Quantification and Costing of Construction Works Flashcards
What is measurement?
The transformation of drawn information into descriptions and quantities, undertaken to value, cost and price construction work
What are the different methods of measurement for a Cost Plan
1) Functional Unit
2) Floor Area
3) Elemental
4) Approximate quantities
5) Bill of quantities
What is the most commonly used standard of measurement
NRM-New Rules of Measurement
IPMS-International Property Measurement Standards
What are the benefits of having a standard method of measurement?
1) Provide structure fro information
2) Define unit of measurement for different items,e.g.m,m2,m3,t
3) Provide rules as to what is included within each item
4) Define terms used to avoid disputes
5) Allow familiarity to development so measurement becomes quicker and easier
6) Provide clear system of structuring other information
What is SMM7?
Standards Methods of Measurement, superseded by NRM2
What is NRM1
NRM1: Order of cost estimating and cost planning for capital building works
NRM1 is a best practice guidance note offering guidance on the preparation of :
1) order of cost estimates
2) elemental cost models
3) cost plans
4) cost analysis
5) benchmark analysis
6) capturing historical cost data for order of cost estimates and elemental cost plans
7) how to describe quantifying non-measurable items such as prelims, OH&,P, Fees,Risk, Inflation
How is NRM1 structured?
P1-Context and definition
P2-how to prepare an order of cost estimate
P3-how to prepare an elemental cost plan
P4-tabulated rules of measurement for preparing cost plans
What is NRM2?
NRM2: Detailed measurement of for building works
NRM2 provides a set of detailed measurement rules for preparing a BOQ rates for the purpose of obtaining a tender price;
It also deals with quantification of non-measurable work items, contractor designed works and risks
NRM2 also offers guidance on the contentm structure and format of bill of quantities.
How is NRM2 structured?
P1: Context and definitions
P2: Rules of detailed measurement of building works
P3: Tabulated rules of measurement for building works
What is in Appendix A of NRM2?
Guidance on the preparation of BOQ
What is Appendix A of NRM1
Core definitions of GIA
What is Appendix B of NRM1
Commonly used functional units and functional units of measurement
What is in Appendix C of NRM1
Core definitions of NIA
What is the RICS Code of Measurement Practice ?
A guidance note that provides precise definitions to permit accurate measurement of buildings and land, the calculation of size, and description or specification of land and buildings on a common and consistent basis. GEA, GIA,NIA,NSA
What is the GEA as defined in the Code of Measurement Practice and what does it include?
Gross External Area
1) GEA is the area of a building measured externally at each floor level
2) Includes footprint of building (perimeter wall thickness, external projections)
3) Includes internal balconies, columns, internal walls, lift rooms, horizontal floors below structural/stepped floors regardless of accessibility
4) loading bays
5) areas with less headroom than 1.5m
What does GEA as defined in the Code of Measurement Practice exclude?
1) External open-sided balconies covered ways and fire escapes
2) canopies
3) open vehicle parking areas, roof terraces and the like
4) Voids over or under structural, raked or stepped doors
What is the GIA as defined in the Code of Measurement Practice 6th and what does it include?
Gross
Internal Area
1) Areas occupied by internal walls and partitions
2) columns, piers, chimney breasts, stairwell, lift wells, vertical ducts and the like
3) Structural, raked or stepped floors are to be a level floor measured horizontally
4) Mezzanine floor areas with permanent access
5) Service accommodation, eg, halls, toilets, changing rooms
6) voids over stairwells and lift shafts on upper floors
7) loading bays
8) pavement vaults
9) garages
10) Atria and entrance halls, with clear height abovem measured at base level only.
What does GIA in Code of Measurement Practice 6th ed. exclude?
1) Perimeter wall thickness and external projections
2) external open sided balconies covered ways and fire escapes
3) canopies
4) voids over or under structural, raked or stepped floors
5) greenhouses, garden stores, fuel stores, and the like in residential property
What functional unit of measurement would you use for car parks
Cost/parking space
What unit of measurement would you use for measuring an office
Cost/m2 of NIA
What unit of measurement would you use for measuring schools
Cost/pupil
What unit of measurement would you use for measuring hospitals
Cost/bed space
In the Code of Measurement Practice 6th ed. what is the definition of NIA and what does it include
Net Internal Area:
- Atria with clear height above measured at base level only
- Entrance halls in tenant area, not in common space
- Notional lift lobbies and notional fire corridors
- built-in-units, cupboards, and the like occupying usable areas
- ramps, sloping area and steps within usable areas
- areas occupied by ventilation/heating grilles
- areas occupied by skirting and perimeter trunking
- areas occupied by not structural walls subdividing accommodation in sole occupancy
- pavement vaults
What is exclude from NIA as defined in the Code of Measurement Practice 6th ed?
- Common areas such as hallways, landings, balconies
- toilets, changing rooms, cleaners rooms and the lie
- lift rooms,plant rooms, tank rooms, (other than those of a trade process nature), fuel stores, and the like
- stairwells, liftwells
- internal structural walls, walls enclosing excldued areas
- columns, piers, etc
- area occupied by permanent and continuous air conditioning, heating or cooling apparatus and ducting if it renders the area unusable
- the space occupied by permanent , intermittent air conditioning, heating or cooling apparatus protruding 0.25m or more into usable area
- Area with headroom less than 1.5m
- Area rendered substantially unusable by vitue of having a dimension between opposite less rhan 0.25m
- vehicle parking areas
What is the build up to an Elemental Cost Plan recommended in NRM
- facilitating work
- Substructure
- Superstructure
- Internal Finishes
- FFE (Fittings, Furnishings, and Equipment)
- Services
- Prefabricated units
- Works to existing building
- External works
- Main Contractor prelims
- Main contractor OH
- Project Design Team Fees
- Other/development/project costs (e.g. cost to acquire land, planning fees, insurances)
- risks
- inflation
Where you can find the formal requirements needed to produce a Cost Plan at different stages
NRM1 Appendix F
What is IPMS
International Property Measurement Standards
Property Measurement Standards that supersede NRM. Building function specific
What was the first IPMS released
2014-IPMS: Office Buildings
When was the residential volume of IPMS released
2016
What is the purpose of a tender pricing document
- to enable a like for like comparison between tender submissions and cost plan
- to enable cost consultant to understand where value lies within Contract Sum (foundations, MEP, etc)
- to identify significant differences in pricing to ensure design has been interpreted correctly
- identify areas of saving that may be negotiated with tenders while in competition
- form the financial basis of Tender Report
What is BOQ
1) a document that provides a list of quantities for a project
2) put together by QS
3) quantities taken from drawings and specification in the tender documentation
4) Requires full specification of project
What is the BOQ for
1) for PQS to prepare a pre-tender cost estimate. quantities are multiplied by rates to give costs
2) to be sent out to contractors during the tender period for them to price
3) can be used as a schedule of rates to prcie variations
4) can provide the basis for valuations of interim payments
5) provide the basis for preparation of the Final Account
What is schedule of works
- simply lists work to be carried out
- quality should be defined in specification, size and location defined in the drawings
- allow for pricing of items, builders work, fixing schedules
who would produce a schedule of work
produced by designers
why would a schedule of wok be used
- used on similar projects or for alteration works
- alternative of BOQ
- sometimes form part of tender documentation/ contract documents along with BOQ, specification etc
what documents form tender documents
- a letter of invitation to tender
- form of tender
- form of contract to be used
- tender pricing document
- EIR (employer information requirements)
- design drawings, possibly BIM model
- specification
- tender return slip
what is a schedule of rates
A list of contract setting out costs for items ranging from labour, plant hire and staff (for cost reimbursement day rates), to rates for an extensive number of items (for measured term contracts)
What are advantages of using a schedule of rates
1) variations are easier to value and usually cheaper
2) client can start and stop work whenever they like
3) tendering process is easy and inexpensive, so larger pool of contractors can be invited to Tender (more competitive =cheaper)
4) fast track procurement method as project can be tendered before design if complete
5) flexible in relation to scope and contractual commitment
What are the disadvantages of using a schedule of rates
1) Client doesn’t have final price when committing works
2) additional resources required to measure works before payment made to Contractor
3) difficult for contractors to predict long term resource, may result in loss of continuity
4) no sense of urgency or risk, so best resource may be taken away from these works
What is a provisional sum
An allowance in Contract Sum for a specific element of works that is not yet defined in enough detail for tenderers to accurately price
What is a defined provisional sum
An element of work defined in enough detail for the Contractor to have made an allowance in their :
- program
- prelim pricing
- planning
What is an undefined provisional sum
An element of work not defined in sufficient detail, thus the contractor cannot be expected to make an allowance in their
- program
- prelim pricing
- planning
What is a prime cost sum?
An allowance for the supply of work or materials by Contractor nominated by the client. This allowance is exclusive any OH&P; prelims are added. This can result in the Contract Sum increasing/decreasing
How are payments for PC sums agreed?
Payments are agreed based on quotes/invoices provided by the Main Contractor. Any additional reasonable percentages for OH&P; prelims are added. This can result in the Contract Sum increasing/decreasing.
What are target costs?
- Relating to Cost Reimbursable Contracts
- target cost set, allowing contractor to share cost savings but also bear cost of overruns
What are the benefits of target costing?
- encourages good collaboration
- encourages good cost control
What are the disadvantages of target costing
- Client mus have sufficient knowledge to understand what the likely outcome of costs may be
- Client must be good at negotiating target cost
What contracts have provisions for target costing
NEC3 ECC-Option C Target Contract with Activity Schedule
NEC3 ECC Option D Target Contract with Bill of Quantities
What is loss and expense
Contracts generally give provisions for the Contractor to claim loss and expense resulting from works being materially affected by relevant matter for which the client is responsible for
What are relevant matters
- Found in Contracts such as JCT
- Refers to matter that the client is responsible for
- the matter materially affects progress of work on site
Give 5 example of relevant matters
1) failure to contractor possession of site
2) discrepancies in Contract Documents
3) Delays in receiving instructions
4) . failure to supply goods/materials
5) . Disruptions of works caused by the Client
What can a Contractor claim for through the loss and expense provision
Money for:
1) disruption of works (result in greater cost)
2) prolongation (delay of work)
Loss and expense doesn’t necessarily grant an Extension of Time
What is a consequential loss, and is it covered through a loss and expense claim
- No, loss and expense only cover direct losses
- consequential losses such as loss production (efficiencies, stopping & amp; starting is inefficient) are not directly related so are generally not covered
What are preliminaries
The cost of administrating a project and providing general plant, site staff, facilities, site based services and other items not included in any package.
Name some items you may find in the preliminaries in the Tender Documents
- A general summary
- Method Statement
- Pre-construction information
- Planning conditions
- Party wall conditions/ agreements
- requirements for insurances/ bond/warranties
- dates for partial possession
- BIM requirements
- waste management plan
- Site preliminaries
What item would form the site prelims
- staff
- welfare provisions
- staff offices
- plant
- site waste clearance
- electricity
- water
- furniture
- ICT
- Protection
- Transport
What is meant by day works in construction
A contractor is paid for specific works on the basis of the cost labour+materials + plant+ OH&P
When would day works be used
In a variation /prime cost/PSUM when work cannot be priced the regular way, for example:
- when an unforeseen obstruction is comparable
- when works are instructed that have no comparable rates in BoQ
How the day works priced in NEC3
Option A-percentage addition on top of prime cost
Option C-all inclusive rates quoted at tender
What is the purpose of an interim valuation
to provide advice to the certified for the issue of interim certificates and payment notices