seminar 1 - question 1

BACHELOR OF QUANTITY SURVEYING

QSB60504 ESTIMATING

GROUP MEMBERS: LE JIA NIAN 0319957

PANG KAI YUN 0319802

SYLVESTER TANG 0325152

TEH QING DA 0318590

YEO KAI WEN 0319844

SEMINARS

LECTURER: MS. AZRINA MD YAAKOB

QUESTION 1:

You are working in a Quantity Surveying consultant firm. Your

firm has recently engaged by a newly established developer.

a. Explain to your client the importance of estimating at

different stages of procurement. (9 marks)

b. Explain to your client the differences of measurement,

tendering and estimating. (9 marks)

c. Explain to your client what preliminaries items are and

provide five (5) examples. (7 marks)

a. Explain to your client the importance of estimating at different stages of procurement. (9 marks)

Stages of Procurement

Importance of estimating:

a) Pre contract

• To predict the cost of the project

• To ensure the cost of the project is within the client’s budget

• To predict the duration of the project

• To establish a construction schedule

• To assist the clients getting the most competitive tender

• To forecast the material, equipment (eg, plants and tools) and the quantities needed

• Clients can start to invite tender



Importance of estimating:

b) Post contract

• To predict the cost of the project

• To control the cost during construction

• To allow for variation order (V.O.)

• To control the cash flow on the project

• To assist clients in making important decisions about changes in project design and/or materials that affect cost positively or negatively

Measurement Estimating Tendering

DefinitionA process of quantifying items according to a rule or set of rules.

A process to predict the cost of the project

A process for contractor to offer a price for a project

Based onStandard Method of Measurement (SMM2)

Building up rates Bill of Quantities (BQ)

Profit Profit not included Profit not included Profit included

Primary content

Definition of Item + Quantity

Elements cost (labour, material, plants) + prelims + prime cost sum + provisional cost + dayworks + overheads

Estimated cost + profit

b. Explain to your client the differences of measurement, tendering and estimating. (9 marks)

c. Explain to your client what preliminaries items are and provide five (5) examples. (7 marks)

Preliminaries (or 'prelims') are the description of the project

that feature at the beginning of a bill of quantities that

allows the contractor to assess costs in required by the

method and circumstances of the works before the

construction start

Example of preliminaries:

a) Temporary road access to site (to deliver item into the site)




b) Site office, storage sheds, labour shed, toilet



c) Temporary Fencing, Hoardings, Signboard (to prevent any

exposure to construction site risks to all pedestrian and

vehicular traffic passing the site)



d) Services (eg. water supply, power supply, etc)



e) Conditions of contract (requirements for insurance,

performance bonds, warranties and product guarantees

for the contractor and sub-contractors)

THANK YOU !

seminar 1 - question 1

Education