Quantification & Costing

Question 1

Why were the New Rules of Measurement introduced?

Answer 1

• The RICS introduced the New Rules of Measurement (NRM) to standardize and improve the accuracy of measuring construction works.
• NRM aimed to enhance cost management, reduce disputes, and provide compatibility with international standards.

Question 2

What is NRM 1?

Answer 2

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

Question 3

What is the structure of the NRM 1?

Answer 3

The key sections of NRM1 are:

• Part 1: General introduction explaining the purpose of the document and how it should be used.
• Part 2: Measurement rules for the production of order of cost estimates.
• Part 3: Measurement rules for the production of elemental cost plans.
• Part 4: Tabulated rules of measurement for elemental cost planning.

Question 4

Why should you use the New Rules of Measurement?

Answer 4

• The NRM provides a common and consistent basis for the production of order of cost estimates and cost plans.
• In the event that a QS or firm is pursued for negligence, the use of NRM would provide a means of defence as it represents best practice.

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 in 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.

Question 12

What is the purpose of a BoQ?

Answer 12

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

Question 13

How would you prepare a BoQ?

Answer 13

• I would firstly look to compile all information necessary from the Design Team including; drawings, specifications, schedules, document registers.
• If the information provided was sufficient to allow the BoQ to be compiled, I would discuss with the client and design team the method of measurement to be adopted.
• I would then commence the Take-off & work from the Substructure upwards.
• Following BoQ production I would carry out regular meetings and review any updated drawings to ensure that no works items had been missed between packages.

Question 14

How would you structure a BoQ?

Answer 14

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 15

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

Answer 15

• The preliminaries, detail items of work that are required to enable the construction but are not associated within the permanent measured works.
• This could include items such as, site setup, management & supervision, or Insurances for the project.

Question 16

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

Answer 16

• 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 17

What is a Provisional Sum?

Answer 17

• Provisional sum is an allowance for an element of work within a contract that cannot yet be fully defined.

Question 18

What is the difference between defined and undefined provisional sums?

Answer 18

• 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.
• 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 if required.

Question 19

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

Answer 19

• At Arcadis we have an comp check 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 20

What is NRM2?

Answer 20

• NRM2 provides a set of detailed measurement rules for the preparation of bills of quantities.
• The rules address all aspects production including guidance on the structure and format.

Question 21

What is a Preamble?

Answer 21

• 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.

Question 22

What are method related charges?

Answer 22

• 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.
• For example provision of temporary propping required for a weakened elevation of an existing building.

Question 23

What are time related charges?

Answer 23

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

Question 24

What are fixed charges?

Answer 24

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

Question 25

How do you quantify internal partitions?

Answer 25

- Section 2.7 of NRM1 details the measurement of internal walls and partitions. - Measurement rules highlight the thickness to be stated and measured in m2 on the centre line. No deduction made for openings.

Question 26

What is a schedule 2 quotation?

Answer 26

- A Schedule 2 quotation aims to regulate the prices submitted by the contractor. - The contractor’s quotation must cross reference to the rates and prices in the contract bills. - Therefore, the contractor cannot simply disregard its tender rates and offer inflated prices when quoting for variations.

Question 27

What are the problems with provisional sums to the PQS?

Answer 27

- Contractor may get economies of scale/ cheaper prices PQS would not know about. - Not much incentive for contractor to bring cost down.

Question 28

What are the different methods of measurement for a Cost Estimate?

Answer 28

1) Functional Unit 2) Floor Area 3) Elemental 4) Approximate Quantities 5) Bill of Quantities

Question 29

What is the rule for variations under dayworks in JCT?

Answer 29

If variations cannot be properly measured they can be valued on a ‘daywork’ basis. These can be valued as: Option 1 - Percentage addition (prime cost to which a % is added for OHP) Option 2 - All inclusive rates (quoted at tender and incorporated in the contract documents. Include allowance for OHP)

Question 30

What are the three New Rules of Measurement volumes

Answer 30

NRM_1 Order of cost estimating and cost planning NRM_2 Detailed measurement for building works NRM_3_Building Maintenance Works