practice-problem2006

THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – AUTUMN 2006
PRACTICE PROBLEM
Wednesday, 20th September, 2006
Page 1 of 14
PRACTICE PROBLEM
QUESTIONS FOR THE FIRST DAY - 10:00 am to 2:00 pm, Wednesday, 20th September, 2006
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 – Two main questions worth 25 marks each.
(2) Second day – Two main questions worth 25 marks each.
C. All Main Questions and Sub-Questions are compulsory.
D. The total mark is 100. The overall pass mark is 55. Marks will be assessed to
fractions of one unit.
E. Refer also to INSTRUCTIONS TO CANDIDATES which were issued to you in

advance.
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 I employ this person as a qualified Professional Surveyor?”.
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. Judgment: 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 client. Correct syntax and good professional style in
letters and reports are important. Candidates should clearly convey their
interpretations and proposals.
Page 2 of 14
PRACTICE PROBLEM
QUESTION 1 – Estimating (total 25 marks)
In this question you are to assume that you are employed in a Quantity Surveying
consultancy firm.
Part A
Your Director requests you to prepare a preliminary cost estimate in elemental format
for a proposed commercial development based on a cost analysis of a similar project
completed in late 2004 for discussion with the Employer and Architect tomorrow
afternoon. According to the Director the estimate is to assist the Employer to
evaluate the financial viability of the proposed development. Preliminary information
provided by the Employer is as follows:-
(i) Site location : in Central and the entire site is currently occupied by an old 10
storey high office building built in the 1950s with no basement.
(ii) Site area : 2,500 m2
(iii) Plot Ratio : 15
(iv) Proposed Development :
No. of floors GFA Storey height

(m2 ) (m)
Basement - Carpark For 70 cars plus --- 3.30m for
loading and carparking and
unloading bays 7.00 m for loading /
unloading
Podium - Retail 3 levels 6,000 5.00m
Tower - Grade A 25 storeys 31,500 4.20m with top two
Office floors 4.50m high
(A copy of the Simple Cost Analysis of the previous similar project is attached to this
Question 1).
(15 marks)
Part B
The Employer further advises that he is now contemplating applying for bonus GFA
through dedication and there is a possibility of obtaining a bonus GFA of 1,260 m2. He
would like your advice on the following:
a) cost comparison between adding one floor to the building without altering the
floor plan, or spreading the bonus GFA equally on each typical floor.
(6 marks)
b) apart from the different initial construction costs, what other considerations
should be taken into account when comparing the overall financial viability of
the two options mentioned in a) (4 marks)
Page 3 of 14
PRACTICE PROBLEM
QS and Partners
Quantity Surveyors
Construction Cost Consultants
Simple Form of Cost Analysis
Project No : 123
Project Name : Commercial Development
Project Location : HKIL 1234, Central, Hong Kong
Date : April 2004
Prepared By : Project QS
Page 4 of 14
PRACTICE PROBLEM
Cost Analysis for Commercial Development at HKIL 1234, Central, Hong Kong
PROJECT TEAM
Client & Name : Ever Success Development Limited

Architect : Advance Architects Limited
Structural Engineers : Solid Engineering Consultant Limited
Services Engineers : M&E Engineering Consultant Limited
Contractor : Modern Construction Co Ltd.
Quantity Surveyor : QS and Partners
PROJECT DETAILS
Project Description & Site Conditions : -
Vacant Site on reclaimed land
Commercial building comprising :
Basement (B1-B3) : carparking and loading and unloading area
Podium (G-2/F) : office entrance lobby and retail
Tower (3/F-Roof) : 22 office floors and M&E floors
Refer also Outline Specification
Market Conditions : -
Substructure commenced in December 2001 and was completed in April 2003
Superstructure contract commenced in May 2003 and was completed in
November 2004
The market conditions were extremely competitive.
CONTRACT DETAILS
Contract Particulars
Type of Main Contract (Superstructure) :

Basis of Tender: Bills of Quantities, Fixed Price, Selective Tender
Number of tenders issued : 5

Number of tenders received : 5
Page 5 of 14
PRACTICE PROBLEM
AREAS ANALYSIS
Floor Construction GFA Arcade Floor to
Floor Areas Areas Floor Height
2 2 2
(m ) (m ) (m ) (m2)
Upper M&E Floor 500 - - 4.00

M&E Floor 1,000 - - 4.00
24 2,000 1,875 - 4.00
23 2,000 1,875 - 4.00
22 2,000 1,875 - 4.00
21 2,000 1,875 - 4.00
20 2,000 1,875 - 4.00
19 2,000 1,875 - 4.00
18 2,000 1,875 - 4.00
17 2,000 1,875 - 4.00
16 2,000 1,875 - 4.00
15 2,000 1,875 - 4.00
14 2,000 1,875 - 4.00
13 2,000 1,875 - 4.00
12 2,000 1,875 - 4.00
11 2,000 1,875 - 4.00
10 2,000 1,875 - 4.00
9 2,000 1,875 - 4.00
8 2,000 1,875 - 4.00
7 2,000 1,875 - 4.00
6 2,000 1,875 - 4.00
5 2,000 1,875 - 4.00
4 2,000 1,875 - 4.00
3 2,000 1,875 - 4.00
M&E Floor 2,000 - - 3.00
2 3,000 2,500 450 4.50
1 3,000 2,500 860 4.50
Ground 3,000 2,200 - 6.00
10 medium lorry / 5 long
B1 2,900 7.00
lorry
B2 2,900 55 cars/5 motor bicycles 3.30
B3 2,900 66 cars/5 motor bicycles 3.30
Total 65,200 48450 1,310 127.60
Page 6 of 14
PRACTICE PROBLEM
ELEMENTAL COST ANALYSIS
Construction Floor Area : (M2) 65,200
Element Total Cost Cost per m2
Construction
of Element
floor area
$ $/m2 %
1.0 SITE PREPRATION
WORKS
1.1 Demolition & Alterations 0 0 0.00%
1.2 Asbestos Removal 0 0 0.00%
1.3 Site Formation Works 0 0 0.00%
SUB-TOTAL 0 0 0.00%
2.0 SUBSTRUCTURE
2.1 Foundation 47,700,000 732 4.87%
2.2 Basement Structure 143,437,500 2,200 14.63%
SUB-TOTAL 191,137,500 2,932 19.50%
3.0 STRUCTURE
3.1 Columns 11,900,000 183 1.21%
3.2 Floors 38,165,000 585 3.89%
3.3 Structural Walls 12,070,000 185 1.23%
3.4 Staircases 2,125,000 33 0.22%
SUB-TOTAL 64,260,000 986 6.55%
4.0 ROOF
4.1 Roof Structure 6,375,000 98 0.65%
4.2 Roof Coverings 7,310,000 112 0.75%
SUB-TOTAL 13,685,000 210 1.40%
5.0 FAÇADE
5.1 External Walls 152,915,000 2,345 15.60%
5.2 External Windows & Doors Incl 0 0.00%
SUB-TOTAL 152,915,000 2,345 15.60%

Page 7 of 14
PRACTICE PROBLEM
6.0 INTERNAL WALL & FINISHES

6.1 Internal Walls 36,890,000 566 3.76%
6.2 Internal Doors 11,050,000 169 1.12%
6.3 Internal Floor Finishes 46,835,000 718 4.78%
6.4 Internal Wall Finishes 32,980,000 506 3.37%
6.5 Internal Ceiling Finishes 16,915,000 259 1.72%
SUB-TOTAL 144,670,000 2,218 14.75%
7.0 FITTINGS & FURNITURE'S 24,480,000 375 2.50%
8.0 ELECTRICAL AND

MECHANICAL SERVICES
SUB-TOTAL 256,094,800 3,929 26.12%
9.0 EXTERNAL WORKS 5,525,000 85 0.57%
ELEMENTAL SUB-TOTAL 852,767,300 13,080 86.99%
10.0 Preliminaries 114,750,000 1,760 11.71%
11.0 Contingencies 12,750,000 196 1.30%
TOTAL COST 980,267,300 15,036 100%
Page 8 of 14
PRACTICE PROBLEM
OUTLINE SPECIFICATION
a. Foundation
30 No. 3,500 mm diameter bored foundation piles (average 45 m deep), and
associated pile cap for tower and 25 No. 2,000 mm diameter ditto for podium
b. Basement Structure
Comprising excavation, temporary shoring and support and geotechnical monitoring during
construction.
Basement structure comprising 1,200 mm reinforced concrete diaphragm wall to perimeter of

basement, 1,000 mm thick basement bottom slab, 500 mm reinforced concrete suspended B1 and
B2 slabs, 400 mm reinforced concrete suspended ground slab, reinforced concrete columns and
core walls below ground floor.
c. Structural Frame
Reinforced concrete frame including core walls, beams, columns, slabs and staircases
d. Roof
Roof Structure : Reinforced concrete suspended roof slab.

Support structures for satellite dish and gondola
Roof Coverings
Tower : Precast concrete tiles on min. 20 mm cement sand screed on 75 mm
insulation on waterproofing membrane on screed reinforced with mesh
Podium : Natural granite on min 20 mm cement sand screed on 75 mm insulation

on waterproof membrane on screed reinforced with mesh
e. External Façade
Tower : Unitised aluminium curtain wall system comprising

a) 2.5 m high vision panel with sealed double glazed units
b) 1.5 m high spandrel panel with tempered glass, fibreglass insulation
and aluminium back panel
Page 9 of 14
PRACTICE PROBLEM
Podium : Clear glass shopfront with glass canopies on ground floor

Double storey glass wall system to office entrance
Unitised curtain wall to 2/F and 3/F with stone cladding
External Doors : Stainless steel doors generally at street level
f. Internal Walls
Tower : Concrete block walls and reinforced concrete walls

Marble toilet cubicle partitions
Podium : Glass shopfront

Concrete block walls and reinforced concrete walls
Marble toilet cubicle partitions
Carpark : Concrete block walls and reinforced concrete walls
g. Internal Doors
Solid core timber doors with metal frames to office areas and
Tower :
toilets
Steel doors and frames to plantrooms
Solid core timber doors with metal frames to office areas and
Podium :
toilets
Steel doors and frames to plantrooms
2 hour fire shutters for compartmentation
Carpark : Solid core timber doors with metal frames to fire escape and circulation
Stainless steel door and frames to plantrooms
h. Internal Finishes
Refer Finishes Schedule
i. Fixtures & Fittings
Galvanised mild steel balustrades and railings, cat ladders, etc.
High quality sanitary wares and toilet accessories to office toilets.

Page 10 of 14
PRACTICE PROBLEM
j. Building Services
Building services provisions to an A Grade office building, comprising:
Plumbing & Drainage

Electrical
MVAC
Fire Services
Lifts and Escalators
Extra Low Voltage System – CCTV, PABX, Satellite TV, broadband services, CABD, security
system
External Lighting
Window Cleaning System
Carpark control system
Builder's Works : Allowance for concrete machine bases, hoisting beams, etc. for
services installation and miscellaneous builder's works
Builder's Profit and Attendance : Main Contractor's allowance for profit and
attendance on services installations
k. External Works
Drive way, external pavings, planters, flag poles and soft landscaping area, etc.
l. Preliminaries
Main Contractor's management, insurances, levies, temporary services, hoarding, site office,
supervision and attendance, plant, tools, equipment, scaffolding, shoring, cleaning, protection of
the works, etc.
m. Contingencies
Allowance for construction contingency
Page 11 of 14
PRACTICE PROBLEM
FINISHES SCHEDULE
Location Floor Wall Ceiling
Main Lobby Granite slab (P.C. Granite slab (P.C. Metal suspended ceiling (P.C.
and Upper $1,800/m2) on screed $1,800/m2); dry fixing $1,300/m2 supply and install)
Lobby
Typical Lift Granite slab (P.C. Granite slab (P.C. Metal suspended ceiling (P.C.
Lobby and $1,000/m2) on screed $1,000/m2); dry fixing $650/m2 supply and install)
Carpark Lift
Lobby
Retail Arcade Marble tile (P.C. Marble tile (P.C. Metal suspended ceiling (P.C.
$500/m2) on screed $500/m2) on screed $100/m2)
Office Unit 300 mm Raised floor Emulsion paint on Metal panel suspended ceiling
system plaster (P.C. $350/m2 supply and
install)
Staircase Nosing tile on cement Cement paint on c/s Limewash on off-form concrete
screed (P.C. $50/m2) plaster
Toilet and Granite slab (P.C. Granite slab (P.C. Moisture resistant metal
Toilet Corridor $1,000/m2) on screed $1,000/m2); dry fixing suspended ceiling (P.C. $650/m2
supply and install)
Typical Floor Trowelled smooth on Cement paint on plaster Limewash on off-form concrete
M&E Room cement sand screed
Basement Floor hardener and Cement paint on Cement paint on concrete

carpark cement screed concrete
Page 12 of 14
PRACTICE PROBLEM
IN-HOUSE TENDER PRICE INDICES

Year Qtr Building M&E
1 862 115
2 842 116
2001
3 807 113
4 721 106
1 687 103
2 742 101
2002
3 692 104
4 733 102
1 720 107
2 723 110
2003
3 722 111
4 681 111
1 685 109
2 712 113
2004
3 704 113
4 701 112
1 711 112
2 716 110
2005
3 718 114
4 697 113
1 714 116
2006
Page 13 of 14
PRACTICE PROBLEM
QUESTION 2 (total 25 marks)
Your client Developer wishes to add a transfer lift tower with two lifts to his existing
walk-up 3-level shopping mall in Tsimshatsui, and is working with his leasing agent on
the arrangements for temporary termination of leases of affected tenants to facilitate
such construction work. Your firm acts as the consultant project quantity surveyor for
the Developer for the project.
Part A
At the request of the Developer, your firm is required to give comments on a
preliminary overall project programme of the transfer lift tower prepared by the
Developer’s programmer. Your comments are required more specifically on the logic,
inter-activity relationship and durations, with the aim of improving the overall
programme and to have the transfer lift tower open and in operation before June 2008.
A copy of the original programme is attached for reference.
You are required by your Director to mark your comments directly on the attached
programme, with your annotation notes fully detailed in an internal memo to your
Director. The logic and assumptions are to be stated. (12 marks)
Part B
In a recent project meeting, you were advised that the Employer would wish to use
machine-roomless lifts instead of the original hydraulic lifts for the proposed transfer
lift tower. Preliminary information from the Building Services Engineer suggested that
using machine-roomless lifts would require 2 extra months for manufacture and
delivery of the lifts.
The Employer wishes to seek your opinion on the various alternative procurement
arrangements for the lifts to overcome the apparent extra time requirement for using
the machine-roomless lifts so that the opening of the transfer lift tower could still be
achieved before June 2008. Draft a letter accompanied by a simple programme (to
be marked on the space provided in the programme attached in Part A) to illustrate
your advice to the Employer which should include an analysis of the risks of the
various alternative procurement arrangements and your recommended proposal.
(10 marks)
Part C
In a recent discussion, the Architect and Engineer proposed to tender out the transfer
lift tower contract with the time for completion to be left to the tenderers to fill in in the
Form of Tender. The Employer asked how tenders with differing tender amounts and
different periods for completion can be compared in order to give a realistic financial
comparison. Draft a memo to reply to the Employer’s concern.
(3 marks)
** END OF PAPER **
Page 14 of 14
OVERALL WORK PROGRAMME REF. P-LTC-001 (Rev. A)
PROPOSED CONSTRUCTION OF TRANSFER LIFT TOWER AT 12345 CHATHAM ROAD KOWLOON ( Question 2 - Part A & B)
2006 2007 2008
DESCRIPTION OF WORK ITEMS
Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug
OVERALL PROGRAMME OF THE TRANSFER LIFT TOWER
1.0 SCHEMATIC
1.1 OUTLINE SCHEMATIC PROPOSAL Notes to Candidates
DESIGN 1. Candidates are required to mark their
1.2 COMMENT BY THE EMPLOYER
annotations of comments (e.g. Comment A,
2.0 PROJECT DESIGN 2.1 CONSOLIDATED DESIGN PROPOSAL
Comment B, Comment C etc.) directly on this
2.2
ENDORSEMENT OF PRELIMINARY DESIGN BY THE sheet, with arrows pinpointing the
EMPLOYER
commented item/activity bar.
2.3 GENERAL BUILDING PLAN PREPARATION (No Comments required to this shaded part of the programme)
2. Details of comments for each annotation are
2.4 GBP APPROVAL BY GOVERNMENT AUTHORITIES
to be written on the answer sheet of the
FOUNDATION AND SUPERSTRUCTURE DESIGN answer book, with clear cross referencing.
2.5
AND PREPARATION FOR SUBMISSION
2.6 APPROVAL BY STATORY AUTHORITIES 3. Proposed new activity bars (with new
start/finish and/or new duration) are to be
2.7 DETAIL DESIGN
marked directly on this sheet against the
2.8 COMMENT BY THE EMPLOYER corresponding activity item, in colour other
2.9 ENDORSEMENT BY THE EMPLOYER
than black.
QUOTATION - PREPARATION, ISSUE, ASSESSMENT,

3.1
APPROVAL, AWARD
3.0 GROUND
INVESTIGATION 3.2 APPLICATION FOR EXCAVATION PERMIT
WORKS
3.3 GROUND INVESTIGATION SITEWORKS
PREPARATION OF TENDER DOCUMENTATION BY

4.1
QS
4.2 TENDER
4.0 TENDER
4.3 TENDER ASSESSMENT
4.4 TENDER APPROVAL
5.1 FOUNDATION WORKS
STRUCTURAL STEEL FABRICATION AND

5.2
INSTALLATION
5.3 LIFT DELIVERY

5.0 SITE
CONSTRUCTION
WORKS
5.4 LIFT INSTALLATION
5.5 ARCHITECTURAL AND M&E WORKS
5.6 STATUTORY INSPECTION / APPROVAL
6.0 HANDOVER 6.1 HANDOVER

PRACTICE PROBLEM
Thursday, 21st September, 2006
Page 1 of 15
PRACTICE PROBLEM
st
QUESTIONS FOR THE SECOND DAY - 10:00 am to 2:00 pm, Thursday, 21 September, 2006
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 – Two main questions worth 25 marks each.
(2) Second day – Two main questions worth 25 marks each.
C. All Main Questions and Sub-Questions are compulsory.
D. The total mark is 100. The overall pass mark is 55. Marks will be assessed to fractions
of one unit.
E. Refer also to INSTRUCTIONS TO CANDIDATES which were issued to you in

advance.
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 I employ this person as a qualified Professional Surveyor?”. 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. Judgment: 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 client. Correct syntax and good professional style in letters
and reports are important. Candidates should clearly convey their
interpretations and proposals.
Page 2 of 15
PRACTICE PROBLEM
st
Part A - Warranty
Following a heavy rainstorm, Mr. Tenant, who occupies the penthouse unit of a serviced
apartment, found that water was dripping from the ceiling and running down along the wall
of the living room. Mr. Tenant was very unhappy because the water seepage totally ruined
his antique rug he had previously bought from an auction at a price of $ 250,000.
Mr. Tenant wrote to the Developer, Reliable Estates Ltd. (“REL”), demanding
reimbursement of not just the cost of rectifying the waterproofing, the ceiling and wall
finishes, but also the cost of the antique rug. He also threatened to take legal action if REL
refused to pay.
The Project Manager of REL immediately called up the Main Contractor, Builder &
Associates (“B&A”) and demanded that B&A should deal with the matter. However, B&A
gave the following reply:
a. B&A could not possibly be responsible as the waterproofing works were not carried
out by them but by NSC Ltd., a specialist Contractor nominated by the Architect.
B&A averred that NSC Ltd should pay for the cost of the repair and damage.
b. B&A also said the waterproofing was tested satisfactorily and accepted by the
Architect during the final inspection at the end of the Defects Liability Period.
The Project Manager is anxious to understand his company’s contractual position. He is

worried that REL may end up paying the full amount of the damages to Mr. Tenant since
there was no contractual relationship between REL and NSC Ltd.
A meeting is set up for tomorrow afternoon to discuss the above issue. Your Senior
Associate asks you to prepare a memo which should address the following issues which are
likely to be raised by REL during the meeting:-
3A.1 Explain and clarify whether there is a contractual relationship between REL and
NSC Ltd. (5 marks)
3A.2 NSC Ltd. has provided a Warranty for the waterproofing system, a copy of which
is attached. Explain to the Project Manager the difference if REL were to rely on
the terms and conditions of the Warranty and those under the Sub-Contract to
obtain remedies from NSC Ltd. with respect to recovering (a) the cost of the
defective waterproofing, ceiling and wall finishes; and (b) the damage to the
ruined rug incurred by Mr. Tenant. (5 marks)
3A.3 Advise the validity of NSC Ltd.’s argument that they are not obliged to rectify the
said defect as it was not included in the Defects Lists and any defects previously
identified had been properly tested and accepted by the Architect? (3 marks)
Page 3 of 15
PRACTICE PROBLEM
st
DELUXE RESIDENTIAL DEVELOPMENT, NKIL 123, KOWLOON TONG
WATERPROOFING SYSTEM WARRANTY
This DEED OF WARRANTY is granted this 3rd day of March, 2005.
BETWEEN
Messrs. NSC Ltd., whose registered office is situate at

No. 3344, Hip Hop Building, Tai Po, New Territories (the "Nominated
Sub-Contractor"); and
Messrs. Builder & Associates Ltd. whose registered office is situate at No. 33, Think Tank Building, Tai Kok
Tsui
(the "the Main Contractor"); (hereinafter collectively called “the Warrantors”); and
Messrs. Reliable Estates Ltd. whose registered office at 29 Waterloo Avenue, Kowloon Tong, Hong Kong
("the Employer" or "the Warrantee").
WHEREAS
A. By an agreement dated : 21st October 2004 made between the Main Contractor of the one part
and the Employer of the other part has entered into a contract (hereinafter referred to as "the Main Contract") for
Construction of the Main Contract Works for Deluxe Residential Development at NKIL 123, Kowloon Tong
(hereinafter called "the Works") as therein more particularly described in conformity with the provisions of the Contract.
B. By an agreement between the Main Contractor and the Nominated Sub-Contractor dated 1st November 2004
(the "Sub-Contract") which expression shall, where the context permits, include any amendment, or variations thereto
or waiver thereof permitted in accordance with this Deed, the Main Contractor has sub-contracted part of its obligations
under the Construction Contract and the Nominated Sub-Contractor has undertaken to carry out Supply, Delivery
and Installation of the Watertex Waterproofing System at the Deluxe Residential Development.
C. In consideration of the Employer approving the Warrantors for the Watertex Waterproofing System ("the System")
as more particularly described in a contract for the construction of the Works ("the Main Contract") between the
Employer and the Main Contractor, the Warrantors have agreed to warrant the System in the manner hereinafter
appearing.
NOW the Warrantors hereby agree with the Employer as follows :-
1. The Warrantors hereby irrevocably and unconditionally warrant to the Employer the design (as described in the Technical
Specification and Drawings), material and workmanship of the System in accordance with all technical requirements
specified in the Main Contract and has been carried out in a safe, good and workmanlike manner to a quality consistent
with a development of the same nature as this Development and in accordance with good and proper building practice.
2. The Warrantors warrant to the Employer that the System shall remain free from leakage, seepage and similar deficiencies
or latent defects in the performance of the System, and that the System shall remain fit for its intended purpose.
Page 4 of 15
PRACTICE PROBLEM
st
DELUXE RESIDENTIAL DEVELOPMENT, NKIL 123, KOWLOON TONG
WATERPROOFING SYSTEM WARRANTY

(Cont’d)
3. Should any deficiencies or latent defects as referred to in clause 2 hereof become apparent in the System, or any part
thereof, the Employer shall notify the Warrantors accordingly and the Warrantors shall forthwith repair or replace the
affected portion and restore the same to its original condition to the Employer's satisfaction and shall bear all costs in
connection therewith.
4. The Warrantors shall fully indemnify and hold harmless the Employer against and from any losses, claims, actions, costs,
expenses, damages, charges and liabilities which may arise as a result of any breach by the Warrantors of their
obligations under this Warranty.
5. Without prejudice to Clauses 1 to 4 above, if the Warrantors fail to comply with Clause 3 above, the Employer shall be
entitled to engage such specialist contractor(s) as it may consider appropriate to carry out the outstanding remedial works
and rectify all other defects and outstanding works and the cost and expenses so incurred shall be borne by the
Warrantors.
6. The Warrantors shall not be liable for the cost of the said repair, replacement and restoration of the System if the said
deficiencies in the System, or any part thereof, arise as a result of accident, undue impact, abuse, natural conditions
exceeding those specified in the Main Contract and/or the Sub-Contract or interference by others.
7. The Warrantors shall reimburse to the Employer any direct loss and/or expense incurred by the Employer for the removal,
repair, rectification and replacement of other decorative works, fixtures, fittings and the like resulting from the failure of the
System, or any part thereof, and its subsequent rectification under clause 3 hereof.
8. This Warranty shall remain in full force and effect for a period of 10 years from the issue of the Certificate of Completion of
Making Good Defects.
9. The provisions of this Warranty shall be without prejudice to, and shall not be deemed or construed so as to limit or
exclude, any right or remedy which the Employer may have against the Warrantors whether under contract or in tort or
otherwise.
10. This Warranty shall not deprive the Employer of other action, right or remedy available to him at Common Law.
11. This Warranty shall be construed and governed in accordance with the Laws of Hong Kong Special Administrative Region
and the Warrantors hereby agree to submit to the non-exclusive jurisdiction of the Courts of Hong Kong.
IN WITNESS whereof this Warranty has been executed this 3rd day of March 2005.
THE COMMON SEAL OF THE COMMON SEAL OF
NSC Ltd. B&A Ltd.

NSC Ltd. Builder & Associates Ltd.
(The Nominated Sub- (the Main Contractor/the Warrantor)
Contractor /the Warrantor)
was hereto affixed in the presence was hereto affixed in the presence
of : Mr. David Chan of : Mr. John Wu
Page 5 of 15
PRACTICE PROBLEM
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QUESTION 3 (cont’d)
Part B Omission of a Significant Portion of the Works
In order to offset delay caused by late finalization of the interior design of the Club House, the
Architect has issued an Architect’s Instruction deleting the whole of the interior fitting out work
which is a significant portion of the Contract Works for the Club House Contract. The intention
of the Architect is to contract the interior fitting out works to a separate Contractor such that he
could avoid granting extension of time and any associated loss and/or expense due to this
potential late instruction.
You, as the Contractor’s Quantity Surveyor, are asked to write formally to the Architect
addressing the contractual implications under the terms and conditions of the Contract due to
such omission.
(5 marks)
Part C Pay for Safety and Environment Scheme
A series of regulations and laws can be found in the present Government system governing site
safety in the construction industry. Contractors who have caused or contributed to any
occurrence of injury to work people and/or who fail to provide proper site safety measures will
be prosecuted under the law. Depending on the degree of seriousness of the offence,
contractors could be suspended from tendering public works.
The Government of Hong Kong has introduced the “Pay for Safety and Environment
Scheme” (herein referred to as “PFSES”) which aims to further counter problems associated
with construction site safety despite the existence of regulations and laws in the present
Government system. The Hong Kong Construction Association together with the Real Estate
Developers Association of Hong Kong have also launched a safety partnering programme with
similar mechanisms on safety aspects.
Your client’s Project Manager would like to know more about the PFSES and how it could
improve site safety. Write a brief memo outlining the following issues related to site safety under
the PFSES:
3C.1 With the relevant safety and environmental Ordinances already in place, how can
the PFSES help the industry in these two areas. (3 marks)
3C.2 How the PFSES could be incorporated in construction contracts. (3 marks)
3C.3 Identify at least two elements under the PFSES that are normally included in
construction contracts. (1 mark)
Page 6 of 15
PRACTICE PROBLEM
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BACKGROUND INFORMATION
You are a quantity surveyor working in a Main Contractor’s firm, Modern Construction Co.,
Ltd. You were appointed as your company’s Project Quantity Surveyor for a residential
development project at Yuen Long. The development comprises a 30-storey residential
building constructed on top of a 2-storey podium together with a backyard external area
on the ground floor. Your company took possession of the Site on 2nd May 2006. The
relevant extracts from the Contract Documents other than the General Conditions of
Contract (based on private form with amendments up to July 1999) in relation to this
question are attached.
Part A
During your company’s monthly internal meeting yesterday your company’s Project
Manager tabled 2 site queries (i.e. Site Query Ref. P123/SQ/001 and P123/SQ/045 as
attached). Your boss is quite concerned about the Architect’s interpretation of the
Contract provisions in the replies to the above-mentioned site queries, as this may also
affect the Architect’s interpretation of all other discrepancies and deficiencies found in the
Contract.
Before attending the adhoc meeting with the Architect and Consultant Quantity Surveyor
scheduled for 25th September 2006, you are asked by your boss to write a memo to
advise him on the following:
4A.1 The order of precedence in case of discrepancies occurring between the following
parts of the Contract Documents with explanations and specific reference to the
attached extract of the Contract Documents and the relevant clauses of the GCC:
- Schedule of Rates
- Contract Drawings
- General Conditions of Contract
- Special Conditions of Contract
- Specification Preliminaries
- Specification Technical
- Particular Specification (7 marks)
4A.2 The contractual position of your company in respect of your boss’ areas of concern
contained in each of the above mentioned Site Queries. (8 marks)
Page 7 of 15
PRACTICE PROBLEM
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(EXTRACT FROM CONTRACT DOCUMENTS)
PARTICULAR SPECIFICATION
PRELIMINARIES
1.0 GENERAL
1.1 Particular Specification Guidance Note
This Particular Specification (“PS”) should be read in conjunction with the Specification –
Technical (“TS”).
All clauses and descriptions in the TS and the PS are relevant to the Works and are to apply
wherever applicable. The PS clauses are in amplification of the TS and refer only to those
clauses and items which are at variance with or are not specified in the TS. Wherever the PS
varies from the TS, the clauses in the PS shall take precedence.
2.0 DEMOLITION AND ALTERATION
2.1 Take Down Existing Items
Take down and remove off site existing items including existing reinforced concrete walls, slabs
and steps, existing brick or block walls, existing paving finishes, existing fixtures and fittings,
etc. within the Site, as shown on the Demolition Plan.
6.0 STEEL AND METAL WORKER
6.9 Access Doors for Bathtubs
Access doors for bathtubs shall be made of plastic all as shown on the detail drawings.
SPECIFICATION PRELIMINARIES
2.0 DESCRIPTION OF THE WORKS
2.01 Generally
The Tenderer is deemed to have read other related documents, the Specification – Technical
etc. and in particular to have studied the tender drawings to be fully aware of the full extent of
the Works.
Page 8 of 15
PRACTICE PROBLEM
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3.0 SITE AND INSPECTION
3.03 Site Visit
Tenderers are advised to visit the site of the Works and make themselves thoroughly
acquainted with the location, general site conditions, type of ground to be excavated,
accessibility, storage space, restrictions for loading and off-loading materials etc. and any other
conditions which may affect their Tender.
The Main Contractor shall accept the Site as found on the Date for Possession and at his own
expense clear the Site of any debris, etc., which may have been left on the Site.
5.0 CONDITIONS OF CONTRACT
5.01 Form of Contract
“The Standard Conditions of Contract’ means the Articles of Agreement and Schedule of
Conditions of Building Contract for use in Hong Kong together with its Appendix issued under
the sanction of the Hong Kong Institute of Architects, The Royal Institution of Chartered
Surveyors (Hong Kong Branch) and The Society of Builders, Hong Kong, First RICS (HK
Branch) Edition 1986 – Without Quantities, with first amendments published September 1997
and second amendments published July 1999, which together with the Special Conditions of
Contract attached to this document, shall be the Conditions of Contract. The Special Conditions
of Contract shall prevail over the Standard Conditions of Contract.
6.0 TENDER, DRAWINGS AND SPECIFICATION
6.01 Tender
The tender shall be a “lump sum” for the carrying out of the whole of the Works in conformity
with the Drawings, Conditions of Contract and Specification.
6.06 Schedule of Rates
The Tenderer shall prepare or complete the Schedule of Rates showing the quantities and
rates on which his tender has been based for the various sections of work.
The unit rates will be used for valuing the price of variations and calculating the value of work
properly executed for interim payment purposes.
In the absence of any items in the Schedule of Rates for works shown on the Drawings or
described in the Specification, any monetary cost attributable thereto shall be deemed to have
been included elsewhere in the tendered sum.
Page 9 of 15
PRACTICE PROBLEM
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6.09 Drawings forming part of the tender documents
The drawings listed in the Schedule of Drawings forms part of the tender documents.
6.14 Specification
The Main Contractor is directed to examine the Specification – Technical bound into and
forming part of the tender documentation.
6.15 Discrepancies
Where there are discrepancies between this Preliminaries Section and the Specification –
Technical, this Preliminaries Section shall take precedence.
Page 10 of 15
PRACTICE PROBLEM
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MODERN CONSTRUCTION CO., LTD.

SITE QUERY Ref. No.: P123/SQ/001 Date: 3/5/2006
To: Advance Architects Ltd. Attn.: Project Architect (PA) - Mr. A Wong
Project : Proposed Residential Development at Lot No. 123 in D.D. 123, Yuen Long, NT
Subject: Demolition of Existing Planters, Lamp Posts and Fence Walls
Details: We refer to yesterday’s joint site handover meeting.
We confirm your verbal instruction that those existing planters, lamp posts and fence
walls located at the future external works area, all of which are not shown on the
Demolition Plan (Drawing No. DP/01 in the Schedule of Drawings), are required to
be demolished.
Please issue Architect’s Instruction to cover the same.
Raised by: Project Manager – Mr. C Chan Expected reply date: 10/5/2006
To: Modern Construction Co., Ltd. Attn.: Mr. C Chan

According to Specification Preliminaries Clause 3.03, tenderers are advised to visit the Site
Reply : of the Works and make themselves thoroughly acquainted with all site conditions which
may affect their tender. Also, you shall accept the Site as found on the Date for
Possession.
As such, we consider that any demolition work which is not unforeseeable and can
reasonably be observed during tender stage shall be deemed to be included in your scope of
works and does not constitute a variation under the Contract. The absence of any item for
demolition of existing lamp posts in the Schedule of Rates shall be deemed to have been
included elsewhere in the tendered sum.
Furthermore, we also notice that the demolition works for existing planters and fence walls
have been included in your submitted Schedule of Rates (i.e. Item 2/DA/1/A&E). We
conclude that you were fully aware of the said demolition works during tender stage and the
same are part of your scope of contract works. No Architect’s Instruction will be issued to
cover the same.
Replied by: * PA / PSE / PBSE
Signed: ( Date: 10/5/2006 )
Distribution: PA PSE PBSE Client PCOW RE H/O Site

X X X
* Delete as appropriate
Page 11 of 15
PRACTICE PROBLEM
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MODERN CONSTRUCTION CO., LTD.

SITE QUERY Ref. No.: P123/SQ/045 Date: 15/7/2006
To: Advance Architects Ltd. Attn.: Project Architect (PA) - Mr. A Wong
Project : Proposed Residential Development at Lot No. 123 in D.D. 123, Yuen Long, NT
Subject: Access Doors for Bathtubs
Details: We refer to Particular Specification Clause 6.9, Drawing Nos. P123/AD/010 and
P123/AD/D/020 in respect of the access doors for bathtubs and note the following
discrepancies :-
(1) Particular Specification Clause 6.9 indicates that access doors for bathtubs shall
be made of plastic all as shown on the detail drawings.
(2) Elevation Drawing No. P123/AD/010 shows that stainless steel access doors are
to be provided for bathtubs and the details of these shall refer to Detail Drawing
No. P123/AD/D/020.
(3) In Detail Drawing No. P123/AD/D/020, it shows that the access doors for
bathtubs are made of stainless steel.
Please clarify and confirm / provide the details of access doors for bathtubs.
Raised by: Project Manager – Mr. C Chan Expected reply date: 22/7/2006
To: Modern Construction Co., Ltd. Attn.: Mr. C Chan

We confirm that the access doors for bathtubs shall be made of stainless steel as
Reply : shown on Drawing No. P123/AD/010. Please submit shop drawing for our
comment and approval.
Since we find that the stainless steel access doors for bathtubs have been included
in Schedule of Rates (i.e. Item 2/S&M/3/A), we consider there is no cost
implication to the contract.
Replied by: * PA / PSE / PBSE
Signed: ( Date: 22/7/06 )
Distribution: PA PSE PBSE Client PCOW RE H/O Site

X X X
* Delete as appropriate
Page 12 of 15
PRACTICE PROBLEM
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QUESTION 4
Part B
Last week, the Architect instructed the omission of the 1m x 1m glass block wall originally
designed as part of the external wall at the typical floor lobbies (from 1/F – 30/F). This
morning, 21st September 2006, the Consultant Quantity Surveyor sent to your company a
cost estimate bill (a copy of which is attached) for your agreement.
The current site progress for the typical floors as reported from site yesterday is as
follows:
Concreting 1/F – 10/F (up to and including the 11/F

slab)
Formwork & Reinforcement 1/F - 10/F (Formwork & reinforcement for

11/F are in progress.
Concreting for 11/F wall & 12/F
slab is scheduled for 25/9/06).
Steel frame for glass block 1/F – 5/F (Steel frame for 6/F is
wall scheduled for completion on
25/9/06).
Glass block 1/F (Glass blocks installed up to

1/F)
Marble slabs generally 1/F (Marble slab installation up to

900mm wide x 2500mm 1/F, and 2/F lobby walls
high to all lobby walls at scheduled for installation on
typical floors 25/9/06)
Drawing No. P123/AD/D/103 shows that the 1m x 1m glass block wall comes complete
with a 250 x 50 x 3mm hollow section galvanized steel frame with 25mm grouting at the
junction with the concrete wall (i.e. the structural opening size is 1.15m x 1.15m).
After checking the said cost estimate bill, you find that the unit rates of the items (except
star rate items) and steel ratio for concrete wall applied by the Consultant Quantity
Surveyor are in order. Your boss asks you to draft a reply letter to comment on this cost
estimate bill (based on the above current site progress forecast up to 25th September
2006) before attending the adhoc meeting scheduled for tomorrow.
(10 marks)
Page 13 of 15
PRACTICE PROBLEM
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Proposed Residential Development at Lot No. 123 in D.D. 123, Yuen

Long, NT
Cost Estimate Bill for the Proposed Change of 1m x 1m Glass Block

Wall to R.C. Wall
Prepared by : Professional Consultant Quantity Surveyor Ltd. Date : 21/9/06
Item Description Quantity Unit Rate Total (HK$)

ADDITION
A Reinforced concrete (35D/20) in 200mm wall 7.9 m3 850 6,715.00
B Formwork to wall 79.4 m2 150 11,910.00
C Reinforcement (steel ratio = 150kg/m3) 1,185 kg 5 5,925.00
D Spatterdash (internal) 39.7 m2 4 158.80
E Spatterdash (external) 39.7 m2 4 158.80
F Cement sand screed to wall to receive 39.7 m2 80 3,176.00

marble (at typical lift lobby)
G 12mm “Special Crema” marble slab to wall 39.7 m2 1,000 39,700.00

(at typical lift lobby)
H Cement sand screed to external wall to 39.7 m2 70 2,779.00

receive ceramic mosaic tile
I 45 x 95mm “Special Metallic” ceramic mosaic 39.7 m2 160 6,352.00

tile to external wall
J Take down and remove steel frame for 1m x 6 No. *300 1,800.00
1m glass block wall (1/F – 6/F)
K Take down and remove 100mm thick glass 1.0 m2 *300 300.00
block wall (1/F)
Total Addition 78,974.60
Page 14 of 15
PRACTICE PROBLEM
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OMISSION
L 250 x 50 x 3mm Galvanized steel frame for 100.8 m 350 (35,280.00)

glass block wall; including all necessary
painting, fixing and 25mm grouting around
concrete wall (7/F – 30/F)
M 197 x 197 x 98mm “Special Sandblasted” 29.0 m2 9,000 (261,000.00)

glass block wall; including all necessary joint
and accessories all as detailed on Drawing
No. P123/AD/D/103 (2/F – 30/F)
Total Omission (296,280.00)
Net Omission (217,305.40)
** END OF PAPER **
Page 15 of 15

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THE HONG KONG INSTITUTE OF SURVEYORS

QUANTITY SURVEYING DIVISION

ASSESSMENT OF PROFESSIONAL COMPETENCE

FINAL ASSESSMENT – AUTUMN 2006

Wednesday, 20th September, 2006

B. The number of main questions is as follows:

(1) First day – Two main questions worth 25 marks each.

(2) Second day – Two main questions worth 25 marks each.

C. All Main Questions and Sub-Questions are compulsory.

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

FIVE COMMON CRITERIA

Candidates are expected to illustrate a reasonable level of professional competence

1. Perception: A full understanding of the problem posed, evidenced

QUESTION 1 – Estimating (total 25 marks)

(ii) Site area : 2,500 m2

(iii) Plot Ratio : 15

(iv) Proposed Development :

No. of floors GFA Storey height

Simple Form of Cost Analysis

Client & Name : Ever Success Development Limited

Type of Main Contract (Superstructure) :

Number of tenders issued : 5

Upper M&E Floor 500 - - 4.00

SUB-TOTAL 191,137,500 2,932 19.50%

SUB-TOTAL 64,260,000 986 6.55%

SUB-TOTAL 13,685,000 210 1.40%

SUB-TOTAL 152,915,000 2,345 15.60%

6.0 INTERNAL WALL & FINISHES

SUB-TOTAL 144,670,000 2,218 14.75%

7.0 FITTINGS & FURNITURE'S 24,480,000 375 2.50%

8.0 ELECTRICAL AND

SUB-TOTAL 256,094,800 3,929 26.12%

9.0 EXTERNAL WORKS 5,525,000 85 0.57%

ELEMENTAL SUB-TOTAL 852,767,300 13,080 86.99%

10.0 Preliminaries 114,750,000 1,760 11.71%

11.0 Contingencies 12,750,000 196 1.30%

TOTAL COST 980,267,300 15,036 100%

Basement structure comprising 1,200 mm reinforced concrete diaphragm wall to perimeter of

Roof Structure : Reinforced concrete suspended roof slab.

Podium : Natural granite on min 20 mm cement sand screed on 75 mm insulation

Tower : Unitised aluminium curtain wall system comprising

Podium : Clear glass shopfront with glass canopies on ground floor

External Doors : Stainless steel doors generally at street level

Tower : Concrete block walls and reinforced concrete walls

Podium : Glass shopfront

Carpark : Concrete block walls and reinforced concrete walls

Refer Finishes Schedule

i. Fixtures & Fittings

Galvanised mild steel balustrades and railings, cat ladders, etc.

High quality sanitary wares and toilet accessories to office toilets.

Plumbing & Drainage

Allowance for construction contingency

Location Floor Wall Ceiling

Basement Floor hardener and Cement paint on Cement paint on concrete

IN-HOUSE TENDER PRICE INDICES

QUESTION 2 (total 25 marks)

OVERALL PROGRAMME OF THE TRANSFER LIFT TOWER

QUOTATION - PREPARATION, ISSUE, ASSESSMENT,

3.3 GROUND INVESTIGATION SITEWORKS

PREPARATION OF TENDER DOCUMENTATION BY

4.4 TENDER APPROVAL

5.1 FOUNDATION WORKS

STRUCTURAL STEEL FABRICATION AND

5.3 LIFT DELIVERY