Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

JT Revision > Technical - Design Economics and Cost Planning > Flashcards

Technical - Design Economics and Cost Planning Flashcards

1
Q

What are the New Rules of Measurement?

A

A coordinated suite of measurement rules that give a consistent approach and is best practise to us.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Name the three NRM documents?

A

NRM1 – cost estimating and planning.
NRM2 – Detailed measurement for building works.
NRM3 – Cost estimating and planning for maintenance.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What NRM document would I use for cost planning?

A

NRM 1.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

What does NRM2 do?

A

A guide and template to produce bills of quantities and schedule of works for capital projects.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

How does NRM deal with risk?

A

By not allocating a standard percentage as a lump, but by trying to assess in four different categories.
1. Employer change.
2. Employer other.
3. Design development.
4. Construction.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

What are the four levels of elements in NRM?

A

Group element.
Element.
Sub-element.
Component.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Name some of the standard preliminaries in NRM2?

A

Employer’s requirements.
Site accommodation.
Management and staff.
Temporary services.
Security.
Records and manuals.
Insurances/ bonds/ guarantees.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

What is an Order of Cost Estimate?

A

High level cost based on m2 or per functional unit. Applies to RIBA 0 and 1.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

What is the purpose of an Order of Cost Estimate?

A

To help work out if the project is financially viable by providing an initial estimate using appropriate data. Avoid the client wasting their time on design and legal fees if it’s not affordable.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

How do you include professional fees in an Order of Cost Estimate?

A

As a percentage.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

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

A

An estimate is a high level cost based on the employer’s requirements and is calculated on a m2 basis. Used at RIBA 0 or 1.
A plan is more detailed and provides and elemental breakdown of costs. Used at RIBA 2 and 3.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

What is a pre-tender estimate?

A

A costed BoQ or SoW from RIBA 4 information and using costed data. To provide the client with an idea of what the contractors will tender.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

How would I prepare an estimate for M&E works?

A

Either ask our M&E QS to assist for that section, use historic data for simpler items. Consult with the M&E Engineers for more specialist items.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

What is a provisional sum?

A

An allowance included in the tender documents or contract for a specific element of work that does not have enough detail for tenderers to accurately price.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

How can a provisional sum be expended?

A

Via an instruction from the Contract Administrator for JCT contracts.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

How are provisional sums dealt with in the final account?

A

By omitting the provisional and adding the actual cost.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

What are the risks of using provisional sums?

A

You include an insufficient amount and the cost is higher.
The nature of the work changes as more information becomes available and it takes longer than allowed for at tender stage.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Name the two types of provisional sums.

A

Defined and undefined.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

What is a defined provisional sum?

A

A specific piece of work that the contractor has accounted for in their price and programme. The contractor takes the risk that their estimate will be sufficient.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

What is an undefined provisional sum?

A

The client takes the risk and the contractor does not account for them in their price and programme. The client may have to grant an extension of time or additional payment.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Can the contractor claim an extension of time or prelims costs for a defined provisional sum?

A

No. It should already be factored into their programme and tendered prelims.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

What are the RIBA stages of work?

A

0 – Strategic
1 – Preparation & Brief
2 – Concept Design
3 – Spatial Coordination
4 – Technical Design
5 – Manufacture & Construction
6 – Handover and Close Out
7 – In Use

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

What are the main tasks of the cost manager?

A

Prepare initial cost advice.
Produce cost estimates and cost plans.
Prepare pricing documents for tender.
Evaluate and adjudicate tenders.
Prepare interim valuations.
Value instructions.
Analyse and comment on contractor’s claims.
Manage expenditure of the risk allowance.
Review ongoing costs and take action to avoid budget overspend.
Negotiate final account.
Issue financial reports.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

What is the purpose of cost planning?

A

To ensure employers are provided with value for money on their proposed projects.
Help designers and clients arrive at a practical and balanced design to suit their budget.
Provide information that helps the client make informed decisions.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Q

What is a base cost estimate?

A

An estimate of all known items or items that have a degree of certainty.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
26
Q

What is a works cost estimate?

A

Capital works, prelims and OH&P.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
27
Q

What is a cost plan?

A

An elemental breakdown of the works with an estimated cost. Helps with the design development by showing areas of risk, high costs and unknowns requiring development. Can provide different options to help give the client an understanding of the project costs as a whole.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
28
Q

What are the stages of cost planning?

A

Order of cost estimate.

Formal cost plan 1 – RIBA 2 information with dependence on assumptions. Use historical data to estimate and base it on a £/m2 rate.

Formal cost plan 2 – RIBA 3 information with a detailed breakdown of the works. Quantities are measured and rates applied using historical data. Sub-contractor quotes can be included. May still include some assumptions.

Formal cost plan 3 – RIBA 4 information with the ability to send information out to tender. Can complete a BoQ or SoW and carry out a pre-tender or post-tender estimate.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
29
Q

What is included in a cost plan?

A

Cover.
Report details.
Report summary including summary of cost changes since last report and why this has happened.
List information/ drawings used.
Basis of costs.
Summary of costs.
Notes on costs.
Elemental summary estimates.
Allowance for prelims.
Allowance for risks.
Allowance for contractor’s OH&P.
Allowance for professional fees.
Inflation estimate.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
30
Q

How should fees be included in the cost plan?

A

If you have a confirmed fee quote or percentage then include it. If not follow the NRM guidance on how to include fees as a percentage.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
31
Q

Why is the location of a project important when cost planning?

A

The location factor can affect the costs. London prices tend to be higher, but so do really remote areas where there is less competition and materials and labour are harder to source.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

What other information could you include to support the cost plan?

A

Value engineering options.
Assumptions.
Exclusions.
Costed risk register.
Cash flow forecast.
Covering letter.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
32
Q

What is a pre-tender estimate?

A

A QS costs the tendered BoQ or SoW to give the client an idea of cost for the tender returns. This estimate can be compared against the returned tenders.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
33
Q

What is TPI?

A

Tender Price Index.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
34
Q

What do TPI’s show?

A

The current index of tender prices compared to a predicted future index. Based on previous data, current market conditions and forecasted market conditions.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
35
Q

What is risk allowance?

A

A sum included in the cost estimate to cover unknown expenses or underdeveloped risks.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
36
Q

What fees should be included in the cost estimate?

A

Professional fees: Design team, project manager, consultants, surveys.
Contractor pre-construction fees: staff fees, design fees, OH&P.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
37
Q

How can design and construction processes impact cost?

A

If it’s complex to build and requires specialist skills to construct it, then it will cost more. May require value engineering to bring it back within the client’s budget. Assigning more risk to the contractor will also increase costs as they mitigate unknown factors.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
38
Q

How does cost planning benefit the client?

A

Tells them if their project is affordable. Helps them find a way to achieve their goals within their budget. It’s not necessarily about the cost, it’s about the value. Can they construct a building that meets their needs within their budget.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
39
Q

How can a QS help control the design to keep the project within budget?

A

Explain how changes in the design can increase or decrease the budget. Discuss areas that are viable for value engineering and draw attention to aspects of the project that are not economically viable or do not offer good value.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
40
Q

What are some reasons that costs overrun?

A

Project creep – the client or design team getting overly excited and straying away from the original goal/budget.
The QS has provided unrealistic cost estimates and tenders come back too high.
Risk allocation isn’t clear.
Uncoordinated designs leading to variations.
Poor change control processes.
Underdeveloped tender information.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
41
Q

How would I deal with a cost plan that is over the client’s budget?

A

Communicate clearly the main reasons why the estimate has exceeded their budget. Offer positive solutions to reduce the cost. Include the design team to utilise their knowledge of alternatives to find a collaborative solution.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
42
Q

What sources do I use for cost data?

A

Previous project data stored in-house on our server.
BCIS
SPONS
Client data from previous projects, if available
Quotes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
43
Q

What is BWIC?

A

Builders Work in Connection. An allowance for the contractor to carry out any supporting construction works whilst the services are being installed, such as drilling and cutting. Set as a percentage during the cost planning stages.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
44
Q

Why is VAT excluded from the cost plan?

A

Different types of construction work have different levels of VAT. We are not qualified to advise on VAT.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
45
Q

What is benchmarking?

A

Using historical data from similar projects to compare against my project to see if they’re comparable. If not, it may highlight a clear reason why (i.e. location or complex design).

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
46
Q

How are sub-contractor OH&P calculated in cost plans?

A

Deemed to be included in the unit rates.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
47
Q

What are the issues with estimating the cost of piling?

A

Don’t know how long they’re going to need to be. The risk of the piling works depends on the procurement route.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
48
Q

What is the BCIS?

A

Building Cost Information Services. Provides construction cost and price information through online services, price books and other publications.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
49
Q

What are the four types of pricing documents?

A

Bill of Quantities
Schedule of Works
Contract Sum Analysis
Schedule of Rates

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
50
Q

What are the different prices we can get for work?

A

Lump sum.
Cost reimbursable/ prime cost.
Re-measure.
Target cost.
Guaranteed Maximum Price.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
51
Q

What is a lump sum contract?

A

Fixed price. The client must issue a tender pack that clearly defines their requirements and provides supporting documentation for contractor to review and cost (drawings/ spec/ appendices).

52
Q

What is a re-measurement contract?

A

Contractor provides rates based on approximate quantities. When the work is undertaken then the contractor remeasures what they’ve actually done and applies it to the agreed rates.

53
Q

What is a prime cost contract?

A

Contractor carries out the work and then is reimbursed for their costs, plus an agreed OH&P. Used when works need to progress quickly but the design is not done or is being developed. Offers flexibility to make design changes but there’s no cost or programme certainty and there’s no incentive to be efficient.

54
Q

What is a target price contract?

A

A more positive approach to a prime cost contract, where the contractor and client share the risk. The cost of the project is estimated and the price is fixed. This is what the contractor aims for. Any savings made on the target price normally entitle the contractor to a bonus.

55
Q

What is a guaranteed maximum price contract?

A

Where the agreed contract sum will not exceed a specified maximum cost. Typically used on D&B contracts. The contractor must bear the costs if the project exceeds the agreed contract sum. Transfers the risks of developing the project from the client to the contractor so the tenders are likely to be higher to price in their risks.

56
Q

What are the advantages of a GMP contract?

A

Price certainty – contractor carries the risk.
Better control on overspending as the contractor will alert the team to expensive items.
Faster agreement of final account.

57
Q

What are the disadvantages of a GMP contract?

A

The contractors price may be higher to accommodate their risk allowance.
If the scope of the works change, then variations are likely to be exploited and expensive.
Can be adversarial.

58
Q

What risks are contractors taking if you ask for a lump sum contract on a project spanning 3 years?

A

Inflation and exchange rates.

59
Q

What is the typical contractor OH&P?

A

Depends on economic factors, location, market conditions, nature of works.

60
Q

How does a contractor price for design development in a D&B contract?

A

As a sum within the tender submission, which is usually a percentage based on how developed the tendered design is and the perceived risk.

61
Q

What are prime cost sums?

A

A cost that has been calculated and included in the tender/ contract by the QS for a specific specialist, supplier or sub-contractor to carry out works. So for a nominated sub-contractor I would include a prime cost sum and then the contractor would add their OH&P and attendance costs.

62
Q

What is the difference between a Prime Cost Sum and a Provisional Sum?

A

They’re both allowances for items that cannot be priced accurately at tender stage. Provisional sums are for items where there is insufficient information. Prime Cost Sums are for suppliers or sub-contractors that have been nominated by the client.

63
Q

What are preliminaries?

A

The contractors cost for administering the project and providing site staff, plant and services. Examples include:
Site accommodation
Welfare
Portaloos
Hoarding
Management staff
Storage
Access ramps

64
Q

What should I consider when estimating preliminary costs?

A

Likely length of contract.
Location
Accessibility
Type and size of project – new build, rebuild, conservation
Temporary works requirements
Security requirements
Sequencing of works
Is it a live site
Will there be imposed restrictions

65
Q

How can I determine a fair cost for the prelims?

A

Compare to previous projects.
Check the BCIS
SPONS
Comparison to returned tenders in-house database.

66
Q

What type of requirements might increase the prelim costs?

A

Cranes
Night and weekend working
Road closures
Major diversion of services
Closing train lines

67
Q

What is a time-related prelim?

A

Prelims that are costed on time related rates – e.g. the cost of a dump truck for one week.

68
Q

What are fixed related prelims?

A

One off costs such as the requirement for a crane.

69
Q

What is inflation?

A

A general increase in prices and the fall in the purchasing value of money.

70
Q

What two types of inflation do we consider in cost planning?

A

Tender inflation – the period measured from the base date to the date of the tender returns.
Construction inflation – the period measured from the point of tender return to the mid-point of construction.
NRM advises to combine the two to provide an inflation estimate.

71
Q

When are approximate quantities used?

A

When items cannot be accurately measured at the time of tender.

72
Q

What is a functional unit?

A

A unit of measure to help estimate the cost of a specific unit. So for a hospital the functional unit might be the number of beds. For a school it might be number of classrooms. For a car park it might be number of spaces. We assign a rate per unit and multiply it by the number of units to arrive at a cost.

73
Q

What is a wall to floor ratio?

A

Compare the wall area to the floor area. The lower the wall area per m2 of floor area, the more cost efficient the building.

74
Q

What is GIFA?

A

Gross Internal Floor Area. Measuring the internal area of the building from the internal perimeter of the walls on each floor. Usually exclude all details that are not fully enclosed.

75
Q

What is GEA?

A

Gross External Area. Measuring the external face of the perimeter walls.

76
Q

What is NIA?

A

Net Internal Area. Useable area within a building measuring the internal face of the perimeter walls.

77
Q

What would you expect the percentage of NIA to GIFA be?

A

Depends on the use of the building. I would need to look at past data to undertake a comparison.

78
Q

What is IPMS?

A

International Property Measurement Standards. Global mandatory standard for the measurement of floor areas. It supersedes the RICS Code for Measurement.

79
Q

What is a Bill of Quantities?

A

A detailed document that is a breakdown of all the components required to construct the building, and the prelims. Each item is measured and a rate applied to it. Requires a full set of drawings and specifications. Best tool for analysing costs, managing variations and monitoring expenditure.
Must include:
Prelims
Preambles
Measure works
Provisional sums
Prime cost sums
Dayworks
Appendices

80
Q

What are the advantages of a BoQ?

A

Can carry out a detailed tender adjudication and comparison
Great for post contract cost control
Good for complex projects
Everything should be identified and included
Cost certainty

81
Q

What are the disadvantages of a BoQ?

A

The drawings and specification must be sufficiently detailed
Expensive to produce
Takes a long time

82
Q

Why would I used a BoQ instead of a SoW?

A

BoQ is more detailed and easier to compare returned tenders.

83
Q

How should I include dayworks in a BoQ?

A

Day or hourly rate for different types of labour.

84
Q

What is a cashflow forecast?

A

A forecast of the client’s expected outgoings throughout the project. Usually showing the monthly payments to the contractor. I have used a S-Curve formula.

85
Q

How would I create a cashflow forecast?

A

I need the construction programme and the cost estimate or tender returns.
Input the months and overall budget into an S-Curve formula page we have on Excel.
I can break it down further by including the dates and setting out the retention.

86
Q

What are the main differences between the employer’s cashflow and the contractor’s cashflow?

A

The contractor’s cashflow shows the construction costs and prelims.
The employer’s cashflow also includes whole project costs like fees, interpretation, project manager, outreach etc.

87
Q

How does the cash flow forecast benefit the employer?

A

Helps them understand their financial commitments throughout the project.
Helps monitor if the project is on programme – early indication of delays or financial difficulties.
Helps them plan financial or grant draw downs.

88
Q

What would I infer from the contractor interim valuations being lower than the cash flow forecast?

A

That the project is behind programme.

89
Q

What would I infer from the contractor interim valuations being higher than the cash flow forecast?

A

That the project is ahead of programme or that the contractor is overclaiming and may be facing financial difficulties.

90
Q

Why do we need cashflow forecasts?

A

To ensure that the correct level of finance and draw down processes are in place.

91
Q

What might affect your cashflow and make it look odd?

A

If you have to purchase materials in advance.

92
Q

What is the purpose of a financial report?

A

To report against the capital budget, provide regular updates on expenditure and inform the client of savings or additional costs.

93
Q

Tell us how you developed and issued a cost report on project XXX?

A

Prepared using Excel.
Cover.
Introduction with details about information used to compile report, concerns and recommendations.
Summary page showing contract figure, expended provisional sums, architect instructions, anticipated variations, claims, expenditure to date and final account forecast.
Breakdowns for each section in the summary with details of all the changes.
Issued to the contract administrator and client team via email every month after the interim valuation has been agreed.

94
Q

What is the difference between cost and price?

A

Cost is the expense incurred by the contractor for labour, plant, materials etc.
Price is the amount the employer will pay for the item, product or service.

95
Q

How does a cost report help monitor and control the project budget?

A

Tracks all issues relating to project costs.
Regularly forecasts the final account so the client can make adjustments if the expenditure is getting too high.
Facilitates conversations for value engineering or making design decisions.

96
Q

The contractor on my project has made a large and unrealistic claim for loss and expense. How would I deal with this in the cost report?

A

I would include the contractors cost in the first instance, with a note that this was under review. I would then carry out due diligence, negotiate with the contractor and update the cost report when an accurate figure had been agreed.

97
Q

Give some examples as to why a project might have a cost overrun?

A

Uncoordinated design.
Objectives not clear or changing during the project.
Lack of investigations into unknowns or risks prior to tendering.
Unrealistic cost estimates.
Difficult design or buildability.
Project creep.

98
Q

What is life cycle costing?

A

An estimated of the cost of owning a building during its lifetime. Operational, maintenance and disposal costs.

99
Q

What is the point of life cycle costing?

A

To help the client work out if they can afford to operate the building before the design is commissioned and construction begun.
To help influence economical design and whether investing in more expensive materials or technology will actually work out cheaper in the long run due to savings on maintenance and bills.

100
Q

How accurate are life cycle costings?

A

It’s all estimated, so it depends on how accurately the assumptions made are.
The accuracy is likely decline over the length of time it’s calculated.

101
Q

Where can you get information about maintenance costs?

A

BMCIS – Building Maintenance Cost Information Service. Part of the BCIS.

102
Q

What are advanced payments?

A

The employer gives the contractor a lump sum payment in advance, usually for materials with long lead in times – like lifts.

103
Q

What are the disadvantages of advance payments?

A

Bad for the employer’s cashflow.
Concerning that a contractor does not have the financial capacity to fund items themselves. Are they in financial trouble?
If the contractor goes into liquidation then the client can lose the goods they’ve paid in advance for unless a vesting certificate is in place.

104
Q

What is a valuation?

A

A detailed breakdown of the works completed to date by the contractor as an application for an interim payment.
Used as a basis to issue the interim certificate.

105
Q

What are the main elements of a valuation?

A

Prelims
Measured work
Variations
Materials on and off site
Loss and expense
Provisional sums
Retention

106
Q
  1. What information is typically shown on a payment certificate?
A

Date of application.
Date of issue.
Client details
Contractor details
Contract Administrator details
Site address/ project name
Contract sum
Payment due date
Gross value of works
Less retention
Amount due excluding VAT
Signature

107
Q

How do I evaluate interim valuations?

A

Review the application and see what new work has been claimed for.
Go to site and check that work has been done.
Look at materials on and off site. Request invoices if needed.
Check the prelims.
Check the variations, claims and provisional sums.
Send any discrepancies back to the contractor if needs be – set a deadline.
Sent my recommendation to the contract administrator to issue the payment certificate.

108
Q

What is a vesting certificate?

A

A contractual agreement that transfers the ownership of goods and materials to the employer. The contractor pays a supplier so is the owner of them, but if the contractor goes into liquidation then the administrators are entitled to seize those assets for debts unpaid. If the employer has paid for the contractor for those materials in advance then they lose their money. A vesting certificate is the supplier acknowledging that even though they have received monies from the contractor for goods, those goods legally belong to the employer and will be provided to the employer even if the contractor goes bust.

109
Q

How do I value off site materials?

A

Request an invoice for the cost of the materials.
Visit the company/ storage yard if possible.
Request a signed vesting certificate and proof of insurance.
Ensure the materials are clearly marked with the client’s name and in their own separate area.

110
Q

What are the options for conducting valuations?

A

Stage payments – payments are made in chunks when the contractor completes a milestone (e.g. substructure, frame, external envelope).
Or monthly. This is what I usually do under JCT.

111
Q

What would I do if a contractor had claimed for paint in their first valuation?

A

Visit site and check if paint was there and any relevant work carried out.
If none, adjust the valuation accordingly and check thoroughly for any other front-loaded items.

112
Q

If the contractor’s work has been paid in an interim valuation, can it be devalued in a later certificate?

A

Yes. An interim certificate is payment on account of the final sum.
It can de-valued right up to the final account.

113
Q

What does the term ‘on account’ mean?

A

Payment that recognises that the work has been completed but the actual figure has not been agreed.

114
Q

My Junior Surveyor has incorrectly over certified an interim valuation – what should I do?

A

First double check that a mistake has been made. If it has:
Has the valuation been processed? If not, withdraw it.
If it has, then immediately calculate what it should have been and make sure this is rectified next month.
Review what went wrong, put steps in place to make sure that doesn’t happen again.
Tell the client what’s happened and what you will do to make sure it doesn’t happen again.

115
Q

What is a gross valuation?

A

The total amount of work valued from the start on site date to that current interim valuation. To work out what is owed to the contractor in the latest application, you take the gross valuation and deduct any monies paid in previous months.

116
Q

What do I need to check to include materials on site in the interim valuation?

A

That the materials are on site and adequately protected.
That the value/ amount of material matches what the contractor has claimed for.
That they’re covered by works insurance.

117
Q

When would I use Dayworks to value the works?

A

If there are no comparative rates in the agreed Bill or SoW and a fair and reasonable rate cannot be agreed.

118
Q

What is a variation?

A

An alteration to the original scope of works in the form of an addition, substitution or omission.

119
Q

What is the final account?

A

Financial statements of all the adjustments to the contract sum – showing the total amount that the employer is to pay. Includes all variations and is the final amount that the employer owes for the works.

120
Q

Who prepares a final account?

A

The QS for traditional procurement or Employer’s Agent for design & build.

121
Q

What is the purpose of the final account?

A

To conclude the financial position of the project.

122
Q

What should be included on the final account?

A

Summary
Adjustment of prime costs and provisional sums.
Adjustment of any approximate quantities.
Variations.
Claims.
Fluctuations.
Final account sum.
Space for employer and contractor signatures of agreement.

123
Q

What is the procedure for getting the final account agreed?

A

Carry out any final site visits that are required.
Negotiate any final outstanding issues with the contractor.
Complete the summary.
Get both parties signatures.

124
Q

What are the usual payment timescales under JCT 2016?

A

It should all be completed within 21 days.
Day 1 – Interim valuation date
Day 7 – Due Date. QS to issue their recommendation.
Day 12 – Contract Administrator to issue their Payment Notice deadline.
Day 16 – Employer Payless Notice deadline (should they changes their mind about the sum owed).
Day 21 – Final date for payment.

125
Q

What happens if an employer does not pay the sum owed to the contractor under JCT?

A

The contractor has the right to suspend works or to charge the employer interest on the unpaid sum from the Final Date for Payment to the day when the payment is made.

126
Q

What are the differences between SMM and NRM?

A

Structure (SMM7 A – Y) (NRM2 1 – 41)
NRM replaced SMM7 published by RICS
NRM designed to be compatible with BIM

127
Q

What NRM Documents are there?

A

NRM 1 – Order of cost estimating and cost planning for capital building works
NRM 2 – Detailed measurement for building works
NRM 3 – Order of cost estimating and cost planning for building maintenance works

JT Revision (16 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions