Alice Holt Fee Breakdown Flashcards
What is the contract sum breakdown at alice holt?
Materials - £62k Sub - £2.1m Contingency - £27k Fixed price - £54k Prelims - £690k Fees - £60k OHP - £165k = £3,192,000 contract sum \+ CEs currently £300k or so
How was the project cost estimated?
Spec and drawings issued by client, boq produced based on drawings, estimates issues enquiries l to s/c packages, planners create programme, estimators produce an assessment on prelims based on programme length and requirements on site for equipment costs to produce a tender adjudication ( internal sign off from senior management based on value of project) scale %OHP added based on banding and scape fee added
To client
Package costs worked out the same way, prelims staff costs calculated using the SCAPE framework rates & % against the band of which the contract sum falls under, equipment costs are then priced either as packages or as % overhead against the people costs. Scape % OHP added (based onbanding) and scape fee added
Kier carry out exercise to match costs
What was the tendered profit margin v predicted profit margin?
Tendered 8%
Predicted 5.71% likely to be higher more recovered from covid costs then expected
How are kier paid?
Activity schedule defines what needs to be complete before payment. Client has 7 days to issue payment certificate. Kier raise invoice and then are paid within 21 days
What are the prelims costs?
Circa 10k per week
How have I managed and controlled budgets?
1) materials
Seperate budgets for materials. Remeasure each item before placing order so it gives qs visibility over each item. This is compared to estimate. I also spot changes that are made since the tendered drawings were complete that could led to compensation events and additional funds for additional works. Assess timings and logistics to minimise impact on programme and delivery costs
Hired items
Complete setting out as soon as possible so total station can be off hired saving budget. Assess whether it is cheaper to buy items required for the whole of the project rather than hire.
Variations
Subcontractors slow to price works during covid. Go through their schedule of rates and calculate estimate of costs for additional works for compensation events
How is change managed changed?
In nec compensation events are time and cost. There are a number of clauses that qualify exactly what constitutes a CE. CE can only be notified by a pm or supervisor. The process is as follows:
1) pm/ contractor notifies of an event they deem to be a CE within 8 weeks of the event ( it might be that an EWN is raised, discussed prior but not necessary)
2) pm agrees or disagrees that the event is a CE, if they reject it they must state why and it can be for a number of reasons
3) if agreed, pm requests a quotation
4) pm accepts or rejects (stating reasons why) and or requested a revised quotation. Note call the above are time barred eg. 3 weeks to issue quotes, 2 weeks to respond. No response is not deemed automatic acceptance, say the pm does not respond to quote within 2 weeks, contractor must issue a chase up then after 2 weeks of not responding to that does it become deemed acceptable
What is the importance of cashflow?
Monitors cash in v cash out. Ensures project stays cash positive which is reported up to group level. This dictates what group needs to borrow and also forecasts turnover. Cost for borrowing money
How are budgets managed on a project?
Packages separated when placing orders for s/c and materials actual compared to tendered budget. Remeasure of quantities is carried out to ensure cost certainty. Where possible we try to reduce scope as much as possible I.e intumescent paint only where required to be compliant with building control.
Budgets based at time of tendered drawings and spec. Retender on revised documents then seperate out costs of any changes and review scope before placing order to ensure nothing is missed. Any changes raised as ewn or ce
Managed through VCR process of reporting current cash in v cash out against final cash in v cash out
What are the LADs?
Liquated ascertained damages
£3,500 per week
Cost of covid to project?
200k.75k prelims and 125k precast
Total cost of precon
60k
