Professional Documents
Culture Documents
COURSE OUTLINE
TEXT BOOKS
1. Elements of Quantities Surveying; S. Lee, W. Trench and A. Willis
2. Building Quantities explained; I. H. Seeley
3. Construction Quantity Surveying; Donald Towey
4. Estimating and Tendering for Construction work; M. Brook
ROLE OF QUANTITY SURVEYOR
Measurement work undertaken by quantity surveyor is varied and interesting and will include some
of the following;
In addition, there are tasks which are completely independent of the Q.S;
ROLE OF CONTRACTORS.
Main contractor is a person or a company that is in charge of the entirety of a construction project,
whether commercial or residential. He is employed by the client, on the advice of the architect. His
responsibilities include;-
SUB-CONTRACTOR
A sub-contractor is a party which agrees to perform part or all of the obligations of the main
contractor under a separate contract with the ultimate employer. There are two types of sub-
contractors;-
Domestic sub-contractors are employed directly by the main contractor i.e to supply to supply
materials, labour for the sections given to them.
Nominated sub-contractors are appointed by the client through the architect and is under the main
contractor. They are specialized in nature e.g gas installation, electrical installation, plumbing etc.
The architect may nominate or appoint a sub-contractor or supplier to carry out duties on a project
as long as the contractor makes no reasonable objection to their use.
Nominated suppliers are responsible for supplying goods and materials on behalf of the contractor.
Contracts should be formed between nominated parties and the contractor basically to ensure that
the materials supplied or work executed is of a satisfactory standard.
Lessen the cost of contractor i.e work can be done at a lower cost by sub-
contracting. The main contractors’ liability to retain, on a full time basis, all the
specialists necessary for day to day operations is reduced.
Specialized nature of work that the main contractor cannot undertake using his
labour office can be sub-contracted. Requires additional specialist advice or
expertise.
Overstretched resources; for instance when undertaking a particular big job, such as
a multi-site construction project.
Note that in all the cases the sub-contract terms are signed between sub-contractor and the
main contractor being responsible for supervision and payment in accordance with the main
contract conditions.
SUMS IN THE BILLS OF QUANTITIES
EX.
This term is defined in the SMM as the sum provided for work or for cost which cannot be
entirely foreseen, defined or detailed at the time the tendering documents are issued.
They are simply sums of money awaiting the architect’s instructions about their expenditure.
They are used where some part of work which is known to be required is uncertain in
character; whereas PC sums may as well be for work that is of known character.
Furthermore, provisional sums have a partial distinction from PC sums in that they may
represent work which will ultimately be carried out by the main contractor or by a specialist
contractor. As such they are to be read as not including any discount or attracting any profit
addition.
Provisional sums should be employed only for small pockets of work, where the character of
the work on conditions of working is so uncertain that no price can be estimated in advance.
EX.
PAYMENT CERTIFICATES
The certificates issued by the architect, approves the payment to the main contractor. There
are THREE types of certificates.
1. Interim certificate.
This is a temporary certificate that enables the contractor to receive regular payment so
that he will not have to carry the heavy financial burden of a complete project.
The QS prepares a valuation of the work properly executed and the total value of
materials and goods. He then passes it to the architect the final valuation upon which if
the architect is in agreement, he will issue an interim certificate which is in effect is an
obligation of the client to pay the contractor for the work done.
2. Penultimate certificate.
It means a certificate issued by the architect to the contractor signifying that the works
have been carried out and completed in accordance with the terms of the contract and
all adjustments to the contract price have been made in accordance there with.
At this stage the project is practically complete and the building can be transferred to
the client.
3. Final certificate.
This is the last certificate issued by the architect to the contractor to signify a state of
satisfactory completion, where to the opinion of the architect; the works are
substantially complete and can effectively and conveniently be used for the intended
purposes. This is issued one month from the expiring of defect liability period certificate
making good defects.
When a variation occurs for whatever reasons, it is the normal practice for the architect (or
supervising officer on government projects) to issue an instruction in writing to the
contractor informing them on the details. For convenience a pre-printed form is issued
known as a variation order or architect’s instruction. Each instruction is numbered
consecutively and a copy sent to the quantity surveyor.
Valuation of Variations.
It is the responsibility of the quantity surveyor to value the work contained in a variation. He
will usually do this in consultation with the architect’s surveyor. Assuming that there is a
priced bill of quantities or a schedule of rates (similar to bill but no quantities measured, just
priced description of work) the quantity surveyor can use the following methods of valuing
the work;
3. Use of star-rates;
This is where work is not comparable with that given in the contract bills but can be
measured and priced. The contractor’s original rates can neither be used nor adjusted
and therefore a fair valuation of the varied work must be agreed between the parties.
N/B – It is important to realize that not all variations will result in an additional cost.
Often work is deleted and will result in an omission from the final contract cost.
There can be as much as three-four weeks between the valuation and the payment.
And the payment is therefore always less than the work done at the time the
contractor receives the money.
In addition the amount usually equivalent to 10% of the valuation is deducted from
the value and held until the end of the contract. Half of this is released at the
beginning of the defects liability period or on practical completion. The object of the
retention is to create an incentive for the prompt and satisfactory performance of
the work and to provide security for client against default by the contractor.
a) Working Drawings
b) Specifications
c) Bill of Quantities
d) Form of tender
e) Schedule of rates
f) Conditions of contract
g) Articles of agreement
Working Drawings
They include plans, elevations, sections and large scale details of the proposed construction project
of which should be able to interpret the project at hand. Drawings of a building or a structure show
the arrangement of rooms and various dimensions i.e breadth, length and height with very few
descriptions of parts.
Specifications
These are documents prepared by architect to supplement the drawings. A specification specifies or
describes the nature and class of work and materials to be used in the various parts of work from
foundations to superstructure in details as well as methods of work (workmanship). It is a short
description of different parts of work, specified materials, proportions, qualities etc. For example,
foundation shall be in brickwork with lime mortar or cement mortar 1:6.
Bill of Quantities
This is prepared for the client by professional quantity surveyor whose fee is paid by the client.
Copies of bill of quantities are sent to the contractors to enable them to estimate when tendering.
BQ specifies the type of materials, method of work and the quantities of work to be done. When the
contract is signed, the priced BQ become part of the contract agreement and will be used for
preparation of the final account and settlement of any variations.
Form of tender
The form of tender is a pre-printed formal offer, usually in letter form, which ensures that all tenders
are received on the same basis and should be simple to compare. The tenderer fills in his name and
address and a sum of money (contract sum) as an offer to carry out and complete the works as
described in the conditions, drawings and bills of quantities.
Schedule of rates;
In appearance they are similar to a page of a bill of quantities without any quantities given. The
contractor simply inserts his rates upon which his tender is based against each description of work
included on the schedule. In practice only the major work items of significant cost and value are
included. Those rates can then be used to value any variations. Schedules of rates are also used to
obtain tenders for maintenance works.
Form of agreement
This is a legal document signed by both parties agreeing to abide to the conditions of contract. It
states that the contractor accepts to put up the building in accordance with drawing and
specifications and the client agrees for his part to pay the contract sum.
Conditions of contract
They are clauses in the agreement of which is stated and observed by the construction team. It
defines the responsibilities of the employer, contractor, architect, engineer and other non-technical
staff.
INTRODUCTON TO ESTIMATING.
Estimating revolves around the need for all interested parties involved in the
building process, but particularly the contractor to be able to predict as accurately as
possible the cost of construction.
The person responsible for the preparation of prices and estimates for building work
is called the estimator and it is who must use his skill, experience and judgment in
attempting to assess the extent of likely future costs.
ROLE OF ESTIMATOR.
1. Build up rates;
An estimator will build up in detail a price for each item contained in
the B/Q, allowing for the cost of the necessary labour, materials and
plant, together with other site operating costs i.e contingencies and
generally a percentage to cover overheads and profit.
2. Re-measurement;
This is commonly used with refurbishment work where the full
extent of work cannot be accurately determined. The quantities set
out in the B/Q are the estimated quantities and are not to be taken
as the actual quantities; the actual quantities are measured during
the construction phase i.e Rock excavation.
3. Prepare claims;
Compile claims submitted by the contractor for loss and expense
incurred while carrying out the works. Items that form the basis of a
claim;
Variations
Postponement of the works
Adjustment of provisional sums for undefined work
etc.
SOURCES OF COST INFORMATION.
b) Trade journals/Magazines;
Many journals concerned with the construction industry contain frequent
supplements on building costs.
c) Priced books/Lists;
They are usually published by Ministry of Public Works on annual basis. They contain
the following information;
i. Calculation of basic wage rates
ii. Daywork rates
iii. Professional fees for architects; quantity surveyors and consultant engineers
iv. Market prices for building materials
v. Labour constants etc.
Price books should be carefully studied to determine the basis used to calculate
market prices, labour rates and what percentage has been added to cover overheads
and profit for the rates given.
d) Schedule of rates;
Prepared by contractors and used as a basis for estimates during tendering.
e) Quotations;
These are obtained from specialists’ suppliers and sub-contractors.
f) Build up of rates;
Refer to the role of estimator as highlighted previously.
Overheads;
These are costs which are not directly related to labour or production in the site, but have
cost implication to the firm. For estimating purposes they include all items which are
necessary to the running of a building company and which are not normally charged to a
specific contract. They include;
Head office costs; stationery, telephone, lighting, office furniture, salaries etc.
Head office building; rent rates, depreciation, repairs, insurances etc.
Finance costs; interest on bank overdrafts, bank charges etc.
Overheads are usually related to turnover and the required percentage addition is included
in the unit rate build-up. For example, if the annual turnover of a company is Kshs. 50
million and fixed costs are Kshs. 2.5 million then the required %age is;
𝑲𝒔𝒉𝒔.𝟐.𝟓 𝒎
× 𝟏𝟎𝟎 = 𝟓%
𝑲𝒔𝒉𝒔.𝟓 𝒎
Profit;
This is the amount of money added to the net estimated cost as a return on invested capital.
The amount of profit required by a building contractor will vary considerably depending on
the size the company, turnover, market conditions, the contract value, the extend of the risk
and uncertainty included etc.
Profit and overheads may be included either as a percentage addition to measured work, or
in the preliminaries section or as a combination of both.
Unit rate;
These are rates per unit of measured work within the Bills of Quantities. They are described
in terms of LM, M2, M3, tonnes, item etc; all complying with the rules of SMM; for each unit
measured work the Estimator includes a price at which he/she considers that the work can
be completed.
The question of cost per hour to the contractor of employing an operative on the site is
referred to as ‘all-in’ labour rate. The term being so called because it embodies not only the
cost to the contractor of an operatives wages, but also of employing him and can therefore
be looked at from these two aspects, namely;
i. The direct cost (i.e wages, bonuses, overtime allowances, tool allowances –
applicable to craftsmen etc)
ii. Indirect cost (i.e Insurance contributions, levies, sick pay, employer’s liability
and 3rd party insurance etc.)
The total cost, when divided by the number of productive hours obtained, will give the all-in
rate per hour;
𝑻𝒐𝒕𝒂𝒍 𝒍𝒂𝒃𝒐𝒖𝒓 𝒄𝒐𝒔𝒕 𝒑𝒆𝒓 𝒚𝒆𝒂𝒓
𝑨𝒍𝒍 − 𝒊𝒏 𝒍𝒂𝒃𝒐𝒖𝒓 𝒓𝒂𝒕𝒆 = 𝑵𝑶. 𝒐𝒇 𝒑𝒓𝒐𝒅𝒖𝒄𝒕𝒊𝒗𝒆 𝒉𝒐𝒖𝒓𝒔 𝒑𝒆𝒓 𝒚𝒆𝒂𝒓
It includes all plant costs taken into account before taking a plant or machine to site e.g
mechanical soundness, insurance, operator and fuel. Also security and cost incurred while
transporting them to the site.
The estimator has to include plant costs in the tender and therefore there is need to
calculate the total the total hourly cost of using each item of plant in the site. However, the
procedure varies depending upon whether the plant is owned or hired.
Man-hours;
This is the average unit time required to do either skilled or skilled labour i.e when
excavation is done by a person at a rate of 2.5m3/hr. This is the output rate per hour for the
mentioned operation.
TYPES OF TENDERING (Tendering processes)
This is the manner in which contractor will be invited to submit tenders for work. The system
used is at the discretion of the architect for private works or the local authority or
government department for public works.
The common systems of tendering are;
1. Open tendering
2. Selective tendering
3. Negotiated tendering
OPEN TENDERING
The prospective employer advertises the project in the local or national press giving brief
details of the proposed works and issues an open invitation to contractors to apply for the
necessary documents.
Tender documents are sent to contractors who express an interest in the project. The
tenderer must pay deposit which would be returned by employer or client on receipt of a
bonafide tenderer. This prevents people who might decide to apply for curiosity sake. This
money also covers the cost of preparing documents.
The contractor submitting the lowest tender figure will normally be awarded the contract,
although the lowest does not have to be accepted.
Because of their public accountability local authorities often use this system.
a. When work is scarce many contractors may apply to tender for the work. However,
contract documents are costly to prepare as each contractor requires a set.
b. The contractor submitting the lowest tender may not have the ability, resources or
experience required for the project and this may lead to problems during the course
of work i.e poor quality building, bankruptcy hence unsuccessful completion.
c. There is always a lengthy delay to a contract being awarded due to time taken in
advertising the project, receiving replies, forwarding tendering documents and
finally receiving tenders.
d. The unsuccessful firms will have wasted a lot of time in skillfully estimating the bill of
quantities. Hence, regular clients cannot escape the extra cost.
a. Open tendering allows new firms to obtain work and prove their capabilities.
b. Due to no restrictions, a chance of favouritism in drawing up the list of tenders is
very low and is a valid point in public accountability.
c. There is maximum competition of which is obligation of tenders.
SELECTIVE TENDERING.
This differs from open tendering in that selected competent contractors are invited to
submit tender for the project. This may be done by architects writing to companies who
have the skills, experience and known ability to carry out the project.
These are firms with good stock of plant and equipment, experienced technical and
managerial staff, and can provide sufficient back-up resources to ensure satisfactory
completion of the contract.
Like the open tendering system the lowest tender price is normally accepted.
Guidance in selection
NEGOTIATED TENDERING.
Negotiated tenders can take many forms, but they basically occur when one contractor who
is considered to be the most suitable under the circumstances is selected to carry out a
particular contract by the architect or client. A price is negotiated until an agreement is
reached.
Cost estimates may be divided into at least two different types depending on the purposes
for which they have prepared and the amount of information known when the estimates are
prepared.
APPROXIMATE ESTIMATING
These are techniques of cost appraisal which can be carried out by the quantity surveyor.
They are used when estimation is needed forthwith and there is no efficient time to prepare
accurate bills of quantities and so the need to tender.
Before a prospective client can give approval for detailed and costly design work to proceed, he
must first conduct a general feasibility study during developmental phase of a project or part of the
study and economic analysis is undertaken to compare the cost of construction with potential
earnings that could be obtained upon the completion of the project.
The designer of a project must determine the costs of various design alternatives in order to obtain
an economical design that meets the owner budget. To obtain an approximate cost, the estimator
will adjust the unit cost resulting from quantities of material, workmanship, location and
construction difficulties.
Approximate estimating techniques are not only of use to the client, but also give valuable
assistance to the architect in comparison of sketch details, specifications and building method to
allow the most economic and efficient building design to evolve.
Having been appointed to the job of preparing an approximate estimate of the cost of the building,
the quantity surveyor can make use of the following methods in common use;
The methods used will depend on the size and complexity of the proposed building work and the
degree of accuracy required in the approximate estimate.
FUNCTIONAL UNIT METHOD.
This method is used mainly for public sector works where large sums of money are involved but
where little serious design work has been carried out and must be regarded as a very rough guide
suitable for preliminary investigations only.
It involves the establishment of target costs for functional units provided, with such costs being
frequently revised in the light of current Government and Local authority expenditure plans.
The technique is based on the fact that there is usually some close relationship between the cost of
a construction project and the number of functional units it accommodates. This may be in terms of;
Having determined the number of functional units required, the total cost of the project can then be
gauged from multiplying the number of units provided by the cost of providing each unit.
The cost of providing the unit itself would have to be calculated from the information extracted from
the document and pricing of previous similar contracts, with costs suitably adjusted for inflation,
changes in design, state of the market, site conditions, specification and regional changes.
Example;
Assume that a primary school intended to house 200 children has recently been built at a
cost of Kshs. 12 million. Calculate the cost of the school per place.
Solution;
Usually, the simplest and quickest method where deficiency of information exists. Client expresses
his/her requirements as structure e.g classroom to house 𝒙 number of students. For overall budgets
and calculations for investment purposes, it is a useful method of approximate estimating.
Demerit.
This method of estimating is not accurate as there are high number of uncertainties and variables, as
well as lack of comparable historical records. No two projects, or clients, are same. One cannot
compare a hotel in Mombasa to a hotel in Nyeri.
This type of estimate provides a very rough indication of building cost and should not be used in
viability/feasibility studies. It can be used for buildings and facilities, and for certain types of service
installation.
SUPERFICIAL/FLOOR AREA METHOD (SQUARE METRE METHOD)
This method is a simple method which can give reasonably accurate details if used with care and
consideration. In this method, some basic design work has been done hence the total floor area of
all storeys, measured between external walls and without deduction for internal walls, stair wells,
etc is calculated. This area is then multiplied by an appropriate rate per square metre of floor area
for that type of building in order to obtain the total approximate cost.
Example;
Let us assume a house has recently been built at a cost of ksh.2, 560,000/=. This is purely the cost
and does not include land, legal fees or finance charges. The dimensions of ground floor and first
floor are 10m by 8m measured within external walls.
Solution;
= 80 m2
= 80 m2
The cost of this particular house can now be expressed in terms of price per m2 to build.
Having established this cost per m2 we can now use this method to give an approximate estimate on
future projects of a similar nature.
- Buildings compared must be of a similar shape, specifications, design and storey height.
- Contractors’ estimates which are compared should be from similar sized companies and
work capabilities; in order to obtain the total approximate cost.
- Applicable only to building with large floor areas.
- Inflexible as it does not consider variation in design.
- The method is quick and simple to use though, as in the case of the unit method, it is
imperative to use data from similarly designed projects.
- The unit of measurement (area) is meaningful to both the client and the design team with it
being directly related to usable floor space.
- Cheap to client and can easily understand.
- It is useful in setting a cost ceiling/limit for the project or providing a preliminary estimate.
This is a preliminary estimate or an approximate estimate, and is prepared on the basis of the cubical
contents of the building. The cubic rate is deduced from the cost of a building having similar
specifications and construction.
The total cost is found by multiplying the cubical content of the building, (length × breadth × height)
by its cubic rate. The length and breadth should be taken as the external dimensions of the buildings
at the floor level and the height are taken from the floor level to top of roof.
For storeyed building the height should be taken from the floor level of one storey to top of the next
higher floor.
Cubic unit rate method is more accurate as compared to the superficial area method as the height of
the building is considered.
When this method was suggested, it aimed at overcoming the problems detected in other
approximate estimating methods, by taking into account variations in plan shape and storey height.
Unfortunately, the method was never totally adopted by construction professionals because it
requires much more calculations than other approximate methods and because the rates needed
cannot be directly extracted from historical data.
Basically, the utilization of the method starts with the measurement of the building enclosure
(comprising floors, external walls and roof areas). Each area is then multiplied by an appropriate
weighting factor, thereby resulting the number of storey enclosure units.
Limitations.
Merit.
- Relatively accurate as it takes into account the difference in plan shape, total floor area,
vertical position of the floors, overall height, storey height, extra costs of providing usable
floor areas below ground.
APPROXIMATE QUANTITIES (ELEMENTAL UNIT METHOD)
In this method the building is divided into elements such as foundations, structural frame, external
walls, internal walls, floor finishes etc. Each element is sub-divided into components. A rate is
calculated for the component by breaking the component up into the individual items to be priced
per measurable unit of the component. Example, a slab can be broken up into concrete,
reinforcement, formwork, and power floating.
However, it relies on a significant amount of design work having been completed and can be a
lengthy process since it is essentially a simplified version of preparation and pricing of traditional bill
of quantities.
The method can be regarded as being the most accurate of all approximate estimating techniques as
it relies on availability of considerable information.