Qtys 310

Compiled by Ibrahim
Auwal Bala.
PRICING OF CONSTRUCTION Department of
WORKS
Quantity Surveying,
Ahmadu Bello
University, Zaria
Note that: this note is compiled from attending Dr P.G Chindo Classes and
also from the given assignment during the lectures
QBPRICING OF CONSTRUCTION WORKS COMPILED BY IBRAHIM AUWAL BALA

Contents
preliminaries ........................................................................................................................................... 2
estimating for typical preliminary items ................................................................................................. 3
fluctuation ............................................................................................................................................... 7
fluctuating price contract ........................................................................................................................ 7
recording and checking fluctuations claims ............................................................................................ 7
payment ................................................................................................................................................... 7
variations ................................................................................................................................................. 8
valuing variations: ................................................................................................................................... 9
pricing measured items ......................................................................................................................... 10
payment certificates .............................................................................................................................. 11
advance payment bond for construction contracts ................................................................................ 11
retention bond ....................................................................................................................................... 11
performance bond for construction ....................................................................................................... 12
interim certificates in construction contracts ........................................................................................ 13
practical completion .............................................................................................................................. 13
certificate of making good defects ........................................................................................................ 15
the purpose of the certificate of making good defects .......................................................................... 15
particular circumstances relating to the certificate of making good defects. ........................................ 15
what are defects? ................................................................................................................................... 16
difficulties surrounding practical completion ....................................................................................... 16
final account .......................................................................................................................................... 17
final certificate for construction contracts ............................................................................................ 18
labour estimating................................................................................................................................... 19
excavation and earthwork ..................................................................................................................... 22
Ibrahim78qs@gmail.com
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PRELIMINARIES
Preliminaries: these are fees, activities, general plant and equipment and labour necessarily undertaken
by the head contractor (main contractor) during construction, refurbishment, or demolition process but
which are not permanent physical part of construction and are not directly associated with individual
permanent physical part or component construction.
Preliminaries items (or their component’s) are of four kids namely: Cost-related, time-related, fixed
charges/ single payment related or a combination of two or more of the others. Those that are cost
related (e.g. water for the works) depend for their value on that of the remainder of the contract sum or
of its labour content. Time related items (e.g. site supervision) depend for their value on the contract
period. Single payment item (e.g. provision of temporary access road) are those whose value is not
affected either by the value of the rest of the contract sum or by the contract period but are carried out
at a particular point in the progress of the works. The cost of some preliminaries items consist of one or
two single payment components and time related one e.g. the provision of tower crane, involving single
payments for erection and dismantling and a weekly hire charge for the intervening period.
Example
Preliminaries Cost Time Fix

related related charges
Water for the work 
Site accommodation 
Telephone  
Management and staff 
Scaffolding  
Crane  
Plants  
Progress photograph  
Temporary access road 
Temporary fence 
Site Supervision 
Site meeting 
Fire protection  
Health Safety  
Attendance
Site security Ibrahim78qs@gmail.com
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Estimating for Typical Preliminary Items
1. Site Supervision: These include the salaries and allowances paid to the site agent or
Engineer and the administrative staff on the site such as cashiers, clerks, time keepers,
Material checkers, store controllers etc. When this staff are sent away from the area in
Which they normally work and this necessitate them having to leave away from their
Usual place of residence for a period of time a subsistence allowance may have to be
Added to cover the additional expenses they will incur e.g.
Site agent
Salary / month = 10,000
Housing allowance = 8,000
Transport allowance = 2,500
20,500 = 20,500
Cashier
Housing allowance = 4,000
Transport = 2,000
11,000 = 11,000
Clerk
Housing = 1,600
Transport = 1,500
6,600 = 6,600
Store controller
Housing = 1,600
Transport = 1,500
6,600 = 6,600
Messenger
Housing = 800
Transport = 500
2,300 = 2,300
47,000/month
Contract duration 12 month
Add 1 month before project and
Add 6 months for defect liability period
Total month 19
19 months x 47,000 = 893,000
Add 10% for insurance and I.T.F = 89,300
982,300
Add 25% for profit and overhead = 245,575
1,227,875
(2) Site Accommodation

The contractor is usually expected to provide and maintain temporary site accommodation for
(i) Supervising consultant on site
(ii) Site agent and site staff
(iii) Hut for workmen
(iv) Storage, shed for materials, tools etc.
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Pricing for these must cover the cost of:
a) Initial construction of accommodation

b) Removal on completion and making good ground disturbed
c) Maintenance of accommodation throughout duration of the project
d) Furniture including ventilation and air conditioning
e) Overhead and profit from these estimator must remove the resale value of items are still
useable at the end of the projects e.g.
Site office
Initial construction cost
Architect office 7.5m2

Engineer office 7.5m2
Quantity Surveying 7.5m2
Site agent 7.5m2
General office 10m2
Contractor’s room 12m2
Rest room 2.5m2
54.5m2
Circulation space 10% 5.5m2
60m2 60m2
60m2 at 9,000/m2 = 540,000

Less resale value of items (about 27%) = 145,800 = 394,200
Demolish and cart away from site including making good @ 500/m2 x 60m2 = 30,000
424,200
(3) Mechanical Plant

This include all mechanical plant not allocated to unit rate such as cranes, lift, Dumpers, hoist, tractor,
generating set, drills, forklift etc. The contractor is expected to allow for this items whether they are
purchased specifically for the project or they are already owned by the firm or they are to be hired for
the period they are required on the project.
The usual thing is to allow for
a. cost of transporting plant to site
b. Hire rate for the period plant is on site
c. Cost of maintenance on site
d. Profit and overhead
(4) Tools
This include items such as shovels, portable drills, wheel barrows, batch boxes, gauge
Etc. Smaller tools such as hammer, trowel, plumb level, plumb lines, paint brushes etc.
That are associated with a particular trade are not aloe for, here. They are usually taken
Care of in the tool allowance included in the all in-labour rate for such fields. If the
Project is large enough to use up small tools such as paint brushes, sand papers etc.
Then the cost of such are included in the unit rate for the items that required their use
In pricing consideration is given to the cost of purchasing of the tools less their resale
Value.
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(5) Scaffolding
The total height and the type of construction determined the amount and type of
Scaffolding required for a project, the contractor may purchase scaffolding for use in
The work. Whatever they may be, in pricing consideration is usually given to the
Following.
(a) Hire rate for the duration of the project
(b) Labour cost for erecting scaffolding on site
(c) Labour cost for adopting scaffolding for special uses
(d) Labour cost for dismantling scaffolding at the end of the project
(e) Transportation cost for bringing to site and removing from site all scaffolding
(f) Profit and overhead
(7) Water for the Work

Water required for the project is provided in either of the two ways supply by water
Tankers if the site is far from a source or pipe bone water. In pricing consideration is given to the
following:
If the site is far from the source: Cost of water supply by water tanker. It may be
Necessary to write out an approximate estimate of the quantity of water required for the
Project from previous project, certain allowance can be made:-
For concrete work 480Litres/m3

For Block work 350 litres/m2
Rendering 30 litres/m2
Workman hut 2000/day
Site accommodation 20,000/day
Based on these allowances total quantity of water can be estimated for the whole project
And priced at prevailing water tanker rate for that areas.
Cost of Temporary Storage:
This include
(a) Cost of labour and materials in constructing surface tank, overhead tank, pipe work
And its pumps.
(b) Cost of cleaning and maintaining tanks, water pipes and water pumps.
(c) Cost of removal of water storage and temporary pipe work and making good ground
Disturbed
(d) Overheads and profits
Note that: Site accommodation and work man hut a lump sum is provided, this because the use of water there,
is depend on number of the occupant and the types of sanitary appliances that are inside.
But, for a Pipe Bone Water: (that is if the water will be supply by the water board)
Pricing will include
(i) Cost of water connection by water board
(ii) Cost of labour and material for laying pipes
(iii) (iii)Cost of temporary storage
(iv) Water rate are usually charged as flat rate per plot. Therefore no need to estimate
Approximately
(v) Cost of disconnection, removal of pipe and making good defect
(vi) Overhead and profit
(8) Lighting and Power for Work

As in the case of water, provision of power is effected in either of two ways
(a) Power generating set: If site is far from existing mains, pricing will include
(i) Cost of hiring generating set for the duration of the project.
(ii) Cost of cables, wiring and light fittings
(iii) (iii)Cost of running and maintaining generating set for duration of project
(iv) Cost of labour and materials for constructing temporary sheds for generators
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(9) Attendance
Attendance: is a percentage set aside usually 2.5% to 5% of pc sum for the main contractor to charge
the client as result of the sub-contractor using the main contractor plant and/or equipment.
Special attendance: is when the equipment or plant that is required by the sub-contractor is not needed
by the main contractor and he was ask to provide those equipment for the sub-contractor to use on site.
CONTINGENCY SUM:
This is a special kind of provisional sum that is set aside to meet or offset cost of undefined work, which
cannot be foreseen before construction begins and which may not arise at all. A contingency sum has
no real relation therefore to the contract works, and in practice merely serves to reduce the total cost of
any extra or more expensive work than the originally envisaged.
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EXTERNAL WORK
These also refer to as (non-structures). They are minor construction work necessary for and related to
the completion of a site but excluded from and not associated with a particular structure. Example site
drainage works, landscaping, sewage connections/soak away pit and septic tanks, inspection chambers
etc.
FLUCTUATION
This refer to increases and decreases in the prices of materials, labour, and statutory charges relating to
a project.
FLUCTUATING PRICE CONTRACT
These are contracts containing provisions for reimbursement of changes in a wide range of labour costs
and material prices in addition to statutory costs.
The JCT form (i.e. joint contract tribunal form of contract) contains three different provisions, any one
of which may be incorporated in a contract by deleting the other two clause references in the appendix
to the conditions of the contract.
The provision are:
a) Adjustment of the contract sum limited to fluctuations in statutory contributions, levies and
taxes, as specified in clause 38 of JCT 98.
b) Adjustment of the contract sum in respect of fluctuations in labour and material costs and
statutory contributions, levies and taxes as specified in clause 39of JCT 98.
c) Adjustment of the contract sum in respect to fluctuations as in (b) above by the use of price
adjustment formulae as specified in the clause 40 of JCT 98.
RECORDING AND CHECKING FLUCTUATIONS CLAIMS
It is of the interest of the contractor and surveyor that satisfactory system of recording and submitting
details of fluctuations claims be agreed at the start of the contract. This means that the system employed
should facilitate the checking of the details from original invoices, wages sheet etc. for the purpose of
due payment without delay, the contractor should present claims at regular intervals, say, weekly or
fortnightly. All supporting document should be provided for the surveyor’s inspection when checking
the claim, and it’s useful to have the signature of the clerk of works, if there is one on time sheet to
certify the correctness of the names and hours shown. Alternatively, if a standard claim form is used to
record the data taken from the time sheets, provisions may be made on the form of the certification of
the correctness of the data.
Figure: 2 below shows a summary of part of the materials claims relating to an arbitrary contract. Here,
it assumed that the contractor has submitted all the necessary document to the surveyor for checking
and verification of the main claim. The claim was prepared based on the provision of clause 39 of JCT-
98. It was observed that the higher price of invoice number DE1009 was due to the purchase of small-
quantity and not increase in the market price. A smart quantity surveyor will reduce the price to the rate
appropriate to the full loads.
PAYMENT
Payment of amount of fluctuation claim recoverable is required to be made in the next interim certificate
after ascertaining from time to time, the amounts due. Such amounts are not subject to retention. The
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total amount of fluctuations will also be included in the final account as an addition or reduction as the
case may be.
Example of material fluctuation claim

Material: cement
Basic price: N 36,000
INVOICE DATE QUANTITY INVOICE DECREASE INCREASE TOTAL
SUPPLIER INCREASED
NUMBER PRICE
Esthos Nig Ltd DE901 10/8/09 20 tonnes 36,500 - 500 10,000
Esthos Nig Ltd DE904 16/8/09 15 tonnes 37,000 - 1,000 15,000
Mataho ventures Ltd FT211 29/8/09 10 tonnes 37,000 - 1,000 10,000

Mataho ventures Ltd FT215 3/9/09 15 tonnes 37,000 - 1,000 15,000
Net total claims to summary 110500
Fluctuations are not calculated for the following

1. Credit for demolition materials.
2. Unfixed materials on site.
3. Plant paid for on a day work basis (labour is reimbursed at the rate current when the work is
carried out)
4. Claims (normally calculated at full value).
5. A non-adjustable element which is deducted from the increased costs payable under the local
authorities editions of JCT80. The deduction, which is normally 10%, is made because it
could be argued that contractors should not receive an addition on overheads and profit.
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VARIATIONS
Definition and origin of variations: The definition of variation in JCT 98 clause 13.1 is a wide one,
applying both the content of the work and the method of doing it. The basic definition includes any
alterations or modification of the design, the quality or quantity of works. This also includes additions
omissions or subtractions.
Variation may arise in any of the following situations (references are the JCT form):
a) When the architect needs or wishes to vary the design or the specification.
b) When a discrepancy is discover between any two or more of the contract documents.
(For example where the architect show a Hollow slab in his design and the structural drawing
show reinforce concrete slab. At this point the QS is expected to contact the architect for the
details, and whatever he was told by the architect he will used it, believing that the architect
will contact the engineer before replaying him. And in the event of doing the project it was
realised that is a reinforced concrete slab.)
c) When a discrepancy is discovered between any statutory requirement and any of the contract
documents.
(For example, where the design shows that, all foul and waste appliances should be connected
to soak away and septic tank, and the law said it should be connected to public sewer.)
d) When an error or omission from the contract bills is discovered. (For- example, where an item
is found omitted in the contract bill and in the event of checking, it was found that the cost of it
is included in the contract sum. Such an error can be referred to as an omission.)
e) When the discrepancy of provisional sum for defined work in the contract bills does not provide
the information required by general rule 10.3 of SMM7.
[A Provisional Sum for defined work is a sum provided for work which is not completely designed but
for which the Following information shall be provided:
a) The nature and construction of the work.
b) A statement of how and where the work is fixed to the building and what other work is to be fixed
thereto.
c) A quantity or quantities which indicate the scope and extent of the work.
d) Any specific limitations and the like identified in Section A36.
1.12.4 Where Provisional Sums are given for defined work, the Contractor will be deemed to have made
due allowance in
Programming, planning and pricing preliminaries. Any such allowance will only be subject to
adjustment in those
Circumstances where a variation in respect of other work measured in detail in accordance with the
rules, would give rise to adjustment. BESSM4]
VALUING VARIATIONS:
There are several ways of valuing variations, the choice in a particular case being, that which is
appropriate to the circumstances. They are:
a) By the inclusion in the variation accounts of a lump sum in accordance with a quotation
submitted by the contractor and accepted by the architect.
b) By pricing measured items in the variation accounts.
c) By ascertaining the total prime cost of additional work and applying appropriate percentage
additions.
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PRICING MEASURED ITEMS:
The JCT form in clause 13 is explicit about the way measured items (omission as well addition) should
be priced.
i. The prices (particular, unit rates) in the bills or schedule of rates as the case may be, are to be
used. This is subject to the provision that the character of the work and the condition of its
execution are similar to that in the project as originally envisage.
ii. Where the items bear no relationship or comparison at all with items in the contract bills, or
may not be carried out under similar condition to apparently similar items in the bills. In these
cases, a fair valuation is to be made. This means that are unit rate may have to be built up from
the prime cost of the necessary materials and using labour constants valued at an all-in-labour
rate and with any appropriate allowances for plant and with additions for overheads and profit.
iii. Were the items are not exactly the same as but bear a fairly close resemblance to items in the
bills or schedule of rate .here, it should be priced on the basis of the prices of the comparable
items. This means that the pricing of such items is to be done as far as possible at the same
general level of prices as contained in the contract documents.
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PAYMENT CERTIFICATES
Advance payment bond for construction contracts
If the client agrees to make an advance payment (sometimes referred to as a down payment) to a supplier
or contractor, a bond may be required to secure the payment against default by the contractor. This is
referred to as an advance payment bond (APB), advance payment guarantee or advance stage payment.
Typically on a construction project an advanced payment bond will be required by the client if the
contractor requests advance payment to help them meet significant start up or procurement costs that
may have to be incurred before construction begins. For example where the contractor has had to
purchase high-value plant, equipment or materials specifically for the project. The bond will protect the
client in the event that the contractor fails to fulfil its contractual obligations, for example if the
contractor becomes insolvent.
An advance payment bond will normally be an on-demand bond, meaning that the bondsman pays the
amount of money set out in the bond immediately on demand, without any preconditions having to be
met. This is as opposed to a conditional bond (or default bond) where the bondsman is only liable if it
has been established that there has been a breach of contract.
Advance payment bonds must be very carefully drafted to set out the circumstances for payment and to
make clear that they are on-demand bonds.
Retention bond
Retention is a percentage (often 5%) of the amount certified as due to the contractor on an interim
certificate that is retained by the client. The purpose of retention is to ensure the contractor properly
completes the works required under the contract. Half of the amount retained is released on certification
of practical completion and the remainder is released upon certification of making good defects.
Retention due to subcontractors may in turn be held by the main contractor and so on down through the
contractual chain.
The recovery of retention is often a difficult area for parties in the contractual chain and cash flow
problems frequently arise resulting from non-payment. In theory, this should be prevented by the
Housing Grants Construction and Regeneration Act which disallows ‘pay when paid’ clauses, however,
retention is commonly not released on time or in accordance with the contract. For subcontractors in
particular, the release of retention may rely on circumstances outside of their contract or their control,
for example, defects being remedied under the main contract by other parties.
Retention bonds are way of avoiding problems associated with retention recovery. Amounts that would
otherwise have been held as retention are instead paid, with a bond being provided to secure the amount.
Similar to retention, the bond’s value will usually reduce after the certification of practical completion.
Only if practical completion is not achieved by the subcontractor or if they prevent a certificate of
making good defects from being issued will the retention bond take effect. The contractor is then able
to ‘call’ on the retention bond.
A subcontractor is usually allowed a fixed period of time to rectify any defects, and this is stipulated by
the retention bond. Should they fail to rectify the defect, the retention bond can be called on by the
contractor and the surety must cover the remedial costs, before then pursuing the subcontractor.
Whilst subcontractors must pay the surety’s premiums, the benefit to them is that they do not have to
chase retention monies post-completion, and no retention monies will be withheld. This cash flow
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security is often seen as worth the cost of the premium. Similarly, retention bonds are advantageous
to contractors in improving the cash flow and financial stability of the subcontractor, making them less
likely to default on the works.
Retention bonds include a fixed expiry date, making it clear when the subcontractor is released from
its obligations.
Retention bonds may also be used as an alternative to retention between the employer and the main
contractor.
Performance bond for construction
A performance bond is commonly used in the construction industry as a means of insuring a client
against the risk of a contractor failing to fulfil contractual obligations to the client. Performance bonds
can also be required from other parties to a construction contract.
Whether or not a performance bond is required will depend, in the main, on the perceived financial
strength of the party bidding to win a contract, as the most common concern relates to a contractor
becoming insolvent before completing the contract. Where this occurs the bond provides compensation
guaranteed by a third party up to the amount of the performance bond. Bonds are typically set at 10%
of the contract value. This compensation can enable the client to overcome difficulties that have been
caused by non-performance of the contractor, such as, for example, finding a new contractor to complete
the works.
Bonds can be 'on demand' or 'conditional', with conditional bonds requiring that the client provides
evidence that the contractor has not performed their obligations under the contract and that they have
suffered a loss as a consequence.
The obligation for the contractor to provide the client with a bond is set out in tender documents. The
choice of bondsman and terms in regard to cost falls entirely to the contractor who secures it prior to
the start of work. From a client viewpoint it is wise to stipulate that the bond stays in place until the end
of the defects liability period when the final certificate is issued.
Bonds can be issued either by an insurance company or by a bank, and the cost of the bond is usually
borne by the contractor (albeit, this is likely to be reflected in the contractor's tender price). The cost of
the bond gives the client a good guide as to the credit worthiness and reputation of the contractor in the
bond market, which will view each contractor differently in respect of its history, management and
financial health.
Strictly speaking the bond is a guarantee and as such is a contingent liability in regard to the contractor's
balance sheet. A smaller contractor might face a limit on how many bonds it can take out.
The contractor sends the bond document to the beneficiary i.e. the client who holds it until the end of
the defects liability period.
The bond is related to the contract conditions and the courts take a view that the bondsman has little
protection against adverse risk. So it is wise to seek the bondsman's consent before acting outside the
contract conditions, for example by paying the contractors in advance of work undertaken to ease its
cash flow difficulties. Such conduct could jeopardise a subsequent claim on the bond.
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Interim certificates in construction contracts
Interim certificates provide a mechanism for the client to make payments to the contractor before the
works are complete. The Housing Grants, Construction and Regeneration Act, states that a party to a
construction contract in excess of 45 days is entitled to interim or stage payments.
Interim payments can be agreed in advance and paid at particular milestones, but they are more
commonly regular payments the value of which is based on the value of work that has been completed
(this is the actual value of the work completed, taking into account variations etc.).
The amount of these payments is entered onto an interim certificate (generally valued by the cost
consultant, perhaps having taken advice from the lead designer) and the client must honour the
certificate within the period stipulated by the contract.
If the client intends to pay a different amount from that shown on the interim certificate, then they must
give notice to the contractor of the amount they intend to pay and the basis for its calculation (pay less
notice - see Housing Grants, Construction and Regeneration Act for more information).
The value of interim certificates is the value of the work completed, less any amounts already paid, less
retention. Half of this retention will be released on certification of practical completion and the other
half upon issue of the certificate of making good defects.
Interim certificates should make clear the amount of retention and a statement should also be prepared
showing retention for nominated sub-contractors if there are any. The contract may require that retention
is kept in a separate bank account and that this is certified. In this case, the client will generally keep
any interest paid on the account.
There may be particular provision to include the value of particularly costly materials that the contractor
has not yet delivered to site. This allows the contractor to order items in good time, without incurring
unnecessary long-term expense, but does put the client at some risk if the contractor becomes insolvent.
On design and build projects, the amounts certified as payable may be based on a contract sum analysis.
The contract conditions provide that the contract administrator must issue an interim certificate within
five [calendar] days of the due date whether or not the contractor has issued an interim [payment]
application. This five [calendar] day period is set by statute in the Housing Grants Construction
Regeneration Act 1996 as amended by the Local Democracy, Economic Development and Construction
Act 2009. Being set by statute, the time period cannot be changed.
Practical completion
The contract administrator certifies practical completion when all the works described in the contract
have been carried out. Practical completion is referred to as 'substantial completion' on some forms of
contract.
Certifying practical completion has the effect of:
 Releasing half of the retention (an amount retained from payments due to the contractor to
ensure that they complete the works).
 Ending the contractor's liability for liquidated damages (damages that become payable to the
client in the event that there is a breach of contract by the contractor - generally by failing to
complete the works by the completion date).
 Signifying the beginning of the defects liability period.
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Documentation that should be issued to the client on certification of practical completion might
include:
 A draft building owner's manual.

 A building user's guide.
 The health and safety file.
 The building log book.
 A construction stage report.
Once the certificate of practical completion has been issued, the client takes possession of the works for
occupation.
There is no absolute definition of practical completion, and case law is very complex. There is some
debate about when practical completion can be certified and whether it can be certified where there are
very minor (de minimis) items 'not affecting beneficial occupancy' that remain incomplete.
It is important to note however, that the defects liability period, which follows certification of practical
completion, is not a chance to correct problems apparent at practical completion, it is the period during
which the contractor may be recalled to rectify defects which appear following practical completion. If
there are defects apparent before practical completion, then these should be rectified before a certificate
of practical completion is issued.
This can put the contract administrator in a difficult position, as both the contractor and the client may
be keen to issue the certificate (so the building can be handed over) and yet defects (more than a de
minimis) are still apparent in the works. Issuing the certificate could render the contract administrator
liable for problems that this causes, for example in the calculation of liquidated damages, the position
in relation to performance bonds and the release of retention when it is not certain that the works will
be completed.
If the contract administrator is put under pressure to certify practical completion even though the works
are not complete, they might consider informing the client in writing of the potential problems of doing
so, obtaining written consent from the client to certify practical completion and obtaining agreement
from the contractor that they will complete the works and rectify any defects. If the contract
administrator is not confident about the potential problems, they may advise the client to seek legal
advice.
On construction management contracts, a separate certificate of practical completion must be issued for
each trade contract. Once all trade contracts (or all trade contracts for a particular section of the works)
have been issued, the construction manager issues a certificate or project completion (or sectional
completion). The same is true on management contracts, where each works contract must be certified
individually.
Practical completion is not a term recognised in some recently developed contracts such as PPC 2000
and other partnering contracts which simply refer to 'completion'. This can put the contract administrator
in a difficult position as to when the project becomes 'useable' by the client. If the project reaches a
stage when the intended use by the client (either immediate use, such as installing furniture or fitting-
out, or actual occupation by the end users) is possible, safely and without affecting warranties, then the
project may be deemed 'complete'. The size and extent of the list of outstanding works and defects
requiring rectification will be the measure on which the contract administrator judges whether
completion has actually been achieved.
If practical completion is not certified by the most recently agreed completion date, then the contractor
may be liable to pay liquidated and ascertained damages to the client. These are pre-determined
damages set at the time that the contract is entered into, based on a calculation of the actual loss that the
14
client is likely to incur if the contractor fails to meet the completion date. Some contracts require that a
certificate of non-completion is issued as a pre-requisite to deducting liquidated and ascertained
damages.
NB Sectional completion refers to a provision within construction contracts allowing different

completion dates for different sections of the works. This is common on large projects that are
completed in sections, allowing the client to take possession of the completed parts whilst construction
continues on others. Sectional completion differs from partial possession in that it is pre-planned and
defined in the contract documents.
Certificate of making good defects
The certificate of making good defects is now referred to as the 'certificate of making good' in the new
JCT '16 suite of contracts.
The purpose of the certificate of making good defects
Once practical completion has been certified, the defects liability period begins (now called the
'rectification period' in Joint Contracts Tribunal (JCT) contracts). Typically, the defects liability period
is six to twelve months.
During this period, the client reports any defects that arise in the works to the contract administrator
who decides whether they are in fact defects (i.e. works that are not in accordance with the contract), or
whether they are maintenance issues. If the contract administrator considers that they are defects, then
they may issue instructions to the contractor to make good the defects within a reasonable time.
At the end of the defects liability period, the contract administrator prepares a schedule of defects,
listing those defects that have not yet been rectified, and agrees with the contractor the date by which
they will be rectified. Defects must be made good within a 'reasonable time', and at the contractor's cost.
NB. It is the contractor's responsibility to identify and rectify defects, not the client's or the contract
administrator's, so if they do bring defects to the contractor's notice, they should make clear that this is
not a comprehensive list of all defects.
When the contract administrator considers that all items on the schedule of defects have been made
good, they issue a certificate of making good defects. This has the effect of releasing the remainder of
any retention and brings about issuing of the final certificate.
Particular circumstances relating to the certificate of making good defects.
If the contractor, having been given the opportunity to rectify defects, fails to do so within a reasonable
time, they may be in breach of contract. In this situation others may be employed to rectify the defects,
and the cost of such works deducted from the contractor's retention.
In particular circumstances where the cost of rectifying a defect is disproportionate relative to the impact
of the defect on the works, the client may agree to have the certificate of making good defects issued
anyway, but only on agreement that the contract sum is reduced by an amount that reflects the reduction
in the value of the works as a consequence of the defect.
If a defect becomes apparent after the certificate of making good defects has been issued, but before the
final certificate has been issued, the contractor may be given the opportunity to rectify the defect
anyway, but the final certificate should not be issued until this has been done.
15
On construction management projects and management contract projects, a separate certificate of
practical completion is issued for each trade contract (or works contract). This means that defects
liability periods may be at different times for each trade contract (or works contract).
Where sectional completion (or phased completion) occurs, a separate certificate of making good
defects may be issued for each section and then for the whole of the works. This may also be the case
where the client arranges for partial possession of part of the works.
NB The Housing Grants Construction and Regeneration Act disallows 'pay when paid' clauses, this
means that it is no longer acceptable for a contractor to withhold the release of retention to a
subcontractor simply because they themselves have not had their retention released.
What are defects?
Defects are works that have not been carried out in accordance with the contract. Defects which are
discoverable before the end of the defects liability period are described as 'patent defects'. Defects which
could not have been discovered during the defects liability period are known as 'latent defects' (for
example, a problem with foundations which have been covered up and does not become apparent until
several years later when settlement causes cracks to appear).
Patent defects should be rectified as an ongoing process, and certainly, before the certificate of practical
completion is issued, then before the certificate of making good defects is issued and ultimately before
the final certificate is issued.
Latent defects can result in liability for damages for up to 15 years. The Limitation Act 1980 governs
time limits for bringing different types of legal claims.
Latent defects can be highly problematic and very expensive to repair. If there is a suspicion of latent
defects, it is sensible to have investigations carried out before the end of the defects liability period.
Difficulties surrounding practical completion
It is important to note that the defects liability period is not a chance to correct problems apparent at
practical completion, it is a period during which the contractor may be recalled to rectify defects which
appear. If there are defects apparent before practical completion, then these should be rectified before
a certificate of practical completion is issued.
This can put the contract administrator in a difficult position, where both the contractor and the client
are keen to issue the certificate (so that the building can be handed over) and yet defects (more than a
de minimis) are apparent in the works. Issuing the certificate however could render the contract
administrator liable for problems that this causes, for example in the calculation of liquidated damages.
If the contract administrator is pressured to certify practical completion even though the works are not
complete, they might consider informing the client in writing of the potential problems of doing so,
obtaining written consent from the client to certify practical completion and obtaining agreement from
the contractor that they will complete the works and rectify any defects. It might also be possible to
prepare a qualified practical completion certificate however care must be taken to use the correct
wording. If the contract administrator is not confident about the potential problems surrounding
practical completion, they might advise the client to seek legal advice.
16
Final account
Construction contracts generally provide some mechanism for the final payment to be made to the
contractor on completion of the works described in the contract. Generally this payment will be made
at the end of the defects liability period providing that all patent defects have been rectified.
Preparing the final account is the process of calculating and agreeing any adjustments to the contract
sum (the amount originally set out in the contract to be paid to the contractor for completion of the
works) so that the amount of the final payment can be determined. The amount of the final payment is
then set out in the final certificate (or final statement). It is possible for the final certificate to show that
money is owed to the client, rather than due to the contractor.
Construction contracts may not specifically require the preparation of a final account, although they
generally do require the contractor to provide all documents necessary for the adjustment of the contract
sum within a specified time, and set out the time scale for and consequences of issuing the final
certificate.
The contract sum may need to be adjusted for a number of reasons, including:
 Variations.
 Fluctuations.
 Prime cost sums.
 Provisional sums.
 Payments to nominated sub-contractors or nominated suppliers.
 Statutory fees.
 Payments relating to the opening-up and testing of the works.
 Loss and expense.
 Liquidated and ascertained damages.
 Contra claims imposed as a result of the contractor's operations (such as a third-party claim
resulting from contractor negligence or contractual breach, for example, flooding a neighbour's
property).
 The release of any remaining retention.
Agreeing the final account can be a complicated, time consuming and adversarial process, often
resulting in disputes. The process can be made easier if adjustments to the contract sum are agreed as
the project progresses rather than saving them up for the end. It is also beneficial if the client's quantity
surveyor and the contractor's quantity surveyor work together on drafts of the final account before
agreement is sought. It is preferable that a draft copy of the final account is signed off by the contractor
as an 'in full and final settlement' prior to issue.
Agreement of the final account will allow the contract administrator to issue the final certificate. The
final certificate is conclusive that all patent defects have been remedied, all adjustments to the contract
sum have been agreed and all claims settled. Latent defects may still become apparent after completion
of the contract and these may give rise to action for damages, for breach of contract or negligence.
Where proceedings have begun in relation to a dispute, the conclusiveness of the final certificate is
subject to the findings of those proceedings.
In addition, the final certificate itself can be disputed (usually within 28 days). Adjudication, arbitration
or other dispute resolution procedures may then be necessary to resolve the dispute. The final certificate
is then only conclusive in relation to matters that are not disputed.
17
If the client intends to pay a different amount from that shown on the certificate, they must give notice
to the contractor of the amount they intend to pay and the basis for its calculation (a 'pay less notice' -
see Housing Grants, Construction and Regeneration Act for more information).
Final certificate for construction contracts
The final certificate is certification by the contract administrator that a construction contract has been
fully completed. It is issued at the end of the defects liability period and has the effect of releasing all
remaining money due to the contractor, including any remaining retention.
The value of the final certificate will be based on the final account agreed by the cost consultant and
the contractor. This means that all patent defects must have been remedied, all adjustments to the
contract sum must have been agreed and all claims settled.
Where proceedings have been commenced in relation to a dispute, the conclusiveness of the final
certificate is subject to the findings of those proceedings. In addition, the final certificate itself can be
disputed (usually within 28 days). Adjudication, arbitration or other proceedings may then be necessary
to resolve the dispute. The final certificate is then only conclusive in relation to matters that are not
disputed.
If the client intends to pay a different amount from that shown on the certificate, then they must give
notice to the contractor of the amount they intend to pay and the basis for its calculation (pay less notice
- see Housing Grants, Construction and Regeneration Act for more information).
Alternative procedures
In design and build contracts (such as Joint Contracts Tribunal (JCT) DB 16) the final certificate may
be described as the final statement.
In construction management contracts, where there are a number of trade contracts, final statements are
issued for each trade contract. Once final statements have been issued for each trade contract, the
construction manager co-ordinates preparation of the final report and issues the final certificate for the
whole project.
There is a similar procedure on management contracts, where final certificates are issued by the
management contractor for each individual works contract, and then once all works contracts have
received a final certificate, the management contractor provides the client's contract administrator (or
cost consultant) with information allowing them to calculate the prime cost (the cost of the works
contracts) and a final certificate is issued to the management contractor.
18
LABOUR ESTIMATING
Data for labour estimating

Labour item – minimum working hour per day is 8 hrs including one hour break. This is known as
normal time. When work is performed outside normal working hours it is referred to as overtime.
Overtime are usually more expensive than normal time.
There are direct labour cost and in direct labour cost.
Direct labour cost are principally labour take home pay etc.
In direct labour cost are cost that meet statutory requirement such as leave payment etc.
Travel time is the time it takes the labourer from the contractor’s yard to site.
On a normal working time, any overtime is taken as time and quarter (11/4hr) of normal working hr.
Overtime on Saturday also takes 11/4hr for each of a normal hour. Overtime on Sunday’s takes 11/4 for
each of a normal hr.
Public holidays gazetted and un-gazetted attract 2hrs for every hr.
Loss of break attract 11/4hr or accumulated and takes off for another day.
All these are function of a daily wage travel time.
0-8km no pay
1
8-16km /4hr
1
16-24km /2hr
3
24-32km /4hr
32-40km 1hr
Above first 40km – divide the distance in 8km interval 1/4 hr. for every 8km.
Above first 40km attract 1/4hr (to and fro) in 8km intervals.
We assume direct cost for skill labour is N 3,000.00 and for unskilled is N 1,500.00
Example
A Contract site is 55km away from the contractor’s yard. Workers are transported by the contractor’s
vehicle which is used on site and cost N800.00 per hour including the pay of the driver and his helper.
As the contractor is working behind schedule, all workers have agreed to put on 8 hours overtime on
Saturday and 4 hours overtime on Sunday. The site requires 10 tradesmen and 40 labourers. Calculate
the total cost per week of tradesmen and the labourers given that average speed of the vehicle is given
as 60km/hr. and 2 trips are made daily to and fro the site.
Solution
19
Trade men Labourers
(N) (N)
Weekly wages
.Skilled labour = 5days x 3,000.00 15,000.00
Unskilled labour = 5days x 1,500.00 7,500.00
Indirect cost 36%

5,400.00
Skill labour = 15,000 x 36%
2,700.00
Unskilled labour = 7,500 x 36%
Overtime:
On Saturday
Skilled labour : 8hrs x (11/4)hrs x 3,000 3,750.00

8hrs
Unskilled labour : 8hrs x (11/4)hrs x 1,500 1,875.00

8hrs
On Sunday
Skilled labour : 4hrs x (11/2)hrs x 3,000 4,500.00
8hrs
Unskilled labour : 4hrs x (11/2)hrs x 1,500 2,250.00

8hrs
Travel time
For the first 40km = 1hr
Additional 8km = 1/4hr
Remaining 7km = 1/4hr
Return time 15km = 1/2hr
Total time = 1+1/4+1/4+1/2 = 2hrs
Skilled labour: 2hrs x 7days x 3000.00

8hrs 5,250.00
Unskilled labour: 2hrs x 7days x 1500.00 2,625.00

8hrs
Travel expenses
Total distance to & fro the site = 2x55km = 110km
Time = distance = 110km = 1.83hrs

speed 60kmh-1
Total time for two trip = 1.83hrs x 2 = 3.66hrs

20
Cost(50 workers) = N800hr-1 x 3.66hrs = 2,928.00
Cost/head = 2,928 = 58.56 x 7days = 409.92

50 409.92 409.92
Total costs per head 34,309.92 17,359.92
Cost of 10 trade men = 34,309.92 x 10 = 343,099.20
Cost of 40 labourers = 17,359.92 x 40 = 694,396.80
Total costs of trade men & labourer per week = 343,099.20

694,396.80
N 1,037,496.00
21
EXCAVATION AND EARTHWORK
Consider the following in building up rates for excavation.

1. The type of exaction e.g. top soil, pit exaction, trench exaction etc.
2. Volume of exaction
3. Nature of excavation (nature of soil)
4. Distance of tips (distance to place excavated materials).
BULKING of VARIOUS SOIL
1. Sand =12.5% (which means the sand will increase in volume by 12.5%)
2. Gravel = 10%
3. Clay and Chalk = 331/3%
4. Rock = 50%
LABOUR CONSTANT MULTIPLIERS
Difficulty involved in digging different types of soil
1. Assume normal sand has = 1
2. Sand and gravel = 3/4 which means it is easier to dig the normal sand
3. Stiff clay = 3/2
4. Soft rock = 3
5. Hard rock = 8
LABOUR OUTPUT
1. Excavation = 2.5m3 per labourer/day(this means one labourer can dig 2.5m3/day)
2. Spreading and levelling = 4.5m3/labourer per day.
3. Wheeling = 8m3/labourer per day.
Example
Excavate to remove vegetable top soil average depth 150mm (assume normal sand)
Solution
Consider a gang of 12 labourer and one supervisor.
Costs of 12 labourer at N 1,500 = 18,000.00
Add 5% for small tools = 900.00
Cost of one supervisor at N 3,00.00 = 3,000.00
Total cost of a gang 21,100.00
Total output per day = 12 x 2.5 = 30m3
Cost/m3 = 21,100.00 = N730.00
30m3
Cost per square metre = cost/m3 x m = N730/m3 x 0.15m = N109.5/m2

Add 25% for profit and overhead = 27.38
Unit rate/m2 N136.88
22
Example
Spread and level excavated material off site 50m away from excavations.
Solution
Cost of gang as before describe = 14,100.00
Output of gang = 12 x 4.5m3 = 54m3
Cost/m3 = cost of gang = 21,100.00 = N390.74
Output of gang 54m3
Add 25% profit and overhead = 97.69
Unit rate/m3 = N488.43
Example
Excavate trench for foundation stating from strip level maximum depth 1.5m
Solution
Cost of gang as before describe = 14,100.00
Output of gang = 12 x 2.5m3 = 30m3
Cost/m3 = 14,100 = 470
30m3
Add 25% PRO & OH = 117.5
N587.50
Example
Remove surplus excavated material from site average 50m away from excavation.
Note: for distance greater than 50m tippers are generally used. For smaller or shorter distances, wheel-
barrow are used. When wheel barrows are used spreading and levelling can be carried out immediately.
If tippers are used however temporarily spoil heaps are necessarily and levelling is done afterwards.
Supposed the soil is clay and chalk, (the bulk will be 331/3%).
Solution:
Cost of gang = a.b = N 14,100.00
Output of a gang = 8m3 x 12 = 96m3
Cost/m3 = N 14,100.00 =N146.88
96m3
Add cost of spreading and levelling =N261.11
N707.79
Add 25% profit and overhead =N101.99
23
When tippers are used, consider the following:
1. Hire rate of tippers supposed N4500.00/day
2. Capacity of the tipper suppose 9m3
3. Speed of tipper 50km/hr
4. Tipping time 12mins
5. Assume 6 labourers are loading the tippers with an output of 2hrs/labourer/m3 (which means
to load 1m3 a labourer will use 2hrs)
6. Bulking assume chalk and clay 33.33%
7. Distance of tip 8km
Solution:
1331/3% — 9m3
100% — Xm3
Xm3 = 9 x 100 = 6.75m

133.33
Plant:
Time taken for loading = 2hrs/labourer/m3 x 6.75m3 = 2.25hrs
6 labourers
Time taken for traveling = 16km = 0.32hr
50km/hr
Tipping time = 12mins = 0.20hr
60min/hr 2.77hrs
Total time = 2.77hrs
Cost of tipper = N 4,500.00 x 2.77hrs = N 1,558.13
8hrs
Plant cost/m3 = N 1,558.13 = N230.83
6.75m3
Labour:
Loading: 2hrs/labourer/m3 x N 1,000.00 = N 250.00
8hrs
Add 5% for small tools = N12.50

Add N262.50
Cost spreading and levelling =261.11
Plant cost/m3 =230.83 N491.94
N754.44
24
Add 25% for profit and overhead =N188.61
Note that: if you excavate trench say 1m3 and take back the excavated material to fill the trench you
will still have some material remained. This is because of the bulking factor of the soil.
Now, 9m3 of undisturbed soil will fill the tipper 100%, and 9m3 of disturbed soil will fill the tipper
133.33%. Because during the process of excavation the soil will increase in volume due to the bulking
it has.
(Also note that disposal here in this example is treated as a double handling, but in a situation where
you are disposing to permanent dump site, you will not include the cost of spreading and levelling)
SURFACE TREATMENT
Example
Applying anti-termite solution Dieldrex’20 to sides and bottom of excavation. Assumed:
Cost of anti-termite per litre is N250.00
Assume an output of 30m2/labourer/day
Assume one litre per metre square
Solution
Material:
Cost of Dieldrex’20 per litre = N250.00
Add 5% application waste = 12.50
Cost of material per litre N262.50
Labour:
Consider a gang of six labourer and one supervisor
Cost of 6 labourer at 1,500/day = N 9,000.00
Add 5% for small tools = N450.00
Cost of 1 supervisor at 3,000/day = N 3,000.00
Total cost of gang/day N 12,450.00
Total output per day = 12 x 30 = 360m2
Cost of labour per metre square = N 12,450.00 x 1m2 = N34.58

360m2
Cost/m2 = N262.50 + N34.58 = N297.08
Add 25% for profit and overhead = N74.27
25
Example
Build-up a unit rate for bill item levelling and compacting to the bottom of excavation depth not
exceeding 1.5M and width not exceeding 690mm.
Solution
Consider a gang of 12 labourer and one supervisor.
Costs of 12 labourer at N 1,500 = 18,000.00
Add 5% for small tools = 900.00
Cost of one supervisor at N 3,000.00 = 3,000.00
Total cost of a gang 21,100.00
Total output per day = 12 x 30 = 360m2
Cost/m2 = 21,100.00 = N58.61
360m2
Add 25% profit and overhead = 14.65
Unit rate/m2 73.26
EARTHWORK SUPPORT
Earthwork support is measured for all excavation even where they may not be required and in fact,
they are mostly not required. It’s therefore the work that is priced no the material and labour.
Constants
Purlin boards are: 200 x 38mm
Struts 100 x 100mm
Waller 200 x 38mm (note that if the soil is hard it does not require Waller)
Average labour constants
Fixing = 18 skilled hrs/m3
Striping = 9 skilled hrs/m3
Unloading = 1 unskilled hr/m3
Note:
Always consider the following
1. Cost of material delivered to site if striping = removal of earthwork support 10% waste.
2. Number of usage
3. Cost of labour
Example
Build-up a unit rate item earthwork support to sides of excavations, distance between opposing faces
not exceeding 2m and depth not exceeding 1m. Supposed length of trench, width and depth are 50m,
26
0.69m and 1m respectively. Cost of timber deliver to site 150,000/m3 and four (4) usages, two number
of struts for every poling board and poling board are place 2m centres. Assume loose soil.
Solution
Materials needed:
Number of poling board = number struts = 2[(50/2) + 1] = 52
Number of Waller = 2(1+1) = 4
Volume of poling board = (0.2 x 0.038 x 1) x 52 = 0.395m3
Volume of struts = [(0.1 x 0.1) x (0.69 – 0.076)] x 52 = 0.319m3
Volume of Waller = (0.2 x 0.038 x 50) x 4 = 1.520m3
Total volume of timber needed for the work = 2.234m3
Cost of timber = N 150,000/m3 x 2.234m3 = 335,100

Add 10% waste = 33,510
368,610
Cost per use = N 368,610 = 92,152.50
4
Allow N2000 for nails = 2,000.00
Cost of materials 94,152.50
Labour:
Fixing + Stripping: (18+9) hrs/m3 = 27 x N3, 000 x 2.234m3 = 22,619.25
8hrs
Add 5% for small tools = 1,130.96
Offloading: 1hr/m3 x N 1,500 x 2.234m3 = 418.88
8hrs 24,169.09
Total cost of material + labour = 94,152.50+24,169.09 = 118,321.59

Total area supported = (50 x 2) = 100m2
Cost/m2 = 118,321.59/ 100m2 = 1,183.22
Add 35% pro & OH = 414.13
Unit rate/m2 N1,597.35
27
Example
Build-up a unit rate for a bill item plain in-situ concrete 1:2:4 —19mm developing minimum working
strength of 21N/mm in 28days pour against faces of trenches.
Solution
1m3 cement = 50,000x1.442 = 72100
2m3 sand = 2x3000 = 6000
4m3 agg. = 4x6000 = 24000
7m3 102,100
Cost of mat/m3 = 102100 ÷ 7 = 14,585.71

Add 50% for void & comp. = 7,292.86
21,878.57
Cost of mixing:
Assume the Output of the mixer = 17m3/day
Cost of hiring mixer/month = 650,000

Cost of hiring mixer/day = 650,000/30 = 21,666.67
Cost of labour = 8x1500 = 12000
Add 10% for tools = 1200 13,200
34,866.67
Cost of mixing/m3 = 34866.67 ÷ 17 = 2,050.98
Cos of placing:
Assume 6 labourer can place 4m3/day
Add 10% for tools = 900
9900
Cost of placing /m3 = 9900 ÷ 4 = 2475
Total cost = 21,878.57 + 2,050.98 + 2475 = N26,404.55
Cost of mason that will level and tamp the concrete is not included
But if the work require the use of vibrator. Then the person operating the vibrator is expected to use his plump to
take required level
28
Example
Build up a unit rate for a bill item block wall filled solid with lean concrete 1:4:8—19mm agg. Laid in
stretcher bond with 1:6 mortar mix (assume an area of 100m2)
Solution
Area of block = 0.45x0.225= 0.10125m2
Number of blocks in 100m2 = 100 ÷ 0.10125 = 988blcks
Cost of blocks = 988x180 = 177,840
Add 5% waste = 8,892
186,732
Cost of mortar (1:6)
1m3 of cement = 50,000x1.442 = 72,100
6m3 of sand = 6x3000 = 18,000
90,100
Cost of mat/m3 = 90,100/7 = 12,871.43
Add 25% for bulking and compaction = 3,217.86
16,089.29
Cost of mixing
Output of gang per day = 2m3/labourer
Cost/m3 = 1500/2 = 750
825
Cost of mortar and mixing = 16,089.29+825 = 16,914.29
Add 5% application waste = 845.71
Cost of mortar and mixing/m3 17,760
Cost of mortar and mixing/m2 = 17,760x0.023 = 408.48/m2
Cost of laying the blocks
Assume a gang of 2labourer and 2Mason
For labourers = 2x1500 = 3000
Masons = 2x3000 = 6000
9000
Cost of gang = 9900
Output of gang = 80blocks/day
Labour cost per 100m2 = (988/160) x 9900 = 61,132.5
29
For concrete
Total volume of block = 0.45x0.23x0.23 = 0.02278125m3
Volume of hollow = 0.315 x 0.135 x 0.245 = 0.010418625m3
Cost of mat. For concrete:
1m3 of cement = 50,000x1.442 = 72,100
4m3 of sand = 4x3,000 = 12,000
8m3 of agg. = 8x6000 = 48000
132,100
Cost of mat/m3 =132,100 ÷ 13 = 10,161.54

Add 50% for void and comp. = 5,080.77
15,242.31
Cost of mixing:
Assume the output of the mixer = 17m3
Cost of hiring mixer/month = 650,000

Cost of hiring mixer/day = 650,000/30 = 21,666.67
Add 10% for tools = 1200 = 13,200
34866.67
Cost/m3 = 34866.67 ÷ 17 = 2,050.98
Cos of placing:
Assume 6 labourer can place 4m3/day
Cost of placing/m3 = 6x1500 = 9,000
9,900
Cost per output = 9900 ÷ 4 = 2,475
Total cost = 15,242.31 + 2,050.98 + 2,475 = 19,768.29
Cost of concrete per100m2 = 19,768.29 x 988 x 0.010418625 = 203,486.90

Add cost of:
Block/100m2 = 186,732
Mortar/100m2 = 40,848
Cos of laying 100m2 block wall = 61,132.50 288,712.5
492,199.4
30
Total cost/m2 = 492,199.4/100 = 4,921.99
Add 35% PRO & OH =1,722.70
N 6,644.69
Note that: in the above example the cost of vibrator is not included because in this kind of work, vibrator is not
require.
Example
Build up a unit rate for a bill item 13mmth. Rendering C&S mix (1:4) on block wall (measure
separately) applied in one coat and finished smooth assume an area of 100m2 and use 25% for void
and compaction.
Solution
1m3 of cement = 36000x1.442 = 51,912
4m3 of sand = 4x1,600 = 6,400
58,312
Cost of mat/m3 = 58,312/5m3 = 11,662.40/m3
Add 25% for voids and compaction =2,915

14,578
Cost of mixing
Assume a labourer can mix 2m3/day
Cost of labour per m3 =1500/2 = 750
Add 10% for tools =75
825
Cost of mat/m3 =14,578+825= 15,403
Add 5% application waste =770.15
Cost of mat/m3 = 16,173.15
Amount of mortar required 100m2x0.013m= 1.3m3
Cost for 1.3m3 = 1.3x16173.15 = 21025.10

Cost of application
Assume a gang of 1mason and 1labourer
For: mason =3000.00
Labourer =1500.00
4500.00
31
Add 10% for tools =450.00
4,950.00
Output of a gang 20m2/day
Cost of 100m2 = (100/20) x4,950 = 24,750.00

Cost of mat. And labour /100m2 = 21,025.10+24,750 = 45,775.10
Add 35% profit and overhead = 16,021.43
61,796.53
Unit rate = 61,796.53/100m2 = 617.97/m2
32
Table: 1 Reinforcement
s/n Diameter(mm) Diameter(inches) Weight(kg/m)
1 6.350 1/4 0.246

2 9.525 3/8 0.560
3 12.200 1/2 0.994
4 15.825 5/8 1.552
5 18.080 3/4 2.235
6 22.753 7/8 3.042
7 25.400 1 3.973
8 28.370 11/8 5.030
9 31.725 11/4 6.209
Table: 2 Amount of tying wire/tonne
s/n Diameter (mm) Weight of tying wire(kg/tonne)
1 6.350 — 9.525 15kg

2 12.00 — 8.050 8kg
3 22.753 — 31.725 6kg
Table: 3 Labour output for steel/hour/tonne
s/n Location Diameter(mm)

6—9 12 — 15 19 — 22 25 — 31
1 Foundation / beds 7hr/tonne 6hr/tonne 5hr/tonne 4hr/tonne
2 Floor & roofs 12hr/tonne 10hr/tonne 8hr/tonne 6hr/tonne
3 Walls 14hr/tonne 12hr/tonne 10hr/tonne 8hr/tonne
4 Beams/ columns and 16hr/tonne 14hr/tonne 12hr/tonne 10hr/tonne
Stair cases
Example
Calculate the number of reinforcement in 100kg of 12mm diameter
Solution
Density of steel 7850kg/m3 (constant)
Weight of reinforcement = 100kg

Add 5% waste = 5kg
105kg
𝑚𝑎𝑠𝑠
𝐷𝑒𝑛𝑠𝑖𝑡𝑦 =
𝑣𝑜𝑙𝑢𝑚𝑒
But 𝑣 = 𝜋𝑟 2 ℎ
33
𝑚
𝜌 = 𝜋𝑟2 ℎ
𝑚
ℎ = 𝜋𝑟2 𝜌
105
ℎ = 3.142×(0.006)(0.006)×7850
105
ℎ= = 118.243𝑚
0.888
118.243
ℎ= = 10.28 ≈ 10𝑁𝑟
11.5
Example
How many 16mm diameter reinforcements makes a tonnes.
Solution
1000kg — 1 tonne
Note: 12m is the standard length of reinforcement but when preparing your rate it’s advisable to use 11.5m
because not all reinforcement are up to 12m
O 2 x 0.222 x 11.5
36
O = diameter of the reinforcement
162 x 0.222 x 11.5 = 18.15kg
36
1000𝑘𝑔
= 55𝑁𝑟
18.15𝑘𝑔
It means 55Nr of 16mm diameter reinforcement makes a tonne
Example
Build up a unit rate for a bill item 12mm diameter high tensile reinforcement bars in straight and bend
shapes in stair case. Assume 400kg of the reinforcement and assume cost of tying ware to be 5,000
and cost of reinforcement bar/tonne 165,000
Solution
Material cost
Quantity of tying wire = 400 x 8 = 3.2kg

1000
Cost of tying wire = 3.2 x 5,000 = 16,000.00
Quantity of steel required = 400 x 165,000 = 66,000.00
1000
34
Total cost of mat. 16,000 + 66,000 = 82,000.00
Add 10% waste = 8,200.00
90,200.00
Labour cost (all in labour rate)
3,000 x 14 x 400 = 2,100
8 1000
Add 10% for tools = 210 2,310.00
92,510.00
Add 35 profit and overhead = 32,378.5
124,888.5
35

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Compiled by Ibrahim

QBPRICING OF CONSTRUCTION WORKS COMPILED BY IBRAHIM AUWAL BALA

Preliminaries Cost Time Fix

(2) Site Accommodation

a) Initial construction of accommodation

Architect office 7.5m2

60m2 at 9,000/m2 = 540,000

(3) Mechanical Plant

(7) Water for the Work

For concrete work 480Litres/m3

(vi) Overhead and profit

(8) Lighting and Power for Work

FLUCTUATING PRICE CONTRACT

RECORDING AND CHECKING FLUCTUATIONS CLAIMS

Example of material fluctuation claim

Mataho ventures Ltd FT211 29/8/09 10 tonnes 37,000 - 1,000 10,000

Fluctuations are not calculated for the following

appropriate to the circumstances. They are:

Advance payment bond for construction contracts

to ‘call’ on the retention bond.

Performance bond for construction

Certifying practical completion has the effect of:

 A draft building owner's manual.

NB Sectional completion refers to a provision within construction contracts allowing different

Certificate of making good defects

The purpose of the certificate of making good defects

Particular circumstances relating to the certificate of making good defects.

What are defects?

Difficulties surrounding practical completion

Final certificate for construction contracts

Data for labour estimating

.Skilled labour = 5days x 3,000.00 15,000.00

Unskilled labour = 5days x 1,500.00 7,500.00

Indirect cost 36%

Skilled labour : 8hrs x (11/4)hrs x 3,000 3,750.00

Unskilled labour : 8hrs x (11/4)hrs x 1,500 1,875.00

Unskilled labour : 4hrs x (11/2)hrs x 1,500 2,250.00

Additional 8km = 1/4hr

Remaining 7km = 1/4hr

Return time 15km = 1/2hr

Total time = 1+1/4+1/4+1/2 = 2hrs

Skilled labour: 2hrs x 7days x 3000.00

Unskilled labour: 2hrs x 7days x 1500.00 2,625.00

Time = distance = 110km = 1.83hrs

Total time for two trip = 1.83hrs x 2 = 3.66hrs

Cost/head = 2,928 = 58.56 x 7days = 409.92

Total costs per head 34,309.92 17,359.92

Cost of 10 trade men = 34,309.92 x 10 = 343,099.20

Cost of 40 labourers = 17,359.92 x 40 = 694,396.80

Total costs of trade men & labourer per week = 343,099.20

Consider the following in building up rates for excavation.

Cost per square metre = cost/m3 x m = N730/m3 x 0.15m = N109.5/m2

Xm3 = 9 x 100 = 6.75m

Add 5% for small tools = N12.50

Cost of labour per metre square = N 12,450.00 x 1m2 = N34.58

Cost of timber = N 150,000/m3 x 2.234m3 = 335,100

Total cost of material + labour = 94,152.50+24,169.09 = 118,321.59

Unit rate/m2 N1,597.35

Cost of mat/m3 = 102100 ÷ 7 = 14,585.71

Cost of hiring mixer/month = 650,000

Cost of mat/m3 =132,100 ÷ 13 = 10,161.54

Cost of hiring mixer/month = 650,000