TENDERING AND ESTIMATING

YABA COLLEGE OF TECHNOLOGY DEPARTMENT OF BUILDING TECHNOLOGY NAME: BADA TEMIDAYO MATRIC NO: F/ND/13/3510050 COURSE: TENDERING AND ESTIMATING (QUS 209) LEVEL: ND II LECTURER: BLDR (PRINCE) V.O OLOWU SEPTEMBER, 2015 ASSIGNMENT Define Bill of Quantity and State its functions Explain the function of a quantity surveyor Explain the relationship between Client Engineer and Contractor in Civil Engineering contract Write brief notes on the following; Prime cost sum Provisional sum Contingencies Schedule of rate Preliminaries Preamble Interim valuation Interim certificate Provisional quantities Defect liability period Liquidated/Ascertained damages Day work Specification Retention Fees Flunctuation Variation BILL OF QUANTITIES AND ITS FUNCTIONS Bill of quantities is defined as a document which contains a complete analysis of labour, materials and plant required, contained, outlined, and depicted in the architect’s drawings and accurately representing the work to be executed, and obtaining the cost of the project before it is completed. FUNCTIONS It provides a detailed list of every service to be performed. It becomes a contract document which will be: Used extensively throughout the building operation for the compilation of interim valuations, certificates, and final account. Serve as a schedule on which all variations in the work may be valued. Prevent disputes as to what is and what is not included in the contract prices, and the value of any work or labour which has been omitted. It can be used for furtherance of cost investigation and cost planning information. It describe in addition to any description in the specification, the quality of the work, and the method of carrying it out. It supply each contractor with the information which will enable him to tender on the same basis as competitors. FUNCTIONS OF QUANTITY SURVEYOR The function of the quantity surveyor are numerous which cannot be over emphasis. The main function is the preparation of the bill of quantities. His other duties are as follows: He is available to advice the architect as to the effect on cost of the various materials and types of construction under consideration, and on any other matters arising from is experience of constructional aspects and the financial side of building contracts. He estimate the approximate cost of the work from the Architect’s preliminary design, thereby helping the building owner to budget for his expenditure at an early stage and to avoid the difficulties arising from tenders higher than anticipated. He prepares the documents necessary for obtaining competitive tenders from contractors, or advices on the terms of payment for any work which may have to be paid for on a non-competitive basis. He assesses, as building operation proceeds, the value of the work done and make recommendation to the architect as the payment on account to be made to the contractor. He reports through the architect, when so required, the financial effect of alterations ordered or proposed from time to time. He prepares the final account of the project on the basis of which the architect certifies the final payment. He may also be called upon to settle financial disputes between the architect or other consultants and the client or client and contractor. He may also be called upon to settle financial disputes between the architect or other consultants and the client or client and contractor. He may also be called upon to give advice or evidence in legal matter involving court procedure. He may also be appointed, nominated or co-opted as a member of any panel deliberating into building and other constructional matters. THE RELATIONSHIP BETWEEN CLIENT ENGINEER AND CONTRACTOR IN CIVIL ENGINEERING CONTRACT. The relationship between a client engineer and contractor in civil engineering contract is that: Client engineer ensures that the contractor works according to the design and specifications that had been laid down. The client engineer also prepares his own structural drawings and ensures that it correlates with that of the contractor. TERMINOLOGIES IN ADVANCED MEASUREMENTS. PRIME COST SUM: This is the allowance usually calculated by the cost consultant for the supply of work or materials to be provided by a contractor or supplier that will be nominated by the client. The allowance is independent of any mark up or labours by the main contractor. PROVISIONAL SUM: Is an allowance, usually estimated by the cost consultant that is inserted into tender documents for a specific element of the works that is not yet defined in enough detail for tenderers to price. CONTIGENCIES: This refers to costs that will probably occur based on past experience but with some uncertainty regarding the amount. In other words, it refers to a percentage of the concept budget allowed for unforeseeable conditions encountered during the construction phase, i.e. change orders, updated soil reports etc. SCHEDULE OF RATES: This can be a list of staffs, types of labour and plant hire rates upon which a contractor has listed hourly rates for the purposes of pricing work carried out under cost reimbursable instructed day work. PRELIMINARIES: These are associated costs or expenses that contractors incur in the completion of a project. This may be the cost of a site office, hoarding, heating the site office, rather than the costs of the actual building working materials like the bricks and blocks. PREAMBLES: This is an introductory and expressionary statement in a document that explains the document’s purpose and underlying philosophy. INTERIM VALLUATION: This is the bill that includes the amount spent on works which are completed and in progress in a construction. This is prepared by the contractor’s quantity surveyor and checked by consultancy QS. The purpose of this is to obtain money required for carrying out the works. INTERIM CERTIFICATE: This is a document which provides a mechanism for the client to make payments to the contractor before the works are complete. The value of interim certificates is the value of the work completed, less any amounts already paid, less retention. This document is usually issued by the architect. PROVISIONAL QUANTITIES: These are quantities included in the bill of quantity for works whose nature and scope cannot be entirely foreseen or defined at the time of tendering. The principle and purpose are similar to those described for the pc sums and the provisional sums except that here, a quantity defined as provisional is stated in the bill of quantity with an expectation that the quantity may be more or less. However, what is fairly certain is the condition under which they are to be performed. But there is a great uncertainty regarding the quantum of work which is subject to re-measurement when the works have been performed on site. DEFECT LIABILITY PERIOD: This is a set period of time after a construction project has been completed during which the contractor is contractually obliged to return to the construction site to repair defects which have appeared in the contractor’s work. The defects liability period usually commences on practical or substantial completion and extends for a specified period, commonly 12 months. All expenses to repair the defects shall be borne by the contractor. LIQUIDATED/ASCERTAINED DAMAGES: These are damages whose amount the parties designate during the formation of a contract for the injured party to collect as compensation upon a specific breach (e.g., late performance). DAY WORK: This is a means by which a contractor is paid for specifically instructed work on the basis of the cost of labour, materials and plant plus a mark up for overheads and profit per unit of time. It is generally used when work cannot be priced in the normal way. SPECIFICATION: These are written documents that describe the materials and workmanship required for a development. They do not include cost, quantity or drawn information, and so need to be read alongside other contract documentation such as quantities, schedules and drawings. Likewise, written information about materials and workmanship should not appear on drawings or in bill of quantities, instead they should refer to the appropriate clauses in the specification. Specifications vary considerably depending on the stage to which the design has been developed when the project is tendered, ranging from open specification that require further design work to be carried out by the contractor, to closed specification where the design is already complete and no choices are left to the contractor. Closed specification give the client more certainty about the end product when they make their final investment decision (i.e. when they appoint the contractor), whereas an open specification gives the contractor more scope to innovate, and adopt cost effective methods of work potentially offering better value for money. FLUNCTUATION: This is the way of dealing with inflation on large projects that may last for several years. On smaller projects the contractor will have taken into account inflation when calculating their price (a firm price). However on the larger projects, the contractor may be asked to tender based on current prices and the contract makes provisions for the contractor to be reimbursed for price for price changes to specified items over the duration. RETENTION FEES: This is the percentage (often 5%) of the amount certified as due to the contractor on an interim certificate, i.e. deducted from the amount due and retained by the client to ensure that the contractor properly completes the activities required of them under the contract. VARIATION: These are changes that occur in actual work plan. Variation is the alteration and modification of design, quality and quantity of works including the addition and omission of any work. Variation can be caused by alteration, modification, fluctuations in price delay and errors.