P.N. Dandeniya
QS Level 05
Batch: - 2023/01
Quantity Surveying Practice II
September 2020(Semester II)
1. State at least five duties of a quantity surveyor in point form.
Answer
Cost Estimation:
Prepare accurate and detailed cost estimates for construction projects, considering materials,
labor, equipment, and other relevant factors.
Cost Control:
Monitor and control project costs throughout the construction process, identifying and
addressing any variations or discrepancies between planned and actual expenses.
Procurement Management:
Manage the procurement process, including tendering, negotiation, and awarding contracts to
contractors and suppliers, ensuring compliance with project specifications and budget
constraints.
Risk Management:
Assess and mitigate potential risks related to cost overruns, delays, and other factors that may
impact the project's financial viability. Develop strategies to manage and minimize risks.
Quantity Takeoff and Measurement:
Perform detailed quantity takeoffs from architectural and engineering drawings, accurately
measuring and quantifying materials and components to facilitate cost estimation and project
planning.
Value Engineering:
Evaluate alternative materials, construction methods, and design options to optimize project
costs while maintaining quality and performance standards.
(ii) Write the main 03 stake holders in relation to the construction industry.
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Answer
Client/Owner, Contractors and Subcontractors and Design Professionals (Architects,
Engineers, Designers)
(iii) Briefly explain two of them mentioned in part (ii).
Answer
Client/Owner:
The client or owner is a primary stakeholder in the construction industry. They initiate the
construction project, provide the funding, and have a vested interest in the successful and
timely completion of the project. The client typically defines project requirements,
expectations, and goals, and their satisfaction is crucial for the overall success of the
construction endeavor.
Contractors and Subcontractors:
Contractors and subcontractors are key stakeholders responsible for the physical construction
of the project. They interpret the project specifications and plans, provide cost estimates, and
execute the construction work. The timely and high-quality performance of contractors and
subcontractors directly affects the project's success and the satisfaction of the client.
(iv) State at least 06 information to be provided in a tender notice.
Answer
Name of the department inviting tender
Name of work and location
Designation of officer inviting tender
Last date and time of receipt of tender
Period of availability of tender document
Contract terms and conditions
Contract information
(v) State the 04 stages of Bid evaluation process.
Answer
Preliminary Evaluation:
At this stage, the evaluation team reviews all submitted bids to ensure they meet the basic
eligibility criteria and comply with the requirements outlined in the tender documents. This
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includes checking for completeness, accuracy, and adherence to specified formats. Bidders
who do not meet the minimum requirements may be disqualified at this stage.
Technical Evaluation:
In this stage, the technical aspects of the bids are assessed. This includes evaluating the
proposed methodologies, technical specifications, and any other technical details relevant to
the project. The goal is to determine the bidders' capabilities, expertise, and understanding of
the project requirements. Evaluation criteria often include the proposed approach,
qualifications of the team, and compliance with technical specifications.
Commercial Evaluation:
The commercial or financial evaluation involves assessing the cost proposals of the bidders.
This includes a detailed examination of the pricing structure, payment terms, and any other
financial aspects of the bids. The objective is to ensure that the proposed costs are reasonable,
competitive, and within the budget constraints of the project. The evaluation team may also
consider factors such as warranties, guarantees, and the overall value for money.
Final Evaluation and Award:
In the final stage, the evaluation team combines the results of the technical and commercial
evaluations to make a final assessment of each bidder. The overall best-suited candidate is
determined, considering both technical capabilities and cost-effectiveness. The contract may
be awarded to the bidder with the highest overall score or the one that best meets the project's
objectives. The award decision is typically based on a combination of qualitative and
quantitative factors.
2. (i) What do you understand by the term “tender document”? List and briefly describe
at least eight components which are included in a tender document.
Answer
A "tender document" is a set of documents prepared by the client or project owner to provide
detailed information about a specific project and to invite bids or proposals from potential
contractors or suppliers. The tender document serves as a formal invitation for interested
parties to submit their offers for the project.
Components included in a tender document
Invitation to Tender (ITT):
The ITT is the formal invitation from the client to potential bidders, outlining the project
details and inviting them to submit bids. It provides an overview of the project and
instructions on how to participate in the tender process.
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Instructions to Bidders:
This section provides detailed instructions on how bidders should prepare and submit their
proposals. It includes information on submission deadlines, required formats, and any
specific procedures to be followed during the tendering process.
Project Overview:
A comprehensive description of the project, including its objectives, scope, and any specific
requirements. This section helps bidders understand the nature and context of the project.
Technical Specifications:
Detailed technical requirements for the project, including materials, construction methods,
and any other specifications that bidders need to meet. This section ensures that bidders
understand and can fulfill the technical aspects of the project.
Scope of Work:
A detailed breakdown of the work to be performed under the contract. This may include
specific tasks, milestones, and deliverables. The scope of work provides clarity on the
project's requirements and expectations.
Qualification Criteria:
Criteria that bidders must meet to be eligible for consideration. This may include financial
stability, relevant experience, certifications, and other qualifications. It helps the client ensure
that bidders have the necessary capabilities to successfully complete the project.
Contract Terms and Conditions:
The legal and contractual terms and conditions that will govern the relationship between the
client and the selected bidder. This section includes details on payment terms, warranties,
performance guarantees, and other contractual obligations.
Bid Form:
A standardized form for bidders to fill out with their pricing information and other details.
This form ensures consistency in the way bids are submitted and facilitates easier comparison
during the evaluation process.
(ii) What are the Standard Bidding Documents published by the ICTAD (CIDA) for
procurement of work?
Answer
Standard Bidding Document (SBD) for Civil Works:
This document provides the standard format and guidelines for bidders to submit their
proposals for civil engineering and construction projects. SBD 01, SBD 02, SBD 03, SBD 04
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Standard Request for Proposals (RFP) for Design-Build Projects:
In cases where the design-build approach is used, this document outlines the requirements for
both design and construction aspects of the project.
Standard Request for Quotations (RFQ) for Small Works:
For smaller construction projects, a standard RFQ may be used to solicit quotations from
interested contractors.
Standard Form of Agreement (SFA) for Construction:
The SFA outlines the legal and contractual terms between the client and the contractor. It
includes details on payment, performance, warranties, and other contractual obligations.
Conditions of Contract for Construction (General):
This document sets out the general conditions that govern the contract for construction works.
It covers aspects such as contract variations, suspension, and termination.
Contract Data and Particular Conditions:
These sections of the bidding documents provide specific details related to the project,
including project-specific conditions, special requirements, and any other relevant
information.
(iii) What is the recommended amount (Range) for works contract in each document?
Answer
SBD01 –> 10 M to 100M rupees
SBD02 -> 100M rupees >
SBD03-> up to 10M rupees
3.(i) What are the 04 methods used in cost control during the construction phase? Give two
examples for each of them.
Answer
Cost control during the construction phase is crucial to ensure that a project stays within
budget. Several methods are employed to manage and control costs effectively. Here are four
commonly used methods with two examples for each:
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Budget Monitoring:
Ex1: Regular Budget Reviews - Conduct regular reviews of the project budget to compare
actual costs against the planned budget. Identify any variances and take corrective actions to
address budget overruns.
Ex2: Forecasting - Use forecasting techniques to predict future costs based on current
performance and trends. This allows for proactive measures to be taken if potential budget
issues are anticipated.
Earned Value Management (EVM):
Ex1: Cost Performance Index (CPI) - Calculate the CPI by dividing the earned value by the
actual cost. A CPI greater than 1 indicates efficient cost performance, while less than 1
suggests cost overruns.
Ex2: Schedule Performance Index (SPI) - Evaluate the SPI by dividing the earned value by
the planned value. An SPI greater than 1 signifies good schedule performance, while less than
1 indicates delays.
Change Order Management:
Ex1: Change Order Review - Establish a formal process for reviewing and approving change
orders. This ensures that all changes are evaluated for their impact on cost and schedule
before implementation.
Ex2: Cost-Benefit Analysis - Conduct a cost-benefit analysis for proposed changes to assess
the financial implications. Evaluate whether the benefits of the change justify the additional
costs.
Resource Management:
Ex1: Resource Allocation - Efficiently allocate resources, such as labor, materials, and
equipment, to different project activities. Avoid resource bottlenecks and optimize resource
utilization to control costs.
Ex2: Supplier Negotiation - Negotiate with suppliers for favorable terms, discounts, or bulk
purchase arrangements. Effective negotiation can lead to cost savings on materials and
services.
(ii) What are the various types of contracts? Briefly explain at least 03 types.
Answer
Lump Sum Contract, Cost-Plus Contract and Unit Price Contract
Lump Sum Contract (Fixed Price Contract):
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In a lump sum contract, also known as a fixed price contract, the contractor agrees to
complete the entire project for a predetermined fixed price. This price is typically determined
through a competitive bidding process or negotiation. The contractor bears the risk of cost
overruns, making this type of contract suitable for well-defined projects with minimal
uncertainties. Lump sum contracts provide clients with cost certainty, but contractors may
include contingency amounts to mitigate potential risks.
Cost-Plus Contract:
In a cost-plus contract, the client agrees to reimburse the contractor for the actual costs
incurred during the construction process, plus an additional amount for profit. There are two
main types of cost-plus contracts: cost-plus-fixed-fee (CPFF) and cost-plus-percentage-ofcost (CPPC). In a CPFF contract, the contractor receives a fixed fee regardless of the project's
final cost, while in a CPPC contract, the fee is calculated as a percentage of the project's total
cost. Cost-plus contracts are suitable for projects with high uncertainties or where changes are
likely to occur, as they provide flexibility but may lead to increased project costs.
Unit Price Contract:
A unit price contract, also known as a measure and pay contract, involves pricing the work
based on specific unit rates for various items of work. The contractor is paid for the actual
quantity of work completed, multiplied by the agreed-upon unit price. This type of contract is
often used when the scope of work is difficult to define precisely at the outset, and the
quantity of work may vary during the project. Unit price contracts provide flexibility in
handling changes in quantities but require careful measurement and documentation to
determine payments accurately.
(iii) State the advantages and disadvantages for each type.
Answer
*Lump Sum Contract (Fixed Price Contract)
Advantages:
Cost Certainty: Clients have a clear understanding of the project's total cost from the
beginning, providing financial predictability.
Simplified Administration: Lump sum contracts often have simpler administration and
payment processes compared to other contract types.
Disadvantages:
Limited Flexibility: Changes to the scope of work can be challenging and may result in
additional costs or delays.
Risk Transfer: The contractor may include contingency amounts in the contract price,
potentially leading to higher initial costs for the client.
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Dispute Potential: Disputes may arise if the scope is not precisely defined, leading to
disagreements over what is included in the fixed price.
*Cost-Plus Contract
Advantages:
Flexibility: Accommodates changes in project scope more easily, making it suitable for
projects with uncertainties or evolving requirements.
Transparency: Clients have visibility into actual costs, promoting transparency and trust
between the client and contractor.
Disadvantages:
Cost Uncertainty: Clients may face uncertainty about the final project cost, as it depends on
actual expenses incurred during construction.
Administrative Complexity: Cost-plus contracts can be administratively complex, requiring
careful documentation and verification of costs.
*Unit Price Contract
Advantages:
Flexibility: Well-suited for projects where the quantity of work is uncertain, as the contract
price is based on measured units.
Easier Scope Changes: Changes to the scope can be more straightforward to manage, as they
are based on unit rates.
Disadvantages:
Quantity Uncertainty: The final project cost may be uncertain if the actual quantity of work
differs significantly from initial estimates.
Potential for Disputes: Disputes may arise over the accurate measurement and valuation of
work items.
5. Write down short notes on the following
(a) Mobilization/ Advance Payment
(b) Life cycle costing
© Retention money
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(d) Price Adjustment
(e) Tender Evaluation committee
Answers
(a) Mobilization/ Advance Payment
Mobilization or advance payment is a financial arrangement commonly used in construction
contracts. It involves the provision of funds by the client to the contractor before the
commencement of actual construction work.
(b) Life cycle costing
Life Cycle Costing (LCC) is a financial assessment method that evaluates the total cost of
ownership of a project, product, or asset throughout its entire life span, considering initial
costs, operational, maintenance, and disposal costs.
Initial Costs
Discount Rate
Operational Costs
Maintenance
Costs
Disposal Costs
Operating Life
© Retention money
Retention money, often referred to simply as "retention," is a portion of the contract value
withheld by the to the contractor during the construction phase. This amount is retained as a
form of security until the completion of the project or a specific stage, ensuring that the
contractor fulfills all contractual obligations.
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(d) Price Adjustment
A mechanism in construction contracts allowing for changes in the contract price to account
for fluctuations in specific costs during the project.
(e) Tender Evaluation committee
A group formed to evaluate bids in a procurement process, ensuring fairness and
transparency.
The committee nominated by purchaser for evaluation of Technical and Financial bids
submitted.
6. (i) What is a budget?
Answer
A budget is a financial plan that outlines estimated expenditures and revenues over a specific
period, typically on a monthly, quarterly, or annual basis. It serves as a tool for organizations,
businesses, or individuals to allocate resources, track financial performance, and set financial
goals
(ii) What are the site conditions that can affect the budget? Give 05 examples
Answer
Site conditions play a significant role in construction projects and can have a direct impact on
the budget. Unforeseen or challenging conditions can lead to increased costs and potential
delays.
Soil Conditions:
The type and condition of the soil at the construction site can significantly impact foundation
design and construction. Poor soil quality, the presence of rock, or the need for additional soil
stabilization measures can result in increased foundation costs.
Environmental Factors:
Environmental conditions such as extreme weather events, flooding, or high winds can
impact construction activities and may require additional safety measures or modifications to
construction methods. These conditions can result in increased project durations and
associated costs.
Subsurface Conditions:
Unforeseen subsurface conditions, such as buried utilities, old foundations, or unexpected
underground structures, can complicate excavation and construction activities. Addressing
these conditions may require changes to the project plan and additional expenditures.
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Accessibility and Logistics:
Limited access to the construction site or challenges in transporting materials and equipment
can affect the efficiency of construction activities.
Regulatory Requirements:
Changes in local building codes, zoning regulations, or other regulatory requirements can
impact the project budget. Compliance with new or updated regulations may require
modifications to the design or construction methods, adding costs to the project.
(iii) What is the difference between BOQ and budget?
Answer
Bill of Quantities (BOQ) and the budget are essential tools in construction project
management; the BOQ provides a detailed breakdown of construction-related quantities and
costs for bidding and payment purposes, while the budget offers a broader financial plan
covering all project-related expenses.
(iv) What are the costs included in a project budget?
Answer
A project budget includes:
Direct Costs:
Labor, materials, equipment, subcontractors.
Indirect Costs:
Overhead, insurance, general and administrative costs.
Construction Costs:
Construction materials, labor, equipment, permits, fees.
Contingency Costs:
Contingency reserve, risk management.
Environmental and Sustainability Costs:
Environmental impact assessments, sustainable design.
(v) What are the objectives of Bill of Quantity? Give 05 examples
Answer
The Bill of Quantities (BOQ) serves several key objectives in construction projects,
providing a detailed breakdown of quantities and costs.
Cost Estimation
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Bid Evaluation
Contract Documentation
Quantification of Work
Payment Applications
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