Quantification & Costing

Question 1

What is a schedule of rates?

Answer 1

A list of agreed costs at which the contractor will do the works. Usually best for simpler, repeat works

• Lists staff, types of labour and plant hire rates which a contractor lists an hourly rate.

Question 2

What is a provisional sum?

Answer 2

allowance for works where the cost cannot be defined.

Question 3

What is the difference between defined and undefined provisional sums?

Answer 3

A defined prov sum allowance for works where the cost cannot be accurately measured.

Where there is insufficient information the works are classed under an undefined provisional sum entitling the contractor to costs for prelims and an extension to the programme.

Question 4

What is a prime cost?

Answer 4

Allowance for the supply of work or materials, without percentages on top (no prelims ertc)

Prime cost sums are the financial adjustments of work whose extent is known but whose specification is yet to be determined.

Question 5

What are provisional quantities?

Answer 5

These are provisional quantities of work whose specification in known, but the exact amount is yet to be determined. 

Question 6

How would you cost a project?

Answer 6

Benchmarking using BCIS, previous projects or using pricing books such as Spon’s

Question 7

What does NRM stand for?

Answer 7

New Rules of Measurement – you should complete a cost plan and measure using this book.

Question 8

What are the three NRM books for?

Answer 8

1 – Order of cost estimating and cost planning for capital building works
2 – NRM 2: Detailed measurement for building works(BoQ)
3 – NRM 3: Order of cost estimating and cost planning for building maintenance works

Question 9

When were the NRMs published?

Answer 9

1st May 2009

Question 10

Why were the NRMs introduced?

Answer 10

The previous SMM7 was purely designed for the production of BOQ for tender purposes.
This resulted in a lack of guidance and uniformity around preparing cost estimates and cost plans when using SMM7.
NRM was introduced to provide a common and consistent basis for the production of order of cost estimates and cost plans and to give employers more confidence around the inclusions.

Question 11

Why should you use the NRMs?

Answer 11

The NRM provides a common and consistent basis for the production of order of cost estimates and cost plans.
Added confidence to Employers
NRM is best practice
However – QSs are not required to follow the NRM if they judge it as unsuitable for their specific project but they must have a good reason as to why this approach has been taken.

Question 12

What is NRM 1?

Answer 12

NRM 1: Order of cost estimating and cost planning for capital building works
This provides a structured basis for measuring building works and for the production of Cost Estimates and Cost Plans. Includes guidance on how to describe and quantify not only measured works but also wider costs such as preliminaries, overheads and profit, risk allowances and inflation.
Also provides guidance on the preparation of benchmark analysis

Question 13

What is NRM 2?

Answer 13

NRM 2: Detailed measurement for building works
Replaced SMM7 in 2013. Used when obtaining tender prices (BoQ and Schedule of rates).
* Example: screed is first level and if it’s under 600mm wide it is measured as m and if it is over 600mm wide it is measured as m2.

Question 14

What is NRM 3?

Answer 14

NRM 3: Order of cost estimating and cost planning for building maintenance works
Used for:
o Asset-specific cost plans during pre-construction phase.
o Procurement and cost control of maintenance work

Question 15

What is meant by the abbreviations GEA

Answer 15

Gross External Area (GEA) The area of the building measured externally at each floor area.

Question 16

What is meant by the abbreviations GIA

Answer 16

Gross Internal Area (GIA) Area of the building measured to the internal face of the perimeter wall at each floor level. Excludes external open sided balconies, fire escapes, canopies, external walls and fuel stores.

Question 17

What is meant by the abbreviations NIA

Answer 17

Net Internal Area (NIA) Area of usable space measured to the internal face of the perimeter wall at each floor level. Excludes internal structural walls and columns, spaces with headroom less than 1.5m, lifts and cores (including toilets, cleaners cupboards and plant rooms).

Question 18

Where are all these abbreviations defined? (e.g. NIA, GEA etc)

Answer 18

The code of measuring practice published by the RICS

Question 19

What are costs usually made up of?

Answer 19

Labour, plant, materials and OH&P

Question 20

What are the group elements?

Answer 20

0 Facilitating works
1. Building works
2. Substructure ▪ Excavation ▪ Foundations ▪ Basement
3. Superstructure ▪ Frame ▪ Upper floor ▪ External walls ▪ Roof
4. Internal finishes
5. FF&E
6. Services
7. Pre fab buildings
8. Work to existing buildings
9. External works
10. Contractors preliminaries
11. Contractors OH&P - Construction cost - Fees –
12. Other development/project costs
13. Risk
14. Inflation

Question 21

What is taking off?

Answer 21

Taking Off Construction Work – process of identifying elements of construction works that can be measured and pricing.

Question 22

What are facilitating works?

Answer 22

Works that need to be done before the build can commence, such as demolition or removing hazardous materials from site.

Question 23

If using floor area method, what do you measure?

Answer 23

Floor area method (GIFA x appropriate cost/m2)

Question 24

What do the NRM tables contain?

Answer 24

1. Group elements
2. Elements
3. Unit of measurement
4. Rules for measuring
5. Further advice

Question 25

How do you calculate the project costs?

Answer 25

• Building works (to be rebased to location and date of the works)
• add prelims as a %, the add
• OH&P on top of both of those as a %
• project/design team fees (recommended as a single allowance%),
• other project costs are those to the employer such as planning fees, insurances etc. Risk (which should be defined as the project developed, and dealt with as the 4 T’s. At high level this can be a significant %, at completion it will be 0. Identification, assessment, monitoring and control are essential.
• Separate allowances for: design development risks, construction risks, employer change risks, employer other risks – early handover, liquidation), Inflation (tender from base date to tender submission and then construction from tender date to mid point of construction).
• NRM suggests that VAT be excluded from cost estimates due to it being a complex area (e.g. some buildings are VAT exempt) specialist input should be sought).

Question 26

What should you do if there are numerous buildings in one project?

Answer 26

Put them on separate cost plans and then summarise them on a main sheet.

Question 27

What does BIM stand for?

Answer 27

Building Information Modelling. Used on Revit.

Question 28

What are the BIM dimensions?

Answer 28

NBS website sets these out

3D Geometry
4D Time, scheduling and duration
5D Money (cost esimation and budget analysis)
6D Sustainability (self-sustainable and energy efficient)
7D Facility Management Information

Question 29

What is BIM?

Answer 29

BIM stands for Building Information Modeling and is a workflow process. It’s based around models used for the planning, design, construction, and management of building and infrastructure projects

Question 30

What are the BIM levels?

Answer 30

1- Unmanaged CAD
2- CAD 2d/3d
3- BIM 3d
4- Not yet defined, single collaborative online model

Question 31

What different forms of pricing documents are you aware of?

Answer 31

I am aware of
– Contract sum analysis
– Schedule of rates
– Schedules of works
– BoQ
Contract Sum Analysis – used in Design and build, is a breakdown on the contract sum and a response to the ER’s from the contractor. Used when unlikely to be a BoQ.
Schedule of Rates - List of staff, types of labour and plant hire rates which a contractor lists an hourly rate. A list of agreed costs at which the contractor will do the works. Usually best for simpler, repeat works
Schedules of works - Alternative to BoQs but do not include quantities, they are ‘without quantities’ instructional lists. Simply list the work required, information to quality should be provided by reference to specification. Often used on small projects or alteration works.

Question 32

Do you know what is ICMS?

Answer 32

It is the International Cost Management Standards, an international standard that which aims to provide greater global consistency in construction costing, espiecally WLC costing. I have not utilised it as of yet.

Question 33

What are the contents you generally see in a life cycle costing and a whole life cycle costing model?

Answer 33

LCC is construction, maintenance, operation, occupancy and end of life. WLC is non-construction costs, LCC, Income and Externalties.

Question 34

How would you assess payment for NEC Option A and Option C, what is the difference?

Answer 34

I would be assessing the PWDD.
Option A PWDD is determined by the activity schedule.
before the assessment date I would be sent the contractors assessment, the Contractor will request payment for any acitvities at 100%.

Option C PWDD is defined cost, less disallowed cost plus fee. The activity schedule is only used to determine the target cost. Defined costs are within the SCC and are actual costs that they can prove.

I would review the contractors application and certify a payment within one week of each assessment date. The certified payment is made within the 3 weeks of the assessment date.

Less retention if X16 Retention is part of the contract.

Question 35

How do you value change?

Answer 35

Through the CE process.

Question 36

How do you assess a CE under option A?

Answer 36

Change is valued by considering changes to the
activity schedule caused by a Compensation Event.

The prices are assessed (valued) as the
effect on:
(i) the Defined Cost of the work already done
(ii) the forecast Defined Cost of the work not yet
done
(iii) the resulting fee (fee percentage applied to
the amount of Actual Cost covering specific
costs, mainly head office overheads and
profit).

The change to the activity schedule is valued by
identifying resources that are affected by the
change, by reference to the Short Schedule of Cost
Components, and establishing their cost or forecast
cost

Question 37

How do you assess a CE under option B?

Answer 37

Change is valued by considering changes to the bill
of quantities (BOQ) caused by a Compensation Event.
This can be on a Defined Cost basis, as Option A,
or based on the use of rates and lump sums from
the bill of quantities (if the project manager and
contractor agree).

Question 38

How do you assess a CE under option C?

Answer 38

Change is valued by considering changes to the
activity schedule caused by a Compensation Event.

The prices are assessed (valued) as the
effect on:
(i) the Defined Cost of the work already done
(ii) the forecast Defined Cost of the work not yet
done
(iii) the resulting fee (fee percentage applied to
the amount of Actual Cost covering specific
costs, mainly head office overheads and
profit).

Question 39

How do you assess a CE under option D?

Answer 39

Change is valued by considering changes to the bill
of quantities caused by a Compensation Event.
This can be on an actual cost basis, as Option A,
or based on the use of rates and lump sums from
the bill of quantities (if the project manager and
contractor agree)

Question 40

How do you assess a CE under option E?

Answer 40

Change is valued by considering the actual cost of
change caused by a Compensation Event (as per option A)

Question 41

How do you assess a CE under option F?

Answer 41

Change is valued by considering the actual cost of
change caused by a Compensation Event (as per option A)

Question 42

How would you assess payment for Option C

Answer 42

The PWDD is the total Defined Cost the Project Manager
forecasts will have been paid by the next assessment date, plus the Fee, less Disallowed Cost.

Defined Cost is the amount of payments to Subcontractors for subcontracted work (without taking account of deductions) and the cost of components in the Schedule of Cost Components for other work,