DQS251 Assingment 1 Document Preparation PDF

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UNIVERSITI TEKNOLOGI MARA, CAWANGAN PERAK,KAMPUS SERI ISKANDAR, FACULTY OF ARCHITECTURE,PLANNING AND SURVEYING (FSPU)DEPARTMENT OF QUANTITY SURVEYINGMEASUREMENT OF CONSTRUCTION WORKS IVDQS 251ASSIGNMENT 1: DOCUMENT PREPARATION(GROUP 5)PREPARED BY:NO. NAME STUDENT ID1. MUHAMMAD HAZIQ AIMAN BIN MOHD Z...

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UNIVERSITI TEKNOLOGI MARA, CAWANGAN PERAK, KAMPUS SERI ISKANDAR, FACULTY OF ARCHITECTURE, PLANNING AND SURVEYING (FSPU) DEPARTMENT OF QUANTITY SURVEYING

MEASUREMENT OF CONSTRUCTION WORKS IV DQS 251

ASSIGNMENT 1: DOCUMENT PREPARATION (GROUP 5)

PREPARED BY: NO. 1. 2. 3. 4. 5.

NAME MUHAMMAD HAZIQ AIMAN BIN MOHD ZAINALABIDIN NUR ‘IFFAH ‘AQILAH BINTI JOHAR NUR ALIA NATASHA BINTI MOHD RUS PUTERI BALQIS BINTI MUHAMAD WAN NURUL FATIHAH BINTI GHAZALI

STUDENT ID 2019258538 2019241668 2019426492 2019240298 2019283166

GROUP CLASS: AAP1144J

PREPARED FOR: DR WAN NORIZAN WAN ISMAIL

SUBMISSION DATE: WEEK 7

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TABLE OF CONTENTS

Page

1.0 Introduction

1

2.0 Discussion

3

2.1 Preliminaries

3

2.2 Provisional Sum

6

2.3 Prime Cost Sum

8

3.0 Example of Bill of Quantities

9

3.1 Preliminaries

9

3.2 Provisional Sum

9

3.3 Prime Cost Sum

10

4.0 References

12

5.0 Appendices

14

1

1.0 INTRODUCTION

Bills of Quantities or most known as BOQ or BQ is a document prepared by a cost consultant which is often done by a Quantity Surveyor. It provides specific measured quantities of the items of work for a certain project. These information’s can be identified from drawings provided by Architect and specifications in the tender document. BQ is considered as one of the communication tools used to connect parties like client, consultant, and contractor of a project. According to Keith, BQ is a schedule that categories, quantifies, and specifies all of the materials and other cost items that are used in the construction project. There are also direct and indirect costs that are considered to complete the cost of the project which will then later be covered in different sections of the BQ.

In general, BQ is in a table form that holds the contents of description, unit, quantity, rate, and amount in separate columns. The description column will be a brief explanation of what to be done for each work and then it will later describe which unit, rate and amount that will be used based of what that has been measured by quantity surveyor. In Malaysia, there is a main standard that we use to prepare this BQ. Most of the time, the Malaysian Standard of Measurement of Building Works Second Edition (SMM2) for building projects, Jabatan Kerja Raya (JKR) standard specifications and Civil Engineering Method of Measurement (CESMM) for civil engineering works are used to prepare a BQ. Not to mention how they also use the SI base unit which includes metres, kilograms, and other units to help standardize the items of the BQ. This is to avoid any misconceptions.

Example of a Bill of Quantity and the Malaysian Standard Method of Measurement Of Building Works (Second Edition)

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BQ is very important in both pre-contract and post-contract stage. The main purpose for this BQ is to standardise the procedure of tendering contractors. This is to get ready a firm cost for them to carry out the works. Furthermore, it provides a fair and pretty accurate technique to tender contractors according to the price of the project as it uses the same information. The use of BQ will also permit consultants of the employers to perform a tender analysis which will then allow them to compare the overall cost received as well as individual priced items with other tender offers. In addition, it also enables quantity surveyors or contract administrators to confirm whether each of the individual contractors have handed in bona fide tenders compliant as well as the tender information. This is very important as these documents represent value of money to the client. Not to forget that BQ will also help in assisting the design team during the construction period as it helps determine the agreement of the contract sum with the successful tender, identify schedule of rates to assist costing variations for the individual work items, it provides a basis of identifying works that will be used to complete interim valuations, and provide a basis for preparing the final account.

The parts of BQ varies according to the project’s size and practices. However, the major parts of BQ can be generally break into are (that will later be explained according to each chapter of the items): 1. Measured works. 2. Preliminaries 3. Provisional sums 4. Contract sum (be added of these three items)

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2.0 DISCUSSION

2.1

PRELIMINARIES

Preliminary items are considered as one of the most critical sections in a bill of quantities and some of these items are not included in the preliminary bill. Usually, the most difficult items to be priced in a Bill of Quantity (BQ) are often termed as Preliminaries Bill or even Bill No 1. This is because of how this part of the work have no particular section in them and will be given the opportunity for contractors to price them. This item will provide general information, setup running costs for a construction contract period and mandatory instructions based on the construction project. According to Ghani, 2006, preliminaries are a fundamental piece in the quantities bills for a construction project. The cost of this item can vary between contractors depending on the complexity of the project. Many researchers have tried racking their brains on the accuracy of preliminaries as it plays a huge role to the overall construction cost. Pricing preliminaries are usually hard and often ends up with a large variation as contractors would use their own interpretations and approaches regarding this matter.

Preliminaries or also referred as ‘prelims’, can be interpreted as meaning of the section in the bills of quantities that groups items that are necessary for the completion of works from the contractors, but it does not actually become part of the works needed to be done. Some of the examples for these types of works include, plant, scaffolding, cost of power to the site, water, and other site overheads. Contractual terms and services provided by contractor are also often summarised in this preliminaries section. In a traditional form of contract, the preliminaries items can be found at the first section of the BQ which will then form part of the contract documents. Other names that could refer to these items are ‘general’ items in BQ, or ‘site overheads”. In US contracts, the term “field office costs” is commonly used for referring preliminaries items.

The purpose for preliminaries section in BQ is to provide particulars, information, liabilities, general obligations, and any other details from the project that have the concern of tenderers. These tenderers will then price the various items provided under this section of work. They will be priced separately from trade or elemental bills by tenderer as they are also important parts of the BQ. Based on the Standard Method of Measurement 2 in Malaysia, preliminaries items are grouped into 13 listed categories, as follows:

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4

Preliminaries section in most BQs comprises typically of the following headed items: NO. 1.

HEADING Preliminaries particulars - project and contract details, works, goods and materials by others, contractual obligations, and liabilities, etc

2.

Plants, tools, and vehicles

3.

Scaffolding

4.

Site administration and security

5.

Transport for work people

6.

Protection of work

7.

Water, lighting, and power

8.

Temporary telephone

9.

Temporary roads, hardstandings, crossings, etc

10.

Temporary accommodation

11.

Traffic regulations

12.

Safety, health, and welfare

13.

Maintenance of public and private road

14.

Removal of rubbish, debris, etc

15.

Control of noise, pollution, etc

16.

Statutory compliances and obligations

17.

Surety of performance bond

18.

Insurances

19.

Shop drawings, co-ordination, and record drawings

20.

Progress photographs and reports

21.

Schedules, charts, etc showing progress of trades, works, activities

22.

Clearing, cleaning, and handover

Categories of priced items in preliminaries section: 1. Initial cost 2. Recurring cost 3. Final cost This will be usually done by the project consulting QS, and in the consultation with the contractor. Proportion and initial costs are often fixed and can be paid upon commencement and completion. In the meantime, recurring cost are evenly spread over the completion period of the project.

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2.2

PROVISIONAL SUM

Provisional Sum is an allowance that is usually estimated by quantity surveyor, every details of provisional sum will be included in tender document for a specific element of work that is yet no accurate price because of lack of details in some of the works. The contract amount will increase or decrease as provisional sums are replaced by valuation of works completed as project progress. Furthermore, depending on how well the works to which the provisional sum applies may be specified at the tender level, the actual works performed can have an impact on the contractor’s programming, preparation, and pricing preliminaries.

There is 2 type of Provisional Sums which is Undefined Provisional Sums and Defined Provisional Sums. Undefined Provisional Sums is to elaborate on undefined Provisional Sums, they are included in a contractor's total price, but only to account for any additional work that might be needed. They are a best approximation based on the available information, which may be limited. This is something the company should have in mind that they are unlikely to be able to restrict the contractor to the quoted amount. An example of an undefined provisional sum could be where the works are to be carried out at a site of potential archaeological significance. Under these cases, the employer bears the price and preparation costs and must provide the contractor with the required allowance. Meanwhile for Defined Provisional Sums are those for which the contractor has been given enough information to account for them in their price and schedule. This information may include a certain degree of design, an interpretation of construction phasing, an estimated number, and any established constraints. However, if all this information is given, why provide a provisional amount at all rather than merely pricing the item? The explanation for this may be that, while there is ample detail for the contractor to price against, there is still a high degree of ambiguity. For instance, the final product may not be chosen, the conditions may be too unknown, or the final quantity may vary. However, by including defined Provisional Sums, there is a foundation for managing any transition, and the contractor has factored time into their overall schedule. As a result, the employer's budget and time exposure is reduced. A defined Provisional Sum may be used, for example, to make the contractor liable for dealing with requests arising from a planning application.

The Pros for Provisional Sums is the opportunity to transfer liability onto the contractor is one of the benefits of using defined Provisional Sums for the employer. This is when the provider would be considered to have made enough provision for the impact on the schedule and the resulting operating costs. In the case that the employer decides to instruct the 6

Provisional Sum, this will eliminate the need for the employer to assess service impacts and settle on any period extensions later. For the contractor, a Provisional Sum is the employer's intention to take on extra jobs. The incentive is to collaborate with the employer to define the nature and price of the project, allowing the employer to direct the task. Furthermore, whether they keep accurate contemporary records of the work done, they have a good chance of recovering all of their direct costs for a defined Provisional Sum or all of their total costs and time dependent costs for an undefined Provisional Sum.

The Cons for Provisional Sums is the contractor's disadvantage of Provisional Sums is that they are taking on more risk in terms of defined sums, since they are considered to have already priced for the period to complete the works in their schedule. If the time given is insufficient, it might be necessary to engage in any adversarial contract administration to reclaim their status. Employers should be careful that using undefined Provisional Sums can subject them to full liability for all final costs and program effects. There may be contract provisions that restrict their liability for non-reimbursable charges.

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2.3

PRIME COST SUM

For definition of Prime Cost Sum, it is intended to make allowance for specialist work that is detailed and the other developer that wishes the main contractor are included in his tender return. Although, the works that was described in the pricing document as a Prime Cost Sum may can be carried out by a nominated subcontractor or Works Contractor. For information, the contractor also must present their invoices for the supplied item in question plus in whatever they mark-up included in their price. Besides, the Prime Cost Sum is adjusted with accordingly to put the contractor back into the same position. So, it means that the final quantities may increase or decrease before the project completed. However, the contractor must bear this in his mind even in any final account.

For purposes of Prime Cost Sum, basically it’s related by the developer as they wish to maintain elements of control over the finished product. For evidence, if developer want provide specification and also a general description on the contract drawings so, the contractor can do research about market and get the subcontractor prices for the works. This important to do assume those subcontractors that should provide the materials or product that is specified by the developer. However, if the designer may have already slow talk to one supplier about their product as they have on particular look or finish in their mind. It is because this could be anything from cladding, windows, internal fixtures or flooring type. This is because to always ensure that they proceed with supplier’s exact product in the specification or must include with the material costs and also with description in the pricing schedule as a Prime Cost Sum.

For the benefits of Prime Cost Sum, it is can simply for the developer to be more convenient for long lead items, such as in case of M&E plant. For evidence, the main contract is let to the place an order before for them. Although, the contractor will pay the supplier engaged by the developer after once the main contract is placed. Other than that, to aid developers in term of design details and even planning applications, probably even product development that will aid a developer providing as much detail to tenderers and such like is more likely to a specialist, if selected to be included as a Prime Cost Sum. Besides, if always keep good accounts and records and also present these to the developer upon completion of the works as a Contractor, this will be able to prove any under or overspend against about the Prime Cost Sum and can be reimbursed accordingly. Furthermore, it is also important too as a developer to keep maintain the own record of the works that already carry out. So that, the developer can cross check to any final claim before.

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3.0 EXAMPLE OF BILL OF QUANTITIES

3.1

PRELIMINARIES

ITEM

DESCRIPTION

QTY

UNIT

RATE

AMOUNT

10

Week

378.80

RM 3788.00

Item

233.97

RM 233.97

Management and Staff A

Project Manager Services and Facilities Skips

B

Temporary Works C

Erect and subsequently dismantle

42.91

M2

15.32

RM 657.38

D

13mm insulation board

10.02

M2

21.99

RM 220.34

Associated with the Works E

Defects after completion

Item

167.12

RM 167.12

F

Delivery costs for sale cladding and

Item

334.24

RM 334.24

paving TO COLLECTION

3.2

RM 5401.05

PROVISIONAL SUM

ITEM

A

DESCRIPTION Relocation of trees Allow a Provisional Sum of Ringgit Malaysia Five

UNIT

QTY

RATE

AMOUNT

SUM

500,000.00

SUM

1,000,000.00

SUM

300,000.00

Hundred Thousand Only (RM500,000.00) for Relocation of trees Landscaping Works B

Allow a Provisional Sum of Ringgit Malaysia One Million Onlyfor Landscaping work M&E

C

Allow a Provisional Sum of Ringgit Malaysia Three Hundred Fifty Thousand Only TO COLLECTION

1,800,000.00

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3.3

PRIME COST SUM DESCRIPTION

UNIT

QUANTITY

RATE

AMOUNT

Air-conditioning system Allow a Sum of Ringgit Malaysia One Million Three Hundred Thousand Only (RM1,300,000.00) for Air Conditioning System ADD for Main Contractor's profit

SUM

1,300,000.00

%

19,500.00

ITEM

19,500.00

SUM

1,000,000.00

Allow for attendance as described in the Preliminaries' upon the Nominated SubContractor executing the above work Fire Fighting System Allow a Sum of Ringgit Malaysia One Million only (RM1,000,000.00) for Fire Fighting System ADD for Main Contractor's profit

%

15,000.00

ITEM

15,000.00

SUM

300,000.00

Allow for attendance as described in the Preliminaries' upon the Nominated SubContractor executing the above work Lift System Allow a Sum of Ringgit Malaysia Three Hundred Thousand Only (RM300,000.00) for Lift System

ADD for Main Contractor's profit

%

4,500.00

Allow for attendance as described in the Preliminaries' upon the Nominated SubContractor executing the above work

ITEM

4,500.00

2,853,500.00

10

ELECTRICAL WORKS Internal Electrical Works Allow a Sum of Ringgit Malaysia One Million Six Hundred Sixty Thousand Only (RM 1,660,000.00) for Internal Electrical Works ADD for Main Contractor's profit

SUM

1,660,000.00

%

24,900.00

ITEM

24,900.00

SUM

1,320,000.00

Allow for attendance as described in the Preliminaries' upon the Nominated SubContractor executing the above work External Electrical Works Allow a Sum of Ringgit Malaysia One Million Three Hundred Twenty Thousand Only (RM 1,320,000.00) for External Electrical Works ADD for Main Contractor's profit

%

19,800.00

ITEM

19,800.00