Quantification and Costing

Question 1

What are the benefits of using a Bill of Quantities for construction work?

Answer 1

A bill of quantities:
- provides an accurate assessment of required materials, labour and equipment, allowing a robust basis of cost estimation
- ensures tenders are directly comparable
- allows for easy assessment of change

Question 2

Which non-works costs does the NRM provide guidance for?

Answer 2

Preliminaries
overheads and profit
risk allowances
inflation.

Question 3

When would you use NRM 1?

Answer 3

Order of cost estimating and cost planning for capital building works

Question 4

When would you use NRM 2?

Answer 4

Detailed measurement for building works

Question 5

When would you use NRM 3?

Answer 5

Order of cost estimating and cost planning for building maintenance works

Question 6

What stages would you undertake an order of cost estimate?

Answer 6

Stages 0 and 1, Stage 2 would be a cost plan.

Question 7

What is the difference between Bill of Quantities, Contract Sum Analysis & Activity Schedules?

Answer 7

BoQs - To provide a detailed, measurable list of all the work required for a project, used for tendering, cost control, and valuing variations.

CSA - To provide a breakdown of the contractor’s tender price, allowing for analysis and comparison of tenders, and to form a basis for payment calculations. Particularly useful for D&B projects where full design is not available at tender.

Activity Schedule - NEC Term - To list project activities as shown on the programme with a lump-sum price for each, simplifying the administration of the interim payment process

Question 8

What are the methods for valuing a variation?

Answer 8

contract rates for works the same
Pro rata rates for similar works
Fair valuation where there is no similar work in contract sum (built up from labour and materials, or a quote/benchmark/price book)
dayworks as a last resort:
- Prime cost plus agreed OHP
- Agreed all in labour rates

Question 9

What do you not include within a contractors valuation?

Answer 9

VAT
Works not yet completed
Materials that are not protected from weather or are on site prematurely
Works that are not completed in accordance with the contract, including unagreed variations
Retention to be with held

Question 10

What items are not subject to retention in valuations?

Answer 10

Loss and Expense
Insurance premiums
fluctuation provisions
contractor suspension costs as a result of non payment by employer

Question 11

Artizan Court - Give me a take off list for the decking and soffit works.

Answer 11

Decking area (decking material, underlay, waterproofing)
Railings measure (balustrade, handrail)
Edge measure (edge treatment, cladding)
Soffit area (soffit materials)

Question 12

· Artizan Court - You mentioned an estimation of additional decking that was lower than the contractors. Why was yours lower?

Answer 12

I made my assessment based on rates and benchmarks available to me at the time. They did not provide such back up so it was not clear why mine was lower.

Question 13

· Artizan Court - Did you challenge the high decking cost?

Answer 13

I did challenge the high cost but the contractor was adamant they would not complete the works at a lower cost so I had to inform the employer that it would be more expensive to bring in another contractor.

The change works were significant in quantity, cost and scope of works which meant the contractor would have had grounds for reasonable objection to the instruction.

Question 14

Artizan Court - What additional costs would be required if a new contractor was brought in to carry out the decking works.

Answer 14

Site preliminaries (cabins and welfare etc.)
Insurances
scaffolding
tendering costs

Question 15

Elleray Hall - What are the risks of using rates taken from historical data?

Answer 15

Outdated costs with different conditions due to changes in the economy, laws and regulations
Over reliance on historical data could lead to inaccurate predications about the future
Don’t know original origin of the rates
Indices adjustments are a forecast only

Question 16

Elleray Hall - How did you establish which tenderer to recommend? Explain the tasks and actions you carried out to provide your recommendation.

Answer 16

Tender Report:
- Arithmetical check
- Reviewed the tenders and added allowances for any missing costs
- Reviewed preliminaries
- Reviewed OHP
- Reviewed provisional sums
- Produced a quantitive score which was combined with the EA’s qualitive score to provide the recommendation

Question 17

What are the options for dealing with arithmetical errors in tenders.

Answer 17

The JCT Tendering practice note 2017 dictates the course of action if any arithmetical errors exist. The method of dealing with errors should have been outlined in the tender documents.

The options are either to allow the contractors either to:
Option 1: stand by or withdraw
Option 2: stand by their price or amending it to correct genuine errors.

Question 18

Elleray Hall - What were the headings in your tender report?

Answer 18

Tender process and methodology
Arithmetical checks
Adjusted tender sums
preliminaries
professional fees
overheads and profit
tender scoring
value engineering

Question 19

Elleray Hall - What were the tender report next steps required to agree a contract sum?

Answer 19

Client to confirm acceptance our contractor recommendation
Inform tenderers of the result
Firm up remaining items such as tender adjustments and provisional sums
Agree contract sum

Question 20

Elleray Hall - Why did you need to negotiate costs following the tender process?

Answer 20

There were some provisional sums entered in the contractors tender return which we wanted to firm up.

Question 21

Leopold Buildings - Advise me what you learnt from carrying out the assessment of loss and expense?

Answer 21

I learnt that:
-L&E must be for direct costs relating to delays, not indirect costs
- the JCT contracts include two conditions precedent for L&E such as the contractor making an application promptly
and that the contractor is required on request to submit supporting information for the QS to ascertain loss and expense

Question 22

Leopold Buildings - What was the Relevant Event stated in the Extension of Time?

Answer 22

There was 2

Any impediment, prevention or default by the Employer - the employers residents were not allowing access to the apartments at the required times so this was viewed by the CA as prevention by the Employer.

And statutory body works

Question 23

Leopold Buildings - What were the heads of claims included in the Loss and Expense claim?

Answer 23

Potential Loss and Expense heads of claim must be direct loss and expense and can include:
-preliminaries prolongation costs
-preliminaries thickening costs
-loss of profit
-overheads
-acceleration costs

Question 24

Name 3 Relevant Events

Answer 24

• Changes/Variations
• Postponement of works
• Expenditure of prov sums included in ER’s
• Impediment, prevention or default of employer
• Exceptionally adverse weather conditions
• Deferment of possession
• statutory body works
• Specified peril
• force majeure
• epidemic

Question 25

Name 3 Relevant Matters

Answer 25

Change/Variation Postponement of work impediment, prevention or default by the Employer Epidemic (as long as stated as applying in the contract particulars)

Question 26

Why would you not share a cost report with the contractor?

Answer 26

The cost report is intended for the employer only. This is because the cost report is confidential and information contained within may affect the contractor's assessment of true costs for the final account. Client budget and remaining contingency, is an example of information not to be shared with the contractor.

Question 27

What is an activity schedule?

Answer 27

Activity schedule is an NEC document that lists out the works as shown in the programme. This aids simple valuation assessments as activities can be valued in full once completed.

Question 28

Difference between activity schedule and BoQs?

Answer 28

Activity schedule is generally for NEC and reflects the programme list of works. BoQ are more detailed with all quants and rates listed. They are often used for traditional contracts where the works are suitably design prior to tender and contract formation.

Question 29

Give take off list for the balcony and soffit works?

Answer 29

Decking area (decking material, underlay, waterproofing) Railings measure (balustrade, handrail) Edge measure (edge treatment, cladding) Soffit area (soffit materials)

Question 30

What H&S checks need to be carried out on scaffolding? Who is responsible for checks?

Answer 30

It is the scaffold users/hirers responsibility to ensure that all scaffolding has been inspected as follows: -following installation/before first use -at an interval of no more than every 7 days thereafter -following any circumstances liable to jeopardise the safety of the installation e.g. high winds.

Question 31

How detailed was the CSA on Elleray Hall?

Answer 31

The detail was determined by the Employer's Requirements available. As it was D&B, the full detail was not available. The frame for example would have been split out in to each type of steel member but a single item was included to cover all fixtures and fittings for the steel frame.

Question 32

What is the conversion rate from m2 to ft2

Answer 32

1m² = 10.76ft²

Question 33

Where are the NIA, GIA and GEA defined?

Answer 33

Code of measuring practice - RICS Guidance Note https://www.rics.org/content/dam/ricsglobal/documents/standards/May_2015_Code_Of_Measuring_Practice_6th_Edition.pdf

Question 34

What is Gross Internal Area?

Answer 34

Gross Internal Area is the area of a building measured to the internal face of the perimeter walls at each floor level Excludes voids

Question 35

What is Gross External Area?

Answer 35

Gross External Area is the area of a building measured externally at each floor level. including thickness of external wall and external projections. Excludes balconies and voids

Question 36

What is Net Internal Area?

Answer 36

Net Internal Area is the usable area within a building measured to the internal face of the perimeter walls at each floor level. Excludes common areas such as entrance halls, landings, toilets, lifts, plant rooms. Excludes columns and any space that is less than 25cm face to face.

Question 37

What is ICMS?

Answer 37

International Cost Management Standard ICMS: Global Consistency in Presenting Construction Life Cycle Costs and Carbon Emissions ICMS is an international standard that sets out how to classify, define, measure, record, analyse, present and compare construction project life cycle costs and carbon emissions. It is designed to accommodate users who have an interest only in construction costs as well as those who deal with life cycle costs and carbon emissions

Question 38

Are there any other measurement standards to NRM?

Answer 38

International Property Measurement Standards

Question 39

What is the purpose of the International Property Measurement Standards?

Answer 39

The IPMS aim to establish a consistent, transparent and internationally accepted way to measure property.

Question 40

For Artizan Court, you mentioned you reviewed the costs for decking and soffit. Can you tell me how much decking costs?

Answer 40

I would need more information to be able to provide a rate. Once I had that I would look up costs in price books, or cost data that we held in our company for this information. If I had to say a figure, it would be around £80 supply and install.

Question 41

How do different pricing documents change the time, risk and quality parameters

Answer 41

Bill of Quants - Easier to value changes and compare tenders. Missing items will lead to additional client cost, assuming it is a with quantities contract. CSA - Cost risk with contractor as items not listed may still be included in the scope. Can be harder to agree variation costs without rates. Schedule of Activities - Simplified valuation process as document aligns with contract programme

Question 42

For the Loss & Expense incurred for LB and the advice given to your client, what factors did you consider to come up with that decision?

Answer 42

I considered: - The length of the extension of time awarded - Whether the Relevant Event was also a Relevant Matter. - Whether the loss and expense claimed by the contractor was a direct result of the relevant matter.

Question 43

What are the components to be considered when agreeing a contract sum ?

Answer 43

What kind of contract is it? (Traditional or D&B) Pricing mechanism? (Lump sum, with quantities, cost plus?) Have all required works been priced by the contractor? Any excluded items? Are there any provisional sums included, are they defined or undefined? Any contingency allowances? Prelims Who has design responsibility?

Question 44

What is the principle of valuing a variation/changes?

Answer 44

I would value a change if it had been or was likely to be instructed as a change I would value additional works as well as omissions to the works I would use contract rates if available, pro rata them if required or undertake a reasonable assessment. Dayworks would be last resort.

Question 45

What have you recently measured?

Answer 45

Foundation for cost plan from drawings on Cost X

Question 46

Give me a take off list of that item that you recently measured?

Answer 46

Excavation, blinding, form work, concrete, reinforcement, back fill

Question 47

What is a JCT Schedule 2 quotation? Can the contractor refuse?

Answer 47

It is a Lump sum quotation that can be requested from the contractor that includes: Construction cost Prelims OHP Delay time loss and expense Cost to prepare quote Contractor can refuse if there are not enough design details If works do not go ahead, contractor can still claim cost to prepare quote.