GHANA INSTITUTION OF SURVEYORS

QUANTITY SURVEYING DIVISION

PRACTICAL APPLICATION OF QUANTITIES
BUILDING ECONOMICS
DATE: TUESDAY 29TH SEPTEMBER 2015 MORNING PAPER
TIME ALLOWED 2 ½ HOURS

INSTRUCTION TO CANDIDATES: ANSWER QUESTION 1 AND ANY THREE (3) QUESTIONS IN

SECTION B

SECTION A

QUESTION 1

The Collective Agreement between the Association of Building and Civil Engineering
Contractors of Ghana (ABCECG), the Construction and Building Materials Workers’ Union
(CBMWU) of the Trades Union Congress (TUC) of Ghana and the Construction and Allied
Workers Union (CAWU) is the recognised agreement governing all matters connected with the
employment or non-employment of labour in the Construction Industry.

Using this agreement as a guide, compute the All-In Rate for a Carpenter Grade 1 with a daily
basic wage of twenty-one cedis and eighty-five pesewas (GHS21.85) and hourly rate of two
cedis and seventy-three pesewas (GHS2.73). (You may make suitable and necessary
assumptions for your computation)

(40 marks)

SECTION B

QUESTION 2

a. What benefits would an investor/client in a shopping mall complex derive from

i. A Cost Plan
ii. Cost Control mechanisms
iii. Project Cost Analysis

b. Explain the following terms in reference to project finance

i. Building to Budget
ii. Building to Cost

(20 marks)

1
QUESTION 3

a. Distinguish between “Preliminaries” and “Preambles”. List ten major items with monetary
value in the “Preliminaries Bill”
b. Draft Preliminary clauses for two of the following preliminary items suitable for a five
storey office block with a floor area of 2,000m2
i. Water for the works
ii. Temporary Lighting
iii. Setting Out

(20 marks)

QUESTION 4

Write brief notes on the following illustrating with examples wherever possible, their
implications within an estimate.

a. Value Added Tax

b. Basic Price List
c. General and Special Attendance on Nominated Sub-contractors
d. Mark-up

(20 marks)

QUESTION 5

Unit rates for the same item on a contract may vary between different contractors. Explain how
this situation is most likely to arise with reference to examples. (20 marks)

QUESTION 6

In his invitation to tender, the client has requested that an alternative price be submitted for a
reduction of 15weeks in the contract period.

Outline the various measures which may be taken by the contractor in order to achieve this and
illustrate how the estimator would amend his pricing strategy to encompass the alternative. (20
marks)