Sams Quantification & Costing

Question 1

What is a functional unit

Answer 1

A unit of measurement used to represent the prime use of a building . It also includes circulation space

Question 2

Whats NRM 1 , 2 & 3 used for

Answer 2

NRM1 - Bill of quants
NRM2 - Cost plans and Cost estimates
NRM3 - Maintenance Estimates

Question 3

Whats the difference between a cost estimate and cost plan

Answer 3

Cost estimate is not based on a design and is usually based on employers requirements

Cost plan is based on a developed design , and more detailed and broken down.

Question 4

Name some sources of price information

Answer 4

BCIS
SPONS
In House Data
Past Project Data

Question 5

Can you name some construction indices

Answer 5

Tender Price Index
Building Cost Index
Construction price index

Question 6

Whats the issue with benchmarked data

Answer 6

Its not project specific.
Does not take into account abnormals
If not set out correctly can be difficult to compare like for like.

Question 7

What did you include in your stage 2 cost plan for exeter

Answer 7

Executive Summary
Risks & Opportunities
Assumptions and Exclusions
Breakdown of the costs
Preliminarie allowance
Professional fee allowance
OH&P allowance
Risk allowance

Question 8

What did you exclude in your Stage 2 Cost Plan

Answer 8

VAT
Capital Allowances
Out of Hours Working
Statutory work carried out.

Question 9

How did you come up with your allowances for
Prelims

Answer 9

At that point there was a programme, with an anticipated start on site date and completion date.

I was able to review the past projects to allow for a suitable rate or allowance to apply to the duration.

Question 10

Whats a suitable Prelim % allowance

Answer 10

Around 15%

Question 11

How did you come up with the risk allowance

Answer 11

At stage 2 we carried out a risk workshop.

The project team listed a number of risks and applied a probability to those risks.

I then costed those risks and multiplied it by the probability which then gave me my risk allowance.

Question 12

Whats the issues with Market Testing

Answer 12

When carrying it out on Exeter university.

I made sure that I went to suppliers within that region so to ensure that I get an accurate cost

When using any market rates, I made sure to add a % on top to cover any additional preliminaries or OH&P that the contractor may add on.

Before going out to the market , i spoke to the client to ensure that they were happy with me speaking about the project to the wider market.

Question 13

What did you look out for when you used benchmarked rates ?

Answer 13

Issue is abnormals in the project , benchmarked costs may not align correctly.

If I got them off employees from past projects , I would make a point of understanding the project that its come from and if its of any use.

Question 14

Why did you use dayworks ? was that the only option.

Answer 14

The works were emergency ground works , which would affect the programme if not rectified immedietly.

I suggested to the client that whilst it would be useful to get a quotation , the time taken to get a quotation and agree a cost could delay the project.

As a result the works were done on Dayworks. I spoke with the contractor and we agreed plant and labour rates and agreed that all dayworks sheets clearly state hours / work carried out and are signed off by the site manager.

Question 15

Why did you have a PSUM of £100, 000 in a contract, and how did you come up with that figure

Answer 15

At the time of getting into contract, the client needed to get on site ASAP.

There was also limited design information, at this point , and the contractor was not willing to fix their price based on the information that they had pre contract.

I suggested that we include a provisional sum for this element of works and that this sum get firmed up once the design gets finalised.

I came up with the figure by reviewing past rates for these works and applying it to the area that I knew was going to be constructed.

Question 16

What is a cost plan risk allowance

Answer 16

An allowance set aside as a precaution against risks and future requirements.

Question 17

What might be included in a Fee estimate

Answer 17

Consultant Fee
- Project and design team
- Specialist consultants
- Survey Fees

Contractor Fee
- Management and Staff
- Support Staff
- Design management fees
-Framework fees

Question 18

Whats the benefit of acurate cost planning

Answer 18

Confirms scheme is affordable
Places client in an informed position to make decisions
Can act as value management tool

Question 19

How do you deal with a cost plan that overbudget

Answer 19

Explain to the client
Look for potential areas where savings could be made.
This could include alternative product specs / scope ommision?

Question 20

What do you include in your cost estimates

Answer 20

Executive summary
Risks opportunities
assumptions exclusions
Elemental breakdown
Schedule of information used

Question 21

What are the four catergories of risk under NRM

Answer 21

Employer change
Employer Other
Design development
Construction risk.

Question 22

What is a Prime cost sum

Answer 22

a sum of money included in a unit rate for materials or goods from suppliers.
Supply only rate.

Question 23

What are the advantages of Lump sum contracts

Answer 23

Cost Certainty
Contractor can benefit if they can carry out the work lower than the lump sum

Question 24

Whats the disadvantages of a lump sum contract

Answer 24

Higher risk to contractor
This risk may increase the tender price

Question 25

What are the advantages of cost plus contract

Answer 25

Flexibility by nature , inaccuracies or change arent as detrimentaal as they are with lump sums

Design decisions can be made along the way.

Question 26

What are the disadvantages of cost plus contracts

Answer 26

Final cost is uncertain
Contractor can look to deliberetly incur costs to increase profit.

Question 27

What do you normally include as preliminaries

Answer 27

Management Staff
Site estbalishement
Temp services
Security

Question 28

How do you assess preliminaries

Answer 28

Length of Contract
Type of Project
Size
Need for temp works
sequencing

Question 29

Whats the difference between fixed and time related prelims

Answer 29

Fixed is purchasing site security
Time related - weekly tower crane hire

Question 30

Whats inflation

Answer 30

an increase in general price level of resources

Question 31

There are two types of inflation , what are they

Answer 31

Tender Inflation : an allowance in the cost plan for a general rise of costs during the period from the estimated base date to date of tender return

Construction Inflation : allowance for rise of plant labour resource from the period of date of tender return to mid point of construction.

Question 32

Why is construction inflation to the Mid Point of construction

Answer 32

Its deemed that at this point the Contractor would have procured most of the items needed.

Question 33

what do TPIS show

Answer 33

They measure movement in prices agreed between clients and contractors at ‘ commit to construct’

• typically used for adjusting estimated and budgets to different dates.

Question 34

What is a cashflow

Answer 34

a cashflow is a tool that projects cash in and out of a business.

Question 35

How can an employer benefit from accurate cash flow projections

Answer 35

Planning expenditure
Plan and anticipate periods of cash shortage
Gain an understanding of their commitment

Question 36

Whats the benefits of an activity schedule

Answer 36

Speed - easy to administer
clear on when item is paid - paid when complete - limits conflict

Question 37

Negatives of activity schedule

Answer 37

Difficult to align with programme
Can be an issue with contractors cash flow as they only get paid once activity is complete

Question 38

Why did you use activity schedule

Answer 38

It was agreed we would use NEC so option was activity schedule of BoQ and I advised that the client that they are very time consuming to produce.