Qs and Estimation Presentation

8/13/2019 Qs and Estimation Presentation

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Engr Nand Kumar SoofiDir QS), NHA Islamabad

PRESENTED BY

QUANTITY SURVEYING & ESTIMATION

NATIONAL HIGHWAY AUTHORITY


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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


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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 theproject remain feasible and efficient.


QUANTITY SURVEYOR


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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 othercharges

Running and maintenance Costs for the new Road/Building.

Profit of the Company


QUANTITY SURVEYOR


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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.


ROLE OF QUANTITY SURVEYOR


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QS

CostEstimation

Measurement

ProcurementPrice

Adjustment

Payment

QUANTITY SURVEYING & ESTIMATIONRESPONSIBILITIES OF QS


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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


MEASUREMENT


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By using this Measurementknowledge, a QS will be able:

To prepare the Bill of Quantities or Specification document for

tendering purposes.


MEASUREMENT


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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.

BILL OF QUANTITIES (BOQ)



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ESTIMATIONThe 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.

PURPOSEto 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 prospectivedirect and indirect benefits.


COST ESTIMATION


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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.


IMPORTANCE OF COST ESTIMATION


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The primary aim of preparation of CSR is to provide the facility to theEngineers,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


COMPOSITE SCHEDULE OF RATES (CSR)


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

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

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

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


COMPOSITE SCHEDULE OF RATES (CSR)


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RATE ANALYSIS

Materials cost

Manpower cost

Machinary cost

Profit & Overhead


RATES ANALYSIS OF EACH ITEM OF CSR CONSISTS

OF FOUR BASIC INPUT


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TermsEscalation, Price Adjustments & Increase / Decrease.

MeaningAdjustment 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 ratebase 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.


PRICE ADJUSTMENT


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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.


BASE, CURRENT & PROVISIONAL INDICES


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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.


WHY 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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Cost Element Description WeightageFactor C

1 2 3

(i) Fixed Portion Min 0.35 as per PEC

guidelines

(ii) Labor

Max 0.65 and no

factor should be less

than 0.05 ether than

labor and diesel as per

PEC guidelines

(iii) Cement

(iv) Reinforcing Steel

(v) High Speed Diesel (HSD)

(vii) Bitumen

(viii)

Total 1.000


APPENDIX-C TO BID


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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 anddefinition. 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



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The most frequent effect of variation orders is the increase in cost. Variation orders may

affect the projectstotal 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.


EFFECT OF VARIATION


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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.


PAYMENT


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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.


SUPPLEMENTARY SERVICES


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With all these skills place QUANTITY SURVEYORS in a strong positionto take a leading

managerial role throughout the development of a project~


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