Quantitfication & Costing Flashcards
Why were the New Rules of Measurement introduced?
The previous Standard Method of Measurement (SMM7) was purely designed for the production of BoQs for tender purposes
This resulted in a lack of guidance and uniformity around preparing cost estimates and cost plans when using SMM7
The 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 their inclusions
What is the structure of NRM 1?
Key sections 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
Appendices: With references to the definition for GIA, functional units, NIA, elemental breakdowns, templates and general information required for cost plan production.
Why should you use the NRM?
Provides a common and consistent bass for production of OCEs and CPs
Provides added confidence to employers
In the event that a QS firm is pursed for negligence, the use of NRM would provide a means of defence as it represents best practice
QS’s 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
What is meant by the abbreviation GEA?
Gross External Area - the area of the building measured externally at each floor level
What is meant by the abbreviation GIA?
Gross Internal Area
Area of the building measured to the internal face of the perimeter wall at each floor
GIA excludes external open sided balconies, fire escapes, canopies, external walls and fuel stores
What does NIA mean?
Net Internal Area
Area of useable space measured to the internal face of the perimeter wall at each floor level
NIA excludes internal structural walls and columns, spaces with headroom less than 1.5m, permanent lift lobbies, toilets, cleaners cupboards and plant rooms
Where are all of these (GIA/NIA/GEA) defined?
In the Code of Measuring Practice published by RICS
What is the purpose of the Code of Measuring Practice?
The CoMP provides precise definitions to permit the accurate and consistent measurement of buildings
What would you expect the percentage of NIA to GIA to be?
% depends on the type of project being undertaken for example whether it is a hospital, school or office
In the case of an office building - NIA to GIA % in the region of 70-85%
Where 70% is relatively inefficient and 85% is extremely efficient
What do you measure in accordance with?
Method of measurement adopted depends on the region, project and client.
E.g. UK building sector usually the NRM would apply
Rails or Civils projects it is more common practice to use the Civil Engineering Standard Method of Measurement to be adopted
How do you measure structural steelwork under NRM2?
Measurement rules for structural steelwork are contained in section 15
Steelwork members are to be measured in tonnes and itemised according to their respective lengths, weight and type.
E.g.
Lengths
- not exceeding 1.00m
- Lengths over 1.00m but not exceeding 9.00m
- Lengths exceeding 9.00m
Weights
- not exceeding 25kg/m
- between 25-50kg/m
- between 50-100kg/m
Type
- Columns
- Beams
- Rafters
- Bracing
- Purlins and cladding rails
What other items are measured in association with structural steelwork?
Framing erection
Permanent for work
Cold rolled purlins and cladding rails
Isolated structural member
Filing hollow sections
Surface preparation
Surface treatment
Localised protective coatings
How do you measure brickwork walls under NRM and what other items would you measure in association?
The measurement rules for masonry are contained within section 14
Masonry walls are to be measured in m2 being itemised according to wall thickness, type of construction and method of formation
Other items to measure in association are:
- Chimney stacks
- Arches
- Brick reinforcement
- Forming cavities
- Closing cavities
What is the purpose of a BoQ?
Provide the estimator with an accurate picture of the scope of works and to provide a common and consistent basis for tendering
Following receipt of tender submissions, the BoQ also forms the basis of the Tender Analysis allowing for an accurate like for like comparison to be undertaken
Throughout the post contract stages it also provides the basis for the valuation rules of the contract for valuing variations items
It also enables the contract works to be assessed and valued for the purposes of interim payment
How would you prepare a BoQ?
Meet with the design team to establish when the necessary info will be available - it is important to ensure the information provided is full and final to avoid abortive works
Following this I would look to compile all information necessary from the Design Team including:
- Drawings
- Specifications
- Schedules
- Document Registers
Check if this info is sufficient to allow the BoQ to be compiled (this also depends on the form of contract being used, e.g. remeasurement forms only have to be substantially complete, not wholly complete)
Discuss and agree with the method of measurement to be adopted
Break down the works into sections and areas
Commence Take-off & work from the substructure upwards
When measuring is complete, look to address general items section & any preambles
Following BoQ production - carry out regular meetings and review any updated drawings to ensure that no works items have been missed or overlooked between packages
How would you structure a BoQ?
In accordance with an elemental breakdown structure under NRM2, I would include the following:
- Preliminaries
- Facilitating works
- Substructure
- Superstructure
- Internal finishes
- Fittings, Furnishings and Equipment
- Services
- External Works
- Provisional sums
- Dayworks
How would you describe the preliminaries section in a BoQ?
Preliminaries detail items of work that are required to enable the construction, but are not associated within the permanent measured works items
Including:
- Site set up
- Management & supervision
- Insurances
- Task lighting
- Protections and temporary barriers
What info is required to price preliminaries?
Contract duration
Location
Type of project (New build vs refurb)
Size of the project
Temporary works
Security
Methodology
Programme
Services
Employers accommodation
Contractor designed work
Sectional completion
Insurances/bonds
If it was found that a Bill rate was blatantly wrong (e.g. £100 instead of £1) how would this be resolved?
Works would be valued in accordance with the agreed rate contained within the contract
If identified within the tender docs prior to the contract being agreed, then the rate could be amended in accordance with the Tendering rules in place, but otherwise both parties would have to stand by the rate
How do you evaluate a variation which is based on a BQ item which contains an error?
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
Who owns the copyright to a BoQ?
The originator owns the copyright
This is generally the QS who provides the client permission to use the document for its intended purpose
How would you deal with a situation where it was discovered part of the BoQ was missing after the Main Contractor was on site?
Check to see if it was included as part of the tender documents and ultimately the contract sum
If not, the responsibility would lie with the employer
Providing the works were still required by the Employer they would be treated as a variation to the contract
I would request that the Contractor price the works & advice the Employer on the level of costs involved before the instruction is issued
What would you include within the BoQ where works are to be carried out by a Nominated Subcontractor?
A prime cost sum would be incorporated, including:
- An allowance for the cost of the Nominated Subcontractors work (based on the quotation)
- an allowance for the contractor to price for attendances such as accommodation, welfare, storage, handling, materials and cleaning
- An allowance for a percentage addition for any other charges or profit
What is a provisional sum?
A provisional sum is an allowance included within the BoQ for works to be carried out where the extent and design of the works is not yet known, meaning the cost cannot be established at the time of agreeing the contract sum
This could include works by a nominated subcontractor or supplier, or a statutory authority
What is the difference between a defined and an undefined provisional sum?
DEFINED - one that related to works that cannot be accurately measured, but there is sufficient information about the works, including their nature, method, location, quantity, programming and pricing of preliminaries to take place.
The contractor would therefore only be entitled to claim for any increase in the cost of the physical works
UNDEFINED - 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
How would you undertake an audit on a cost reimbursable contract?
Upon submission of the application by the contractor I would ensure this is provided in the agreed format & detail
I would review all the costs incurred to date in respect of Labour, Plant, Materials, Staff & OH&P
I would carry out an audit of the information & reconcile this against the fee schedules & rates within the contract
I would check timesheets, staff grades & rates, project codes, payroll burden, invoices, subcontract accounts, applications, payments, materials invoices, dates, rates, quants, delivery tickets etc
This would be compared against the contract rates to enable any adjustments that may be neeed
What is Simpsons Rule?
Simpsons is a mathematical formula for approximating the area under a curve over a given interval
How would you check that the items measured for the BoQ were accurate?
We have an internal peer review system where upon completion, a joint review of the drawings is carried out by a colleague to ensure all scope of work items are captured
A junior colleague may also assist with undertaking spot checks on the quantities to ensure these are accurate
How are obstructions dealt with on site? And in which package do you see them as included?
Obstructions are normally dealt with by a provisional sum within the BoQ, due to the undetermined nature of the works
They would usually be included in the earthworks contractors’ package, responsible for excavating the foundations
How do you measure cut and fill?
I would obtain drawings with existing levels & proposed levels
I would divide the area of excavation into a grid and interpolate the levels on the grid to establish average existing and proposed level
This would determine which area was cut and which was fill
Is the quantity for excavation similar as disposal?
Yes, providing there is no backfilling required and assuming the form of contract and method of measurement does not allow for bulking, shrinkage or waste of earthworks
How would you measure something unique?
If it can be broken down easily into measurable parts I would do so
Otherwise, I would have to insert an item with a detailed description of the works with a section to include a provisional sum
How do you deal with ground water under NRM2?
Measured under section 5 for Excavating and Filling
It is measured on an itemised basis with the original below ground level being stated and reference to whether the water is polluted
If the post contract water level differs from the pre-contract level the measurements must be taken and revised accordingly
The method and place of discharge is left to the discretion of the contractor unless otherwise stated
What is a Preamble?
An explanation of a document that is commonly found in contracts, specifications and BoQs
It can help with the interpretation of the document
It includes a description of the parties to the contract
The background to the document
Measurement procedures that have been adopted
What are method related charges?
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
They are not considered proportional to the item of works to be carried out
E.g. provision of temporary propping required for a weakened elevation of an existing building
What are time related charges?
Method related charges that are considered proportional to the time taken to carry out the works
E.g. plant hire
What are fixed charges?
Method related charges that do not vary with time
E.g. Service Connection Charges
What are the different NRMs used for?
NRM1 -
NRM 2 -
NRM 3 -
Under a D&B Contract - is the contractor entitled to additional design fees for undefined prov sums
No - they should account for this in their design fees in the contract
IPMS - why was it created?
to create a consistent standard internationally
How many main methodologies of measurement in IPMS?
Three methods
Four sections
Common challenges with costing construction
Errors in design info & take off
Market fluctuations
Insufficient design information
How would you know what TPI to include?
I would use our inhouse TPI advice
