Q&C Flashcards
What methods of measurement are you aware of?
IPMS - Offices, Resi & Retail.
RICS Code of Measurement Practice - 6th Ed 2015 - GEA/GIA/NIA - all other buildings.
ICMS - set of measurement rules that result in a single methodology for reporting, grouping and classifying construction project costs. Basis of NRM.
NRM 1, 2 & 3 (2021) - 2021 update to align with ICMS & RIBA PoW 2020
CESMM - Civil Engineering Standard Method of Measurement.
What is NRM?
New Rules of Measurement.
Books published by the RICS to provide a set of measurement rules for estimating / cost planning / procurement for construction projects.
What is NRM 1?
Order of cost estimating and cost planning for capital building works.
What is NRM 2?
Detailed measurement for building works.
What is NRM 3?
Order of cost estimating and cost planning for building maintenance works.
What are the sections of NRM?
0 - Facilitating Works
1 - Substructure
2 - Superstructure
3 - Internal Finishes
4 - Fittings Finishes and Equipment
5 - Services
6 - Prefabricated Buildings and Building Units
7 - Work to Existing Buildings
8 - External Works
9 - Main Contractor’s Prelims
10 -Main Contractor’s Overhead and Profit
11 - Project / Design Team Fees
12 - Other Development / Project Costs
13 - Risks
14 - Inflation
What is ICMS?
International Cost Management Standards.
Provide a framework for cost and carbon management in construction from concept to completion.
What are RPI and CPI?
Retail Price Index and Consumer Price Index.
Government’s preferred measures of inflation.
Why is it important to measure the works according to industry standards and best practice?
To provide consistency and greater accuracy of pricing.
To ensure all parties price on the same basis and reduce risk of dispute.
How can Benchmarking assist Value Engineering?
It can inform the spread of cost among construction elements so you can identify if something is ‘high’.
What is GIA?
Gross Internal Floor Area:-
Area of a building measured to the internal face of the perimeter walls at each floor level.
What is NIA?
Net Internal Area:-
The usable area within a building measured to the internal face of the perimeter walls at each floor level.
Can you name some of the pricing documents we might use?
Bill of quantities (BoQ).
Schedule of rates (SoR).
Schedule of works (SoW).
Activity schedule.
Can you name some of the pricing options for construction contracts?
Lump sum.
Cost-plus.
Remeasurement.
Target cost.
Guaranteed maximum price.
What is meant by the abbreviation GEA?
Gross External Area.
This is the area of the building measured externally at each floor level.
What is a lump sum contract?
Provides for payment of a set amount.
The fixed price is determined by a contractor by estimating their cost to provide the work and then add OH&P.
What are the advantages of a lump sum contract?
The contractor takes on the pricing risk but stands to benefit from the increased profit.
Cost certainty for the employer.
What are the disadvantages of a lump sum contract?
Presents a higher risk to the contractor. If the contractor underestimates their cost hen the profit margin decreases.
Contractor may therefore increase their tender price.
What is a cost-plus contract?
Otherwise known as a cost reimbursable.
Pays the contractor for the actual costs incurred, plus a pre agreed percentage for profit.
What are the advantages of a cost-plus contract?
Since they contract is flexible in nature, the initial bid isn’t as detrimental as they are with lump sum.
Allow employers to make design changes along the way.
What are the disadvantages of a cost-plus contract?
The final contract price is uncertain until the end of the contract.
Contractor may include higher costs to increase profit.
When may a cost-plus contract be appropriate?
Works are carried out based on approximate quantities.
The actual quantities of work carried out are measured and the tendered rates are applied.
The contractor is paid for the actual work they have done.
What are the advantages of a remeasurement contract?
Since the work is tendered on approximate quantities, the contractors will submit competitive tenders.
The contractors risk is fairly low.
What are the disadvantages of a remeasurement contract?
There is less cost certainty until the project is complete.
Risk for the employer is higher.
What is a target price contract?
Target cost is set early in the project, upon completion the cost savings are shared between the contractor and employer.
This is based on the pre agreed %, often referred to as pain and gain.
What are the advantages of a target price contract?
Contractor and employer incentivised to reduce costs.
Encourages risk sharing.
What are the disadvantages of a target price contract?
Employer and contractor need to share pain and gain, this exposes the employer to greater risk.
What are the target cost contracts under NEC?
Option C - Target Cost with Activity Schedule
Option D - Target Cost with BoQ
What is guaranteed maximum price contract?
GMP sets the limit that the employer will pay their contractor, regardless of actual costs incurred.
If the actual cost is higher, then the contractor has to bear the cost.
If the actual cost is lower, the contract will state which party will benefit from the savings. Usually split using a pre agreed %.
No adjustment of tender price unless design changes are requested by the client.
What are the advantages of a guaranteed maximum price contract?
Establishes the employers maximum financial commitment.
Both contractor and employer have potential to benefit from the savings.
What are the disadvantages of a guaranteed maximum price contract?
The contractor will have to share any savings, whilst taking the risk on cost overrun.
What are contractor preliminaries?
Typically items which are necessary for the contractor to complete the works, but will not actually become part of the works, for example:
Management and staff.
Site setup.
Temporary services.
Insurances.
What is the difference between fixed and time related prelims?
Fixed are one off costs.
Time related are dependent on duration.
What is a BoQ?
BoQ provides an accurate picture of the scope of works and provides a common and consistent basis for pricing.
Based on a developed design and specification.
What is Simpsons Rule?
Simpsons is a mathematical formula for approximating the area under a curve over a given interval.
Why would you use a BoQ instead of a SoW?
Simplifies the tender process because tendering contractors will be pricing the same information. Simplifies the tender analysis.
What are the advantages of a BoQ?
Ideal for post contract cost control.
Simplified tender analysis.
Very detailed.
All tenderers are pricing the same information.
What are the disadvantages of a BoQ?
Expensive and time consuming to produce.
Potential for errors in measurement.
What is a Preamble?
A preamble is an explanation of a document that is commonly found in contracts, specifications and bills of quantities.
It can help with the interpretation of the document.
What are advanced payments?
Payments issued to the contractor in advance of completing works.
The usual rationale is to assist with cash flow.
What are the key disadvantages of advanced payments?
There may be a commercial risk to the employer.
Payment will affect the employers cash flow.
Could be concern the contractor is unable to fund the expenditure.
If the employer is happy to proceed with the advanced payment, what could be put in place to protect the employer’s commercial risk?
An advanced payment bond.
What is an interim valuation?
A document put forward by the contractor which contains their progress against each of the work elements.
What are the main elements of an interim valuation?
Prelims
Measured work
Variations
EoT costs
Materials on site
Materials off site
Prov sums
Retention
Fees
OH&P
How would you assess the interim valuation?
Normally involves the QS visiting site and checking the works by visual inspection.
What are the implications of over or under valuing the works?
Could create unreasonable financial problems for either employer or contractor. Low valuation puts the contractor at risk, whereas a high puts the client at risk.
What current challenges is Covid and/or Brexit bringing to Quantification & Costing?
More work forced online - implications in understanding how software works, calibration of scales, check measures.
Fluctuation material rates - historic data not reliable.
What information is typically shown on a payment certificate?
Date of certificate
Contract date
Key payment dates
Employer, contractor, CA details
Site address and project number
Contract sum
Gross value
Retention
Cumulative value of previous payments
Amount due (excluding VAT)
CA signature
What happens if the employer fails to pay the amount due?
The employer will be liable for interest on the amount due.
Contractor could exercise their right to suspend the works.
What is a pay less notice?
Purpose is to give the paying party the right to pay less or withhold all of the sum.
What happens if the employer forgets to issue a pay less notice?
They are contractually obliged to pay the notified sum.
Can you explain the payment timeline for the JCT D&B 16?
Contractor required to make interim application before interim valuation date.
Interim valuation date is 7 days prior to due date.
Payment notice issued by the employer no later than 5 days following due date.
28 days after the due date is the final date for payment.
A pay less notice may be issued no later than 5 days before the final date for payment.
What is a final account?
Conclusion of the contract sum and signifies the agreed amount that the employer will pay the contarctor.
What is included within a final account?
Summary
Measured work
Variations/CE’s
Adjusted Prov sums
Claims
Total of all previous payments
Delay damages
Retention
Fees
OH&P
Original contract sum
Final account sum
L1 - Why do quantities need to be measured in a uniform way?
NRM2 provides a uniform basis for measuring and describing building works. This allows for standardisation throughout the industry and a way of measurement that is consistent and understood by all.
L1 - What are the different methods of measurement?
IPMS - Offices, Resi & Retail.
RICS Code of Measurement Practice - 6th Ed 2015 - GEA/GIA/NIA - all other buildings.
ICMS - International framework for measurement - basis of NRM.
NRM 1, 2 & 3 (2021) - 2021 update to align with ICMS & RIBA PoW 2020
CESMM - Civil Engineering Standard Method of Measurement.
L1 - Can tell me what is your understanding of RICS code of Measuring Practice?
Allows for the accurate measurement, the calculation of the sizes (areas and volumes) and the description of land and buildings.
L1 - When would the RICS Code of Measuring Practice be used in your day to day employment?
It would be used to understand and define how GEA, GIA and NIA are measured.
L1 - GEA, GIA and NIA how are they each measured?
GEA - The area of a building measured externally at each floor level.
GIA - Measured to the internal face of the perimeter walls at each floor level.
NIA - Usable area within a building measured to the internal face of the perimeter walls at each floor
level.
In the document suite the New Rules of Measurement (NRM) what are the key differences between NRM 1 and NRM 2?
NRM1 is the Order of cost estimating and cost planning for capital building works.
NRM2 is the detailed measurement of building works.
L1 - What is the purpose of NRM 3?
NRM3 is the Order of cost estimating and cost planning for building maintenance works.
L1 - How do British Standards affect the measurement of construction works?
Adhere to the standards and codes of measurement. Ensure that drawings are compliant with the British standards. Anything that is blatantly wrong, inform the Architect.
How do the Building Regulations affect the measurement of construction works?
Adhere to the standards and codes of measurement. Ensure that drawings are compliant with the British standards. Anything that is blatantly wrong, inform the Architect.
