THE HONG KONG INSTITUTE OF SURVEYORS QUANTITY SURVEYING DIVISION ASSESSMENT OF PROFESSIONAL COMPETENCE FINAL ASSESSMENT 2012 PRACTICE PROBLEM DAY 1 Wednesday, 19'" September, 2012QUANTITY SURVEYING DIVISION ASSESSMENT OF PROFESSIONAL COMPETENCE ‘THE HONG KONG INSTITUTE OF SURVEYORS I FINAL ASSESSMENT ~ 19" SEPTEMBER 2012 PRACTICE PROBLEM NOTES TO CANDIDATES ‘A Headings to questions are for ease of identification only and do not form part of the questions. B_ The number of main questions to be answered is as follows: (1) Day 1 - Questions with varying marks but the aggregate mark is 60. (2) Day 2— Questions with varying marks but the aggregate mark is 50. DAY 14 Question No.1 Cost Estimate Question No.2 Form of Tender Question No.3 Tender Documentation Question No.4 Life Cycle Costs C All Main Questions and Sub-Questions are compulsory. D The total mark of each days paper is 50. The passing mark of each day's paper is 55% of the total mark of that paper. Candidates who have passed both days’ papers will be considered as having passed the APC Practice Problem. E Refer also to the INSTRUCTIONS TO CANDIDATES, which were issued to the Candidates in advance. Page 2QUANTITY SURVEYING DIVISION ASSESSMENT OF PROFESSIONAL COMPETENCE FINAL ASSESSMENT ~ 19" SEPTEMBER 2012 PRACTICE PROBLEM ‘THE HONG KONG INSTITUTE OF SURVEYORS hy FIVE COMMON CRITERIA Candidates are expected to illustrate a reasonable level of professional competence against five common criteria outlined below, sufficient for the Assessors to answer the question “Would | employ the Candidate to work as a qualified Quantity Surveyor with the ability to resolve problems in a professional manner?” However, it should be recognized that not all these criteria apply to every problem, nor do they carry equal weight. 1. Perception: A full understanding of the problem posed, evidenced by a response to each item in the question. Candidates should also show foresight by anticipating additional problems not specifically mentioned. Imagination: The assumption of essential supplementary information 80 as to provide a full response; also the use of imaginary telephone inquiries, quotations, notes, eto. Technical skills: The correct use of measurement principles, prices, discount factors, etc. The use of appropriate short cuts, rounding off of figures, etc. to suit the scale of the problem. The provision of analysis to a depth appropriate to the stage reached by Candidates and the time constraints imposed on Candidates. Judgement: The provision of sound professional advice indicative of professional knowiedge and experience gained by Candidates. The advice should be firm and unhesitating, except where suitable caveats are essential. Free of ambiguity, with clear expression and an evant or inappropriate technical details, particularly when provided to a lay Employer. Correct syntax and good professional style in letters and reports are important. Candidates should clearly convey their interpretations and proposals. Page 3Sioa Soiree Son Segeebuc OF eeoreseoN. courerence U FINAL ASSESSMENT — 19" SEPTEMBER 2012 ‘THE HONG KONG INSTITUTE OF SURVEYORS i. hl PRACTICE PROBLEM DAY1 19" SEPTEMBER 2012 Page 4‘THE HONG KONG INSTITUTE OF SURVEYORS QUANTITY SURVEYING DIVISION’ [ASSESSMENT OF PROFESSIONAL COMPETENCE FINAL ASSESSMENT ~ 19°” SEPTEMBER 2012 PRACTICE PROBLEM uestion Ni Cost Estimate Your firm has been appointed to provide quantity surveying services for a Proposed ABC Residential Development ("the Development’). You are the Project Quantity Surveyor assigned by your firm. Your firm has prepared a cost estimate for the Development. A copy of the Cost Estimate and the associated outline specification is included as Attachment 1 to this Question No. 1. In the last project meeting, the Employer has decided to make certain changes to the building design as outlined in the following table: Current Design Revised Design Residential Lease Gross Floor ‘Area (GFA) 18,540 m2 18,540 m2 Number of towers 1 tower 2 identical towers. Number of residential floors per tower 35 35 Flats per floor Number of lifts per tower Other relevant background information: 1. There will not be any significant change to the basement floors under the Revised Design. 2. The precast fagade and window area of the Revised Design will remain the same as that of the Current Design. 3. The Construction Floor Area (herein referred to as “CFA”) per typical floor of the Residential Tower will need to be enlarged by 3%. 4. The perimeter of each typical floor will need to be increased by 10%. Page 5‘THE HONG KONG INSTITUTE OF SURVEYORS QUANTITY SURVEYING OMISION’ ‘ASSESSMENT OF PROFESSIONAL COMPETENCE FINAL ASSESSMENT ~ 19" SEPTEMBER 2012 PRACTICE PROBLEM Question N Cost Est ate (Cont'd) ‘The Employer has requested for a quick update of the Cost Estimate based on the confirmed design changes. Your Director has requested you to: - (2) identify a list of items in the Cost Estimate that will be affected by the design changes and briefly explain in what ways the elemental costs of the items will be affected; and [12 marks] {b) revise the Estimate Summary and Cost Build-up of the Residential Areas by marking on the original copy clearly and legibly. Just say 10% increase to the costs of the Foundations and Pile Caps, and keep the costs of the Basement and G/F Carparks and Plant Rooms, Club House Area on G/F, and External Works and Landscaping Works unchanged for the time being. [10 marks] Attachment 1 — The Cost Estimate Report of the Current Design for the Development including the outline specification. Page 6‘THE HONG KONG INSTITUTE OF SURVEYORS (QUANTITY SURVEYING DIVISION ASSESSMENT OF PROFESSIONAL COMPETENCE FINAL ASSESSMENT — 19"" SEPTEMBER 2012 PRACTICE PROBLEM iM Question No. 1 = Cost Estimate (Cont'd) Attachment 1 - Cost Estimate of the Current Design 10th August 2012 Summary Site Area = 2,060 m2 Total Construction Floor Area 26,840 m2 Domestic Gross Floor Area 18,540 m2 Total No. of Flats 280 No. CFA/ GFA 1.45 ESTIMATED UNIT ELEMENTS CFA cosT cosT (m2) (HKS) (HK§/m2 ) Foundation, Pile Caps overall 26,840 70,000,000 2,608 Basement and G/F Carparks and Plant Rooms 4,500 76,500,000 17,000 Clubhouse Area 740 20,000,000 27,027 Residential Tower 21,600 294,700,000 13,644 External Works and Landscaping Works (2) Outdoor swimming pool and overall 26,840 20,000,000 745 equipment, landscaping works, boundary walls and extemal features (b) _Uttities connections, external overall 26,840 3,000,000 112 lighting, underground drainage, footpath and run-in Total Estimated Construction Costs {at August 2012 price level) __ 484,200,000 18,040 Page 7‘ASSESSMENT OF PROFESSIONAL COMPETENCE FINAL ASSESSMENT ~ 19 SEPTEMBER 2012 ‘THE HONG KONG INSTITUTE OF SURVEYORS. QUANTITY SURVEYING DIVISION id PRACTICE PROBLEM ‘Question No. 1 - Cost Estimate (Cont'd) Attachment 1 ~ Cost Estimate of the Current Design (Cont'd) Background Information 1.0 14 2.0 24 3.0 3.4 4.0 44 42 5.0 5.1 Project Scope The Project comprises one 36-storey residential tower on a 2-level basement with 35 residential floors, one club house on G/F, an outdoor swimming pool and landscaped area, and carparks and plant rooms on G/F and in the basement. Design Information The Architect's floor plans received on 30" July 2012 shall form the basis of this Estimate. Definition "Construction Floor Area" means all covered floor areas of the building measured to the outside face of the extemal walls or external perimeter, without deduction for areas occupied by walls, partitions, columns, shafts and ducts. Basis of Pricing All pricing is based on those prevailing in August 2012 and the Works are assumed to be obtained by competitive fixed price tendering for a normal construction period. Price fluctuations that may arise from August 2012 to tendering for the Works are not included. List of Exclusions [Notes to Candidates: The List of Exclusions is omitted on purpose. Candidates are not expected to address any issue on the List of Exclusions.] Page 8‘QUANTITY SURVEYING DIVISION ‘ASSESSMENT OF PROFESSIONAL COMPETENCE FINAL ASSESSMENT ~ 19" SEPTEMBER 2012 “THE HONG KONG INSTITUTE OF SURVEYORS PRACTICE PROBLEM Question No 4 —Cost Estimate (Cont'd) Attachment 4 — Cost Estimate of the Current Design (Cont'd) Schedule of Construction Floor Area (m2) Storey | Carparks & Total Level Height (m)|_Plant Rooms | Club House _| Residential CFA, B2 35 1,840 _ - 1,840 Bt 35 1,800 _ _ 1,800 GF 55 860 740 300 1,900 35 x 600 4 - _ ~ 21,000 36IF 35x3.0 aad Roof 3.0 - - 300 300 | Total: 4,500 740 21,600 26,840 ‘Schedules of Accommodation 2Bedrooms/ | 3Bedrooms/ | 3 Bedrooms/ Total No. Tower 1 Bathrooms _|_1Bathrooms_|__2 Bathrooms _|_of Flat Units 35x4 units per | 35x 2 units per | 35 x2 units per Paes floor = 140 floor = 70 floor = 70 td Page 9‘THE HONG KONG INSTITUTE OF SURVEYORS QUANTITY SURVEYING DIVISION ASSESSMENT OF PROFESSIONAL COMPETENCE FINAL ASSESSMENT ~ 19” SEPTEMBER 2012 PRACTICE PROBLEM Question No. 1 - Gost Estimate (Cont'd) Attachment 1 — Cost Estimate of the Current Design (Cont'd) Qutline Specification and Assumptions 1.0 1 2.0 24 3.0 34 4.0 44 42 5.0 54 6.0 61 Foundations and Pile Caps Allowance only for bored pile foundations with reinforced concrete pile caps and tie beams below basement bottom slabs. Basement Construction Allowance only for basement bottom slabs, basement screen walls, ground floor slabs and beams, structural columns and walls in basement, ‘excavation, sheet piling and shoring, waterproof tanking and sub-soil drains to basement sides and top of bottom slabs. Structure above Basement The structure to be of in-situ reinforced concrete beams and slabs on columns and walls, with ratios assumed as follows: Location Concrete Reinforcement Formwork Typical floors 0.50 m3/m2 CFA 220 kg/m3 of concrete 2.80 m2/m2 CFA External Walls The external walls to be of 150mm thick in-situ reinforced concrete and 150mm thick precast concrete fagade panel units. The balconies to the residential flats shall be fenced with glass railings. External Wall Finishes and Facings The external walls to the residential tower to be finished in ceramic tiles (P.C.$100/m2 supply only) with approved tile adhesive. Windows The windows to the residential flats to be of single glazed fluorocarbon coated aluminium windows with green tinted tempered glass (P.C. supply and install at $2,000/m2). Page 10‘THE HONG KONG INSTITUTE OF SURVEYORS. QUANTITY SURVEYING DIMISION [ASSESSMENT OF PROFESSIONAL COMPETENCE FINAL ASSESSMENT ~ 16" SEPTEMBER 2012 PRACTICE PROBLEM Question No. 4 ~ Cost Estimate (Cont'd) Attachment 4 - Cost Estimate of the Current Design (Cont'd) Outline Specification and Assumptions (Cont'd) 7.0 7A 8.0 84 9.0 9.4 10.0 10.1 12.0 12.4 13.0 13.1 14.0 144 Roof finishes The roof finishes to be of precast concrete tiles on waterproof cement sand screed with waterproof membrane and insulation layer on reinforced concrete roof slab. Doors, Partitions, Internal Finishes & Fittings Allowance only for the fitting out costs of the residential floors and club house is included in the Cost Estimate and is subject to future review. Building Services Installations Allowance only for plumbing and drainage, electrical installation, extra low voltage installation, window type air-conditioners to bedrooms and living rooms, carpark and plant room ventilation system, fire services installation, carpark control system, town gas installation with gas water heaters. Lifts Installation 3 No. passenger lifts to the residential tower, each with a loading capacity of 900kg and operation speed of 3.0m/sec maximum. Club House Area on G/F Allowance only for fitting out and building services, subject to confirmation of Client's design brief. External Works and Landscaping Works Allowance only for: (2) outdoor swimming pool and equipment, landscaping works, boundary walls and external features; and (b) utility connections, external lighting and underground drainage, footpath and run-in. Preliminaries Allowance for preliminaries at 15% of the basic construction cost. Contingency Sum No contingency sum has been included in this Cost Estimate. Page tt‘THE HONG KONG INSTITUTE OF SURVEYORS QUANTITY SURVEYING DIVISION [ASSESSMENT OF PROFESSIONAL COMPETENCE FINAL ASSESSMENT ~ 19” SEPTEMBER 2012 PRACTICE PROBLEM iM Question No. 1 ~ Gost Estimate (Cont'd) Attachment 1 — Cost Estimate of the Current Design (Cont'd) il dollars) 1.0 Structure 1.1 Reinforced concrete 1.2. Formwork 1.3. Reinforcement 1.4 Allow for sundries concrete works, formwork, etc. (5%) 1.5 2.0 External walls 2.1 150mm thick in-situ RC walls to typical floors 2.2 150mm thick precast concrete facade panel units to typical floors 2.3 Glass balustrades to balcony 2.4 150mm thick RC to roof floor 2.5 160mm thick parapet walls, 1.2m high 2.6 Allow for architectural features, A/C hoods, ete. (10%) 27 of Residential Areas (all amounts rounded to near jousand Quantity Unit Rate Amount (HK$) (HK$) 10,800 m3 1,200 12,960,000 60,480 m2 200 12,096,000 2,376,000 kg 19 23,760,000 Sum . 2,441,000 Total (Item 1.1 to 1.4) __ 51,257,000 4,730 m2 800 3,784,000 11,030 m2 2,520 27,796,000 700m 4,000 2,800,000 450 m2 800 360,000 240 m2 800 192,000 sum 3,493,000 Total (Item 2.1 to 2.6) 38,425,000 Page 12‘THE HONG KONG INSTITUTE OF SURVEYORS QUANTITY SURVEYING DNISION ASSESSMENT OF PROFESSIONAL COMPETENCE FINAL ASSESSMENT ~ 19™ SEPTEMBER 2012 PRACTICE PROBLEM Question No. 1 — Cost Estimate (Cont'd) Attachment 1 ~ Cost Estimate of the Current Design (Cont'd) Cost Build-up of Residential Areas (all amounts rounded to nearest thousand dollars) (Cont'd) 3.0 Windows 3.1 Sliding windows and doors 3.2 Single glazed fluorocarbon coated aluminum windows 33 4.0 External wall finishes 44 Ceramic tiles (P.C.100/m2 supply only) to typical floors 4.2 Ceramic tiles (P.C.100/m2 supply only) to walls on roof 4.3. Ceramic tiles (P.C.100/m2 supply only) to parapet walls 4.4 Allow for architectural features, A/C hoods, etc. (18%) 45 5.0 Roof finishes 5.1 Precast concrete tiles on waterproof screed with waterproofing membrane and insulation 5.2 Allow for channels, skirtings, flashing, etc. (15%) 53 Quantity Unit Rate Amount (Hks) (HK$) 790 m2 3,000 2,370,000 4,460 m2 2,000 8,920,000 Total (Item 3.1 to 3.2) 17,290,000 15,760 m2 400 6,304,000 450 m2 400 180,000 480 m2 400 192,000 sum 1,001,000 Total (Item 4.1 to 4.4) —_ 7,677,000 600. m2 650 390,000 ‘sum 59,000 Total (Item 5.1 to 5.3) 449,000 Page 13‘THE HONG KONG INSTITUTE OF SURVEVORS QUANTITY SURVEYING DIVISION 'ASSESSNENT OF PROFESSIONAL COMPETENCE FINAL ASSESSMENT - 19" SEPTENBER 2012 PRACTICE PROBLEM Question No. 1 - Gost Estimate (Cont'd) Attachment 1 - Cost Estimate of the Current Design (Cont'd) Cost_Buil dollars) (Cont'd) 6.0 Interior fitting out 6.1 Budget allowance for fiting out cost including the provision of doors, internal partitions, and internal finishes and fittings to all Residential Areas 6.2 7.0 Building Services Installations 7.1 Budget allowance for building services installations, including plumbing & drainage, fire services, electrical, extra low voltage, window-type air conditioners, mechanical ventilation, town gas with gas water heaters 7.2. Builder's work in connection with building services installations (3%) 73 8.0 Lifts Installation 8.1. Passenger lifts 8.2 of Residential Areas (all amounts rounded to nearest Quantity Unit Rate sum Total (Item 6.4) Sum sum Total (Item 7.1 to 7.2) 3 No. 1,800,000 Total (Item 8.1) 82,000,000 82,000,000 58,000,000 4,740,000 59,740,000 5,400,000 5,400,000 Page 14‘THE HONG KONG INSTITUTE OF SURVEYORS (QUANTITY SURVEYING DIVISION [ASSESSMENT OF PROFESSIONAL COMPETENCE. FINAL ASSESSMENT - 19 SEPTEMBER 2012 PRACTICE PROBLEM Question No, 4 ~ Cost Estimate (Cont'd) Attachment 1 - Cost Estimate of the Current Design (Cont'd) Cost Build-up of Residential Areas (all amounts rounded to nearest thousand dollars) (Cont'd) Quentity Unit Rate Amount (HK$) (HK$) 9.0 Preliminaries (15%) 9.1 Allowance based on Sum 38,436,000 (sum of Item 1.5+2.7+3.3+4.5 + 5.3 +6.2+7.3 + 8.2) x 15% Total Estimated Construction Cost of Residential Areas: 294,674,000 (sum of Item 1.5+2.7+3.3+4.5+5.3+6.2+7.3+82+9.1) Carried forward to the Summary (to the nearest thousand dollars): _ 294,700,000 Page 15‘THE HONG KONG INSTITUTE OF SURVEYORS QUANTITY SURVEYING DIVISION ‘ASSESSMENT OF PROFESSIONAL COMPETENCE FINAL ASSESSMENT - 19" SEPTEMBER 2012 PRACTICE PROBLEM Question No. 2 - Form of Tender Prior to engaging your Company as the Consultant Quantity Surveyor for a supermall Development, the Employer's in-house staff had prepared a draft Form of Tender (herein referred to as “Draft FoT") (refer to Attachment 1 to this Question No. 2) for the Main Superstructure Contract for the Supermall Development. It is envisaged that tenders will be invited shortly. The Employer asked if your Company could review and offer comments on the Draft FoT. Your Senior Associate, Mr. A.B. Wong, left the following Internal Memo on your desk for your action. Internal Memo Date : 19 September 2012 To From QS Candidate A.B. Wong Main Superstructure Contract for the Supermall Development at 999 Wonder Street, Yuen Lona, New Territories The Employer's Project Manager called and asked if we could review and comment on the attached Draft FoT. The Project Manager particularly brought to my attention that there would be 2 phases of works, namely the Phase 1 and Phase 2 Works. Phase 1 Works is as delineated on the tender drawings. Phase 2 Works which is an extension of Phase 1 Works will only commence upon the further decision of the Employer. Similarly, the scope of work and the completion period of Phase 2 Works shall be subject to the final compromise between the Employer and the Architect. cont'd Page 16THE HONG KONG INSTITUTE OF SURVEYORS ‘QUANTITY SURVEYING DIVISION. ‘ASSESSMENT OF PROFESSIONAL COMPETENCE FINAL ASSESSMENT ~ 10" SEPTEMBER 2072, PRACTICE PROBLEM Question No. 2 - Form of Tender (Cont'd) Internal Memo Date : 19 September 2012 To —: QS Candidate From : A.B. Wong (Cont'd) Please identify any error in or problem with this Draft FoT that may expose the Employer to undesirable risks or burden contractually and financially. We need to let the Employer know the reasons why we think so. You may restrict your comments to those provisions presently included in the draft. ‘An email response would be fine. Regards, ABW Encl: Attachment 1- Draft Form of Tender {12 marks] Page 17THE sone Kono mesmrurecesunvevons Stoner conan oon Seeeers oe moreso conperence U sear aauelanenr ior eeobnoeeane Peas Fa Question No. 2 ~ Form of Tender (Cont'd) Attachment 1 DRAFT To: FORM OF TENDER for SITE FORMATION AND FOUNDATION CONTRACT for THE SUPERMALL DEVELOPMENT at 999 WONDER STREET, YUEN LONG, NEW TERRITORIES for ‘SUPER DEVELOPER LTD. Super Developer Lid. Having inspected the Site and examined the Drawings, Conditions of Contract and Combined Specification and Bills of Quantities for the above named Works, we offer to design (as may be required under the Contract), carry out, complete and maintain the whole of the said Works in conformity with the said Drawings, Conditions of Contract and Combined Specification and Bills of Quantities for the sum of Hong Kong Dollars. : HK$ ) or such sum as may be ascertained in accordance with the Conditions of Contract. We undertake if my/our tender is accepted to carry out and complete Phase 1 Works under this Contract within (to be suggested by the tenderers) calendar days including Sundays and public holidays or within any extended time which may be authorized under the Contract. We also undertake to carry out and complete Phase 2 Works which are an extension to Phase 1 Works under this Contract with the scope of work and the period for completion to be advised by the Architect after commencement of the Works. Page 18‘QUANTITY SURVEYING DNISION. [ASSESSMENT OF PROFESSIONAL COMPETENCE FINAL ASSESSMENT ~ 191” SEPTEMBER 2072 PRACTICE PROBLEM ‘THE HONG KONG INSTITUTE OF SURVEYORS hy Question No. 2 - Form of Tender (Cont'd) DRAFT Attachment 1 4, We agree to abide by this tender for a period of twelve (12) months from the date fixed for receiving the same and it shall remain binding upon me/us and may be accepted at any time before the expiration of that period. 5. Unless and until a formal agreement is executed, this tender together with the written acceptance thereof by the Employer, subject to the provisions of Clause 4 hereof, shall constitute a binding contract. 6. We understand that the Employer is not bound to accept the lowest or any tender which he may receive. 7. We understand that this is a fixed price contract with no adjustment for price fluctuations. 8, We are aware of and accept the amendments to the Standard Conditions of Contract set out in the Special Conditions of Contract. 9. We agree that we shalll provide a bond in the amount and format specified in the Appendix to the Conditions of Contract for the due performance of the Contract. [Notes to Candidates: The signing section of the Draft FoT is deliberately omitted for simplicity.] Page 19‘THE HONG KONG INSTITUTE OF SURVEYORS QUANTITY SURVEYING DIVISION ASSESSMENT OF PROFESSIONAL COMPETENCE Li FINAL ASSESSMENT ~ 19” SEPTEMBER 2012 PRACTICE PROBLEM Question No. 3 ~ Tender Documentation (a) Please state the reasons for including a Form of Tender in the Tender Documents. [3 marks] {b) Under what circumstances would a tenderer be required to submit a duplicate of the same Form of Tender and submit more than one version of Form of Tender. [3 marks] (c) Please state the reasons for requiring a Nominated Sub-Contractor to provide a Form of Warranty to the Employer. [3 marks] Page 20‘THE HONG KONG INSTITUTE OF SURVEYORS ‘QUANTITY SURVEYING DIVISION ‘ASSESSMENT OF PROFESSIONAL COMPETENCE FINAL ASSESSMENT — 191" SEPTEMBER 2012 PRACTICE PROBLEM Question No. fe Cycle Costs During a recent design meeting, the M&E Consultant introduced an innovative air- conditioning system which, if adopted for the proposed megamall development project, will qualify for extra credit under the Building Environmental Assessment Method ("BEAM") PLUS assessment because there would be savings in energy consumption, reduction of carbon emission, enhancement of the building performance environmentally, etc. The Employer of the project is keen to obtain the BEAM Plus certification on his building as he is interested in quality building performance as well as reducing the environmental impacts of his. building throughout its life cycle. He also considered the certification would enhance his image and attract more rental revenue, The Employer asked if your firm (acting as the Project Consulting Quantity Surveyor) could advise him on what kind of costs that he should take into account in order to make an economic evaluation of this innovative air-conditioning system against a normal system. The Employer said that it would not be necessary to provide any costing as the actual design would stil to be developed. [7 marks] Page 21THE HONG KONG INSTITUTE OF SURVEYORS QUANTITY SURVEYING DIVISION ASSESSMENT OF PROFESSIONAL COMPETENCE FINAL ASSESSMENT 2012 PRACTICE PROBLEM DAY 2 Thursday, 20 September, 2012THE HONG KONG INSTITUTE OF SURVEYORS QUANTITY SURVEYING DIVISION’ ASSESSMENT OF PROFESSIONAL COMPETENCE FINAL ASSESSMENT ~ 20" SEPTEMBER 2012 PRACTICE PROBLEM NOTES TO CANDIDATES A. Headings to questions are for ease of identification only and do not form part of the questions. B. The number of main questions to be answered is as follows: (1) Day 1 - Questions with varying marks but the aggregate mark is 50% (2) Day 2~ Questions with varying marks but the aggregate mark is 50% Day 2 Question No. 1 Interim Payment and Liquidated & Ascertained Damages 15 marks Question No.2 — Financial Status Reporting 10 marks Question No.3 Contractual Duties on Rectification Works 10 marks Question No.4 Valuation of Variation Works 415 marks 50 marks C. All Main Questions and Sub-Questions are compulsory. D. The total mark of each day's paper is 50, The passing mark of each day's paper is 55% of the total mark of that paper. Candidates who have passed both days’ papers will be considered as having passed the APC Practice Problem. E. Refer also to the INSTRUCTIONS TO CANDIDATES, which were issued to you in advance. Page 11 yonokone wsrrure or sunvevons 7 Seige Sohn owen estsouei or Poressiotu. courerence L FINAL ASSESSMENT - 20" SEPTEMBER 2012, ae OB FIVE COMMON CRITERIA Candidates are expected to illustrate a reasonable level of professional competence against five common criteria outlined below sufficient for the Assessors to answer the question ‘Would Surveyor with the a ploy the Candidate to work as a qualified Quantity ity to resolve problems in a professional manner?’, However, it should be recognized that not all these criteria apply to every problem, nor do they carry equal weight. 1. Perception: A full understanding of the problem posed, evidenced by a response to each item in the question. Candidates should also show foresight by anticipating additional problems not specifically mentioned. Imagination: The assumption of essential supplementary information so as to provide a full response; and also the use of imaginary telephone inquiries, quotations, notes, etc. Technical skills: The correct use of measurement principles, prices, discount factors, etc. The use of appropriate short cuts, rounding off of figures, etc, to suit the scale of the problem. The provision of analysis to a depth appropriate to the stage reached by Candidates and the time constraints imposed on Candidates. Judgement: The provision of sound professional advice indicative of professional knowledge and experience gained by Candidates. The advice should be firm and unhesitating, except where suitable caveats are essential. Communication: Free of ambiguity, with clear expression and an absence of irrelevant or inappropriate technical details, particularly when provided to a lay Employer. Correct syntax and good professional style in letters and reports are important. Candidates should clearly convey their interpretations and proposals. Page 2‘THE HONG KONG INSTITUTE OF SURVEYORS ‘QUANTITY SURVEYING DIVISION ASSESSMENT OF PROFESSIONAL COMPETENCE FINAL ASSESSMENT ~ 20" SEPTEMBER 2012 PRACTICE PROBLEM DAY 2 20" SEPTEMBER 2012 Page 3‘THE HONG KONG INSTITUTE OF SURVEYORS QUANTITY SURVEYING DIVISION [ASSESSMENT OF PROFESSIONAL COMPETENCE FINAL ASSESSNENT ~ 20" SEPTEMBER 2012 PRACTICE PROBLEM Question No. 4 ~ Interim Payment and Liquidated & Ascertained Damage: You are the Consulting Quantity Surveyor appointed by the Employer. Following the issuance of the Interim Payment Certificate No. A-034, the Architect noticed that your latest financial status report fo the Employer was indicating a likely Final Contract Sum of around HK$505 million. If the Employer would continue to pay the Contractor in accordance with the latest interim payment certificate, it may leave the Employer with insufficient balance to make deduction for Liquidated and Asceriained Damages ("LAD") should he wish to impose the LAD. The Employer would wish you to report the current financial status and whether he might run into the risk of overpaying the Contractor by taking into account the latest project completion status. The Employer also expressly highlighted that he would want to know the amount of LAD likely deductible, You are requested by your Associate to work out the amount of LAD deductible and Graft a letter in response to the Employer's raised concem. The Architect has just issued the Certificate of Practical/Substantial Completion and the Dates of Sectional Completion and Practical/Substantial Completion are as follows: (a) Phase 1:11 March 2012 {o) Phase 2: 10 July 2012 (c) Phase 3: 10 July 2012 ‘The following are attached to this Question No. 1 for information: (a) Attachment 1 — A copy of Interim Payment Certificate No. A-034 (b) Attachment 2 A copy of the Architect's letter Ref. SAP-001 dated 15 August 2012 relating to the granting of extension of time. (c) _ Aitachment 3 - Appendix to the Conditions of Contract. [18 marks] Page 4‘ASSESSVENT OF PROFESSIONAL COMPETENCE FINAL, ASSESSMENT ~ 20" SEPTEMBER 2012 THE HONG KONG INSTITUTE OF SURVEYORS QUANTITY SURVEYING DIVISION L PRACTICE PROBLEM S uestion No. 1 ~ Interim Payment and Liquidated & Ascertained Damages (Cont'd) Attachment 1 Interim Payment Certificate No. A-034. Valuation Date : 2 September 2012 Issue Date : 15 September 2012 Employer : Super Developer Ltd Contractor : Strong Builder Construction Ltd. Project : The Mega Development, 8888 Wonder Street, Yuen Long, New Territories Contract: Main Contract We certify that the following interim payment is due from the Employer to the Contractor: a) Gross Valuation $ 500,000,000 b) Less: Retention (half retention) '$ 12,500,000) c) Nett Valuation: $ 487,500,000 d) Less: Total amount previously certified: '$ 470,000,000' Amount due for payment in this Certificate: $ 17,500,000 (an Signed by the Architect : Star Architect For and on behalf of Star Architect Partners Ltd. c.¢, Super Developer Ltd. - Mr. Employer APC Quantity Surveying Ltd. ~ Mr. A.B. Wong Page 5THE HONG KONG INSTITUTE OF SURVEYORS. QUANTITY SURVEYING DIVISION’ ASSESSMENT OF PROFESSIONAL COMPETENCE FINAL ASSESSMENT ~ 20" SEPTEMBER 2012 PRACTICE PROBLEM uestion N Interim Payment and Liquidated & Ascertained Damages (Cont'd) Attachment 2 Copy of the letter from the Architect: Star Architect Partners Ltd. to the Strong Builder Construction Ltd. Ref. SAP-001 15 August 2012 Strong Builder Construction Ltd. 25/F Star House Building 1234 Long Street, Yaumatei Kowloon Attention : Mr. Y. Build Dear Sirs, ‘The Mega Development, 8888 Wonder Street, Yuen Long, New Territories Main Contract We refer to your extension of time ("EOT") claims submitted with further substantiations under your letter ref. SBC/199 dated 29 July 2012. Based on the available information and your substantiations, our assessment is as follows:- Claim Co1 By reason of the No. 8 typhoon and the rainfall exceeding 20mm on 13 to 20 July 2011, and 9 and 11 August 2011, the inclement weather had affected the structural frame construction of all three phases. We confirm 10 days of EOT is granted. Claim C02 It was recorded that Creative Media Ltd, the Employer's own contractor, carried out the graphic works at the main lobby ceilings of the shopping mall during the period from 15 to 24 March 2012. Such operation had delayed the testing and commissioning works of the fire services system. Therefore a total of 10 days of EOT is granted under the Contract for Phase 2 Works. 12 Page 6‘THE HONG KONG INSTITUTE OF SURVEYORS ‘QUANTITY SURVEYING DIVISION [ASSESSMENT OF PROFESSIONAL COMPETENCE FINAL ASSESSMENT ~ 20" SEPTEMBER 2012 PRACTICE PROBLEM Question No. 4 ~ Interim Payment and Liguidated & Ascertained Damages (Cont'd) Attachment 2 Copy of the letter from the Architect: Star Architect Partners Ltd. to the Strong Builder Construction Ltd. (Cont'd) Ref. SAP-001 15 August 2012 Claim C03 We noted that the completion of Phase 3 Works was delayed due to the slow progress of the hanger system at the main entry. According to our records, we had provided you with the construction details of the hanger system in advance. The information we issued on 2 January 2012 to you was not critical to the completion of the said works. We conclude that the 10 days period of delay cannot be justified for an EOT. Yours faithfully, Va Director For and on behalf of Star Architect Partners Ltd. c.c, Super Developer Ltd. - Mr. Employer APC Quantity Surveying Ltd. ~ Mr. A.B. Wong Page 7‘THE HONG KONG INSTITUTE OF SURVEYORS S QUANTITY SURVEYING DNISION ‘ASSESSMENT OF PROFESSIONAL COMPETENCE LU FINAL ASSESSMENT ~ 20° SEPTEMBER 2012 PRACTICE PROBLEM Question No. 1 - Interim Payment and Liquidated & Ascertained Damages (Cont'd) Attachment 3 Appendix to the Conditions of Contract (2) _ Date for Possession 2 November 2009 (b) Dates for Completion Phase 1 : 1 March 2012 Phase 2 : 1 April 2012 Phase 3 : 1 May 2012 (c) _ Liquidated and Ascertained Damages Phase 1 : $ 50,000/day Phase 2 : $ 80,000/day Phase 3 : $ 100,000/day (G) Period of Interim Certificates One month (e) Period for Honouring Certificates ‘Twenty eight (28) calendar days on presentation (f) Percentage of Certified Value Retained Ten (10) percent of the certified value of the Contractor's own work (9) Limit of Retention Fund Five (5) percent of the Contract Sum (to the nearest one thousand dollars) (h) Amount of Surety Bond Ten (10) per cent of the Contract Sum (to the nearest one thousand dollars) Page 8[ASSESSMENT OF PROFESSIONAL COMPETENCE FINAL ASSESSMENT ~ 20" SEPTEMBER 2012 THE HONG KONG INSTITUTE OF SURVEYORS. QUANTITY SURVEYING DIVISION’ i! PRACTICE PROBLEM s Question No. 2~ Financial Status Reporting The Employer appointed your firm (APC Quantity Surveying Limited) as the Consulting Quantity Surveyor for a Project for the Development of an Intemational School (herein referred to as “the School Project’). The Main Contract has been awarded. Three months have elapsed following the commencement of the Main Contract. As part of your consultancy service, you are required to provide a quarterly financial report. The Employer would wish you to advise him on the financial status of the School Project. Your Boss has given you the information as attached. Please prepare the financial report of the School Project indicating the updated anticipated Final Project Sum to your Boss for his submission to the Employer. [10 marks] Page 9‘THE HONG KONG INSTITUTE OF SURVEYORS QUANTITY SURVEYING DIVISION ASSESSMENT OF PROFESSIONAL COMPETENCE FINAL ASSESSMENT ~ 20" SEPTEMBER 2012 PRACTICE PROBLEM Question No. 2 ~ Financial Status Reporting (Cont'd) Project Background Information: 1. ProjectName —: Robinson International School in Sai Kung, Hong Kong 2. Employer : Richman Academic Association 3. Contract Basis : Lump Sum Contract with quantities 4. Contractor : WeliBuild Construction Co. Ltd 5. Original Budget : HK$91,000,000 (approved by the Employer) 6. Contract Works Packages:~ (a) Foundation Contract (b) Main Contract (Superstructure) : (c) Direct Fitting-out Contract HK$10,000,000.00 : Final Contract Sum settled at ‘Awarded Contract Sum at HK$80,000,000 (inclusive of HK$3,000,000 for contingencies) : Consulting QS’s Estimated Contract Sum at HK$1,000,000.00 (not yet issued for tendering) 7. Information abstracted from the Bills of Provisional and Prime Cost Sums of the Main Contract (Superstructure):- Ref. Desoription 10.1 10.2 Bill No. 10 Provisional and Prime Cost Sums Provisional Sums The following Provisional Sums may be expended in whole or in part as directed by the Architect or wholly deducted from the Contract Sum if not required: Provide the sum of HK$250,000.00 for construction of fence wall along northern site boundary Provide the sum of HK$600,000.00 for graphic works to hoarding Amount (HK$) 250,000.00 600,000.00 Total of Provisional Sums (10.1 to 10.2) 850,000.00 Page 101 von kone isrmure oF sunvevors Sunny some ovo sebauvent or oreSGONdL coupereNce Li Gus aSSeSouen 0 SEP evERE PRACTICE PROBLEM Question No. 2 ~ Financial Status Reporting (Cont'd) Project Background Information (Cont'd) 7. Information abstracted from the Bills of Provisional and Prime Cost Sums of the Main Contract (Superstructure): (Cont'd) Description ‘Amount (HK$) Bill No. 10 Prime Cost Sums for Nominated Sub-Contracts Provide the following Prime Cost Sums for the Supply and Fixing of Works by Specialist Sub-Contractors who will be nominated by the Architect and who are declared to be Nominated Sub-Contractors to the Contractor in accordance with the Conditions of Contract (The Contractor shall refer to Clause 20 of the Preliminaries for attendance as described). 10.3 _| Provide the sum of $4,000,000.00 for Lifts Installation 4,000,000.00 10.4 | Add 4. % for profit 40,000.00 10.5 | Add for attendance as described 200,000.00 10.6 | Provide the sum of $300,000.00 for Audio and Video 300,000.00 Equipment Installation 10.7. | Add 4. % for profit 3,000.00 10.8 | Add for attendance as described 15,000.00 Total of Prime Cost Sums (10.3 to 10.8) 4,558,000.00 Page 11(QUANTITY SURVEYING DIVISION [ASSESSMENT OF PROFESSIONAL COMPETENCE FINAL ASSESSMENT ~ 20 SEPTEMBER 2012 ‘THE HONG KONG INSTITUTE OF SURVEYORS k PRACTICE PROBLEM Question No. 2 - Financial Status Reporting (Cont'd) Project Background Information: (Cont'd) 8. Nominated Sub-Contracts Award Status (a) Nominated Sub-Contract for Lift Installation was awarded to Lift Fast Co. Ltd. in the sum of HK$4,500,000.00. (b) Nominated Sub-Contract for Audio and Video Equipment Installation will be awarded in two month's time. 9. Status of Provisional Sums Expenditure (a) The Architect instructed the Contractor to carry out the graphic works to hoarding in accordance with the drawings issued under Architect's Instruction No. MC6 for an agreed amount of HK$560,000.00. 10. Re-measurement Status of Provisional Quantities (a) The final set of reinforcement drawings for Sub-structure was issued out on 1 July 2012. The re-measurement of provisional quantities of reinforcement for Sub-structure has been completed. The final remeasured value of the reinforcement for Sub-structure is HK$1,500,000.00 instead of HKS1,200,000.00 as provisionally allowed for in the Bills of Quantities (BQ Ref. 3/1 Ato F). 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COMPETENCE FINAL ASSESSMENT ~20" SEPTEMBER 2012, U Practice PROBLEM Question No. 3 - Contractual Duties on Rectification Works Following the heavy rainfall and Typhoon Signal No. 10 two days ago, water leakage was found at the joints of the glass canopy over the central courtyard area of the building, The glass canopy, which was procured under a Nominated Sub- Contract, together with the Main Contract Works, was cerlified practically/substantially completed by the Architect only two months ago. In the meeting yesterday, the Employer expressed his annoyance and frustration that the Architect went ahead and certified Practical/Substantial Completion despite the fact that the leakage had already occurred before the building was handed over to him. He was also afraid that this would be treated as a patent defect discoverable before completion or regarded as a damage caused by typhoon after Practical/Substantial Completion that the Contractor and Nominated Sub- Contractor would be relieved of liablity. The Employer asked you, being the Consulting QS, whether his understanding was correct and what course of actions he has under the Contract to get the leakage rectified without incurring additional cost. Your Boss would like you to prepare an ‘email to the Employer. [10 marks] Page 16THe Hon Kons isrsTUTE OF SuRVEYORS uaa SoRVeyING DMSION SsgeusHlent OF PROvesstON. COMPETENCE FINAL ASSESSMENT 20" SEPTEMBER 2012 L Practice PROSLEN ues n No. faluation of Variation Works You are the Project Quantity Surveyor of the Contractor for a residential development, ‘The design and construction of a mock-up flat have been approved by the Architect and the Employer, which is basically the same design as the tender’s. An Architect's Instruction has been issued to approve the design of the mock up flat. Subsequent to the approval, all tiles have been ordered by the Contractor. ‘The approved walll and skirting tiles in the bathroom are: (a) 300mm x 150mm x 10mm homogenous skirting tiles (herein referred to as “Skirting Tiles") (b) 300mm x 200mm x 10mm brown colour homogenous wall tiles (herein referred to as "Brown Colour Tiles") (c)_ no band tiles Without changing the overall tiled areas in the bathrooms, the Employer is now considering to have the following design revisions to the finishes of the bathrooms (herein referred to as “Intended Design Changes’). (1) Omit the Skirting Tiles. (2) Add a 100mm high band in 300mm x 100mm x 10mm homogenous border tiles (herein referred to as “Band Tiles") (by cutting the original Skirting Tiles to required size) just below the window level. Any insufficient Band Tiles will be further ordered. (3) Change 8 pieces of Brown Colour Tiles to 300mm x 200mm x 10mm special colour homogenous wall tiles (herein referred to as “Special Colour Tiles”) in each bathroom. Page 17ygwovo sone were SN ERG oupros Ere orp oO U eater Question No. 4 — Valuation of Variation Works (Cont'd) As discussed and confirmed in yesterday's site meeting, the originally ordered ties for use in the bathrooms will be delivered to the Site within 2 weeks and the Contractor will commence the tiling works accordingly. All works in the bathrooms will be completed within the next 3 months. It has been confirmed by the supplier that the delivery time of any new order for Band Tiles and Special Colour Tiles will take 3 months after ordering. The late delivered Band Tiles and Special Colour Tiles will be completed within 1 month after delivery without affecting the overall completion of the whole of the Contract Works. The Project Director of the Employer, Mr. P D Wong, quoted the below Special Preambles Clause included in Bill No. 2. “The rate for tile, slab and sheet finishes are to include for laying in colours and patterns as required and approved by the Architect and for all cutting and waste for equal margins.” Mr. P D Wong further said that based on the quoted Special Preambles Clause and the fact that the remaining time before the currently extended date for Completion would still be enough for completing the tiling works in the bathrooms, the cost implication of the Intended Design Changes should be minimal. A meeting has been arranged tomorrow between Mr. P D Wong and your Boss to discuss the Intended Design Changes. Your Boss considered that the cost implication of the Intended Design Changes should not be minimal as suggested by Mr. PD Wong. You are requested by your Boss to list out the items of omissions and additions and advise on the method of valuation of each item with explanatory notes illustrating your adopted contract provisions, underlying principles, cost factors and considerations [Notes to Candidates : No calculation is required for answering this question. [15 marks] Page 18