L1 - Costing

Question 1

What is the build up to a rate?

Answer 1

Labour, plant, materials and OH&P

Question 2

What different forms of pricing documents are you aware of?

Answer 2

I am aware of
– Contract sum analysis
– Schedule of rates
– Schedules of works
– BoQ
Contract Sum Analysis – used in Design and build, is a breakdown on the contract sum and a response to the ER’s from the contractor. Used when unlikely to be a BoQ.
Schedule of Rates - List of staff, types of labour and plant hire rates which a contractor lists an hourly rate. A list of agreed costs at which the contractor will do the works. Usually best for simpler, repeat works
Schedules of works - Alternative to BoQs but do not include quantities, they are ‘without quantities’ instructional lists. Simply list the work required, information to quality should be provided by reference to specification. Often used on small projects or alteration works.
BoQ - document prepared by QS, tenders pricing same descriptions and quantities.

Question 3

What is a provisional sum?

Answer 3

An allowance for works where the cost cannot be defined.

Question 4

What are the different types of provisional sums?

Answer 4

Defined - extent known, scope isn’t
Undefined - nothing is known

Question 5

What are provisional quantities?

Answer 5

Provisional quantities of work whose specification is known, but the exact amount yet is to be determined.

Question 6

What is a prime cost?

Answer 6

Allowance for the supply of work or materials.

Prime cost sums are the financial adjustments of work whose extent is known but whose specification is yet to be determined.

Question 7

What are the 4 types of risk under NRM1?

Answer 7

Design development risk
Construction risk
Employer Change risk
Employer other risk

Question 8

How would you include contingency on the 4 risk types?

Answer 8

Early stages of design, design risk is typically higher. Once the design is further e.g. Stage 4, the contingency should reduce

Question 9

What are examples of design risk being allocated per RIBA Stage? (depends on building use)

Answer 9

Stage 2 - 5%
Stage 3 - 3%
Stage 4 - 2%

Question 10

What are typical construction contingencies per RIBA stage? (fit out)

Answer 10

Depends on size of project, programme length
e.g. 5%

Question 11

What sources of cost data do you know and what’s the order of best to worst?

Answer 11

Recently tendered rates
Internal benchmarking
BCIS
Spons

Question 12

What are some problems with market testing

Answer 12

Supplier may night maintain price
Costs are not reflective of the time which works will be out to tender
Costs may not be competitive

Question 13

What are the Valuation rules (Section 5.4 Contract)

Answer 13

1. CSA rates
2. Adjusted CSA rates
3. Dayworks