17. Quantification and Costing Level 3

Question 1

Tell me about the tender normalisation process you carried out

Question 2

What is tender normalisation

Question 3

How did tender normalisation help you with negotiations and agreeing contract value?

Question 4

You advised on utilising a bill of quantities over an activity schedule. Why

Question 5

What is a BoQ?

Answer 5

A bill of quantities is a document that provides project-specific measured quantities of the items identified in drawings and specifications for a built asset such as a building.

Question 6

What is an activity schedule?

Answer 6

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 7

Which do you believe is better?

Question 8

In advising project managers on using a bill of quantities over an activity schedule on the Capital Maintenance Project framework, what were the primary considerations and benefits of this approach

Answer 8

In advising project managers to use a bill of quantities over an activity schedule on the Capital Maintenance Project framework, the primary considerations and benefits of this approach include:

Scope Clarity: By liaising with the project delivery team to understand the scope, it was determined that the work could be measured and quantified. Utilizing a bill of quantities provided clarity on the specific quantities of materials and labor required for the project.
Cost Estimation: A bill of quantities allowed for the collection of rates for future costing, enabling more accurate cost estimations for the project. This ensured that budgets could be effectively managed and allocated.
Measurability of Work: Since the work was measurable in quantities, a bill of quantities was deemed more appropriate. It provided a structured framework for quantifying the scope of work, facilitating better management and control over project resources.

Question 9

How did you handle situations where some quantities were too high compared to the average figure in a lump sum contract?

Answer 9

In instances where certain quantities were excessively high compared to the average figure in a lump sum contract, I engaged in negotiation with the contractors.

Negotiations were centered on reaching mutual agreement to rationalize the excessive quantities while upholding the project’s integrity and scope.

Through collaborative discussions and adjustments to quantities, our aim was to establish a lump sum contract value that was fair, reasonable, and aligned with project requirements and budgetary constraints.

Question 10

Can you elaborate on how you used tender normalisation to negotiate and agree on the contract value for various projects?

Answer 10

I employed tender normalisation by meticulously examining the bill of quantities to identify any omitted quantities for each item.

Upon discovering omissions, I compared the quantities to averages derived from other tenders to estimate the missing amounts accurately.

Adjustments to the contractor’s price were made based on these estimations, ensuring a fair and balanced representation of the contract value.

Subsequently, I communicated the revised tender price to project managers, incorporating the adjusted quantities to facilitate effective negotiation and finalization of the contract value