Quantification & Costing Level 2

Question 1

What can you tell me about order of cost estimates?

Answer 1

• it’s a term used by the RICS under NRM 1
• key purpose is to establish if the proposed project is affordable and if so, to set a realistic cost limit
• it’s based on the employer’s requirements and is the initial phase of the costing process
• usually completed using m2 areas or functional units

Question 2

What can you tell me about cost plans?

Answer 2

• prepared by the cost consultant, provides an estimate of what the actual project cost is likely to be
• it identifies the client’s agreed cost limit and how the money is allocated to the different parts of the project

Question 3

How did you carry out your cost plan in accordance with NRM 1?

Answer 3

• metric measurement
• measured internal walls and partitions in m2 in accordance with Group Element 2.7
• measured wall and floor finishes in m2 in accordance with Group Element 3.1 and 3.2
• measured shopfittings as Nr in accordance with Group Element 4.1

Question 4

How do you compile unit rates?

Answer 4

• considers labour, materials and plant
• for .labour I established an all-in hourly rate which covers wages, overtime, holiday, sick pay, travel, tool allowance
• for materials I considered supplier rate, transportation costs, storage costs & waste allowance
• for plant I considered operating costs (fuel, operator wages) and fixed costs (purchase cost, maintenance, tax / insurance)

Question 5

When would you use a defined provisional sum? What did you use it for in your cost plan?

Answer 5

• where design and specification is unknown but extent of works is known enough for programming and management
• bespoke medicines cabinet

Question 6

When would you use a undefined provisional sum? What did you use it for in your cost plan?

Answer 6

• when design, specification and extent is unknown at date of contract
• investigating a leak, repairing mould to ceiling

Question 7

What is a bill of quantities?

Answer 7

• a document prepared by the cost consultant that provides specific measured quantities of items of work identified by drawings
• issued to tenderers for them to price

Question 8

How did you produce the bill of quantities in accordance with NRM 2?

Answer 8

Consisted of the following in accordance with NRM2:
- prelims
- measured works
- provisional sums for non-measurable works

Question 9

What are the constituents of a cost plan according to NRM 1?

Answer 9

Works cost estimate:
- facilitating works
- building works
- prelims
- OH&P

Project / Design Team estimate:
- consultants fees
- MC pre-construction fees

Risk allowances estimate:
- design development risk
- construction risk
- employer change risk
- employer other risk

Tender inflation estimate

VAT Assessment

Question 10

What is the base cost?

Answer 10

The total of:
- works cost estimate
- project / design team fee estimate

Question 11

What is the cost limit?

Answer 11

Base cost plus risk allowances