Quantification & Costing Flashcards
How do you Value / Assess Variations?
- Pricing Document - works similar in character
- Fair rates - works not similar
- Dayworks - works can’t be quantified
What are Dayworks?
Prime cost (materials, labour, plant, OHP). e.g. breaking out obstructions. Dayworks sheets must be submitted within 7 days and approved my contract administrator.
CESMM4 vs NRM 2
CESMM4 - civil engineering projects - higher quantities but less variety of materials.
NRM2 - building projects - lower quantities with great variety
Different approaches make quantification efficient & more accurate.
How do you quantify inflation?
- Apply BCIS cost indices to the Base Cost Estimate;
- Tender Inflation - cost plan date to tender return)
- Construction Inflation - tender return to the mid-point of the construction programme
Why are measurement rules important?
- Consistency in measuring construction works on a like for like basis.
Strip Foundation Take Off
Excavation
disposal
compaction,
formwork
blinding
hardcore
concrete
Drainage Take Off
- Excavating (stating average depth (500mm increments)
- Granular bed
- Pipe type and size
- Backfill
- Disposal of excess excavated material
Why use digital measurement software?
- Superimpose measurement
- Save & share
- Update/amend
NRM1 Cost Plan Structure
0; Facilitating Works
1-8; Building works (see separate breakdown)
9; Preliminaries
10; Overhead & Profit
Works Cost Estimate (Construction)
11; Design Team Fees:
Architect, Civils, M&E, Project Manager, Quantity Surveyor, Principal Designer
12; Other development:
Finance, Planning, Insurances, Party wall, Marketing, Ecology, Archaeology etc.
Base Cost Estimate (Development)
13; Risk Allowances:
Design Development, Construction Risk, Employer Change, Employer Other
Cost Limit exc. Inflation (Dev & Con x Inflation)
Tender Inflation (cost plan date to tender return)
Construction Inflation (tender return to the mid-point of the construction programme)
Cost Limit Inc. inflation (Dev & Con inc. Inflation)
VAT assessment (requirement to be assessed by a tax specialist)
Design Development Allowance Levels
Stage 0/1 – 20%
Stage 2 – 15%
Stage 3 – 10%
Stage 4 – 5%
Employer Change Risk
Client type?
Experienced developer or occupier not experienced in construction - significant post contract changes? (e.g. UPS).
A commercial developer might allow 2%
Employer Other
Depends on the client.
Postponement, acceleration and funding issues
Can’t readily foresee
Commercial developer might allow 2%
Provisional Sums
Allowance for work that cannot be sufficiently quantified pre-contract due to lack of information.
Defined; included within the programme e.g. kitchens – scope of work is known but exact detail is not confirmed.
Undefined; cannot be included within the programme.
e.g. underground petrol tanks (unclear if removed and/or extent of issue/contamination level)
Prime Cost Sum
Included in pricing documents to cover expenditure for the purchase of materials.
Prime Cost Sums exclude Main Contractors OH&P, preliminaries and attendances as they are already allowed for.
Material costs only. e.g. tiling allowance where client has not confirmed material but knows they will need tiling
What is a Final Account?
Legally binding agreement ties together:
Variations
Loss and expense claims
Provisional sum expenditure
Formalizes the financial settlement of the contract with the contractor
UPS - Worst case vs lowest case
L3 - Best to have all info before agreeing final account
RICS Code of Measurement Practice
- GLOBAL BEST PRACTICE FRAMEWORK FOR MEASURING PROPERTY AREAS
- Provides consistency, internationally.
GIA - GEA - NIA
GIA - calculation of building costs, basis of measurement for the marketing and valuation
e.g. internal face of ext. wall excludes internal balconies
GEA - planning conditions, measurement for council tax banding
e.g. external face of ext. wall
NIA - Estate agent and valuation to measure sale/lettable space
excludes communal shared areas
International Property Measurement Standards (IPMS)
IPMS 1, 2 and 3 are more inclusive in measurement then GEA, GIA and NIA.
Included but stated separately;
areas with limited height (less than 1.5m),
Areas with limited natural light,
Principles of Measurement International (POMI)
International guidance for producing a BoQ (RICS). Widely used on international contracts
International Equivalent to NRM2
BIM – Building Information Modelling
1. Describe
2. 2D etc
3. Why not widely used
Manages information over the course of a construction project lifecycle
2D Traditional drawings
3D Visual model
4D Time / programme
5D Cost
6D Sustainability
7D Facilities management
Not widely adopted due to:
cost
training
software integration
Schedule of Works
“Without quantities’ instructional lists - Smaller, uncomplicated projects
Failure to describe may result in a claim by the Contractor.
E.g. works to ceiling of existing building were not outlined so contractor had not made allowance.
Less detailed than BoQ
Quick to produce
Schedule of Rates
Labour, Plant & OH&P rates
Cost reimbursable contracts
Larger scale ‘measured / term contract’
Nature of work is known but cannot be quantified
e.g. Road Construction
OR
Continuity of programme cannot be determined.
e.g. Ongoing estate management
Loss and Expense
- Contractor can recover loss and expense to put them back in the financial position that they would otherwise have been in.
- Events which cause delay or disruption to the regular progress of the works.
- Typical causes might include;
- Failure to provide possession or access,
- delays in instructions
- UPS – Omission by Employer (HV power to site) = Prolongation of works
Preliminaries
Set out how the work is to be undertaken.
e.g. working hours,
planning conditions (noise),
site records(contamination & H&S)
site waste management plan.
Contractor site preliminaries;
Staff
Welfare/offices
Scaffolding
Temporary services
PPE
Interim Valuations
Typically monthly
Progress reviewed against the pricing document
e.g. CSA, BoQ, SoW, SoR
Variations, materials on/off site area also assessed.
Doing a Valuation:
Attend site wearing PPE.
Report to the site manager and sign in.
Site induction (e.g. what to do in the event of a fire)
Reviewing a contractor’s application for payment: Take photos
Do mark up (accurately assess progress)
Recommendation for payment
- Gross valuation
- Less retention
- Less previous payments
- Agreed with the contractor and issued as “RfP” to the client (only “advice”) by EA/CA.
Retention
All building work liable for inclusion when calculating the amount of retention that is deducted from the gross calculation.
Loss and expense claims are excluded from retention.
- Facilitating Works:
- Toxic / contaminated material treatment
- Major demolition works
- Temporary support to adjacent structures
- Specialist groundworks (de-watering, soil stabilisation, ground gas control)
- Temporary diversion works
- Extraordinary site investigation (archaeological, ecology etc)
- Substructure:
Standard foundations
Specialist foundations (piling etc)
Lowest floor construction
Basement excavation
Basement retaining walls
- Finishes:
Wall
Floor
Ceiling
- Furnishings, Fittings and Equipment
Kitchens
Wardrobes
Furniture
Signs
- Services
Sanitary (WC’s, Sinks, Showers)
Disposal installations (Foul drainage above ground)
Water installations (Mains, cold & hot distribution)
Heat source (Combi Boiler, Air/Ground Source)
Space heating (Central/ local heating & cooling i.e. radiators, under-floor heating, Air Con etc
Ventilation (Central, Local and Smoke extract/control)
Electrical (Mains & sub distribution, power, lighting)
- Prefabricated buildings
Security cabin
bathroom pods
- Works to existing buildings
Minor demolition and alteration
Damp proof courses
Façade retention
Renovation work
- External works
Site preparation works (clearance and groundworks prep)
Roads, paths, paving’s and surfacing’s
Soft landscaping, planting and irrigation systems
Fencing, railings and walls
External fixings (site furniture and features)
External drainage (surface and foul water, chemical waste, land drainage)
External services (water, electric mains and distribution, transformation, gas, comms, security, lighting, heating, BWIC)
Minor buildings work (minor work, ancillary structures, underpinning to site boundary)
Pricing Documents
Bill of Quantities:
JCT SBC/Q 2016
Standard Building Contract with Approximate Quantities (SBC/AQ)
NEC4 (Options B and D)
Contract Sum Analysis:
JCT D&B 2016
JCT SBC/XQ 2016
Schedule of Works:
JCT IC 2016
JCT MW 2016
Schedule of Rates:
Measured Term Contract (MTC)
e.g. Roads, estate maintenance
Prime Cost Building Contract (PCC)
e.g. Cost reimbursable (emergency work)
Activity Schedule:
NEC3 (Option A and C)
Cost Approaches - RIBA 0-4 (Quantification)
- Functional -£/per bed/person etc; Resi, Flats, Houses - Hospital; Beds – School; Nr of students
GIA - £/m2 - Elemental – Substructure, Superstructure etc
2-3. Sub Element – Ground Floor Slab, Upper Floor, Roof, External wall
- Full breakdown of items:
Piled Foundation Take Off – End bearing, bored pile; Excavate & dispose to formation level, piling mat, setup piling rig, excavate, dispose, place concrete, reinforcement, pile caps, cut off heads, testing
Ground Floor Slab Take Off
Excavate
dispose
compact ground
hardcore,
insulation
damp proof membrane
concrete
Build-up of unit rates and prices from first principles, i.e. labour, plant, materials, etc.
Tiling 10m2 =
Labour; 16 hours @ £15ph= £240
Materials; Tiles, grout, adhesive = £300
Total £540 + 5% OHP= £567
Divide by area (10) = £57/m2”
What is the easiest way to cost a variation?
Comparable rates from a BoQ.
Fair and contractually definitive way of valuing works.
VALUATION/PAYMENT TIMELINE D&B
- Contractor makes Application for Payment at the IVD (1st)
- Due Date is 7 days after (8th)
- Interim Payment Notice is issued 5 days after the due date (13th)
- Employer can issue Pay Less Notice 5 days before the final date for payment (17th)
- Final Date for Payment is 14 days from due date (22nd) (typically amended to 21 days (29th))”
Why is it important to accurately value the work?
If the works are overvalued and the contractor becomes insolvent then any funds paid to the contractor that are paid in excess of their value of the works becomes at risk.
OH&P
Main contractor’s costs associated with:
- Head office administration
- Return on capital investment
How would you identify prelims % when doing a cost plan?
Split them into TIME and FIXED costs.
Time based to be calculated by duration of the programme. e.g. security, site cabins per week x programme (50 weeks)”
Scaffolding (both time and fixed - erect & remove as well as ongoing hire cost)
UPDATe - How would you assess a loss and expense claim?
-Identify circumstances - 2 week delay
-What caused events - LV power not brought to site
-Effect on resources - Prolongation
-Financial impact - increased preliminaries
How have you adjusted a tender return?
DCC demo:
Not filled out elements (complete)
Inserted their own prov sums (ask to firm up)
Adjust incorrect assumptions (e.g. free water)
When have you introduced a Provisional Sum? Prime Cost Sum? How would you instruct/omit one?
Defined; kitchens – scope of work is largely known but exact detail is not confirmed.
Undefined; cannot be included within the programme.
E.g. underground petrol tanks (unclear if removed and/or extent of issue/contamination level)
Instructed in the same way as variation if instructed. If cost change original allowance is omitted and new is included.
What is a BoQ? Pros & Cons
Project drawings and specifications are all utilised to form detailed measure and price for works. NRM2
BoQ’s are clear in what is included for the project.
+ Good basis for tender reviews and
+ Post contract change control.
- Slow to compile and are relatively expensive.
What are typically included in tender documents JCT D&B?
Part 1 – Employer’s Requirements
Part 2 – Appendices
Contract Sum Analysis
Drawings
Specification
Site Investigation
Contract Amendments
Part 3 – Contractor’s Proposals
