Quantification and Costing Flashcards
Who produces SPONS?
Aecom.
What are considerations for adjusting cost data?
1) Inflation
2) Location
3) Size of the job
4) Project specifiities
What are the two types of BoQ?
Firm and approx
How do the two types of BoQ differ in risk apportionment?
Firm BoQ - Client takes the risk on quants.
Approx - Contractor takes the risk on quants.
You reference BoQ and schedule of rates, can you name two more pricing documents and when they may be used?
1) CSA (contract sum analysis)
2) Schedule of works
Can you give me 4 elements within NRM 1?
1) Substructure
2) Superstructure
3) Finishes
4) FF&E (Fixtures Furnishings and Equipment)
5) Services
6) Pre-fab
7) Works to existing building
8) External Works
On Chelsea Barracks, can you explain how you obtained “multiple quotations” and then how you assessed them?
On variations, the Contractor issue quotations to undertake the works. This would typically include going out to the market to get prices from subcontractor’s.
I assessed the quotations from the Contractor in accordance with the JCT valuation rules.
What would happen if you are not able to agree a quotation with the contractor?
In my assessments, I always aim to act fairly and reasonably. If I was unable to agree the variation at first, I would look to understand why and to mitigate this dispute. However, if I see my assessment as being fair and reasonable, then my assessment of the works would stand, and it would be for the Contractor to dispute this.
On Confidential Project Infrastructure, what was the cause of delay? Was the Contractor entitled to both time AND money?
The cause of the delay was because the Client’s design team were late in issuing their design to the Contractor.
This constituted a relevant matter, meaning the Contractor was entitled to both time and money, yes.
On Chelsea Barracks Building 8, can you explain why the contractor was entitled to more money for defective works?
This Contract was for the fit-out element. The shell and core had been completed by a contractor a few years before.
The fit-out contractor was allowed time prior to entering the Contract to identify any issues with the Shell & Core that could affect their cost. One of the issues they found was that the slab was out of tolerance.
As the previous Contractor met the requirements for the build, as the slab could have been acceptable if it was 5% out of tolerance, it meant the previous contractor was not liable.
What was your advice to the contractor on Chelsea Barracks Building 8?
The problem was that the quote they submitted used the number bags of screed rather than using NRM.
I advised the Contractor they need to measure in accordance with NRM, as per the Contract. I quantified the overall area, and applied the CSA rate to come to an agreement on the overall cost.
You mention two methods of adjusting for delay - what are they?
1) Take off the number of weeks delay from the amount completed.
2) Add the number of weeks delay to the overall prelims period.
What was your advice to the contractor on Chelsea Barracks Building 6?
That they had made no adjustment to their prelims, and they were valuing on the contract completion date rather than the forecasted completion date. I advised that they had overclaimed for their time based prelims and needed to account for the delay.
Who produces BCIS?
RICS
What does BCIS stand for?
Building Cost Information Service
What are pros and cons of SPONS and BCIS?
BCIS is good for general benchmarking and comes from a variety of sources. However the projects that feed into it are hidden so unsure the number of projects, and the specifics that might be cost drivers
SPONS is good for specific items, but is only updated once a year
Why would you use a prime cost? How are the costs split out?
When the specification is unknown, so it is a supply only rate but the quants and prelims are defined.
When would you advise using a schedule of rates as the pricing document?
I would advise on using a schedule of rates as the pricing document in stage 1 of a 2 stage tender (PCSA agreement), or in partnering where there is repeat work.
On Chelsea Barracks you reviewed the cost of changes. What happens if the variation is urgent and needs to be instructed quickly?
Typically, I have seen these items instructed as costs to be agreed.
However, I am aware it is best practice to agree the costs prior to instructing.
Under JCT, what are the valuation rules?
A set of rules used for valuing change and valuing interim payments.
They are split by the works being measurable and unmeasurable.
If they are measurable:
- Contract rates
- Quotations
- star rates
- reasonable rates
If they are not measurable
- Dayworks
When measuring screed of Chelsea Barracks, what was the advice you gave? Could you not ascertain the m2 coverage provided per bag?
I could have, however this might have lead to inaccuracies.
I sought it best to measure in accordance with NRM 1 by measuring in m2 and applying the CSA rate for screed to come to the overall cost, which subsequently was less than the Contractor had initially quoted.
RICS Interim Valuations and Payments Guidance states that until an extension of time is granted, no adjustment should be made to the time based preliminaries. Why then did you reduce the Contractor’s claim. Is this not unfair?
It is guidance, and would be overvaluing given the information provided by the EA.
Therefore reducing the prelims was an accurate reflection of the work on site, and was a a fair and reasonable valuation.
