Quantification & Costing of construction works Flashcards
Talk me through when you’ve selected appropriate pricing documents.
Essex Lodge - The design provided a good level of detail, therefore, I advised to utilise a BoQ, which allowed accurate quantification regarding progress of works executed.
Tell me about when you’ve negotiated a contract sum.
Project London - I examined the contractors tender submission and agreed that the rates matched those of a concurrent running project. The remaining items were reviewed and compared against rates from other projects and negotiated to arrive at a reasonable contract sum.
Tell me about when you’ve negotiated and/or agreed the valuation of
construction works?
Essex Lodgde -
* Planning - prior to start I revisit the contract conditions and determine the clients specific payment requirements and issue the team a valuation schedule
* Pre Valuation - Upon receipt I’ll complete an initial desk check of the contractors application
* Valuation - I’ll visit site and make fair assessment of the works through inspection.
* Valuation documentation - I’ll complete final desk check of the valuation. If I have made any adjustments or there are any errors I’ll rectify and send revised valuation back to the contractor to agree on changes made.
* On agreement I will prepare and complete valuation documentation and issue to CA/EA/PM
What does valuation documentation include?
Contract dependant -
* JCT; Interim Payment Certificate/Notice
* NEC; Interim Payment Assessment
* Statement of retention
* Sectional/Practical/Partial Possession Certificate
What are the pitfalls of BoQ?
- Errors within the document, the client bears the risk
- Lengthy production process
- High production costs
What are some other advantages of BoQ?
- Clear & extensive statement of works to be executed
- Provides consistent basis for tender evaluation
- Provides stong basis for post contract management
- Provides a schedule of rates
Could you have considered any alternative pricing documents?
Schedule of works
What are the disadvantages of a schedule of works?
- It can be difficult to properly assess tender returns if you wish to understand why there are large price variances on certain items between suppliers
- Agreeing variations can be problematic
What are the advantages of a schedule of works?
- Transfers the risk of errors in quantifying over to the contractor
What is a PTE?
Pre-Tender Estimate
* Final cost check before tender bids
Have you prepared a Pre Tender Estimate (PTE)?
- London - I produced a pricing schedule for tender issue, I then priced the activities within the document myself and compared it against the contractors bid
In your PTE what are 2 risks you advised your Client of?
- Contingency
- Inflation
- Exclusions
What is the purpose of cost management?
- Control cost
- Resource planning
- Cost estimation
- Budgeting
You mention advising on appropriate methods of measurement, who did you give this advice to?
- The contractor quantified a variation in a different method to the NRM2, this produced higher costs.
Was the contractor on your project in London, bound to match rates on like-for-like activities if the project is under a separate contract?
No, technically as it is a separate project they were welcome to apply new. However, the contractor was engaged on the promise that rates would be adhered to on any like-for-like activities.
How did you advise your client on the final account?
I advised my client that my last formal cost report gives an indication of the estimated final account and therefore, the client can express their overall position.
I also advised on items outside of the contractors account, such as;
* Professional fees
* Loose furniture
* Audio Visual
* Escorting
* Other employer direct costs
You mention assessing final accounts, how do you prepare?
When preparing for a final account I;
* Review the account
* Compile supporting documentation
* Ensure non-measured sums are omitted or adjusted via instruction
* Capture all contract instructions and variations
* Discuss items the client is willing to concede on and which they are not
How are your final account meetings structured?
- In a informal or formal environment.
- Each party will review one anothers supporting documentation and review their postion before negotiating and finding common ground.
- No set rules regarding structure
What process do you follow when agreeing a final account?
- Make an assessment
- Discuss outstanding variations with client and understand their commercial position
- Compile supporting documentation
- Email the contractor after agreement confirming final agreed figure
- Issue statement of final account to the contractor for signature
What does a statement of final account include?
It is not an official document, but it would typically include;
* Adjustment of provisional sums, quantities and prime costs
* Contract instructions
* Loss and expense
* Fluctuations
* Variations
What are the differences between NRM1, 2 & 3
NRM 1 – provides guidance on the quantification of building works for preparing cost estimates and cost plans.
NRM 2 - NRM 2 provides standard detailed rules for the measurement and description of building works, in order to prepare bills of quantities (BQs) and quantified schedules of works.
NRM 3 - NRM 3 provides essential guidance on the quantification and description of maintenance works
How do you value for preliminaries?
- Preliminaries are usually a mixture of fixed charge and time-related charge item,
- Time-related charges can be quantified and costed per week.
- Fixed charges will require quotations specifying total cost for a period.
How did you advise your client on change?
It depends on the form of contract, but typically;
* Where changes to the works character or condition occur, this constitutes change.
What are appropriate methods of measurement?
- Standard set of measurement rules, such as NRM2
You mention producing a BoQ for your £3m scheme in London, including the groundworks. In your experience name some line items captured in your measurement of the groundworks?
- Site clearance
- Site Preparation
- Excavation
- Disposal
- Imported Filling
In your experience name some line items captured in your measurement of the internal works?
- Finshes to floors/walls/ceilings
In your experience name some line items captured in your measurement of the External works?
- Kerbs
- Planting trees
- Surface application
- Turfing
In your experience name some line items captured in your measurement of the internal doors?
- Door set
- Roller shutters
- Ironmongery
Why did you use NRM 2? What is the difference between NRM 2 and NRM 1? Why didn’t you use IPMS?
As I was preparing a BoQ, I utilised the NRM2 as that is its purpose. NRM 2 provided standard rules for the measurement and description of building works, in order to prepare bills of quantities (BQs) and quantified schedules of works.
whereas;
NRM 1 – provides guidance on the quantification of building works for preparing cost estimates and cost plans.
- The revised NRM suite of documents are linked to the IPMS and incorporates the same principles
What is the ICMS?
- International Cost Management Standards
- A global high-level principle-based cost classification system
What is the purpose of RICS cost prediction?
- Sets out principles of global cost estimating/planning
What does IPMS stand for?
- Internation Property Measurement Standards
