QUANTITY SURVEYING DIVISION

ASSESSMENT OF PROFESSIONAL COMPETENCE

FINAL ASSESSMENT 2015

PRACTICE PROBLEMS

DAY 1

Tuesday, 15th September, 2015

THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – 15TH SEPTEMBER 2015
PRACTICE PROBLEMS

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 is as follows:

(1) First day – Questions with varying marks but the aggregate mark is 50
marks
(2) Second day – Questions with varying marks but the aggregate mark is
50 marks

DAY 1

Question No. 1 Preparation of a Rough Indication 20 marks

of Construction Cost
Question No. 2 Tender Analysis 10 marks
Question No. 3 Defects Rectification 10 marks
Question No. 4 Contract Execution and Assignment 10 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
Problems.

E. Refer also to INSTRUCTIONS TO CANDIDATES, which were issued to you

in advance.

Page 2
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – 15TH SEPTEMBER 2015
PRACTICE PROBLEMS

FIVE COMMON CRITERIA

Candidates are expected to demonstrate a reasonable level of professional

competence against five common criteria outlined below, sufficient for the
Assessors to answer the question “Would I 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.

2. Imagination: The assumption of essential supplementary information so as

to provide a full response; also the use of imaginary telephone inquiries,
quotations, notes, etc.

3. 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.

4. 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.

5. 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 3
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – 15TH SEPTEMBER 2015
PRACTICE PROBLEMS

DAY 1

15th SEPTEMBER 2015

Page 4
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – 15TH SEPTEMBER 2015
PRACTICE PROBLEMS

Question No. 1 – Preparation of a Rough Indication of Construction Cost

Estimate

Following the presentation of the Preliminary Design Layout Version 1 of the

proposed Dynamic Centre last week, the design Architect, Mr. Archi-Lee, has
revised the preliminary layout taking into account the comments received from the
Board Members of ABC Youth Association. The latest Preliminary Design Layout
Version 2 was issued to your Company (the QS Consultant) yesterday under Mr.
Archi-Lee’s email below:-

Attachment : Email from the design Architect

From: Mr. Archi-Lee
Sent: 14th September 2015, 9.30 am
To: Ms. QS Wong
Subject: RE: Dynamic Centre, Preliminary Design Layout Version 2

Importance: High

Dear QS Wong,

Following the presentation last week, I have further modified the layout. Could you
please advise us urgently the cost difference between this Version and the last
Version 1? I am looking for a rough indication only at this stage.

I have added an indoor pool as per Members’ request, of approximate dimensions

20 m x 30 m x 4 m deep, which has increased the total Construction Floor Area
(CFA) by 10%.

The structural engineer has confirmed that there is no significant change to the
proposed foundation design and basement excavation lateral support (ELS)
system under the Version 2 layout.

Looking forward to your reply. Thank you.

Regards,
Archi-Lee

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THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – 15TH SEPTEMBER 2015
PRACTICE PROBLEMS

VERSION 2

60.00

30.00

PLAN (ALL FLLORS)

R/F

4.00 Offices / café

5/F

4.00 Offices
4/F

4.00 Activity room

3/F

4.00 Activity room

2/F

4.00 Activity room

1/F

Multi-purpose hall (with limited no. of columns)

Entrance lobby
8.00

SECTION G/F

4.00 Indoor pool (20 x 30 m on plan)

Your Senior Associate, Ms. QS Wong, asked you to reply to Mr. Archi-Lee’s email
above. She specifically asked you to include explanatory notes for any cost
adjustments as appropriate.

She attached a copy of the last Cost Estimate and Layout Version 1 presented last
week for your information.

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THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – 15TH SEPTEMBER 2015
PRACTICE PROBLEMS

25.00
VERSION 1

40.00

20.00

PLAN (ALL FLOORS)

40.00

R/F

Multi-purpose hall (with limited no. of columns)

Café
8.00

3/F

4.00
Activity rooms
2/F

4.00
Offices
1/F

SECTION 4.00 Offices / entrance lobby

G/F

4.00 Activity rooms

B/1

4.00 Activity rooms

B/2

Page 7
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – 15TH SEPTEMBER 2015
PRACTICE PROBLEMS

Version 1 : Preliminary Cost Estimate

Construction Floor Area : 10,800 m2

CFA : 10,800 m2 $ $/m2 CFA

Advance Works 7,500,000 694

Foundations 27,500,000 2,546
Basement Construction and ELS 40,000,000 3,704
Structural Frame 30,000,000 2,778
Facades 28,000,000 2,593
Architectural and building Works 58,300,000 5,398
Building Services 86,400,000 8,000
277,700,000 25,713
External Works and Drainage 15,000,000 1,389
Preliminaries (15%) 43,910,000 4,066
Contingencies (10%) 33,660,000 3,117
Total (@3rd Qtr 2015 prices) : 370,270,000 34,284

[20 Marks]

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THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – 15TH SEPTEMBER 2015
PRACTICE PROBLEMS

Question No. 2 – Tender Analysis

You are the QS consultant appointed by Winner Investment Ltd (Winner) in a

residential development. The tender for the Main Contract returned two weeks ago.
The three lowest tenders, in ascending order, submitted by Best Ltd., Hay Ltd. and
Green Ltd. are shortlisted for further analysis. Winner is concerned with the
following issues and would like to seek your advice how these issues should be
addressed in tender evaluation with respect to contractual and financial issues.
You are requested to advise Winner by an email.

Tenderer Deviations / Changes Issues

Best Best’s proposed site layout plan Winner is concerned with
indicates two gantries instead of one Best’s potential claim for
gantry shown in the approved hoarding extra HK$200,000 in event of
plan given in the tender documents. disapproval of its two-gantry
proposal in future. Also,
In Best’s build-up of his tender sum, a Winner is considering to ask
saving of HK$200,000 is shown as a the other two tenderers to
separate line item with his two-gantry offer the same proposal with
proposal. cost adjustment to its tender
sums.

Hay Hay’s proposed specialist sub- Winner is asking how to deal

contractor for design, supply and
installation of a curtain wall in the
clubhouse is not on the list of five
recommended sub-contractors given in
the tender documents.
with Hay’s proposal apart
from disqualification of its
tender.

Green In the tender interview, Green’s Winner considers it is worth

experienced project manager asked if accepting Green’s idea in
Winner would consider to include a event of awarding the
rate-only schedule for valuation of contract to Green.
common items in connection with
abortive works such as making holes in
built walls or slabs, taking down
partition, taking down and re-fixing
doors, finishes, light fittings etc.

[10 marks]

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THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – 15TH SEPTEMBER 2015
PRACTICE PROBLEMS

Question No. 3 – Defects Rectification

You are the quantity surveyor of the Consulting QS Firm engaged by the Employer
to prepare the tender documents for the construction of a new theatre building. It
is confirmed with the Employer and the Architect that there will be a Lift Nominated
Sub-Contract (Lift NSC) to the Main Contract (MC). The defects rectification
clauses in the MC are without amendment and the defects liability period (DLP) is
12 months.

Before the tender documents are officially issued, the Employer’s Project Manager
(PM) raised his concern to you about the duration of the defects liability period
which in his opinion 12-months DLP would be too short. He has come up with the
following two alternatives and would like to seek for your advice.

Alternative A

With regard to the several serious lift accidents that have happened in Hong Kong
in the recent years, the DLP for the Lift NSC should be 36 months, while the DLP
for the MC will remain as 12 months.

The PM queried if this would be contractually feasible?

Alternative B

In order to provide further and better quality assurance to the Employer, the DLP of
the MC including that of Lift NSC shall be 36 months in lieu of 12 months.

The PM would like to know what the contractual and financial implications would be
for such a change in the duration of the DLP?

[10 marks]

Page 10
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – 15TH SEPTEMBER 2015
PRACTICE PROBLEMS

Question No. 4 – Contract Execution and Assignment

A consulting quantity surveyor prepared a draft set of Main Contract documents

and the associated nominated sub-contract (NSC) documents for the Employer’s
comment.

The Employer’s Project Manager (PM) noted that he is required to sign on the
attestation page of the Main Contract but not on that of the NSC. He wonders if
this is a deliberate arrangement and asked for the rationale behind this. He also
doubts how the Employer’s interest could be safeguarded if the Employer is not a
party to the Nominated Sub-Contract.

The PM is also concerned that there are a couple of NSC packages that have to be
awarded prior to the award of the Main Contract. He asked for advice on how to
ensure the contractual proprieties are observed in awarding the sub-contracts in
the absence of the Main Contractor.

He asked if it is feasible for him to sign the sub-contract with the NSC followed by
assigning the sub-contract to the Main Contractor upon the award of the Main
Contract.

You, being the consulting quantity surveyor, is required to give your advice by way
of a letter to the PM.

[10 marks]

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 QUANTITY SURVEYING DIVISION

ASSESSMENT OF PROFESSIONAL COMPETENCE

FINAL ASSESSMENT 2015

PRACTICE PROBLEMS

DAY 2

Wednesday, 16th September, 2015

THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – 16TH SEPTEMBER 2015
PRACTICE PROBLEMS

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 is as follows:

(1) First day – Questions with varying marks but the aggregate mark is 50
marks
(2) Second day – Questions with varying marks but the aggregate mark is
50 marks

DAY 2

Question No. 1 Management Contracting and Partnering 10 marks

Question No. 2 Extension of Time 12 marks
Question No. 3 Instruction Clarifying Discrepancies 15 marks
Question No. 4 Interim Payment 13 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
Problems.

E. Refer also to INSTRUCTIONS TO CANDIDATES, which were issued to you

in advance.

Page 2
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – 16TH SEPTEMBER 2015
PRACTICE PROBLEMS

FIVE COMMON CRITERIA

Candidates are expected to demonstrate a reasonable level of professional

competence against five common criteria outlined below, sufficient for the
Assessors to answer the question “Would I 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.

2. Imagination: The assumption of essential supplementary information so as

to provide a full response; also the use of imaginary telephone inquiries,
quotations, notes, etc.

3. 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.

4. 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.

5. 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 3
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – 16TH SEPTEMBER 2015
PRACTICE PROBLEMS

DAY 2

16th SEPTEMBER 2015

Page 4
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – 16TH SEPTEMBER 2015
PRACTICE PROBLEMS

Question No. 1 – Management Contracting and Partnering

You are the Consulting QS of a very complex building development project which
involves multi-disciplinary aspects. The design is not fully developed at the
moment and will potentially present major technical risks. As such, the Employer
adopted Management Contracting and engaged a Management Contractor for the
project. While the project team is about to embark on the drafting of the Works
Contract, the Project Manager left the team due to illness. The succeeding Project
Manager is puzzled by the procurement arrangement and asked for your advice.

On a separate note, the succeeding Project Manager has joined a number of

partnering workshops in his previous projects. He thinks that the workshops were
useful but incomplete for enhancing partnering spirit. He would like to have your
advice for getting the works contracts more partnering friendly.

Please write a letter to the succeeding Project Manager: -

(i) Briefly explaining the essence of the Management Contracting and outlining
the organization structure of Management Contracting; and

(ii) Suggesting FIVE aspects in which consideration shall be given in drafting the
Works Contracts so as to make the Works Contracts more partnering-friendly.

[10 Marks]

Page 5
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – 16TH SEPTEMBER 2015
PRACTICE PROBLEMS

Question No. 2 – Extension of Time

The Employer has awarded a building contract for the construction of a 40-storey
residential building (‘the Contract’) to the Contractor. The Architect instructed the
Contractor to commence work on 2 January 2015. The Contract sum is HK$0.45
billion and the time for completion is 30 months.

Work on Site was commenced on 2 January 2015. On 4 February 2015 the

Architect instructed the Contractor’s site representative by a letter to defer work on
the residential building because of possible design changes that are now under
review by the Employer. The Architect had then in a letter dated 16 May 2015
stated there was no intention to alter the design of the residential building and that
the remaining work could proceed according to the original contract drawings.

The Contractor has not submitted any notice of delay or claim for additional
payment but he re-programmed to ensure the remaining works of the Contract
would be completed as soon as practicable. Despite what the Contractor has done,
the Architect considered that the Contractor had failed to carry out the works of the
Contract with due expedition. The Architect told the Contractor that he had
advised the Employer to deduct liquidated and ascertained damages from the
coming Interim Payment Certificate No. 9.

The Contractor disputed the Architect’s opinion and lodged a complaint to the
Employer among other things that no extension of time or additional payment for
the suspension has been assessed so far.

The Employer asked you, as the Consulting Quantity Surveyor, to advise him on
his contractual position. Please draft a letter in response to the Employer’s request
and explaining the relevant considerations in these circumstances.

(i) Whether the Architect’s letters dated 4 February and 16 May 2015 have
served as Architect’s Instructions?

(ii) What are the consequences if the Contractor fails to give the requisite
notices for delay and monetary claim arising from the postponement of the
works?

(iii) What are the considerations and implications for taking the Architect’s
advice to deduct liquidated and ascertained damages from the certified
amount in the coming Interim Payment Certificate No. 9?
[12 marks]

Page 6
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – 16TH SEPTEMBER 2015
PRACTICE PROBLEMS

Question No. 3 – Instruction Clarifying Discrepancies

You are the Consulting Quantity Surveyor for a new build project of a 40 levels
residential cum commercial block development. Level 1 to level 3 are for
commercial use whereas level 4 and above are residential units. The Main
Contract for the superstructure including building services installations is awarded
to Best Build Construction Ltd (Best Build).

In the early stage of the project, Best Build found that there was discrepancy
between the contract drawings and the bills of quantities on the capacity of the
water pumps for the Fire Hydrant System. Best Build issued a Request for
Information (RFI) on 24 February 2015 to the Architect and copied the same to the
Consulting Building Services Engineer enquiring whether they should place order
on the water pumps based on the capacities as shown on the contract drawings or
based on the item description stated in the bills of quantities. Best Build stated in
the RFI that they expected the Architect to respond the RFI within 14 days by 9
March 2015.

In late February 2015, the Employer agreed with a buyer that Level 3 to 4 would be
used for residential care homes for the elderly (an elderly center). The Architect
checked and confirmed that obtaining the license for the operation of the elderly
center will not contravene the lease conditions and the Deed of Mutual Covenant.
The Consulting Structural Engineer also confirmed that the floor to ceiling height
could accommodate the above provisions and there would be no structural impact
on the current design scheme including the foundation. However, the Consulting
Building Services Engineer advised that some building services systems would
have to be revised and one of the significant changes would be the additional
provision of the sprinkler system to the proposed elderly center.

Two weeks before the scheduled concreting works for the fire services water pump
room at Level 1, the Architect issued an instruction:

(a) to confirm the capacity of the water pumps shown on contract drawings for
Fire Hydrant System instead of that shown in the bills of quantities; and

(b) to add the sprinkler system and associated pipework for the elderly center.

Three days later, the project team receives a letter from the Contractor (see the
next page).

Page 7
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – 16TH SEPTEMBER 2015
PRACTICE PROBLEMS

Question No. 3 – Instruction Clarifying Discrepancies (Cont’d)

BEST BUILD CONSTRUCTION

12/F, BIG BUILDING, 3 CANNON DRIVE, HONG KONG

Letter to the Architect

Date: 11 March 2015

Architect’s Instruction No. 12

We received your Architect’s Instruction No. 12 on 9 March 2015 clarifying the capacity of
water pumps for the fire hydrant system.

With reference to the site progress meeting held on 5 March 2015 (last Thursday), we put
on record that the concreting work for the fire services pump room was scheduled to be
carried out on 13 March 2015 and your A.I. No. 12 will cause significant time and cost
implications to the progress of the works.

We write to serve you a written notice that since we have already placed the order for the
fire services pumps based on the pump capacity specified in the bills of quantities, we have
to re-procure the pumps according to your belated instruction and we shall likely incur
direct loss and/or expense, including but not limited to the abortive works, as the progress
of the Works is likely to be delayed or disrupted. The same also applies to the provision of
the sprinkler system.

We are yet to determine the exact time and cost implication and we will notify you in due
course.

Yours faithfully
For and on behalf of
BEST BUILD CONSTRUCTION

_______________________________

* end of the letter *

Page 8
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – 16TH SEPTEMBER 2015
PRACTICE PROBLEMS

Question No. 3 – Instruction Clarifying Discrepancies (Cont’d)

Before the next project meeting tomorrow afternoon with the Employer, the
Architect would like to have your advice on the following by an email:

1. Apart from the architectural aspects in regard to the design changes for an
elderly center, what other possible building services works or associated
builder’s works would be included in the cost estimate for such a design
change.

2. Would the Contractor be entitled to the claims as stated in their letter dated 11
March 2015? Please state the contract provisions based on which you have
provided your advice to the Architect.

[15 marks]

Page 9
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – 16TH SEPTEMBER 2015
PRACTICE PROBLEMS

Question No. 4 – Interim Payment

Evergreen Ltd. is the Main Contractor who has entered into a Contract with the
Employer for the construction of a residential development and you are the project
quantity surveyor of the appointed consulting quantity surveying firm.

The Contractor has just submitted an application for interim payment. As part of
the application, the Contractor applied for a payment in the sum of $694,300 for
the addition of 50m2 “ABC” brand folding partition to the multi-function room of the
club house. The installation has been completed and passed the relevant testing
and commissioning last week. There is no contract rate applicable for valuing that
variation and the Contractor provided a build-up of the claimed amount as follows:

Build-up of the addition

$/m2
(a) Supply and install “ABC” brand folding 12,075
partition (see sub-contractor’s invoice as
below)
(b) Add 15% profit and overheads 1,811
All-in rate 13,886

Total Addition = 50m2 @ $13,886 = $694,300

Sub-Contractor’s invoice shows the following rate build-up

$/m2
(a) Supply and deliver to site “ABC” brand 10,000
folding partition by ABC Company Ltd.
(b) Labour and plant placing into position 500
(c) Sub-total 10,500
(d) Add 15% profit and overheads 1,575
All-in rate 12,075

The Project Manager queried the reasonableness of the way in which the star-rate
is derived and would wish to have your opinion on the matter.

Besides, the Project Manager finds that the safety measures provided by the
Contractor are unsatisfactory and requests you to deduct 10% of the gross value of
work done from the payment valuation so as to press the Contractor for
improvement of the site safety.

You are required to draft an email to the Project Manager advising how the
aforementioned items should be responded in the valuation of the interim payment.
[13 marks]

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