Quantification and costing of construction

Question 1

Can you tell about some of the different measurement systems that are in place?

Answer 1

NRM 1, 2 & 3
IPMS 
ICMS
CESMM
SMM7 - now out dated

Question 2

Why are electronic systems better than traditional systems?

Answer 2

Quicker, better record keeping, audits, referencing and amending

Question 3

A project has now reached final account stage, how would you go about negotiating any agreed variations?

Answer 3

Try to agree changes as I go along and before they are instructed.
Depends on contract - if its DB its contractors price and you negotiate, if its Standard Building Contract then FA is FA using rates. If they don’t agree then they could go to adjudication

Question 4

you mention in your submission that you have an understanding SMM7 and NRM2. Can you tell me some of the differences between the two standard methods of measurement?

Answer 4

One major change is in the layout of the document, the lettering used previously in SMM7 has been replaced by numbering in the NRM2.
Major measurement difference relate to:
- Excavation and Filing - Earthwork support, working space and compaction no longer measured
- Steelwork, tweaks to the weight classifications
- Partitions now measured in m2, as opposed to height categories
- Windows and doors simplified, bedding and pointing frames no longer measured
- Drainage and services simplified, composite items for pipes and manholes (what you would usually do in SMM7 anyway)

Question 5

You mention CESMM in your summary of experience when would this be utilised?

Answer 5

Civil Engineering Standard Method of Measurment

Question 6

You mentioned In your summary of experience that you were part of the billing team for the Bishopbriggs war memorial. What package did you work on?

Answer 6

20 Proprietary linings and partitions
28 Floor, wall, ceiling and roof finishings
29 Decoration
30 Suspended ceilings

Question 7

You mention in your Summary of Experience that you understand the difference between Defined and undefined Provisional Sums. With that in mind how would you advise a client on the use of Provisional Quantities?

Answer 7

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.
Defined provisional sum – means a sum provided for work which is not completely designed but for which the following information shall be provided:
– 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; and
– any specific limitations and the like identified.

Question 8

Follow up - How do would you advise a contractor if the actual quantity of the works turns out to be 50% higher than the amount within the pricing document?

Answer 8

Work items identified as a ‘provisional quantity’ shall be subject to remeasurement 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 9

What is IPMS?

Answer 9

The International Property Measurement Standards which will replace the RICS Code of Measuring Practice.
The standards are intended to establish a consistent approach to measuring buildings.

Question 10

What sectors of property are currently covered by IPMS?

Answer 10

Property classes currently include residential buildings and office buildings.

Question 11

What is ICMS?

Answer 11

The International Construction Measurement Standards is an international standard which aims to provide greater global consistency in construction costing.

Question 12

Define gross internal area?

Answer 12

The gross internal area of a building is the area measured to the internal face of the external wall for each floor.

Question 13

What is a ‘built up rate?

Answer 13

The built up rate, the rate the estimator will arrive at for pricing an item in a BoQ.
This built up rate will include:
- Labour costs
- Materials 
- Plant
- Overheads and Profits

Question 14

What are ‘preliminary ‘costs’?

Answer 14

Preliminaries provides a description of a project that allows the contractor to assess costs, which, whilst they do not form part of any works package required by the contract, are required by the method and circumstances of the work.
It is the cost of administrating a project and providing general plant, site staff, facilities, and site based services.

Question 15

Do you know the difference between fixed and time related costs? What is it and give some examples?

Answer 15

Prelims will often be split up fixed and time related costs.
Fixed costs, are costs such as bringing to site and erecting site accommodation.
Time-related costs, are costs such as heating, lighting and maintenance cost for that accommodation.
It is therefore necessary, that if an extension of time is granted, time related preliminary costs will need re-calculated and may increase the anticipated contract sum, while fixed prelims will not be effected.

Question 16

What is the purpose of an interim valuation?

Answer 16

To provide advice to the certifier for the issue of payment notices.

Question 17

What are the implications of over valuing and undervaluing an interim valuation?

Answer 17

Low valuations will place unreasonable financial pressure on the contractor, whereas a high valuation will create a risk to the employer.

Question 18

How are design changes dealt with during a tendering period?

Answer 18

A tender addendum would have to be sent out, along with any revised drawings, specification, bill sections, and if the design change is significant, possibly an extension to the tender period.

Question 19

What is a Prime Cost Sum?

Answer 19

A prime cost sum is an allowance for the supply of work or materials to be provided by a contractor nominated by the client.

Question 20

What experience do you have in dealing with PC Sums?

Answer 20

Kitchen and welfare refurb

client nominated the supplier of the WC fitout, i.e WC pans, WHB, cubicles, and IPS

Question 21

What is the main pricing document used for NEC3 contracts?

Answer 21

NEC Option A & C – Activity Schedule

NEC Option B & D - BoQ

Question 22

What do you mean by Daywork rates? How did you use them?

Answer 22

Daywork is a means by which a contractor is paid for specifically instructed work on the basis of the cost of labour, materials and plant plus a mark up.
It is used when work cannot be priced in the normal way, and there is no comparative rates in the BoQ.
Records, or vouchers, need to be prepared by the contractor recording the labour, plant and materials used in the operation.
These records are to be submitted to the architect/contract administrator for verification.
The valuation of work on daywork is made by using the verified records and applying rates derived by reference to the ‘Definition of Prime Cost of Daywork carried out under a Building Contract’ current at the Base Date, together with the percentage definitions set out in the Priced Document, for Labour, Materials and Goods, and Plant.
Daywork is a last resort basis of valuing works.

Question 23

Why was M&E CDP?

Answer 23

The M&E design was down to be contractor’s design from preparation and brief. The M&E consultants who were part of the design team produced a performance specification and an outline design, including M&E component schedules, luminaire schedules and the likes

Question 24

How did you produce the quantified schedule of rates for the M&E package when this was CDP?

Answer 24

I produced the quantified schedule of works using NRM2 and the M&E performance specification and an outline design, including M&E consultants component schedules, luminaire schedules and the likes. The items were prescribed to NRM2 level 2 and the quantities were taken from the M&E schedules and outline designs.
I produced this to determine the competitiveness of pricing within the M&E package.
The Contractor was responsible for the design and quantities as this a ca CDP package.