Quantification and costing

Question 1

Why were the New Rules of Measurement introduced?

Answer 1

• The previous Standard Method of Measurement (SMM7) was purely designed for the production of
  bill of quantities for tender purposes.
• This resulted in a lack of guidance and uniformity around preparing cost estimates and cost plans when
  using SMM7.
• The NRM was introduced to provide a common and consistent basis for the production of order of
  cost estimates and cost plans and to give Employers more confidence around their inclusions.

Question 2

What is the structure of the NRM 1?

Answer 2

The key sections of NRM1 are:
o Part 1: General introduction explaining the purpose of the document and how it should be
used.
o Part 2: Measurement rules for the production of order of cost estimates.
o Part 3: Measurement rules for the production of elemental cost plans.
o Part 4: Tabulated rules of measurement for elemental cost planning.
o Appendices: With references to the definitions for GIA, functional units, NIA, elemental
breakdowns, templates and general information required for cost plan production.

Question 3

Why should you use the New Rules of Measurement?

Answer 3

• The NRM provides a common and consistent basis for the production of order of cost estimates and
  cost plans.
• This provides added confidence to Employers.
• In the event that a QS or firm is pursued for negligence, the use of NRM would provide a means of
  defense as it represents best practice.
• QS’s are not required to follow the NRM if they judge it as unsuitable for their specific project but they
  must have a good reason as to why this approach has been taken.

Question 4

What are the NRM 1?

Answer 4

• The RICS New Rules of Measurement 1 is the Order of Cost Estimating and Elemental Cost
  Planning.
• This provides a structured basis for measuring building works and for the production of Cost
  Estimates and Cost Plans.

Question 5

What is meant by the abbreviation GEA?

Answer 5

• Gross External Area.
• This is the area of the building measured externally at each floor level

Question 6

What is meant by the abbreviation GIA?

Answer 6

• Gross Internal Area.
• This is the area of the building measured to the internal face of the perimeter wall at each floor level.
• The GIA excludes external open sided balconies, fire escapes, canopies, external walls and fuel stores.

Question 7

What is meant by the abbreviation NIA?

Answer 7

• Net Internal Area.
• This is the area of usable space measured to the internal face of the perimeter wall at each floor level.
• The NIA excludes internal structural walls and columns, spaces with headroom less than 1.5m,
  permanent lift lobbies, toilets, cleaners’ cupboards and plant rooms

Question 8

Where are all of these abbreviations defined?

Answer 8

• The Code of Measuring Practice published by the RICS.

Question 9

What is the purpose of the Code of Measuring Practice?

Answer 9

The Code of Measuring Practice provides precise definitions to permit the accurate and consistent
measurement of buildings

Question 10

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

Answer 10

• The percentage would depends 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 NIA to GIA percentage to be in the region of 70-
  85%.
• Where 70% is considered as relatively inefficient, a percentage of 85% is extremely efficient.

Question 11

What do you measure in accordance with?

Answer 11

• The method of measurement to be adopted depends on the region, project and client that I am
  working with, for example in the United Kingdom in the Building sector, typically the New Rules of
  Measurement would apply.
• However if working on Rail or Civils projects it is more common practice for the Civil Engineering
  Standard Method of Measurement to be adopted.

Question 12

How do you measure structural steelwork under NRM 2 and what
other items would you measure in association?

Answer 12

• The measurement rules for Structural Steelwork are contained within section 15.
• Steelwork members are to be measured in tonnes and itemised according to their respective lengths,
  weight and type for example:-
  o Lengths
   Lengths not exceeding 1.00m.
   Lengths over 1.00m but not exceeding 9.00m.
   Lengths exceeding 9.00m.
  o Weights
   Weight not exceed 25kg/m.
   Weight between 25-50kg/m.
   Weight between 50-100kg/m.
  o Type
   Columns.
   Beams.
   Rafters.
   Bracing.
   Purlins and cladding rails.

Question 13

How do you measure brickwork walls under NRM and what other
items would you measure in association?

Answer 13

• The measurement rules for Masonry are contained within section 14.
• Masonry walls are to be measured in m2 with them being itemised according to wall thickness, type of
  construction and method of formation for example:-
• Other items to measure in association with masonry include
  o Chimney stacks.
  o Arches.
  o Brick reinforcement.
  o Forming cavities.
  o Closing cavities

Question 14

What is the purpose of a BoQ?

Answer 14

• The purpose of the BoQ is to provide the estimator with an accurate picture of the scope of works and
  to provide a common and consistent basis for pricing.
• Following receipt of Tender submissions, the BoQ also forms the basis of the Tender Analysis
  allowing 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.
• It also enables the contract works to be assessed and valued for the purposes of interim payment

Question 15

How would you prepare a BoQ?

Answer 15

• 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:-
  o Drawings.
  o Specifications.
  o Schedules.
  o Document Registers.
• Following receipt of the information I would check to see if the information is sufficient to allow the
  BoQ 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 the method of measurement to be adopted.
• Prior to commencement of measurement and taking off quantities, I would consider the size of the
  Project and break the works down into sections and areas for example:-
  o Substructure.
  o Superstructure.
  o External Works.
• I would then commence Take-off & work from the Substructure upwards.
• When measuring is complete I would look to address the general items section & any preambles.
• Following BoQ production I would carry out regular meetings and review any updated drawings to
  ensure that no works items had been missed or overlooked between packages.

Question 16

How would you structure a BoQ?

Answer 16

In accordance with an elemental breakdown structure under NRM 2, I would include the following
sections:-

o Preliminaries (Main Contract).
o Facilitating Works.
o Substructure.
o Superstructure.
o Internal Finishes.
o Fittings, Furnishings and Equipment.
o Services.
o External Works.
o Provisional Sums.
o Dayworks

Question 17

How would you describe the preliminaries section in a Bill of
Quantities?

Answer 17

• The preliminaries detail items of work that are required to enable the construction but are not
  associated within the permanent measured works items.
• This could include items such as:-
  o Site setup.
  o Management & supervision.
  o Insurances for the project.
  o Task Lighting.
  o Protections and temporary barriers.

Question 18

What information is required to measure preliminaries?

Answer 18

Contract duration.
* Location.
* Type of project (New Build vs. Refurb).
* The size of the project.
* Temporary works.
* Security.
* Methodology.
* Programme.
* Services.
* Employers accommodation.
* Contractor designed work.
* Sectional completion.
* Insurances / Bonds

Question 19

If it was found that a Bill rate was blatantly wrong for example £100
was included as a rate instead of £1, how would this be resolved?

Answer 19

• The works would be valued in accordance with the agreed rate contained within the contract.
• If identified within the tender documents prior to the contract being agreed then the rate could be
  amended in accordance with the Tendering rules in place, but otherwise both parties would have to
  stand by the rate.

Question 20

How do you evaluate a variation which is based on a BQ item which
contains an error?

Answer 20

• Assuming the same nature & conditions are applicable, the variation would be based on the BoQ rate
  within the contract.
• Unless both parties agreed to amend the rate to one that is fair and reasonable

Question 21

Who owns the copyright to a BQ?

Answer 21

• The originator owns the copyright.
• This is the QS generally who provides the client permission to use the document for its intended
  purpose

Question 22

How would you deal with a situation where it was discovered a part of
a BQ was missing after the Main Contractor was on site?

Answer 22

• If part of the BQ was missing then I would check to see if it were included as part of the tender
  documents & ultimately the contract sum.
• If not then the ultimate responsibility would lie with the Employer.
• Providing the works were still required by the Employer they would be treated as a variation to the
  contract.
• I would request that the contractor price the works & advise the Employer on the level of costs
  involved before the instruction is issued

Question 23

What would you include within the BoQ where works are to be carried
out by Nominated Subcontractor?

Answer 23

• A prime cost sum would be incorporated including:-
  o An allowance for the cost of the Nominated Subcontractors work (based on the quotation).
  o An allowance for the contractor to price for attendances such as accommodation, welfare,
  storage, handling, materials & cleaning.
  o An allowance for a percentage addition for any other charges & profit.

Question 24

What is a Provisional Sum?

Answer 24

• A Provisional Sum is an allowance included within the BQ for works to be carried out where the extent
  and design of the work is not yet know meaning the cost cannot be established at the time of agreeing
  the contract sum.
• This could include works by a nominated subcontractor or supplier, or a statutory authority.

Question 25

What is the difference between defined and undefined provisional sums?

Answer 25

* A defined provisional sum is one that relates to works that cannot be accurately measured, but there is sufficient information about the works including their nature, method, location, quantity, limitations to allow planning, programming & pricing of preliminaries to take place. The contractor would therefore only be entitled to claim for any increase in the cost of the physical works. * Where there is insufficient information, the works are classed under an undefined provisional sum entitling the contractor to costs for prelims and an extension to the programme

Question 26

How would you undertake an audit on a cost reimbursable contract?

Answer 26

* Upon submission of the application by the contractor I would ensure this is provided in the agreed format & detail. * I would review all the costs incurred to date in respect of Labour Plant & Materials, Staff & OH&P. * I would carry out an audit of the information & reconcile this against the fee schedules & rates within the contract. * I would check timesheets, staff grades & rates, project codes, payroll burden, invoices, subcontract accounts, applications & payments, materials invoices, dates, rates, quants, delivery tickets etc. * This would be compared against the contract rates to enable any adjustments that may be needed.

Question 27

What is Simpsons Rule?

Answer 27

* Simpsons is a mathematical formula for approximating the area under a curve over a given interval

Question 28

How did you check that the items measured for the BoQ were accurate?

Answer 28

* We have an internal peer review system where upon completion, a joint review of the drawings is carried out by my senior colleagues to ensure all scope of work items are captured. * Junior colleagues assist with undertaking spot checks on the quantities to ensure these are accurate

Question 29

What items would you include for when measuring for example a basement?

Answer 29

* It would depend on how the basement would be constructed. * When measuring a basement with piled walls and assuming the site was clear I would measure:- o Excavation & dispose of topsoil. o Continuous piles to walls including the piling rig, hard standing piling mat, testing, cutting & prep heads. o Excavation & disposal of arisings. o Preparation of the excavated surface. o Waterproofing. o Blinding. o Concrete to the basement slab & walls. o Reinforcement. o Formwork to walls. o Finishes to concrete. o Internal finishes

Question 30

What would you do if you produced a bill and you measured a staircase that did not exist?

Answer 30

* I would check the drawings and bills of quantities to see if the contractor was correct. * I would refer back to the Tender Drawings to see if there had been a design change. * Depending on the form of contract, I would remeasure the section and notify the Contractor of the remeasurement of actual quantities.

Question 31

How are obstructions dealt with on site? And in which package do you see them included?

Answer 31

* Obstructions are normally dealt with by a Provisional Sum within the Bill of Quants, due to the undetermined nature of the works. * They would usually be included in the earthwork’s contractors’ package, responsible for excavating the foundations

Question 32

How do you measure cut and fill?

Answer 32

* I would obtain drawings with existing levels & proposed levels. * I would divide the area of excavation into a grid & interpolate the levels on the grid to establish an average existing & proposed level. * This would determine which area was in cut and which area was in fill

Question 33

Is the quantity for excavation similar as disposal?

Answer 33

* Yes providing there is no backfilling required and assuming the form of contract and method of measurement does not allow for bulking, shrinkage or waste of earthworks.

Question 34

How would your approach to measurement change if you worked in Dubai?

Answer 34

* I would need to measure in accordance with the method of measurement appropriate for that country

Question 35

How do you measure something unique for example a statute of the client?

Answer 35

* If it could be broken down easily into the parts that are in accordance with the method of measurement, I would use this as the basis for measurement. * Otherwise I would have to insert an item with a detailed description of the works with a section to include a Provisional Sum

Question 36

How do you deal with ground water under NRM2?

Answer 36

Ground water is measured under Section 5 for Excavating and Filling. * It is measured on an itemised basis with the original below ground level being stated and reference to whether the water is polluted. * If the post contract water level differs from the pre-contract level the measurements must be taken and revised accordingly. * The method and place of discharge is left to the discretion of the contractor unless stated otherwise.

Question 37

What is a Preamble?

Answer 37

* A preamble is an explanation of a document that is commonly found in contracts, specifications and bills of quantities. * It can help with the interpretation of the document. * It includes a description of the parties to the contract. * The background to the document. * Measurement procedures that have been adopted

Question 38

What are method related charges?

Answer 38

* A method related charge is a one-off item related to the method of carrying out the work and does not form part of the permanent works. * They are not considered proportional to the item of works to be carried out. * For example provision of temporary propping required for a weakened elevation of an existing building.

Question 39

What are time related charges?

Answer 39

* Time related charges are method related charges that are considered proportional to time taken to carry out the works for example plant hire.

Question 40

What are fixed charges?

Answer 40

Fixed charges are method related charges that do not vary with time for example Service Connection Charges