3.3 Project finance, Reporting & Quantification Flashcards
What is the NRM?
New Rules of Measurement
-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
Why is it important to measure according to industry standards?
Consistency and accuracy
Minimise dispute as they are standardised
Tell me about NRM2?
Gives guidance on preparation of BoQ and schedules of works.
Split into building elements
Elements are split into three levels of detail.
What is an Order of Cost Estimate?
Defined in NRM1 as estimate based on similar projects.
What is the difference between an order of cost estimate and a cost plan?
Estimate provides a likely cost based on employer’s requirements. Cost plan is based on drawings with elemental breakdown of cost.
What are the RIBA Stages of Work?
Stage 0 - Strategic Definition
Stage 1 - Preparation and Brief
Stage 2 - Concept Design
Stage 3 - Spatial Design
Stage 4 - Technical Design
Stage 5 - Construction and Manufacturing
Stage 6 - Handover
Stage 7 - Use
What is SMM7?
Standard method of measurement 7th edition which was published by RICS in 1922 but it was superseded by NRM2.
What are the sources for cost information?
-BCIS
-Pricing books such as Spon’s
-Pricing information from previous schemes
-In-house cost models
-Speaking to subcontractors and suppliers
Key reasons for cost overruns on projects?
-Unrealistic cost estimates
-Ambiguous briefs or changes
-Inadequate risk allowances
-Poor design
-Poor tender review
-Inflation
-External factors (pandemics, recession…)
Cost control procedures?
- Omission of elements of work not required.
- Reduce the scale of elements of works to come.
- Reduce the specification of elements.
Examples of pricing documents?
-BoQ
-Schedule of rates
-Schedule of work
-Priced activity schedule
-Contract sum analysis
Examples of pricing options for construction contracts?
-Lump sum
-Cost-plus
-Remeasurement
-Target cost
-Guaranteed maximum price(GMP)
What the main elements of an interim valuation?
-Prelims
-Measured work
-Variations/CEs
-Materials
-Retention
-Fees
-OH&P
What happens if you fail to pay the contractor on time?
May be entitled to interest
May exercise their right to suspend works
What is a payless notice?
This the paying party the right to pay less than previously notified.
What is a payment timeline?
19 day payment terms is Due date to final payment date. Payment notice must be no more than 5 days from due date.
What are the components of a final account?
-Summary
-Measured work
-CEs
-Delay damages
-Retention
-Fees
-OH&P
Reporting - Level 2 example?
Weekly staff time tracker.
Reporting - Level 3 example?
CTC and CVR on RAF M. Save costs with the implementation of Cemar and remove the data admin personnel.
Quantification - Level 2 example?
On Cov AQP bill production for surfacing or activity schedule for VRS.
Quotation requested for plane and relay. How I complied quote.
Quantification - Level 3 example?
Advised on staged payments on RAFM.
Why wasn’t the additional surfacing work done under BoQ rates?
If work is over 0.5% of contract sum it is a CE.
What do you do following an instruction?
- Acknowledge (clarify changes)
- Investigate (design/programme/measure)
- Get quotes and review
- Draft final quote
- Issue
What is found in CVR?
Cost - booked and forecasted. (prelims/plant/materials/fees/OH/damages/risk)
Value - contract sum plus changes / cost plus flee / cost plus fees and incentives
Cashflow - shows the balance on an interim basis
What was the method of measurement for VRS and Surfacing?
Method of measurement for highways work.
VRS - series 400
Surfacing - series 700
Pavement build-up and what type?
40 sur / 50 bin / 220 bas
HRA - hot rolled asphalt
SMA - stone mastic asphalt
What is ICMS?
International Cost Management Standard.
- Third edition for life cycle costing of construction works.
- Latest edition guides on carbon emssions.
Cost controls on construction projects?
Value engineering (cost, risk, efficiency)
CTC (cost+forecast=final)
CVR
