17. QC

Question 1

What is IPMS?

Answer 1

International Property Measurement Standards

Question 2

What are preliminaries?

Answer 2

Preliminary costs related to a construction project can be diverse.

You can have people, plant, materials, but it is usually site establishment costs (e.g. site accommodations and welfare facilities) and site running costs (e.g. water, heating, electricity).

Question 3

What is the RICS NRM?

Answer 3

New Rules of Measurement (NRM).

It is a standard set of measurement rules and essential guidance for cost management of construction/maintenance. There are NRM Volumes 1, 2 & 3.

Question 4

What is NRM1? Please talk about it.

Answer 4

NRM 1: Order of cost estimating and cost planning for capital building works

Question 5

What is NRM2? Please talk about it.

Answer 5

NRM 2: Detailed measurement for building works

Question 6

What is NRM3? Please talk about it.

Answer 6

NRM 3: Order of cost estimating and cost planning for building maintenance works

Question 7

Why were the NRM volumes updated in 2021?

Answer 7

Due to other recent developments. For example the RIBA Plan of Work (2020), updated in 2020. RIBA provides a framework for the analysis of construction costs.

E.g. NRM3: which is related to maintenance works, now relates to the 8th stage (7 - Use) of the RIBA Plan of Work 2020 stages.

Question 8

What does CESMM stand for? Please talk about it.

Answer 8

Civil Engineering Standard Method of Measurement

• Simply, CESMM sets out the standard for the preparation of BOQs (how they should be prepared, priced and the quantities of work expressed and measured)
• E.g. descriptions and what units to use
• It has 26 main classes of work commonly undertaken on civil engineering projects.
• The 4th edition (CESMM4) was introduced due to recent technologies.

Advantage of CESMM for Utilities is that it allows for the pricing of all temporary works.

Question 9

Why is CESMM used on your project? (JC - I may be asked about advising a form of measurement).

Answer 9

I wasn’t here. Thus far, my experience has not led to a situation where I have had to advise the form of measurement, but I can see advantages being:

• CESMM Can be used on NEC and FIDIC.
• CESMM allows for the pricing of all temporary works (Utilities).
• NRM2 has more detail, whereas CESMM has a more inclusive approach to measurement for civil engineering. Civils over building works.

Question 10

Can you tell us how you would measure using CESMM?

Answer 10

CESMM4 has 26 main classes of work commonly undertaken on civil engineering projects.
CLASS E = Earthworks.
CLASS F = In situ concrete.
CLASS I = Pipework. Example.. shows you that in the BoQ I would need to insert… Type of pipe (Clay / concrete / steel). Pipe diameter. Pipe depth.

Question 11

What kind of BoQ can you have?

Answer 11

Firm BoQ

Approximate BoQ (when the design is not fully complete)

Question 12

Who provides the BoQ?

Answer 12

On our project, the subcontractor.

On D&B projects, the Employer provides the Employer’s requirements, then the Subcontractor prepares the BoQ.

On traditional lump sum contracts, usually the Employer prepares the BOQ.

Question 13

Why is a BoQ important?

Answer 13

To price works.

For client to compare pricing.

Serves as a foundation for variations / final accounts / audits.

Question 14

What information does the QS need from the client to prepare the BoQ?

Answer 14

Client’s specifications
WI
Drawings
Schedules (e.g. reinforcement schedules)

Question 15

What did you learn from the RICS GN on Code of measuring practice 6th edition, May 2015?

Answer 15

It is a document that permits the accurate measurement of buildings and land, e.g. areas and volumes.

Independent reading on Gross External Area, Gross Internal Area and Net Internal Area, refreshing my knowledge from my university.

Question 16

What is Gross External Area, Gross Internal Area and Net Internal Area?

Answer 16

Gross External Area = Gross External Area is the area of a building measured externally at each floor level. (e.g. Wall thickness included).

Gross Internal Area = Gross Internal Area is the area of a building measured to the internal face of the perimeter walls at each floor level. (e.g. Wall thickness excluded. Columns included).

Net Internal Area = Net Internal Area is the usable area within a building measured to the internal face of the perimeter walls at each floor level. (e.g. Columns excluded).

Question 17

Who does the design on your project?

Answer 17

Subbie do the design for Utilities scope. This is co-ordinated with our in-house design team, called Design House. They then oversee & co-ordinate design across the project.

Question 18

How did you assess AFPs? What’s included in the payment?

Answer 18

Knowing the contract is an NEC Option A, I kept track of when items within the activity schedule were complete, via frequent meetings with the delivery team, and only assessed and paid when those activities were complete. Change is also included in the payment.

Question 19

How did you ensure benchmarking costs were appropriate for your project?

Answer 19

Undertaking benchmarking was outlined in the procurement strategy. It was vital to show VfM.

Question 20

How have you shown VfM? When would you be able to advise your client that you have achieved best value?

Answer 20

Benchmarking.

Ideally, you go to the market for VfM and find a range of subcontractors who competitively bid for the works, however if this is not the preferred or used tendering route, benchmarking is a good alternative.

Question 21

How did you assess quotations in line with the contract?

Answer 21

As per Cl 63 (Assessing CEs)

Assessing the actual Defined Cost of the work already done.
Assessing the forecast Defined Cost of the work not yet done.
Fee.

Also checking site diaries, invoices, rates etc.

Question 22

What do you mean by ‘‘I reviewed pricing documents such as the Activity Schedule and BoQ’’ for WP26.1B? How was there both?

Answer 22

To be clear…

An option A or C would be Activity schedule.

B or D BOQ.

The subbie was using a BoQ to price, but then i advised them to convert into an Activity Schedule for contract execution because this was an Option C.

Question 23

How are construction works costed?

Answer 23

Prices are built using L, P, M & Prelims. Also risk. Fee.

Question 24

How would you normalise rates?

Answer 24

CECA (Civil Engineering Contractors Association) rates

Spons rates

Market rates

Question 25

How would you build a price up without having rates or without being able to benchmark? (Referral)

Answer 25

Rates - CECA (Civil Engineering Contractors Association) or look at SPONS, or research market rates. Could speak to competent professionals from my network that work with rates & do price building more often.

I would look at building up a price from labour, plant, materials, prelims etc. I would use CESMM to help build the BoQ & price.

Question 26

Have you prepared a pricing document? (Referral)

Answer 26

No. I have reviewed them. However, if I was to build a BoQ…

I would look at building up a price from labour, plant, materials, prelims etc. I would use CESMM to help build the BoQ & price.

Rates - CECA (Civil Engineering Contractors Association) or look at SPONS, or research market rates. Could speak to competent professionals from my network that work with rates & do price building more often.

Question 27

L3 example, how did you advise benchmarking showed VfM to the client?

Answer 27

VfM can be difficult to prove on single-sourced packages, however, I sought rate comparisons against other subcontract packages, where other Subcontractors operate, so I was able to advise the client on the reasonability of rates.

Essentially I was able to compare rates against the rest of the market. I’d advise the client of this & advise the Subcontractor to reduce that rate in negotiation.

Question 28

What is the difference between an Activity Schedule and a BoQ? (Referral)

Answer 28

BoQ = list of items needed to build project, including the quantities.

Activity Schedule = list of activities prepared by Contractor expected to Provide the Works.

Difference is a BoQ has quantities and rates. An Activity Schedule does not. Instead, it has lump sum prices for each activity item.

Question 29

For WP26.1B, if the Subcontractor wanted to use a BoQ pricing document, why didn’t you use an Option D instead of Option C?

Answer 29

Option C was stated in the conditions of contract within the tender, and Option C had been previously agreed.

Question 30

L3 - You mention you advised the Subcontractor to amend incorrect quantities and rates. You also advised the client of defined amounts paid. Is this not just L2?

Answer 30

(I’m now not sure on this answer due to Short Form and Option A potential difference).

I think keep this simple in that CE rates differed from rates they previously had, so I advised them to justify and reduce unless they had justification. Clause 63 does also state that if the parties agree, rates and lump sums can be agreed. So it isn’t black and white. There is a discussion and decision to be had. Same for quantities.

OR… SHORT FORM ANSWER, IN REALITY WAS THIS…

I can see where you’re coming from. Some things were as simple as, that rate isn’t the rate in the contract so please correct. However…

there were more complex situations. The subbie was using inflated rates for CE QTEs instead of the rates agreed in the contract. I said you can’t do this. Their argument was that the original Completion Date of the contract had far been exceeded because we instructed so much additional extra scope, and the rates in agreed in the contract were now non-reflective of their costs. There was no X1. So essentially instead of them using inflated costs, I advised them to prove that their actual defined costs had risen in order to use Defined Cost rates. This was in line with an amended clause in the Subcontract, and I also believe it was fair and reasonable. I was able to advise the client of this decision also which they agreed to.

Question 31

Have you done a final account? How would you do a final account?

Answer 31

I have not. Not an NEC term, but I have done Interim Final Accounts (6 monthly). We do this because it makes it easier to manage and agree costs.

Ensuring all justification for CEs etc. All implemented and closed out (Clause 65). Ensure no Disallowed Cost. Free from defects.