Quantification & Costing Flashcards
(192 cards)
1
Q
Are you aware of the ICMS?
A
Are you aware of the ICMS?
a. International construction measurement standards – Global consistency in presenting construction
costs
b. July 2017 – 1st edition
c. Aim to provide global consistency in classifying, defining, measuring, analysing and presenting costs
d. A cost clarification system
e. First edition focuses on capital costs
f. Future issues may focus on maintenance
g. High level benchmarking and reporting framework for international cost classification, reporting and
comparison
h. What is it trying to solve?
i. Currently a lack of common language and framework
ii. Benchmarking standard
i. What are the benefits? Allows:
i. Construction costs to be consistently and transparently benchmarked
ii. The causes of differences in costs between projects to be identified
iii. More informed decision making about the design and location of construction projects
iv. Data to be used with confidence for construction financing and investment, decision making
and related purposes
2
Q
What is IPMS?
A
a. International property measurements standards – driving consistency, improving confidence in global real estate b. Offices: i. Last revision issued November 2014 ii. Compulsory since c. Residential i. Second draft issued in September 2016 d. Retail i. Consultation to begin in 2018 e. Industrial i. Been through 2 consultations, results due soon
3
Q
4) How does IPMS relate to the old measurement standard?
A
a. For offices:
i. IPMS1:
1. Generally closest to GEA
2. Key difference is that balconies are included in IPMS but stated separately
ii. IPMS2:
1. Closest to GIA
2. Balconies again stated separately
iii. IPMS3:
1. Closest to NIA
2. Includes areas taken as:
a. Columns
b. Piers
c. Window reveals
d. Lift lobbies
e. Areas of headroom less than 1.5m
3. All the above included but stated separately
4
Q
5) Can you convert the new into old?
A
a. On the RICS website there is a converter from IPMS to RICS Code of Measurement Practice 6th
Edition
5
Q
6) What is NRM?
A
a. New rules of measurement
b. NRM 1 – Order of cost estimate and cost planning for capital building works
c. NRM 2 – Detailed measurement for building works
d. NRM 3 – order of cost estimating and cost planning for building maintenance works
6
Q
What is the difference between CAT A and CAT B fit out?
A
a. CAT A:
i. Basic landlord fit out
ii. Socks and MEP
iii. Raised access floor
iv. Suspended ceiling
v. “blank canvas”
b. CAT B:
i. More tenant specific
ii. Partitions and doors
iii. Floor finishes
iv. AV
v. IT
vi. Branding
7
Q
What is the difference between shell and core and fit out?
A
b. Shell and core:
i. Landlord and core areas
ii. Structure, roof, receptions etc.
c. Fit out:
i. Resi – within apartments and amenity
d. Contractors split differently into a package by package basis – example is that the drylining contractor
doing the cores will also do the apartment areas
8
Q
How do you take quantities off a BIM model?
A
a. Extract quantities in Cost X
b. Can extract quantities using a pre completed template, single click to extract into dimension groups
c. Important to check the extraction – quantities are only as good as the inputs.
d. Sometimes columns for example can be inside of each other – SENSE CHECK
9
Q
Give an example of a variation.
A
a. Project in Greenwich:
i. Apartment change due to a single purchaser buying two adjoining apartments
ii. Cost to demolish party wall in places, make good, abortive works, new lining and connect
MEP etc.
iii. £40k uplift as the ceiling had to be removed
iv. In order to value:
1. Measured abortive
2. Measured new
b. Media room on project A:
i. Late addition to the contract
ii. Measured the drawings and priced using contract rates for the works
10
Q
How do you cost a module?
A
a. Volumetric:
i. At an early stage, £/sq.ft cost
ii. Similar to as you would a building, start with the frame of the unit
iii. Glulam or CLT beams and columns
iv. Frame £50/sq.ft
v. MEP £32/sq.ft
vi. Fully electrical MEP system
vii. SVP runs outside the unit
11
Q
Is IPMS mandatory?
A
a. Yes, when implemented subject to planning conditions and client requirements
12
Q
Why is the COMP changing?
A
As property markets become more interconnected, globally, the need for consistence in the standards adopted by professionals becomes even greater. RICS wants to be at the forefront of this evolution to global standards and therefore has updated the COMP to make it relevant across the world.
13
Q
What are the benefits of having IPSM?
A
Confidence and Consistency in property measurement.
- Provide a mechanism for benchmarking property measurement information across international markets
- Provide a common and transportable method for property practitioners to use
- Enable international occupiers investors and owners
14
Q
Cost Models (Order of Cost Estimate)
A
- Initial estimate as part of feasibility estimate
- Stages 0
- May be no design done, outline brief only
15
Q
Order of Cost Estimate
A
This is the determination of possible cost of a building(s) early in design stage in relation to the employer’s fundamental requirements. This takes place prior to preparation of a full set of working drawings or bills of quantities and forms the initial build-up to the cost planning process.
16
Q
Star Rates / Pro-Rata Rates
A
Used to price work where the unit rates in the contract cannot fairly represent the work done exactly. Usually, contract unit rates that are similar to the work done are used in negotiations to determine the Star Rate.
E.g. cable originally in a 1m trench, now changed to 2m trench. Can assess the original contract rate and change to increase labour etc.
17
Q
Why might variations arise?
A
a. change to spec etc
b. discrepancy between contract documents
c. discrepancy with statutory requirements
d. errors and omissions
e. deficiency in employer’s requirements
18
Q
What form must architects instructions take?
A
- They must be in writing
- The QS cannot make additions to the contract sum for AIs that are not written
19
Q
What about oral instructions?
A
- The contractor has 7 days to write to the architect asking for the AI to be confirmed
- If the architect does not respond in a further 7 days it is taken as being an AI
20
Q
Can the contractor object to a variation?
A
- They can make ‘reasonable’ objections in writing for variations relating to those described in 5.1.2 (working conditions / access / working hours etc)
21
Q
How soon do they have to comply with an instruction?
A
Forthwith
22
Q
What can the architect do if they don’t?
A
What can the architect do if they don’t?
- He can issue a compliance notice
- If there is still no action by the contractor within 7 days, others can be employed to carry out that work and the additional cost charged to the contractor
23
Q
What are the valuation rules?
A
There are three rules for measurable work:
a. If it is of a similar character, quantity and in the same conditions as existing work, then the bill rates should be used
b. If it is of a similar character, but different quantity or conditions, the bill rates should be used as a basis but a fair allowance should be made to take account of the difference
c. If it is not of a similar character, fair rates and prices should be used
24
Q
What about non-measurable work?
A
about non-measurable work?
- Should be valued by dayworks
- The prime (actual) cost of all the materials, labour and plant used in carrying out the work, along with the % additions to each category as set out in the contract
- Should be calculated in accordance with the ‘Definition of the Prime Cost of dayworks carried out under Building Contracts’ published by the RICS
25
What information is necessary to be able to assess dayworks?
a. Vouchers showing the amount of time spent on each activity (dayworks sheets)
b. Names of the workmen
c. Plant used
This information should be given to the architect at the end of the week following that in which the work was carried out for verification
26
Can the QS alter hours which he considers to be excessive on a dayworks sheet that is authorised by the architect?
No
27
What would you do if the contractor submitted 10 dayworks sheets to you for payment?
- Verify with the architect that a relevant variations has occurred and is on an AI
- Ensure there is no other contractual method of valuing the variation
- Verify the hours and materials are correct and authorised by the architect
28
If you and the contractor’s QS could not agree on something how would you resolve it?
- Discuss with partner and client to try and seek a resolution with the contractor
- Your valuation stands for the purposes of payment
- The contractor could take the dispute to adjudication if necessary but should try and resolve so it doesn’t come to this
29
What is quantum merit?
- Translates as ‘what he deserves’ i.e. fair and reasonable
30
Give an example of where it might be used
- If the employer and contractor come to a separate agreement on acceleration, the costs of this may be based on a ‘fair and reasonable’ basis
31
What is measurement?
The transformation of drawn information into descriptions and quantities, undertaken to value, cost and price construction work.
32
What are the different methods of measurement for a Cost Plan?
- Functional unit
- Floor area
- Elemental
- Approximate quantities
- Bill of quantities
33
What are the benefits of having a standard method of measurement?
- Provide structure for information
- Defines unit of measurement for different items, e.g. m, m2, m3, t
- Provides rules as to what is included within each item
- Defines terms used to avoid disputes
- Allows familiarity to development so measurement becomes quicker and easier
- Provides clear system of structuring other project information
34
How is NRM1 structured?
Part 1 - context and definitions
Part 2 - how to prepare an order of cost estimate
Part 3 -how to prepare an elemental cost plan
Part 4 - tabulated rules of measurement for preparing cost plans
35
What is the GEA as defined in the Code of Measurement Practice and what does it include?
Gross External Area.
GEA is the area of a building measured externally at each floor level.
- Includes footprint of building (perimeter wall thickness, external projections)
- Includes internal balconies, columns, internal walls, lift rooms, horizontal floors below structural/stepped floors regardless of accessibility
- loading bays
- Areas with less headroom than 1.5m
36
What does GEA as defined in the Code of Measurement Practice exclude?
- External open-sided balconies, covered ways and fire escapes
- Canopies
- Open vehicle parking areas, roof terraces and the like
- Voids over or under structural structural, raked or stepped floors
37
What is the GIA in Code of Measurement Practice 6th ed. and what does it include?
- areas occupied by internal walls (whether --- structural or not) and partitions
- service accommodation such as WCs, showers, changing rooms and the like
columns, piers, whether free standing or projecting inwards from an external wall, ----- chimney breasts, lift wells, stairwells etc
lift rooms, plant rooms, tank rooms, fuel stores, whether or not above roof level
open-sided covered areas (should be stated separately)
GIA will exclude:
open balconies
open fire escapes
open-sided covered ways
open vehicle parking areas, terraces and the like
minor canopies
any area with ceiling height of less than 1.5m (except under stairways)
any area under the control of service or other external authorities
Note that the areas excluded from GIA should be calculated and shown separately.
38
What does GIA in Code of Measurement Practice 6th ed. exclude?
- Perimeter wall thicknesses and external
projections
- External open-sided balconies, covered ways
and fire escapes
- Canopies
- Voids over or under structural, raked or
stepped floors
- Greenhouses, garden stores, fuel stores, and the
like in residential property
39
What functional unit of measurement would you use for car parks?
Cost/parking space
40
What unit of measurement would you use for measuring an office?
Cost/m2 of NIA
41
What unit of measurement may you use for schools?
Cost/pupil
42
What unit of measurement may you use for hospitals?
Cost/bed space
43
In the Code of Measurement Practice 6th ed., what is the definition of NIA and what does it include?
Net Internal Area
Kitchens.
Any built in cupboards or units that occupy usable areas.
Perimeter skirting boards, mouldings and trunking.
Open circulation areas such as atria, corridors and entrance halls.
Partition walls and other dividing elements.
44
What is excluded from NIA as defined in the Code of Measurement Practice 6th ed. ?
- Common areas such as hallways, landings, balconies
- Toilets, changing rooms, cleaners rooms and the like
- Lift rooms, plant rooms, tank rooms (other than
those of a trade process nature), fuel stores, and
the like
- Stairwells, Liftwells
- Internal structural walls, walls enclosing excluded areas
- Columns, piers etc
- Area occupied by permanent and continuous air conditioning, heating or cooling apparatus and ducting if it renders the area unusable
- The space occupied by permanent, intermittent
air-conditioning, heating or cooling apparatus
protruding 0.25m or more into the usable area
- Area with headroom less than 1.5m
- Areas rendered substantially unusable by vir tue
of having a dimension between opposite faces of
less than 0.25m
- Vehicle parking areas
45
What is the build up to an Elemental Cost Plan recommended in NRM?
```
0 - Facilitating Works
1 - Substructure
2 - Superstructure
3 - Internal Finishes
4 - FF&E (Fittings, Furnishings and Equipment)
5 - Services
6 - Prefabricated units
7 - Works to existing building
8 - External Works
9 - Main Contractor Prelims
10 - Main Contractor OH&P
11 - Project Design Team Fees
12 - Other development/project costs (e.g. cost to acquire land, planning fees, insurances)
13 - Risk
14 - Inflation
```
46
What is IPMS?
International Property Measurement Standards
Property Measurement Standards that supersede NRM. Building function specific.
47
When was the first IPMS released?
2014 - IPMS: Office Buildings
48
When was the residential volume of IPMS released?
2016
49
What is IPMS1?
- The sum of the areas of each floor of a building measured to the outer perimeter of external construction features and reported on a floor by floor basis
- GEA
50
What is included in IPMS1?
- Basement included. Calculated by taking exterior plane of GF and extending it downwards, or by taking the GIA of the BF and estimating the external perimeter wall thickness
- Balconies, galleries and accessible rooftop terraces are included but should be stated separately
51
What is excluded in IPMS1?
- Open light wells or upper level voids of atriums
- Open external stairwells that are not an integral part of the structure
- Patios and decks at ground level, car parks, Cooling equipment and refuse areas and other areas that are not fully enclosed are not included but may be stated as a separate measure
52
What is IPMS2: Office for?
- Measuring the internal area of offices
| - Categorising use of space in an office building
53
What's the definition of IPMS2: Office?
The sum of the areas of each floor level of an office building measured to the internal dominant face and reported on a component-by-component basis on each floor of the building.
GIA
54
What is included in IPMS2 Office?
Atria and the like only measured at GF level
- All areas inside internal dominant face including partitions, columns
- Enclosed passageways between two buildings
- Balconies, galleries and accessible rooftop terraces are included but should be stated separately
55
What is excluded in IPMS2: Office?
- Open light wells or upper level voids of atriums
- Patios and decks at ground level, car parks, Cooling equipment and refuse areas and other areas that are not fully enclosed are not included but may be stated as a separate measure
56
What is an internal dominant face?
The inside finished surface comprising of 50% or more of the surface area of a vertical section forming an internal perimeter
57
What happens if there is no internal dominant face?
The measurement is taken to the wall to floor junction excluding skirting etc
58
What is IPMS3: Office for?
- Measuring the occupation of floor areas for exclusive use
| - IPMS3 is not directly related to IPMS1 or 2, nor a component area in IPMS2
59
What is the definition for IPMS3: Office?
Floor area available on an exclusive basis to an occupier
but excluding shared facilities and shared circulation areas.
Calculated on an occupier-by-occupier or floor-by-floor basis.
60
What is inclusive of IPMS3: Office?
- All internal walls and columns within tenant area
| - Taken to centre line of shared tenant walls
61
What is excluded from IPMS3: Office?
Standard facilities. These are parts of the building providing shared or common facilities that do not change over time, such as stairs, cleaners cupboards, escalators, plant rooms, fire refuge areas and maintenance rooms.
62
What are the 8 component areas as defined in IPMS2: Office?
- Workspace
- Hygiene areas
- Circulation areas
- Amenities
- Vertical penetrations
- Structural elements
- Technical services
- Other areas (incl. storage rooms, internal parking, balconies)
63
What does BIM stand for?
Building Information Modelling
64
What is BIM?
The process of creating information models containing both graphical and non-graphical information in a Common Data Environment (CDE)
65
What are the levels of CAD?
Level 0 - Unmanaged CAD
Level 1 - Managed CAD in 2D or 3D
Level 2 - Managed 3D environment with data attached, but separate model for each discipline (architect, structural engineer etc)
Level 3 - Single online project model with construction sequencing, cost and lifecycle management information.
66
What are the dimensions of BIM?
3D - Graphical and non-graphical information in a CDE
4D - Same as 3D but also includes construction sequencing. Info about lead times etc, ultimately enabling the creation of a more accurate programme
5D - Includes capital cost information
6D - Includes lifecycle cost information
67
What role would the QS have if 5D BIM was executed in the design phases of a project?
- To check accuracy of information and fill the gaps. Cost info derived from model will only be as accurate as the information provided, which will generally be basic in the earlier design stages
- QS will be able to pick up on costs not shown on construction model such as temporary works.
- Quantities may not be visible on model but derived from it, such as window mouldings.
68
What are the benefits of level 3 5D BIM for a QS?
- Data can be queried at any time during a project, information is regularly updated. Can create a "Living Cost Plan". Cost Reports will be more accurate when issued - currently they are historic dating to the last design release.
- 3D visualisation can reduce the risk of missing anything out
69
What is the purpose of a tender pricing document?
- To enable a like for like comparison between Tender submissions and Cost Plan
- To enable Cost Consultant to understand where value lies within Contract Sum (foundations, M&E etc.)
- To identify significant differences in pricing to ensure design has been interpreted correctly
- Identify areas of saving that may be negotiated with tenderers whilst in competition
- Form the financial basis of Tender Report
70
What is a Bill of Quantities?
- A document that provides a list of quantities for a project
- Put together by QS
- Quantities taken from drawings and specification in the tender documentation.
- Requires full specification of project
71
What is the Bill of Quantities for?
For PQS to prepare a pre-tender cost estimate. Quantities are multiplied by rates to give costs.
- To be sent out to Contractors during the tender period for them to price
- Can be used as a schedule of rates to price variations
- Can provide the basis for valuations of interim payments
- Provide the basis for preparation of the Final Account
72
What is a schedule of works?
- Simply lists work to be carried out. Quality should be defined in specification, size and location defined in drawings.
- Allow for pricing of items, builders work, fixing schedules
73
Who would produce a schedule of work?
- Produced by designers
74
Why would a schedule of work be used?
- Used on smaller projects or for alteration works
- Alternative to BoQ
- Sometimes form part of tender documentation/Contract Documents along with BoQ, specification etc
75
What documents form Tender Documents?
- A letter of invitation to tender
- Form of Tender
- Form of Contract to be used
- Tender Pricing Document
- EIR (Employers Information Requirements) for BIM
- Design drawings, possibly BIM model
- Specification
- Tender return slip
76
What is a schedule of rates?
A list in a Contract setting out costs for items ranging from labour, plant hire and staff (for cost reimbursable day rates), to rates for an extensive number of items (for Measured Term Contracts).
77
What are the advantages of using a schedule of rates?
- Variations are easier to value and usually cheaper
- Client can stop and start work whenever they like
- Tendering process is easy and inexpensive, so larger pool of Contractors can be invited to Tender (more competitive = cheaper)
- Fast track procurement method as project can be tendered before design is complete
- Flexible in relation to scope and contractual commitment
78
What are the disadvantages of using a schedule of rates?
- Client does not have final price when committing to works
- Additional resources required to measure works before payment made to Contractor
- Difficult for Contractors to predict long term resource, may result in loss of continuity
- No sense of urgency or risk, so best resource may be taken away from these works
79
What is a provisional sum?
An allowance in a Contract Sum for a specific element of works that is not yet defined in enough detail for tenderers to accurately price.
80
What is a defined provisional sum?
An element of work defined in enough detail for the Contractor to have made an allowance in their:
- Programme
- Prelim pricing
- Planning
81
What is an undefined provisional sum?
An element of work NOT defined in sufficient detail, thus the Contractor cannot be expected to make an allowance in their:
- Programme
- Prelim pricing
- Planning
82
What is a prime cost sum?
An allowance for the supply of work or materials by the Contractor nominated by the client. This allowance is exclusive of any OH&P/attendance by the Main Contractor.
83
How are payments for PC sums agreed?
Payments are agreed based on quotes/invoices provided by the Main Contractor. Any additional reasonable percentages for OH&P/prelims are added. This can result in the Contract Sum increasing/decreasing.
84
What are target costs?
- Relating to Cost Reimbursable Contracts
| - Target costs set, allowing Contractor to share cost savings but also bear cost of overruns
85
What are the benefits of target costing?
- Encourages good collaboration
| - Encourages good cost control
86
What are the disadvantages of target costing?
- Client must have sufficient knowledge to understand what the likely outcome of costs may be
- Client must be good at negotiating target cost
87
What Contracts have provisions for target costing?
NEC3 ECC - Option C Target Contract with Activity Schedule
NEC3 ECC - Option D Target Contract with Bill of Quantities
88
What are relevant matters?
- Found in Contracts such as JCT
- Refers to matter that the client is responsible for
- The matter materially affects progress of work on site
89
Give 5 examples of relevant matters.
1. Failure to give Contractor possession of site
2. Discrepancies in Contract Documents
3. Delays in receiving instructions
4. Failure to supply goods/materials
5. Disruptions caused my work by the Client
90
What is a consequential loss, and is it covered through a loss and expense claim?
- No, loss and expense only cover direct losses.
- Consequential losses such as loss of production (efficiencies, stopping & starting is inefficient) are not directly related so are generally not covered.
91
What are preliminaries?
The cost of administering a project and providing general plant, site staff, facilities, site based services and other items not included in any package.
92
Name some items you may find in the preliminaries in the Tender Documents.
- A general summary
- Method statement
- Pre-construction information
- Planning conditions
- Party wall conditions/agreements
- Requirements for insurances/bond/warranties
- Dates for partial possession
- BIM requirements
- Waste management plan
- Site preliminaries
93
What items would form the site preliminaries?
- Staff offices
- Plant
- Site waste clearance
- Electricity
- Water
- Furniture
- ICT
- Protection
- Transport
94
What is meant by Dayworks in Construction?
A Contractor is paid for specific works on the basis of the cost of labour + materials + plant + OH&P.
95
When would dayworks be used?
In a variation/prime cost/PSUM when work cannot be priced the regular way, for example:
- When an unforeseen obstruction is encountered
- When works are instructed that have no comparable rates in BoQ
96
How are dayworks priced in NEC3?
Option A - percentage addition on top of prime cost
Option C - all inclusive rates quoted at tender
97
What is the purpose of an interim valuation?
To provide advice to the certified for the issue of interim certificates and payment notices
98
Who will be the certified of an interim valuation?
Contract dependent, one of the following:
- Contract Administrator
- Employer's Agent
- PM
- Employer
99
What is the role of a QS with interim valuations?
- To assess value of work complete, not cost incurred by Contractor
- To value the whole project, NOT value work done since the last valuation.
- QS must value work carried out that is assumed to be properly executed. CA/PM/EA's role to inform QS if deductions need to be made/there are defects etc.
100
What is the RICS guidance note on interim valuations?
RICS Professional Guidance - Interim Valuations and Payment 2015
101
How may the Employer's view of valuing works differ from the Contractor's?
Employer - Value of the total Contract, minus costs to bring the Contract to completion (including costs to bring in another Contractor to complete works if necessary)
Contractor - valuing completed works is calculated using a BoQ, receiving payment on work completed + add ons.
This is of particular importance when reaching the end of the project, as the Employer's method of valuing works protects themselves from costs incurred if the Contractor does not finish the project/doesn't fix major defects (retention may not be enough to cover the costs)
102
How would a QS value work that has been executed?
Site visit - visual inspection and/or measurementSite visit - visual inspection and/or measurement
103
What are the implications of under valuing work?
Financial/cash flow problems for the Contractor
104
What are the implications of over valuing work?
Risk for client as they are paying for works that have not been completed. If Contractor goes insolvent and client has overpaid, client loses out.
105
What constitutes a change under JCT DBC?
- Employer sets Employer's Requirements
- Lump Sum Contract
- Contractor holds risk for having quantified scope correctly
- ERs have no quantities
- Only info PQS has is the Contract Sum Analysis, which they must ensure provides appropriate pricing detail to aid valuing change
- Change is a change to ERs in quality/quantity/design
- Change can also be further obligations/restrictions imposed by the Employer, or alteration/omission/addition of obligations/restrictions such as site access
106
How is changed valued in JCT DBC?
- The employer and Contractor will agree a value for the variation
- Information will be exchanged. Rates from CSA will be used if possible, though often there will not be enough information. Quotes can be requested, a reasonable price must be agreed.
- If an agreement is not reached, a valuation of the variation is made in line with Valuation Rules. It is not specified who carries out this valuation, most likely will be EA
107
What constitutes a change under JCT SBC?
Contract Sum calculated with a fully priced BoQ (Contract Bills)
- Employer holds risk for accuracy of quantities and errors.
- Any errors are corrected as a variation
- Any change to design/quantities/quality is a variation
- Change can also be further obligations/restrictions imposed by the Employer, or alteration/omission/addition of obligations/restrictions such as site access
108
What constitutes change in JCT Intermediate Building Contract?
Same as JCT SBC.
Contract Sum calculated with a fully priced BoQ (Contract Bills)
- Employer holds risk for accuracy of quantities and errors.
- Any errors are corrected as a variation
- Any change to design/quantities/quality is a variation
- Change can also be further obligations/restrictions imposed by the Employer, or alteration/omission/addition of obligations/restrictions such as site access
109
What are the purposes of certificates?
1. To record an event, e.g. Practical Completion, Certificate of Making Good, Final Certificate
2. As a financial statement, e.g. Interim Certificates, Payment Notices, Pay Less Notices
110
What happens if the Contract two parties have entered into does not sufficiently define interim valuation and payment mechanisms?
The payment mechanism contained in The Scheme for Construction Contracts (England and Wales) Regulations 1998 (Amendment) (England) 2011 (the Scheme) comes into effect.
111
What does LDEDC 2009 say about interim valuations and payments?
Came into force in 2011, amended payment provisions in HGCRA:
- Payment notice must be issues within 5 days of due date for every interim payment, specifying amount owed
- Impossible for payer to avoid making payment, as if works have failed to be paid/certified, as in this circumstances the PAYEE is entitled to issue payment notice
- Payment notices are required to contain the basis
upon which notified sums are calculated
- A payer must pay the notified sum as contained in the
relevant payment notice unless it serves a notice to
pay less (or a pay less notice).
- A notice to pay less than the notified sum must value
the work at the date the notice is served, rather than
the payment due date.
- It is possible for either the notified sum or the sum
given in a notice to pay less to be zero; however, the
basis upon which the sum is calculated must be
included.
112
What is the Contract Sum?
The amount or consideration that the employer agrees to pay the contractor for carrying out the construction work
113
Why is the Contract Sum rarely, if ever, a fixed amount?
- Variations
- PSUM adjustments
- Prime Cost adjustments
- Addition/Removal of scope
- Loss and expense incurred by Contractor
- Fluctuations such as labour cost, material costs (if Contract includes such provisions)
114
Name some Contracts that are not lump sum.
JCT Standard Building Contract w/ approximate quantities
- NEC3 ECC Option E (Cost Reimbursable Contract)
Any Contract that allows for remeasurement
115
What are the roles in JCT DB 2011 for interim payments?
Employer - payee
Contractor - payer
Employer's Agent - Certified
QS - Valuer/validator
116
What is the Employer's Agent role named in JCT SBC?
Contract Administrator
117
What is the payment timeline for JCT SBC?
- 7 days = Contractor's interim application for payment
[Valuation Period]
0 days = Due Date for valuation
[CA prepares certificate. LDEDC requirement must be latest 5 days after due date. If Contractor failed to issue interim application, CA must ensure QS values work within this time]
+5 days = Interim certificate issued by CA
+9 days = Last date to issue Pay Less Notice (5 days before Final Date for Payment
+14 days = Final Date for Payment
118
How many days is the total payment cycle, from the issue of the Contractor's interim application to the Final Date for Payment?
21 calendar days
119
What happens if the Contractor does not issue his interim application on time?
In JCT DB 2016, the due date moves to 7 days after the interim application is recieved.
In JCT SBC 2016, the interim certificate/payment notice must be issued 5 days after the due date set in the Contract regardless
120
After Practical Completion, when are interim applications submitted in JCT DB?
On the due date, every 2 months.
121
When is the last due date in a JCT DB Contract?
On the expiry of the defect rectification period, or when the Certificate of Making Good Defects is issued.
122
What happens if the CA fails to issue an interim certificate on or before the date stipulated in the Contract?
Either:
- Interim Application made by the Contractor will become the payment notice
- If no Interim Application was made, the Contractor may at any time issue a payment notice after +5 days from the Due Date
123
What is the purpose of a Pay Less Notice?
This is how the Employer notifies the Contractor that he or she intends to pay less than the sum on the payment notice, and how this sum was calculated.
124
Can the Employer pay the Contractor less than an amount stated on an Interim Payment Certificate/Notice?
Yes, the employer can issue a Pay Less Notice to the Contractor so long as it is 5+ days before the Final Date for Payment
125
Can a pay less notice be issued before an Interim Certificate?
No
126
How long is the interim payment period?
14 calendar days from due date
127
What happens if the Employer fails to pay the Contractor?
Simple interest is charged on top of payment due at the interest rate of the period from final date for payment until payment is made.
Acceptance of payment of interest does not waiver his/her right to receive proper timely payment, suspend performance or terminate his/her employment.
128
What are the two methods of payment in JCT DB 2011?
Alternative A: Staged payments. Stages are set in CPs and priced on a cumulative basis as each stage is completed using the Contract rates
Alternative B: Periodic payments. Contractor submits application on dates set out in CPs.
129
What is the procedure for JCT DB 2011 Alternative B?
Periodic payments with the same procedure as in JCT SBC 2011. Rates taken from Contract Sum Analysis rather than BQ.
130
What is the QS role in JCT DB Contracts?
The QS has no role, however it is common practice for QS to advise/validate interim valuations.
131
What is the difference in the payment cycle for JCT DB in comparison to JCT SBC/
- 14 calendar days instead of 21
- No date for Contractor's interim application to be submitted by, as the Contract does not recognise role of a QS so no need to have time for a QS to value works.
- Interim application can be submitted on or before the Due Date
132
What is a recommended amendment to the JCT DB Contract with regards to interim payments?
For the Contractor to submit their interim application X amount of days prior to the due date. This allows time for the QS to advice on the validity of the application.
133
In a JCT DB Contract - if the Employer's Agent failed to issue an interim certificate, so the Contractor raised a payment notice +4 days after the Date for Interim Payment, how long will the total payment cycle have been?
18 days
134
What units can quantities be measured in?
- Length
- Area
- Volume
- Time
- Number
- Weight
135
What is a firm bill of quantities?
A firm BoQ is a document prepared by the QS that provides SPECIFIC measured quantities of the items of work identified by the drawings and specifications.
136
What is an approximate bill of quantities?
Used on projects where is it not possible to prepare a firm BoQ.
Some Contracts allow for remeasurement on approximate quantities.
137
Why may is not be possible to prepare a firm BoQ?
If the design is relatively complete but the quantities are not yet known (perhaps underground works where scope cannot be fully understood until digging begins)
138
What is a priced activity schedule?
A list of activities which the Contractor expects to carry out in completing their obligations under the Contract.
Activity schedule is priced, then the employer pays Contractor for each activity once complete.
139
What Contracts use activity schedules?
NEC Option A and Option C.
140
What are stage and milestone payments?
Stage payments (sometimes called milestone) is where payments are due when pre-agreed "stages" or "milestones" are met, as opposed to time.
141
What is a Contract Sum Analysis?
- A CSA is an elemental breakdown of the Contract Sum
| - Normally based on elemental framework defined in NRM1
142
What are cost reimbursable contracts?
Allows for payment of all incurred costs, often with a predetermined ceiling
143
When would you use a cost reimbursable contract?
When uncertainties of performance will not permit a fixed price to be estimated with sufficient accuracy.
Therefore it would otherwise be difficult to ensure a fair and reasonable price.
144
What would you consider when carrying out a valuation?
- work executed
- variations/changes
- PSUM expenditure
- materials on/off site
- loss and expense
- fluctuations
- retention
- amounts previously paid
145
Where can you find a full description of items included in the preliminaries?
NRM2: Detailed measurement for capital building works
146
Preliminaries are of four kinds: cost-related, time-related, single-payment or a combination of the two. Give an example of a preliminary item that is a combination of two.
Scaffolding: Set up is fixed cost, renting it over a period is time related.
147
What may an instruction consist of?
- Additions, omissions, alterations, modifications and/or substitutions to the design, quantity or quality of work
- Provision of information
- Changes in timing, sequence or method of working
- Expenditure of PSUMs/ PC sums
- Actions in relation to work founds
148
How are instructions issued?
Most standard contract conditions stipulate they must be issued in writing, but some conditions detail provisions for oral instructions
149
What happens if a CA gives an oral instruction but does not confirm it in writing?
In JCT SBC, the Contractor must confirm it within 7 calendar days. The instruction then takes effect after a further 7 calendar days.
150
How do you value omissions from the Contract Sum?
Either ignore the instruction and value 0% against that item in the CSA, or value 100% against that item and count the omission figure in the instruction.
151
What are the four categories of instructions?
- Items pre-agreed in content, price and time
- Items agreed in price but not effect on contract (e.g. time)
- Items instructed but not agreed on price; to be evaluated in terms of the contract
- Items identified by contractor as variations/changes but not instructed at time of valuation
152
Can the QS pay against non-instructed items?
No. Contract Sum can only be adjusted via a formal instruction by the Contract Administrator.
153
If daywork sheets for a variation are annotated "for record only", can the QS make his own assessment as to how much labour was used on said variation?
No, irrespective of the annotation, if the daywork sheets have been signed and dated properly by the authorised persons they constitute an accurate record of the resource used.
154
What are common restrictions on valuing materials and goods on site?
- Must be delivered to site or adjacent to works
- Must be reasonably, properly and not prematurely bought
- Must be adequately protected against weather
155
Can you value goods off site?
Most JCT Contract Conditions provide for materials and goods off-site to be included in interim payments.
Conditions of payment set out in contract conditions relating to materials off-site must be fulfilled.
156
What are "listed items"?
Materials, goods and/or items pre-fabricated for inclusion in the works.
Listed by the Employer and list supplied to the Contractor and annexed to the pricing document
157
Are payments for loss and expense subject to retention?
No
158
Can you include loss and expense within an interim valuation?
Yes, however the basis of the loss and expense must be established before any monies are included.
159
Can the Contractor suspend pay if the employer fails to pay all sums due?
Yes LDEDC Act 2009 gives contractor right to suspend work subject to giving the required notice period
160
What happens if costs are incurred to the Contractor through suspending work?
These must be paid for by the Employer and included in an interim payment.
161
What is a 'director's adjustment'?
A reduction or addition to the contractor's tender price
162
What is an 'advance payment'?
- Optional clause which makes Provison for employer to make advance payment to Contractor
- Amount and date for payment must be in CPs with times/amounts of repayments from Contractor to Employer
163
How may an Employer protect themselves from losing out after issuing an advance payment?
Take out an advance payment bond.
164
Does the CA have to certify payment if he/she feels has not been properly executed?
No, value of work not properly executed deducted from interim application.
165
What is a defined provisional sum?
A sum is provided for work that is not completely designed, however nature of the work is known, how/where it is to be fixed, quantities that indicate a scope are known.
166
What is an undefined provisional sum?
A sum provided for work that is not completely designed, and the information required for a defined provisional sum is also not provided (quantities, nature of work, location, limitations)
167
What is a PC sum?
Sum of money included in a unit rate to be expended on materials or good, e.g.
Tiles at £36/m2
PC sums exclude costs associated with fixing, installation, ancillary and sundry materials, subcontractor design fees, MC prelims and OH&P.
168
When would you use a PC sum?
When precise quality of materials or goods are unknown, nominated by the Client
169
What is an order of cost estimate?
The determination of possible cost of a building(s) early in design stage in relation to the employer’s fundamental requirement.
Happens prior to working drawings etc.
170
What is a base cost estimate?
An evolving estimate of known factors without any allowances for risk and uncertainty, or element of inflation.
Works cost estimate + project/design team fees estimate + other development/project costs estimate
171
What is the building works estimate?
The sum of the cost targets for group elements 1 to 8 (substructure, superstructure etc).
It excludes facilitating works estimate, as well as those relating to main contractor’s preliminaries, main contractor’s overheads, profit/design team fees estimate, other development/project costs estimate and risk allowances
172
What is an elemental cost plan?
The critical breakdown of the cost limit for the building(s) into cost targets for each element of the building(s).
173
What are the components that would make up pile foundations in a cost estimate as stated in NRM1?
Pile mat
- Piling plant
- Moving pile rig into position
- Piles (type, diameter, depth)
- Extra for casings (material, permanent/temp, depth
- Disposal for excavated material
- Extra for breaking through obstructions
- Cutting off tops of piles and preparing piling heads/caps
174
What are included and excluded from pile measurements as per NRM1?
Include: piles, caissons, mats and platforms, rigs, disposal, caps, ground beams, disposal of excavated material, surface water
Exclude: piles and caissons forming retaining wall, dewatering, soil stabilisation
175
How are curved foundations to be identified in a cost plan?
Identified seperately
176
How would you measure solar/rain screening as stated in NRM1?
Vertical screening = m2
Horizontal screening = m
177
What would you exclude from a rain screen measure?
External shutters, integral to blinds to
windows, canopies and the like, providing
protection to windows and doors (included in windows and external doors)
178
What are the components that may make up an external wall measure in a cost plan as stated in NRM1
- External wall
- EO (extra over) for plinths/cornice/ornamental bands
- EO for quoin
- EO for openings (windows/doors) with size details
- EO PVC panels on curtain walling
- EO vents
- EO Safety barriers, handrails or combined balusters
- Finishes to external walls
179
When measuring external walls, are the sizes of the window/external door openings deducted from the area measure?
No
External wall measured in total with number of openings included as EO
180
What are included in the external wall element of a cost plan?
Parapets, chimneys, copings, cappings, columns and beams in unframed structures, curtain walling, masonry, concrete walls..
181
What are excluded in the external wall element of a cost plan?
Structural beams and columns, structural concrete walls/core walls, roof structures, windows and doors, walls and railing to external walkways, scaffolding
182
What's the difference between the code of measurement practice 6th edition, NRM and IPMS?
RICS Code of Measurement Practice = Rules for measuring area excl. office and resi (and industrial and retail now?)
NRM = Rules for measuring building works. Includes appendix for areas, taken from Code of Measurement Practice
IPMS = Rules for measuring areas, has separate guidance for resi, office, retail and industrial
183
What's the difference between NIA in Code of Measurement Practice 6th ed. and IMPS3 Office?
IPMS3 includes columns and measures walls separating different tenants to centre line.
CoMP excludes above
184
What's the difference between GIA in Code of Measurement Practice 6th ed. and IMPS2 Office?
IPMS2 includes balconies, covered galleries and accessible rooftop terraces but states them separately
CoMP excludes above
185
What's the difference between an Invitation to Tender and Instructions to Tenderers?
Invitation to Tender = All tender documents sent out to tenderers may be called "ITT". This pack will include a Letter of ITT
Instructions to Tenderers = Within the ITT, there will also be a document called "Instructions to Tenderers" which spells out what the tenderers next steps must be.
186
What is the GEA as defined in the Code of Measurement Practice and what does it include?
Gross External Area.
GEA is the area of a building measured externally at each floor level.
- Includes footprint of building (perimeter wall thickness, external projections)
- Includes internal balconies, columns, internal walls, lift rooms, horizontal floors below structural/stepped floors regardless of accessibility
- loading bays
- Areas with less headroom than 1.5m
187
What does GEA as defined in the Code of Measurement Practice exclude?
- External open-sided balconies, covered ways and fire escapes
- Canopies
- Open vehicle parking areas, roof terraces and the like
- Voids over or under structural structural, raked or stepped floors
188
What is the GIA in NRM and what does it include?
Gross Internal Area
Areas occupied by internal walls (whether structural or not) and partitions.
Service accommodation such as WCs, showers, and changing rooms.
Columns, piers, whether free standing or projecting inwards from an external wall, chimney breasts, lift wells, stairwells, and so on.
Lift rooms, plant rooms, tank rooms, fuel stores, whether or not above roof level.
Open-sided covered areas (should be stated separately).
189
What does GIA in NRM exclude?
- Perimeter wall thicknesses and external
projections
- External open-sided balconies, covered ways
and fire escapes
- Canopies
- Voids over or under structural, raked or
stepped floors
- Greenhouses, garden stores, fuel stores, and the
like in residential property
190
In the NRM, what is the definition of NIA and what does it include?
Net Internal Area is the usable area within a building measured to the internal face of the perimeter walls at each floor
level. (See note NIA 3)
Atria with clear height above, measured at base
level only (but see 3.11)
Entrance halls (but see 3.11)
Notional lift lobbies and notional fire corridors
Kitchens
Built-in units, cupboards, and the like occupying
usable areas
Ramps, sloping areas and steps within usable
areas
Areas occupied by ventilation/ heating grilles
Areas occupied by skirting and perimeter
trunking
Areas occupied by non-structural walls
subdividing accommodation in sole occupancy
Pavement vaults
191
What is excluded from NIA as defined in the NRM?
- Common areas such as hallways, landings, balconies
- Toilets, changing rooms, cleaners rooms and the like
- Lift rooms, plant rooms, tank rooms (other than
those of a trade process nature), fuel stores, and
the like
- Stairwells, Liftwells
- Internal structural walls, walls enclosing excluded areas
- Columns, piers etc
- Area occupied by permanent and continuous air conditioning, heating or cooling apparatus and ducting if it renders the area unusable
- The space occupied by permanent, intermittent
air-conditioning, heating or cooling apparatus
protruding 0.25m or more into the usable area
- Area with headroom less than 1.5m
- Areas rendered substantially unusable by vir tue
of having a dimension between opposite faces of
less than 0.25m
- Vehicle parking areas
192
What is the build up to an Elemental Cost Plan recommended in NRM?
```
0 - Facilitating Works
1 - Substructure
2 - Superstructure
3 - Internal Finishes
4 - FF&E (Fittings, Furnishings and Equipment)
5 - Services
6 - Prefabricated units
7 - Works to existing building
8 - External Works
9 - Main Contractor Prelims
10 - Main Contractor OH&P
11 - Project Design Team Fees
12 - Other development/project costs (e.g. cost to acquire land, planning fees, insurances)
13 - Risk
14 - Inflation
```
