Quantification and costing (of construction works)
| Question | Answer |
|---|---|
| What do you understand by “Quantification”? | Quantity takeoff from drawings as per the methods of measurement. |
| What is Costing of Construction works? | It is method of pricing the works usually using the First principles |
| What is First principles costing? | First principles costing, also known as first principles estimating, is a method of calculating project costs from the ground up by analyzing each individual component of a project and its associated costs, rather than relying on historical data or industry averages. This approach breaks down a project into its smallest parts, like materials, labor, equipment, and time, and then calculates the cost of each element separately before aggregating them to determine the total cost. |
| What is Measurement? | Transferring information from drawings and specifications into description and quantities. |
| What is a BOQ? | NRM 2 defines a BOQ as a list of items giving detailed identifying descriptions and firm quantities of the work comprised in a contract. |
| What is the purpose of a BOQ? What are the advantages of a BOQ? | The purpose of the Bill of Quantities is to provide the estimator with an accurate picture of the scope of works and to provide a common and consistent basis for pricing the project. Following receipt of Tender submissions, the Bill of Quantities also forms the basis of the Tender Analysis and allows an accurate like for like comparison to be undertaken. Throughout the post contract stages, it also provides the basis for the valuation rules of the contract for valuing variation items by referring to the rates contained within the bill. It also enables the contract works to be assessed and valued for the purposes of interim payments. |
| What are the disadvantages of a BOQ? | Lengthens documentation process, potentially increasing costs. May mislead inexperienced estimators. (BOQ does not define the entire scope of works) Requires accurate preparation to avoid errors. Suitable for conventional procurement systems. Tenderers may neglect workmanship specifications. |
| How would you prepare a Bill of Quantities? | I would meet with the design team to establish when the necessary information will be available, it is important to ensure the information provided is full and final to avoid abortive works. Following this I would look to compile all information necessary from the Design Team including drawings, specifications, schedules and document registers. Following receipt of the information, I would check to see if the information is sufficient to allow the Bill of Quantities to be complied. This largely depends on the form of contract for example, under remeasurement forms the information does not have to be complete but must be substantially complete. I would discuss and agree with the client and design team the method of measurement to be adopted. Prior to commencing measurement and taking off quantities, I would consider the size of the project and break the works down into sections and areas for example, Substructure, Superstructure & External Works. I would then commence the take-off & work from the substructure upwards. When measuring is complete I would look to address the general items section & any preambles. Following production of the Bill of Quantities, I would carry out regular meetings and review any updated drawings to ensure that no works items had been missed or overlooked between packages. |
| What is Approximate bill of quantities? | An approximate bill of quantities (sometimes referred to as a notional bill of quantities or provisional bill of quantities) is subject to re-measurement, and is used if there is insufficient information to prepare a firm bill of quantities at the tender stage, or if it is decided that a firm bill of quantities is not necessary. The description of the works required is complete, but the quantities are approximate. As a result, quantified schedule of rates are provided by tenders rather than a lump-sum price, and the quantities are subject to re-measurement on completion. |
| What is Firm bill of quantities? | A firm bill of quantities is used to obtain a lump-sum price for a fully-designed project. The work required is measured and described precisely, meaning that it can be priced accurately. As a result, tender prices should be reliable and good financial control should be possible. |
| What are the different standard methods of measurement? | 1. SMM7 replaced by NRM2 2. CESMM4 3. POMI 4. Bespoke SMM |
| Why use standard methods of measurement? Advantages of standard methods of measurement? | It is important that there is a uniform basis for measuring building works in order to facilitate industry wide consistency and benchmarking, to encourage the adoption of best practice and to help avoid disputes. |
| Disadvantages of standard methods of measurement? | It is standard in nature not specific or tailor made to a project. |
| What is POMI? | POMI stands for Principles of Measurement International, a globally recognized set of guidelines for measuring and valuing construction work. Published by RICS. It has 17 sections. |
| What is SMM7? | The Standard Method of Measurement (SMM) is published by RICS and now replaced by NRM 2. It provides detailed information, classification tables and rules for measuring building works. |
| Why did NRM2 replace SMM7? Comparison of both. | 1. elements being broken down further within NRM2 with 41 work sections against the 22 trade sections in SMM7, 2. flexibility for the QS to add additional information to the description with composite descriptions of works, 3. many small items deemed to be included within the rates (these had to be priced separately within SMM7 which was a complete uneconomical use of a surveyor’s time), 4. and the structure of NRM2 has been designed to be compatible with the widespread adoption of Building Information Modelling (BIM), ICMS, IPMS etc. |
| What is NRM? | New rules of measurement (NRM) is a suite of documents written to provide a standard set of measurement rules that are understandable by anyone involved in a construction project. They comprise rules for the measurement of the construction, repair, renewal, maintenance and demolition of built assets. The suite provides essential guidance to all those involved in the cost management of construction projects. The NRM suite comprises the following three volumes: • 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. |
| What is NRM2 and how it is structured? | NRM 2 provides standard detailed rules for the measurement and description of building works, in order to prepare bills of quantities (BQs) and quantified schedules of works. It addresses all aspects of BQ production, including setting out the information required from the employer and other construction consultants, as well as dealing with the quantification of non-measurable work items, contractor-designed works and risks. It provides a uniform basis for measuring and describing building works and sets out good practice. NRM2 is divided into following parts: Part 1: General – abbreviations and definitions used in the rules, describes the purpose and uses of NRM2; explains the function of bill of quantities, provides work breakdown structures for bill of quantities, etc. Part 2: Tabulated rules of measurement for building works – comprises the majority of NRM2 being the tabulated rules for the measurement and description of building works for the purpose of works procurement. It consists of 41 works sections starting from preliminaries and upto Builders works. Part 3: Appendix for Guidance on the preparation of bill of quantities, Template for preliminaries etc. |
| What is ICMS? How is it related to NRM? | International Cost Management Standards (ICMS) is a principle-based international standard which provides a high-level structure and format for classifying, defining, measuring, recording, analysing and presenting construction and other life cycle costs, which is to be applied worldwide. It promotes consistency and transparency across international boundaries. ICMS is a construction and life cycle cost classification tool and therefore does not include detailed measurement rules for building components, systems and installations. Detailed measurement in connection with order of cost estimates and cost plans is to be in accordance with NRM 1, whole life costs (e.g. renewal, maintenance and operational costs) in accordance with NRM 3. |
| Why NRM2 is not widely used for Buildings? | 1. People are not familiar since it is fairly new 2. It will take time and resources since it is much detailed |
| What is CESMM4? | CESMM4 is the Civil Engineering Standard Method of Measurement, Fourth Edition. It is published by the Institution of Civil Engineers (ICE). CESMM4 sets out a procedure for the preparation of a Bill of Quantities for civil engineering works, for contracts based on traditional ‘measure & value’ principles. The work classification system in CESMM4 includes 26 main classes of work commonly undertaken on civil engineering projects and defines; how work is divided into items, the method for describing items, the units to be adopted and the method of measurement. |
| Where do you suggest to use CESMM4? | Civil engineering works and simple building works incidental to civil engineering works. |
| What are the 4 types of rules in CESMM4? | • Measurement rules – Set out how to measure works • Definition rules – Sets out meaning of terms used in CESMM • Coverage rules – Explains what items are included but not specifically stated in the description • Additional description rules – States whether additional descriptions are required over and above standard phases. |
| What are the contractual requirement as per CESMM4? | Bonds, insurances, parent company guarantee (for subsidiary companies). |
| What are the specific requirements in CESMM4? | Accommodation, testing and temporary works. |
| What are the major difference between POMI and CESMM4? | • CESMM4 is used for civil engineering projects and POMI can be used any type of construction. • Under CESMM4 the method related charges shall be measured separately, whereas in POMI there is no separate item. • No. of sections in CESMM4 is 26 and in POMI is 17. |
| What is the purpose of pricing preambles? | Pricing preambles in the BOQ specify what costs should be included and excluded within the unit rates. They also outline the method of measurement adopted for each work item. |
| What are method related charges? | Method-Related Charges (MRC) are time-related costs or fixed costs for work items relating to the intended construction methodology(method of construction) of the Contractor in Civil engineering works/contracts. They are not proportional to the Quantities in the B.O.Q ie. is not re-measurable, and will be paid in installments as agreed between the Contractor and Engineer. However, the amount can be varied only in such situations, where the Engineer specifically instructs to change the method of working the Contractor allowed for. Applicable for CESMM4. |
| What are the Advantages of Method related charges? | • Contractor can recover the moneys he spent at the beginning for site establishment. • Contractor can recover his normal overheads (site), if BOQ Quantities get reduced by remeasurement. • Client can easily assess the preliminary items for calculating Prolongation costs on any Time extensions. |
| What are Provisional Sums (PS)? | Provisional Sum is a sum of money which may or may not be required to carry out work whose design is incomplete or whose total scope cannot be determined in the beginning. It is used to make an allowance for the said work in the contract. |
| What are the different types of Provisional Sums? | • Defined provisional sums are those which have been described in sufficient detail that the contractor is expected to have made allowance for them in their programming, planning and pricing preliminaries. • Undefined provisional sums are less well described and so the contractor cannot be expected to make allowance for them in their programming, planning and pricing preliminaries. |
| What is a Prime Cost (PC) item? | Prime cost generally is an allowance for articles to be provided by the contractor, of which price cannot be fixed at the time of tender. It refers only to the supply of materials and not to the carrying out of works. A specific amount will be earmarked in the BOQ for execution of such items. E.g. Rate for Installation of Light fixtures will be fixed but Supply rate will be finalised only when a supplier is finalised, so supply rate will be a Prime Cost item. |
| What are Preliminaries? Why are they required? Examples? | Preliminaries are items which cannot be directly attributed to any component, element or work section but are required to carry out the works specific to the project. They are usually provided in the beginning of any BOQ to make allowance for those costs which are necessary for the running of the project but are not specifically related to any one item or operation. E.g. staff, welfare provisions, site offices, plant, site waste clearance, water, electricity, site offices, furniture, ICT and consumables, rates, protection of work, protective clothing, site transport, setting out, building control fees |
| What is Front loaded BOQ/Bid? | A bid is “front-loaded”if the total price is allocated in a manner where elements of the work to be performed, and paid for, early in a project bear a disproportionate amount of cost, overhead and profit. In other words, the contractor is attempting to maximize revenue early in the project by assigning overstated values to preliminary portions of the work. A front-loaded contract poses financial dangers for a project owner. It is never in an owner’s best interest to pay a contractor an amount that exceeds the value of the work in place. In a worst-case scenario, it is a disincentive for completion. Even assuming diligence and good faith on the part of the contractor, it leaves the owner in a difficult position. In the event of a termination for default or convenience, the owner will have no effective way to recoup the overpayment. |
| What is Back loaded BOQ/Bid? | It is the opposite of Front loaded BOQ/Bid. It could be done to take advantage of knowledge of any rising prices when there is a Price escalation clause in contract. |
| What is the Quantum Meruit principle? | Quantum meruit is a Latin phrase meaning “what one has earned”. In the context of contract law, it means something along the lines of “reasonable value of services”. If price for the work is not specified in the contract or If there is no agreement with the payment terms or if contract is void, ‘a fair remuneration’ together with value of materials provided should be given. |
| What is a Star rate? | Star Rates are used to price work where the unit rates in the contract cannot fairly represent the work done exactly. Usually, contract unit rates that are similar to the work done are used in negotiations to determine the Star Rate. Star Rates may be used for example where the original installation work is required in a new location that presents higher installation difficulties. |
| What is substantial change in quantity for revision of rates/price? | For remeasurement as per FIDIC 99 – it is 10% |
| What is BCIS? | The Building Cost Information Service (BCIS) provides cost and price data for the UK built environment, for construction, insurance and life cycle costing. People in many capacities – both professional and personal – regularly rely on BCIS information. Quantity surveyors use BCIS data to give early cost advice, to budget and benchmark projects and to prepare life cycle cost plans. Insurers use rebuilding cost data to quote more accurate and competitive premiums for buildings insurance. BCIS historic data goes back 50 years; while their forecasts will help you plan for the next five years. |
| What is the purpose of the Code of Measuring Practice? | The Code of Measuring Practice provides precise definitions to permit the accurate and consistent measurement of buildings. |
| What do you understand by the terms of GEA, GIA and NIA – All these are defined by RICS Code of measuring practices | • GEA – Gross External Area – is the area of a building measured externally at each floor level. • GIA – Gross Internal Area – The area of a building measured to the internal face of the perimeter walls at each floor level. • NIA – Net Internal Area – Usable area within a building measured to the internal face of the perimeter walls at each floor level. |
| What would you expect the percentage of Net Internal Area to Gross Internal Area to be typically? | The percentage would depend on the type of project being undertaken for example whether this was a school, hospital or office. In the case of an office building, I would expect the Net Internal Area to Gross Internal Area percentage to be in the region of 70-85%. Where 70% is considered as relatively inefficient, a percentage of 85% is extremely efficient. |
| What is a Schedule of Rates? | A schedule of rates is a list in a contract setting out the staff, labour and plant hire rates that the contractor will use for pricing cost reimbursable instructed daywork. It does not contain any quantities for the specific work items and is typically used when the nature of work required is known but it cannot be quantified, or if continuity of programme cannot be determined. |
| What are Dayworks? | Daywork is a means by which a contractor is paid for specifically instructed work on the basis of the cost of labour, materials and plant plus a mark up for overheads and profit. It is generally used when work cannot be priced in the normal way |
| What are Provisional Quantities? | Where work can be described and given in items in accordance with the tabulated rules of measurement but the quantity of work cannot be accurately determined, an estimate of the quantity shall be given and identified as a ‘provisional quantity’. Work items identified as a ‘provisional quantity’ shall be subject to remeasurement when they have been completed. As per NRM 2, Where the variance between the ‘provisional quantity’ and the ‘firm quantity’ measured is less than 20 per cent, the rate tendered by the contractor shall not be subject to review.Where the variance is significant (i.e. 20 per cent or more), the rate can be reviewed to ensure that the rate is fair and reasonable to both the employer and contractor. |
| What is a working BOQ? | When discount is applied on a contract BOQ, a working BOQ is prepared. This may be used for the interim payments. |
| What is Construction floor area? What is Net floor area? How is it related to Gross Floor Area? | The gross floor area (GFA) of a building is the total of usable surface areas of all floor plan levels and their constructive enclosure. It is therefore measured according to the external dimensions of a building. The gross floor area is divided into the net floor area and the construction floor area. The net floor area (NFA) includes the area of usable areas of all floor plan levels located between rising components of the building. It is divided into the usable area (UA), functional area (FA) and circulation area (CA). Furthermore, the net floor area also includes the areas of exposed installations or permanently installed objects The construction floor area (CFA) is the total of the areas of the rising components of all floor plan levels. These include walls, columns, chimneys, alcoves, wall openings, windows, doors, etc. GFA = NFA + CFA NFA = UA + FA + CA |
| What is Double handling of materials? | Double handling on a construction site refers to the unnecessary movement or transportation of materials or equipment multiple times. When a material has to be handled twice, it doubles the time taken and the transport. Double the chance of damaging the asset. |
| What is a List of principal quantities? | In CESMM4, A list of the principal components of the works with their approximate estimated quantities shall be given solely to assist tenderers in making a rapid assessment of the general scale and character of the proposed works prior to the examination of the remainder of the Bill of Quantities and the other contractual documents on which their tenders will be based. |
| What is Bespoke method of measurement? | No reference to standard methods of measurement. |
| What is IS 1200? | Indian Standard Method of measurement of Building and Civil engineering works. The standard is widely used in India by engineers, contractors, and government agencies for the preparation of bills of quantities and the measurement of construction works. The code is divided into 25 parts, each covering a particular type of construction project/activity. |
