Quantification and costing of construction works

Quantification and costing of construction works

1. Preparing Pricing documents

   • tender documents generally
   • BQ's
   • Sch of Works
   • Sch of rates
   • Provisional sums

2. Methods of measurement

   • SMM
   • CESSMM
     • 4 types of rules
       • Measurement
         • Sets out measured works
       • Definition rules
         • sets out meanings used in CESMM 3
       • Coverage rules
         • explains items included but not stated indescription
       • Additional description rules
         • additional descriptions
     • Structure
       • list of principle quants.
       • preamble
       • DW sch.
       • work items
       • summary
   • RICS code of Measuring Practice 6th ed.
     • GEA
       • gross external area
         • the area of the building measured externally at each floor level
     • GIA
       • gross internal Area
         • area of building measured to internal face of perimeter walls
           • Ex. open sided balconies, fire esp., canopies, ext walls, fuel stores
     • NIA
       • Net Internal Area
         • usable area within a building measured to the internal face of perimeter wall at each floor
           • ex. internal structural walls & columns, spaces with headroom less 1.5m, corridors & circulation , perm lift lobbies, WC, cln cub, plant rm
     • definitions to permit accurate & consistent measurement
   • difference between SMM and CESMM
     • SMM7 doc for measurement
       • more details as for BQs
         • e.g. excavation is separate items in SMM but classed as one in CESMM
       • suitable for building projects
     • CESMM
       • based on Ice Conditions of Contract

3. Analysis of Price

   • Tender Sums
   • Guranteed/Agreed Maximum Price
   • Target Cost - Pain-gain mech
   • L&E
   • Preliminaries
   • Dayworks

4. Valuation of Works

   • Interim Valuations
   • Valuing Change
     • Principles
       • add/omit are valued by quantifying the change of scope + using rates/prices 4 identical /similar works as basis of valuation
       • effects of prelims/risk allowances/design frees/OH&P should be considered
       • works not similar = rates from other works in the contract used & used as a basis 2 form a new rate/price with adj 4 diff.
         • star rate
       • when not possible 2 produce a * state - a fair rate/price is calc by 2 reflect changed factors
       • last resort = works valued on time taken and resources used 2 complete - dayworks
     • JCT
       • SBC XQ/Q/AQ
         • XQ/Q
           • change = alteration/mod of design quant. or qual.
             • priced docs used 4 pricing vals (CSA/wk sch)
             • contractor holds risk of properly quant scope.
           • Value change?
             • emp. & MC agree rate
             • where agreement not met = QS carry out valuation using valuation rules
         • AQ
           • Value Change?
             • QS re-measure works carried out by contractor and adjust BQ
       • IFC
         • Value change
           • same as Q?XQ
       • D&B
         • emp. & MC endeavour 2 agree valuation
         • fail 2 agree = EA value in accordance with V Rules
       • MW
         • if fail 2 agree = Ca value on fair and reasonable basis based on work sch. + inc L&E
       • MPC
         • Early warning - both parties notify other if change.
         • Emp request quote - deals with change + adj of prelims & design + EOT & L&E
         • value of change agreed b4 instruction
     • NEC
       • NEC A (act sch)
     • VARIATION: Alterations/ modifications 2 design/qual/quant of the contract works 2 site access or working cond.
     • different variations that could arise
       • change 2 spec.
       • discrepancy between contract doc
       • discrepancy with stat requirements
       • errors & omissions
       • deficiency in emp requirements
     • Instructions must be in writing - QS cannot make add 2 the contract sum for AIs that r not written
     • Oral instrutions
       • MC has 7 days 2 write 2 CA asking 4 the AI 2 b confirmed
       • if the CA does not respond in a further 7 days it is taken as being an AI
     • MC objecting 2 variations
       • they can make reasonable obj in writing 4 variations relating 2 those described in 5.1.2 (work cond)
       • CA can issue a compliance notice if the MC does comply with instruction
       • if there is no action by the MC within 7 days, others can b emp. 2 carry out that wrk
   • L&E
     • What is it?
       • reimbuses the MC for direct L&E incurred in carrying out add wrk or from an emp breach
     • Clauses in JCT SBC
       • 4.23 to 4.26
     • Procedure of claiming L&E
       • 1. as soon as reg wrk affected, MC notifes CA in writing ,
       • 2. MC 2 submit further info 2 CA if req.
       • 3. submit further info 2 CA/QS 2 help them ascertain the amount of L&E
     • Relevant Matters
       • events than entitle MC 2 L&E, along with deferment of possession of site
     • Relevant matters
       • 5 in total
         • 1. Variations
         • 2. Instructions
         • 3. Approx Qnts not properly described/forcast
         • 4. suspension by emp
         • 5. any impediment, prevention or default by MC
     • L&E should be an assessment if ACTUAL loss
     • what is not permissible - accelerations and claim preparation
     • Common heads of claims
       • prolongation (xtr site OH e.g. prelims)
       • Prelims thickeningm(extra supervision during period of delay)
       • Disruption (underemployment of plant / laabour)
       • Inc in labour/ mat cost during the period of delay
       • head office OH
       • Loss of profit (commonly combined with Head office OH
       • Finance chanrges
       • Acceleration costs
         • not permissible in JCT contract
       • claim prep costs
         • not permissible in JCT contracts
     • Use the HUDSON FORMULA
       • Head office OHP/ 100 X Contract sum/ contract period X period of delay
     • Global Claim
       • Global claim is where there is no attempt 2 separate out all the diff causes & their effects.
       • it lists a whole load of causes 4 delay/ L&E & gives the overall effect
       • due 2 difficulties proving/disproving them, MC is likely 2 end up with something e.g. EOT or L&E
     • Can MC claim if variations omits part of the works?
       • the claim would be for loss of profit
       • MC have 2 prove that no valid reason 4 emp to omit wrks - esp if the wrks then performed by another contractor
       • MC right 2 b able 2 complete the wrk he was contracted 2 carry out, & realise the profit & therefore for omissions, careful wording the variation
       • there cannot b fundamental changes 2 the charac 4 the wrk or else the contract may b seen 2 b breached
   • Final Account
   • Reporting on cost
     • intems included
       • Ex summary
       • preliminaries
       • instructed variations
       • anticipated variations
       • Claims
       • total certified payments
     • Purpose
       • report against budgeted values & act as a working cost check on the project budget
       • give client understanding of savings/add monies required
       • report on contract progress against pre-contract predictions
   • Tender report
     • list of tenders recieved
     • initial tender rtn costs
     • any quals identified
     • post-tender adjustments
     • revised tender sums
     • issues to be resolved
     • comparison of tender return
     • recommendation
     • comparison with PTE
   • Correcting errors in tender
     • JCT Practice note 6
       • 2 alternative
       • Alternative 1
         • cont. given details of errors
           • opportunity to confirm or withrdraw
             • Confirm
               • confirm tender sum in report
             • withdraw
               • approach the next lowest tenderer
       • Alternative 2
         • confirm or amend
           • genuine errors
         • Amend and now not lowest
           • engage with lowest
   • Post contract financial reporting