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APC KYRI > Quantification of costing > Flashcards

Quantification of costing Flashcards

1
Q

What is the new rules of measurement and why are they beneficial?

A
  • They are documents that provide a standard set of measurement rules and guidance for the cost management of construction projects and maintenance works.
  • Provide consistency across the industry and greater accuracy.
  • Parties will price on the same basis which might prevent misunderstanding and disputes
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2
Q

What are the volumes of NRM and could you please expand on each one?

A
  • NRM1 is on the quantification of building works and preparing cost estimates and cost plans.
  • NRM2 provide guidance in the preparation of bill of quantities (i.e how to prepare BoQs, defines the information required that is needed to prepare it, descripe key components)
  • NRM3 provides guidance on the quantification and description of maintenance works for the purpose of preparing initial order of cost estimates.
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3
Q

What is risk are dealt with under NRM?

A
  • Employer change risk
  • Employer other risk
  • Design development risk
  • Construction risk
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4
Q

What is a bill of quantities?

A

• It is a document that provides a list of items alongside their description, quantity and rate that are required to complete the works.

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5
Q

Benefits of bill of quantities?

A
  • Cost and time effective if you have to quantify the same design
  • Provides an extensive clear statement of work to be executed
  • Strong basis for budget control and accurate cost reporting
  • Source for real-time cost data.
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6
Q

What is benchmarking, and why would you use it?

A

• Benchmarking when you use of historical data from projects of similar nature and they act as a point of reference in order to compare it with other similar projects and also prepare a cost estimate.

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7
Q

How would you benchmark for your client?

A
  • Produce a clear document which shows the various cost plan elements side-by-side with the benchmark projects
  • I would identify items which re considered abnormal and I would then endeavour to justify cost anomalies for flag items.
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8
Q

What is a provisional sum?

A
  • It is an estimate of a works that is included in the contract price. This is because the item was not sufficiently defined at the contract sign off.
  • It might be works that the employer may or may not wish to be carried out
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9
Q

Can you name what pricing documents you can use at tender stage?

A
  • Bill of quantities
  • Schedule of rates
  • Contract sum analysis
  • Schedule of work
  • Priced activity schedule
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10
Q

What pricing option can you use for construction contracts?

A
  • Lump sum
  • Cost-plus
  • Remeasurement
  • Target cost
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11
Q

What are key advantages and disadvantages of remeasurement contracts?

A

Advantages
• Since the work is tendered in approximate quantities, the contractors will submit competitive prices in their tender
• The contractor’s risk is lower than lump sum
Disadvantages
• Less cost certainty until the project is complete
• A client will bear more risk than lump sum.

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12
Q

What are contractor preliminaries?

A
  • Items which cannot be allocated to a specific element, sub-element or component.
  • Items which are necessary to complete the works but not part of the works after the works are complete i.e staff costs, site establishment, security, temporary works, hire of equipment
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13
Q

How do you evaluate interim valuations?

A
  • Go to site and conduct/review the valuation with the contractor
  • Check work done, materials on site and materials off site
  • Value prelims
  • Agree Compensation events
  • Valuation amount
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14
Q

How do you value materials off-site?

A
  • Requesting a vesting certificate : proof that ownership will transfer to employment on payment
  • Ensure insurance was in place
  • Materials clearly marked
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15
Q

What is a vesting certificate?

A

• It is a document evidencing the transfer of ownership of good or materials from one party to another on payment

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16
Q

What is the final account?

A
  • It is the final financial position of the contract.

* All compensation events are agreed and therefore the total amount due is now clear to the client

17
Q

What is the procedure for getting the final account agreed?

A
  • I would prepare my position in terms on the items that are not yet fully agreed and send it to the subcontractor.
  • Any points of disagreement will be discussed and negotiated
  • Upon agreement both parties is to sign the document to show their agreement.
18
Q

How does a Payless notice work?

A
  • If either Party intends to pay less than the notified sum, he notifies the other Party not later than five days (the prescribed period) before the final date for payment by stating the amount considered to be due and the basis on which that sum is calculated.
  • A Party does not withhold payment of an amount due under this contract unless he has notified his intention to pay less than the notified sum as required by the contract.
19
Q

What is the payment Timeline NEC?

A

1

20
Q

What is clause 63? Why not use actual costs?

A

It has 10 subclauses

The changes to the Prices are assessed as the effect of the compensation event upon
• the actual Defined Cost of the work already done,
• the forecast Defined Cost of the work not yet done and
• the resulting Fee.

  1. Effect of CE does not reduce defined cost.
21
Q

What events can be compensation events under clause 60.1?

A
  1. PM gives an instruction
  2. PM gives an instruction to align with new party Agreement
  3. PM does not allow access
  4. PM does not provide something by a date shown in the accepted programme
  5. Start or stop work
  6. Employer , PM do not work within times shown on the Accepted programme, or condition in the WI, carry ou work on the site that is not stated in the WI
  7. PM does not reply to a communication within the time stated in the contract
  8. Instruction of historical value
  9. Change in decision
  10. PM withholds acceptance
  11. Supervisor instructs the contractor to search for a defect and no defect is found
  12. Inspection done by supervisor causes unnecessary delay
  13. Physical conditions which are unreasonable to include
  14. Weather less than once in ten years
  15. Event which is stated as a Employers risk stated
  16. PM takes over part of the work before completion
  17. PM does not provide materials facilities and sample test
  18. Correction to a compensation event
  19. A forece Majeure event
  20. Breach of subcontract
  21. A third party refuses to give consent
  22. Others fail to comply with the access regime
22
Q

What is Value for money?

A

• When you compare how much benefit you get from something with how much you had to pay for it.

23
Q

What types of estimates are there?

A
  • Budget / feasibility
  • Cost estimate
  • Cost plan
24
Q

What are the principal components of a cost estimate?

A
  • Construction cost
  • Preliminaries
  • Contractor’s OH&P
  • Contingency
  • Inflation
  • Assumptions - programme
  • Exclusions
  • Area Schedule
  • Basis of Estimate – drawings / specifications list
25
Q

What is the difference between a cost plan and a cost estimate?

A

• Cost plan is prepared at a defined moment and is updated and reported against at different stages. An estimate is generally a forecast of construction costs.

26
Q

What is the difference between risk allowance and contingency allowance?

A
  • Risk allowance is known event such as unknown soil disturbances
  • Contingency allowance is for unknown events such as potential change in scope
  • Two types of contingencies such as client and contractor specific
27
Q

Name the main elements of an elemental estimate

A
  • Substructure – excavation and substructure
  • Superstructure – frame, upper floors, external walls, roof, internal finishes
  • Services
  • External works
28
Q

What is usually excluded from a cost estimate?

A
  • Professional fees
  • VAT
  • Client decant costs
  • Loose fixtures and fittings
  • Inflation
  • Site acquisition costs
  • Section 106s
  • Removal of asbestos
29
Q

What is a cost plan?

A
  • Presents the estimated cost into a structural elemental or functional format
  • It shows how the design team proposes to distribute the funds available on the elements of the proposed building.
30
Q

How do you measure the costs on a civil engineering project?

A
  • CESMM4

* Civil engineering standard method of measurements.

31
Q

Different types of provisional sums?

A
  • Defined – reasonable for the contractor to provide an estimate and made an allowance
  • Undefined – tends to be items that are not yet design
32
Q

What are the NEC schedule of cost components?

A
  1. People
  2. Equipment
  3. Plant and Materials
  4. Charges
  5. Manufacture and fabrication
  6. Design
  7. Insurance

APC KYRI (21 decks)

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