NATIONAL HIGHWAY AUTHORITY

QUANTITY SURVEYING & ESTIMATION

PRESENTED BY
Engr Nand Kumar Soofi Dir (QS), NHA Islamabad

QUANTITY SURVEYING & ESTIMATION

QUANTITY SURVEYING
Quantity surveying is primarily related to construction and the management of the cost and budget of the projects. Role of Quantity Surveyor starts from conceptual stage till the financial closure of the project. A Quantity Surveyor is likely to be involved in a contractual , technical and financial capacity.

QUANTITY SURVEYING & ESTIMATION

QUANTITY SURVEYOR

QUANTITY SURVEYOR (QS) is a construction management professional.

The functions of a Quantity surveyor are broadly concerned with the control of the cost on construction projects, the management and maintenance of the budget, valuations and any contractual matters arising through the course of the project .They are required to make sure that the project remain feasible and efficient.

QUANTITY SURVEYING & ESTIMATION

QUANTITY SURVEYOR

Whenever any Project is proposed, it is important that the cost involved is known in advance. These include : Construction Cost (Direct Cost)
Labour Materials Plant

Overheads & Profit (Indirect Cost)

Site Preparation Cost (Including Mobilization & De mobilization Cost) Professional fees, Taxes, Insurances , Bank charges , Staff expenses and other charges Running and maintenance Costs for the new Road/Building. Profit of the Company

QUANTITY SURVEYING & ESTIMATION

ROLE OF QUANTITY SURVEYOR

Estimation of Project Item Rate Analysis Procurement of Materials Invoices or Bills / IPCs Escalation Payment Certificates Variation Orders Cash Flow Plans Financial Management i.e. controlling budget of project Contract Administration related to financial matters.

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RESPONSIBILITIES OF QS Cost Estimation

Payment

QS
Price Adjustment

Measurement

Procurement

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MEASUREMENT
MEASUREMENT The process of measuring the quantities / scope of works is known as measurement. Controlling the construction cost by accurate measurement of the work is required in the construction industry.

MEASUREMENT Also known as TAKING-OFF

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MEASUREMENT

By using this Measurement knowledge, a QS will be able:

To prepare the Bill of Quantities or Specification document for tendering purposes.

QUANTITY SURVEYING & ESTIMATION

BILL OF QUANTITIES (BOQ)

Bill of Quantities (BOQ) The BOQ is a document used in tendering in the construction industry in which materials, parts and Labor are itemized. In the BOQ item wise quantities/scope of works is mentioned. The quantities are measured / Taken off from design drawings and specifications.

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COST ESTIMATION

ESTIMATION The process of calculating the quantities of various items of work, and the expenses likely to be incurred. The estimated cost of a work is a close approximation of its actual cost. PURPOSE to give the owner/ client a reasonably accurate idea of the cost to help him to decide whether the work can be undertaken as proposed or needs to be curtailed or abandoned, depending upon the availability of funds and prospective direct and indirect benefits.

QUANTITY SURVEYING & ESTIMATION

IMPORTANCE OF COST ESTIMATION

The only accurate estimation can enable the leaders to make vital decisions regarding fate of the project.

If job is over estimated, The firm will not be able to compete with its competitors
If the job is under estimated, The firm will face huge financial losses.

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COMPOSITE SCHEDULE OF RATES (CSR)

The primary aim of preparation of CSR is to provide the facility to the Engineers, in taking rational & quick decisions on following aspects.

To Prepare Project Estimates & PC- I

To Evaluate Tenders

To decide on claims & Variations Orders

To conduct arbitrations matters

QUANTITY SURVEYING & ESTIMATION

COMPOSITE SCHEDULE OF RATES (CSR)

In order to prepare Schedule of Rates and to keep it effective, the basic requirements are :

Collection of first hand healthy / correct information regarding Manpower, Material and Equipment costs.

Merging the above information in proper proportion according to the constructional requirement to create the rate of work item

Updating the data inputs every year or from time to time to revalidate the items rates .

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RATES ANALYSIS OF EACH ITEM OF CSR CONSISTS OF FOUR BASIC INPUT

Materials cost Manpower cost Machinary cost Profit & Overhead

RATE ANALYSIS

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PRICE ADJUSTMENT

Terms Escalation, Price Adjustments & Increase / Decrease. Meaning Adjustment of Contract Price for increase or decrease of prices of adjustable materials / services. It is a compensation to the parties (Contractor or Client) for market price

fluctuation and not extra benefit to anyone.

Adjusted during contract period for the work done over a specified period. Basic formula: Price Adjustment = Quantity x (current rate base rate). PEC formula: Pn=A+b Ln + c Fn + d Cn + e Sn + f Bn Lo Fo Co So Bo Appendix-C represents price adjustment factors in the Bidding Documents.

QUANTITY SURVEYING & ESTIMATION BASE, CURRENT & PROVISIONAL INDICES

Base cost indices or prices shall be those prevailing on the day 28 days prior to the latest date of bid submission. Current indices or prices shall be those prevailing on the day 28 days prior

to the last day of the period to which a particular monthly statement is

related.

QUANTITY SURVEYING & ESTIMATION WHY PRICE ADJUSTMENT?

Bidders quote price on prevailing market rates. Cost of basic construction materials fluctuate unpredictably during the contract period. Unlimited cost increase not foreseeable & cannot be built in competitive bidding process. Contractors can execute work only at right costs. Contracts cannot be executed properly unless a mechanism equitable to the parties are included for price adjustment.

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Results of non-adjustments: Project delay, disputes, termination of contracts resulting more cost for the Employer Exclusions

Variation Orders due to Non BOQ Items

Claims Temporary Works like General Items

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APPENDIX-C TO BID
Cost Element 1 (i) (ii) (iii) Fixed Portion Labor Cement Max 0.65 and no factor should be less than 0.05 ether than labor and diesel as per PEC guidelines Description 2 Weightage Factor C 3 Min 0.35 as per PEC guidelines

(iv)
(v) (vii) (viii)

Reinforcing Steel
High Speed Diesel (HSD) Bitumen

Total

1.000

QUANTITY SURVEYING & ESTIMATION

Variation is alteration in the form of addition, substitution or omission from the original scope of the contract works. Almost all construction projects vary from the original design, scope and definition. Whether small or large, construction projects will have inevitably depart from the original tender design, specification and drawings prepared by the design team. Those changes can be of different nature and may include additional works, changing material specifications, changing working conditions, design changes before, during and even after work execution and so on and so forth

QUANTITY SURVEYING & ESTIMATION EFFECT OF VARIATION

The most frequent effect of variation orders is the increase in cost. Variation orders may affect the projects total direct and indirect costs. Therefore, any major addition or alteration in the design may eventually increase the project cost. Additional payment for contractor, increase in overhead expenses, rework and demolition were considered as the most frequent effect of variation orders.

QUANTITY SURVEYING & ESTIMATION PAYMENT

CONSTRUCTION PAYMENT The process of paying /transfer of money or goods for the construction works done. A QS will be able to:

Prepare the Interim valuation of works in progress on site for purposes of interim payments. Prepare the financial statement of regular intervals during the construction period. Do a settlement of the final accounts of the project.

QUANTITY SURVEYING & ESTIMATION SUPPLEMENTARY SERVICES

Supplementary services may also be provided by the Professional Quantity Surveyor if required:
Preparation of feasibility studies of a project.
Projection of estimated project or development expenditure and

anticipated income cash flows. Evaluation of contractors registered for prequalification. Comparative cost studies on the economics of the project during design stage. Project management of construction project.

With all these skills place QUANTITY SURVEYORS in a strong position to take a leading managerial role throughout the development of a project~