CLO
OUTCOME
CLO 1 CLO 2
to recognize the estimating method to describe the procedures, flows and routine in tendering a project
to differentiate the type of contracts in the construction industry to discuss the method of dispute resolution in construction.
CLO 3
CLO 4
To understand the basic principles in estimating and contract To understand any works related to estimating and contract To appreciate the tendering procedure
Introduction of measurements principles Introduction to SMM2 Standard method of measurement Measurement of Site Clearing Measurement of Work Below Lowest Floor Finish (Substructure) Introduction of construction cost estimating Building cost estimating methods Law of Contract Standard Forms and Types of Construction Contract Tendering Dispute Resolution Method Payment
Ahamad Abdullah (2006). Anggaran Kos Kerja Bangunan. 2nd Edition. Pearson
Bockrath, J., (2000). Contracts and the Legal Environment for Engineers and Architects, 6th. Edition, McGraw-Hill. Hinze, J., (2001). Construction Contracts, 2nd. Edition, McGraw-Hill.Dearle and Henderson, (1988). Management Contracting, E&FN Spon, London. Seely, Ivor H., (1987). Civil Engineering Quantities, 4th. Edition, MacMillan Education Ltd. Bunni, N.G., (1991). The FIDIC form of contract, BSP Professional book, London. Dearle and Henderson, (1988). Management Contracting, E&FN Spon, London. Smith, R.C., (1986). Estimating and Tendering for Building Works, Longman Inc., New York. Bockrath, J., (2000). Contracts and the Legal Environment for Engineers and Architects, 6th. Edition, McGraw-Hill.
Prepared by Qs A documents setting out in schedule forms where the quantities, descriptions and rates of the works to be undertaken The tenderer need to price the BoQ
MEASUREMENT / TAKING OFF BQ PRODUCTION TOTAL AMOUNT FOR PROJECT
PRICING
PROCEDURES Prepare taking off list & query list Verify all drawings & specification Page title & number Sequence of jobs NEAT & TIDY!!!
NO. 1.
ITEM Concrete grade 30 in landing slab Formwork to soffits of landing slab Main Bar Reinforcement in landing slab Link, stirrups and binder in landing slab
UNIT M3
2.
M2
3.
KG
KG
EXAMPLES OF TIMESING
L W T/D
L W
Meter (m)
Item / No.
ITEM
SMM REQUIREMENT
DESCRIPTION 1 brickwall in common brick in cement and sand (1:6) mortar in English bond, load bearing wall
1 BRICK 1. Work classification (G.1.1b) WALL 2. Type of brick (G.3.1a) 3. Type of bonding (G.3.1b) 4. Ratio and mixture of mortar (G.3.1c) 5. Wall thickness (G.3.3) 6. Class (G.3.3a)
DIMENSION PAPER ELEMENT : WBLFF (PAD FOUNDATION, GROUND BEAM, CONC BED) DIMENSION DESCRIPTION
Length 7.200 a dd 2 corners (2 x 0.625) 1.250 8.450 Wi dth 7.200 a dd 2 corners (2 x 0.625) 1.250 8.450
PAGE : 1 OF 3 DESCRIPTION
Length 7.200 l es s 2 col s tump (2x0.3) -0.600 6.600
DIMENSION
4 8.45 8.45
Exca va ti on to remove top s oi l a vera ge depth 100mm
Exca va te trench to recei ve ground bea m s ta rti ng from reduce l evel ma x depth n.e 0.25m
Item
-0.100 0.175
Al l ow for keepi ng the s urfa ces of the s i te & exca va ti on free of s urfa ce wa ter
4
Depth l ea n concrete footi ng col umn s tump 0.030 0.300 0.750 1.080
1.25 1.25 0.03 4 6.6 0.15 0.03 4 1.25 1.25 0.30 4 0.30 0.30
(Ground Bea m)
Rei nforced i ns i tu concrete Gra de 20 i n i s ol a ted founda ti on Ba s es (Pa d Founda ti on), i n 4 nos
Thick brickwall
PERIMETER / GIRTH (metre) Length 24.00 Length 24.00 Width 10.00 Width 10.00 Total for overall 68.00
24.00 -0.45 23.55 10.00 -0.45 9.55 224.90
AREA
Outer Dimension Length less brickwall TOTAL LENGTH
Length Less brickwall Width Less brickwall Total for 1 set Total for overall
Area A Length less outer 2 angle Total Length A Width less outer 2 angle Total Width B Total Area A
Area B Length add outer 2 angle Total Length B Width less outer 2 angle less reses Total Width B Total Area B
Area C Length less outer 2 angle Total Length C Width less outer 2 angle Total Width C Total Area C
D.8 (2nd Method) Measured together but must stated area of the clearing
TAKING OFF LIST ELEMENT : EXCAVATION & EARTHWORK (SITE CLEARING) NO. 1 Site Clearing ITEM UNIT Item
DIMENSION PAPER ELEMENT : EXCAVATION & EARTHWORK (SITE CLEARING) DIMENSION DESCRIPTION DIMENSION
PAGE : 1 OF 1 DESCRIPTION
Gros s Area l ength wi dth 50.00 70.00 3500.00 Deduct Area (Tri a ngl e) 1/2 Ba s e Hei ght 0.50 25.00 70.00 875.00
Nett Area Overa l l Deduct Tri a ngl e 3500.00 -875.00 2625.00 Cutti ng down trees & cl ea ri ng s i te undergrowth, bus hes , s crub a nd hedges & grubbi n up thei r roots & fi l l i ng voi ds l eft by remova l roots wi th s el ected ma teri a l a ri s i ng from ma teri a l (i n 2625 m2)
Item
QUERY LIST ELEMENT : EXCAVATION & EARTHWORK (SITE CLEARING) NO. QUERIES ASSUMPTIONS 1 Material to filling voids after site Selected Material arising from clearing excavation REMARKS Confirmed with Engineer & Architect
TAKING OFF LIST ELEMENT : EXCAVATION & EARTHWORK (SITE CLEARING) NO. 1 Site Clearing ITEM UNIT Item
Bill No. 2 - Excavation & Earth Works ITEM DESCRIPTION EXCAVATION AND EARTHWORK Site Clearing A
Cutti ng down trees & cl ea ri ng s i te undergrowth, bus hes , s crub a nd hedges & grubbi n up thei r roots & fi l l i ng voi ds l eft by remova l roots wi th s el ected ma teri a l a ri s i ng from ma teri a l (i n 2625 m2)
ITEM
Final Summary ITEM A DESCRIPTION Bill No. 2 - Excavation & Earth Works UNIT QUANTITY RATE (RM) AMOUNT (RM)
TOTAL AMOUNT :
Any works under ground floor slab is called substructure or Work Below Lowest Floor Finish (WBLFF) Consist of :
Excavation Lean/Concrete Blinding Foundation Column Stump Ground Beam Hardcore Damp Proof Membrane Ground floor slab/bed
Types of excavation:
Top Soil (compulsory to all excavation) Reduce level (compulsory to all excavation) Pit excavation Trench excavation
Original Ground Level (Top Soil) Level After Excvation of Top Soil (Reduced Level)
Original Ground Level (Top Soil) Level After Excvation of Top Soil
D.12.4
In cubic meter (m3) Length x Width x Depth State:
Stages of depth
Original Ground Level (Top Soil) Level After Excavation of Top Soil Excavation to Reduce Level
D.12.6
In cubic meter (m3) Measure separately for both dimension less than 1.25m State:
To receive what? No. Starting level Stages of depth
State:
D.15
Compulsory to all excavation Measured as item An item to allow for keeping the surface of the site and excavation free from surface water
TAKING OFF LIST ELEMENT : WBLFF NO. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 ITEM EXCAVATE TO REMOVE TOP SOIL EXCAVATE TO REDUCE LEVEL EXCAVATE PIT TO RECEIVE PAD FOUNDATION EXCAVATE TRENCH TO RECEIVE GROUND BEAM KEEPING SITE & EXCAVATION FREE FROM WATER CONCRETE BLINDING FOR PAD FOUNDATION & GROUND BEAM CONCRETE GRADE 20 FOR PAD FOUNDATION CONCRETE GRADE 30 FOR COLUMN STUMP CONCRETE GRADE 30 FOR COLUMN STUMP FORMWORK FOR PAD FOUNDATION FORMWORK FOR COLUMN STUMP FORMWORK FOR GROUND BEAM 12MM REINFORCEMENTFOR PAD FOUNDATION & GROUND BEAM 8MM REINFORCEMENT FOR GROUND BEAM 20MM REINFORCEMENT FOR COLUMN STUMP 8MM REINFORCEMENT FOR COLUMN STUMP HARDCORE DPM CONCRETE BED UNIT M2 M3 M3 M3 ITEM M3 M3 M3 M3 M M2 M M (KG) M (KG) M (KG) M (KG) M2 M2 M3
D.1
a dd 2 corners (2 x 0.625)
D.12.7
4 8.45 8.45
Exca va ti on to remove top s oi l a vera ge depth 100mm
Exca va te trench to recei ve ground bea m s ta rti ng from reduce l evel ma x depth n.e 1.00m
D.12.4
D.15
Item
Al l ow for keepi ng the s urfa ces of the s i te & exca va ti on free of s urfa ce wa ter
-0.100 0.175
Depth l ea n concrete footi ng col umn s tump 0.025 0.300 0.750 1.075 Exca va te pi t to recei ve pa d footi ng s ta rti ng from reduce l evel ma x depth n.e 2.00m
F.3.3
(Ground Bea m)
F.3.15
QUERY LIST ELEMENT : WBLFF NO. QUERIES 1 Method to keeping site & excavation free from water ASSUMPTIONS By Pump REMARKS Confirmed with Site Engineer/Architect
Any structure that laid on earth F.1.6 & F.2.1 Measured in m3 (Length x Width x Thickness) Need to stated:
Thickness:
N.e 100mm 100mm 150mm 150mm 300mm Exceeding 300mm
Grade of concrete
F.3.1 In Cubic Meter (m3) Length x Width x Height Stated for column stump
Section F.10 F.10.3 measured to the surface of the finished concrete/structure (no additional for wastage etc) F.10.7 formwork to curved shall be measured separately & state geometrical nature
F.11.1 In meter square (m2) if height exceeding 1.00m In meter (m) if height n.e 1.00m, shall state height:
N.e 250mm 250mm 500mm 500mm 1.00 meter
TAKING OFF LIST ELEMENT : WBLFF NO. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 ITEM EXCAVATE TO REMOVE TOP SOIL EXCAVATE TO REDUCE LEVEL EXCAVATE PIT TO RECEIVE PAD FOUNDATION EXCAVATE TRENCH TO RECEIVE GROUND BEAM KEEPING SITE & EXCAVATION FREE FROM WATER CONCRETE BLINDING FOR PAD FOUNDATION & GROUND BEAM CONCRETE GRADE 20 FOR PAD FOUNDATION CONCRETE GRADE 30 FOR COLUMN STUMP CONCRETE GRADE 30 FOR COLUMN STUMP FORMWORK FOR PAD FOUNDATION FORMWORK FOR COLUMN STUMP FORMWORK FOR GROUND BEAM 12MM REINFORCEMENTFOR PAD FOUNDATION & GROUND BEAM 8MM REINFORCEMENT FOR GROUND BEAM 20MM REINFORCEMENT FOR COLUMN STUMP 8MM REINFORCEMENT FOR COLUMN STUMP HARDCORE DPM CONCRETE BED UNIT M2 M3 M3 M3 ITEM M3 M3 M3 M3 M M2 M M (KG) M (KG) M (KG) M (KG) M2 M2 M3
D.1
D.12. 7
Exca va te trench to recei ve ground bea m s ta rti ng from reduce l evel ma x depth n.e 1.00m
D.12.4
D.15
Al l ow for keepi ng the s urfa ces of the s i te & exca va ti on free of s urfa ce wa ter
Item
-0.100 0.175
F.1.6 F.3.1
12.85 4
Depth l ea n concrete footi ng col umn s tump 0.025 0.300 0.750 1.075
1.25 1.25 0.03 0.19 4 6.60 0.15 0.03 0.12 4 1.25 1.25 0.30 1.88 4 0.30 0.30
(Ground Bea m)
6.75
F.3.3
Rei nforced i ns i tu concrete Gra de 20 i n i s ol a ted founda ti on Ba s es (Pa d Founda ti on), i n 4 nos
F.3.15
F.3.5
Length Length
Ground Bea m(Length) 7.200 l es s 2conc cover(2 x 0.04) -0.080 7.120 2 bends (2 x 0.30) 0.600 7.720
F.8.4a
F.11.1
Wi dth Wi dth
4 5.00
F.15 F.15.4
4
12mm di a meter hi gh tens i l e s teel rei nforcement i n s tra i ght & bend ba rs i n founda ti on :
4 10 1.69
(Pa d Founda ti on)
F.11.1
4 2
1.20 0.75
4 4 7.72
(Ground Bea m)
6.60
F.8.1 Stated :
Type, quality and diameter of steel Section of bar if other than plain circular
F.8.2 Bar reinforcement shall be measured in meter (converted to KG) F.8.4a for foundation, column, pier bases, ground beams, pile caps and the like F.8.4j for insolated column, beams and lintels F.9.3 for fabric reinforcement (m2)
5Y12-250 5 bars of reinforcement Y = high yield (high tensile) 12 = 12mm diameter 250 = 250mm center to center 6R8-225 6 bar of reinforcement R = mild steel 8 = 8mm diamter 225 = 225mm center to center
Conversion Factor:
DIAMETER 6MM 8MM 10MM 12MM 16MM 20MM 22MM FACTOR 0.222 0.395 0.617 0.888 1.579 2.467 2.985
As a:
base foundation before receiving concrete bed Filling up to make up level
D.26:
Thickness exceeding 250mm, measured in m3 Thick n.e 250mm measured in m2 (stated the thickness)
K.1.1a K.2.3:
M2 if covering > 300m M if covering < 300m (stating stages of 150mm) Shall stated classification:
Flat covering or slope n.e 10 Slope > 10 n.e 45 from horizontal Slope > 45 from horizontal and vertical coverings
K.2.1, stated:
Kind & quality of material Thickness & number of coats & layer Nature of base Surface treatment
TAKING OFF LIST ELEMENT : WBLFF NO. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 ITEM EXCAVATE TO REMOVE TOP SOIL EXCAVATE TO REDUCE LEVEL EXCAVATE PIT TO RECEIVE PAD FOUNDATION EXCAVATE TRENCH TO RECEIVE GROUND BEAM KEEPING SITE & EXCAVATION FREE FROM WATER CONCRETE BLINDING FOR PAD FOUNDATION & GROUND BEAM CONCRETE GRADE 20 FOR PAD FOUNDATION CONCRETE GRADE 30 FOR COLUMN STUMP CONCRETE GRADE 30 FOR COLUMN STUMP FORMWORK FOR PAD FOUNDATION FORMWORK FOR COLUMN STUMP FORMWORK FOR GROUND BEAM 12MM REINFORCEMENTFOR PAD FOUNDATION & GROUND BEAM 8MM REINFORCEMENT FOR GROUND BEAM 20MM REINFORCEMENT FOR COLUMN STUMP 8MM REINFORCEMENT FOR COLUMN STUMP HARDCORE DPM CONCRETE BED UNIT M2 M3 M3 M3 ITEM M3 M3 M3 M3 M M2 M M (KG) M (KG) M (KG) M (KG) M2 M2 M3
F.3.5
1.98
F.8.4a
F.11.1
Wi dth Wi dth
4 5.00 20.00
F.15 F.15.4
4
12mm di a meter hi gh tens i l e s teel rei nforcement i n s tra i ght & bend ba rs i n founda ti on :
F.11.1
4 2
1.20 0.75
3.60
=60.03 kg
6.60 52.80
219.37
=219.37 kg
PAGE : 3 OF 3 DESCRIPTION
Length/Wi dth Ground Bea m (Gi rth) 7.200 l es s 2 col s tump -0.600 6.600
F.8.4a
1.300 l es s 8 conc cover hook (24 x 0.008) -0.320 0.980 0.192 1.172
Fi l l i ng up to ma ke up l evel a vera ge 150mm thi ck wi th ha rdocre of cl ea n ha rd broken s tones obta i ned off s i te
D.26 D.23.1
Pol ythene not l es s tha n 1000 ga uge hori zonta l d.p.m l a pped 10mm a t joi nts l a i d on ha rdcore
Length pa d col s tump l a p i n col 0.300 0.750 0.500 1.550 l es s conc cover -0.400 1.150 bend 0.200 1.350
F.8.4a
F.8.5
4 6 1.07 25.68
8mm di a meter mi l d s teel rei nforcement l i nk i n i s ol a ted col umn s tump =25.68 m x 0.395 = 10.14 kg
10.14
QUERY LIST ELEMENT : WBLFF NO. QUERIES 1 Material & Source of hardcore 2 3 4 5 6 Method to keeping site & excavation free from water Thickness of excavate top soil Thickness of Concrete Cover ASSUMPTIONS Hard broken stones & off site By Pump 100mm deep 40mm thick REMARKS Confirmed with Site Engineer Confirmed with Site Engineer Confirmed with Site Engineer Confirmed with Site Engineer Confirmed with Site Engineer Confirmed with Site Engineer
Grade of Lean/Concrete Blinding Grade 7 Grade Concrete for footings, ground beams, bed Grade 20
Bill No. 2 - Excavation & Earth Works ITEM DESCRIPTION EXCAVATION AND EARTHWORK Excavate to Top Soil Average depth 100mm Excavate to Reduce Level Max depth n.e 0.25m Excavate Pit to Receive Pad Footing Starting From Reduce Level Max depth n.e 2.00m Excavate trench to receive ground beam starting from reduce level Max depth n.e 1.00m Disposal of Water Allow for keeping the surfaces of the site & excavation free of surface water Hardcore Filling up to make up level average 150mm thick with hardocre of clean hard broken stones obtained off site UNIT QUANTITY RATE (RM) AMOUNT (RM)
M2
71
M3
13
M3
M3
Item
M2
44
Bill No. 3 - Concrete Works ITEM DESCRIPTION CONCRETE WORKS Concrete grade 7 blinding n.e 100mm thick laid on earth for: A B Pad Footing Ground Beam Reinforced insitu concrete Grade 20 in: Pad Footing Ground Beam Concrete Bed Reinforced insitu concrete Grade 30 in: Column Stump Formwork to edges/sides exceeding 250mm 500mm high for: Pad foundation Ground Beam Formwork to edges/sides for: Column stump 12mm diameter high tensile steel reinforcement in straight & bend bars in foundation : K L Pad Foundation Ground Beam KG KG 60 219 TOTAL TO COLLECTION : Bill No. 3/1 M3 M3 0.19 0.12 UNIT QUANTITY RATE (RM) AMOUNT (RM)
C D E
M3 M3 M3
2 2 1
M3
0.27
G H
M M
20 53
M2
Bill No. 3 - Concrete Works ITEM DESCRIPTION CONCRETE WORKS 8mm diameter mild steel reinforcement in: Ground beams Column Stump 20mm diamter high tensile steel reinforcement in straight & bend bar in: Column Stump UNIT QUANTITY RATE (RM) AMOUNT (RM)
A B
KG KG
52 10
KG
107
Water Proofing System Polythene not less than 1000 gauge horizontal d.p.m lapped 10mm at joints laid on hardcore M2
44
Bill No. 3 - Concrete Works ITEM DESCRIPTION Collection Page Bill No.3/1 Collection Page Bill No.3/2 UNIT QUANTITY RATE (RM) AMOUNT (RM)
Final Summary ITEM A B DESCRIPTION Bill No. 2 - Excavation & Earth Works Bill No. 3 - Concrete Works UNIT QUANTITY RATE (RM) AMOUNT (RM)
TOTAL AMOUNT :
TAKING OFF LIST ELEMENT : WBLFF NO. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 ITEM EXCAVATE TO REMOVE TOP SOIL EXCAVATE TO REDUCE LEVEL EXCAVATE PIT TO RECEIVE PAD FOUNDATION EXCAVATE TRENCH TO RECEIVE GROUND BEAM KEEPING SITE & EXCAVATION FREE FROM WATER CONCRETE BLINDING FOR PAD FOUNDATION & GROUND BEAM CONCRETE GRADE 20 FOR PAD FOUNDATION CONCRETE GRADE 30 FOR COLUMN STUMP CONCRETE GRADE 30 FOR COLUMN STUMP FORMWORK FOR PAD FOUNDATION FORMWORK FOR COLUMN STUMP FORMWORK FOR GROUND BEAM 12MM REINFORCEMENTFOR PAD FOUNDATION & GROUND BEAM 8MM REINFORCEMENT FOR GROUND BEAM 20MM REINFORCEMENT FOR COLUMN STUMP 8MM REINFORCEMENT FOR COLUMN STUMP HARDCORE DPM CONCRETE BED UNIT M2 M3 M3 M3 ITEM M3 M3 M3 M3 M M2 M M (KG) M (KG) M (KG) M (KG) M2 M2 M3
In a group of 4 Write a detail report on: The Application of Information Technology in Estimation Topics to cover:
History/Origin Features of the software Advantages/Disadvantages Comparison between using Manual & Software Estimation in term of:
Time Quality Cost
What is an estimate?
FOR A BUNGALOW IT WILL COST AROUND RM 2MIL
AN ACTIVITIES THAT ENABLES TO OFFERS TO PRODUCE AN OUTPUT WITH A SUM OF MONEY IN A RETURN
Seeley (1996)
To produce a cost forecast for a project without a detail design. For clients to be more aware on financial impacts and liabilities.
A good estimation will produce a good cost plan for the entire project phase.
PARTY Clients
Architect / Engineer
FUNCTIONS & IMPORTANCE To prepare a sufficient monetary budget to fund the project To get an idea on the monetary impacts/liabilities As an indicator against the probable cost at early stage of construction To assist the clients getting the most competitive tender As a guidelines to design
PARTY Contractor
Project Manager
FUNCTIONS & IMPORTANCE To prepare a realistic offers to undertake the project Tender entry to ensure that the tender submitted is competitve To determine the actual construction cost, hence to determine percentage of profit To avoid wastage obtain accurate info on resources As a guidelines to control the project cost
Types of project Size and design Quality and types of finishes Method of construction Variation of prices
Materials Labour Plant
OPTIONS OF ACTION Downgrades the variables on factors of estimation Ask for a addition funds Stop/postpone the project
Preliminary Stage
Unit Method Volume Method Gross Floor Area (GFA)
Detail Stage
Approximate Quantity Method
Also known as Cost According to Building Function Related with the occupancy Advantages:
Disadvantages:
Easiest & Fastest method Can be done without any single drawing
Multiplying the amount of occupancy with the unit price/occupancy. Estimation of a School Building:
Occupancy = 1000 students Unit price/occupancy = RM 1,500/students Therefore, total estimate for a School Building is: = Total occupancy x Unit price/occupancy = 1000 students x RM 1,500 = RM 1,500,000.00
Use widely back in the 90s Usually used for estimating building services components Advantages:
Disadvantages:
Fast
Too gross Cant help architect much in designing Difficult to get the similar past data cost
Multiplying the volume (m3) of building with the unit price/volume (m3)
20.00
0.60
3.50
10.00
3.50
1.00
PLAN VIEW
SECTION VIEW
The most popular in Malaysia Plenty of cost data in the industries Advantages:
Easy to understand by architect and client Fast Wide range of data cost
Disadvantages:
Doesnt consider overall design of the building Plenty of variables need to be consider
Need to differentiate certain area:
Ventilation / Circulation Area doesnt bring profit
Multiplying the GFA (m2) of building with the unit price/GFA (m2)
172.50
172.50
PLAN SECTION
Disadvantages:
Time consuming Plenty of data needed
Quantity need to be calculated grossly for each item Unit price is based on CURRENT RATES Need to allow some % for unmeasured items
Excavation to reduce level 400mm and remove surplus, lay 200mm thick hardcore, DPM, and 200mm thick concrete (grade 30) Bed M2 7.50 1.75
13
51
663.00
13.13
Area A)
BUILD UP RATE 400mm thick excavation & disposal 200mm hardcore 200mm thick concrete (Grade 30) DPM TOTAL RATES
RM 5.00 7.00
Half brickwall in cement and sand (1:3) including plastering and two coats emulsion paints both side M2 18.50 3.00
56
72.45
4,057.20
55.50
Wall A)
BUILD UP RATE Half Brick wall / m2 = RM 28.00 Plastering Both Side/m2 = RM 12.00 x 2 Painting Both Side/m2 = RM 8.50 x 2 Allowance for stiffener @ 5% TOTAL RATES RM 28.00
24.00
SUMMARY ITEM A
DESCRIPTION
Excavation, Hardcore, DPM, and concrete bed Half brickwall, painting plastering and
METHOD
Unit
PHASE OF PROJECT
Preliminaries
Feasibility
KEY NOTES
Occupancy
To
UNIT
Cost/occupancy
Cost/student Cost/bed Cost/m3
Study
Volume
Brief
Proposal
GFA
Brief
Proposal
Cost/m2
popular
Approximate Detail
Design
Widely
As M M2 M3
Quantity
5.00
10.00
5.00
1.00
PLAN VIEW
SECTION VIEW
250.00
PLAN SECTION
In a group of 4 Write a detail report on: The Application of Information Technology in Estimation Topics to cover:
History/Origin Features of the software Advantages/Disadvantages Comparison between using Manual & Software Estimation in term of:
Time Quality Cost
An agreement enforceable under law. The agreement legally binding between two parties or more, provided that certain conditions are observed (Contract Act, 1976) Types of contract:
Simple contract Special contract
Constituted by an offer made by 1 party (offeror) and its acceptance by the other party (offeree) supported by consideration.
OFFER SUPPORTED BY CONSIDERATION
ACCEPTANCE
Back in 90s, most of the construction law is a simple contract Simple contract can be form by:
Written Verbal Action by parties involve (offer and acceptance)
A document signed, stamping and given to all the parties involved Start widely used in the Government Sector Need to be in form of written Validity for 12 years
OFFER SUPPORTED BY CONSIDERATION
ACCEPTANCE
INTENT - Both parties wish to make the contract and ready to face the consequence if the contract breach FREE WILL All agreement & discussion is made on free will. There are no blackmail or treats involved CAPACITY Both parties involved is eligible & capable to be in a contract LEGAL all the contract need to follow common law SPECIFIC all information in the contract need to be specific. There is no room for ambiguity & unclear item
OFFER (OFFERER)
1.
ACCEPTANCE (OFFEREE)
1.
2.
3.
4.
5.
Must be firm, certain & communicated to the offeree Valid if described as an estimate (Crowshaw v Pritchard, 1899) Maybe withdrawn at any in before acceptance (Routledge v Grant 1828) Withdrawal of an offer takes place when notice received by offeree (Routledge v Grant 1828) Maybe made to specific person, group of people or even public (Carlill v Carbolic Smokeball Co., 1893)
2.
3.
4.
5.
6.
Must be unconditional and must be communicated to the offerer Must be made within a reasonable reason/time Manner of acceptance must correspond with the manner prescribed by the offer Cannot be withdraw without the consent of the offerer (Routledge v Grant 1828) If the offeree inserts new terms, then it is counter offer (destroy the original offer) (Davies & Co. Shopfitters Ltd v Wiliam Old, 1969) A request for further info doesnt count as counter offer (original offer remains)
Some right / interest / profit or benefit accruing to one party or some forbearance /detriment / loss / responsible given, suffered or undertaken by the other In forms of:
Thing/goods Service/performance of work Payment
Contractor ask quotation from supplier supplier give quotation to contractor Contractor amend some of the quotation and return back to the supplier
All contents in a contract describes rights and obligations of parties under the contract The court doesnt make the contract for the parties. The parties made for themselves. The court function is to interpret and apply the contract to the parties involved Two types of terms:
Express Implied
Contract sometimes have been reduced from pure sentences to any kind of forms. Anything that expressly stated & incorporated in the contract. Examples:
Appendix Drawings Schedules Specifications Bills of Quantity
Not expressly stated (in writing or verbally) at the time the contract is made but are implied in law Examples:
The contractor will do the work in a workmanlike manner (with proper skill and care). He will proceed with reasonable diligence and complete within agreed time with good and proper materials The client will give possession of the site and will supply all necessary details within reasonable time. He will not obstruct the contractor works and will pay reasonable sum for the progress of works
Sets out:
Names of the parties to the contract Location & scope work Express agreement by contractor & client Persons who carry out respective functions:
Architect Engineer Qs
Sets out:
The normal performance required from each party Rules and procedures for conduction the contract Rules on dealing with problems or disputes arise Terms of payment to the contractor
Important to ensure there are no conflicts with others documents the contracts
OFFER
OFFER
COUNTER OFFER
ACCPTANCE
NO. 1
CONTRACT
NO. 2
ACCEPTANCE
CONTRACT
INVITATION TO TREAT
OFFER
NO. 3
ACCEPTANCE
CONTRACT
Some employer do get involved / some prefer to stay away If minimal involvement Traditional Contracting If greater involvement Construction Management
Designing & Managing a project is two different activities Employers may have various preferences:
Different Parties designing & managing Same parties designing & managing
Different Parties Traditional Contractual Same Parties Construction Management / Package Deal
Reasons of changing:
Change in user requirements, rethinks Revision / refinement of design due to incomplete information,discripencies, unclarities Changes due to external factors
Nature and extent of the remedies available to employer if breach happens who to blame?! Package Deal / Construction Management - Single point responsibility Traditional Contractual Varies point of responsibilities
Types of complexity:
Technical Functional Organizational Activities/Processes
Simple Moderately complex = Package Deal Mid range complexity = Traditional Contractual Complexity = Constructions Management
Being primary criteria influencing the procurement decision Fast = Construction Management Slow = Traditional Contractual
The most oldest, familiar types of contract in industry The origin is from UK where:
the fast growth of professional consultant at that time A lots of bulk government project
Where the design is totally complete before selecting contractor Where an independent project team will be used Where employer required certainty of price
The fastest growing method in the country Usually in lump sum basis Design & Build type:
Most Famous Contractor undertakes: Client:
Design Construction Financing Approvals
Turnkey type:
Financing Approvals Design Construction
Where client wants a single responsibility party Where project is novel and complex. Where client want the price certainty (Lump Sum)
Originated in the west as the 1920s Enter Malaysia around 80s a form of contractual arrangement whereby a contractor is paid a fee to manage the project on behalf of client a contract to managerather than a contract to build The management contractor undertakes:
Planning / programming all stages / activities of project Contribute his expertise / experience on buildability to design process Coordination, time, costs and quality over works contractor
The works is packaged by the management contractor and sub it out to work contractor who actually undertake the actual works (construction)
In complex project involve high tech and need greater flexibility in design Where the project is too large Where employers to capitalize involvement of large number of sub con
In a group of 4
Write a detail report on: TYPES OF CONSTRUCTIONS CONTRACT (Traditional, Package Deal, Management)
Each group need to:
Conduct an interview & discussion with any company personnel / organization
Topics to cover:
Get a case study on the type of construction contract How they decide & what are the criteria they look into Why they used that type Advantages & Disadvantages Challenges, Solutions and Recommendations
SUBMIT THE REPORT (SOFT & HARD COPY) ON (30th JANUARY 2013)
TENDERING
Contractor A (Offering)
Contractor B (Offering)
Contractor C
(Offering)
TENDERING
DESIGN
Main procedure by the Government & Private Known as an indiscriminate request for tenderers Invitation to treat is used to invite the tenderer Invitation can be:
To the world at large To contractors having the eligibility
Alternatives method to address the limitations of the open tendering procedure Only Limited number of contractors are prequalified / pre-selected are invited to submit their bids Usage this method:
Making tendering procedure more manageable Improve quality of the bids received Urgency of the works Specific reason
Also known Direct Nego Common method in the East, before open tender is practiced Widely spread as an aspects of human activity Fundamental elements:
No competition Final outcome through mutual consent / agreement
Disputes arises when one party makes a claim against the otherand the other party denies liability either expressly or by conduct
Litigation
a process of resolving a legal dispute in court and heard in public Begins with a plaintiff issuing writ to defendant (lodging a written claim to court) Involve:
Oral argument Discovery documents or evidences Examination of witness & evidence
It is subject to any appeals Judgment can enforced against the defendant personally or his assets Decision based on:
Evidence presented Application of relevant legislation and precedent cases
Substantial legal issues Proceedings are multi party Proceedings difficult to control Allegations of dishonesty One party refuses to acknowledge
Advantages:
A legally qualified judge The doctrine of judicial precedent will be applied by the judge A binding decision Judgments can be enforced through courts if necessary Theres an appeal system
Disadvantages:
Very public, expensive, time consuming and complicated Not suitable for technical issues Lawyers is necessary Parties have no control over the proceedings Could ruin business relations between parties Risk that a party may lose the case Limited international enforceability of judgments
where parties in dispute agree to settled by a neutral person, arbitrator (3rd party) and bound by that decision Provision of the Arbitration Act 2005 (Act 646) Each side will forward their agruementarbitrator need to find fact & apply the law & grant to both parties Can be agree on pre or once the disputes arise Arbitrator can be:
Chosen by contract parties Already being appointed during contract formation
Select arbitrator Choose venue, time of procedures
There are dispute between to parties They agree to refer to arbitration Parties must agree the decision is final & binding Subject matter of dispute is highly technical Whether insurance company is liable in full or apart Receiving a binding opinion is relevant Where parties wish to avoid negotiations Where a matter involves the quantification of dispute
Usage:
Advantages
Privacy Convenience Speed Less formal Business relationship Expertise of the arbitrator Finality International recognition
Disadvantages
No collection of precedents Understanding the law Costs Point of law Enforcement 1 dispute per hearing No 3rd parties involvement
International arbitration needs 3 arbitrator Domestic arbitration needs only 1 arbitrator Appointing arbitrator:
Parties can agreed on one name Usually the president of professional institutions (PAM, IEM or RISM) will be appointed If fails, may request High Court for the appointments
Selection criteria:
Any qualifications specified by parties Independent and impartial For international arbitration, may consider arbitrator of a nationality other than those parties
Arbitrator is not liable for anything done unless acting in bad faith (dishonest, malice)
Apply to court
Usually arbitrator will deals with issues liability then the quantum of claim Award shall be in writing and delivered to each party after arbitrator sign it It must deal with all issues that were subject to the dispute Content of award:
Who is successful party Amount of damages that have been awarded
CLIENT
CONTRACTOR
PLANT
SUPPLIER
NSC
OVERHEAD
STAFF
It is clients main obligations to pay the contractor in consideration of the execution & completion of the works by contractor All payment need to be done according to conditions of contract
Adv. Payment
Interim Payment
Final Payment
Start Project
Completion Project
End of Project
The 1st payment by client to the contract BEFORE the work start Main Contractor entitled to receive either:
25% of builders work OR RM10,000,000 max
NSC entitled:
Builders work = Contract Sum (PC Sum + Prov. Sum + Contingencies Sum)
Contract Sum LESS Prov. Sum PC Sum Contingencies TOTAL FOR BUILDER'S WORK Amount of Advance Payment = = Therefore =
(RM) 50,000,000.00
43,980,000.00
Contract Sum LESS Prov. Sum PC Sum Contingencies TOTAL FOR BUILDER'S WORK Amount of Advance Payment = = Therefore =
Contractor submits:-
- Performance security
- Guarantee for advance payment - Insurance polices - Signed letter of acceptance Certification by client (within 30 days)
It will be recoup in interim payment Recoupment starts when value of Builders Works reaches 25% When reaches 75%, full recoupment will be made.
Where;
$D $A $B $P
= = = =
cumulative deduction to be made in Interim Payment certificate total amount of advance paid, total contract value of builder's work gross certified value of builder's work executed (including amount certified for materials on site) or agreed cumulative scheduled payments in excess of 25% of $B = = RM RM - RM RM RM + RM 10,000,000.00 483,077,120.00 (Overall Contract Amount) 109,340,000.00 (Provisional Sums) 373,737,120.00 183,898,934.12 (Builder's Works) 4,427,486.37 (MOS) 188,326,420.49 373,737,120.00 93,434,280.00 94,892,140.49
$A $B
$P(a)
; Gross cerified value of Builder's Works + MOS (To refer claim summary) ; Excess of 25% of $B
$P(b)
25% x = =
$P
; $P(a) - $P(b)
Therefore; $D
= 200%
x RM RM
RM
94,892,140.49
$D $D
= 5.35% x RM = RM
5,076,729.52
The contractor entitled to interim payment at regular interval with a proper evaluation Payment will done based on:
Work done Material on site
Interim Payment
Start Project
Completion Project
End of Project
< 14 days
CERTIFICATION BY CLIENT
< 30 days
PAYMENT MADE
Even if the contractor doesnt make any claims that month, client still need to make a valuation
It is a good practice to set a specific date on each month to do the valuation All claims need to be in proper & agreed formats
For Government project, the value of progress work done+material on site need to exceed RM1,000, then only payment can be made
Method of payments:
Lump Sum Percentage work done Pro-rate
LUMP SUM Contract Period Total Value Plaster & Paint (RM) LUMP SUM PAYMENT (RM)
PERCENTAGE WORK DONE Contract Period Total Value Plaster & Paint
PRORATE Contract Period Total Value Plaster & Paint PRORATE PAYMENT FOR 24 MONTH
Contractor entitled to payment for all unfixed material delivered to site but not yet incorporated in the work Material on site must not be removed without consent of client. Contractor is responsible for the safety etc Prerequisite for payment:
Material delivered to site Material will be used in the permanent works (accordance to contract) Not prematurely brought to site Adequately protected, stored against theft, whether or other casualties Contractor have paid everything to supply (contractor need to produce a prove)
It will shows the final total cost of the completed job to client. This final total cost = original contract sum + adjustment for variation works + provisional quantites + other adjustments made Usually the amount is not much cause all payment have been made through interim payment This will allows client to make final correction/adjustment made through the interim payment (if necessary)
< 30 days
PAYMENT MADE
As a evident that the works have been properly carried out and completed All responsibilities of the works being transferred to client As a evident all adjustment in term of monetary have been made.