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WS - APC Technical Competencies > Quantification & Costing > Flashcards

Quantification & Costing Flashcards

1
Q

Why were the New Rules of Measurement introduced?

A
  • The RICS introduced the New Rules of Measurement (NRM) to standardise and improve the accuracy of measuring construction works.
  • NRM aimed to enhance cost management, reduce disputes, and provide compatibility with international standards.
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2
Q

What is NRM 1?

A
  • The RICS New Rules of Measurement 1 is for Order of Cost Estimating and Elemental Cost Planning of capital building works.
  • This provides a structured basis for measuring building works and for the production of Cost Estimates and Cost Plans.
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3
Q

What is the structure of the NRM 1?

A

The key sections of NRM1 are:

  • Part 1: General introduction explaining the purpose of the document and how it should be used.
  • Part 2: Measurement rules for the production of order of cost estimates.
  • Part 3: Measurement rules for the production of elemental cost plans.
  • Part 4: Tabulated rules of measurement for elemental cost planning.
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4
Q

Why should you use the New Rules of Measurement?

A
  • The NRM provides a common and consistent basis for the production of order of cost estimates and cost plans.
  • In the event that a QS or firm is pursued for negligence, the use of NRM would provide a means of defence as it represents best practice.
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5
Q

What is meant by the abbreviation GEA?

A
  • Gross External Area.
  • This is the area of the building measured externally at each floor level.
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6
Q

What is meant by the abbreviation GIA?

A
  • Gross Internal Area.
  • This is the area of the building measured to the internal face of the perimeter wall at each floor level.
  • The GIA excludes external open sided balconies, fire escapes, canopies, external walls and fuel stores.
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7
Q

What is meant by the abbreviation NIA?

A
  • Net Internal Area.
  • This is the area of usable space measured to the internal face of the perimeter wall at each floor level.
  • The NIA excludes internal structural walls and columns, spaces with headroom less than 1.5m, permanent lift lobbies, toilets, cleaners’ cupboards and plant rooms.
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8
Q

Where are all of these abbreviations defined?

A
  • The Code of Measuring Practice published by the RICS.
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9
Q

What is the purpose of the Code of Measuring Practice?

A
  • Provides precise definitions to allow the accurate and consistent measurement of buildings.
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10
Q

What would you expect the percentage of NIA to GIA to be?

A

The percentage would depends on the type of project being undertaken.

  • For example in an office building, I would expect the NIA to GIA percentage to be in the region of 70-85%.
  • Where 70% is considered as relatively inefficient, a percentage of 85% is extremely efficient.
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11
Q

What do you measure in accordance with?

A
  • The method of measurement to be adopted depends on the region, project and client that I am working with.
  • For example in the United Kingdom in the Building sector, typically the New Rules of Measurement would apply.
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12
Q

What is the purpose of a BoQ?

A
  • To provide the estimator with an accurate picture of the scope of works and a common and consistent basis for pricing.
  • It also enables the contract works to be assessed and valued for the purposes of interim payment.
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13
Q

How would you prepare a BoQ?

A
  • Compile all information necessary - drawings, specifications, schedules, document registers.
  • If the information provided was sufficient to allow the BoQ to be compiled, I would discuss with the client and design team the method of measurement to be adopted.
  • I would then commence the Take-off & work from the Substructure upwards.
  • Following BoQ production I would carry out regular meetings and review any updated drawings to ensure that no works items had been missed between packages.
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14
Q

How would you structure a BoQ?

A

In accordance with an elemental breakdown structure under NRM 2, I would include the following sections:-

o Preliminaries (Main Contract).
o Facilitating Works.
o Substructure.
o Superstructure.
o Internal Finishes.
o Fittings, Furnishings and Equipment.
o Services.
o External Works.
o Provisional Sums.
o Dayworks.

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15
Q

How would you describe the preliminaries section in a Bill of Quantities?

A
  • The preliminaries, detail items of work that are required to enable the construction but are not associated within the permanent measured works.
  • This could include items such as, site setup, management & supervision, or Insurances for the project.
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16
Q

How do you evaluate a variation which is based on a BQ item which contains an error?

A
  • Assuming the same nature & conditions are applicable, the variation would be based on the BoQ rate within the contract.
  • Unless both parties agreed to amend the rate to one that is fair and reasonable.
17
Q

What is a Provisional Sum?

A
  • Provisional sum is an allowance for an element of work within a contract that cannot yet be fully defined.
18
Q

What is the difference between defined and undefined provisional sums?

A
  • 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.
  • 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 if required.
19
Q

How did you check that the items measured for the BoQ were accurate?

A
  • At RG we have an comp check system where upon completion, a joint review of the drawings is carried out by my senior colleagues to ensure all scope of work items are captured.
  • Junior colleagues assist with undertaking spot checks on the quantities to ensure these are accurate.
20
Q

What is NRM2?

A
  • NRM2 provides a set of detailed measurement rules for the preparation of bills of quantities.
  • The rules address all aspects production including guidance on the structure and format.
21
Q

What is a Preamble?

A
  • A preamble is an explanation of a document that is commonly found in contracts, specifications and bills of quantities.
  • It can help with the interpretation of the document.
22
Q

What are method related charges?

A
  • A method related charge is a one-off item related to the method of carrying out the work and does not form part of the permanent works.
  • For example provision of temporary propping required for a weakened elevation of an existing building.
23
Q

What are time related charges?

A
  • Time related charges are method related charges that are considered proportional to time taken to carry out the works for example plant hire.
24
Q

What are fixed charges?

A
  • Fixed charges are method related charges that do not vary with time for example Service Connection Charges.
25
Q

How do you quantify internal partitions?

A
  • Section 2.7 of NRM1 details the measurement of internal walls and partitions.
  • Measurement rules highlight the thickness to be stated and measured in m2 on the centre line. No deduction made for openings.
26
Q

What is a schedule 2 quotation?

A
  • A Schedule 2 quotation aims to regulate the prices submitted by the contractor.
  • The contractor’s quotation must cross reference to the rates and prices in the contract bills.
  • Therefore, the contractor cannot simply disregard its tender rates and offer inflated prices when quoting for variations.
27
Q

What are the problems with provisional sums to the PQS?

A
  • Contractor may get economies of scale/ cheaper prices PQS would not know about.
  • Not much incentive for contractor to bring cost down.
28
Q

What are the different methods of measurement for a Cost Estimate?

A

1) Functional Unit
2) Floor Area
3) Elemental
4) Approximate Quantities
5) Bill of Quantities

29
Q

What is the rule for variations under dayworks in JCT?

A

If variations cannot be properly measured they can be valued on a ‘daywork’ basis. These can be valued as:

Option 1 - Percentage addition (prime cost to which a % is added for OHP)

Option 2 - All inclusive rates (quoted at tender and incorporated in the contract documents. Include allowance for OHP)

30
Q

What are the three New Rules of Measurement volumes

A

NRM_1 Order of cost estimating and cost planning
NRM_2 Detailed measurement for building works
NRM_3_Building Maintenance Works

31
Q

How would you use benchmarking data?

A

I would adjust for the following;
- Inflation
- Location
- Abnormals

32
Q

What risk allowances does NRM state need to be accounted for?

A

Design development risks
Construction risks
Employer change risks
Employer other risks

Total risk allowance = base cost estimate x % risk allowance for each of the above then added together.

33
Q

What’s the differences between IPMS and NRM?

A

IPMS: Focuses on area measurement standards, providing specific guidelines for how to measure floor areas, usable space, and external areas of buildings.

NRM: Provides a more detailed breakdown of the measurement and pricing of construction work, including materials, labour, and overheads, and covers stages from preliminary design through to post-construction costmanagement.

34
Q

How are NRM and IPMS linked?

A

NRM 1, 2 and 3 are linked to IPMS 1 and 2, which set the rules for measuring GEFA and GIFA respectively.

35
Q

How doe IPMS relate to the Code of Measuring Practice?

A
  • IPMS 1 = GEA
  • IPMS 2 = GIA
  • IPMS 3 = NIA
36
Q

Is IPMS mandatory?

A

Yes

37
Q

What if a client asks you to use a different measuring practice?

A
  • I would advise the client of the benefits of IPMS, however if they still wanted us to proceed with a different measurement practice, I would ask the client to confirm this in writing and use the measurement method the client had requested.
38
Q

What are the benefits of IPMS over the Code?

A
  • Brings greater confidence and consistency to the global property market and allows greater transparency.
  • It is a recognised global standard.
  • Works alongside the international standard for accountancy and valuation.
  • Can be used by any number of stakeholders in a property.
39
Q

How would you measure for demolition / Facilitating works?

A

Quantifying facilitating works: Can be measured by site area, affected area, volume, length, time, or by item, depending on the type of work.

FYI

Facilitating works: Specialist tasks required before building works can begin, such as demolition, removal of hazardous materials, or soil stabilization.

Enabling works: Broader term that includes facilitating works along with temporary works and permanent works (e.g., demolition, site investigations, access roads, and mains services).

WS - APC Technical Competencies (10 decks)

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