Quantification & Costing Flashcards
What methods of measurement are you aware of?
IPMS - Offices, Resi & Retail - mandatory if asked to use otherwise - will undertake under code. (Incl balconies and limited use areas e.g height less than 1.5m i.e. window reveals)
RICS Code of Measurement Practice - 6th Ed 2015 - GEA/GIA/NIA - all other buildings.
ICMS - International framework for measurement - basis of NRM.
NRM 1, 2 & 3 (2021) - 2021 update to align with ICMS & RIBA PoW 2020 & CPPS (cost prediction proff standard)
CESMM - Civil Engineering Standard Method of Measurement.
What is NRM?
New Rules of Measurement
Books published by the RICS to provide a set of measurement rules for estimating / cost planning / procurement for construction projects.
What is NRM 1?
Provides guidance on quantification of building works for cost estimates and cost plans.
It is the ‘cornerstone’ of good cost management of construction projects – enabling more effective and accurate cost advice to be given to clients and other project team members, as well as facilitating better cost control
What is NRM 2?
Provides guidance on the detailed measurement and description of building works for preparation of bills of quantities.
What is NRM 3?
Provides guidance on the quantification of maintenance works.
What is the shorter schedule of cost components
The Shorter Schedule of Cost Components is designed for assessing compensation events.
What are the types of cost estimate?
Floor area
Functional unit
Elemental
What information is required for an Order of Cost Estimate?
Location of site Statement of floor area Floor plans Roof plan Elevations Sections Storey heights Initial risk register
What information is required for a Formal Cost Plan?
Procurement Strategy Contract Strategy Fees Budget Detailed design info
What are the sections of NRM?
0 - Facilitating Works 1 - Substructure 2 - Superstructure 3 - Internal Finishes 4 - Fittings Finishes and Equipment 5 - Services 6 - Prefabricated Buildings and Building Units 7 - Work to Existing Buildings 8 - External Works 9 - Main Contractor's Prelims 10 -Main Contractor's Overhead and Profit 11 - Project / Design Team Fees 12 - Other Development / Project Costs 13 - Risks 14 - Inflation
What is the structure of NRM 1?
Part 1 - Cost estimating + cost planning in the context of RIBA stages
Part 2 - Purpose + content of order of cost estimate
Part 3 - Purpose + content of formal cost plans
Part 4 - Tabulated measurement rules
Appendices
What is ICMS?
International Construction Measurement Standards
They are a new universal system that enable global comparison of construction project costs.
RICS prepared a global professional statement on cost prediction incorporating ICMS in 2020.
Basis of NRM
Why does location affect cost?
Availability of materials Transport cost & routes Availability of labour Ease of access to site Availability of services to site Vicinity of sites in relation to amenities Local labour costs Travel distances Existing land conditions
What are RPI and CPI?
Retail Price Index and Consumer Price Index.
Government’s preferred measures of inflation
May be used to update costs
Use with caution as they are not construction specific
Construction activity does not necessarily reflect the profile of UK economic activity
TPI - inflation measure for tendering for costplans
What is the RICS Code of Measurement Practice?
A UK measurement guidance note published by the RICS. It gives definitions for GEA, GIA and NIA and explains how to measure them correctly.
To be used on all other asset types that the IPMS does not cover (ie. anything other than offices, retail, resi)
What is IPMS?
International Property Measurement Standard
IPMS 1 -
The sum of the areas of each floor level of a Building measured to the outer
perimeter of external construction features, which may be reported on a
Component-by-Component basis for each floor of a Building.
IPMS 2 – Office
The sum of the areas of each floor level of an office Building measured to the
Internal Dominant Face and reported on a Component-by-Component basis for
each floor of a Building.
IPMS 2 – Residential
The sum of the areas of each floor level of a Building measured to the Internal
Dominant Face, which may be reported on a Component-by-Component basis for
each floor of a Building.
IPMS 3 – Office The Floor Area available on an exclusive basis to an occupier, but excluding Standard Facilities, and calculated on an occupier-by occupier or floor-by-floor
basis for each Building.
IPMS 3 – Residential The Floor Area available on an exclusive basis to an occupier
What does IPMS cover?
Offices & Residential
RICS members are expected to advise their client or employer on the benefits of using IPMS. However, it is understood that IPMS is not suitable in all circumstances
and in these circumstances RICS members must document the reason for departure.
When did IPMS come into use?
2nd Ed - Jan 2018
What is NRM?
New Rules of Measurement provides a standard set of rules and essential guidance for the cost management of construction projects and maintenance works
What did the NRM CPD event that you attended cover?
It was a general overview of NRM suite and how to use them
How do you quantify differently for a feasibility estimate or a cost plan?
A feasibility estimate will be based on areas or functional units. Usually just GAs and facades are measured.
Cost plans are measured on an component basis.
What did you advise the client were the key changes between IPMS and RICS Code of Measurement Practice?
On a previous the biggest difference was the inclusion of window reveals in IPMS 1. These are stated as limited use areas.
What did you advise the client were ways to meet the net to gross efficiency ratio target on the masterplanning project?
There was a large stepped theatre like ‘touch-down’ space within the atrium which, although was intended as flexible working space, could not be included within NIA. Reducing the area of this and increasing the area of the mazzanine floor would increase net to gross efficient.
What is Benchmarking?
The systematic method of comparing project performance against others, then using lessons from the best to make targeted improvements.
The ‘Benchmark’ is the best in class.
It is often misused to mean average or minimum performance.
How can Benchmarking assist Value Engineering?
It can inform the spread of cost among construction elements so you can identify if something is ‘high’.
Were you given permission to publish confidential data from your reception benchmarking exercise?
I seeked my employer’s approval before using project data
The published report did not identify the data source, project name or employer
How can benchmarking help inform a client about risk?
The greater the range of data, the more risk is involved.
When collecting benchmark data, what do you use as the ‘base data’?
For lump sum contracts, base data is 10 days before the tender return
For projects where price is not fixed, base data is the mid-point of construction
What levels of BCIS location indices are there?
Regional
County
District
Apart from cost data, what else do your benchmarking reports convey? (in words)
The purpose of the exercise The scope of the exercise Methodology behind selection of comparison projects Exclusions How abnormal have been dealt with Rebasing factors Main drivers for the results
What is a star rate buildup
Star rate item refersto item for which rate is not listed in the contract.
Can be built up from L/P/M principle
What is GIA
Gross Internal Floor Area -
Area of a building measured to the internal face of the perimeter walls at each floor level
Incl - as GEA but excl thickness of perimetre walls & external projections
Excl - external wall thickness, open sided balconies, canopies, greenhouses & garden stores
Use - Building cost estimation, estate agency valuation, property valuation, new home valuation
What is NIA
Net Internal Area -
The usable area within a building measured to the internal face of the perimeter walls at each floor
level.
Incl - usable areas
Excl - common areas - Wcs, lift rooms, plant rooms, cleaners stores, circulation areas, stat services areas, aircon/heating areas, headroom less than 1.5m, parking areas.
Advanced payments
Security
Commercial risk to client
Inflation
TPI - Tender price - applied to tender price returns
Tender Price Index - TPI - Level of inflation used = previous data / market conditions / future predictions ( all back to 1980s date) - BCIS
CPI - Bourne by contrator post contract
What is incl in payment cert
Contract Sum Assessment Project details Previous cert gross Deductions Variations
Types of BoQ
Appox quants & firm quants
Pricing options for contracts
Lump Sum Target sum Remeasureable GMP Cost plus
4 risk categories in NRM
Design dev risk
Employer change risk
Construction risk
Employer other risk
Diff between price & cost
Cost = how much contractor would pay out = L/P/M & mangement Price = is cost plus profit = What employer will ulimately pay (plus an contractors OHPor any contingency)
How would you measure Struc steelwork
Tonnage - SMM7 & NRM
lm x £kg/m
Brickwork
On a centre line - lm / m2
8 sections of elemental sections
faclitating works sub super FFE M&E - services prefab Extisting works Int finishes works to existing
Cost plan v cost estimate
Cost plan & cost estimate
Estimate - high level review of works for feasibility
Cost plan - more struc & detailed into sections - costs into cost report (manage costs at precon stage)
Prelims
Prelims in cost plan - %
Type of project & risk of constraints - 12-15%
What is the purpose of BoQ
Purpose of BoQ - what works to be undertaken / like to for like pricing / detailed measured breakdown - basis pricing & estimating, tender comparison, valuation analysis
What are the RIBA plan of works stages 2020
1-7 0- Strategic definitiion 1- Preparation of brief 2- concept 3 - developed 4 - technical 5 - Construction 6 - Handover 7 - Use (maintenance)
Purpose of cashflow
Cashflow:
Funding & drawdowns
Financial reporting & commitments & planning
Corrective actions if cash shortages
Monitoring against porgramme - progress measure
What do you do if a BoQ rate is incorrect?
If BoQ rate incorrect - should use incorrect rate as per valuation rules
Use similar rate in the BoQ
Could use buildup of star rate
What is included in Whole life costings?
Construction costs Maintenance costs Operating costs Occupancy cost End of life Plus Income & non construction costs (land & fees)
Life cycle costs
As above but excl land & fees & income
Example of front loading
Paint in first val - Front loading
making foundations unrealistically higher than sould be in rates / milestones
What issues does over & under valuing works cause
Over valuaiton - exposure to client
Under valuation - may prevent contractor fulfilling obligations - must be realistic & reasonable financial assesssment
Options for valuation
Staged (Milestone)
or
Interim (as per valuation schedule in contract based on % of works compelted on a regular basis (usually monthly)
When was the NRM last updated
Issued Oct 2021 - came into effect Dec 2021
Why do quantities need to measured in a uniform way?
To provide a consitent trusted method of measurement across the industry
What are the different methods of measurement?
IPMS - International Property Measurement Standards (Offices & Resi)
ICMS - International Cost Measurement Standards 2019 2nd Ed (Infrastructure)
RICS Code of Measurement (Offices & Retail)
NRM (ss SSM7)
CESMM - Civil Engineering Standard Method of Measurement
Can tell me what is your understanding of RICS code of Measuring Practice?
2015 - precise definitions of calculations of sizes - areas and volumes
And description or spec of land / buildings
Core defintions of GEA / GIA / NIA
When would it be used in your day to day employment?
If undertaking high level benchmarking across simialar schemes would use GIA
GEA - The area of a building measured externally at each floor level. Town Planning / Building cost estimate for resi properties for insurance purposes / Coucnil tax for houses
GIA - The area of a building measured to internal face of external wall at each floor level.
Used - New homes valuation, ratings on commercial propoerties, building cost estimates.
NIA - Area of building measure to internal face of perimetre walls at each floor level.
Used - Rating for shops, valuation & marketing of shops, offices & businesses.
GEA, GIA and NIA how are they each measured?
See above
What new standards have been introduced (ICMS)?
ICMS - Internaltion Cost Management Standards 2019 - Offering global constincey in presenting construvciton and other Life Cycle Costs
Will the Employer’s Requirements be available at cost plan stage?
RIBA Stage 3 - concept design = cost plan - ERs developed during stage 3
Which method of measurement would you consider is the most appropriate for measuring civil engineering works?
CESMM - Civil Engineering Standard Method of Measurement - Ed 4 2012
What is the purpose of NRM 3?
NRM 3 - Quantification of Maintenance works
How do British Standards affect the measurement of construction works?
British Standard (BS) are technical specifications or practices that can be used as guidance for the production of a product, carrying out a process or providing a service - as such if change in BS - it may need to be reflected in the way that element is measured and quantified
example?
Part L - consider thermal performance - need to know if using benchmarking may be change
How do the Building Regulations affect the measurement of construction works?
They identify what types of buildings are exempt (such as temporary buildings).
Requirements for specific aspects of building design and construction - as such any changes may need to be reflected in the measurement of specific packages of work.
example?
- need to know if using benchmarking may be change
What is your understanding of the shorter schedule of cost components?
Used to assess Compensation Events under NEC - Elements of people, Equipment, Plant and Materials, Subcontractors, charges, manufacture and fabrication, design and insurance. The schedules relate to the rates contained in the Contract Data.
What current challenges is Covid and/or Brexit bringing to Quantification & Costing?
More work forced online - implications in understanding how software works, calibration of scales, check measures.
How delays and additonal costs associated with Covid are dealt with ?
Fluctuation material rates - historic data not reliable
Risk allowance
Give me an example where have undertaken measurement of construction works using a standard method of measurement? Which standard method of measurement did you use?
NRM 2 - Cladding brick panels Measurement of: Wall areas over 600mm wide - m2 Wall areas under 600mm wide - lm Areas to soffits under 600mm wide -lm Deduction of openings - doors & windows Working around windows & doors, vents - nr Measurement of heads, jambs, sills, flashing, angles, fire stops, - lm
Tell me more about this challenge of the method of measurement of removal of asbestos ducts you refer to in your summary of experience.
As part of a client variation I have to undertake quantification and collate costings for asbestos containing ductwork discovered on site.
Upon reviewing the subcontractors measures and prcing I discovered they had measured the ducts twice by applying the measure twice for removal of ducts (incl contents) and disposal of material within ducts.
Due to nature of works not being defined clearly within NRM - I sought market check pricing to determine overall cost which discovered it was in places double measured and costs inflated.
Take me through the process of building rates from first principles. How does it work?
Understand elements of rates - Labour, plant, materials, subcontract elements plus OH&P
Take me through the measurement of foundations for a project such as Barton Court using a standard method of measurement.
Foundations at Barton Court - pad and strip
Locating services, Site clearance, removal of obstructions in ground if known, any bulk excavation to get to correct levels.
Excavation of trenches - m3 noting any over 2m deep / in type of soil / water issues
If alongside services - sewer - lm
Blinding in m2 noting thickness
Mesh measured kg/m2 incl type and where bent
No support work needed as mostly within 2m in chalk so solid trenches
All disposal noted to be retained onsite for reuse.
Mass concrete measured in m3 incl spec & stength
Type of finish measured m2
Accessories cast in - HDB - nr
Give me an example where you have prepared a pricing document for subcontract works.
Prepared the gebrick pricing document for market testing for VE exercise at Barton Court.
Undertook measure of gebrick cladding works
With items for preliminaries / access noted seperately.
Line items for any specific scheudle of rates & OH&P %
How did you decide on which pricing document to use?
Differs for different projects - if remeasurement would choose a BoQ, if lump sum may look at an activity schedule or milestone scheudle BoQ Lump Sum Activity Scheudle Milestone Schedule
Give me an example where you recommended / advised on the use of a particular standard of measurement for a subcontract work package. What did you recommend / advise and why?
NRM for Groundworks BoQ prodeuction to ensure consistency of measurement if required post contract for variations
Give me an example where you recommended / advised on the use of a particular pricing document. What was the rationale for your recommendation / advice?
Milestone Schedule - Groundworks
How does a pricing document would help with cost certainty? Explain.
- Allows for like for like pricing when tendering.
- Can cross check rates / prices for the same items/ plug gaps- fair and accurate.
- Value extent of works for variations & valuations for payments - assisting transparency & ease of valuing works.
- Can also help preparation of cashflows forecasts
When would you recommend the use of bills of quantities?
If dictated by the type of contract - traditional w quantities or remeasurement.
When would you recommend the use of daywork rates as a method of pricing construction works.
Remedial, emergency works, unforseen works or no comparative works in BoQs
What are the two types of dayworks
Prime Cost - Allowance for a material elelemt to change but plant, labour & OHP remain the same
All inclusive rates - Labour, plant, materials plus OH&P
What is the OGC ?
Office Government Commerce - stages 0-5 similar to RIBA plan of work stages
Order of cost estimate
High level estimate - cost per m2
RIBA - 0 & 1
2,3,4 cost plans
4 primary levels of elements
Group = super / fac works Elements = upper floors / toxic Sub-element = lh coloumn / contamination Components = unit of measurement / removal treatment
How to value variations
Comparable rates
Form a rate on base of contract rate
Quotation
Dayworks
When you may used dayworks
opening up
emergency
Cost data
Benchmark
Quotes
Pricing books
Historic data
Quantum merrit
fair & reasonable
head of claims
disruption
finance
prolongation
loss of profit
Sch 2 quotation
JCT detail on how to value a change
Review Appendix C in NRM Dec 2021
RIBA stages - costs plans at each stage
Appendix A - functional unit
Benchmark on NIA
In line with NRM - picks up abnormals seperately
What are the changes in the new NRM (Dec 2021) ?
1) Brought in line with RIBA plan of work stages.
2) Brought in line with ICMS
3) Brought in line with code of measurement
- What effect do building regulations have on quantification & costings?
a. Specification / referral point
b. E.g. BR doc M – standard in sanitaryware for disabled / accessible WCs
- What impacts has covid had on quantification & costs?
a. Lead in / availability / increasing prices / shortages
- What is Earnt Value Management?
a. Process of collection of information – actually achieved vs planned
- Difference between WLC & LCC?
a Black book on LCC definition: WLC: Non construction cotsts - land / fees / financing / tax liabilities LCC - see below Income - rent, land sales Externalities - stats costs
LCC: Construction costs Renewal Operational Maintenance End of life costs
b. The difference between LCC and WLC is that LCC focuses only on the construction, maintenance, operation and disposal of the asset, whereas WLC also includes client and user costs, such as project financing, land, income and external costs.
- How might you value operational / maintenance costs for LCC / WLC ?
a. BCIS / supply chain
