Technical - Level 1 Flashcards
Quantification
When to use NIA, GIA, GEA
-NIA is more relevant for tenants interested in usable space
-GIA is critical for overall property valuation and cost assessments
-GEA used when assessing areas for planning application purposes
-GIA encompasses the entire internal space of a building, including walls and service areas,
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- NIA represents the usable space, excluding structural elements and shared area
- Gross external area (GEA) is the area taken to the outside face of the external walls of a building
Quantification
What new standards have been introduced?
-International cost management standards ICMS
-international standard which aims to provide greater global consistency in construction costing.
-not a detailed method of measuring works, but ‘a high level benchmarking and reporting framework for cost classification, reporting and comparison.’
-tackles variances in reporting and costing methods around the world which makes comparing projects difficult
-Creating a common standard, they suggest, will improve transparency, investor confidence and public trust.
-added reducing carbon emissions in the third edition. provides a common reporting framework allowing the interrelationship between construction costs and carbon emission to be explored.
Contract Practice
What is in NEC contract data?
Part 1 - provided by Client
Main options, secondary options
Dates eg sectional, key, completion
Client insurance
Additional CE information eg weather data
Part 2 - provided by Contractor
Prices, staff rates
Contractor key staff, details
Proposed programme
Contractor design
Construction Tech
How has Brexit and Covid affecting this?
Covid
Converting buildings into healthcare establishments, fit-out
Quantification
Why do quantities need to measure in a uniform way?
-facilitate industry wide consistency and comparability
-confidence to clients that eg cost plan or BoQ done properly
-adoption of best practice
-facilitate benchmarking
-avoid disputes in construction projects and property valuations
Quantification
What types of measurement practice are there?
-International property measurement
standards.
More specifically IPMS: All Buildings
-RICS Property measurement - for office and residential buildings
-RICS Code of measuring practice - all other buildings
BOTH OF THESE BEING UPDATED TO REFLECT IPMS ALL BUILDINGS
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NRM1, 2, 3
CESMM4
Rail Method of Measurement (RMM),
Whole life carbon assessment
Quantification
What is RICS code of measuring practice?
-A guidance note
-provide precise definitions to permit accurate measurement of buildings/ land, calculation of the areas and volumes, and description of land and buildings on a common and consistent basis.
-used for variety of things eg: land acquisition, measurement for valuations, planning, council tax, conveyancing
Note:
-RICS Property measurement = for office and residential buildings
-RICS Code of measuring practice = all other buildings
BOTH OF THESE BEING UPDATED TO REFLECT IPMS ALL BUILDINGS
Quantification
Will the Employer’s Requirements be available at cost plan stage?
-Yes, they typically are
-Cost plan is based on assumptions if not well developed and then full requirements
-Updated iteratively
Quantification
What is purpose of NRM3?
-Same structure as NRM 1
-But for maintenance works, allowing for cost estimates and planning for building upkeep.
-Incorporates life cycle costing
Quantification
How do British Standards affect the measurement of construction works?
Quantification
How do building regulations affect how a building is measured?
-Building Safety Act 2022 clarifies how to measure building height
It also says 18+ metre buildings (or 7 stories) are high risk
-Building regs Part B gives minimum fire insulation thickness
-Part M gives minimum doorway widths
-Part L encourages use of Whole Life Carbon Assessment
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British standards
Standards for how elements should be specified and classified (e.g. BS EN 1990 for design principles).
Influence the format and structure of cost plans, particularly in MEP and civil works.
They ensure compliance and consistency in specification and documentation.
Quantification
What is the short schedule of cost components
-Used to assess Options A and B compensation events (while full version is used for valuing ALL works under options C, D, E etc)
-doesn’t contain all the detailed cost components of the full schedule eg ‘People’ is much more condensed with predetermined rates
Quantification
What current challenges is Covid and/or Brexit bringing to Quantification & Costing?
Brexit
Increased need for international standards as UK more detached from EU
Project Finance
What is the difference between cost control and cost reporting?
Cost control focuses on the proactive management and regulation of expenses to ensure a project stays within the approved budget,
cost reporting is the process of providing regular and accurate information on cost performance and status to stakeholders.
Project Finance
As a QS what should you be doing for your client?
-Ensure accurate and timely cost reporting
-tracking actual costs and identifying variances with explanations
-providing clear and concise cost reports that highlight key cost drivers and potential issues that allow client to make informed decisions
-forecasting
-managing risk allowances
Project Finance
How would the number of changes affect the frequency of reporting?
A greater number of changes in a project or business situation would generally necessitate more frequent cost reporting. This is because changes can impact the accuracy of cost projections and the overall financial health of a project.
So in my example, although they were monthly cost reports, I kept them continuously updated at EWN, quotation, agreed CE stages
Project Finance
How do you compile a risk register?
Post contract risk register
-Risk Identification
-Describe Project
-Describe Risk Consequences
-Calculate Impact Ratings and cost exposure
-Create Risk Responses/mitigation plan
-Define Risk Owners.
Project Finance
What is the importance of having a project cash flow forecast?
-helps both client and contractor plan ahead by showing when and how much cash will be needed to to ensure that sufficient funds are available to avoid delays or financial difficulties.
-Risk Management: by identifying the above, can put risk mitigation measures in place eg securing additional financing or adjusting the project schedule to optimize cash flow.
-make informed decisions about resource allocation and project scope.
-Can monitor Project Performance to see where cost overruns will occur against the budget.. and help target cost control to that specific area
-For clients and other stakeholders, a reliable cash flow forecast demonstrates the project’s financial viability and builds confidence in the project’s successful completion.
-Allows clients to make informed decisions
Project Finance
What information would you provide in your cost report?
-Initial budget
-Actual (defined) cost broken down by construction costs (further broken down by elements and activities), internal and external staff, third party costs
-Forecasted EWN’s, CE’s (broken down by cost element)
-Implemented CE’s (broken down by cost element)
-Variances of the above against the budget for each element/activity
-Expended Risk allowances
-Expended general Contingency budget
-Forecasts depending on VOWD
Project Finance
How would you define contingency?
Budget for unforeseen risks (safety net)
General percentage eg 10%
Project Finance
Difference between prime cost and provisional sums?
They both relate to allowances made for certain costs in the absence of exact figures
-PC sums are allocated amounts for specific items like fixtures/fittings from a nominated supplier where the actual product is selected later.
Paid on invoice PLUS overheads
Only covers only the supply of the item, not the installation labor.
-Provisional sums are allocated amounts for a specific element of the works that has not been defined in enough detail at the time that prices are sought from tenderers. They are then replaced by valuations of the work actually done as the project progresses
Can be defined (sufficient detail for tenderer to make allowance eg brickwork but no quantities) or undefined (can’t make suitable allowance eg unknown groundworks)
Project Finance
Construction Tech
How is a building constructed from slab upwards?
-Columns
-Upper floor
-More columns leading up to roof structure
-Envelope structure will infill walls
-Roof
-External walls
Then inside
-First fix M&E (before finishes eg in core of building)
-Stud partitions
-Raised access floor
-Ceiling/floor covers
-Plasterboard
-Second fix M&E (eg outside partitions walls)
-Finishes
-Fit out
Difference between value management and value engineering
Value management is a broad, strategic approach, typically done at feasibility stage to determine ways to meet requirements while reducing value
Value engineering a more focused technical process, typically done later on in design and can be replacing specific components while retaining same function
Pros and cons of SPONS?
Pros:
-Contains thousands of detailed pricing data
-Covers many different construction areas
-Based on real tenders
Cons:
-Not adjusted for location
-Published annually so doesn’t account for cost changes throughout year
-Not specific book for water
-Doesn’t consider project specific factors
How do modern methods of construction affect building cost?
-Higher initial cost
-More specialised labour cost
-Higher overall cost (but shorter programme, see below)
-Can cause delay costs if not considered early in design process
But:
-Reduce programme and so lower general prelims
-Less wastage/material cost
Quantification
What is cost per functional unit?
Whole works cost estimate divided by the chosen prime use of the building (unit), such as beds in a hotel or lettable m2 of an office
So basically the unit cost of each bed/per m2 of office
Contract Admin?
What are the differences between NEC3 and NEC4
-Requirement for contractor to make payment applications
-Final account mechanism,
-Single overheads fee for compensation defined cost, where NEC3 had lots of little
-Ability for contractor to issue proposals (e.g change scope and accelerate programme)
-Contractor can recover costs for preparing compensation events
-Introduces a ‘Dividing Date’ for CE’s
-Changes in terminology,
-Gender neutral
-Replaces ‘Employer’ with ‘Client’
Types of excavation
Topsoil
Earth
Rock
Trench
Stepped
Cut and fill
Dredging
Directional drilling
Trial holes
Boreholes
Key factors to consider when excavating?
Working space allowance;
proximity to existing structures;
nature of the soil;
depth of excavation;
requirement for earthwork support
Construction Tech
RICS modern methods of construction report?
The report looks at
-advantages of MMC
-various different solutions eg cross laminated timber, modular construction solutions like bathroom pods
-barriers for implementing it eg lack of quality control, Supply chain development and consumer perception
