineering Standard Method of Measurement 4) – published by ICE
o For civil engineering projects - RMM2 (Network Rail’s Method of Measurement) – 3 volumes that are similar to NRM
o Provides supplementary information to CESMM4 - SMM7 (Standard Method of Measurement) – superseded by NRM
How do SMM7 and NRM2 differ?
NRM2 was brought into directly replace SMM7 to encourage best practice and reflect the changes in construction processes since SMM was created.
- elements being broken down further within NRM2 with 41 work sections against the 22 trade sections in SMM7
- clearer definitions of prime cost and provisional works and allowances for risks
- NRM2 is compatible with BIM
- allows scope to create composite descriptions of work items, thus removing the need for the contractor to price large numbers of low value tasks that add little to the overall pricing exercise
What is NRM?
A suite of documents written to provide a standard set of. measurement rules that are understandable by anyone involved in a construction project. It consists of three volumes.
What is NRM1?
Order of Cost Estimating and Cost Planning for Capital Building Works:
Provides a framework for preparation of pre-contract estimates and cost plans using an elemental breakdown to better see the advantages of clear and transparent cost data
What is NRM2?
Detailed Measurement for Building Works:
Provides detailed guidance on preparation of BoQs which can then be used to price upon using unit rates
What is NRM3?
Order of Cost Estimating and Cost Planning for Building Maintenance Works:
Used to consider the maintenance and running costs of the building to assist with life cycle costs and is structured to match NRM1.
What is the structure of NRM2?
Split into three sections:
1. Measurement in context with the RIBA Plan of Work and OGC Gateway Process
2. Outlines benefits of detailed measurement and purpose of NRM2
3. Tabulated rules for measurement
What are the advantages of using a bill of quantities based on NRM2?
- forms an identical basis for tender evaluation
- transparency
- provides a basis for post contract management:
– valuing variations
– final account preparation
– interim valuations
– auditing - familiar format.
What does building up a price from first principle mean?
To break down on a project into its constituent parts to identify costs for labour, plant and materials individually (+OH&P).
What are preliminaries?
Prelims address and communicate to the contractor items that are not directly related to any component, element, or work section
What is a preamble?
First section of a BoQ that assists the reader in understanding the unit price items and a high-level description of the method of measurement of those unit items
What is a prime cost sum?
An allowance included within the contract for supply of works or materials to be carried out by a nominated subcontractor or supplier, or a statutory authority. These costs may vary once the work has been carried out.
What is a provisional sum?
An allowance, usually estimated by a cost consultant, that is inserted into tender documents for a specific element of the works that is not yet defined in enough detail for tenderers to accurately price. They can be defined or undefined.
What is a defined provisional sum?
Described in sufficient detail that the contractor is expected to have made allowance for them in their programming, planning and pricing preliminaries.
e.g. Cost of installing a timber frame where the specific type of timber has not yet been specified and so its price is not known
What is an undefined provisional sum?
Less well described and so the contractor cannot be expected to make allowance for them. Therefore, the contractor may be entitled to EOTs or additional sums and the client undertakes the cost and scheduling risks.
e.g. unknown ground conditions
How does NEC recommend dealing with provisional sums?
Provisional sums are not included under the NEC.
What is the risk with provisional sums?
That the actual cost and time exceeds that allowed for in the provisional sum because the nature of the item changes between tender and instruction
How would you price a provisional sum?
Depends on the level of information available:
* use the drawings to ascertain any possible quantities & build up a rate based on the work involved.
* price any allowances for access.
* If a specialist piece of plant, possibly obtain a quotation for the item if there was sufficient information available.
* Include for overheads & profit
What’s the difference between a provisional sum and a prime cost?
Prime cost is limited to the cost of supplying the relevant item and does not include the cost of any work that relates to it (such as its installation).
What would happen if the employer employed a third party to undertake some provisional sum work?
Under many contracts including the JCT, provisional sum work forms part of the overall scope of works whether it is defined or undefined. As such, unless the contract provides otherwise, the Contractor may bring a claim for breach of contract and for loss of profits against the Employer.
What are dayworks?
NRM2: The method of valuing work on the basis of actual time spent by the contractor’s completing it, accounting for labour, the materials used and the plant employed
Can the PM /QS substitute their own estimate of the hours it should have taken to do the work if they believe the days recorded are too high?
No - as long as the daywork sheets have been signed and dated by properly authorised persons, the quantity surveyor has no power to do so
What is builder’s work in connection (BWIC)?
Builder’s work that is necessary as a result of other works e.g. as a result of the installation of M&E services, asbestos removal, cutting, reinstating, plastering etc. may be required. BWIC will usually be set as a % of the services cost
What are fixed charges?
Method related charges that do not vary with time e.g Service Connection Charges
