Quantification and Costing

Question 1

What Rules of Measurement do you know of?

Answer 1

• NRM 1: Order of cost estimating and cost planning for capital building works
• NRM 2: Detailed measurement for building works
• NRM 3: Order of cost estimating and cost planning for building maintenance works
• Highways method of measurement
• CESMM

Question 2

Why were the New Rules of Measurement introduced?

Answer 2

Previous Standard Method of Measurements. (SMM7) was purely designed for the production of bill of quantities for tender purposes.

This resulted in a lack of guidance and uniformity around preparing cost estimates and cost plans when using SMM7.

NRM was introduced to provide a common and consistent basis for the production of order of cost estimates and cost plans and to give employers more confidence around their inclusions

Question 3

What is the structure of the NRM 1?

Answer 3

Part 1: General introduction explaining the purpose of the document and how it should be used

Part 2: Measurement rules for the production of order of cost estimates

Part 3: Measurement rules for the production of elemental cost plans

Part 4: Tabulated rules of measurement for elemental cost planning

Question 4

Why should you use the New Rules of Measurement?

Answer 4

1. The NRM provides a common and consistent basis for the production of cost estimates and cost plans and this add confidence to the clients
2. In the event that a QS is pursued for negligence, the use of NRM would provide a means of defence as it represents best practise

Question 5

What is the purpose of the Code of Measuring Practice?

Answer 5

The code of Measuring Practise provides precise defintions to permit the accurate and consistent measurement of buildings

Question 6

What would you expect the percentage of NIA to GIA to be?

Answer 6

The percentage depends on the type of project being undertaken for example a school or office.

Question 7

What is the purpose of a BoQ?

Answer 7

The purpose of a BoQ is to provide the estimator with an accurate picture of the scope of works and to provide a common and consistent basis for pricing

Furthermore a BoQ allows a tender analysis to be carried out by comparing each item against each other

Question 8

How would you prepare a BoQ?

Answer 8

1. I would meet witht he design team to establish when the necessary information will be available, it is important to ensure the information provided is full and final to avoid abortive
2. I would then look ti compile all information necessary from the Design Team, including:
   
   1. drawings, specifications, schedules
3. Following receipt of the information I would check if the information is sufficient to allow the BoQ to be compiled. This will depend on the form of contract
4. I would discuss with the client the measuement method to be adopted
5. Prior to commencment of measurement and taking off quantities, I would conisder the size of the Project and break the works down into sections and areas:
   
   1. Substructures
   2. Superstructures
   3. External Works
6. I would then commence take-off work from the substructure upwards
7. When measuring is complete I would look to address the general items
8. Following

Question 9

How would you structure a BoQ?

Answer 9

In accordance with NRM I would include the following:

Prelims

Facilitating works

Substructure

Internal finishes

Fittings, furnishing and equipment

Question 10

What information is required to measure preliminaries?

Answer 10

Contract duration

Location

Size of project

Question 11

How would you describe the preliminaries section in a Bill of Quantities?

Answer 11

The preliminaries detail items of work that are required to enable the construction but are not associated within the permanent works items

This would include things such as:

Site setup

Management and supervision

Insurances

Question 12

If it was found that a Bill rate was blatantly wrong for example £100 was included as a rate instead of £1, how would this be resolved?

Answer 12

The works would be valued in accordance with the agreed rate contained within the contract

If identified within the tender document prior to the contract being agreed then trhe rate could be amended in accordance witht he tendering rules, but otherwise both parties would have to stand by the rate

Question 13

How do you evaluate a variation which is based on a BQ item which contains an error?

Answer 13

Assumming the same nature & conditions are applicable, the variation would be based on the BoQ rate within the contract

Unless both parties agreed to amend the rate to one that is fair and reasonable

Question 14

What is a Provisional Sum?

Answer 14

A Provisional Sum is an allowance included within the BQ for works to be carried out where the extent and design of the work is not yet know meaning the cost cannot be established at the time of agreeing the contract sum

Question 15

What is the difference between defined and undefined provisional sums?

Answer 15

• A defined provisional sum is one that relates to works that cannot be accurately measured, but there is sufficient information about the works including their nature, method, location, quantity, limitations to allow planning, programming & pricing of preliminaries to take place. The contractor would therefore only be entitled to claim for any increase in the cost of the physical works.
• Where there is insufficient information, the works are classed under an undefined provisional sum entitling the contractor to costs for prelims and an extension to the programme.

Question 16

How did you check that the items measured for the BoQ were accurate?

Answer 16

I would utilise the junior team to carry out spot checks on the quantities to check they’re accurate

Question 17

What is a Preamble?

Answer 17

A preamble is an explanation of a document that is commonly found in contracts, specifications and bill of quantities

It helps with the interpretation of the document

Question 18

Is the quantity for excavation similar as disposal?

Answer 18

Yes providing there is no backfilling required and assuming the form of contract and method of
measurement does not allow for bulking, shrinkage or waste of earthworks

Question 19

What is the floor area method?

Answer 19

Floor area method

Question 20

What is the functional unit method?

Answer 20

A functional unit method will take a prime use of a building for example a school and number of desks and multiply the number of desks by a rate to establish a high level cost estimate

Question 21

What is the elemental unit method?

Answer 21

This method is the most detailed method of setting cost limits for each element of the project and effectively it takes an element such as a window and multiplies it by a rate and then this would contribute towards the total cost of the project

Question 22

What data sources are you aware of?

Answer 22

In house data from previous tenders
BCIS
SPONS

Question 23

What is SPONS?

Answer 23

SPONS is a series of 4 pricing books that helps you calculate and check costs of projects

Question 24

What is BCIS?

Answer 24

Building cost information service

Question 25

Which source of data is your first resort?

Answer 25

In house data for rates from project of similar nature

Question 26

What is an activity schedule?

Answer 26

In essence, it relates to a programme where each activity is allocated a price and interim payments are made against completion of each activity

Question 27

What is a BoQ?

Answer 27

A bill of quantities (sometimes referred to as ‘BoQ’ or ‘BQ’) is a document generally prepared by a cost consultant that provides project-specific measured quantities of the items identified in drawings and specifications for a built asset such as a building.

Question 28

On P Programme why did you produce an activity schedule?

Question 29

On P Programme how did you ensure the activity schedule reflects what your client required?

Answer 29

By understanding the activities required to be undertaken, such as number of site visits, prelims, liaising with the delivery team

Question 30

On CMP what kind of rates did you collect?

Answer 30

Various different rates, such as labour of site managers and PMs, windows, scaffolding weekly cost.

Question 31

On CMP how would you use NRM to measure plastering a ceiling?

Answer 31

NRM 2 work section 28: floor, wall and ceiling finishes.

Question 32

On CMP how would you use NRM to measure UPVC windows?

Answer 32

NRM 2 Work section 23 as a unit number.

Question 33

On CMP how would you use NRM to measure scaffolding works?

Answer 33

NRM 2 states that scaffolding is part of prelims and is a fixed charge on a weekly basis

However to give myself an estimate I would look at an average square meter rate and multiply it by the size of the building.

Question 34

You mentioned tender normalisation. Can you tell me how you about using that process and it helped you provide advice?

Answer 34

I was put in a fortunate position to carry out a tender comparison on a competitive framework

Question 35

You mentioned using average quantity using tender normalisation, what else could you use?

Answer 35

The highest quantity also

Question 36

How did you use tender normalisation to negotiate contract sums?

Answer 36

Tender normalisation put me in a fortunate position to be able to carry out like for like comparisons against each item and understand quantities. Where some contractors quoted excessively for labour for example compared other contractors, this gave me a better understanding of labour required and so put me in a position to reduce that element

Question 37

On CMP why did you advise on using BoQ over an activity schedule?

Answer 37

This was because the work on site was measureable and could bq quantified against rates. My client also wanted to collect rates

Question 38

When would you use NRM 1?

Answer 38

Order of cost estimating and cost planning for capital building works

Question 38

How do you quantify risk under NRM?

Question 39

When would you use NRM 2?

Answer 39

Detailed measurement for building works

Question 40

When would you use NRM 3?

Answer 40

Order of cost estimating and cost planning for building maintenance works