FACULTY OF ENGINEERING DEPARTMENT OF CIVIL ENGINEERING ECV 3902 CIVIL ENGINEERING DESIGN PROJECT

SUMMARY OF TALK 10: BILL OF QUANTITIES AND COSTS

Group 1:
No 1 2 3 4 5 LECTURER TEACHING ASSISTANT NAME WONG YAN ZHENG TAN TIAN JEN SYED MOHD IZZUAN BIN TUAN AZAM NURUL HIDAYAT MUSTAFFA SUZANA ISHAK No MATRIC 152561 152768 140685 152835 151943

: PROFESSOR DATO IR. ABANG ABDULLAH B. ABANG ALI : PUAN SITI ZUBAIDAH BT MOHAMAD

ECV 3902 CIVIL ENGINEERING DESIGN PROJECT SESSION REPORT Date Time Venue Speaker Title Audience 13th April 2013 11.00 AM 12.00 PM Bilik Seminar 2, Engineering Faculty, UPM Ir. Zakaria Che Muda Bill Of Quantities And Costs Final Year Undergraduates of Civil Engineering

SPEAKER PROFILE PROFILE ASPECT DETAILS 1. OND in Civil Eng Cambridgeshire College of Arts & Technology. UK, 1978 ACADEMIC QUALIFICATION 2. B. Eng (Hons) in Civil & Structural Eng University of Bradford U.K, 1982 3. M.Sc in Structural Eng UMIST, U.K, 1985 2009 Present WORKING EXPERIENCE 1995 2009 Executive Director [Majid & Assoc Reader [UNITEN]

Sdn. Bhd.] 1993 1995 Senior Engineer [Pengurusan Lantas Bhd] 1985 1993 Lecturer [UPM]

1982 1985 PROFESSIONAL BODIES RESEARCH Tutor [UPM]

SESSION DETAILS TOPIC SESSION DETAILS 1. Method of Cost Study YARDSTRICK OF COST Define the instrument used to carry it out an agreement upon a yardstick with which to measure and compare costs and the items the costs are to be compared and measured Yardstick selected must be one which allows the total costs to be broken down into small convenient sums PURPOSE OF PREPARING AN ESTIMATE 1. To know how much the project costs 2. Prepare banking arrangement 3. Ensure sufficient cash flow during construction

BEFORE A PROJECT IS LAUNCHED

4. Ensure design follows cost plan 5. Ascertain feasibility of a project

1. Get the best offer from tenderers PURPOSE OF TENDER BEING CALLED 2. Best means the best value for the client money in terms of IMPORTANT PARAMENTER WHEN DESIGNING BUDGET Economically, a cost is described as the amount it takes to make a transaction CONCEPT OF COSTS Cost is usually less than or equal to a value, or what your perception say it is worth. You agree to pay for a product only if it has a value to which is more than what you are going to pay. COST THAT CLIENT ARE PAYING FOR IN 1. Cost of a building is a summary of the costs of providing these attributes: Security and safety A purchase is made at a cost A tender is the best way of knowing the cost of a project Cost Time Value

1. The budget or ceiling costs of the project or the financial commitment of the client 2. Whenever a project is planned, the most important factor is the budget we have, so that the project doesnt cost more than we can afford

CONSTRUCTION -

Dry and comfort Assurance of privacy Fire and water resisting Durability Properly lighted and ventilated Investment potential As professionals, we are usually given costs targets in all designs that we undertake. In the private sector our Clients give us a budget when

DESIGNING TO A COST

instructing us to prepare the design. Through experience we know that if the budget is exceeded, the building has to be re-designed or the project will not proceed. Designers very seldom get a free hand; they always design to a certain cost given by the Client. Similarly, in the public sector, the Government has a department known as Standard and Costs which control the expenditure and standards applied to Government buildings. This department within the Prime Ministers department is responsible for the quality and standards for buildings built by the Government. Own office records Similar past projects Published standard analyses Construction journals and professional publications Costs indexes Suppliers and specialist sub-contractors quotations

GOVERNMENT COST STANDARDS

SOURCES OF COSTS RECORDS -

1. What is BQ? BQ means bills of quantities. Quantities of what? Quantities of all the components required to complete a building. So a bill of quantities is a document which contain a complete description of labour, materials and plant required, contained, outlined and depicted in the Architects and Engineers drawings. A BQ is a tool to predict costs, usually consists of itemised list of the quantities of the components that make up a building. It is usually issued to tenderers to price so they can submit comparable prices. BILL OF o Firm bills are those prepared from completed design drawings and QUANTITIES are not re-measured upon completion o provisional bills are prepared on preliminary design drawings and will usually be re-measured upon completion of the works 2. Purpose of BQ To provide a clear and equitable basis upon which a tender is submitted, whether in competition or negotiation To provide a basis in determining the contract value of a project To establish the basis upon which the final cost is calculated To establish a basis for valuing the works as it progressed so contractors can be paid periodically To establish a basis for valuation of variations Bills can be described as either firm or provisional.

3. Preparation of BQ When the drawings are passed on to the quantity surveyor, they are then subjected to a process of taking off. In this process the quantities of the materials in each element are quantified by the quantity surveyor with the guide of a document called the standard method of measurement or SMM. Basically there are two types of SMM, one for building works and one for civil engineering works. The QS usually gets the drawings after both the architect and the engineer completed their drawings Software for measuring quantities of the elements of the building works are available in the market. Software like Masterbill, Billsoft, Rypack, CATO and many others have been developed with the purpose of making BQs preparation quicker compared to the conventional manual process of taking-off. Conventional preparation is a tedious process and usually takes 4 to 6 weeks prior to tender. Now they can be produced in one week. A BQ consists of several pages or several hundred pages of items that make up the building, where the contractors estimator enters his rates and having done so totals up all the costs. 4. Usage of BQ BQ should be used for most contracts, especially where projects are complex and cannot easily be shown in drawings.

In all cases of tendering work where competitive bidding are invited When negotiations are to be made with a possible contractor, a BQ should also be used as it provide a basis for the negotiation.

1. Material Material cost Current cost of materials, usually when a contractor purchases in bulk, the costs will be cheaper, or if a contractor is known to be a good paymaster, the supplier will be willing to reduce the costs Contractor has to allow for wastages in the execution of the work, and plant used in the execution of the work like cranes, backhoes etc 2. Labor COMPONENTS established through experience and observation of the work on how OF UNIT COST much labour input is required for each unit rate. For example how much labour is required to lay 1 sq metre of brick, or 1 cubic metre of concrete, or 1 sq metre of plastering work. They will also establish the number of men required to form a gang of workers for each trade. 3. Overhead and Profit Having obtained the material and labour costs, the estimator must include the overheads and profit element, This covers oncosts such as salaries, office overheads, management cost, in some places common plant cost, usually taken as a percentage of the total cost of the works. TENDER The BQ becomes one of the components of the tender or bid documents The contractor uses an item known as labour constant, usually

DOCUMENTS

that is passed on to the tenderer to price. The other components are the: Form of Tender Form of Contract/ Conditions of Contract (CoC) Items of Preliminaries Specifications Drawings

Each building is unique; no two buildings, even having the same plans, cost the same. This is due to the following: Sites are different Contractors expectancy of profits are different Contractors costs are different, due to several variable reasons, like different sub-contractors, or different suppliers ITEM AFFECTING has to be made for price increase, fluctuationsetc COSTS Ground conditions may differ, as may geo-technical characteristics of the soil Even if the areas are similar, costs differ due to other technical factors such as wall to floor ratio; and the engineering services costs are higher if a building is compact in shape due to ventilation and air conditioning costs. OTHER FACTORS THAT AFFECTS COST There are other factors that affect the cost of a design and these include: Plan shape Building size The buildings were constructed at different times, and due allowance

Perimeter/floor area ratio or wall to floor ratio Circulation space Storey heights Total height of building Column spacing Floor loadings Constructability or buildability Specification

1. Definition 2. Costing or estimating is the activity of pricing work in preparation for making an offer or tender to carry out that work for a sum of money. 3. At the time of making the offer the builder must know that his pricing must be accurate, since the standard contract practice does not allow him to recover additional money from the client as a result of an error in his estimating COSTING 4. Methods of Costing Estimating the cost of a building is done by splitting the building into its components, either by trades or elements. The cost of each component parts is worked out and an estimate of the whole project is be obtained by totaling he costs of all its trades or elemental parts. It has been found out through practice that a schedule can be prepared

setting out the quantities of each type of work in recognised units of measurements. The price for the labour and materials contents in each unit can be worked out. 5. Other costing methods Basic principles Unit method Square area method Approximate quantities method The accuracy of the above methods is not as good as the bills of quantities method. However, these method can be accomplished at a shorter period of time. 6. Basic cost build up Material costs Wastages Labour costs (from labour constants) Plant Costs Overheads and Profits

7. Other methods of costing Unit method: by the number of units of a building, e.g. hospital beds, hotel rooms etc Square area method: this is obtained by multiplying the built-up area by the cost per square metre or square foot of a similar building

KEY MESSAGES 1. Bill of Quantity is an important element in projecting the costing and values of all the components involved in a project such as material cost, labor and profit to the client. 2. There are various method of estimating costing and it is due to the engineers in the projects to apply the suitable method to obtain the best value for the project. CONCLUSION As a conclusion, the session provided by Tuan Haji Basar gives us an essential involvement of engineers in the process of cost estimating and designing the bill of quantities of r a particular projects with other tendering documents. Indeed, engineers plays an important role in developing the content of the bill of quantities and making sure that the client will be able to get the best value for his project.