BET Assignment 2 PDF

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BET assignment 2...

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Fadi HANKOO

UILDIN TIMATI G AND NDERI G GNMENT 2

Table of Contents Introduction......................................................................................................................................3 Section A:.........................................................................................................................................3 Importance of pricing preliminaries............................................................................................3 Introduction:................................................................................................................................3 Errors associated with pricing preliminaries...............................................................................4 Conclusion...................................................................................................................................4 Section 2 - Preliminaries Bill...........................................................................................................5 Introduction..................................................................................................................................5 Preliminaries map........................................................................................................................7 Preliminaries................................................................................................................................7 1.

Employers requirements................................................................................................7

2.

Management and Staff - quantity surveyor; junior........................................................8

3.

Facilities and Services - waste disposal bins.................................................................8

4.

Temporary works - Fencing...........................................................................................9

5.

Site Accommodation...................................................................................................10

6.

Contract Conditions – Insurance.................................................................................11

7.

Mechanical Plant – Truck and driver...........................................................................11

8.

Non-mechanical plant – External scaffolding.............................................................12

Reference list.................................................................................................................................13

Introduction Tendering and estimating play a significant role in the construction industry which make it a competitive industry. Therefore, accuracy is the main role that assists the construction companies to achieve success. Accurate tendering refers to the correct measuring of preliminaries. Moreover, the inclusion of preliminaries allows the clients to understand the project clearly, also it helps the estimators by increasing their chances for to wining a tender. This report will provide evidence on why the tendering process is crucial process. This is achieved by using real measurements for the preliminaries. The case includes 8 preliminaries which are specifically for the proposed granny flat. In addition, a bill of preliminaries is provided by using COSTX software program in order to provide more understanding of the final costs for the clients (Martin 2008; Woodhams 2001).

Section A: Importance of pricing preliminaries Introduction: Preliminaries can be described as a tender document that provides a clear description of a construction project which allow the quantity surveyor to assess the project costs (Woodhams 2001). Also, it can provide general obligation and facilities for contractors, mandatory instructions, as well as setup and running costs (Tommasone, G, 2017). Preliminaries are crucial component of bills of quantity which play a significant role in all construction projects. They can affect the construction projects in many different ways due to the variation between contractors/estimators depending on the design complexity of projects and on many different aspects. Accuracy in pricing preliminaries is the major influence of the project, meaning that the more accurate the preliminaries costs are, the less indirect and direct costs will be spent. Also, pricing preliminaries are so important for quantity estimators as it contributes significantly towards the overall construction costs (Brandt 2007; Woodhams 2001). In general, Preliminaries costs can be divided into three main costs initial costs, recurring costs, and final costs. Initial and final costs are one-off expenses. Whilst recurring costs are those costs that appear during the construction stage. For instance, if a construction stage was delayed or the work site was distributed for reasons out of contractors and estimators’ control. Recurring costs are used to calculate compensation for contract periods delays and extensions, these costs can be avoided by accurate estimating and tendering (Brandt 2007). Accurate pricing preliminaries assist in achieving projects’ aim and it can prevent and avoid any construction delays or over costs due to costs and materials shortage. Moreover, understanding the importance of pricing preliminaries accuracy can achieve the specified quality, time, and costs. Additionally, it can indirectly reduce the chance of the construction to fail and ensure the right budget/value of money for a certain construction project (Martin 2008).

In regards the contractors and quantity surveyors, preliminaries are vital and constitute part of their profit margin consideration, poor estimates of the preliminaries can certainly affect them negatively by reducing the margin to under estimation of intangible costs, or in some cases not accurate tendering a project can lead to losing the tender (Brook, M, 2008). As previously mentioned, accuracy is the most positive influence on pricing preliminaries within a construction project. When preliminaries are priced accurately, chances of winning a tender will be increased. As well as it will achieve the project aim by not exceeding the estimated cost and time. Therefore, contractors/estimators follow some certain methods in order to increase their accurate tendering and winning a tender. These methods can include, preparing a site layout for the project that will be estimated, using computer software programs such as CostX for more accurate measurements and estimates and less errors, reading the clients specific requirements, going through past projects and tenders, using cost guides such as Rawlinson cost guide and contact the materials companies in order to have a better look on materials prices and qualities(Lock 2013)..

Pricing preliminaries involve in all costs of employee’s requirements, management and staff, all facilities and services temporary works, site management, contract conditions and nonmechanical plants. Each of these categories can be divided into more different sub-headings which will be more demonstrated through the assignment (Western Sydney University, 2020)

Errors associated with pricing preliminaries Pricing preliminaries can involve some errors and mistakes during pricing/estimating stage which can affect the outcome costs of the project. These errors can include, misunderstanding of the drawings, miscommunication between the contractors and the project managers, wrong or unrecognising unit of measurement, not measuring the units accurately, wrong rates taken form costs guides. As mentioned, pricing preliminaries may vary between estimators depending on the experience as well as, the complexity of the project (Woodhams 2001).

Conclusion In conclusion, accuracy is the most essential aspect of tendering, it helps the estimators to be more succeeded as well as wining all tenders. Also, accuracy provide more understanding of the project for the clints which means that when estimated project cost is much higher from initial costs and the costs that was intended, this may be shock the clints and show that the estimator is unprofessional. Therefore, it is vital to accurately identify and cost significant preliminaries, in order to ensure the tendering bid is the most accurate one which will help the estimator to win the tender (Martin 2008; Woodhams 2001).

Section 2 - Preliminaries Bill Introduction the best sequence to price preliminaries is by following the below dot points (Martin, B 2008): I. II.

III. IV. V.

Make notes of general requirements, such as temporary works and sub-contract attendances, when pricing the bill. Preparing a site layout drawing showing the position of accommodation, access routes, storage areas, and services. Inspect site features and check feasibility of proposals during site visit. Use the tender programme for planning staff, plant and temporary works requirements. Reading the client’s specific requirements and all tender documents Pricing the project overheads sheets.

This sequence was incorporated into finding relevant preliminaries for the proposed granny flat.

The selected subheadings for the 8 preliminaries items will be related to the proposed granny flat project. PDF file is attached containing all the estimated preliminaries using estimating software CostX. All measurements and estimates will be according to Cordell building publica and Rawlinson’s cost guides. Firstly, before any estimated preliminaries measurement, we need to find the area of the proposed granny flat project, the highlighted green area is the area that has been calculated which is 59.98m².

After finding the area of the granny flat, we can find the total estimated costs of the granny flat by referring to the Building cost index 2020 (AIQS, 2020) which provides the rate per m² for the Sydney price. according to section 101-102 of “flats”, as shown the figure below, the rate for Sydney flat is 2,230 as the first column.

By using “superficial floor area method” which is by mutiplying the area of the garnny flat by the rate we can find the total estimated cost of the granny flat: 59.99m² x $2,230 = $133,777.70 After finding the total estimated cost which is 133,777.70. Now we can find the duration of the project and construction time by using the figure below, as the cost is 133,777.70 we will be using normal time of $200,000 as it is more equivalent to the price of the project which is 17 weeks

The extended number of weeks will be used Due to the pandemic that is happening nowadays, some delays of time and materials might occur, therefore 17 weeks has more factor of safety Current construction costs of the Granny Flat’s preliminary “items” must now be determined. The following pages will include a measurement sheet and a description for each preliminary 17 weeks x 5 days x 8 h a day = 680h

Preliminaries map

The figure above is stating all preliminaries that is included in the report Figure legend: Red: Temporary fencing Brown: External scaffolding Yellow: Waste skip bin Blue: Toilet Green: Furniture location

Preliminaries 1. Employers requirements The below figure is taken NSW Cordell Cost Guide 2020 page 25:

According to the ‘Construction Work’ code of practice (2019), principle contractors are obligated to provide and maintain adequate facilities including toilets. The employers will need a portable toilet. There will be only one toilet because the site is too small, and the site does not have too many employers. The chosen toilet will be chemical due to the small size of the building, the rate of single chemical toilet is 72.73 per week (Cordell Housing, 2020, pg23), As there are 17 weeks of the project. Therefore, the calculation will be: Calculations: Toilet rate: $ 72.73 per week (Cordell Housing, 2020 pg23) Duration of granny flat: 17 weeks Total: $72.73 per week x 17 weeks = $1,236.41 2. Management and Staff - quantity surveyor; junior

The propsed granny flat project will require a quantity surveyor in order to measure all costs of the project. As the above figure presents the avarage hourly rates for quantity surveyor This includes supperanuation and allowances for overheads. Therefore, in relation with the above figure, the rate for a junior quantity surveyor is $106.07 (Cordell Housing, 2020, pg7). Thus, the calculations will be: Calculations: Leading Hand: $116.15 per hour (Cordell Housing, 2020, pg7) Duration: 17 weeks x 5 days x 8 h a day = 680h Total: $106.07 x (17 weeks x 5 days x 8 h a day = 680h) which equal = $72,127.6 3. Facilities and Services - waste disposal bins The following was taken from the NSW Cordell Cost Guide 2020 page 27:

The abover figure shows the rates for hiring of a skip bin. these bins can combine general and heavy waste as once costs, this excludes asbestos and other chimical materials. The proposed granny is considred to be a small project thefore hiring a 4m3 bin will be a suitable option. The cost of hiring a 4m3 bin per week is $451.82. (Cordell Housing, 2020, pg27) Calculations: Skip bin: 4m3 - $451.82 (Cordell Housing, 2020, pg7) Duration: 17 weeks Total 4m3 Skip bin = $451.82 x 17 weeks = $7,680.94

4. Temporary works - Fencing Temporary fencing is crucial aspect of a construction project because it can keep the construction site safe and protect it from animals and thefts. As well as it provides protection for public and pedestrians. The proposed granny flat is required to have a temporary fencing around it. According to Cordell Housing, (2020), before ordering the fencing wall, the site perimiter must be determined. The below figure shows the area that the fence will sit on.

As shown in the above figure, there is an existing building next to the constuction site. Acoording to the drawings, the site has a metal fence on the north east side, which means that there is no need to include a fence in that area. The front side of the site 15.24m (as shown in the drawings), + the back of the site is 15.24 (as shown in the drawings) = 30.48m. the south west side of the site is not mentioned on the

drawings. Therefore an asumption length of 20m. therefore the the total fencing area is 50.48 which is above 30m (Western Sydney University, 2020). The below figure is taken from NSW Cordell Cost Guide 2020 page 25:

According to Cordell Cost Guide, the rate of protevtive fencing hire that is over 30 meters is 10.98 per metre. Therefore, the calculation will be : Calculations: Fence length: 50.48 (sides of granny flat) + 5m (additional length – near paling fence) Total = 55 (rounded down) Rate: $10.98 per metre (Cordell Housing, 2020, pg23) Total = $10.98 x 55m = $603. 5. Site Accommodation – furniture The site will be in need for some furniture that can optimise the work done by the labours. According to the code of practice ‘managing the work environment and facilities’ (2018). All labours should be provided with suitable and sufficient facilities and accommodations which includes the right of having their food and meals hygienically. Furniture is considered as a sufficient facility for the project site, the furniture includes table, chairs and hot water urn which will be used during the lunch time. This furniture will be put in a small container because the sire is too small and there is not enough space to put a large lunchroom. Providing table, chairs, and hot water urn satisfy the WHS regulation as well as all labours that are working on the proposed site (Western Sydney University, 2020). The furniture will be located next to the carport area Calculation: Tables: $21.82 per week Chairs: $5.45 per week Hot water urn: $39.09 per week Total per week: $66.36 x 17 weeks = $1,128.12 The below figure is taken from NSW Cordell Cost Guide 2020:

6. Contract Conditions – Insurance Insurance is one of the main conditions in a construction projects’ contracts, it provides public liability that ensure that all labours are cover when unexpected third-party damage that might happen. According to Rawlinson’s 2020, third party damage include damages to labours and employers as well as to the building itself, also it can apply to persons that are not relevant to the construction site such as pedestrians and neighbouring houses and neighbours. This third party insurance will be so relevant to this assignment project because the proposed granny flat is located behind an existing house and surrounded will residential houses which means that the surrounded houses will be vulnerable to damage caused by the construction equipment. Therefore, it is essential to have public liability insurance to cover any potential damages (Rawlinson’s 2020). Rawlinson’s 2020 states that any construction project that have total estimated costs that is less than $1,000,000 has a rate of 0.1%-0.15% multiplied by the total contract value Calculations: Workers public liability insurance: 0.1%-0.15% (Rawlinson’s 2020, pg.180) The estimated cost of the granny flat (TCV) Is $133,777.70 Therefore, the total contract condition is (0.1+0.2)/2=0.15% * $133,777.70 = $20,135.56 7. Mechanical Plant – Truck and driver As it is shown in the proposed drawing for the granny flat, the granny flat is on a sloped sight with non-displacement bored Pires therefore, the site will need soil to be added in order to level it. Thus, hiring truck and driver with heavy rigid licence. The truck and driver will be hired for 2 weeks because the civil work finishes in two weeks. Therefore, it will be essential to have truck and driver. 5 tonne per hour will be suitable for the proposed project.

The below figure is taken from NSW Cordell Cost Guide 2020 page 21:

Calculation: Two weeks is 10 of working days (Cordell Housing, 2020, 21) 10 days x 8 hours = 80 hours Total mechanic plant cost: 84.00 x 80 hours = $6,720

8. Non-mechanical plant – External scaffolding External scaffolding is a vital component of a job site in the construction industry because it prevents the labours from falling from heights. Moreover, the code of practice states that it is essential to have scaffold to carry out work more than 2 meters height. According to the drawings, the proposed granny flat brick veneer wall is 2.44m in height. Therefore, there is an essential condition to apply an external scaffolding. The rate of scaffolding for m² is $11.14m² The external bricklayers are scheduled to be done within two weeks; therefore, the scaffold equipment will only be on site for 2 weeks. Calculations: Wall area = 81.74m2 (10+10+6.75+6.75) One-week hire: 7.70 per m2 Deliver - erect – dismantle and pick up rate: $11.14 per m2 (Cordell Housing, 2020, pg 23) 7.70 (rate) x 81.74m2 (wall area) x 2 (weeks) = $1,258.80 11.14 (erect and dismantle, etc) x 81.74m2 (wall area) = $910.58 Final Scaffold cost = $1,258.80 + $920.58 = $2,179.38

Reference list Brook, M, 2008, Estimating and tendering for construction work, Fourth edition, Routledge, Viewed 27 September 2020, Lock, D 2013, Project management, 10th edition edn, Burlington, VT : Gower Burlington, VT : Gower, 2013., Burlington, VT. Martin, B 2008, Estimating and tendering for construction work , fourth edition, Elsevier Science and Technology Ltd. No author, 2019, Construction Work – Code of Practice, NSW government, viewed 27 September 2020,

No author, 2020, Rawlinsons Construction Cost Guide, Edition 26, Rawlinsons, Perth, viewed 27 September 2020 No author, 2020, Cordell Housing, Corelogic, volume 50, viewed 27 September 2020 No author, 2020, Building Cost Index, BCI, Australian Institute of Quantity Surveyors, viewed 27 September 2020 No author, 2020, Leading hand, Seek, viewed 27 September 2020,

No author, 2019 ,Managing the risk of falls at work places – Code of practice, NSW Government, viewed 27 September 2020,

No author, 2018, Managing the work environment and facilities – Code of practice, NSW Governme...