Quantification & Costing of construction works

Question 1

Talk me through when you’ve selected appropriate pricing documents.

Answer 1

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.

Question 2

Tell me about when you’ve negotiated a contract sum.

Answer 2

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.

Question 3

Tell me about when you’ve negotiated and/or agreed the valuation of
construction works?

Answer 3

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

Question 4

What does valuation documentation include?

Answer 4

Contract dependant -
* JCT; Interim Payment Certificate/Notice
* NEC; Interim Payment Assessment
* Statement of retention
* Sectional/Practical/Partial Possession Certificate

Question 5

What are the pitfalls of BoQ?

Answer 5

• Errors within the document, the client bears the risk
• Lengthy production process
• High production costs

Question 6

What are some other advantages of BoQ?

Answer 6

• 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

Question 7

Could you have considered any alternative pricing documents?

Answer 7

Schedule of works

Question 8

What are the disadvantages of a schedule of works?

Answer 8

• 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

Question 9

What are the advantages of a schedule of works?

Answer 9

• Transfers the risk of errors in quantifying over to the contractor

Question 10

What is a PTE?

Answer 10

Pre-Tender Estimate
* Final cost check before tender bids

Question 11

Have you prepared a Pre Tender Estimate (PTE)?

Answer 11

• 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

Question 12

In your PTE what are 2 risks you advised your Client of?

Answer 12

• Contingency
• Inflation
• Exclusions

Question 13

What is the purpose of cost management?

Answer 13

• Control cost
• Resource planning
• Cost estimation
• Budgeting

Question 14

You mention advising on appropriate methods of measurement, who did you give this advice to?

Answer 14

• The contractor quantified a variation in a different method to the NRM2, this produced higher costs.

Question 15

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?

Answer 15

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.

Question 16

How did you advise your client on the final account?

Answer 16

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

Question 17

You mention assessing final accounts, how do you prepare?

Answer 17

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

Question 18

How are your final account meetings structured?

Answer 18

• 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

Question 19

What process do you follow when agreeing a final account?

Answer 19

• 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

Question 20

What does a statement of final account include?

Answer 20

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

Question 21

What are the differences between NRM1, 2 & 3

Answer 21

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

Question 22

How do you value for preliminaries?

Answer 22

• 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.

Question 23

How did you advise your client on change?

Answer 23

It depends on the form of contract, but typically;
* Where changes to the works character or condition occur, this constitutes change.

Question 24

What are appropriate methods of measurement?

Answer 24

• Standard set of measurement rules, such as NRM2

Question 25

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?

Answer 25

• Site clearance
• Site Preparation
• Excavation
• Disposal
• Imported Filling

Question 26

In your experience name some line items captured in your measurement of the internal works?

Answer 26

• Finshes to floors/walls/ceilings

Question 27

In your experience name some line items captured in your measurement of the External works?

Answer 27

• Kerbs
• Planting trees
• Surface application
• Turfing

Question 28

In your experience name some line items captured in your measurement of the internal doors?

Answer 28

• Door set
• Roller shutters
• Ironmongery

Question 29

Why did you use NRM 2? What is the difference between NRM 2 and NRM 1? Why didn’t you use IPMS?

Answer 29

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

Question 30

What is the ICMS?

Answer 30

• International Cost Management Standards
• A global high-level principle-based cost classification system

Question 31

What is the purpose of RICS cost prediction?

Answer 31

• Sets out principles of global cost estimating/planning

Question 32

What does IPMS stand for?

Answer 32

• Internation Property Measurement Standards