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

• NRM 1 for Order of Cost Estimating and Elemental Cost Planning of capital building works.
• 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
• Part 2: Measurement rules for OCE’s
• Part 3: Measurement rules for 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

• Provides a consistent basis for the production of OCE’s 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

• Provide an accurate picture of the scope of works and a basis for pricing.
• 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

• Compile all design information necessary including; drawings, specifications, schedules, document registers.
• I would then commence the Take-off & work from the Substructure upwards.
• I would 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?

Answer 15

• 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

• We have a 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

• An explanation of the document (commonly found in contracts & specifications)

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 costs that vary based on the duration of a project/task, 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

- NRM1 details the measurement of internal walls and partitions. - Measured in m2 on the centre line. No deduction made for openings. Thickness to be stated.

Question 26

What is a schedule 2 quotation?

Answer 26

- A formal estimate provided by the contractor for variations, detailing the costs associated with changes to the original contract. - Should align with contract rates.

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

Question 31

On the Ilchester Place final account - talk me through your final negotiation?

Answer 31

I reviewed all of the unagreed variations and advised the contractor on why we disagreed/what I needed further in order to agree these variations. I discussed with the client to understand their position. I then booked in a number of meetings to sit down and discuss the outstanding variations with the contractor and after a few of these sessions we closed them all out and came to an agreement.

Question 32

Can you give me an example of how you have obtained a rate for an item of work?

Answer 32

I can obtain a new rate by breaking an item down into labour, plant, materials, waste & prelims, using market quotations or benchmarks. I then apply OH&P.

Question 33

What are the differences between NRM 1 and NRM 2?

Answer 33

NRM 1 is for early cost planning, while NRM 2 is for detailed measurement and tender pricing.

Question 34

How did you ADVISE the client on the 81AR val?

Answer 34

I advised the client on the correct interim valuation, assessing the contractor’s application against site progress and my own measures and identifying overvaluation. I advised a reduced payment to protect the client from overpaying and to ensure payments reflected actual work completed.