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Centre for Modern Architecture Studies in Southeast Asia

Bachelor of Quantity Surveying (Honours)

1. This assignment shall make up 15% weightage of the final marks.

2. This is a group assignment and shall be submitted in groups of 7 - 8 students.

3. Dateline for submission of this Coursework No. 2 is on or before 29th October 2018.

Coursework No. 2 – Preparation of Final Account.

You are appointed as the consulting Quantity Surveyor for a apartment project based on PAM
Form of Contract 2006 (With Quantities). The summary of the Contract Sum is as follows:

Bill No. 1 – Preliminaries RM 4,250,000.00

Bill No. 2 – Building Works RM 62,850,000.00
Bill No. 3 – Local Infrastructure Works RM 4,500,000.00
Bill No. 4 – P.C. and Provisional Sums RM 9,600,000.00
Contract Sum RM 81,200,000.00

Question 1.

The Letter of Award for the above works was issued for RM 81,200,000.00 based on the tender
sum submitted by the Contractor. As you were preparing the contract documents for binding and
signature, you found some errors in the rates for aluminium windows works submitted by the
Contractor, which were very low. Kindly advise the actions that you will take.
(10 marks)

Question 2.

In accordance with clause 30.10 of the contract, the contractor duly submitted his Final
Accounts within 6 months after the issuance of the Certificate of Practical Completion. You are
then required to assess this application and prepare the Final Account for the apartment project
based of the following valuations and adjustments made to the Contract Sum:
(30 marks)

Information provided are as follows:

a. The Architect had granted the Contractor’s first application for extension of time and
approved additional insurance premium amounting to RM 30,000.00 in accordance with
clause 24 of the contract due to the delay in the completion of the works caused by the
Employer’s late decision on the toilet design.

In his second application for extension of time, the Contractor submitted an an

application for extension of time due to exceptionally inclement weather and a loss and
expense claim for RM120,000.00 in his Final Accounts to you. The Architect approved
the extension of time as per Clause 23.8.

b. The following are the nominated sub-contractor’s accounts:

Original P.C. & NSC’s

Provisional Sums final account

i. Lift Services: RM 1,300,000.00 RM 1,600,000.00

Profit @ 2% RM 26,000.00
Attendance as item RM 20,000.00

ii. Air Conditioning Services: RM 2,300,000.00 RM 2,200,000.00

Profit @ 2% RM 46,000.00
Attendance as item RM 40,000.00

iii. Electrical Services: RM 2,700,000.00 RM 2,600,000.00

Profit @ 2% RM 54,000.00
Attendance as item RM 50,000.00

iv. Provisional Sums: Guard House RM 1,000,000.00 RM 1,250,000.00

v. Contingency Sum RM RM 2,064,000.00

RM 9,600,000.00

c. You have to evaluate the following variations for final account:

i. The Contractor had priced RM 130,000.00 for the Contractor All Risk Insurance
policy in the Preliminaries Bills. The Contractor failed to purchase this insurance
when the works commence. The Employer, then, bought and paid for the said
insurance for RM 180,000.00 on behalf of the Contractor, for which the Contractor
agreed. The Employer wants to recover this cost.
(15 marks)

ii. Under the Preliminaries, the Contractor is required to provide a black and white
photocopier machine on site for the Resident Engineer’s use but this item was left
un-priced, i.e. BQ item was left blank in the rate/amount column in the contract
document. During the progress, the Architect instructed the Contractor to provide a
colour photocopier machine costing RM8,000.00 instead of the black and white one
as specified. Contractor submitted a variation claim for RM8,000.00.
(15 marks)

iii. The Contractor had delivered to site all marble floor tiles needed for the lift lobbies
as specified in the contract and construction drawings. However the Architect
decided to use granite floor instead and instructed the Contractor to remove all the
marble tiles from site. The Contractor paid RM 50,000.00 for the marble tiles. The
Contractor returned the marble tiles to the supplier but only managed a refund of RM
30,000.00. The Contractor submitted a claim for the loss of RM 20,000.00 that he
(15 marks)

iv. Mistake was made in the price for excavation through rocks at RM 50 per m3. Item
was not rationalised during contract documentation. However, original quantity in BQ
is 10 m3 but re-measured as-built quantity was 100 m3. The Contractor submitted a
claim for RM 55,000 based on a revised rates of RM 550 per m3 for the total
quantity of 100 m3.
(15 marks)