Quantification and Costing of Construction works

Question 1

What are the primary purposes of a BoQs?

Answer 1

To provide a coordinated list of items with their descriptions and quantities, that comprise the works, which in turn enables contractors to prepare tenders efficiently, and accurately.
BoQs provide a basis for the valuation of executed works for the purpose of making interim payments to contractors
BoQs provide also basis for the valuation of varied works.

Question 2

Who must quantify the extent of works to be executed ?

Answer 2

The extent of works to be executed can be quantified either by Employer’s QS/Cost manager or the main contractor or the work package contractor.

Question 3

What are the benefits of preparing detailed measurement for the purpose of bill of quantities ?

Answer 3

• It saves time of several contractors measuring the same design in order to calculate their bids.
• It provides a consistent basis for obtaining competitive bids.
• It provides an extensive and clear statement of the works to be executed
• It provides a a very strong basis for budgetary control and accurate cost reporting of the contract such as post contract cost control, including:
  a) preparation of cash flow forecasts
  b) basis of valuing variations
  c) basis for the preparation of interim payments.
• It provides data to support claims for tax benefits (e.g. capital allowances, value added tax).

Question 4

What are the types of BoQs ?

Answer 4

1) Firm BoQ - Prepared when design is complete based on completed detailed design. Firm BoQ allows obtaining a lump-sum price for a fully designed project.
2) Approximate - Used on projects where it is not possible to prepare a firm BoQ at the time of tender. Approximate BoQ is subject to a remeasurement as built.
3) Elemental - Prepared using the elements of a building as sections i.e. wall elevations, structural frame, roof structure etc.

Question 5

Who prepares each type of BoQ?

Answer 5

1) Firm and approximate BoQ - These types of BoQ for a lump sum contract is normally prepared by Employer’s QS, whereas under D&B the Employer’s team will prepare ‘employer’s requirements’ and BQ or quantified schedules of works will be prepared by by either the main contractor or main contractor’s work package contractor.
2) Elemental BoQ - This type of BoQ suits the Employer’s Qs as means of checking cost plan and preparing a cost analysis but it may not suit a contractor from a programme planning perspective.

Question 6

What section BoQ comprises of ?

Answer 6

Form of Tender (document used to record the main contractor’s price for completing the building project), including certificate of Bona Fide tender.
Main Summary
Preliminaries (Information and Requirements and Pricing schedule)
Measured Works
Risks
PS
Credits for materials arising from the works
Daywork Provisional
Annexes

Question 7

What are preliminaries ?

Answer 7

Preliminaries consist of items NOT directly related to the measured works, such as:
- Management of the building project
- Site establishment
- Security
- Safety
- Environmental protection
- Mechanical plant
- Employer’s completion and post-completion requirements

Question 8

What two main sections do Preliminaries consist of?

Answer 8

Information & Requirement and Pricing Schedule

Question 9

Explain the purpose of Information & Requirement

Answer 9

The purpose of I&R section is to describe the building project particulars:
The drawings upon which BoQ was based
The work in general
The site and any adjoining properties
The form of contract
Employer’s specific requirements
Any specific limitations or restriction that may impact on the sequence or method of working
Including any special methods of measurement when it’s deviated from NRM2

Question 10

What is pricing schedule ?

Answer 10

Pricing schedule is simply a schedule in which the contractor inserts preliminary costs relating to the employer’s requirements and all contractors’ cost items (including management and staff, site accommodation, services and facilities, mechanical plant and temporary works items.

Question 11

What is the main part of the BoQ ?

Answer 11

Measured works, which list all items of work to be undertaken. The quantities and description of items should be determined in accordance with a set of tabulated rules of measurement.

Question 12

What is contingency ?

Answer 12

A residual risk, which is possible but can not be predicted with a certainty, which the Employer wishes to transfer to the contractor. The contractor is required to provide a lump-sum fixed price for taking, managing and dealing
with the consequences of the identified risk should it materialise.

Question 13

What are provisional Sums ?

Answer 13

Provisional sums are sums included for any items of work that are anticipated, but for which no firm design
has been developed, including any sums listed for any items of work that are to be executed by a statutory
undertaker.

Question 14

What are defined provisional sums

Answer 14

Defined provisional sums are those which have been described in sufficient detail that the contractor is expected to have made allowance for them in their programming, planning and pricing preliminaries.
An example might be where a defined amount of brickwork is required, but the exact design has not be finalised and so the price cannot be accurately determined. Or the cost of installing a timber frame where the specific type of timber has not yet been specified and so its price is not known.

Question 14

What are undefined provisional sums

Answer 14

Undefined provisional sums are less well described as they refer to work which is not completely designed. As such, the contractor cannot be expected to make allowance for them in their programming, planning and pricing preliminaries. This means the contractor may be entitled to an extension of time and/or additional payments when the actual works are undertaken.
An example of an undefined provisional sum might be work required below an existing structure, where the ground conditions, and so the extent of work required, cannot be determined until the structure is demolished and the ground opened up.

Question 15

What are Credits for materials arising from the works ?

Answer 15

This section of the BQ comprises a list of materials arising from the works for which the employer requires
the contractor to offer a credit.

Question 16

What are dayworks provisional?

Answer 16

This section of the BQ gives provision for the contractor to competitively tender rates and prices for works,
which might be instructed to be carried out on a daywork basis.

Question 17

What are Annexes ?

Answer 17

The annexes comprise information referred to in the BQ where it is not contained in, or to be issued as, a
separate document. Examples are: performance specifications (if not included in project specification);
copies of quotations; and copies of communications with statutory undertakers

Question 18

What information are required for measurement ?

Answer 18

Specification (Prescriptive and performance)
Drawings GA drawings comprising of component drawings, schematic drawings, drawing register of existing building.
Schedules
Reports and other information

Question 19

What is Works Breakdown Structure (WBS) ?

Answer 19

A tree structure to which can be used to define and divide a building projects into key aspects. It is developed by starting with the end objective (i.e. WBS Level 0 - the entire building project) and successively subdividing it into the main components and sub-components that
make up the entire building project

Question 20

What is cost breakdown structure ?

Answer 20

CBS is initiated by WBS and is used to allocate cost to each aspect/facet of the building at each level of WBS.

Question 21

What are prescriptive specifications ?

Answer 21

Prescriptive specifications are written documents that give details about the project’s materials and instructions for their installation. Architects and engineers usually determine prescriptive specifications. Therefore, they are responsible for the proper installation of materials, not the contractor.

Question 22

What are performance specifications ?

Answer 22

Performance (open) specifications describe the result that is required from particular items and leave it to the contractor or supplier to satisfy that requirement. In effect it requires the contractor or supplier to complete the design.

Question 23

How dimensions should be measured ?

Answer 23

Dimensions should be measured to the nearest 10mm. 5mm and over shall be regarded as 10mm and less
than 5mm shall be disregarded.

Question 24

How quantities less than one unit should be given ?

Answer 24

Quantities less than one unit should be given as one unit. Quantities measured in tonnes (t) shall be given to
two decimal places.

Question 24

How quantities less than one unit should be given ?

Answer 24

Quantities less than one unit should be given as one unit. Quantities measured in tonnes (t) shall be given to
two decimal places

Question 25

How should be given quantities in tonnes over one unit ?

Answer 25

quantities measured in tonnes (t), should be given to the nearest whole number.

Question 26

What is Prime Cost ?

Answer 26

Where the exact type of product or component cannot be specified, an estimated price for the product or
component shall be given in the description as a prime cost price (PC price). State, for example, ‘Allow the PC
price of £x per thousand delivered to site’, ‘Allow the PC price of £y per m2 delivered to site’, or ‘Allow £z
each delivered to site’. PC prices shall exclude any allowance for the main contractor’s overheads and profit,
which are dealt with separately.

Question 27

What is provisional quantity ?

Answer 27

It’s an estimated quantity where the work can be described and given in items in accordance with the tabulated rules of measurement but
the quantity of work cannot be accurately determined

Question 28

How to validate re-measured provisional quantity ?

Answer 28

Work items identified as a ‘provisional quantity’ shall be subject to re-measurement when they have been
completed. The ‘approximate quantity’ shall be substituted by the ‘firm quantity’ measured, and the total
price for that item adjusted to reflect the change in quantity. Where the variance between the ‘provisional
quantity’ and the ‘firm quantity’ measured is less than 20 per cent, the rate tendered by the contractor shall
not be subject to review. Where the variance is significant (i.e. 20 per cent or more), the rate can be
reviewed to ensure that the rate is fair and reasonable to both the employer and contractor

Question 29

What are three stages of the measurement and bill process ?

Answer 29

Measurement stage: Abstract stage: Draft bill stage:

Question 30

What is BIM ?

Answer 30

Building Information Modelling is the process of bringing together and sharing information in a digital format among all those involved
in a construction project, including architects, engineers, surveyors and builders

Question 31

What is NRM 1 ?

Answer 31

NRM 1 is the Order of cost estimating and cost planning for capital building works. It provides guidance on the quantification of building works for the purpose of preparing cost estimates and cost plans.

Question 32

What is NRM 2 ?

Answer 32

NRM 2 provides detail measurement for building works. It provides guidance on the detailed measurement and description of building works for the purpose of obtaining a tender price.

Question 33

What is NRM 3 ?

Answer 33

NRM 3 is the Order of cost estimating and cost planning for building maintenance works. It provides guidance on the quantification and description of maintenance works for the purpose of preparing initial order of cost estimates during the preparation stages of a building project; cost plans during the design development and pre-construction stages.

Question 34

What are the columns on a dimension paper ?

Answer 34

column 1 - the timesing column; this column is useful on the occasions where there are identical or repeat
items;
column 2 - the dimension column; this column is used to record dimensions;
column 3 - the squaring column; this column is used to record the computed quantities; and
column 4 - the description column; the widest column this is used to compose the description of the
measured items, in accordance with NRM2. This description will appear in the final bills of quantities.
Finally, the right hand side of the dimension column is reserved for what is referred to as; the waste
calculations. They’re not waste at all really, they are the ‘workings out’ behind the figures entered into
column 3

Question 35

What are the options for different types of pricing documents ?

Answer 35

Bill of Quantities, Schedule of Rates (SoR), Contract Sum Analysis, Schedule of works, Activity schedules.

Question 36

What is the difference between NRM2 and SMM7 ?

Answer 36

Within NRM 2 elements are broken down further with 41 work sections against the 22 TRADE sections in SMM7
many small items deemed to be included within the rates (these had to be priced separately within SMM7
the flexibility to produce cost plans by using NRM1 when full drawings and a specification is not available with the expectation to use NRM2 as further details becomes available
clearer definitions of prime cost and provisional works and allowances for risks,
he structure of NRM2 has been designed to be compatible with the widespread adoption of Building Information Modelling (BIM)

Question 37

What is CSA ?

Answer 37

A contract sum analysis is generally prepared by a contractor as part of their tender on design and build projects. It breaks down the contractor’s price into a form allowing the client to analyse it and to compare it to other tenders, and may then be used as a basis for calculating payments due to the contractor as the works progress.

Question 38

What is a lump sum contract ?

Answer 38

It’s a fixed sum contract, used when the Employer is able to define accurately what they require.

Question 39

What is a lump sum

Question 40

What is a re-measurement contract ?

Answer 40

It’s a contract in which prices are based on approximate quantities. This may be necessary on projects where the type of works required can be described in reasonable detail when they are tendered, but the amount cannot. For example, excavation works where the quantity of excavation required is difficult to assess until after the works have begun.

Question 41

What is schedule of works ?

Answer 41

Schedules of work (or schedule of works) are ‘without quantities’ instructional lists often produced on smaller projects or for alteration work.

Question 42

What is a variation ?

Answer 42

A variation (Compensation Event in NEC type of contract) is an alteration to the scope of works, in the form of an addition, substitution or omission, from the works described in the contract.

Question 43

What is the reason for variations to occur ?

Answer 43

Changes in the client’s requirements.
Statutory changes or enforcement.
Change in conditions.
Geological anomalies.
Non-availability of specified materials.
Development of the design after the contract has been awarded.

Question 44

What are the Reasons for variations ?

Question 45

How variation can be valued ?

Answer 45

Variation ca be valued :
a) On pro-rata basis based on the contract rates for the works of identical nature and same circumstances.
b) At adjusted contract rates if any of the conditions differ from the contract rate’s components for example type of materials.
d) Daywork sheets based on the actual labour hrs, materials and plant used.
e) Based on fair and reasonable rates by for example comparing two or free quotations received from a specialist contractors, or based on rates obtained from pricing books such as SPONs and BCIS.

Question 46

What adjustment can be applied to prices?

Answer 46

Adjustment with regard to: Quantity, quality (specification), price inflation, geographic (location where the construction takes place).

Question 47

Different types of pricing and measurement

Answer 47

Square meterage with a rate per square meter for the type of building, Element unit quantities using element unit rates ( the measurement is not as broken down as in BoQ and the rates are inclusive rates of all the things that go to make up the given item), or full quantities using individual rates.

Question 48

Why do quantities need to be measured in uniform way?

Answer 48

Building works need to be measured in uniform way for industry-wide consistency and to allow benchmarking, also to encourage the adoption of best practice and help avoid disputes.

Question 49

Can you tell me what is your understanding of RICS code of Measuring Practice?

Answer 49

The purpose of the Code is to provide succinct, precise
definitions to permit the accurate measurement of buildings
and land, the calculation of the sizes (areas and volumes)
and the description or specification of land and buildings
on a common and consistent basis. T

Question 50

When would it be used in your day to day employment?

Answer 50

This may be required
for valuation, management, conveyancing, planning,
taxation, sale, letting, or acquisition purposes.

Question 51

GEA, GIA and NIA how are they each measured?

Answer 51

Gross External Area is the area of a building measured externally at each floor level
Gross Internal Area is the area of a building measured to the internal face of the perimeter walls at each floor level
Net Internal Area is the usable area within a building measured to the internal face of the perimeter walls at each floor
level.

Question 52

What new standards have been introduced (ICMS)?

Answer 52

In 2021, recognising the importance of reducing carbon emissions in construction, the ICMS Coalition developed the third edition. This provides a common reporting framework allowing the interrelationship between construction costs and carbon emission to be explored. The third edition provides the opportunity to make decisions about design, construction, operation, and measurement of the built environment that optimise environmental sustainability.

Question 53

Will the Employer’s Requirements be available at cost plan stage?

Answer 53

Yes, Employer’s requirements can be available at cost plan stage in the form of concept design or a very simple specification to a fully developed performance specification.

Question 54

Which method of measurement would you consider is the most appropriate for measuring civil engineering works?

Answer 54

The most appropriate for measuring civil engineering works is CESMM4, which is the Civil Engineering Standard Method of Measurement.

Question 55

In the document suite the New Rules of Measurement (NRM) what are the key differences between NRM 1 and NRM 2?

Answer 55

The main difference is that NRM 1 provides guidance on the quantification of building works for the purpose of preparing cost estimates and cost plans, whilst NRM 2 provides guidance on the detailed measurement and description of building works for the purpose of obtaining a tender price.

Question 56

How do British Standards affect the measurement of construction works?

Question 57

What is your understanding of the shorter schedule of cost components?

Answer 57

it is used for NEC contract options A and B and only to assess compensation events. The full “Schedule of Cost Components” is used for options C,D and E and is used to form the basis of each application as well as any compensation events.

Question 58

How do the Building Regulations affect the measurement of construction works?

Question 59

What current challenges is Covid and/or Brexit bringing to Quantification & Costing?

Question 60

Can you think of other benefits for producing a BQ?

Answer 60

BoQs provide a basis for the valuation of executed works for the purpose of making interim payments to contractors
BoQs provide also basis for the valuation of varied works.

Question 61

Which NRM covers BQ production?

Answer 61

NRM 2 as it provides detail measurement for building works. It provides guidance on the detailed measurement and description of building works for the purpose of obtaining a tender price.