Quantity Surveyors Pocket Book

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Quantity Surveyors Pocket Book

First Edition

Duncan Cartlidge FRICS

AMSTERDAM BOSTON HEIDELBERG LONDON NEW YORK OXFORD PARIS SAN DIEGO SAN FRANCISCO SINGAPORE TOKYO

Butterworth-Heinemann is an imprint of Elsevier

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Butterworth-Heinemann is an imprint of Elsevier Linacre House, Jordan Hill, Oxford OX2 8DP, UK 30 Corporate Drive, Suite 400, Burlington, MA 01803, USA First edition 2009 Copyright 2009, Duncan Cartlidge. Published by Elsevier Ltd. All rights reserved The right of Duncan Cartlidge to be identi ed as the author of this work has been asserted in accordance with the Copyright, Designs and Patents Act 1988 No part of this publication may be reproduced, stored in a retrieval system or transmitted in any form or by any means electronic, mechanical, photocopying, recording or otherwise without the prior written permission of the publisher Permissions may be sought directly from Elseviers Science & Technology Rights Department in Oxford, UK: phone (+44) (0) 1865 843830; fax (+44) (0) 1865 853333; email: permissions@elsevier.com. Alternatively you can submit your request online by visiting the Elsevier web site at http://elsevier.com/locate/permissions, and selecting Obtaining permission to use Elsevier material Notice No responsibility is assumed by the publisher for any injury and/or damage to persons or property as a matter of products liability, negligence or otherwise, or from any use or operation of any methods, products, instructions or ideas contained in the material herein. British Library Cataloguing in Publication Data A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data A catalog record for this book is availabe from the Library of Congress ISBN: 978-0-7506-8746-1

For information on all Butterworth-Heinemann publications visit our web site at books.elsevier.com Printed and bound in Great Britain 09 10 11 12 13 10 9 8 7 6 5 4 3 2 1

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Dedication Nicholas Jon Cartlidge 19422007

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Contents
Preface 1 The quantity surveyor and the construction industry The UK construction industry Market drivers The building team The construction supply chain Latham and Egan Reports The role of professional institutions The quantity surveyor Project manager Architect Building surveyor Structural engineer Civil engineer Building services engineer The clerk of works Site manager/agent UK professionals and the EU Regulation and control of the construction process Planning permission Building Regulations Health and safety Sustainability and the quantity surveyor Legislative background What is sustainability? Themes for action during the procurement process Minimise energy in construction and in use Do not pollute Set targets Site waste management plans Forecasting costs and value Forecasting Costs Cost management Element xiii 1 1 2 4 5 6 6 6 13 13 14 14 15 16 17 18 19 19 20 21 22 25 26 28 30 31 31 31 31 33 33 33 33

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viii

Contents

Cost planning Cost control Cost analysis Cost signicant elements Design risk Price risk Approximate estimating techniques Interpolation Unit method Supercial method Approximate quantities Builders quantities Elemental cost planning Sources of cost information Cost planning example at the Concept and Design Development Stages (Stages C and D RIBA Outline Plan of Work) Price levels Other information Elemental cost control Design and cost Forecasting value Discounting appraisal techniques The property market and development Taxation and property development Feasibility reports Residual method of valuation (developers budget) Example feasibility report Sources of nance Equity Debt nance Mezzanine nance Bonds Answering the what if? question Whole life costs Simple aggregation Value management/value engineering 3 Measurement and quantication Measurement practice The RICS code of measuring practice, 6th edition (2007) Presentation of the bills of quantities

35 35 36 37 38 38 38 38 39 39 41 41 42 43

44 45 47 49 50 53 54 61 61 61 66 68 70 72 73 74 74 75 78 83 85 89 89 89 99

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Contents

ix

Measurement conventions Centre lines and mean girths Making a start Example 1 substructure Excavation sundry items Working space Extra over items Example 2 walls from damp-proof course to wall plate Brickwork Blockwork Mortar Sundry items of masonry Example 3 oors Upper oors taking-off list Example 4 roofs (pitched and at) Double pitch roofs Internal nishes Windows, doors and joinery Windows Internal Doors Plumbing installations and drainage Drainage Specications Traditional (prescriptive) format Standard library of descriptions Measurement for Energy Performance Certicates (EPC) 4 Procurement Introduction Guidelines to procurement A genealogy of procurement Risk and procurement Traditional procurement Preparation, stages A and B Appraisal and Design Brief Design, stages C, D and E Concept, Design Development and Technical Design Pre-Construction, stages F, G and H Production Information, Tender Documentation and Tender Action Tender evaluation Risk allocation Bills of reduction

100 105 108 108 112 112 118 118 118 119 119 124 127 129 132 137 151 157 158 164 164 181 182 184 186 192 197 197 197 199 203 204 205 206 207 209 210 211

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Contents

Two stage competitive tendering Stage 1 Stage 2 Critical success factors Design and build and variants Traditional design and build (D&B) Management procurement Management contracting Construction or contract management Design and manage Cost reimbursement contracts Partnering Cultural issues Commercial issues Key success factors Alliancing Prime contracting Frameworks Public Private Partnerships (PPP) The procurement process The private nance initiative (PFI) e-Procurement European public procurement law The directives theory and practice The quantity surveyor and EU public procurement The EU procurement procedure Award procedures Electronic tendering Technical specications

211 212 213 214 215 215 216 217 219 219 220 221 222 222 222 224 227 228 230 231 231 238 239 240 241 242 243 245 246

Pricing and tendering Sub-contractors Named or nominated? Domestic sub-contractors Named sub-contractors Nominated sub-contractors The nomination process Collateral warranties Calculating bill rates using domestic sub-contractors Unit rate and operational estimating Operational estimating Unit rate estimating

249 249 250 251 252 253 254 255 255 255 255 256

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Contents

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Labour costs Materials Plant Overheads Prot Preliminaries Section D Groundwork Underpinning Section E Concrete work Section F Masonry Roong Materials delivered to site Woodwork Plumbing Drainage External works Pro rata pricing Managing the pricing process Tender adjudication e-tendering e-Auctions Reverse auctions

256 262 263 266 267 267 269 275 275 280 287 293 294 304 308 311 311 311 312 313 315 318

6 Contract procedure, administration and organisation Part 1 Contract procedure Types of contract Standard forms of contract JCT Standard Building Contract 2005 edition Intermediate Building Contract (IC 2005) Minor Works Contract 2005 (MN 2005)/With Contractors Design Design and Build Contract together with Subcontract Agreement Design and Build Subcontract (DBSub/A and DBSub/C) The JCT Major Contracts Construction Contract (MP) 2003 edition The JCT Management Building Contract JCT Prime Cost Contract (98) Measured Term Contracts (98) Construction Management Trade Contract Collateral warranties Other forms of contract

319 319 320 320 321 323 323 324 325 325 329 330 330 330 331 331

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xii

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NEC form of contract GC/Works range of contracts ICE Conditions of Contract International Federation of Consulting Engineers (FIDIC) Institution of Chemical Engineers (IChemE) The Scottish Building Contract Committee (SBCC) Insurances, bonds, guarantees, collateral warranties Part 2 Contract administration Dayworks Recording dayworks Fluctuations Time and the contract Interim valuations Insolvency Loss and expense claims Dispute resolution Part 3 Site organisation Welfare facilities Planning the site layout Planning and programming Critical path analysis and PERT charts
7 Final account Final account The variation account Measurement and pricing of variations Pro rata pricing Example Final account standard format

333 338 340 341 342 343 344 353 353 355 355 359 364 370 377 378 383 383 383 384 385
387 387 388 390 390 391 393 405 411 413 417

Useful links and contacts Further reading Useful measurement rules and conventions Index

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Preface
The idea for writing a quantity surveyors pocket book came to me while reading The Dangerous Book for Boys by Hal Iggulden. For those who are unfamiliar with this book, it is a compendium of everything a boy should know, from how to tie a Staffordshire knot to the discoverer of the planet Pluto. In other words, the basic skills that every self-respecting 660-year-old boy needs to know under a single cover. The quantity surveyor is a uniquely British profession, although during the 160 years or so since the rst quantity surveyor trod the planet they have managed to convince other countries and construction industries that they are an indispensable part of the development process. Much maligned and often misunderstood quantity surveyors have demonstrated an ability to shrug off the attempts to consign them to the past and have instead reinvented themselves many times over. In 2008, the UK government took the step of lifting immigration restrictions on non-UK quantity surveyors as the demand for their skills outstripped supply by almost 5:1. I have in the past written books that concentrate on the new and emerging skills that quantity surveyors are now being required to provide for ever more demanding clients. And yet under the headline services of value management, risk management, the Private Finance Initiative, etc., there is still a great need for the quantity surveyor to be able to provide traditional quantity surveying services. Therefore, this pocket book concentrates on traditional quantity surveyor skills, still so much in demand by clients and contractors alike, but which have, during the past 20 years or so, not had the emphasis in training and education that perhaps they warrant. Duncan Cartlidge FRICS

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