Measurement and Bill of Quantities

in Indonesia
Billy Lie BBuild AAIQS, FRICS

President
IQSI – Ikatan Quantity Surveyor Indonesia
Association of Quantity Surveyors in Indonesia

President Director
PT Branusa Widnell
Quantity Surveyors and
Construction Cost Consultants
QS in Indonesia
• Early 1970s
Widnell & Trollope/PT Branusa
WT Parnership/PT Woltrowindo
Davis Langdon & Seah/PT Rislianto
Rider Hunt
Korra

• 2006 - QS Association
Ikatan Quantity Surveyor Indonesia
Why use QS in Indonesia
• Value for Money :
 Design
 Material
• Tendering with BQ
• Obtain the best offer
• Contract Administration
• Less Disputes
IQSI - Ikatan Quantity Surveyor
Indonesia Indonesia
• Standard
SMM/SMPI
• Code of Ethic
• Certification
SKA
• Education
Universities : Bung Hatta, Podomoro, Pancasila
• Training courses
IQSI - RICS,
 IQSI
• Member of PAQS
CECA - China Engineering Cost Association
• MoU :
 SISV - Singapore Institute of Surveyors & Valuers
 RISM - Royal Institution of Surveyors Malaysia
 PICQS - Philippine Institute of Certified QS
 PUJA - Institution of Surveyor, Engineers &
Architects (Brunei)
 IQSI
Goals:
1) Giving the same perception for QS profession in
Indonesia.
2) Developing active cooperation with other
profession association for the construction
industry growth in Indonesia.
3) Preparing standards that can be accepted,
understood, and used nationally for construction
projects.
4) Enhancing QS quality in Indonesia
5) Preparing and developing qualification system and
standarization QS profession in Indonesia.
 Services
• QS Core Services
• Cost Planning
• Life Cycle Costing
• Value Management
• Facilities Management
• Project Management
• Preliminary Cost Advice
• Procurement Methods
• Contractual Advice
• Tendering
• Valuation of Construction
Work
• Cost Control & Financial
Management
• Financial Claims & Programme
Analysis
• Dispute Resolution
• Insurance Advice
•Measurement in Construction Project
•Bill of Quantities
•Tender System
•Type of Contract
• Culture
• Construction Industry in General
• Type of Contract
TENDER SYSTEM

• Open Tender
Mainly Government Projects

• Closed Tender
Mainly Private Projects
COMMONLY USED TYPES OF CONTRACT

Lump Sum
Fixed Unit Rate
Re-measurement
Schedule of Rate

 Cost Plus
Plus % or $
 Design and Build
GLOBALIZATION

INDONESIA
 BUSINESS SET-UP
• 100% Foreign
• Partner with Locals
• Joint Operation with Local Company
 CONSTRUCTION
PROJECTS

GOVERNMENT PRIVATE
Investing Abroad
• The culture of each country is different
Level of religiousness, driving on right or left hand side, the level of elder
appreciation, etc.
Investing Abroad

• This cultural value is affecting QS practice too, whether

majorly or minorly
• Cultural value has to be understood and respected when we
start to practice in one’s country
Left Hand or Right Hand
Left or Right
Bill of Quantities

TENDER STAGE
• To provide an organized list of items with identifying
descriptions and quantities, this enable contractors
to prepare tenders efficiently and accurately

DURING CONSTRUCTION
• To provide a basis for the valuation of work
executed for interim payments
• To provide a basis for the determination of the
value of variations
The Benefits of BQ
• Saves considerable time and cost of several contractors
measuring the same design
• Provides a consistent basis for obtaining competitive tenders
• Provides a clear statement of the scope of work
• Allows for easy comparisons and analysis of tenders
received.
• Provides a strong basis for budget control and cost reporting
including:
- the preparation of cash flow forecasts,
- a basis for valuing variations
- a basis for the preparation of progress payments
• It provides update cost data for estimating the cost of future
projects
BQ - Current Practices

•Most Projects Owners will provide BQ to

Tenderers
•Tenderers need to check and recalculate if
necessary
•Provisional Quantities and/or items may be
included in the BQ
SMM

Standard Method of Measurement

= Standar Metode Pengukuran Indonesia
Standard Method Of Measurement

It is important that there is a consistent,

uniform basis for measuring building
works in order :
•to facilitate comparisons and
benchmarking,
•to encourage the adoption of best practice
•to help avoid misunderstandings
•to help avoid disputes.
 Standard Method Of Measurement
Current Situation in Indonesia:
• Many methods of measurement used in Indonesia
• Some are very detailed
• Some are very basic and fo not address all types of work
• All are different
• This means estimator has to read and fully understand
the rules of the Minutes of Meeting
• Takes time during tight tender period
• Lead to misunderstandings and mistakes in pricing
Standard Method Of Measurement

Solution:
•Using SMM (SMPI)
•Facilitate comparisons and benchmarking
•Encourage the adoption of best practice
•Help avoid misunderstandings
•Help avoid disputes
Standard Method Of Measurement
 Indonesian SMM (SMPI) was originally developed by
Langdon and Seah similar to UK SMM7 and Philippines
SMM
 Standard Method Of Measurement
 SMPI (Indonesian Version)
 Standard Method Of Measurement
 SMPI (English Version)
 Standard Method Of Measurement
 Measurement Rules
• Set out when work shall be measured and the method
by which quantities shall be computed.
 Definition Rules
• Define the extent and limits of the work represented by
a word or expression.
 Coverage Rules
• Draw attention to particular incidental work which is
held to be included within the item
 Standard Method Of Measurement
 Symbols and Codes
 Terms of Payment

A. Monthly/Progress Payment
B. Stage Payment
C. Turnkey
Form of Contract
Commonly used Form of Contracts :
• FIDIC Contracts
• Joint Contracts Tribunal (JCT)
• Tailor-made Contracts

Langguage Used :
• Bahasa Indonesia
• English
 Contract Document
 FIDIC Contracts
 Contract Document
 JCT
 Contract Document
 Tailor-made Contracts
• Indonesian construction projects often use tailor-made
contracts for either small or big scale projects
• This tailor-made contract can be drafted by Owner,
Contractor, or QS consultant.
• The tailor-made contracts is made by reffering to one or
more standard Contracts.
DISPUTE SETTLEMENT
Recommendation
• Need to undersand the culture of a country
• To know the local common practice
• Follow the local regulations
• Communicate with professional associations
• Cooperate with local firms
 THANK YOU!

www.iqsi.org

Email : billylie828@gmail.com
Mobile : +62 816 848 328
WeChat : billylie88