APC ALL COMPETENCIES MIXED Flashcards
Explain your understanding of the RICS Rules of Conduct?
- Members and firms must be honest, act with integrity and comply with their obligations including those to the RICS.
- Members and firms must maintain their professional competence, ensure that services are provided by competent individuals who have the necessary expertise.
- Members and firms must provide a good quality and diligent service.
- Members and firms must treat others with respect and promote diversity and inclusion.
- Members and firms must act in the public interest, take responsibility for their actions, act to prevent harm and to maintain public confidence in the profession.
What are the professional obligations of RICS members?
- Must comply with CPD requirements
- Must comply with the RICS
*Must provide any information reasonably requested by the standards and regulations board.
Requirements of PI Insurance?
- The policy cover must be made on an each and every claim basis.
- The RICS sets out the minimum level of indemnity based on the company’s turnover the previous year.
- The policy must be fully retroactive.
- The RICS sets out the maximum levels of uninsured excess
- Run off cover must be in place
- The policy must cover past and present employees, directors and partners.
- Must meet limitation requirements
Professional obligations of firms
- Must have PI insurance
- Must publish a complaints handling policy
- Must use RICS branding correctly on business literature
- Firms with a sole practitioner must have arrangements in place for their work to be completed by others in the event of their in-capacity, death or inability to complete their work.
- Must Co-operate with the RICS
- Must report any matters they are required to under the RICS Registration for firms.
- Must provide any information reasonably requested to the standards and regulations board.
What is the purpose of a collateral warranty?
Due to privity of contract a collateral warranty entitles a third party to become party to a contract. The collateral warranty will entitle the client to claim against a party which is directly in contract with the main contractor.
What is PI Insurance?
- Professional Indemnity Insurance is in place to cover the costs of claims against a party due to losses incurred by a party due to a parties professional negligence.
- Professional indemnity insurance protects you against claims for loss or damage made by clients or third parties as a result of the impact of negligent services you provided or negligent advice you offered. Compensation claims can be brought against you even if you provided a service or offered advice for free.
What is indemnity?
In contract law, an indemnity is a contractual obligation of one party to compensate the loss incurred by another party due to the relevant acts of the indemnitor or any other party.
What is the difference between indemnity and insurance?
- Indemnification is an agreement to transfer losses in the even of an event occuring. One party will agree to be responsible. You cannot have insurance without indemnification however you can have indemnification without insurance.
- One party will make an agreement with a second party that in the event of a claim by a third party they will cover the costs incurred.
What types of insurance required by an RICS regulated firm?
Professional Indemnity Insurance
Public Liability Insurance
Employer’s Liability Insurance
Building Insurance (if they have a business premesis)
What types of insurance are relevant to construction?
Professional Indemnity Insurance
Employer’s Liability Insurance
Product Liability Insurance
Contractors all-risk insurance
Latent defect insurance
Public liability insurance
Plant and equipment insurance
Building insurance
What is an acceptable time to read a gift?
The gift should be received an appropriate time. The gift should be proportionate and should not be able to be considered a bribe. All accepted gifts should be contained within the firms gifts register.
What are acceptable gifts?
Gifts that are proportionate and appropriate. They should not be able to be considered as a bribe.
Who can a gift be received from?
Anyone as long as the gift is acceptable, appropriate and proportionate and it isn’t able to be interpreted as a bribe.
What is the process of checking for a conflict of interest?
- Guidance contained within the current edition of the Conflicts of Interest Professional Statement.
- Members and firms must check for and identify actual and potential conflicts of interest, and to take action if any are found.
- Consider any past involvements with the site, client, rival clients, consider relationship of employees with the client. If any past employees are now working for the client. If any employees have any beliefs which could impact their ability to act impartially.
- If any conflicts are identified do not proceed with the instruction unless there is informed consent.
- Evidence of checks for conflicts need to be recorded and the management of any conflicts need to be recorded in writing.
How would you calculate a fee for your services?
The scope of services needs to be established and clarified with the client. Spell out the Clients expectations of you. I would then use experience on previous projects to estimate the time needed to diligently complete each task. I would then apply the hourly rate of the employee who will be delegated to each task. This will then be clearly shown within the fee proposal so the Client can understand how the fee is calculated.
What are the main elements of a fee proposal?
Terms and conditions
Scope of Services
Exclusions
Assumptions
What is included in terms of engagement?
- Clearly outline the services that you will be providing
- How the client’s data will be used
- Company terms of business
- The fee that will be expected, the basis of its calculation and the payment terms.
What would you do as a sole practitioner in the event that you did not have the necessary expertise to provide a good quality and diligent service?
- Ensure that you have the necessary expertise before accepting any work. It is not ethical and is not good practice. If possible i would point the client in the direction of a contact who had the expertise to provide the service.
What must you have in place as a sole practitioner?
- must make appropriate arrangements for their professional work to continue in the event of their incapacity, death, absence from or inability to work
What methods can be put in place to protect two clients confidentiality?
- Exclusivity of staff
- The use of non-disclosure agreements
- Seperate working locations
- Secure document and data storage would be arranged to be used exclusively for seperate teams.
- Information barriers
What would you do if you were offered an unacceptable gift?
- Initially I would decline and explain why the gift is inappropriate.
- If the gift was persisted I would report the infringement to a colleague.
What are the risks associated with conflicts of interest?
A conflict of interest can impact a surveyors ability to act impartially and can prevent the member or firm from being able to provide competent and diligent advice.
Potential accusations of bribery
What would you do if you became aware of a potential conflict of interest?
The client needs to be informed of the potential risks associated with conflicts of interest. To continue the agreed services for the client informed consent to continue the work for the client needs to be acheived.
What are the steps if you wanted to set up an RICS accredited firm?
- Notify the RICS of the intention to set up the firm and acquire the set-up information pack.
- Submit for regulation
- appoint contact officer who will be responsible for communicating with the RICS.
- Acquire compliant PI insurance
- Put compliant complaints handling procedure in place.
- Use regulated by RICS on all business material.
- Abide by all rules and obligations for firms.
What are the types of conflict of interest?
- ‘Party conflict’ - a situation where acting in the interests of a client conflicts with the duty owed to another client related to the same professional assignment.
- ‘Own interest conflict’ - a situation where the duty to act in the interest of a client is impacted by the interests of the same member or firm.
- ‘confidential information conflict’ - a situation where a member/ or firm of the RICS is to keep information confidential to one client conflicts with their duty to provide information to another client.
What are the risks associated with sub-consulting?
- Client may need to have a collateral warranty in place to claim against the sub-consultant.
- Difficulty when agreeing terms with sub-consultant, as sub-consultant may not accept the same terms of appointment as prime consultant.
- If claims are made by the client against the prime consultant it is difficult to claim against the sub-consultant if the sub-consultant goes insolvent.
- Professional indemnity insurance implications - subrogation may be required by the insurer.
*There can also be a blurring of lines between parties responsibilities and some of the responsibilities could be missed.
How were the fees arranged when you consulted the M&E QS to undertake that section of the estimate?
Internally we agreed to give the fee to the colleague who assessed the M&E costs at their hourly rate, from the already agreed Ridge fee. No additional funds were requested from the client as this was already agreed as a section of the Ridge scope of services to provide an estimate of costs.
Was anything in writing required from client confirming they were happy to proceed? (conflict of Interest?)
- Informed consent needs to be in place.
- I have used the RICS template for informed consent contained within the conflict of interest guidance note.
What are the professional obligations of members?
- Comply with CPD requirements. These include 20 hours of CPD of with 10 hours must be formal.
- Cooperate with the RICS.
- Provide information reasonably requested by the Standards and Regulatory Board.
What are the professional obligations of firms?
- Comply with CPD requirements
- Cooperate with the RICS
- Provide information reasonably requested by the Standards and Regulatory Board
- Denote Regulated by RICS on all business literature
- Sole practitioners must make necessary arrangements for their work to continue in the event of their incapacity or death.
- Have compliant PI cover in place
- Have a complaints handling procedure in place.
What is the structure of the RICS?
- The RICS is self-regulated and internally monitored and therefore is not regulated by Government.
- The rules are controlled by bye-laws
- The Governing Council manage and agree the strategy for the RICS.
- Below is the Standards and Regulatory board
- Tina Paillet is the president
What is the mission statement of the RICS?
- To qualify and equip their members to offer the highest standards of professional service.
- To promote and enforce standards.
- Lead solutions to the major challenges facing the built environment through professional expertise in the public interest.
What is the requirements of an RICS complaints handling?
- The RICS require complaints handling procedure to:
○ Must be quick clear and transparent and impartial.
○ Names and contact details of the nominated investigating person must be
stated.
○ Complaint must be investigated within 28 days.
○ Be a minimum of two stages
○ Free in the first stage
○ Have a mechanism for re-dress
○ Second stage must be a third party.
○ All complaints, their progress and outcomes must be recorded.
○ PI insurers must be noted immediately
○ Policy should be issued to clients with terms of business.
What is the ridge complaints handling policy?
- Partner in first stage.
- If unresolved it goes to the senior partner Adrian O’Hickey.
- Following that it goes to the RICS dispute resolution service
- Finally the dispute will go to the Chartered Institution of Arbitration.
What are the procedures for setting up an RICS regulated firm?
- Request the starter pack from the RICS.
- Register for regulation
- Get RICS compliant PI insurance in place
- Write a complaints handling policy
- Appoint an RICS communication officer
- Denote Regulated by RICS on all business literature
- Abide by the rules of the RICS for firms.
What insurances are required for an RICS regulated firm?
- Employers liability
- Public Liability
- Professional Indemnity
- Building insurance if they rent an office.
What does an RICS firm have to submit as part of their annual returns?
- Type of work they are undertaking
- Proof of PI
- Clients they are working for
- Training provisions
- Complaints handling procedures and records
- Whether the firm holds clients money.
What happens if a firm does not complete their annual returns?
Fixed-Penalty
What are the requirements of PII?
- Claims made basis
- Each and every claim basis
- Must meet the minimum level of indemnity
- Must cover past and present employees.
- Must meet the maximum uninsured excess
- Run off cover must be in place - must cover past and present employees (Merrit VS Babb Case Law)
- Must meet the limitation periods
What is the maximum uninsured excess?
As of 2022 the new rules relating to uninsured excess for RICS regulated firms changes.
Firms who have a turnover of less than £10,000,000 will have a maximum uninsured excess of the greater of £10,000 or 2.5% of the turnover.
Firms with a turnover of greater than £10,000,000 do not have a maximum uninsured excess.
What are the limitations for PII?
- 6 years for contracts executed under-hand
- 12 years for contracts executed by a deed.
What is the purpose of PI Insurance?
PI Insurance will cover the a firm in the event they are sued by a client for a breach of professional duty.
Why is run off cover important?
Following the Merrit vs Babb case a surveyor was successfully sued for negligence after their former employer had stopped trading.
What are the requirements for RICS firms who are handling clients money?
- Must have a seperate bank account which is clearly named.
- Client must be able to access the money.
- Must be covered by the RICS Money Protection Scheme.
- A principal must oversee all account functions
- Only competent and knowledgeable staff must have access to the clients money.
- Accounting systems and data must be secure
- The account must not be overdrawn
- Client ledgers must be maintained and a running balance provided.
What is the RICS Client Money Protection Scheme?
- Money protection scheme operated by the RICS.
- It contains provision for any members of the public to be reimbursed their direct loss of funds when using an RICS regulated firm.
- This is provided via an RICS insurance policy.
RICS Motto
Est Modus in Rebus - There is measure in all things
Any information about the RICS?
Founded in 1868 but was given the royal charter in 1881 by the Privy Council.
What are the matters to consider before accepting instructions?
- Are we qualified to do this work?
- Are we competent enough to do the work?
- Do the services we are able to offer meet the client’s needs?
- Do we have any conflicts of interest?
Give examples of when you have prioritised a clients needs?
On my cladding remediation job at Royal Quay in Liverpool, the client representative is a voluntary director of a residents management company. They are therefore not specialised in construction. In addition to the monthly progress meeting on site, we have fortnightly meetings with the clients where we discuss their concerns and explain any implications of issues on site to assist them with any decisions that might need to be made.
How do the RICS rules of Conduct promote a high standard of service?
The Rules of Conduct set out the standards of the RICS they are mandatory guidance for members and firms to follow. Not following these rules can result in penalties and fines.
How do you tailor your advice to your client?
When reporting to Clients reports need to be tailored so that it can be understood by who it is intended for. I will often meet with the clients following the issue of reports to discuss any questions the client may have and to explain any more complex issues with them to reinforce my advice to the client.
What might you vary in your practice when you have a lay client?
RICS guidance on Client Care states that surveyors should avoid using jargon when advising or communicating with those who will not understand it such as lay clients or members of the public. Complex issues should be communicated in clear and simple terms using photographs where necessary. Technical terminology can be used with more specialised clients but knowledge should never be assumed.
What is required within a complaints handling procedure?
- The RICS provide a model form for complaints handling procedures. The process must contain a redress mechanism. The details of the policy should be contained within the Terms of Business.
- The process must be a two stage process which is free of charge in the first stage. The complaint must be investigated within 28 days and must be recorded. Following the receipt of a complaint the PI Insurers should be notified.
- The first stage should be consideration by a senior member of staff or the complaints handling officer.
- Stage 2 should be an independent third party review with the authority to award a redress.
What is Ridge’s complaints handling procedure?
- Ridges complaints handling policy is a 4 stage process in the first stage the complaint is to be issued to a partner at the firm. Following that it should be issued to senior partner. Following that the complaint will go to the RICS Dispute Resolution Service. If the dispute is still not resolved it should go to the Chartered Institution of arbitration.
How do you identify your clients needs?
- Hold Client Account Planning Sessions. Within these sessions I would:
○ Hold discussions about key project deliverables & scope of services required.
○ Review Client Performance Feedback scores and identify areas for improvement.
○ Review any complaints, identify mistakes and best practice methods of working.
What was the benefits of increasing the frequency of the meetings to the client/contractor?
- Client - Understood the progress being made by the contractor and can update on any concerns they have. Can ensure progress is being made in key areas.
- Contractor - Ensure they are focussed on achieving criteria required for. At the time there was a lot of email traffic and staying up to date with issues were the status was changing often was difficult for all parties. This ensured that all parties were satisfied that all parties were not holding up practical completion being acheived.
What is used to present the client with your services?
- Scope of services
What are the benefits of good communication skills?
Good communication ensures that messages are delivered clearly and concisely. This can ensure that parties to a conversation get a better understanding and therefore time is spent more effectively.
Good communication can help to avoid disputes arrising.
What methods of communication can be used?
- Verbal
- Emails and letters
- Presentations
- Video conference
How do cost reports vary for different clients?
Cost reports may exclude some details which are not required to specific projects. In other cases extra information may be included to meet client requirements. For example in my Royal Quay cladding remediation project i include paid and forecast professional fees as these need to be considered as they are paid for out of the Homes England Building Safety Fund grant.
What are the features of a successful negotiation?
- Initially research on the matters under consideration during the negotiation.
- Compile any supporting documentation as substantiation to any claims.
- Clarify with the client negotiable and non-negotiable items
- Try to develop a partnering approach within the negotiation.
- Each party present their case in a calm forum without being interrupted.
- Each party should identify their bargaining position and politely make proposals.
- Following the meeting any agreements that are made should be confirmed in writing and confirmation of the next steps should be made.
How do you negotiate a contract sum with a contractor?
- Following the tender I would analyse the submission to identify areas in costs that were disproportionate to my PTE or cost plan. This would identify elements of the costs that were not priced correctly, overly expensive or contain errors on the the Contractors behalf.
- I would then meet with the client to get final confirmation of a maximum expendable budget for the project.
- Prior to meeting with the contractor i may issue queries for them to review to ensure that they can review in their own time prior to meeting to discuss the contract sum.
- I would then meet with the contractor and establish my position on specific items of negotiation and ask them how they arrived at their figures and see if there is any room for negotiation.
- Following the meeting any agreements that were made i would confirm in writing and issue it to the contractor to confirm.
Give an example of a time you have negotiated?
- On Wammy i negotiated the contract sum prior to entering into the contract.
- I met with the contractor at the clients office to go through the tendering contractor’s submission.
- I highlighted specifically high costs and also a few items which the contractor had included in the price which the client wanted to omit.
- We reached an agreement on the contract sum and managed to get the figure to complete the project for within the clients budget.
- Royal Quay - Contractor Variation Quotations were expensive and i felt were not valued in accordance with the Valuation rules within the contract.
- i got my proposals together with supporting documentation and met with the Contractor to review.
- I stated that the Contractor had not used CSA rates where work of a similar character was already agreed.
- Where the Contractor agreed with me they agreed to use CSA rates where works were of a similar character, making due allowance for any change in the condiitons under which the work is carried out and/ or any significant change in the quantity of the work.
- Where there was no similar work set out in the CSA i had to negotiate with the Contractor to ensure that i thought the Contractor’s price was a fair valuation.
Give some times when a QS might negotiate?
Contract sum during tender
variation costs,
How much did you manage to reduce the contract sum by when negotiating on Wammy?
The tender came down from slightly in excess of £1.7 million to £1.6 million
Are there any risks associated with negotiating down a contract sum?
It may result in reduced quality of work as the contractor might look to save costs by cutting corners. This substandard work could result in future defects which could lead to increased maintenance costs and a reduced lifespan of the construction.
A reduced contract sum could lead to the Contractor trying to recover the lost profits through additional works/ variations. This could lead to potential disputes.
Project delays may arise from cost-cutting measures or due to contractors inability to meet the reduced budget.
The negotiations can start the Client and Contractor’s relationship off on bad foot which could impact potentially collaboration and overall project cooperation.
Negotiations could put financial pressures on the contractor which could impact their cashflow and their ability to pay sub-contractors.
Gift Policy at Ridge
Gifts, entertainment and hospitality including the receipt or giving of gifts, meals or tokens of appreciation, invitations to events, functions or other social gatherings are acceptable provided they fall within reasonable
bounds of value or occurrence, and are given openly.
Can a contract be formed verbally?
Yes they are binding but can be difficult to prove in a court of law.
What did you negotiate on?
Within the contractors final account statement they included an item which had not been formally instructed i communicated with the contractor why this would not be contained within the final account and adjusted the final statement accordingly.
What legislation in the UK relate to H&S?
- Health and safety at work act - Adequate training of staff to ensure health and safety procedures are understood and adhered to. Adequate welfare provisions for staff at work.
- CDM regulations - Intended to ensure that health and safety issues are properly considered during a projects development so the risk of harm to those who have to build use and maintain is reduced.
- Reporting of Incidents, Diseases and Dangerous Occurrences Regulations - Law which requires employers to report certain types of accidents, incidents and ill-health to the HSE.
- Building Safety Act.
What guidance from the RICS relates to H&S?
- Surveying Safely (professional standard) - Sets out the basic, good practice principles for the management of health and safety for RICS-regulated firms and RICS members.
- It sets out the basis for RICS members and other professionals who are involved with the property industry.
How do the CDM Regulations relate to H&S?
The CDM regulations are intended to ensure that H&S is considered during the design stage to ensure that risk of harm during the construction, use and maintenance of a building are reduced.
What are the roles under CDM?
- Principal Designer - plan, manage and coordinate the planning and design stages.
- Principal Contractor - Plan, manage and coordinate the construction work.
- Client - Ensure suitable management arrangements are made for the project and ensure suitable PD and PC are appointed.
How do the new building regulations relate to H&S?
- They introduce a layer of consideration to the design. The design will be considered by the Building Regs PD. Here the BRPD will be responsible for plan, managing and monitoring the design process to ensure the design meets the building regulations.
- For high risk buildings the BSR will become the Building Control body. The BSR is the Health and Safety Executive.
*High risk buildings will need to pass through gateways 2 prior to construction here the applicant must submit for building control approval prior to construction. Following construction they must pass through gateway 3 prior to occupation. During Gateway 3 the BSR will verify if they have the golden thread in place. The golden thread is both the information that allows you to understand a building and the steps needed to keep both the building and people safe, now and in the future.
What are the changes under the new building regulations?.
- The new building regulations deliver the recommendations of Dame Judith Hackitt in her Building a Safer Future Report.
- The regulations introduce a new building control process for high risk buildings. These works will be overseen by the Building Safety Regulator.
- A high risk building is a multi-occupied residential building, hospital or care home that is at least 18 meters in height or has at least 7 storeys.
- The BSR will become the building control authority for high risk buildings.
- The new Building Regulations Require a Principal Designer and Principal Contractor to be appointed.
- Building Regulations Principal Designer - must plan, manage and monitor design work, and cooperate, coordinate and communicate to ensure the design work, if built, complies with the building regulations.
- Building Regulations Principal Contractor - must plan, manage and monitor the building work, cooperate, coordinate and communicate to ensure the building work complies with building regulations.
- Golden Thread - The golden thread will hold the information for those responsible for the building to show that the building was compliant with applicable building regulations during its construction.
- Accountable person - the duty holder during a buildings occupation usually the freeholder, head lessee or a management company.
- Meaningful start - Complex building - commencement of foundations
Subsurface structure of the building
How does the BR PD role relate to H&S?
The BR PD plans, manages and monitors whether the design if built will meet the building regulations. The building regulations now place more responsibilities on responsibilities on responsible people to ensure that the necessary information is in place to ensure that the building is safe to occupy. Especially in high risk buildings.
What is the importance of the BR PD?
The building regulations PD has been introduced to plan, manage and monitor design work and to ensure that the design work, if built, complies with building regulations.
What were the new building regs brought in for?
The Building Regulations were introduced mainly as a response to Grenfell. They target high risk buildings specifically and also aim to ensure that the design is carefully considered during the design stages to ensure that the building will meet the regulations.
What is the aim of the change to the new building regulations?
- To place a bigger responsibility on the duty holders/ accountable person to require the buildings to be considering the Building Safety Act during the design stage of a project. Also, to ensure that the necessary safety information is in place prior to the building being occupied in high risk buildings. (gateway 3 - BSR approval)
What act governs the building regulations?
Building Safety Act 2022
How have you advised a client about the new building regulations?
I recently ensured that my client had a BR PD in place during the design stages. Although not a high risk building i ensured they were aware of their requirements to have sign off from the BR PD to give sign off that the design will if built meet the building regulations.
Are you aware of any issues or features of the new building regulations that are difficult to navigate?
- Design and Build timings and BR PD sign off is currently unclear and untested. I have had the BR PD requesting that information is shared which is still not in place when we want to start on site. The contractor signed the contract but the BR PD requested part m information. A meaningful start on site is not permitted until sign off from the BR PD is received however their programme intended to complete this information once the build had commenced.
How do the new building regulations affect the client?
The Client is responsible for ensuring that their building will meet the regulations. The are responsible for appointing competent people to ensure that the design is approved prior to construction.
Who is responsible for H&S on site?
Your employer and the main contractor on site are responsible for health and safety but all parties must help by being aware of your own and your employers responsibilities.
What do you do to be safe when you attend a construction site?
- Ensure a risk assessment is in place
- Ensure I have the necessary PPE
- Sign in on arrival on site
- Do not walk around site unescorted without a site induction
- Completed my CSCS card to ensure i am aware of how to act safely on a building site.
What should you do if you spot something unsafe on a site?
- Report it to the site manager.
- Try to signal for someone else to get the site manager or to guard the hazard until you find and report it to the site manager.
What would you look for in a contractors H&S proposals?
I would review what risks they had considered and what tasks they risk assessed. I would assess the quality of the submission. I would not approve any rams but i would ensure that activities were suitably assessed and were in place before works were carried out.
Review whether necessary RAMS are in place for tasks which are to be completed.
Ensure the Contractor has a robust H&S policy in place which demonstrates the Contractor’s commitment to maintaining health and safety standards.
Evidence of competences and qualifications of the site personnel.
Procedures for site inductions, briefings, toolbox talks etc.
Ensure adequate welfare facilities are proposed.
Ensure adequate emergency procedures are in place, including evacuations plans, fire aiders and emergency contacts.
Ensure an accident and incident reporting system is in place.
Proposed subcontractor review process to ensure competence for workers on site.
What other documents are used to ensure health and safety?
- Risk Assessment Method Statements
- Health and safety at work act
- CDM Regulations
- RIDDOR
- Building Safety Act 2022
What are the features of a safe site?
- Clean and tidy
- Sign in book
- Tool box talks
- Site inductions
- RAMS in place
- Everyone has suitable PPE
- Accident and injury book in operation
- Near miss records
- Clear pedestrian and public areas
- Clear vehicle routes
How would you ensure a client is aware of their responsibilities relating to H&S?
- I would ensure that they are aware if their project is notifiable to the HSE.
- I would ensure that they have the necessary Principal Designers in place
- Ensure that a competent design team is appointed.
- Ensure competent duty holders are appointed under the Building Reguations
How are Risk assessments undertaken?
- Identify potential hazards
- Identify who might be harmed by those hazards
- Evaluate the risk proposed (severity and likelihood) Risk assessment matrix
- Implementing controls and record the findings
*Review assessments at regular intervals and re-assess where necessary.
What is a Risk assessment matrix?
Risk assessment matrix help to assess the severity of the effect of a risk against the likelihood of it happening to assess the level of overall risk.
What is the Surveying safely guidance?
RICS Professional standard - Sets out the basic and good practice principles of the management of health and safety for RICS-regulated firms.
What are the biggest H&S risks on site?
- Falls from height (Biggest cause of death on building sites)
- Collapse of excavations
- Collapse of structures
- Exposure to building dusts
- Exposure to asbestos
- Electricity
- Protect members of the public, the client and others.
What is the purpose of the H&S at Work Act 1974?
The Act ensures that employers are liable for employees health and safety within the workplace.
What does CDM mean?
CDM stands for Construction Design and Management
What are the responsibility of the Principal Design Role?
The principal Designers role is to plan manage and monitor health and safety risks relating to the project during the construction, use and maintenance phases.
What are the responsibility of the Client role?
- That appropriate duty holders are appointed
- Ensure that principal designer and principal contractor carry out their duties.
- Ensure welfare facilities are provided
What are the responsibilities of the Principal Contractor role?
- Preparation of the Construction Phase Plan
- Organising contractors and coordinating work
- Ensure site inductions are provided
- Prevent unauthorised access
- Ensure welfare facilities are provided.
What is the purpose of the Construction Phase Plan and what does it contain?
- The CPP shows that health and safety has been considered prior to commencement of the works.
- It should be a plan which considered H&S at each phase of the construction plan
- Three main sections will be:
○ Plan - dates and phases
○ Working together - How will you communicate to people on site about the
works.
○ Organise - Identify dangers, name responsible person and intended
supervision.
What is PAS9980:2022?
- Guidance for carrying out Fire Risk Appraisals of External Walls and Cladding of Flats (FRAEW)
- These reports are required to be part of the Golden Threads/ Building Safety File for High Risk Buildings.
What is the guidance relating to addressing fire safety risks associated with cladding?
- PAS9980 - Guidance for the Fire Risk appraisals of External Walls Reports
- Government guidance from the Department for Levelling Up on Cladding Remediation
- Building Safety Fund - High risk buildings
- Cladding Safety Scheme - Non high risk buildings
What is an EWS1?
EWS1 is the RICS accreditation for primarily residential buildings to state that a building façade/ external wall has been reviewed by a suitable expert and is considered is safe in line with Government Guidance.
What is a FRAEW?
A FRAEW is a Fire Risk Appraisal of External Wall
What is a FRAEW required for?
A FRAEW will enable a building owner to assess the risk of fire spreading across their external walls. It can be used to assist whether remediation or other fire mitigating measures are required.
What methods are in place to assess the finances of a company?
- Cashflow
- Balance Sheet
- Profit and loss statement
- Dun and Bradstreet/ credit reports
What should a company do to ensure they are in a healthy financial position?
- Ensure accurate and good practice accounting is in place.
- A positive asset to liability ratio.
- Pay bills in time
- Ensure funds are available before making financial commitments
- Analyse their cash flow
What is the importance of keeping accurate accounts?
- Allows for better decision making
- Avoid penalties
- Awareness of tax liability
- Better awareness of company health
What is a balance sheet?
A balance sheet is a statement showing the assets and liability of a company at any one time.
What is a profit and loss statement?
A profit and loss statement shows the expenditure of a company over a specified time period.
What is the difference between a balance sheet and a profit and loss statement?
A balance sheet give you an idea of the companies value at any one time.
A PNL statement allows for the understanding of a companies spending over an specified period of time.
Why would you use a cash flow when running a company?
It tracks the inflows and outflows in a companies cash and can be used to give insights into a companies financial health and operational efficiency.
What is turnover?
Turnover is the amount of money a business receives over a set period.
What is gross profit?
Gross profit is the amount of money that was generated after direct business expenses are deducted from their turnover.
What is net profit?
Net profit is the turnover minus all other business expenses.
How would you incorporate business planning into your own firm?
Ensure a business plan is in place
Target clients and type of work
Any growth strategy
SWOT analysis
What are the benefits of the having team meetings to see the overall profitability of the business?
- It gives everyone an understanding of how the business is run.
- If our team and the wider business is performing.
- Can be motivational for people to hit their target especially if they receive a bonus for hitting their target.
What methods are there for business planning?
- SWOT analysis
- Business plan
- Cashflow forecast
What is a swot analysis and what is it used for?
It is used to analyse a business. It targets assessing the strengths weaknesses of the business and spots opportunities and threats.
What are you personal development targets?
I am trying to gain as much experience as possible in all areas. I want to grow in competence and earn my chartership. Following that i want to continue my career development before specialising in a specific field of work.
How can fee related targets impact the service you provide?
Can lead to someone taking on too much work that they cannot diligently complete. The workload has to be manageable so it is important to ensure that fee proposals are well considered to ensure that a manageable workload can meet the targets.
What alternative methods can be used to assess a business?
- Key Performance Indicators
- Goal setting
- Business financial statements
- Customer satisfaction assessments
- Employee satisfaction
- Competitor analysis
Measure of profitability
What would go into a business plan?
- Business description
- Market analysis
- Organisation/ Business structure
*Description of services provided
*Marketing strategy
*Operational plan - Financial Plan
- Risk analysis and mitigation
*Target clients/ areas for growth
*Key clients
What is a SWOT analysis?
An assessment undertaken to review the strengths and weaknesses of a business and to understand the strengths and weaknesses.
How does the JCT suite deal with dispute resolution?
- The JCT contract includes provisions for disputes to be resolved via mediation, adjudication and arbitration.
- There is a Supplemental provision within Schedule 2 for a party to notify the other if an event is likely to lead to a dispute. The nominated persons stated in the contract particulars will meet as practicable direct and in good faith for negotiations to try and resolve the matter before it is escalated.
Why might a conflict occur?
- Disagreement due to poor record keeping
- Disagreement regarding employers valuation
- Disagreement over value of an instruction
- Disagreement at final account
What methods of dispute resolution are there?
- Alternative and formal
○ Mediation
○ Conciliation
○ Negotiation
○ Adjudication
○ Arbitration
○ Litigation
What guidance does the RICS give relating to this topic?
Within the black book there is a guidance note titled ‘Conflict avoidance, dispute resolution in construction.
What are the formal dispute resolution methods?
- Arbitration
- Adjudication
- Litigation
What are the benefits of each method?
- Arbitration - Extended period, private, costly, binding
- Adjudication - Private, binding, quick (28 days), labour intensive, costly
- Litigation - Public, costly, can take a long time, legally binding
What legislation in the UK relates to data management?
UK GDPR
How does Ridge protect client data?
- Only holds information that is required for the purposes of carrying out the required tasks.
- Stored in encrypted cloud based systems
- Only accessible to people who require the information.
- Staff annually take GDPR training
What methods are available to ensure data is protected?
- Encrypted/ password protected systems
- Ensure employees are aware of their responsibilities (training)
- Ensure paper containing personal data is shredded when no longer required.
- Regular testing of security levels.
What did GDPR supersede?
Data Protection Act
What does the GDPR require?
- GDPR places requirements on companies to be responsible for the data they manage and process.
- The 7 principles of the GDPR include lawfulness, fairness, transparency, storage limitation, accuracy, data minimisation, integrity and confidentiality and accountability.
- Individuals have key rights regarding their personal data. The right to be informed, the right of access, the right of rectification, the right to erasure, the right to restrict processing, the right to object and the right in relation to automated decision making and profiling.
What are the roles under GDPR?
- Data controller
- Data processer
- Data Protection officer
- Supervisory authority
- Data subject.
What are the implications of not meeting GDPR requirements?
- Private claims for compensation and damages.
- Reputational damage
- Loss of consumer trust.
Where do you source your information to carry out your role?
Trusted sources such as government studies, spons, BCIS, previous projects and sub-contractor quotations.
Where are reliable places to source data?
Recent tender returns, CSAs, BoQs, Benchmark data, Spons, BCIS, Government sources of data.
What are the benefits of a diverse workforce?
- Broader range of experiences can assist creativity and problem solving
- Better performance within global markets
- Increased reputation
- Can lead to increased employee satisfaction
What is unconscious bias?
Social stereotypes that an individual forms outside of their own conscious awareness.
What are the benefits to the RICS of diversity?
Greater creativity and innovation which is obviously invaluable in are rapidly evolving world.
How do you think the RICS should be increasing the amount of diversity?
Educating the next generation of the opportunities available within construction and the demand for careers within the industry.
Give an example of a time where you experience unconscious bias?
When visiting site with a placement QS who was older than me. The contractor assumed that I was the placement QS and the older surveyor was the senior. I had to explain who was who and that the contractor had made an incorrect assumption.
What is the definition of inclusive environments set by the Construction Industry Council?
An inclusive environment does not physically or socially segregate, discriminate or isolate. It readily accommodates and welcomes diverse user needs.
How do the building regulations relate to inclusive environments?
Part M of the building regulations relates to access to and the use of buildings, it ensures that people are able to access and use buildings and their facilities.
What are the principles of inclusive design?
- Uncover user needs and pain points
- Holistic approach
- Awareness of potential user needs
What are some features of an inclusive environment in the work place?
- Prayer room/ meditation spaces
- Disabled access
- Rising desks
- Areas to take medication
- Hearing loops
What are the benefits of an inclusive environment?
- Able to employ a wider talent as the facilities are welcoming to a wider talent pool.
- More pleasant space for people to occupy
- Higher building user satisfaction.
Why would a client want their building to be inclusive?
- More appealing to potential tenants/ attract more talent to work on site.
- Better reputation
- Higher occupancy rates
What are the benefits of an enjoyable environment?
Links to sustainability as it can improve social sustainability.
Improved employee engagement and productivity.
What does it mean to be Building Regs Part M41 M42 and M43 compliant?
- Category 1: Visitable dwellings
- Category 2: Accessible and adaptable dwellings
- Category 3: Wheelchair user dwellings
What were the topics of your dissertations?
- Embodied carbon - awareness and the importance of targeting reductions in Embodied Carbon Emissions it to meet the carbon reduction targets
- MEES - will EPCs start to have an increased influence of rental and market value of properties.
What are the benefits of sustainable construction?
- Energy efficiency
- Carbon footprint reduction
- Lower running costs
- Higher occupier satisfaction
- Reduced life cycle costs
What are the MEES?
Minimum energy efficiency standards - came into force in England in Wales in 2018 and requires rented property to have an EPC rating of E or above.
What is sustainability?
Sustainability was defined by the Brundtland Report as being able to meet the needs of the present without compromising the ability of future generation to meet their own needs.
What are the three pillars of sustainability?
- Social
- Economic
- Environmental
What sustainable building methods are you aware of?
- PVs
- Green roofs/ walls
- Natural SUDs
- Air/ Ground source heat pumps
- Rainwater harvesting
What is the Paris agreement?
- A legally binding treaty signed at COP21 which required the United Nations to undertake an ambitious effort to combat climate change.
What is climate change?
Refers to the long-term shift in temperature and weather patterns.
What is associated with the BREEAM process?
- BREEAM is a holistic assessment tool for buildings.
- It assesses all areas of a building in its ability to be sustainable.
- Sustainable construction methods as well as research into other factors and sustainable design can result in a better BREEAM score.
BREEAM process box ticking - pre-construction
There are a lot of pre-construction and design stage credits. These can be earned through extra site investigation, ecology reports, security and transport reports. This process can be costly when targeting higher BREEAM ratings.
How does the LCA BREEAM tool work?
- It is an excel tool produced by the BRE. Building features are inputted into the sheet. The sheet calculates the LCA score which can be used to allocate a number of credits.
- Only 3 out of 5 credits available with this tool and a more advanced assessment is required to achieve the 4/5 credits. However this comes at a cost as a sustainability consultant will usually undertake this study.
What were the benefits of incorporating the sustainable building features?
- Lower emissions
- Cheaper running costs
- Occupier satisfaction
- Reduced lifecycle costs
- Improved corporate image
How were the sustainable features shown to be beneficial?
- M&E consultant produced BRUKL reports and SBEM and it showed the building to have an increased energy performance with the sustainable features.
Difference between operational and embodied carbon?
- Operational carbon is the carbon produced during the use phase of a building.
- Embodied carbon is the carbon which is produced during manufacture and construction. (Supply chain emissions). It is carbon emissions that are contained with the building materials
What would be the process of starting off the BREEAM project?
- Instructing a BREEAM assessor.
- Notifying the BRE
- Earlier in the design phase this occurs the easier it is to get a higher BREEAM score.
What other ways are there to assess the sustainability of a building?
- TM54- Operational Energy Assessment
- LEED
- SKA Rating - RICS (recently transferred ownership to independent party)
Report for assessing operational carbon.
CIBSE - TM54 - Operational Energy Assessment
What are the cost impacts of including BREEAM requirements?
- A recent study undertaken by a colleague at ridge found that on a £6 million project.
- Very good costs 3.5% and Excellent costs 4.5% additional to the cost plan.
- As project value decreases the percentage will increase.
Do the costs balance out over the life cycle of the building?
- There are studies which show the impact of BREEAM scores directly impact the rental and market value of a property.
- Whether they would balance out would depend on a project to project basis though.
How long does it take to pay back the additional cost?
- Based off my colleagues study i understand it has an around a 3.5%-4.5% increase in total cost on a £6,000,000 scheme.
- From studies i have seen similar % increases can be seen on market and rental values.
- Therefore i would say that on larger scheme the payback would be relatively quick and on smaller schemes it may take longer to pay back.
What building regulations relate to sustainability?
- The building regulations include standards which relate to the environmental impact of buildings. These include standards on the conservation of fuel and power (part L), ventilation (Part F), drainage (Part H) and waste storage (part H).
- You could also say that Part M relating to accessibility as it will link back to social sustainability as buildings will usable to more people and therefore improve the wellbeing of people.
When are EPCs required?
EPCS are required when selling, renting or constructing a building in the UK.
What buildings require EPCs?
- Residential
- All commercial buildings will also require an EPCS. With the exception of:
○ Places of worship
○ Stand alone non-dwellings of less than 50m2
○ Industrial sites, workshops and non-residential agricultural buildings with low energy demand.
○ Temporary buildings with a planned usage time of 2 years or less.
○ Non-residential agricultural buildings which are used by a sector covered by a national sectoral agreement on energy performance certification.
What is the BREEAM process?
- The BREEAM process is typically most successful when the assessment process starts as early in the design stage as possible.
- A BREEAM assessor is appointed and the BRE are notified.
- There are then a series of credits that can be achieved for proving certain criteria have been acheived. (categories: management, health and wellbeing, energy, transport, water, materials, waste, land us and ecology)
Throughout the project these credits are accrued and then the approved assessor will then certify the projects overall score at the end.
What did you do to calculated the Life Cycle Assessment?
- BREEAM provide a assessment tool for a basic assessment.
- There is a library provided which links to a database which provides life cycle information.
- Once all the building materials have been entered it allocates a score which will either give 1, 2 or 3 credits.
- If you want to acheive additional credits in this area you would need to instruct a more in-depth assessment which would be carried out by a sustainability consultant.
How does an air source heat pump work?
- Air source heat pumps work similar to an inside out fridge.
- Outside air is drawn in over a network of tubes filled with refrigerant gas, which circulated at -28 degree celcius to extract heat energy from the air outside.
- The gas then passes through a compressor which increases the pressure and temperature causing it to change from a cold gas to a hot liquid.
- The compressed hot liquid passes into a heat exchanger that heats water.
- The refrigerant then turns back into a cold gas and starts the cycle all over again.
How much was the system?
- £65,000 for the heat pump and the underfloor heating system.
* In comparison the traditional heating system was around £50,000.
How did the maintenance costs compare?
Maintenance costs for a service are higher but overall when assessed against the savings made during the operation phase it still works out to be a worthwhile investment.
What procurement routes are available?
- Traditional
- Design and build
- Management contracting
- Construction management
What is the difference between procurement and tendering?
- Tendering is a stage of the procurement process
- Procurement is the process of acquiring goods or services.
- Tendering is the process of attaining the lowest price for someone to provide the service.
Positive and Negatives of Traditional Procurement
Cost certainty, client takes design responsibility, longer process as no overlap between design and construction. Reduced cost. Contractor has no design input
Positive and Negatives of Design and Build?
Cost certainty, contractor takes design responsibility, can have some overlap between design and construction. Can be split into two stage to assist with buildability. Can be higher cost than traditional. Client has reduced control of design and therefore risk of lower quality.
Positive and Negatives of Construction Management?
Can reduce costs as do not have to pay overheads and profit as construction manager is employed by the client for a fee,
can have overlap between design and construction,
Higher risk to the client,
low cost certainty,
increased client control.
Positive and negatives of Management contracting
Open book,
contractor employs supply chain,
client takes design risk,
low cost certainty
Overlap between design and construction
Can get contractor design input to improve buildability.
What are the types of tendering available?
- Single Stage
- Two-stage open book
- Negotiated
- Framework agreements
- Public procurement
Why would you recommend a certain method of tendering/ procurement?
Need to consider the programme,
clients needs,
current design stage,
budget flexibility,
complexity of the project
What is involved in public procurement and how does it differ to private?
- Public procurement often uses tendering portals and is open for anyone to tender.
- It will follow public procurement rules and will require everything to be carried out in accordance with public procurement regulations. The aim is to ensure value for money and to avoid bribery and ensure public funds are spent transparently.
What did you include in the Kidsgrove tender documentation pack?
- Within the Kidsgrove tender pack I included:
○ Draft contract
○ Instructions to tenders
○ Preliminaries
○ Form of Tender
○ Employers general and design requirements
○ Design information
○ Tender evaluation criteria
○ Document register
○ Appendices - included other information such as site investigations, planning conditions, Pre-Construction Information
What frameworks have you used?
- ICN and public procurement portal
- Also used the Lloyds bank framework
What frameworks are you aware of?
- Procure partnerships
- ICN
- Public procurement
- PAGABO
- Homes England
- Barclays
- Lloyds Bank
- Handelsbanken
- Together money
- Paragon
How can tenders be assessed?
- Tender assessment matrix
- Quality and cost ratio can be tailored to Employer’s requirements
- Lowest price compliant bid
- Most economically advantageous tender - A weighted process brought in by the European Parliament in 2014. Forms the basis for public procurement assessment in the UK post BREXIT. Post BREXIT this is called Transforming Public Procurement Green Paper.
What basis have you assessed tenders?
- As the tender was public procurement and was open to all contractors i prioritised quality to ensure that the contractor appointed was suitably qualified to complete the works. Budget was also important to the client on this project so I couldn’t advise to increase the weighting of quality more than this.
- Monmouth Road purely cost
- 2 stage it is also on a cost and programme assessment
Do you feel like the contractors have more power than previously?
Although I haven’t been in construction for an extended period of time. I am aware that there has been a reduction in the amount of single stage tenders. Contractors especially in the sectors which I work favour two stage tenders with PCSAs as they are not willing to expend funds at risk of not being awarded the job. Similar to in my case study when we didn’t use a PCSA contractors are not willing to commit to providing their best price.
What is a PCSA?
- A pre-construction services agreement is used to secure early involvement of a contractor within a two-stage tender. It is often used to gain contractor input within the design stage of a project. Contractor’s will therefore be contractually obliged to provide services for a cost. There is also no guarantee that they will be appointed after the scheme.
What is the purpose of a PCSA?
A PCSA is used to get early contractor involvement in a two stage design and build contract. Early contractor involvement can increase buildability especially when the contractor has specialised knowledge within the sector. It can also give a contractor a better understanding of the project and reduce the amount of risk contained within their second stage tender price, however, it does reduce competition so them savings can often be cancelled out.
What PCSA did you use?
JCT PCSA (General Contractor) as opposed to the alternative JCT PCSA which is JCT PCSA (Specialist)
What can be used to allow contractors to start on site early?
A letter of intent is a document stating the preliminary agreement of one party to do business with another. It is a way of letting procurement, site preparation or indeed construction works commence before the negotiations for the details contruction contract have been agreed.
What are the features of a letter of intent?
For a letter of intent to be binding it must contain the three essential elements of a contract (offer, acceptance and consideration) as well agreement, intention to create legal relations and consideration. For a contract to be binding the both parties must have the capacity of mind.
Why did you not recommend traditional procurement on the Wammy?
Design was not fully developed and client wanted the contractor to take responsibility for the design and still provide the cost certainty. We also wanted to shorten the programme and get some overlap between technical design and commencement of site establishment and substructure.
What was your recommendations to the client regarding the assessment matrix?
I recommended the use of a 40/60 assessment matrix to cost to quality. The tender was public and therefore I wanted to ensure that the contractor who wins the tender was suitably qualified.
How do you advise a client following a tender process?
- Within a tender report i would initially describe the tender process. I would then input the tender returns and make some initial comments and observations. I would then make some adjustments where a contractor appears or has left out something which was required. I would then make further analysis and then make some recommendations for proceeding.
- With the Wammy I recommended that we meet with the contractor who provided the best submission however they were slightly more qualified to complete the scheme. The contractor who submitted the lowest price did not have the SSIP principal contractor accreditation and when assessing the tenders against the criteria it wasn’t the lowest contractor that won the tender.
What do you include in a tender report?
- Description of tender process
- Tender returns
- Initial observations
- Adjustments to tender returns
- Detailed analysis
- Tender assessment criteria and scores
- Recommendations and conclusions
How does a value for money report differ from a tender report and when might you use one?
I would use this when assessing a single contractor either in a negotiated tender or in the second stage of a two stage tender. I would typically assess the contractors best and final offer against benchmark data or my own pretender estimate. I would comment on options for proceeding and whether the offer meets the clients objectives. I would make recommendations and advise on whether i think they should receive.
Why did you recommend a design and build route on the Royal Quay project?
On cladding remediation schemes specifically contractors prefer this route. Cladding contractors are specialised in the field and often carry specialised design teams who are experienced in this type of design. They are more suited to carry the design risk than the contractor.
What is open book procurement?
Open book procurement refers to a financial agreement between Contractor and the Client where the Contractor provides the Client with full access to all cost-related information associated with the project.
The aim of an open book arrangement is to build trust and foster collaboration between the client and contractor.
How did you assess if a contractor was providing a fair price for the works?
I assessed work elements on a cost per square meter basis against benchmark and past project information. I would compare the submission against a pre-tender estimate where appropriate.
What guidance do you refer to when selecting procurement routes?
- Within the black book there is a guidance note relating to procurement and tendering strategies.
- It advises on the strengths and weakness of different strategies.
- It also advises on the most appropriate ways of assessing tenders.
- There is also the NBS guide to tendering
What is the NBS guide to tendering
Published in 2011
Provides simple rules and procedures to encourage best practice in tendering for architects, surveyors, designers, engineers, and project managers.
Relevant to projects of all sizes the focus is on single-stage selective tendering based on up-to-date UK legislation.
Scoring matrix – what type of matric was used and why?
- A 40:60 Cost to quality split was used.
This ensured that the contractor who won the tender was suitable qualified to complete the works.
What are the advantages and limitations of matrices vs ‘freehand’ scoring?
- The aim of matrices is to reduce/ eliminate the need for opinion when assessing tenders. Obviously that is difficult when assessing quality however the criteria for assessing the quality should be clearly stated within the tender documents.
- Freehand scoring can give a party more flexibility to favour a contractor if they lost the tender but the client believes they will carry out a better job.
How many people completed the matrices and what was the variation? Was there a normalisation procedure?
- We received 3 tender returns.
- Although one contractor provided a lower submission the quality of their submission was of a worse level.
- They did not provide adequate H&S proposals or method statements.
- Following a review of their accreditations the Principal Designer did not believe the cheaper contractor was suitably qualified to act as the Principal Contractor under the SSIP (Safety Schemes in procurement).
How was the pricing document structured? i.e. what level breakdown and in what format?
- The pricing document was structured like an elemental cost breakdown contained within BCIS.
- It allowed for some added breakdowns of cost to split out elements of the sub and super structure to assist comparison.
- It also included a preliminaries breakdown so costs could be seen split out.
- I used a protected excel document so all contractors were completing their tender submissions on a comparable basis.
- I included sections of the document where contractors could add in additional lines where necessary to include personalised rogue items.
What are the limitations of cost/quality scoring split?
There is always potential for a contractor to try and play ‘the game’ and try to take advantage of the scoring system to win the tender even if their quality is not of an acceptable level.
How were the cost elements scored?
- Cost elements were not directly scored overall cost was pro-rated into a percentage of the 40%.
- The quality element consisted of a series of questions that myself, the design team and the client answered and came to an agreed average for each score for each contractor. This was then calculated as a percentage of a possible 60%.
- The scores were combines to give an overall percentage out of 100%
- The questions included, quality of submission documents, H&S proposals, references, past project experience.
What assessment criteria is available to assess tender submissions?
- Tender assessment matrices
- This can typically be a split between cost and quality.
- However, other factors can be applied such as Technical merit, aesthetic and functional characteristics, accessibility, social characteristics, environmental characteristics, innovative characteristics, after-sales service and technical assistance, delivery conditions such as date for completion.
What is PFI (have you heard of it?)
Private Finance Initiative - When a private company is contracted to complete and manage a public project.
Do you know what a measured term contract is?
A measured term contract is type of contract typically used for maintenance work. It involved carrying out a set of works for a set period of time.
What is a form of tender?
A form of tender is used during a tender process for a contractor to confirm their bid. They will typically state their price and programme length for completing the works
It also acts as a declaration where the contractor will confirm they have understood the tender and they accept the various terms and conditions.
What is a PCSA?
- A PCSA is a form of contract that can be used to employ a contractor in a two-stage tender process to carry out pre-construction services.
- It allows the contractor to collaborate with the employer and design team to develop detailed designs, develop the main works contract or to compile specialist tender documentation.
What forms of PCSA do JCT produce?
- PCSA (Main contractor)
- PCSA (Specialist)
What are some risks with a PCSA?
- Services to be provided need to be clearly outlined.
- Method for payment and arrangements around payment should be clear.
- Client loses leverage for best price with the contractor during the second stage of the tender.
- Competitor contractors may lose interest in the project when they find out that another contractor has been working on the project under a PCSA.
- Price will likely be higher than in a single stage tender.
What do you mean by a 40/60 split?
- Tender submissions were assessed on a 40/60 quality to cost split.
- The lowest tender would score 40/40 and then the higher tenderers are assessed at a percentage of that on a pro-rata basis.
The quality assessment is assessed against a series of criteria which are quality of submission, references, health and safety and relevant experience.
What is the contruction playbook?
- Document developed by the government for public project strategy.
- Focuses on establishing project teams early and ensuring projects are planned properly before commencing.
What CPD sessions have you been to recently on construction tech?
Thermal bridging in construction
Piling basics
Can you explain the build up to a warehouse frame?
- A steel portal frame is typically the preferred structural solution for a warehouse. They provide maximum open space.
- The main weight bearing elements are the columns and the rafters. The columns are fixed into the substructure via baseplates. The structure is enclosed via cladding rails and an external cladding system typically.
- If required central columns will often be used to support the weight of the roof.
What types of piling are there?
- End bearing piles
- Friction piles
What types of piles are there?
- Bored piles / CFA - transfer weight through soil deep to the deep strata and soil layers resulting in minimal settlement.
- Driven piles - timber, precast concrete or steel can be driven into the ground displacing soil causing it to compact around the pile increasing the load bearing capacity.
- Driven and cast in situ - A steel casing is driven into the ground and in situ concrete is poured into the casing.
- Aggregate piles - Aggregate is used rather than concrete. A hole is bored and a casing is inserted. The aggregate is vibrated and compacted as the casing is withdrawn.
- Sheet Piles - interlocking edges that are driven into the ground which can be used as a retaining structure
- Secant piles - forms a structural wall which can be used to acheive water tightness.
What would you allow for when estimate the cost of piling?
When carrying out my PTE for Kidsgrove i estimated the cost of piling.
Initially I allowed for excavation and making up of levels.
I then allowed for:
Allowance for mobilization and Piling mat
Linear length of CFA piles to be included for each type of Pile. (all mine were 600 diameter)
The pile caps and reinforcement
Ground beams
What is a suspended floor
- A ground floor with a void underneath the structure
- A suspended floor allows for ventilations and air movement flow the timber joists to prevent the formation of damp.
- Different systems can be used such as timber or block and beam
How are buildings ventilated?
- Natural:
○ Windows
○ Doors
○ Velux
○ Atrium style ventilation
○ Air bricks (suspended floors) - Mechanical:
○ MVHR system
○ Extraction fans
○ Vacuum system
How do the building regulations effect construction?
Building regulations set the legal standards of construction within the UK. They are to ensure health and safety of people in and around buildings. They now incorporate measures for the conservation of fuel and power as well as the provision of facilities for the disabled.
What methods of construction are used to build housing?
- Timber frame
- Traditional load bearing structure
- modular
- 3D printed housing
What types of frame are there?
- Timber
- Concrete
- Steel
- What are the advantages and disadvantages of Timber frame?
Advantages:
* Fast construction
* Sustainable
* Suitable for pre-fab off site construction
* Low dead weight
Disadvantages:
* Naturally flammable
* Risk of rot
* Reduced sound insulation
* Alterations are difficult
* Higher maintenance costs
* Limited to heights of building it can be used for
What are the advantages and disadvantages of Steel frames?
Advantages:
* Easily recycleable
* Quicker construction
* Can acheive long spans
* High strength
Disadvantages:
* Needs to be fire protected
* Shorter life expectancy than concrete
* cost fluctuations
* Thermal conductivity
* Risk of corrosion
What are the advantages and disadvantages of concrete frame?
Advantages:
* Typically fire proof
* High thermal mass (Good insulation)
* Good sound insulation
* Not as susceptible to cost fluctuations
* Resistant to high heat and high winds
Disadvantages:
* More susceptible to seismic activity
* Not recyclable
* Not very environmentally sustainable
* Slower construction method
* Heavy dead weight
What issues did you have relating to the quality of workmanship at Lichfield Street?
- Extremely high number of defects
- Poor bricklaying
- Cavities full of rubble
- Roof tiles not properly fixed in accordance with manufacturers advice
- Manholes not acceptable to highways
What types of roof are there?
- Flat
- Pitched - Gable, hipped, mono
- Mansard
When might a ground bearing and suspended floor be used?
- Suspended floors can be suitable on uneven ground or when cables need to be ran under the floor. They also allow for good natural ventilation which can prevent damp. Useful in flood-prone areas.
- Ground bearing - may only be used where the depth of infill is less than 600mm deep and properly compacted.
What are Rigid inclusions?
- They are a type of alternative piling design. Typically used in poor ground conditions. an auger is used to drive a casing into the ground.
- The casing is then filled with either a vibro compressed stone aggregate or an in situ concrete.
- Offers savings as no pile caps or cropping is required
How would you estimate the cost of a raft foundation?
A raft foundation typically involves a thick, heavily reinforced concrete load bearing slab. I would typically allow for any excavation and making up of levels. Formwork required, concrete and weight of reinforcement. I would base this off a structural engineers design or a similar building making necessary assumptions and exclusions.
How were you made aware of the poor ground conditions?
Several detailed ground investigation reports were carried out. The Client Peel is very aware of the risks associated with building on docklands. The client instructed a detailed phase 2 ground investigation report which tested the quality of the soils.
What guidance did you refer to when the client was concerned regarding the retaining wall at Lichfield street?
- I referred to the brick manufacturers recommendations as well as the British standard for construction of retaining and garden walls. Both of these advised for the use of capping’s/ copings when building retaining walls.
What is the purpose of a weep hole in a retaining wall?
Are an outlet for water to escape from the soil which is being retained by the wall. Soil which is retaining a lot of water would be heavier and therefore mean that more pressure would be applied to the wall laterally. British standards also advise that all retaining walls should have weep holes.
What type of bricks are used in retaining walls?
I believe they were just a frost resistant clay brick manufactured by Wienerberger. However I would have to confirm.
What is a retaining wall?
A retaining wall is a wall which retains soil behind it to prevent it from falling in the way it naturally would.
What is the purpose of the capping/ coping
The capping/ coping prevents the water from sitting on top of the wall and saturating the mortar. This water will effect the long term durability of the mortar joints. The coping/ capping should also have a overhand and drip, which diverts the water away from the face of the wall. This helps to prevent staining and also water damage to the mortar joints to the face of the wall.
What is the purpose of the drip on a retaining wall?
The drip diverts water away from the face of the wall. This helps to prevent staining and also water damage to the mortar joints to the face of the wall.
Why was the manufacturers recommendations referred to?
The Employer’s Requirements stated that the contractor was required to build in line with manufacturers recommendations.
How do you estimate the cost of the steel frame?
- Where I have a steel design I would calculate the tonnage of the steel members by using the KG/m weight of each steel member and the length of each type of steel. I would then get a rate for steel. I would then make an allowance for sundries, ancillaries and connections.
- Where no steel design is in place I would benchmark from a previous similar sized frame and apply a rate per square meter to the GIFA of the building. I would typically allow for around 50kg/m2 of steel say for a warehouse with high eaves.
How were the ground conditions investigated?
- Ground settlement analysis
- Phase 1 and 2 GI
- Dock wall survey
- WAC Testing
Was there any contaminated ground?
- Yes there is contaminated ground on the site.
- The ground investigations sound evidence of hydrocarbons on site.
- The contractor suggested using borrow pits as a value engineering solution as an alternative to disposing contaminated material off site.
What contaminants were found on site at FINSA?
Hydrocarbons and Creosote
What types of truss are there?
- The structural engineer selected various truss options however when the QS reviewed the suggestions they still did not provide the necessary saving and a the clear 52 m span had to be sacrificed for a hit and miss propped frame with central columns. The tonnage required for the clear span was too heavy to be affordable within the budget.
- Pratt
- Warren
- Howe
- Northern Light
- Fink
Why would some truss designs be cheaper than others?
The structural engineer selected various truss options however when the QS reviewed the suggestions they still did not provide the necessary saving and a the clear 52 m span had to be sacrificed for a hit and miss propped frame with central columns. The tonnage required for the clear span was too heavy to be affordable within the budget.
What type of cladding was on the warehouse at FINSA?
Insulated trapezoidal cladding fixed to horizontal rails and purlins on the roof.
What risks are associated with building a warehouse near a dock?
- Weight restriction near the dock edge
- Poor ground conditions
- A lot of contaminated ground
- Flood risk
- High water table
What risks are associated with building a warehouse near a dock?
- Weight restriction near the dock edge
- Poor ground conditions
- A lot of contaminated ground
- Flood risk
- High water table
Where any works to the dock required?
Works to strengthen the dock wall were required. However these were client funded works and Peel covered the costs so I never had to review any proposals.
How is cladding fixed to the external frame?
Cladding is fixed to horizontal steel side rails, longitudinal bracing on the external walls and purlins and roof bracing on the roof.
What suggestions did you make regarding the substructure to lower the costs? (FINSA)
Lowering the costs in this area was difficult as the original foundation design required around 33,000m of piling. In a design team meeting i questioned if there was an alternative to the piling and asked if raft or rigid inclusions were possible. The Structural engineer investigated the possibility of the rigid inclusions and found and the QS suggested a saving of around £250,000.
Why were these options cheaper options than the original piling design?
Rigid inclusions is typically cheaper than standard piling methods due eliminating the need for pile caps.
There is also a reduced amount of reinforcement required.
The concrete or aggregate used can also be a lower quality.
There is also no need for pile cropping.
How does a rigid inclusion design work?
- They are a type of alternative piling design. Typically used in poor ground conditions. an auger is used to drive a casing into the ground. The casing is then filled with either a vibro compressed stone aggregate or an in situ concrete.
- The are a ground improvement solution and the aim is to directly improve the compressive strength of the soil.
What external works were required?
New road and car parks to be formed, external fence, some works to the dock wall and some soft landscaping.
what was the issue with the brickwork at Lichfield Street?
- Perp ends did not align straight up the building.
- Mortar staining over brickwork
- Issues with rubble and mortar within cavities.
What quality aspects do you look for when visiting site as a QS/EA? Do the roles differ? As an EA can you sign off on quality?
- The EA has the responsibility when reviewing work on site to assess the quality of the work.
- Typically I would advise where I do not have the required expertise to give good quality advice on the quality I would recommend appointing a clerk of works to review.
- The quality should be assessed against the standards set out in the contract. The EA is to verify compliance with the Contract Documents.
What are rigid inclusions?
- Rigid inclusions are a ground improvement solution used typically in poor ground conditions.
- They are typically pillars of aggregate or poor quality concrete.
- A casing, sleeve or cage is driven, drilled or bored into the ground and filled with the chosen material.
- The rigid inclusion then forces the soil laterally away from itself causing the soil to become more compact and increase its load bearing capacity.
- This will then typically be used with a more traditional sub-structure design such as a pad foundation which the frame can then be built onto.
Why doesn’t everyone use Rigid Inclusions if they’re so much cheaper than piles?
- I believe they offer a saving where the amount of piles required is high and the ground is bad meaning the number of piles is high.
- Where the number of piles is low they will probably be cheaper but on a large scale it can offer savings.
- This can be in areas such as reduced reinforcement within pile caps.
- Cheaper material can be used in a rigid inclusion than a pile.
- Less concrete can be used as the pad foundation can be smaller than the pile caps.
How does a truss frame differ from the original design?
- A truss frame can involve a reduced quantity of steel in terms of Tonnes especially when working with longer spans.
- This is due to the structure of the truss having a higher weight bearing/ mass ratio than the standard initial rafter design.
- The truss reduces the floor to ceiling height and therefore the usable space.
What span was achieved and what was the cost impact?
- Columns down the centre of the structure were required to meet the budget.
- Therefore a 26m span.
- A truss design was selected as well to reduce the tonnage of steel required.
How are metal stud partitions contracted?
- Track rails are fixed along the floor and ceiling with studs running between them.
- Insulation is then put in between studs and plasterboard will typically be fixed to the studs.
Benefits of steel partitions over timber?
- Steel will not warp like timber
- Timber is combustible
- Timber can rot.
- Steel is resistant to termites
How are M&E works phased?
- M&E works are typically phased into 1st fix and 2nd fix.
- First fix will involve laying cables and pipework and mainly things that will not be visible when the project is complete.
- Second fix will involve outlets and socks. Things that will be visible on completion.
How big was the building at finsa?
52m x 300m approximately 15,000m2
How deep were the piles going to be required to be?
17m piles had been allowed for initially but following further ground investigation they were increased to 24m
Were you not the QS?
No were the Tenant project monitoring/ advisory role
Can steel span 52m?
- Originally the steel portal frame was intended to span 52 meters.
- This is a long span but would be constructed of 2 large 26m rafters.
- Although i am aware of a building in Italy which steels which span over 150m. This will obviously come with extremely challenging logistical situations.
What type of drainage is used for storm water?
- Attenuation tank - An attenuation holds and limits the amount of water that can flow into the local sewer system as a flood prevention method.
What are the RIBA plan of work stages?
- Stage 0 - Strategic Definition
- Stage 1 - Preparation and Briefing
- Stage 2 - Concept Design
- Stage 3 - Spatial Coordination
- Stage 4 - Technical Design
- Stage 5 - Manufacturing and Construction
- Stage 6 - Handover
- Stage 7 - Use
What stage should a design be at before a tender?
- This depends on the procurement route selected.
- Design and Build can be anywhere from stage 1 to stage 4. The more developed the design is at tender stage will mean that the Client has more control over the design. I would advise my client to progress the design as close to stage 4 as possible as this will remove as much risk from the contractors submission as possible.
- Traditional - I would recommend that design be progressed to stage 4 if the client wants full traditional. If there is to be a Contractor Designed Portion then this would be somewhere in between stage 3 and 4.
- The RIBA plan of work and the black book - tendering strategy guidance gives guidance on this.
When should cost plans be updated?
The NRM advises that cost plans are updated at the end of each RIBA stage. With each design revision the design should be assessed and cost plan updated.
What is the difference between a cost plan and a cost estimate?
- A cost estimate is an approximation of the cost of a project based on various factors at a given point in time. It is used in the early stages of a project to establish a budget and is subject to change as more information becomes available and the project scope is refined. Cost estimates can be less detailed and are generally based on assumptions and historical data.
- A cost plan, on the other hand, is a more detailed and structured approach to predicting costs. It involves breaking down the total project budget into specific cost headings or elements. A cost plan provides a framework for managing and controlling costs throughout the project lifecycle. It is based on a specific design and is used to allocate the budget among different elements of the building, ensuring that the project stays within the agreed financial limits.
What should be included in a Cost Estimate Report?
Project Title: Clearly stating the name of the project.
Project Description: A brief description of the project, including its scope, purpose, and key features.
Statement of Cost: Including the total estimated cost and any cost limits or budgets set by the client.
Basis of Estimate: Outlining the assumptions, methodologies, and data sources used to prepare the cost estimate.
Floor Areas: Providing a statement of the floor areas, such as gross internal floor area (GIFA).
Cost Breakdown: A detailed breakdown of costs by elements or categories (e.g., substructure, superstructure, finishes, services).
Unit Rates: Detailing the unit rates applied to various elements of the project.
Preliminaries: Including main contractor’s preliminaries, overheads, and profit.
Project and Design Team Fees: Estimating costs associated with the design team and any other consultants.
Other Project Costs: Including allowances for risk, inflation, and any other project-specific costs.
Inclusions and Exclusions: A clear and unambiguous statement of what is included and excluded from the cost estimate.
Estimate Base Date: Indicating the date to which the estimate is indexed for inflation.
Risk Allowances: Detailing any contingencies or risk allowances included in the estimate.
VAT Assessment: Stating the treatment of VAT in the cost estimate.
Alternative Proposals: Estimating costs for any alternative proposals and requesting client decisions on these options.
Supporting Information: Including any relevant drawings, specifications, or additional information used to prepare the cost estimate.
What would be included in a Cost Plan Report?
Executive Summary: An overview of the cost plan, including key findings and recommendations.
Project Title: Clearly stating the name of the project.
Project Description: A brief description of the project, including its scope, purpose, and key features.
Status of Cost Plan: The current status and version of the cost plan.
Statement of Cost: Including the total estimated cost and any cost limits or budgets set by the client.
Drawings and Specifications: Details of the drawings, specifications, and other information on which the cost plan is based.
Statement of Floor Areas: Providing a statement of the floor areas, such as gross internal floor area (GIFA).
Storey Heights: Heights of the various storeys in the building.
Cost Plan Summary: An elemental breakdown of the cost plan.
Basis of Cost Estimates: Outlining the assumptions, methodologies, and data sources used to prepare the cost estimate.
Inclusions and Exclusions: A clear statement of what is included and excluded from the cost plan.
Estimate Base Date: Indicating the date to which the estimate is indexed for inflation.
Changes to Previous Cost Targets: Reasons for changes and adjustments made to previous cost targets.
Alternative Proposals: Estimated costs of and a request for decisions on any alternative proposals.
Value Engineering Options: Options for cost savings and efficiency improvements.
Conclusions and Recommendations: Final thoughts and suggestions for the client.
Complete Cost Plan: The full detailed cost plan, often included as an addendum.
Cash Flow Forecast: Where appropriate, a forecast of cash flow requirements throughout the project lifecycle.
Differences between a cost plan report and a cost estimate report?
Cost Plan Report
Detail Level: Highly detailed with a breakdown by elements (e.g., substructure, superstructure).
Purpose: Used for ongoing cost management and control throughout the project lifecycle.
Updates: Regularly updated and revised as the project progresses and more information becomes available.
Content: Includes a detailed elemental breakdown, value engineering options, and cash flow forecasts.
Cost Estimate Report
Detail Level: Less detailed, often a high-level approximation.
Purpose: Used primarily for initial budgeting and to provide a preliminary estimate of costs.
Updates: Typically a snapshot at a point in time, with fewer updates compared to a cost plan.
Content: Focuses on broad cost categories and includes basic project details, assumptions, and a general cost summary.
What would typically be excluded from a cost estimate?
VAT (Value Added Tax):
VAT is often excluded from cost estimates due to its complexity and the varying rates applicable to different aspects of a building project. It is recommended to seek specialist advice on VAT matters.
Land Acquisition Costs:
Costs associated with purchasing the land for the project are usually excluded from the construction cost estimate.
Legal and Professional Fees:
Legal fees, including those for land acquisition, and some professional fees, such as those for financial advisors or legal consultants, are often excluded.
Financing Costs:
Interest charges, bank fees, and other financing costs are typically not included in the construction cost estimate.
Planning and Building Regulation Fees:
Fees for planning permissions, building regulations approvals, and other statutory approvals are usually excluded.
Abnormal Ground Conditions:
Costs for dealing with unforeseen ground conditions or contamination are often excluded unless specifically identified and assessed.
Client-Supplied Items:
Items supplied directly by the client, such as certain fixtures, fittings, or equipment, are excluded.
Inflation:
Future cost increases due to inflation may be excluded and handled separately under risk allowances or contingency sums.
Furniture, Fixtures, and Equipment (FF&E):
Movable furniture, fixtures, and equipment not integral to the building structure are often excluded unless specified.
Risk Allowances:
General contingencies for risks are sometimes excluded from the base estimate and detailed separately.
Operational Costs:
Costs associated with running and maintaining the building post-completion, such as utilities and maintenance, are excluded.
Insurance Premiums:
Construction-related insurance premiums, such as Contractor’s All Risks insurance, may be excluded.
These exclusions should be clearly communicated to the client in the cost estimate report to avoid any misunderstandings about what is and is not covered in the estimated costs. This transparency ensures that the client is aware of potential additional costs that may arise during the project.
How do you estimate costs during early design stages?
Understand the Client Requirements and the project brief.
Understand any site specific factors which could impact the cost. Ground conditions, accessibility any existing structures.
Benchmarking - Use historical data and similar projects. (On early stage housing estimates i can set an initial budget in the north west by using a unit rate of £2,600 per sq.m applied to the GIFA of the scheme.)
Utilise unit rates - based on a cost per square metre basis of gross internal floor area. or functional unit basis.
Order of Cost Estimating - If possible apply the elemental method of estimating where costs are broken down into elements.
Inflation and Market Conditions - Adjust cost estimates to account for inflation and current market conditions. This ensures that the estimate reflects the likely cost at the time of construction rather than just the present cost.
Reporting and Documentation:
Prepare detailed cost estimate reports that include all assumptions, methodologies, and data sources. Clearly document inclusions, exclusions, and the basis of the estimate.
What sources of information do you use?
- Previous similar CSAs and tender returns
- Pricing books - Spons BCIS
- Online databases
- In-house databases
- Sub-contractor quotations
What considerations regarding lifecycle costs can be made at the early stages of the design?
During the early design stages of a project the maintenance of the building should be being considered. The materials used and the lifespan when specifying products. Considering factors such as colour of external walls or the finish can have lifecycle cost implications and this is at the planning stage.
What is a preliminary estimate used for?
Preliminary estimates are used for establishing an initial project budget and assessing feasibility during the early stages of project planning.
What stage do you complete a preliminary estimate in?
A preliminary estimate would be typically be done in RIBA stage 1 or 2.
What stage would you start a cost plan?
Once an elemental estimate of cost has been developed within stage 2 this could be used to form the basis of the cost plan. Within stage 2: Concept Design the project will start to take shape and enough detail will be provided to develop a cost plan.
As the design develops it will be possible to assess which elements of the building are forecasted to exceed the average benchmarked project.
What would your recommendations be if a cost plan came in above the budget?
Initially, I would review the cost plan elementally against the budget to locate which elements specifically are coming in above the budget.
I would then raise this with the client and the design team and ask whether there are any alternative design solutions which can provide the same outcome for a lower cost.
If this is impossible the next step would be to look undertake some value engineering.
If further value engineering was not possible the next step would be to simplify the design in a way that would have the least effect on the buildings function and then the next step would be to reduce the scope of works.
Alternatively, additional funding would have to be sought by the client.
How much do you expect the costs of a project to increase if BREEAM excellent is a requirement?
The latest information i have seen is slightly outdated now however BREEAM conducted a study which estimated thee cost of increasing to Outstanding at 5% which i do not believe to be accurate. However, the scheme size and value will also impact dramatically on this percentage.
What is involved with a BREEAM life cycle assessment?
- It is an excel tool produced by the BRE. Building features are inputted into the sheet. The sheet calculates the LCA score which can be used to allocate a number of credits.
- Only 3 out of 5 credits available with this tool and a more advanced assessment is required to achieve the 4/5 credits. However this comes at a cost as a sustainability consultant will usually undertake this study.
What do you include in an estimate?
- Schedule of area
- Assumptions and exclusions
- Basis of estimate (elemental breakdown or benchmark data)
What would typically be excluded from an estimate?
- VAT
- Loose furnishings and fittings
- S106 costs
- Professional fees
- Client decant costs
- Site acquisition costs
- Removal of asbestos
What do you include in a cost plan?
- Within a cost plan i would include:
○ Schedule of accommodation
○ Exclusions and assumptions
○ Construction costs
○ Preliminaries
○ Main contractors overheads and profit
○ Professional fees
○ Risk/ contingency allowances
○ Inflation
○ Drawings/ specifications used
○ Any further qualifications required
○ Value engineering options
What is VE?
- Value Engineering is a stage of the value management process. It is the process of ensuring the best value for money to the client. Typically the process of value engineering will involve ensuring the building is still able to meet the objectives of the client but omitting or changing parts of the design to do this for a reduced cost.
- Value engineering is a systematic approach to acheive the required functions to the required quality for the least cost.
What is VM?
Value management is a structured, multi-disciplinary group decision-making process that provides a planned approach to the enhancement of the value of a project in a manner that is consistent with broader strategic or business goals.
The techniques can be classified into value planning, value engineering and value analysis.
What recommendations did you make on the Wammy to ensure that the clients objectives could be met within the allocated budget?
- To ensure the low running costs of the building were secured within the budget we targeted some unnecessary aesthetic items to ensure that the budget could afford the sustainable building features.
- We omitted some stud walling and external rendering we also omitted some skirting boards. We omitted all internal plasterboards and instead painted directly onto fair faced blockwork. This ensured we could afford the PV panels, ASHP and underfloor heating system. We were also able to provide rainwater harvesting.
What is the value engineering process?
Value engineering is a systematic approach to acheiving the requirements of the building for a reduced cost. The first stage is to review the cost plan against the previous version/ preliminary estimate. This isolates the building element which has exceeded the budget. I would then meet with the design team and the client to suggest ideas to reduce the cost in that area. I would then go away and estimate savings for each item. I would then present these back to the design team and client where potential savings could be discussed and options could be selected.
- Information
- Function analysis (workshop) (analyse each element)
- Idea generation (workshop) (no judgement or evaluation of ideas at this stage)
- Idea evaluation and selection (workshop)
- Proposal development and validations (Possibly a workshop)
- implementation
How did you undertake the value engineering process on the Wammy?
As a main contractor had won the tender process but some savings were still required, i was able to get the contractor involved in the value engineering process. The first stage i analysed the information available and located potential areas to target savings in. I met with the client architect and contractor where we all suggested potential ideas for value engineering. The contractor was then willing to price each option. I then met with the client to discuss the potential savings and option selection. We made the selections necessary to get the project within the clients budget and the contractor updated the tender proposals and the contract was agreed at the new sum.
Why did your suggestions increase the value offered to the client?
The Client was able to acheive their goals for a lower cost than was originally proposed. This therefore assured better value for money to the client.
How much savings were made from your VE suggestions on the Wammy?
The contract sum was reduced from 1.75million to 1.6million so around 150k overall.
What guidance is available for undertaking cost plans and estimates?
NRM1
What risks are associated with the Client undertaking the demolition package directly?
- If the works are not completed in time it could defer the possession of the site to the contractor
- A sub-contractor might not have the same level of insurances as a main contractor would.
- Contractor may have been able to do it for less.
How would you estimate the cost of a foundation design?
Establish what type of foundation design is being used and refer to the NRM for the guidance regarding measurement. I would then estimate the components which make up the construction of the foundation.
First would be excavation and making up levels.
Then the next steps would vary depending on the foundation type. Strip foundations would typically be measured around the external and internal weight bearing walls. Pad foundations would be measured in cubic meters and be located under columns. The volume of concrete would be measured and the weight of reinforcement would be measured. Piles would be measured on a linear metre and then the pile caps would be measured in cubic metres. The ground beam would also be measured in linear meters.
Rates are then applied to the quantities and the total would be added to my elemental cost estimate.
How would you estimate the cost of a housing project at an early stage?
I would typically estimate the cost on a metre squared rate based off the GIFA. I would get GIFA from the architects concept design or schedule of areas. I would then typically apply a rate of around £2,600 in the Liverpool City Region. This could be adjusted and rebased based off location. I would then compare the estimate on a by plot basis however this can vary depending on the mix of the scheme, the size of the plots and whether there are any apartments included in the scheme.
Then make some adjustments to the total to account for any site specific information that i am aware of.
On what basis can you estimate costs for projects at an early design stage?
Functional units or cost per square metre.
How much does BREEAM excellent cost?
- It is difficult to assess especially as a percentage but i have a basis for calculation based on a £6 million scheme which would indicate 3.53% additional on a cost plan for very good and excellent would be 4.26%.
- On a smaller scheme the percentage would increase.
What alternatives are there for BREEAM?
- LEED
- SKA RICS assessment tool (transferred ownership to a SKA Ratings Ltd in February 2024.)
- T54 assessment which reviews the operational carbon of a building.
What was your lifecycle assessment based on? How was it approached?
- It is an excel tool produced by the BRE. Building features are inputted into the sheet. The sheet calculates the LCA score which can be used to allocate a number of credits.
- Only 3 out of 5 credits available with this tool and a more advanced assessment is required to achieve the 4/5 credits. However this comes at a cost as a sustainability consultant will usually undertake this study.
Benchmarking of cost [related to the Kidsgrove section] what sources of benchmarking data are available and which data are the highest quality?
- My preference is always to try and use recent project information such as bills, CSAs or tender returns of similar projects.
- Following that there is sub-contractor quotations, pricing books or benchmarking data on high level or more detailed basis on BCIS.
- Some companies also have in house cost databases.
What are the NRM sections?
- There are NRM1, NRM2 and NRM3
- NRM1 - Cost planning and order of cost estimates
- NRM2 - Producing BoQs
- NRM3 - producing estimates relating to maintenance costs
What are the RIBA stages?
strategic definition, Preparation and briefing, concept design, spatial coordination, technical design, manufacture and construction, handover, use.
What is a cost plan vs an order of cost estimate?
- An order of cost estimate is produced in the early stages of construction it is typically a preliminary estimate and is used for budget setting purposes.
- A cost plan is developed as the design develops from Stage 2 onwards and allocates budgets to each building element. The cost plan is updated as the design develops to ensure the project is remaining within the allocated budget.
How do you adjust cost plans for different regions?
- When acquiring data from different sources to be used in cost plans. It can be adjusted and rebased using location factors which can be found on BCIS.
- Different regions of the UK will have different location factors which can be used to adjust rates and costs to be more accurate for a specific location.
What is the difference between VE and VM?
- Value engineering is part of the value management process.
- Value engineering is the process of ensuring best value to a client and the lowest possible cost.
- Value management is the structured multi-discipline process of ensuring best value throughout a project. This is through 3 main steps which are:
* Value Planning
* Value Engineering
* Value Analysis
How does the NRM categorise risk?
- Design development risk
- Construction risks
- Employer change risks
- Employer other risks
What types of inflation are there in cost planning?
Construction
Tender
What method of cost estimating would you use at early stages with no drawings?
- I would undertake a preliminary estimate in line with the NRM1 guidance.
- I would probably base the information on a unit rate most like cost per m2 on a GIFA basis.
- If appropriate i could use a functional unit basis to analysis
How would you estimate a student accommodation vs a warehouse?
- In a preliminary estimate i would probably include a cost per square meter for both.
- However, for the student accommodation i would also include a cost per bedroom.
What does BREEAM mean?
Building Research Establishment Environmental Assessment Method
What are the levels?
Good, Very good, Excellent, Outstanding
Where did you source life cycle cost data?
- Historical data
- BCIS or other structured data sources
- Data from modelling
- Data from manufacturers, suppliers and specialist contractors
What did you VE out of the Wammy?
- Plasterboards and skim
- Some timber stud partitions
- External render
- MF plasterboard ceilings instead of ceiling tiles
What were the sustainability requirements?
- There were no requirements as such, the Client had just stated that they wanted a building which had as low running costs as possible.
- Services engineer carried out SBEM calculations and produced a BRUKL report.
At what stage of a construction project in the UK should a BRUKL report and SBEM report be carried out?
RIBA Stage 3: Spatial Coordination
BRUKL Report: This report is required to demonstrate compliance with Part L of the Building Regulations, focusing on the energy performance and carbon emissions of the building. It should be completed during Stage 3 to ensure that the design meets regulatory requirements before proceeding to the technical design and construction stages.
SBEM Report: The SBEM calculation is used to produce the BRUKL report and assesses the energy performance of non-domestic buildings. It should also be carried out during Stage 3 to inform design decisions and ensure compliance with energy efficiency standards.
Completing these reports at Stage 3 ensures that any necessary design adjustments can be made early, avoiding potential delays or non-compliance issues later in the project.
What OH&P do you typically see?
Typically between 5-10% depending on the project.
Is reducing full height tiling to bathrooms cost cutting or value engineering?
- Depends what the client considers value.
- If the tiling offers no functional benefit other than aesthetics and the it saves funds to ensure the client can afford the sustainable building features that they do consider to be offering value i would say it is.
How do you value demolition works?
- Depending on the building getting demolished.
- Demolition costs can vary quite significantly depending on the type of building that is being demolished.
- Large buildings can be estimated on a volume basis but for a typical standard construction building can be estimated by using the GIFA at a m2 rate.
- NRM1 advises that the measurement for the works can be used as deemed appropriate for demolition works and NRM2 states to include demolition as an item cost.
- I would typically use a past project or get a sub-contractor quote where possible.
- I would also get an idea on the cost of the demolition in spons
How do NRM guide demolition works?
- NRM1 states to assess it as deemed appropriate.
- NRM2 states that demolition works should be itemised.
What are preliminaries?
Preliminaries are essential items for the completion of the project but are not reflected in the finished build
What are overheads?
An overhead is the costs involved with running the business.
Is it true that you never hindered the quality of its finish for its intended use?
The premises is a football changing room, if anything I would say we improved the quality by omitting the plasterboard anyway.
How do you oversee a projects finance during construction?
During construction i would produce regular cost report revisions and issue to the client.
What is included in a cost report?
- Within a cost report i would include an executive summary at the start which summarised the changes in this revision of the report and any changes to the forecasted final account.
- I would show the authorised project expenditure which would typically be the contract sum in most projects.
- I would then include all instructed variations and any anticipated variations. I would include whether a cost for a variation was confirmed, accepted or a budget cost.
- I would include any claims or anticipated claims and any additions or omissions to the cost involved.
- Any provisional sum expenditure
- A summary page showing the anticipated final account.
- At the end i would usually include a page which compares actual cash flow against the anticipated cash flow.
What is a provisional sum?
A provisional sum is an item of work within a contract that the contractor is unable to provide a fixed cost for at the point of entering into the contract.
What are the types of provisional sums?
- Undefined - The scope and method of the works is unknown at the point of signing the contract. Therefore the programme and preliminaries cannot account for the carrying out of the works. The contractor can therefore also be entitled to an extension of time when carrying out an undefined provisional sum.
- Defined - A defined provisional sum is an item of work where the method and the scope is known enough for the contractor to programme the works and price the preliminaries associated with the works. The only thing that is unknown is the quantity of the works. The contractor is able to provide a rate.
Why is it important to monitor provisional sums and variations as the project progresses?
- It is important to understand whether the project is forecast to be within the budget and whether the client has the funds available to complete the scheme. If not they may be able to secure funds with more notice and without impacting the scheme.
- Having an understanding of the bigger picture of the scheme will aid making savvy decisions regarding the instruction of further variations.
How do cost reports vary for different projects and clients?
Cost reports should be tailored to suit the specific client. For example on my Cladding remediation scheme at royal quay we have to tailor the report. We have to include professional fees within the report as they are an eligible cost under the grant funding agreement with Homes England. We therefore have to consider the main contract expenditure as well as the fees to evaluate the cash flow.
What are your considerations when assessing variation costs?
- When assessing variation costs it should be in line with the guidance in the contract relating to the project. In my projects I use JCT Design and Build the valuing of changes is described within section 5 of the JCT design and build ‘Changes’. There is also guidance within the Black book which relates to valuing changes.
- The valuation of changes shall be in accordance with work of a similar nature within the Contract Sum Analysis. Where there is no works of a similar nature a fair valuation shall be made.
- The same basis shall be used when assessing omissions.
How does the relationship between cost, time and quality effect decision making?
- The time cost quality triangle shows the relationship between these three factors. If cost and quality is prioritised it will increase the time. If you want low cost and low time you will have poor quality. If you want high quality in a short time you will have a high cost.
- One factor will always have to be adjusted.
What can be done within a project budget to account for risk?
- A contingency budget should be allowed for during the cost planning stage as the design gets developed a risk register can be used to assess the level of risk within a project, the cost associated with the risk and the likelihood of the risk occuring.
- Initially a contingency pot of between 5-10% is standard but as the scheme develops a more accurate assessment can be made.
Why is project finance so key on Homes England Projects?
If we do not monitor the funds accurately and funds are not drawn down sufficiently from Homes England cash flow issues could mean that the client would not have the funds necessary to pay the contractor.
What would happen if the Client was unable to pay the contractor?
- The contractor could suspend the carrying out of the works due to non payment.
- The contractor would be entitled to simple interest at the bank of England rate
- They could terminate the contract
How would you undertake a cashflow forecast?
I would typically for high level assessment purposes use an S curve on excel. I would typically ask for a cash flow forecast from the contractor at an early stage of the project. I would then include this within the cost report and plot the actual cash flow against the forecasted cash flow to assess the contractors progress against the forecasted progress.
What can cashflow forecasts be used for?
- Cash flow forecasts can be used to monitor contractor progress
- Secure loans and bank monitoring
- Managing cash within a business
- Forecasting business performance
What is a change control procedure?
- A change control procedure aims to clearly identify the change in the scope of works.
- This can then be clearly priced and understood by all parties.
How is a change control procedure used and what are the benefits of one?
- Black book - Change control and management
- The change control procedure aims to:
- Identify the reason for the change
- Investigate the impact of the change - such as costs and timescales.
- Strive to mitigate any risks and maximise opportunities in relation to the overall project.
- Review and accept or reject the change.
Why did you advise a client to employ a change control procedure?
- Change control procedures are RICS best practice guidance as a method of cost control.
- They are useful in Design and Build as they clarify which party the change falls upon and can be a clear way of reducing the risk of disputes.
What mechanisms do you use in the contract for ensuring variations are instructed effectively?
- Change control procedures
- Acceleration quotation
- Variation quotations
What is the implications of not having accurate instructions for variations?
Scope of works can become unclear and if the cost is not confirmed then it can result in dispute during final account. When issuing instructions i will use as much detail as possible and also where ever possible agree the cost of the additional works with the contractor and include the costs on the variation instruction.
How are liquidated damages withheld?
Following the contractor’s failure to meet the contract completion date. The employer must issue a non-completion notice and then they must issue a notice confirming their intention to withhold liquidated damages at the rate specified within the contract particulars.
What was the practical completion date at Lichfield Street?
24th November 2023
When is practical completion acheived?
Practical completion is when the contractor has complied sufficiently with the provision of as-built drawings and compliance with the CDM regulations which includes the supply of the health and safety file.
The guidance for certifying completion of construction works refers to the de minimis principle and beneficial occupation.
What did you do when you realised the completion date would not be met?
- I notified the client.
- I requested an updated programme and cashflow from the contractor.
- As the completion date passes the non-completion notice is to be issued.
- Followed by a notice of the intention to withhold liquidated damages at the rate specified within the contract.
Cash flow forecasts – how accurate is the use of cash flow in assessing progress?
- Cash flows can be used to assess progress against the programme indicatively.
- The most accurate way to assess progress on site is always a physical assessment of the works completed on site versus the programme.
What needs to be in place before liquidated damages can be charged?
- Contractually all that needs to be in place is a non-completion certificate stating that the contractor has not reached practical completion by the completion date.
- Then the employer needs to issue a withholding notice to the contractor stating their intention to withhold damages at the rate stated within the contract particulars.
How are LDs handled in a valuation?
- In line with the guidance within the black book for interim payments there are two ways that can be used to withhold damages.
- Both of these methods are outside of the valuation.
- They can be withheld using a PLN or the client can invoice the contractor directly for payment of the damages.
- Typically I would withhold damages through pay less notices. The valuation certificate would be issued and given consent by the employer we would issue the PLN on their behalf adjusting the valuation for LDs.
What should liquidated damages include?
- LDs should be a genuine pre-estimate of the cost incurred as a result of the completion date not being met.
- It would typically include loss of earnings, professional fees, costs of occupying an alternative premises.
How are LDs calculated?
The contract particulars state the rate at which the LDs should be calculated. For example of my Lichfield Street project in stoke the rate was £195 per plot per week and part thereof.
What was the rate of LDs at Lichfield Street?
£180 per plot per week and part thereof
What were the timescales involved in the change control process?
2 weeks to issue instruction from change control form receipt.
What was the rough cost per m2 at Monmouth Road?
£2,500 per sq.m
What are the valuation rules for variations?
- The Valuation rules for variations are contained within Section 5 of the contract.
- Where the work is of a similar character and is to be executed under similar conditions and there is no significant difference to the quantity the bill rate shall be used.
- Where the character of the works is similar but is under different conditions or significantly different quantity a fair allowance shall be made to the rates to reflect the changes in conditions or quantity. (star rates)
- Where the rates contained in the bill are not relevant to the works within the variation, the works should be valued at fair prices.
What are dayworks?
Defined in the NRM2 is the method of valuing works on the basis of time spent by the contractor’s workpeople, the materials used and the plant employed.
What did you challenge on the valuation of the variation at Royal Quay?
- The contractor had priced the works on the basis that the works were not of a similar character to the works being undertaken within the CSA.
- Within their CSA for example they had included rates for high level soffit replacement works.
- The costs they had included for the low level soffit replacement works were at a much higher rate than the CSA rate.
- I argued that the CSA rate should be applied.
- Following some negotiations they agreed to honour the CSA rate with an allowance made to reflect the change.
What guidance is provided for RICS members relating to Quantification and costing?
- The standard form of measurement provided by the RICS to guide quantity surveyors with measuring quantities is the New Rules of Measurement.
Why was NRM brought in?
- The previous SMM7 was designed solely for the production of BoQs for tender purposes
- This resulted in a lack of guidance for preparing estimates and cost plans using SMM7
- The NRM were introduced to provide a common and consistent basis for the production of Order of Cost Estimates and Cost Plans to give employers more confidence around their inclusions.
What are the different NRM documents and their purposes?
- NRM1 - Guidance for the preparation of cost plans and estimates
- NRM2 - Guidance for the preparation of Bills of Quantities
- NRM3 - Estimating and cost planning for building maintenance works.
What is contained in each NRM?
- NRM1 - Guidance for the preparation of cost plans and estimates
- Section 1 - Description of the document and details of when and how it is to be used.
- Section 2 - Measurement rules for the production of order of cost estimate estimates
- Section 3 -Measurement rules for the production cost plans
- Section 4 - Tabulated rules of measurement for the preparation of cost plans
- NRM2 - Guidance for the preparation of Bills of Quantities
- Section 1 - Introduction, purpose and use of the document
- Section 2 - Rules for detailed measurement of building works
- Section 3 - Tabulated Rules for detailed measurement of building works
- Appendices - Some guides and templates
How would you undertake the preparation of a BoQ?
- I would meet with the design team to review the information available and to ensure that everything is finalised prior to commencement of quantification.
- I would then ensure that everything is available including any additional schedules such as furniture, door, window and finishes schedules.
- Discuss and agree with the Client and Design Team the method of measurement to be adopted.
- I would then meet with my internal team at the company to allocate elements of the building to be measured.
- Each member will be responsible for a specific element or elements.
- If i was undertaking the task on my own i would measure from the substructure upwards
- Once measured a more senior member of the team would cross check a sample of the measures from each persons measures to check for accuracy.
- I would then start to populate items into the bill template from the take off which had been carried out.
- We use a BIM software that ensures that the ensures descriptions are in line with NRM2 requirements.
- A senior member of the team would then review each element and check quantities lined up correctly with their description.
How would you make adjustments to building costs based on location and inflation?
- I would typically use BCIS location and inflation factors to adjust costs.
- BCIS has a location factor for each region of the UK to allow for the costs to be rebased.
- Similarly BCIS provides tender price and building cost indices. It allows the forecasted inflation up until tender return to be predicted as well as construction inflation up to the mid point of contruction to be predicted.
What types of inflation would you allow for?
Tender inflation
Construction inflation
How do you adjust for each type?
- Tender would be based off the tender price indices and would go from the base date up until the tender return date.
- Construction inflation would go from the base date of construction until the mid point of contruction.
When would you typically set the base date of a contract?
I would typically use the tender return date
What is the contractual significance of the base date in the JCT suite?
The base date is the date which any changes in legislation can effect the price.
How would you measure GIFA?
GIFA is measured to the internal face of the external wall. As outlined in the RICS code of measuring practice which aligns with the IPSM.
How would you measure NIA?
NIA is measured to the internal face of the external walls but excludes unusable space. For example columns will be omitted.
What guidance is available relating to measurement?
- Code of measuring practice (RICS)
- International Property Measurement Standards (IMPSC)
- International Construction Measurement Standards. (IMPSC)
- New Rules of Measurement (RICS)
How does IPMS relate to the NRM?
The NRM was updated in the last few years so that it is linked to the IPMS 1 and 2 so the measurements for GEFA and GIFA are the same.
What changes to IPMS have been made recently?
IPMS was recently updated, the guidance is no longer split into seperate building uses and now applies to all buildings.
What is the process of valuing changes?
- In both D&B and SBC the rules for changes/ variations are laid out within section 5 of the contract.
- D&B - The employer can request a fixed cost for the carrying out of the change. This can be included within the instruction to reduce the risk of dispute at final account. However, the works can be instructed and the price can be agreed at the end of the project if the parties cannot agree on the cost .
- SBC - Variations are to be valued in line with the valuation rules within section 5 of the contract. Similarly to D&B bill rates are to form the basis of valuation with suitable allowances to account for different quantity or conditions. Where there are no suitable rates and prices within the Bill then the works should be valued at fair rates and prices.
- The Contract Administrator can request a Valuation Quotation from the contractor for completion of the work under the Schedule 2 provisions within the contract.
- The CA instructs the contractor to provide a Variation Quotation. The quotation is to include the adjustment to the contract sum excluding loss and or expense.
- Adjustment to the time required as a result of the works to the contract completion date
- The amount to be paid in respect of direct loss and or expense.
- A fair and reasonable amount in respect of preparing the quotation
- The works should not be carried out until the contractor receives a confirmed acceptance.
What pricing documents are used with different types of contract?
SBC:
- Bill of Quantities
- CSA
- Schedule of Rates
D&B:
- CSA
Measured Term:
- Schedule of Rates
Intermediate:
- Bill of Quantities
- Priced Specification/ Schedule of Rates
Why might a contractor try to avoid using a bill rate?
The contractor may have priced a bill rate competitively for tender purposes. If they can prove that the bill rate is not appropriate for the purpose of pricing the tender they can use fair price basis to price the variation. Therefore they could acquire sub-contractor quotations or other methods that would involve costs which are more expensive than the bill rate.
What is a star rate?
- A star rate is defined within the RICS guidance note within the black book named change control and management.
- A star rate is a rate that is based off a bill rate that has been adjusted to include a fair allowance due to a change in the quantity or conditions of the work.
What is a heads of claim?
- prolongation costs; finance charges; loss of profits; general disruption and wasted management time
How did you review the adjustments made to the contract sum when reviewing the contractors final account?
- I ensured that the contractors final account was adjusted by the amounts agreed for changes that had been instructed only and that the adjustments had been made by the same amount that were written on the instructions.
- Once i was satisfied that this was the case i agreed that the final account was acceptable and issued it to the Employer.
How does a final account vary from D&B to SBC?
How long should the contractor take to issue FA after PC.
D&B - Contractor has 3 months from the issuance of the certificate of practical completion.
- If not received the employer will give a notice stating that if the contractor does not issue their Final statement within 2 months, they may issue a final statement.
SBC - The contractor has 6 months to issue all information required to enable the CA/QS to make adjustments to the contract sum.
How long does the Employer have to review the Final Account?
D&B – Have until the due date for the final payment to notify the contractor that you will be disputing the final account.
SBC – 3 months from the receipt of the information to issue statement of adjustment
How long after PC should should the Employer issue any adjustments or EOT?
D&B – The employer will not make any adjustments to the final statement.
SBC – 3 months from receipt of the information to make any adjustments
What are the differences between JCT D&B and JCT SBCWQ on these matters.
- Contractor is responsible for issuing final statement in D&B and Employer is responsible in SBC.
- Longer period of agreement in SBC
- would a bill of quantities have been preferable if it was compatible with the contract?
- The production of a bill of quantities would extend the pre-contract period as the detailed measurement and preparation process would have to commence following the completion of the design.
- It would also be unnecessary as the contractor would be responsible for measuring their own quantities within a D&B contract.
- The Bill of Quantities would be useful for comparison of tenders during the tender stage.
- The Bill of Quantities is also often easier to use for the valuation of variations than a CSA.
What are the pros and cons of a BoQ?
Pros:
* Simplified tender analysis
* Can shorten tender period
* Is useful when undertaking interim valuations
* Valuing variations
* Rates can be useful when undertaking cost plans and estimates in the future.
* Provides a clear statement of the work required.
Cons:
* Increase cost and length of pre-contract period
* Limits the procurement route available.
* Errors in the bill of quantities come as an employer cost
* Are costly to produce the Bill of Quantity document.
You advised a pricing schedule as opposed to what on the minor works contract at Lichfield Street?
Originally the contractor provided a fixed price for the completion of all the works, i requested that it was broken down in to a pricing schedule to ensure that we could easily assess applications for payment.
Have you ever had difficulty agreeing a final account?
- Fortunately i have not had any dealings which have resulted in difficult agreements.
- I always aim to ensure that I instruct variations with costs agreed so that final account agreement is more straight forward.
- On the Lichfield street project, the contractor and the client reached a settlement agreement relating to the amount of Liquidated Damages the contractor would be liable to pay but I was not involved in the negotiations as it was at board level. However, the number of instructed changes was minimal so this simplified the settlement negotiations.
What is the typical price of steel?
- Approx. £3,000 per tonne plus an allowance of approx. 10% for ancillaries and connections.
- I would also make an allowance of around £25 /m2 for fire protection.
Housing cost per square meter
- Costs in the north west would be approximately £2,600 per sq.m on a GIFA basis.
- Cost per plot can vary based off the mix of house types and whether there are apartments.
Warehouse per square meter
FINSA costs are currently coming in at approximately £1,300 per sq.m but that does include an office structure internally and allows for the ground works that have had to be undertaken.
Concrete price
£150 per m3
Rate for piling?
- £85 per m
- Pile cap cost between £2,000 - £5,000 depending on the size
Up to what value would you advise a minor works contract?
£200k but the project has to be simple in nature with straight forward construction methods.
What are the fundamental elements of a contract?
- Offer by one party (I.e tender)
- Acceptance by the other party (i.e Tender return; caution: Qualification in tender = counteroffer)
- Consideration (price of the promise, exchange of money, services or goods; must be on both)
- Intention to form a contract (lending money to friend is a favour not a contract)
- Legality of contract (nothing prohibited by law)
- Both parties must have the capacity to make the agreement (therefore excludes minors or intoxication)
- Consent (there must be no force or influence on vulnerable obligations
- Possibility of performance
What are the different types of contract within the JCT suite?
- JCT standard building contract - with, without approx. Quantities
- JCT Design and Build
- JCT intermediate
- JCT minor works
- JCT major works
- JCT management contract
- JCT PCSA
- JCT Measured term
- JCT Target cost contract (New for 2024)
What other contracts are available?
- NEC - Option A to G
- Bespoke
- Framework agreements
- FIDIC
What are the benefits and uses for each type?
- JCT SBC - fixed price contract, employer retains control over design, price should be most competitive
- JCT D&B - Fixed price, contractor responsible for design, can be more expensive due to contractor risk
When would you use a JCT Minor Works?
- Projects that are short in duration on a small scale with a straight forward construction.
- JCT guidance is for a value up to £200,000 but it has to be simple in nature
- It is a lump sum form where design should be completed prior to execution.
- The Employer on their team is to provide specifications, drawings and schedule of works.
When would you use the JCT Intermediate Contract?
- The intermediate form is recommended for projects that do not exceed a year duration.
- The project should be simple in content and require only one basic skill and trades where services are not complex and where the works are already designed.
When would you use a JCT SBC with Quantities?
- A JCT SBC would be used where the work has already been designed at execution.
- It is suitable for use with a bill of quantities and is a lump sum form.
- The contractor’s risk is limited to price only.
- The employer takes the risk of errors in the bill.
When would you use JCT SBC without quantities?
- This is suitable where work has been designed prior to contract however there is no bill of quantities.
- The contract documents will include drawings, specification and schedule of rates.
- It is a lump sum contract.
- The contractor’s risk includes both price and quantity.
When would you use JCT SBC with approximate quantities?
- This is a remeasurement form of contract.
- There is no fixed contract sum.
- It is used where the design is not completed at the time of execution
- An approximate bill of quantities will have been prepared.
- Construction is aimed to commence prior to the design being completed.
When would you use JCT D&B?
- When the contractor is responsible for design and construction
- The project should be similar in complexity to that of a SBC.
- The contractor’s proposals form the basis of the contract.
- There is no mention of an architect or QS instead the role is replaced by the title of Employers Agent.
What are the key differences between minor works, intermediate and D&B contracts?
- The minor works contract only has 7 sections instead of 9. Variations are included within the control of the works section and there is no assignment and collateral warranties provision.
- There is no mention of the QS in minor works and D&B however there is in the Intermediate Form.
- In minor works there is no provision for named sub-contractors, no provision for bonds and collateral warranties and no advance payment provision.
- Minor works also has no provision for sectional completion or partial possession.
- In minor works there are no relevant events listed for extension of time, instead it is referred to as ‘anything outside the contractor’s control’.
- The standard rectification period is 3 months and 6 months for intermediate and D&B
- D&B is administered by an EA rather than a CA.
- The standard retention is 5% for Minor works and intermediate and 3% for D&B.
- In minor works and intermediate form, the Contractor may be responsible for completing discrete part of the design whereas in D&B, he is responsible for completing the overall design.
- In D&B, the EA may request a quotation prior to instructing a change.
- There is no fluctuation mechanism for labour and materials costs in Minor Works and Intermediate Forms.
- Payments are made at regular intervals in Minor Works and Intermediate Forms Whereas D&B gives the option of stage payments.
- In minor works, there is no option for the employer to take out a joint name all risk policy, only options A and C.
- There is no provision for third party rights in Minor Works or Intermediate Forms.
What is a collateral warranty?
Due to privity of contract a collateral warranty can be used to make a third party to a contract. It is often used in design and build where a sub-contractor or consultant is contracted to the main contractor. The client will sign a collateral warranty which will allow them to claim under the contract.
When have you used collateral warranties on projects?
I use collateral warranties on my projects for example where the architect is employed by the contractor on a design and build.
When have you advised a client that a collateral warranty is required?
Recently on the Wammy we have just started on site. The contractor is currently undertaking their site set up. I have advised the client that CW will be required and notified the contractor that we will need their sub-contractors and consultants to sign a collateral warranty.
What can be used to get a contractor to start on site prior to the main contract being signed?
Letter of intent
PCSA
What are the features of a LOI?
A comprehensive letter of intent should address the following:
- Client authorisation to the contract administrator to represent them.
- Acceptance of the contractor’s offer and definition of the project.
- The agreed contract sum.
- Reference to the tender documents and subsequent amendments (with dates).
- Instruction to proceed on a certain date.
- Site possession date.
- Contract completion date (including details of any phases).
- A full description of the proposed form of contract, including warranties and performance bonds.
- A fall-back date for signing the contract (this is important, as beyond a certain time in the progress of the works it may no longer be in the interests of the contractor to sign the contract).
- Direction as to whether the contract will be executed by Deed, under seal or under-hand.
- Restriction of the work authorised by the letter of intent, by proceeding with which the contractor has fully accepted the terms of the letter of intent.
- Terms and provisions for cancelling the letter and determining the works at any time prior to signing the full contract - specifically, the terms will limit the client’s liability for costs and exclude claims for loss of profit, opportunity, good will, indirect or consequential losses.
- Provision for the contractor to have access to the site under licence only, with no (tenancy) rights to possession and limited rights described in a separate licence that sets out conditions and the licence period.
- Client and agents access provisions during the licence.
- Insurance provisions and indemnification.
- Agreement that there are no rights to assign the works.
- Disputes resolution procedures.
- Liquidated and ascertained damages to be applied to late completion
What risks would you advise a client when using a LOI?
- A LOI is only legally binding when it contains the key elements of a contract.
- I would recommend legal advice is sought prior to agreeing a letter of intent.
- The main contract should be agreed as a priority
What are some differences between JCT contracts and NEC?
- The NEC places a greater drive towards active project management.
- It requires the contractor to provide an updated programme when it becomes reasonably apparent that a delay is going to occur.
- I believe activities within the activity schedule are only to be paid when the activity is completed and percentage interim payments are not permitted.
- NEC combines extensions of time and loss and expense into compensation events
- Specific clauses can be added into the contract as Z clauses.
What guidance is available relating to contract practice?
- The RIC Black book contains guidance relating to:
- Acceleration
- Change control
- Damages for delay to completion
- Defining completion
- Employers agent D&B
- Extensions of time
- Final account procedures
- Fluctuations
- Interim valuations and payment
- Retention
- Termination of contract, corporate recovery and insolvency
- Valuing change
What did you include in the contract documents for Royal Quay?
- JCT D&B contract
- Contract amendments
- Preliminaries
- Employer’s requirements
- Programme
- CSA
- Contractors proposals
Appendices - document register, existing drawings
What is the process when undertaking an interim valuation?
- When undertaking an interim valuation on a JCT design and build i would receive the contractors application.
- I would review their claim and check for any abnormals such an materials off site, or large deliveries of materials on site.
- I would then attend site wearing the appropriate PPE and sign in.
- I would notify the site manager that i was undertaking the valuation and he was welcome to join me to walk around if he would prefer.
- I would review all of the works noting their progress and photographing the works for record keeping purposes.
- I would view the materials on site and check the amounts are in line with the application.
- I would then return and input the progress into my valuation sheet for the project showing the progress of each element of the work against the total amount.
- I would then calculated the preliminaries cost depending on how they are laid out this can vary.
- I would total the value of the materials on site.
- Add the cost of any materials off site (assuming material of site payment requirements have been made)
- I would then add on the Contractors overheads and profits percentage.
- I would then deduct the retention at the percentage stated within the contract particulars.
- Then deduct the amount previously certified in other interim valuation certificates to give the amount payable.
- I would then populate the interim payment certificate stating the final dates for payment, due date the amount due as well as the basis for calculation.
- I would then issue it to the contractor and the client with supporting documentation to accompany my valuation.
What is the process of assessing loss and expense?
- Loss and expense is the genuine loss and expense incurred as a direct consequence of a relevant matter under the contract.
- Failure to give the contractor possession of the site.
- Failure to give the contractor access to and from the site.
- Delays in receiving instructions.
- Opening up works or testing works that then prove to have been carried out in accordance with the contract.
- Discrepancies in the contract documents.
- Disruption caused by works being carried out by the client.
- Failure by the client to supply goods or materials.
- Instructions relating to variations and expenditure of provisional sums.
- Inaccurate forecasting of works described by approximate quantities.
- Issues relating to CDM.
What is required for liquidated damages to be claimable?
- It is best practice to notify both parties relating to the entitlement to claim liquidated damages.
- The employer must issue a non-completion notice stating that the works had not been completed by the contract completion date.
- They must also issue a withholding notice confirming their intention to withhold Liquidated Damages at the rate contained within the contract particulars.
- The employer can issue the withholding notice up to 5 days prior to the final payment.
- How long was the defects rectification period?
Why was it 12 months?
It allows for the Employer to assess the building in all four seasons for any defects to materialise.
What is the mechanism for withholding liquidated damages?
- EA will issue a non-completion notice when the contract completion date has not been met.
- Notify the Client they are entitled to withhold LDs and notify the contractor
- Employer (or EA with explicit consent) will issue withholding notice to the contractor stating the employers intention to withhold liquidated damages at the rate stated in the contract particulars.
What other contractual mechanisms are within the JCT contract?
- Pay less notice
- Rectification of defects
- Practical completion
- Partial possession
- Adjustment of completion date
- Claiming of liquidated damages
- Instructions/ variations/ changes
- Interim payments
- Final statement
- Contractor’s rights to suspension
- Loss and expense
- Termination
- Dispute resolution
What is the termination mechanism?
- If the contractor prior to practical completion does one of the following:
- Fails to proceed regularly and diligently with the work
- Wholly or substantially suspends the carrying out of the works
- Fails to follow an instruction requiring them to remove works that are not in accordance with the contract
- Fails to comply with sub-contracting or assignment requirements
- Fails to comply with clause 3.16 the CDM Regulations.
- The employer is to issue a notice to the contractor stating the breach and that the breach must be stopped within 14 days or they will terminate the contract.
- If the contractor does not stop the breach within 14 days they must issue another notice confirming that the contractor’s employment has been terminated.
Who issues termination notices?
- SBC - initial notice of default is issued by the CA
- The second notice, the termination notice is issued by the Employer.
- D&B - The Employer is to issue notices
What is an extension of time?
Extension of time is the process of extending the contractual completion date due to the impact of a relevant event on the carrying on of the works.
What are relevant events and matters?
- Relevant events are items outside of the contractors control which will impact their ability to meet the contract completion date. Relevant events entitle the contractor to an extension of time.
- Relevant matters are matters for which the Employer is responsible for which materially effects the progress of the works. The matters entitle the Contractor to claim for loss and expense.
Name some relevant events and matters?
- Relevant events:
- Exceptionally adverse weather
- Instructions
- Changes
- Deferment in the possession of the site
- Antiquities
- Unexploded ordinates
- Governments exercising statutory powers
- Force Majeure
- Suspension of works by the contractor
- Where action by the employer has caused a default by the contractor
- Specified peril
- Civil unrest or terrorism
- Strike by workers required for the carrying out of the works
- Delay in receipt of any necessary permission or approval from a statutory body which the Contractor has taken all practicable steps to avoid/ reduce.
- Relevant matters:
- Instruction
- Changes
- Option for UXOs and Government exercising statutory powers
- Antiquities
- Delay in permission of any permission or approval for the purposes of Development Control Requirements necessary for the works.
Any act by the employer or Employer’s persons.
How would you assess a claim for extension of time and Loss and or expense?
- Loss and Expense needs to be the genuine loss or expense incurred by the contractor as a result of the relevant event.
- All claims must be substantiated by the contractor with the relevant supporting information.
- The Contractor is also entitled to claim for loss of profit.
At what point would retention be released?
- Typically half of the retention would be released at practical completion and the remaining half would typically be released following the rectification of defects and following the issue of the certificate of making good defects.
What is meant by practical completion?
- Practical completion of the works is acheived when the works are substantially complete and the contractor has sufficiently complied with the provision of as-built drawings and compliance with the CDM-Regulations which includes the provision of the H&S file.
- Can be considered when the building can be used for its intended purposes and the client could take beneficial occupation.
- The black book guidance on assessing practical completion states that assessing practical completion is based on reasonableness and the de minimis principle. This means that certification of practical completion should not be withheld if there is only minimal defects remaining.
How do you assess whether practical completion has been acheived?
- The black book guidance on assessing practical completion states that assessing practical completion is based on reasonableness and the de minimis principle. This means that certification of practical completion should not be withheld if there is only minimal defects remaining.
- The black book mentions the term beneficial occupation as a method of assessing if practical completion has been acheived.
- Contractually - As well as this the contractor should have complied sufficiently with the provision of the as-built drawings and compliance with the CDM regulations.
What needs to be in place for Roads and Sewer adoption?
- Section 38 and Section 278 for adoption of a new public highway.
- Section 102 and 104 for the adoption of new sewers.
- The local authority will then carry out inspections to assess the works are complete to the standard required. They will then conduct snags.
- Typically following the snagging inspections the local authority will then issue a certificate confirming the adoption.
- The contractor will then be responsible for repairing defects for the first 12 months.
What is the difference between partial possession and sectional completion?
- Sectional completion is pre-planned and dated for in the contract documents.
- Partial possession is consensual when the employer requests the handover of the building or section of the building prior to the contractual date.
What do you look for when reviewing handover documentation?
- Refer to my handover checklist, i then review O&M files provided to check for any clear errors and missing documents and request them from the contractor.
- I will also ask the PD to review the documentation and determine if they are sufficiently complete to accept practical completion.
What is the typical handover process for a project you work on?
- Review handover documentation, O&M, as-built drawings and assess if they are sufficiently complete.
- Are the works complete enough so that the client can take beneficial occupation.
- Do only minor defects remain in line with the de minimis principle.
- Compile a list of all defects that are the be rectified by the contractor.
Issue relevant certificate.
What amendments do clients typically make to contracts?
- Amendments to payment dates
- Amendments to relevant matters
- Retention release conditions
- Changes to strengthen indemnity clauses
- Requiring bonds or performance guarantees relating to the rectification of defects.
Why did the D&B offer cost certainty on Kidsgrove?
D&B procurement is a fixed price contract where the cost for the provision of the employer’s requirements is agreed at a fixed sum.
Typically it can be more expensive than a SBC as the contractor will have to price in more risk for items such as unknown ground conditions.
Why did you not advise the client to use a SBC?
The design was not sufficiently developed. Although CDP were considered it was deemed that there was still too much of the design which needed to be finalised that it made more sense for the contractor to complete the design in its entirety.
What were the benefits of progressing the design of Kidsgrove to stage 4 pre tender?
We were able to get the spatial coordination completed and some light technical design in place which allowed the contractors to provide better tender submissions.
What was contained within the contractor’s proposals?
- Design drawings
- CSA
- H&S proposals
- Method statement
- Programme of works
- Preliminaries cost breakdown
- Proposed changes to the draft contract.
What are the sections of the JCT design and build contract?
- Agreement
- Recitals
- Articles
- Contract particulars
- Attestation
- Conditions
- Schedules
What would you put on the agenda when chairing a monthly progress meeting as EA?
- Introductions and apologies
- Review of contractors monthly progress report
- Review of previous minutes
- Employer Items
- Commercial items
- Contractor information required (RFIS)
- Clerk of works
- Any other business
What is the difference between procurement route and contract route?
- Procurement Route
The procurement route refers to the overall strategy and process by which a construction project is designed, financed, and constructed. It outlines the method through which the construction works are brought to completion, detailing how the various parties involved (e.g., client, designer, contractor) are appointed and interact throughout the project lifecycle. - Contract Route
Definition: The contract route refers to the specific type of contract used to formalize the legal relationship between the client and the contractor (and sometimes other parties). It details the terms, conditions, and obligations of the parties involved in the construction project.
Different contract routes can include:
Common Types of Contracts:
Lump Sum (Fixed Price): The contractor agrees to complete the project for a predetermined price.
Cost Plus: The contractor is reimbursed for actual costs incurred, plus an agreed-upon fee or percentage.
Guaranteed Maximum Price (GMP): Similar to cost-plus but with a cap on the maximum price the client will pay.
Target Cost: The client and contractor agree on a target cost, and savings or overruns are shared according to a pre-agreed formula.
Unit Price: The contractor is paid based on the actual quantities of work performed at predetermined unit rates.
Framework Agreements: Long-term agreements with contractors for a series of projects or continuous work over a period.
What are the risks associated with letters of intent?
- Letters of intent limit parties ability to be able to manage risk.
- Puts the employer into a weaker bargaining position when agreeing the contract as the contractor is on site and the works are underway.
- Risk to the contractor that the employer might use someone else.
- Not all terms are applicable for example LDs might not be claimable.
What updates are there in the JCT D&B 2024?
- Incorporation of the updates to the Building Safety Act
- Inclusion of new relevant events and matters - UXOs epidemics
- Inclusion of service of notices to emails
How did you act as Employer’s Agent pre-contract?
Organised the tender process, organised the initial design.
What are preliminaries?
Preliminaries are work items which are required in order to complete the works but are not part of the measured permanent works.
What takes precedence between CPs and ERs?
CPs
What is a relevant event?
A relevant event is defined within the contract as an event outside of the contractor’s control which will entitle the contractor to an extension of time.
What is a relevant matter?
A relevant matter is defined within the contractor as a matter which is the responsibility of the Employer which entitles the Contractor to claim for any direct loss and expense incurred as a result of the occurrence of the matter.
Name some relevant events?
- Instructions
- Changes
- Exceptionally adverse weather
- Deferment of the site by the employer
- Terrorism
- Antiquities
- Specified perils
- Unexploded ordinance
- Epidemic or government exercising statutory powers
- Force majeure
Any others?
Name some relevant matters?
- Changes
- Instructions
- Costs incurred as a result of opening up work in accordance with the contract
- Default caused by an employer’s representative
- Optional clauses under the 2024 JCT D&B:
- UXOs, Antiquities and Epidemics.
Can loss and expense be claimed as a relevant event?
No just an extension of time
What is triggered at PC?
- At PC the employer will be responsible for insuring the property
- They will no longer be entitled to any liquidated damages
- Rectification period commences
- Employer is responsible for any damage that occurs after PC.
- Half of the retention is to be released.
When did you decide to assess PC?
In my situation on Lichfield Street I assessed practical completion following a notification from the Contractor stating that they believed they had acheived practical completion.
What is the difference between Practical completion and sectional completion?
- Sectional completion is where the project is split up into sections and handover takes place in a sequence.
- Practical completion will be considered to have taken place in the section once sectional completion occurs.
- Practical completion is when a full building or project is practically complete.
What is the design risk under D&B?
- The contractor is responsible for providing a building that meets all of the employers requirements.
- If there is a part of the design that does not meet the requirements laid out the contractor will be required to correct the design in order to complete the project.
- This would not come as an additional cost to the Client.
- For example if ground conditions turned out to require a more expensive substructure design once excavations had commenced, the contractor would not be entitled to additional costs as the Contractor should have included sufficient risk percentages as part of their tender submission.
What are the main differences between the CA and EA roles?
- In the main, the EA and CA roles are mainly the same.
- EA relates to Design and Build Contract and CA is referenced in traditional sbc contracts.
- The EA role will typically begin at tender stage and the EA will carry out their role as the employer’s agent prior to the commencement of the contract.
- An Employers Agent could be appointed any time prior to the contract and be carrying out roles under the EA title during the tender phase etc.
- The CA would only begin carrying out their tasks from the point of execution of the contract.
Mechanism for change
- Employer issues changes by instruction to the contractor.
- A change is described as a addition, omission or the substitution of work or the alteration of any materials or goods
- The Employer can issue an instruction for a change under clause 3.5.
- Should the contractor not implement the change, the Employer has the right to issue a notice to the Contractor which after 7 days allows the Employer to employ others to complete the instruction and the additional costs can be deducted from the contractor.
- Process for changes instructed in any format other than in writing. The contractor can confirm the instruction in writing. Should the employer not respond within 7 days, the instruction becomes effective.
- Where change works carried out are under similar conditions to the measured works, the rates within the contract should form the basis of the valuation.
- Where the works are not under similar conditions to any of the works within the contract fair rates and prices are to be used.
Mechanism for termination
- The employer is to issue a notice confirming the breach stating that the Contractor has 14 days to stop the specified breach.
- If the contractor continues the breach stated in the notice following the period stated within the notice. They have 21 days from the expiry of the notice to issue confirmation of the termination of the contractors employment under the contract.
- All notices must be issued by the method stated in the contract.
- If the notice is to be issued by post 2 days is to be allowed for the reasonable time expected for the notice to be delivered to the address stated.
- The employer is to issue the final termination notice.
Discrepancies between different contract documents
Contractor’s Proposals will always take precedence over the Employer’s Requirements.
What would you do if defects were never rectified?
- If defects were never rectified, notice would have to be issued to the Contractor for non-rectification of defects.
- The notice would state that if defects are not rectified within a reasonable time then the Employer would instruct others to carry out the works.
- This money can then either be claimed from the contractor or withheld from the contract.
What is the standard rectification period?
6 months
What contract are you referring to in Lichfield Street?
- The main works were provided under a D&B contract
- The electric gate works were completed under a minor works contract.
What happens if the contractor doesn’t submit their application?
- Under D&B the valuation period rolls on and the date that the contractor does submit their application would become the valuation date.
- Under SBC the CA is responsible for issuing the payment certificate within 5 days of the due date whether the contractor has made an application or not.
How often would you undertake valuation after practical completion?
After PC valuations will continue to be monthly so long as the contractor continues to put in applications in D&B.
SBC - Post PC valuations drop to every 2 months.
What is a two-stage tender process and what is the process involved?
- A two stage tender process is method used to agree a cost for the provision of works from a contractor. It is split into two stages, in the first stage the tender would be open to a set of contractors who will be asked to provide costs for a part of the full tender. For example in our project it was to provide prelims costs as well as state their overheads and profit percentage and provide a programme for the completion of the works.
- A preferred contractor will be selected from the first stage tender submissions and they will enter the second stage. In the second stage the contractor can assist with completing the design works under a PCSA. Once the design is complete they will provide a fixed price to complete the works and the Employer will decide if they want to enter into the contract or not. The employer is under no obligation to enter into the contract with the contractor.
Where any other procurement routes considered?
There was the potential of a management contracting route for the completion of the project. However, it did not provide the cost certainty that the client required. The Client’s insolvency policy also stipulated that a Design and Build Contract was to be used as the replacement contract. This led to the solution we required.
Who serves the notice in a design and build?
The Employer is to serve the notice.
Should notices be served By post or by email?
- Traditionally under the JCT 2016 the notice is to be served by post to the address stated within the contract particulars. If an email is contained within the address box and both parties have confirmed that this is an acceptable method of serving notices then this would also be acceptable.
- It is worth noting that under the JCT 2024 DB that there is now the provision for serving notices to emails and allows each party to include an email as well as an address.
What are the timings associated with the Termination notices?
- The initial notice which states the breach and that the contractor must stop the breach within 14 days from receipt otherwise the Employer will terminate the contract. This 14 days when sent by post can be assumed to be 14 days + 2 days for arriving at the contractor by post.
- If the contractor fails to stop the default the Employer can then issue the notice of termination up to 21 days after the expiry of the previous notice.
- If the Contractor does stop the breach within 14 days but then repeats the same breach again the Employer is entitled to terminate the contract.
How did you manage and deal with the drawings following the contractor going into administration?
- Fortunately all drawings were held on a share point. The Client just had to ensure they were in possession of all copywrites required to continue to use the other contractor’s drawings. The original consultants were all retained.
Why was the client’s preference to use the same framework of approved contractors?
These were the contractor’s that were approved by the Client’s vetting process. These are the contractors they use for all of their projects. It would have to get special board approval to use an alternative contractor who wasn’t approved by the framework.
What were the provisional sums and what were the values of them?
- Dewatering (£15,000)
- Removal of insulation (£20,000)
- Piling (£10,000)
- Retaining walls (£10,000)
- Insulation (£20,000)
- Brickwork remedials (£10,000)
What is the brownfield grant funding expenditure deadline?
The expenditure deadline requires the client to draw down a certain amount of the funds against the project to unlock the remaining tranche of the funds which had already been secured for the project.
When was the Grant Funding Expenditure Deadline?
- November 2023
Is the project still going on?
Yes commenced on site in November 2023
What happened between the deadline and the main contract?
The contractor commenced on site and undertook some minor works in the period of agreeing the contract on an internal agreement within the companies.
What is the difference between receivership and administration?
- Receivership is typically appointed by a secured creditor and their main responsibility is to secure the secured creditors debt and they do not act in the interests of all stakeholders or creditors. Once the debt has been satisfied the receivership will typically end and the company can continue to operate or other insolvency proceedings may commence.
- Administration can be self-appointed, by a creditor or by the court. The purpose of it is get a better result for creditors than immediate liquidation. The administrator takes over the entire management and control of the company. The administrator has the duty to act in the best interests of all stakeholders to maximise the returns for all creditors.
- Scope of Control: In administration, the administrator takes over the entire company’s management and operations. In receivership, the receiver only takes control of the assets and operations related to the secured creditor’s charge.
- Objective and Focus: Administration aims to rescue the company or maximize overall creditor returns, while receivership focuses on repaying the appointing secured creditor.
- Stakeholder Consideration: Administrators must consider the interests of all stakeholders, whereas receivers are focused on the secured creditor’s interests.
- Directors’ Powers: Directors are almost entirely sidelined in administration, while in receivership, they may retain control over certain parts of the company not covered by the receiver’s mandate.
What were the signs of financial difficulty?
- Lack of progress on site without any particular reason
- Labour resources provided to execute the works are not sufficient for the tasks in hand and frequent changes in the site staff.
Other signs can include:
* Overvaluing applications
* Materials/ plant required for the works not delivered
* Unexpected claims for additional payment.
* Word of mouth
* CCJs against a troubled party
What should the action of a surveyor be pre-insolvency?
- Reference to Companies House and carry out financial check.
- Ensure detailed records are kept
- Investigate word of mouth evidence.
- Relaxation of payment terms to temporarily assist.
- Reletting work to others
- Direct payments
- Termination
What did the financial check on the contractor uncover?
The financial checks did not uncover any specific signs of financial difficulties.
What were you hoping to uncover in the credit check?
- CCJs
- Financial difficulties through recorded business accounts.
- Recent changes in directorship
What were the grounds for termination?
- The initial notice to stating the specified defaults, would have referenced clause 8.4.1.1 and 8.4.1.2. These refer to the contractor wholly or substantially suspends the carrying out of the Works or the Contractor fails to proceed regularly and diligently with the performance of his obligations under the contract.
- Following the insolvency and the termination by the solicitor this refers to Clause 8.5.1 which entitles the Employer to terminate the contract following the insolvency of the Contractor.
What were your next steps following being notified about the administration and how did you advise the client?
- Following the notification of insolvency i notified the Employer to secure the site preventing any unauthorised access.
- Also secure any materials, plant and the site compound.
- Take an inventory of the site and value the works completed to date.
- I advised the client that the Contractor would no longer be able to insure the site and they should look into attaining insurance for the site.
- I advised the client they should seek legal advice as they needed to terminate the contract.
- The solicitors also dealt with the termination of the contract.
- As the Client had multiple schemes with this contractor their solicitors communicated with the insolvency practitioner direct.
- Carry out a financial assessment of the project and review how much of the contract has been paid against the work actually carried out on site.
Prepare for procurement for a new contractor.
What was your advice to the client relating to insurances?
- Following the contractors insolvency, I advised the Employer that they needed to take out insurance to ensure that the site was insured as the Contractor would no longer be able to insure the site.
Was the contract terminated following the insolvency?
- Yes, the Clients solicitor ensured the contract was correctly terminated following the contractual procures.
What are the contractual procedures when terminating the contract?
- If the contractor demonstrates grounds for termination the include the following:
○ becoming insolvent - Or in line with Clause 8.4.1:
○ Contractor failed to proceed regularly and diligently.
○ Contractor wholly or substantially suspends their carrying out of their obligations under the Contract.
○ Contractor’s refusal of an instruction to comply with the removal of non compliant works.
○ Failure to comply with the CDM regulations
○ Sub-contracted or assigned the works without consent. - Issue a formal Notice of Default. This will specify the breach and provide the contractor with 14 days to remedy the breach.
- If the Contractor fails to remedy the breach the Employer can proceed with the termination.
- They can within 21 days from the expiry of the notice issue a Notice of Termination to the Contractor clearly stating the grounds for termination and referencing any relevant contract clauses.
- The Notice must be served in accordance with the Contract which is in D&B 2016 by the Employer typically by mail to the address stated in the contract for notices.
What should the QS/ Employer do following the termination of the contract?
- Secure the site and any work, materials and equipment.
- Conduct an assessment of the works completed to date, including quality and compliance with contract specifications. (CoW had been assessing compliance throughout.)
- Evaluate the financial status of the project including the payments made and any outstanding balances.
- Ensure no further payments are made to the insolvent contractor.
What was your advise to the Client regarding the witholding of monies? (Regarding case study following insolvency)
I advised the Client that they should pay no further payments should be made to the Contractor following the insolvency
What are the five points of PPE?
- Hard hat
- Glasses
- Vest
- Gloves
- Boots
What level of CSCS card do you have?
Professional Qualified Person - Managers and Professionals Test
What would you do if you saw bad health and safety on site?
- Notify the responsible person on site which will be the site manager.
- If the hazard is safe to leave i would go and notify the site manager straight away.
- If not I would ask someone to get the site manager or i would stand by the hazard and ask someone else to get the site manager.
How do you identify the clients brief?
- An initial meeting with the client should be held. Here i would discuss the clients vision, goals and primary objectives for the project.
- Could also use a questionnaire if preferred or more suitable.
- Visit the site and review any existing documentations
What documents should be used for agreeing terms with a Client?
- Scope of services - Outlining the services to be provided including tasks, responsibilities and deliverables.
- Fee Proposal - Comprehensive breakdown of fees to provide each service with explanation of the calculation. Also, include any additional fees or potential extra fees which may arise.
- Can use a Project Schedule with key milestones and deadlines.
- Terms and conditions - Including payment terms, confidentiality clauses and dispute resolution procedures
How do you ensure that the terms of appointment are appropriate?
- First need to understand the scope of the project.
- Then ensure that the terms comply with relevant laws, regulations and professional standards.
- Discuss the draft terms with the client to ensure they understand and agree with the scope, fees and other conditions.
- Ensure documentation is detailed enough and include scope of services, project timelines, fee structure and payment terms, roles and responsibilities, terminations clauses etc.
- Confidentiality agreement/ NDA in place where appropriate.
Can you tell me the difference between litigation and adjudication?
- Litigation is formal legal proceedings in court. It is an extended process and the case is not confidential. Litigations is a more costly process due to legal fees, court fees and other expenses.
- Adjudication is a 28 day process where a third party adjudicator is appointed to provide a binding decision but can be revisited by arbitration or adjudication. The proceedings are private and therefore the decision is not public knowledge. Due to its less formal process and shorter timeframe it is a cheaper option than litigation.
Can you tell me what the difference between arbitration and adjudication is?
- Adjudication is a 28 day process where a third party adjudicator is appointed to provide a binding decision but can be revisited by arbitration or adjudication. The proceedings are private and therefore the decision is not public knowledge. Due to its less formal process and shorter timeframe it is a cheaper option than litigation.
- Arbitration is carried out by a third party arbitrator or arbitrators. It is a longer process than adjudication and can take several months. The decision is binding and the proceedings are not made public, ensuing confidentiality.
Who pays for litigation?
- Typically at the start of the case each party will be responsible for their own costs.
- Following the judgement, the losing party will typically be ordered to pay the winning party’s legal costs, in addition to their own.
Explain what you know about business plans?
- Business plans are a strategic documents which outlines the vision, goals and roadmap for a company. They serve as a blueprint for business operations and growth. Key components of a business plan are:
○ Executive Summary
○ Business Description
○ Market analysis (target market/ industry analysis)
○ Information about business organisational structure, ownership and management teams qualifications.
○ Marketing and Sales strategy (target Clients and marketing plan)
○ Financial projections (profit goals and funding requirements)
○ Operational Plan
○ Growth Targets
○ SWOT Analysis
How do you feed into your companies business plan?
Although I am not responsible for writing my companies business plan i can feedback to the company with any suggestions i may have. This can include suggestions for areas of potential business we could target or where i am aware of processes being done by our rivals which we could do to improve the service we offer.
Can you give me an example where you experience unconscious bias?
- When attending site to meet a contractor with a colleague who was a placement student who was older than me. The Contractor assumed that my colleague was me when we were first meeting as this was the first time we had met in person.
What have you done to promote diversity and inclusion?
- In my role within my company I am not directly responsible for hiring or the recruitment process. However, whenever possible I try to be inclusive in my behaviour. This can be in ways such as inviting more junior members of the team to site with me when going for meetings etc, or when meeting with Contractor senior management teams.
What does it mean to be M42 compliant?
- This relates to accessible and adaptable dwellings and is a standard set by the building regulations. It is included in Local Planning Policies and typically requires between 10-30% of housing to comply.
- In the London Plan 90% of new build housing is to meet M4(2) and 10% meet M4(3) which is Wheel chair user dwelling.
- M4(1) are Visitable dwellings this is the baseline standard for dwellings in the UK unless a local planning policy requires higher.
What features improve accessibility to buildings?
- Accessible routes - such as ramps and step free paths.
- Parking near to the entrance of a building.
- Accessible entrances - such as wide doorways, automatic doors, level thresholds.
- Wide hallways and corridoes - free from obstacles and well lit with non-slip flooring.
- Handrails on both sides of staircase, contrasting step edges
- Elevators
- Accessible/ disabled toilets
- Adjustable height desks
- Voice activated systems
- Emergency call systems
- Contrasting colour signage avoiding certain colour combinations
What does GDPR stand for?
General Data Protection Regulations
How does GDPR affect your day-to-day role as a QS?
- Ensure that person data that i collect is secure. Including clients, contractors, suppliers and employees.
- I must ensure that i have a lawful basis for collecting the information.
- I must ensure that i only collect information from people that is necessary to ensure data minimisation.
- I must ensure that i use appropriate storage measures for documents and files to ensure data security.
- I have to undertake annual refresher training relating to GDPR internally to ensure i am aware of the regulations.
- When disposing of documentation and working in public i have to ensure that personal data is not accidentally shared.
What are the rights under GDPR?
- Right to:
○ Access
○ Rectification
○ Erasure
○ Restrict Processing
○ Data Portability
○ Object
What elements did you cost for when estimating pile costs?
- Specific prelims items such as site preparation and piling mat, mobilization and demobilization costs.
- Types of pile
- Ground beam
- Pile caps
- Potentially any temporary works
- Disposal of any waste materials generated.
What was the cost of the piling?
Piling is typically around £85/m plus £2,000-£5,000 per pile cap depending on its size and the amount of reinforcement. Plus the cost of the ground beams and the prelims items.
How did you go about recommending alternative steel frames?
When I became aware that the project would not be within the budget, I suggested that the portal frame would be an area for value engineering for example by introducing a trussed frame or a column type system so a reduced tonnage of steel would be required.
What was the value of the Wammy project?
£1.6million
Was the contract amended?
No
What were the councils procurement rules?
- They follow public procurement procedures
- This involves an open procurement portal which is open to anyone to submit a tender to complete the work.
- The tender submissions will be assessed against pre-agreed tender assessment criteria.
- All Contractor queries are submitted to a public online portal which will then be distributed to the design team. All queries and answers will be published on the portal for all parties to see.
Why did you recommend a single stage tender?
A single stage was required by the public procurement guidelines.
Why was D&B chosen?
- At the point of entering into the contract the design was not fully developed. The Client had developed a set of Employer’s Requirements with their architect which clearly outlined the scope of works that they required. This meant that it was pretty straight-forward for a competent contractor to follow.
- There was the option for a SBC with CDP but the Client preferred the Contractor to take full design responsibility.
Why do you think the council has the £4,000,000 limit in place and how does the value affect the chosen procurement route?
- A two-stage tender process is beneficial for larger more complex projects where contractor design input can be used to increase buildability.
- The two-stage process allows for earlier contractor involvement.
- This can increase the quality of the overall design and therefore provide better value for money.
- A single stage tender provides a more competitive price and therefore where possible on more simple schemes this route will try to provide better value for money.
- The Government published in their Construction Playbook document their preference to establish design teams and develop designs prior to tenders being carried out to try to ensure more successful projects. Therefore, by requiring single-stage tendering on all projects below £4.5 million means that a design team will have to take the design to RIBA stage 4 prior to tender to get a good fixed price from the contractor in a single stage tender.
How did you assess the in-house contractors submission offered value for money?
- Following the receipt of their submission i analysed their costs in several ways.
- I Compared the elements of the CSA against the costs provided by the lowest tendering contractor.
- I also compared the rates against some benchmark rates from similar schemes.
- I also noted that the in-house contractor’s price was a fixed sum and the lowest tenderer provided several provisional sums.
- Therefore the in-house contractor provided more cost certainty. This meant that i felt that this offer provided the best value for money to the client.
How did you manage the responsibility of the contractors taking on the works that were already completed on site?
- We invited the contractors to site to survey what works had been completed against what work was still proposed within the design.
- As it was Design and Build the contractor had to take responsibility for ensuring that they’d allowed necessary amounts for completing the remaining works.
What is a change control process?
- A change control process is a systematic approach used to manage changes to the scope, design or cost of a construction project. It ensures that all changes are properly documented, evaluated and approved prior to instruction and implementation. This helps to ensure that costs are controlled and requests for change by a party are dealt within set timescales.#
- The steps in a change control process can be:
○ Identification of change by a party - the change request form submitted by the party should include a detailed description of the change, the reason for the change and its potential impact on the project.
○ Evaluation of Change - Assess the impact of the change on the project. This includes, programme, cost, quality and risks.
○ Approval process - Timescales and formal approval process for confirmation.
○ Implementation - instruction of the change
What are the time scales in a change control process?
I typically set the change approval process as between 1 and 2 weeks where possible depending on the complexity or scale of the project.
How do you ensure your client is gaining value for money on these instructions?
- Ensure the scope of the variation is clearly defined to avoid any ambiguity
- Wherever possible agree the cost of the variation prior to instruction.
- Ensure variations are valued in accordance with the rules contained within section 5 of the contract.
- Where subcontractors are being used request subcontractor quotations.
- Compare costs against similar projects and other cost data.
What was the rate of liquidated damages on Lichfield Street?
£180 per plot per week and part thereof.
What is the process of deducting damages?
- Under JCT the Employer is only entitled to deduct liquidated damages if the correct contractual procedures are followed. Following the Contractor not acheiving Practical Completion by the Completion Date they must issue a Non-Completion Certificate. Following that the Employer must issue a Withholding notice to the contractor that states that the Employer intends to withhold Liquidated Damages at the rate stated within the Contract Particulars.
- Within the Black Book document titled “Damages for delay to completion” which was issued on the 13th May 2024 this outlines best practice for withholding damages. It states that under JCT Liquidated Damages recovery should be dealt with seperate to the Interim Payment procedures. Therefore, certificate should be issued as normal and then a pay-less notice should be issued rather than deducting the damages from the payment certificate.
- Alternatively, an Employer could invoice the Contractor directly for their damages.
Do you need to give notice to the contractor of your intention to withhold damages?
- Contractually the Employer must issue a Withholding notice to the contractor following the issue of a Non-Completion Certificate. The Withholding Notice will state that the Employer intends to deduct liquidated damages at the rate stated in the contract particulars. Withholding Notice can be issued anytime up to 5 days before the final payment is made.
- It is also good practice to inform Employer and Contractor of their entitlement to Liquidated Damages as early as possible as it promotes transparency and fairness.
How did you advise of buildability during the VE process in the Wammy?
During the VE process Buildability wasn’t really impacted as the changes made were mainly aesthetic changes.
Potential positive impact on the performance as the elimination of plasterboard will likely reduce the maintenance costs of the building as people banging studs against the walls might damage the plasterboard.
Did I consider the programme when advising?
During the VE process the programme wasn’t impacted much as the aesthetic nature of the changes meant that the Contractor was able to provide costs for savings within a few days and following that we were able to enter into the contract.
Therefore the only impact one the programme was the time it took to agree the Contract Sum.
What are the limitations when using BCIS and Spons?
- Limitations of BCIS and Spons include:
○ Data can be historical and may not reflect current market conditions in volatile markets..
○ Average costs may not reflect regional variations in labour and material costs.
○ The rates can assume standard building construction methods and costs may vary on complex projects.
○ Spons specifically is updated annually and only a sample of the data is individually assessed and the rest will be inflated by the annual inflation rate. As some costs may increase by more than inflation some of the rates can become outdated.
How do you adjust data like this for its purpose?
- Costs can be adjusted to reflect forecasted inflation.
- Costs can also be rebased to account for location factors. This makes allowances for differences in material and labour costs in certain locations.
Can you tell me about the current market conditions are in Liverpool at the moment?
- Currently the construction market is Contractor dominated. Contractor’s are able to pick and choose where they tender and there is not enough competition. This often leads to single stage tenders receiving poor or limited returns and Contractor’s choosing to try to push for negotiation or two-stage PCSA routes.
- Although, the market is still active and there are several large projects ongoing, the Construction industry was severely impacted by a dominant developer having legal issues with the Council a few years back which halted a lot of the larger schemes which were due to be completed by now.
What are the implications to the client of issuing practical completion?
- Following the issue of Practical Completion the Employer will no longer be entitled to withhold liquidated damages.
- The Employer will be responsible for maintaining and insuring the Works as the risk of damage to the works transfers to the Employer.
- The Defects Rectification Period will commence.
- Typically half of the retention is released following Practical Completion with the other half being issued after the Defects Liability Period.
What is the contractual implication of partial possession?
- Partial Possession is a process when the Employer requests consent form the Contractor to occupy a section of the works early prior to Practical Completion being acheived.
- If the Contractor grants consent and partial possession is granted then practical completion is considered to have been acheived for the area the Employer will occupy and the implications to the Employer will be as if PC will be take place following the issue of a Partial Possession Certificate.
- This will mean that Employer will be responsible for insuring the works and risk of damage will be transferred to them.
- The defects rectification period will commence.
- Half the retention will be released for the section of works that is handed over.
Why was it not recommended to use sectional completion dates within the contract if the client required some of the properties early?
- Sectional completion dates were used. However, the Contractor missed the completion dates.
- The Employer needed to occupy some of the properties prior to the Sectional completion which included some of the external areas. The Employer was able to take Partial Possession of the plots in a section prior to the full Sectional Completion being acheived.
- There were no Liquidated Damages claimable for the external areas within the Contract and therefore it made sense for the Employer to occupy the properties by partial possession and leave the external parts where not complete under the responsibility of the Contractor.
What was the process of advising the client that design and build was most suitable on Kidsgrove?
- The Employer wanted cost certainty at the point of entering into the Contract however, the design had not been fully completed. The Employer wanted the Contractor to take responsibility for the design and ensuring the building met their requirements.
- The Design and Build Contract provided the Cost Certainty and provided the project with a single point of responsibility for the full project which is a cleaner approach than splitting the responsibilities between Contractor and Employer.
- This was also relevant as some of the remaining building elements which remained did not suit splitting responsibility.
Some of the elements which was not fully finalised was the piling design as there was some complications relating to the piling design and this element is not suitable for a CDP.
Why is Structural Design not suitable to be instructed under a CDP?
Structural Elements require design integration with other design elements such are architectural and MEP systems. This means that it is appropriate for all of these disciplines to be instructed by the same party.
Did you not consider using a traditional with a Contractor Design Portion?
We did but there was still a chance that the foundation design could change once the excavation commenced due to a culvert passing under the site. There had been surveys carried out to locate it but as some piles and ground beams were bridging the culvert there was a chance that a pile may have to be moved slightly. Therefore i felt that the best approach was for the Contractor to take total responsibility.
What surveys did the Client instruct to locate the Culvert under the site?
- A ground penetrating radar survey was used in the early stages of design
- A CCTV survey was used to inspect the inside of the culvert.
How do you deal with an architect being novated across to the contractor?
- Novation is a process where the contractual rights and obligations are transferred from one party to another.
- In the early stages of the project the architect works for the Employer to develop the initial design in the early RIBA stages.
- Following the selection of the Contractor and the execution of the Contract in a D&B contract the Contractor becomes responsible for the responsibility for the design and construction.
- At this point the Architect would be novated over to the contractor.
- The Employer’s legal representatives would draft up the novation agreement. This document will detail the transfer of the architects contractual obligations and rights which are being transferred and will detail their scope of services.
- The Novation Agreement will be executed by it being signed by the architect, employer and contractor which formalises the Novation.
What is the difference between ER’s and CP’s?
- The Employer’s Requirements outline the specifications, design criteria, scope of work, performance standards and quality expectations that the Employer requires the Contractor to fulfil. The documents provide a detailed description of what the Employer expects to be delivered in terms of the final product and overall project outcomes.
- The Employer’s Requirements form a crucial part of the tender and pricing information provided to the contractors during the procurement process. The Employer’s requirements serve as the basis for the contractors to prepare bids and proposals.
- The Contractor’s Proposals are developed by the Contractor in response to the Employer’s Requirements during the tender process. They detail how the Contractor intends to meet the Employer’s Requirements, including the proposed design solutions, methodologies, construction techniques.
- These proposals will include detailed plans, specifications, schedules and cost estimates that outline what the Contractor will provide under the contract. The Contractor’s proposals will become part of the Contract Documents on acceptance.
- The Contractor’s Proposals will typically take precedence over the Employers Requirements where there is a discrepancy between the two documents. However the individual terms of the contract should be reviewed as it can be an amendment to the Contract that can be made to make the Employer’s Requirement’s take precedence.
Which document takes precedence in a dispute?
- In an unamended JCT D&B contract the CP’s will take precedence.
- This is because the Contractor’s Proposals are the Contractor’s final agreed-upon method for meeting the Employer’s Requirements and are considered part of the binding contract.
How did you calculate the cost per square metre on Monmouth road?
- I estimated the costs using an elemental assessment following the guidelines set out in NRM1 (New Rules of Measurement 1). This involved breaking down the project into individual elements, such as substructure, superstructure, finishes, services, etc., and assessing the cost of each element separately.
- I calculated the cost per square metre based on the Gross Internal Floor Area (GIFA), which I measured in line with the IPMS (International Property Measurement Standards) definition of GIFA. This ensures consistency and accuracy in the measurement of the floor area.
- For each element, I used recent cost data and benchmark information. This data was derived from similar projects and adjusted based on the specific characteristics of the Monmouth Road project.
I considered the design information available to me at the time, including architectural drawings, specifications, and any other relevant documents. - I adjusted the estimated costs based on current market conditions, inflation rates and location-specific factors. This helps to ensure that the estimate reflects the true cost of the project in the current economic environment.
- Finally i entered the costs into a report which clearly explained the process and cost per square meter to the Client.
How did you know that the area you measured on this scheme is similar to your other areas measured and matched with your benchmarking data?
- When measuring the scheme i use standard measurement methodologies. So i measure in terms of GIFA which is defined by the IPMS.
- The benchmarking data provided by BCIS and my other similar projects are all measured on the same basis so that i know that the cost per square metre is comparable.
Is there a set of rules you follow for that measurement?
- The main rules of measurement for QS’s is the NRM (New Rules of Measurement). These include NRM1, 2 and 3.
- Other measurement standards relevant to QS’s are the IPMS (the International Property Measurement Standards which define some key terms which are used within the NRM such as GIFA.
- And the RICS Code of Measuring Practice which can be used in conjunction with the other two documents to measure areas and spaces within buildings.
- Using standardised measurement rules and guidelines, QSs ensure consistency and accuracy within their practice.
What other ways at the early stage of a project could have used other than cost per square meter?
- In addition to using unit rates on a cost per square meter basis, costs can be assessed on a functional unit basis. For example, on the Monmouth Road project, we provided an estimate on a cost per bedroom basis. This approach is useful for projects where specific functional units (e.g., bedrooms, hospital beds, classrooms) are a key driver of costs.
- Some other examples of functional units that can be used can be cost per occupant, cost per bed/seat.
- Infrastructure projects such as roads, railways or pipelines may use a cost per linear metre basis for assessing the cost.
Would you have recommended a BoQ for the works at Lichfield street if you used a SBC rather than a minor works?
- A Bill of Quantities (BoQ) is typically used for Standard Building Contracts with Quantities or with Approximate Quantities. It serves as a detailed pricing document included in the tender process, allowing main contractors to price the works accurately.
- BoQs take a considerable amount of time to produce during the pre-tender period, as they involve a detailed breakdown of all work items.
- When using a BoQ in an SBC with Quantities, the Employer is responsible for any errors within the BoQ. This can add a layer of risk for the Employer if the BoQ is not meticulously prepared
- The scope of works at Lichfield Street involved the installation of several gates, which is relatively straightforward and uncomplicated.
- Given the simplicity of the project, a Minor Works contract was more appropriate. This type of contract is well-suited for projects with a simple scope of works and allows for a priced schedule of costs broken down by gate type and size.
- For this project, there was no intention to have interim valuations, as all the gates would be installed before the application for payment. This made the use of a BoQ unnecessary.
- A simpler priced schedule provided sufficient detail for pricing and managing the works without the need for the more complex and time-consuming BoQ process.
- Given the nature and scope of the works, I would not have recommended a BoQ for the Lichfield Street project if an SBC had been used. The Minor Works contract, with its simpler pricing schedule, was more suitable for the project’s requirements and ensured efficient contract administration without unnecessary complexity.
How is BREEAM scored?
- BREEAM is scored using a credit based system which are split into several different categories which include waste management, energy consumption, transport, water use, materials, health and well-being, pollution, land use and ecology, and management..
- Each credit requires the employer/ design team to carry out certain actions or meet certain requirements detailed within the BREEAM requirements. Credits are then awarded by the appointed approved BREEAM assessor based on the documentation and evidence provided
- At the end of the BREEAM process the credits are added together and a percentage is calculated out of the total credits available.
- Good is 45%, 55% is required for very good, 70% for excellent and 85% for outstanding.
- There are mandatory credits which can limit the rating acheived if certain criteria are not met.
What score is required to acheive an ……?
Good is 45%, 55% is required for very good, 70% for excellent and 85% for outstanding.
How does an air source heat pump work?
- The ASHP is a device which is used to transfer heat from the outside air to heat a building.
- The ASHP has a fan which draws in outside air. The heat from the air is used to transfer the refrigerant gas from liquid to gas.
- The refrigerant gas is pumped into a compressor which increases the temperature of the gas.
- The gas is then passed through a heat exchanger inside the unit which transfers the heat into the buildings heating system.
- As the heat is lost from the refrigerant the gas turns back to a liquid and it returns to the start of the cycle to restart the process.
- This is similar to the way a fridge works.
How did the maintenance cost of the ASHP compare to the traditional boiler system?
- Currently, ASHPs generally have higher maintenance costs compared to traditional heating systems. This is primarily due to the fact that ASHP technology is newer, and there are fewer trained technicians available to service them, which can drive up costs.
- Despite the higher maintenance costs, ASHPs offer significant savings in energy costs. They are more efficient than traditional boilers because they transfer heat rather than generating it by burning fuel. This efficiency can lead to substantial reductions in energy bills over time.
- The energy savings from using an ASHP typically outweigh the higher maintenance costs. This means that, although the initial and ongoing maintenance expenses might be higher, the overall cost savings from reduced energy consumption can result in a relatively short payback period.
- Additionally, ASHPs contribute to sustainability goals and can be an attractive option for reducing carbon footprints, which may offer further financial benefits through incentives or compliance with regulatory requirements.
- In summary, while the maintenance costs for ASHPs are currently higher than those for traditional boiler systems, the significant energy savings they provide can lead to a short payback period, making them a cost-effective and sustainable choice in the long run.
What sustainable technologies did you consider for Wammy?
- On the Wammy we also included PV panels and rainwater harvesting.
- We also looked at including EV charging points however the client did not go ahead with this as the end building occupier did not want to take responsibility for the maintenance of them.
What is the process you go through when certifying practical completion?
- When certifying practical completion as the Employer’s Agent. I would typically be notified by the Employer or the Contractor that i believe that Practical Completion has been acheived.
- I would request the supply of necessary documents such as as-built drawings and documents needed for the satisfaction of the H&S file and the O&M manuals.
- I would review the documentation against my handover checklist.
- Following approval by myself and typically the Employer’s Clerk of Works i will attend site to review the general progress and review the quality of the work.
- I will note down any minor outstanding defects that myself or other members of the Client team have noticed and issue them to the Contractor.
- The Employer will then sign over the keys and ensure that insurance is lined up to be in place following the issue of the Practical Completion Certificate.
- I will then issue my Practical Completion Certificate along with the defects list that i have requested to be rectified during the defects rectification period.
What would be included in a typical Handover Checklist?
- As-built drawings and specification
- Operation and maintenance manuals for installed systems and equipment.
- Health and Safety Documentation - Required under the CDM Regulations. This includes risk assessments, method statements and safety data sheets and fire safety information.
- Testing and commissioning certificates
- Warranties and guarantees
- Building control and regulatory compliance information
- Energy performance information
Is the Contractor for Defects which are not included within the snagging list at practical completion but that arise during the defect rectification period?
- The contractor has the obligation to rectify defects which arise during the defects rectification period not just those that are identified on the initial snagging list.
- Defects which arise should be notified to Contractor during the DRP by the EA.
How do you make sure work has been completed to a satisfactory standard?
- The EA should have a good understanding of the Contract requirements and should have thoroughly the ERs and the CPs as these documents outline the standards and specifications that the works must meet.
- The EA should undertake regular inspections of the site throughout construction to monitor progress and to ensure compliance with the specifications.
- The Employer may also employ a Clerk of Works who reviews compliance with the specifications/ contract.
- Undertake a final inspection for Practical Completion where a thorough inspection of the entire project and will use a checklist based review to verify all elements of the work have been completed satisfactorily.
- Compile a defects/ uncompleted works list and issue it to the contractor for rectification.
- The EA will usually with use of specialist consultants oversee the testing and commissioning process of building systems
- Ensure that the buildings are compliant with building regulations, codes and standards.
What do you consider the differences are of a CA and an EA?
- The EA and CA roles are a very similar role which are specific to the relevant contract they relate to.
- The EA is relates to Design and Build contract and the CA relates to the Standard Building contracts.
- Some differences between the two roles include:
○ EA has a broader project management type approach where as the CA will be more focussed on ensuring both parties are complying with the terms of the contract.
○ The EA can have the authority to make decisions on behalf of the employer, particularly related to design and contractual matters.
○ The CA will act a bit more impartially, administering the terms of the contract trying to balance the interests of both the contractor and the employer.
○ The EA will assess both design and construction quality as ensure that the design meets the Employer’s requirements. Whereas the CA will focus on construction quality ensuring that the work complies with the pre-defined design and contract specifications.
What are the rules or procedures you have to comply with when handling clients money?
- When handling Client’s money an RICS firm must follow the RICS Professional Standards. These outline the requirements for money handling.
- An RICS regulated firm is required to have the following procedures in place when handling clients money:
○ All Clients money must be held in an individual bank account which is clearly named with the client and projects name.
○ The account cannot be overdrawn.
○ The account must be insured by the RICS Client Money Handling scheme.
○ Their must be an allocated responsible person who is competent and trained to handle the clients money.
○ The Client must be able to access the funds if required.
○ There must be accurate record keeping in place showing all transactions that have been made.
○ The firm should undergo regular audits to ensure the proper handling of clients money.
What is the structure of the RICS?
- The RICS has a structured governance framework to ensure it operates effectively and maintains professional standards. The key components are as follows:
- The RICS is self-governed by bye-laws.
- The Governing Council is the highest authority within the RICS and is responsible for the overall strategic direction and governance of the institution.
- The Regulation and Standards Board oversees the development and implementation of professional standards and regulatory policies.
- There are other boards and committees which focus on other specific areas.
- The RICS is led by a President, who serves as the figurehead of the institution. The President is supported by other senior officers including the CEO and members of the governing Council.
- The Current president of the RICS is Tina Paillet.
What is included in a Health and Safety File?
- Description of the project
- Key contacts - Client, contractor, designer, PD and Principal Contractor.
- Design and Construction Details
- Hazard information - identified hazards and risk management information.
- Materials and Equipment
- Maintenance and Cleaning information
- Structural information
- Services information
- Fire Safety information
What is the order of who gets paid in the events of insolvency?
The Insolvency Act 1986 outlines the order of the hierarchy for which creditors are apid by an administrator in the UK.
- Fixed charge holders
- Costs and Expenses of the Administration
- Preferential Creditors - e.g unpaid wages, unpaid pension, accrued holiday pay
- Prescribed part - A prescribed limit of funds are set aside to pay unsecured creditors (capped initially)
- Floating Charge Holders
- Unsecured Creditors on a pro-rata basis. (This is where the Employer would fall)
- Shareholders
How much detail is required to make a proper assessment?
- The tender price has to be sufficiently split to allow for cost comparisons between different building elements.
- This allows me to identify areas of high cost and then discuss what has been included for exactly with the contractor.
What would you include in a tender report?
- Title page, details page, contents
- Description of project and overview of the tender process.
- Include the submissions
- Any initial review and observations - highlight any exclusions and clarifications within the submissions.
- Compliance check
- Detailed comparison between the submissions.
- Any adjustments to normalise the tenders to enable equal comparison.
- Detailed evaluation
- Conclusions and recommendations.
What would you include in a Cost Plan Report?
- Title page, details page, contents, version control, executive summary
- Project brief.
- Standard of measurement adopted
- Sources of data and methods of calculation used.
- Schedule of accommodation
- Assumptions and exclusions
- Elemental summary
- Comparison between this version of cost report and last showing differences.
- Detailed breakdown of construction costs to an elemental breakdown (also including):
○ Prelims
○ Professional fees
○ Risk allowances
○ Inflation
○ Contractors OH&P - Design information/ specifications used.
- Value engineering options
What would you include in an Order of Cost Estimate Report?
- Title page, details page, contents, executive summary.
- Project brief
- Standards of measurement and method of calculation adopted.
- Sources of data used. (Benchmark data used)
- Schedule of accommodation
- Elemental summary (potentially including functional unit rate)
- Detailed basis of construction cost (where appropriate) including:
○ Facilitating works
○ Sub-structure
○ Superstructure
○ Finishes
○ FF&E
○ Services
○ External works - Preliminaries
- Professional fees
- Risk allowances
- Contractor OH&P
- Design information and specifications used.
What would you include in a set of Tender Documents?
- Draft contract and any amendments
- Tender information including:
○ Introduction and instructions to tenderers
○ Information required
○ Form of tender
○ Tender assessment criteria
○ Document Register - Employer’s Requirements
- Preliminaries
- Design information including:
○ Architect
○ Structural Engineer
○ M&E - Pricing Document
- Site information
○ Ground investigation
○ Planning information
○ Topographical Survey
○ Sewers information - Pre-Construction Information
What would you include in a set of Contract Documents?
- Cover page and contents
- Main contract and any amendments
- Preliminaries
- Employer’s Requirements
- Contract Sum Analysis & Programme
- Contractor’s Proposals
- Existing Drawings
- Document Register
What would you typically be included within a set of Employer’s Requirements?
- Employer’s General Requirements
- Employer’s Design Requirements
- Design Information
What would typically be included in a set of Contractor’s Proposals?
- Front cover & Contents Page
- Offer letter/ Form of Tender
- CSA
- Drawings
- Methodology
- Specification & Schedules of Deviations
- Design & Drawings
- Programme
What is included within your elemental breakdown?
- Facilitating Works
○ Site clearance
○ Demolition
○ Remediation (Invasive species)
○ Surveys
○ Temporary works - Substructure
○ Ground works
○ Concrete works
○ General items - Superstructure
○ Frame
○ Upper floors
○ Roof
○ Stairs/ ramps
○ External walls
○ Internal walls
○ External doors and windows
○ Internal doors - Internal finishes
○ Floor
○ Wall
○ Ceiling - Furnishings, fittings and Equipment
- Services
○ M&E
○ Sanitary installations - External Works
○ Site preparations
○ Hard landscaping
○ Soft landscaping
○ Boundary treatments
○ External drainage
What are the key Elements to an Order of Cost Estimate calculation?
- Facilitating Works
- Substructure
- Superstructure
- Internal finishes
- Furnishings, fittings and Equipment
- Services
- External Works
- Preliminaries
- Contingencies
- Professional fees
- Inflation
- Main contractor Overheads & Profit
What would be included in a PCSA?
- The main PCSA agreement
- Scope of services
- Programme of works and key milestones and deliverable dates
- Fees and payment structure
- Design information available
- Pre-Construction Information
- Tender information - Instructions to tenderers and Evaluation Criteria
What would be included in a value for money statement?
Similar to a tender report however it will typically focus on one specific submission. Value for money will be assessed against other criteria such as effectiveness of option, risks associated, sustainability and will finish with conculsions and recommendations.
- Executive summary
- Introduction
- Project objectives and desired outcomes
- Options appraisal
- Evaluation of efficiencies and effectiveness of options according to resource allocation.
- Sustainability assessment
- Risk analysis of each option
- Stakeholder consultation
- Conclusions and recommendations
What are the principles of value for money?
- Economy - Minimising the cost of resources used for an activity while ensuring quality.
- Efficiency - Achieving maximum output from the resources used.
- Effectiveness - Ensuring that the outputs achieve the desired outcomes.
What legislation is relevant to the principles of inclusive environments?
The Equality Act 2010
Building Regulations - Part M (Access to and use of Buildings)
The Planning Act 2008
Disability Discrimination Act 1995 - Superseded by the Equality Act 2010.
What legislation is relevant to the principles of Health and Safety?
Health and Safety at Work Act 1974
The CDM Regulations
Management of Health and Safety at Work Regulations 1999.
COSHH Regulations 2002
Reporting of Injury, Diseases and Dangerous Occurrences Regulations 2013 (RIDDOR)
Control of Asbestos Regulations
What are the main types of asbestos?
Blue
Brown
White
What are the 7 principles of GDPR?
Lawful, transparent and fairness
Confidentiality
Data minimisation
Integrity
Storage limitation
Accuracy
Accountability
What are the 8 rights to data subjects under GDPR?
The right to/ of:
Erasure (be forgotten)
Be informed
Rectification
Access
Data portability
Object to processing
Restrict Processing
in relation to automated decision making and profiling
What legislation is relevant to sustainability in the UK?
Climate Change Act 2008
Environmental Protection Act 1990
Building Regs - Part L
The Energy Act
Flood and Water Management Act 2010
What RICS guidance related to Sustainable Construction?
RICS Sustainable Construction and Property Standards
RICS Whole Life Carbon Assessment for the Built Environment
What UK legislation relates to Bribery?
The Bribery Act 2010
What are the offences and penalties under the Bribery Act?
Offences:
Bribing Another Person
Being Bribed
Bribery of a Foreign Public Official
Failure of a Commercial Organisation to Prevent Bribery
Penalties:
Individuals - Up to 10 years in prison and an unlimited fine
Organisations - Unlimited fines
What is the Key Legislation relating to Money Laundering?
Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017
What constitutes a change under D&B?
A change to the employer’s requirements which makes necessary the alteration or modification of the design, quality or quantity of the works or the imposition, addition, alteration or omission by the employer of any obligations or restrictions in respect of access to the site, limitations of working specifications or working hours, or execution or completion of any works in any specified order.
What are the rights under the Housing Grants, Construction & Regeneration Act 1996?
The right to be paid in interim, periodic or stage payments.
The right to be informed of the amount due, or any amounts to be withheld.
The right to suspend performance for non-payment.
The right to adjudication.
Disallowing pay when paid clauses.
What do you include in a typical pre-start meeting agenda?
Introductions
Contract - Scope of works, contract sum, commencement/ completion dates, insurances and design drawings
Communications and procedures - Lines of communication, change control process, RFI Process, Samples, Monthly progress reports, interim payment applications, payment for materials off site.
Health and Safety - F10, Construction Phase Health and Safety Plan, RAMS, Emergency Contact Details.
Any other business
Date of First Progress Meeting and Interim Valuation Dates
How would you determine if a provisional sum is defined or undefined?
It goes on to set out four distinct elements that must be obtainable from the work not yet completely designed, which are:
- the nature and construction of the work;
- a statement of how and where the work is
fixed to the building and what other work
is to be fixed thereto; - a quantity or quantities which indicate the
scope and extent of the work; and - any specific limitations identified.
To the extent that all the four elements can be provided in the work description, that work shall be described as defined. Where
one or more elements cannot be provided, the work is to be described and treated as undefined.
What are the recitals and what do they contain?
Recitals are the introductory statements in a written agreement or deed, generally appearing at the beginning, and similar to the preamble. They set out a précis of the parties’ intentions; what the contract is for, who the parties are and so on.
What are the Articles and what do they contain?
These set out what is agreed between the parties.
They include the obligations of the contractor, contract sum, collaborative working, EA, ER’s CP’s and CDM Regulations PD PC, BR PD PC, Dispute resolution
What are the contract particulars and what do they contain?
The contract particulars in a construction contract (or appointment agreement) set out the aspects of the contract that are particular to the project to which the contract relates.
Document References, descriptions of sections, key dates, addresses for service of notices, liquidated damages, Limit of Contractor’s liability, rectification period, insurance option, adjudicator/ arbitrator
What is meant by Attestation and what is in the section of the contract?
Attestation is the process of confirming that something is correct or genuine, or that a particular requirement has been met.
The section highlights the different methods of execution and the process for each method.
What are the sections of the conditions within the JCT D&B contract?
Section 1: Definitions and Interpretations
Section 2: Carry out the Works
Section 3: Control of the Works
Section 4: Payment
Section 5: Changes
Section 6: Injury, Damage and Insurance
Section 7: Assignment, Performance Bonds and Guarantees, Third Party Rights and Collateral Warranties
Section 8: Termination
Section 9: Settlement of Disputes
What are the schedules within the JCT D&B Contract?
Schedule 1: Design Submission Procedure
Schedule 2: Supplemental Provisions
Schedule 3: Insurance Options
Schedule 4: Codes of Practice
Schedule 5: Third Party Rights
Schedule 6: Bonds
