Quantification And Costing

Question 1

Talk me through NRM and differences between 1,2 and 3.

Answer 1

NRM_1 Order of cost estimating and cost planning
NRM_2 Detailed measurement for building works
NRM_3_Building Maintenance Works

Question 2

What is IPMS?

Answer 2

International property measurement standards. Introduced to standardise property measurement across the world. Research has found that measurements have been up to 24% different.

Question 3

Can you tell me what the difference between NRM 1 and 2 are and how this differs from the RICS Code of Measurement.

Answer 3

RICS code of measurement practice is now obsolete but described the different areas used in property.
NRM is measurement rules for construction and lifecycle costing work.

Question 4

If I was a developer and told you that I had a site in the middle of London which I wanted to build a residential block on what would you advise me in relation to cost.

Answer 4

I would say this depends on site considerations, the method of construction, the procurement and the design, however most residential projects in London range between £2500 to £3500/M2 GIFA.

Question 5

GIFA v GEA v NIA

Answer 5

GEA - Gross external area (IPMS 1)
GIA - Gross internal area (IPMS 2)
NIA - Net internal area (IPMS 3)

Replaced by IPMS from January 2018, RICS professionals are expected to adopt the Property Measurement Professional Statement in place of the Code for offices and Residential unless local laws, or a client require an alternative. Professional Statements for other property classes including industrial and retail will be added over time as the IPMS is expanded.

Question 6

How do you quantify internal partitions? Cost Plan. Does this differ from contractor.

Answer 6

Section 2.7 of NRM1. details including thickness to be stated. Measured in m2 on the centre line. No deduction made for openings.

Question 7

Talk me through how you would measure concrete foundations.

Answer 7

For piles the pile mat would need to be measured in m2. A cost for the piling plant and moving the piling rig would need to be factored in and measured by nr. The pile details would need to include diameter (mm) and depth of piles (m) and measured in nr. The disposal of excavated material would need to be cost and measures in m3. Cutting off tops of the pile would need to be measured by nr.

Question 8

How do you measure steel. What is the current cost?

Answer 8

Under NRM1 steel needs to be measured in tonnage. The fire protection detail needs to be in the description. The tonnage for each steel member can be found on the structural engineers schedule.

Question 9

What are the ways of valuing change?

Answer 9

• Similar nature – use pricing schedule
• Contractors quotes
• Dayworks
• First principle
• Schedule 2 quote

Question 10

How much was the crane hire on St Leonards?

Answer 10

£2,000/week

Question 11

When did the IPMS residential come into effect?

Answer 11

May 2018

Question 12

What is the difference between IPMS and code of measurement practice?

Answer 12

IPMS defines GEA, GIA and NIA as IPMS 1, IPMS 2, IPMS3. It is used worldwide not just the UK, and there are slight measurement differences, most notably internal dominant face.

Question 13

What is the internal dominant face?

Answer 13

The inside finished surface comprising 50% or more of the surface area for each vertical section forming an internal perimeter.

Question 14

Do you know the valuation rules for changes in the JCT contract?

Answer 14

This differs between contracts. In JCT DB the pricing document will need to be used, if not then a fair and reasonable rate. If this is not applicable, dayworks would need to be used.

Question 15

What are the valuation rules in the contract for St Leonard’s?

Answer 15

• The valuation of additional or substituted work shall be consistent with the values of work of a similar character set out in the Contract Sum Analysis, making due allowance for any change in conditions under which work is carried out and/or any significant change in the quantity of the work so set out.
• The valuation of the omission of work set out in CSA shall be in accordance.
• Any valuation shall include necessary allowances for any addition or reduction of site administration, site facilities and temporary works.
• Non Measureable Works Day works = prime cost of all material labour and plan with a % for prime cost.

Question 16

What is a schedule 2 quotation?

Answer 16

The procedure in Schedule 2 aims to regulate the prices of quotations submitted by the contractor. The contractor’s quotation must cross reference, where relevant, to the rates and prices in the contract bills. Therefore, the contractor cannot simply disregard its tender rates and offer inflated prices when quoting for variations.

Question 17

What is the rule for variations under the adjusted bill rates under JCT?

Answer 17

If the conditions under which the work is carried out or the quantities of work are changed by the variation, the valuation of that variation is based on bill rates with a ‘fair’ allowance made for the difference in conditions and/or quantity.For e.g. if substructure work is due to be done in summer but is then in winter, the cost may be different because of weather related issues and shorter days etc.

Question 18

What is the rule for variations under fair rates and prices under JCT?

Answer 18

Where the variation relates to work for which there is no bill item, the work should be measured and valued at ‘fair rates and prices’. Usually the parties agree to use actual cost as the basis for establishing a ‘fair rate’. In these cases the employer or its quantity surveyor may ask the contractor to provide copies of invoices and details of labour time and cost for doing the work. Once the cost is established a reasonable percentage is usually added to provide an allowance for contractor’s overheads and profit.

Question 19

What is the rule for variations under dayworks in JCT?

Answer 19

If variations cannot be properly measured they can be valued on a ‘daywork’ basis.
These can be valued as:
Option 1 - Percentage addition (prime cost to which a % is added for OHP)
Option 2 - All inclusive rates (quoted at tender and incorporated in the contract documents. Include allowance for OHP)

Question 20

What are the benefits of having a standard method of measurement?

Answer 20

1) Provides structure for information
2) Defines units of measurement for different items (m, m2, m3, t)
3) Provides rules as to what is included within each item
4) Defines terms used to avoid disputes
5) Allows familiarity to development so measurement becomes quicker and easier
6) Provides clear system of structuring other project information

Question 21

What are the different methods of measurement for a Cost Estimate?

Answer 21

1) Functional Unit
2) Floor Area
3) Elemental
4) Approximate Quantities
5) Bill of Quantities

Question 22

What is a Prime Cost Sum?

Answer 22

The term ‘prime cost sum’ (PC sum) is an allowance for the supply of labour, plant and materials to be provided by a contractor or supplier that will be nominated by the client. The allowance is exclusive of any profit mark up or attendance (such as material handling, scaffolding and rubbish clearance etc) by the main contractor.

Question 23

What is the Contractor deemed to have allowed for within a prime cost sum?

Answer 23

A prime cost is exclusive of profit or attendance by the contractor.

Question 24

How are prime costs adjusted?

Answer 24

They are finalised based on invoices of the supplied items, plus an amount for overheads and profit for the main contractor.

Question 25

How would you advise preliminaries are cost on a CSA?

Answer 25

I would suggest that these are projected using NRM1 or NRM2 depending on the procurement of the project.

Question 26

What are the preliminaries?

Answer 26

These are part of the tender and contract documents which provide a methodology of the project and how it will be built. The costs of this will form part of the project cost however will not be part of the actual construction. The NBS provide a guideline of a preliminary document which describes the work in whole.

Question 27

What did you advise regarding the costing of the facade for Cellzome?

Answer 27

As I was not aware of the specification of the facade, I advised the client that I would use assume a high end specification of the curtain walling and this would factor in risk. I advised that including a provisional sum would make it more difficult to compare when the facade package would go out for tender. On the contract placement report, I was able to explain that a high end unitized curtain walling system was assumed, and the differences between the pre-tender estimate and the tender returns.

Question 28

What was the concrete rate in the Bristol area compared to London?

Answer 28

This was at £175/m3 compared to £185/m3 in London.

Question 29

Why do costs vary per region?

Answer 29

• Local labour costs
• Vicinity of sites in relation to amenity
• Travel distances and existing land conditions
• Availability of local and specialised labour
• Ease of access to the site
• Transportation routes and costs.

Question 30

What is the difference between IPMS 1 and GEA?

Answer 30

• Balconies are to be measured in IPMS but listed seperately. Excluded from GEA
• covered galleries are to be stated seperately in IPMS but as part of GEA in comp

Question 31

What is the difference between IPMS 2 and GIA?

Answer 31

• areas occupied by reveals of windows (IDF) included within IPMS but excluded from comp
• balconies, roof terraces and mezzanines to be measured seperately in IPMS

Question 32

What is the difference between IPMS 3 A, B and C?

Answer 32

• IPMS 3a is the effective internal areas including external walls and equates to GEA.
• IPMS 3b is the effective internal areas including internal walls and equates to GIA
• IPMS 3c is the area of exclusive occupation, excluding floor areas occupied by internal walls and columns.
• All of IPMS 3 excludes communal areas and voids.

Question 33

What is effective floor area?

Answer 33

This is the measurement of flats (but not houses) for council tax purposes. Is similar to IPMS 3C.

Question 34

Why did the NRM replace SMM7?

Answer 34

• There was no distinguish between cost estimates, plans and BofQ.

Question 35

What does the NRM1 provide guidance for?

Answer 35

• OCE
• Cost Planning
• Includes:
• Facilitating works
• Building works
• Main contractor prelims
• Main contractor OHP
• Project/ design team fees
• Other development costs
• Risk (4 types)
• Cost limit
• Inflation

Question 36

What checks can you do to ensure BIM quants are correct?

Answer 36

• Compare 2D GIA measures with ceiling and floor finishes
• Check if elements stop at interfaces, eg. columns at slabs
• Have objects replaced elements that impact on quantity checks. Eg. Complete lift core as an object.

Question 37

How did you form the provisional sum on cellzome for the facade?

Answer 37

If the design for the facade did not develop by the time the package went out to tender then this package would be tendered as a provisional sum. However, my estimate was not tendered as a provisional sum as there was a more detailed design by the time the package was tendered. This provisional sum would be defined as there was information on the nature, the fixing to the building and quantities.

Question 38

What does the NRM state needs to be included for a provisional sum to be defined?

Answer 38

• 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 that indicate the scope and extent of the work.
• Any specific limitations and the like.

Question 39

On St Leonards, explain how you advised on a better way of valuing prelims?

Answer 39

Preliminaries were cost as pro-rata of the site duration until the planned completion date. As some elements of the preliminaries were not going to be used for the whole site duration, it made the costs of these items unevenly spread out and not the actual costs. By recommending to allocate these costs for the actual duration this meant the contractor’s cashflow was aided and my recommendations were more accurate.

Question 40

On St Leonards, what was in the preliminaries that wouldn’t be in other projects?

Answer 40

The site was in central London and there would be congestion charges. There was also an agreement to have offsite rented site offices after a certain stage in the project as the site was too congested for the site cabins to continue for the whole site duration.

Question 41

What does fair and reasonable mean under the JCT?

Answer 41

This means that an agreement must be made with the contractor and EA. The cost must be built up how it is in the pricing document – for example multiple quotes from subcontractors or through first principles.

Question 42

On St Leonards what are the variation rules?

Answer 42

The first instance is to use the same costs in the pricing document, if the cost of the change is of the same workmanship and quality. If not, then a fair and reasonable rate would need to be agreed

Question 43

What tile was introduced to the scheme on St Leonards?

Answer 43

The tile was known as rural tobacco and was in a herringbone pattern to replace a painted wall. The material cost was £53/m2 and I allowed for 0.5 hours for installing the tile at £35/hr. I also allowed for 15% subcontractor prelims and 5% sundries. The total area was 80m2 and total cost was £6900.

Question 44

What was the difference in workmanship in the tile variation?

Answer 44

As the previous proposal was painting there was a different amount of time for the wall finish.

Question 45

What is the steel rate?

Answer 45

Around £2,000/tonne.

Question 46

What are the problems with provisional sums to the PQS?

Answer 46

• Contractor may get economies of scale/ cheaper prices PQS would not know about.
• Not much incentive for contractor to bring cost down.

Question 47

How did Carillion get liquidated?

Answer 47

Carillion were liquidated because of excessive debts, taking on PFI projects that they could not afford and having massive liabilities. Effectively taking on too much risk.

Question 48

What risks are insurable under JCT all risks?

Answer 48

Contractors All Risk Insurance covers the work that you are currently doing on a building site, and can pay for the cost of repairing or redoing anything that is damaged or destroyed, including the cost of the labour, the materials and the tools.

Question 49

What is a way of assessing climate change risk in the property sector?

Answer 49

Institute of environmental management and assessment (IEMA) Principle series: climate change adaption and EIA.

Question 50

What are ways of mitigating risk?

Answer 50

• Delays/ LDs
• Solvency vetting
• Insurance including PI
• Special risks and force majeure
• Guarantees and bonds

Question 51

What is the NRM3?

Answer 51

Order of cost estimating and cost planning for building maintenance works.
NRM3 provides a structured basis for measurement of building maintenance works, encompassing the annualised maintenance and life cycle major repairs and replacements of constructed assets and building components – which are carried out post-construction procurement and throughout the in-use phases of the constructed assets, or built environment.

Question 52

What are the different types of data collection for BIM models?

Answer 52

• Measured building survey (MBS) (approach is very useful low cost approach to providing as-built information of existing structures.)
• 3D reflectorless wireframe surveys (Using total station equipment to survey the significant features of a building to produce 3D reflectorless wireframes. This is often combined with measured building surveys for complex areas of existing structures which cannot be completed using MBS.)
• Laser scanning (This process involves the use of laser scanners supplemented by a total station control traverse. Scan targets should be co-ordinated to produce a point cloud database of the structure.)
• New-build building information models