Quantification and costing of construction works

Preparing Pricing documents
1. tender documents generally
2. BQ's
3. Sch of Works
4. Sch of rates
5. Provisional sums
Methods of measurement
1. SMM
2. CESSMM
  1. 4 types of rules
    1. Measurement
      1. Sets out measured works
    2. Definition rules
      1. sets out meanings used in CESMM 3
    3. Coverage rules
      1. explains items included but not stated indescription
    4. Additional description rules
      1. additional descriptions
  2. Structure
    1. list of principle quants.
    2. preamble
    3. DW sch.
    4. work items
    5. summary
3. RICS code of Measuring Practice 6th ed.
  1. GEA
    1. gross external area
      1. the area of the building measured externally at each floor level
  2. GIA
    1. gross internal Area
      1. area of building measured to internal face of perimeter walls
        Ex. open sided balconies, fire esp., canopies, ext walls, fuel stores
  3. NIA
    1. Net Internal Area
      1. 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
  4. definitions to permit accurate & consistent measurement
4. difference between SMM and CESMM
  1. SMM7 doc for measurement
    1. more details as for BQs
      1. e.g. excavation is separate items in SMM but classed as one in CESMM
    2. suitable for building projects
  2. CESMM
    1. based on Ice Conditions of Contract
Analysis of Price
1. Tender Sums
2. Guranteed/Agreed Maximum Price
3. Target Cost - Pain-gain mech
4. L&E
5. Preliminaries
6. Dayworks
Valuation of Works
1. Interim Valuations
2. Valuing Change
  1. Principles
    1. add/omit are valued by quantifying the change of scope + using rates/prices 4 identical /similar works as basis of valuation
    2. effects of prelims/risk allowances/design frees/OH&P should be considered
    3. 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.
      1. star rate
    4. when not possible 2 produce a * state - a fair rate/price is calc by 2 reflect changed factors
    5. last resort = works valued on time taken and resources used 2 complete - dayworks
  2. JCT
    1. SBC XQ/Q/AQ
      1. 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
      2. AQ
        Value Change?
        QS re-measure works carried out by contractor and adjust BQ
    2. IFC
      1. Value change
        same as Q?XQ
    3. D&B
      1. emp. & MC endeavour 2 agree valuation
      2. fail 2 agree = EA value in accordance with V Rules
    4. MW
      1. if fail 2 agree = Ca value on fair and reasonable basis based on work sch. + inc L&E
    5. MPC
      1. Early warning - both parties notify other if change.
      2. Emp request quote - deals with change + adj of prelims & design + EOT & L&E
      3. value of change agreed b4 instruction
  3. NEC
    1. NEC A (act sch)
  4. VARIATION: Alterations/ modifications 2 design/qual/quant of the contract works 2 site access or working cond.
  5. different variations that could arise
    1. change 2 spec.
    2. discrepancy between contract doc
    3. discrepancy with stat requirements
    4. errors & omissions
    5. deficiency in emp requirements
  6. Instructions must be in writing - QS cannot make add 2 the contract sum for AIs that r not written
  7. Oral instrutions
    1. MC has 7 days 2 write 2 CA asking 4 the AI 2 b confirmed
    2. if the CA does not respond in a further 7 days it is taken as being an AI
  8. MC objecting 2 variations
    1. they can make reasonable obj in writing 4 variations relating 2 those described in 5.1.2 (work cond)
    2. CA can issue a compliance notice if the MC does comply with instruction
    3. if there is no action by the MC within 7 days, others can b emp. 2 carry out that wrk
3. L&E
  1. What is it?
    1. reimbuses the MC for direct L&E incurred in carrying out add wrk or from an emp breach
  2. Clauses in JCT SBC
    1. 4.23 to 4.26
  3. Procedure of claiming L&E
    1. 1. as soon as reg wrk affected, MC notifes CA in writing ,
    2. 2. MC 2 submit further info 2 CA if req.
    3. 3. submit further info 2 CA/QS 2 help them ascertain the amount of L&E
  4. Relevant Matters
    1. events than entitle MC 2 L&E, along with deferment of possession of site
  5. Relevant matters
    1. 5 in total
      1. 1. Variations
      2. 2. Instructions
      3. 3. Approx Qnts not properly described/forcast
      4. 4. suspension by emp
      5. 5. any impediment, prevention or default by MC
  6. L&E should be an assessment if ACTUAL loss
  7. what is not permissible - accelerations and claim preparation
  8. Common heads of claims
    1. prolongation (xtr site OH e.g. prelims)
    2. Prelims thickeningm(extra supervision during period of delay)
    3. Disruption (underemployment of plant / laabour)
    4. Inc in labour/ mat cost during the period of delay
    5. head office OH
    6. Loss of profit (commonly combined with Head office OH
    7. Finance chanrges
    8. Acceleration costs
      1. not permissible in JCT contract
    9. claim prep costs
      1. not permissible in JCT contracts
  9. Use the HUDSON FORMULA
    1. Head office OHP/ 100 X Contract sum/ contract period X period of delay
  10. Global Claim
    1. Global claim is where there is no attempt 2 separate out all the diff causes & their effects.
    2. it lists a whole load of causes 4 delay/ L&E & gives the overall effect
    3. due 2 difficulties proving/disproving them, MC is likely 2 end up with something e.g. EOT or L&E
  11. Can MC claim if variations omits part of the works?
    1. the claim would be for loss of profit
    2. MC have 2 prove that no valid reason 4 emp to omit wrks - esp if the wrks then performed by another contractor
    3. 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
    4. there cannot b fundamental changes 2 the charac 4 the wrk or else the contract may b seen 2 b breached
4. Final Account
5. Reporting on cost
  1. intems included
    1. Ex summary
    2. preliminaries
    3. instructed variations
    4. anticipated variations
    5. Claims
    6. total certified payments
  2. Purpose
    1. report against budgeted values & act as a working cost check on the project budget
    2. give client understanding of savings/add monies required
    3. report on contract progress against pre-contract predictions
6. Tender report
  1. list of tenders recieved
  2. initial tender rtn costs
  3. any quals identified
  4. post-tender adjustments
  5. revised tender sums
  6. issues to be resolved
  7. comparison of tender return
  8. recommendation
  9. comparison with PTE
7. Correcting errors in tender
  1. JCT Practice note 6
    1. 2 alternative
    2. Alternative 1
      1. cont. given details of errors
        opportunity to confirm or withrdraw
        Confirm
        confirm tender sum in report
        withdraw
        approach the next lowest tenderer
    3. Alternative 2
      1. confirm or amend
        genuine errors
      2. Amend and now not lowest
        engage with lowest
8. Post contract financial reporting

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