Knowledge Base 知識庫

Knowledge Base 知識庫 KCTang Thu, 22/03/2018 - 00:58
  1. This Knowledge Base is purely for the sharing of the knowledge of quantity surveying, and does not constitute as terms and conditions of our consultancy services. Our actual practice may vary to suit individual circumstances. This Knowledge Base shall not be used as evidence of practice and interpretations that we must adopt.
    此知識庫純粹用作分享工料測量的知識,並不構成為敝公司顧問服務的條件及條款。敝公司的實際做法可能因應個別情況而有所變化。此知識庫不能作為我司必須採用某做法及釋義的依據。
  2. This Knowledge Base was first published on Friday, 26th December, 2014 and was previously a WiKi site created on Thursday, 14th January, 2010.
    此知識庫首先於2014年12月26日星期六發布,之前是一個於2010年1月14日星期四建立的 Wiki 網頁

Quality Alerts 質量提示

Quality Alerts 質量提示 KCTang Wed, 04/11/2015 - 19:38

Go to End

 Note

4 Nov 2015: Created.

Where is the satisfaction?
滿足感在那裡?

  1. Winning the trust of clients, being consulted frequently
    客戶信任,時常諮詢
  2. Problem solved
    解決到問題
  3. Proper monitoring of prices, without unpleasant surprises to the clients
    造價跟蹤管理得宜,不出客戶意料之外
  4. Considered fair and reasonable by both the Employers and the Contractors
    發包方及承包方都覺得公平合理

Invisible hand
無形的手

  1. Always be prepared to be audited by a third party
    隨時準備有第三者審計
  2. Professional misconduct would cause damage to the Company not compensable by professional liability insurance
    專業失當就算有保險都不能補償對公司造成的破壞

Treating the counter-parties
對待對手

  1. Fair
    公平
  2. Reasonable
    合理
  3. Non-corruptive
    廉潔

Attending meetings
開會

  1. Be prepared
    要有準備
  2. Watch out deportment
    注意儀態良好
  3. Refrain from smoking
    不要抽煙
  4. Present oneself appropriately
    洽當表現自已
  5. Should not keep silence without contribution
    不要默不作聲毫無貢獻
  6. Should not speak unnecessarily
    不作無謂發言
  7. Say “To check and reply” if necessary cannot answer
    真的不會答時, 不怕答“容後補答”、“要查證再覆”

Estimates for maintenance and renovation
維修裝修估算

  1. Estimates for maintenance and renovation may place greater emphasis on classification by locations. It is not appropriate to classify items under them according to so many elements used for new works, but structured levels are still necessary to facilitate easier reading and understanding. Therefore, the items can be grouped and listed as follows (the locations may be classified before or after them but should not be too trivial):
    維修裝修估算項目比較著重按地方分類,之下不宜再如新建工程的分部分得那麼多,但又要有層次,便於閱讀理解,故可分類排列如下(地方可先分或後分但不宜太瑣碎):

    • Scaffolding
      棚架
    • Removal of existing
      移除現有
    • Walls, Windows and Doors
      牆窗門
    • Fittings
      裝置
    • Finishes (no need to put under headings of floor, wall and ceiling)
      裝飾 (之下不必分地面、牆面、天棚等標題)
    • M&E
      機電
  2. Schedule of Works should be similar
    工程項目清單亦是這樣

Measurement of quantities
計量

  1. Do not rely too much on on-screen measurement of cad or pdf files because there is no record of what have been measured and no detailed breakdown
    不要太依賴用cad或pdf檔 在螢幕計工程量,因計了那裡都無紀錄,又無細數
  2. Use hardcopy and dimensions to measure or use scale where necessary in case of no dimensions
    用紙張件及標示尺寸計算或在無標示尺寸時用尺量
  3. Colour on the hardcopy to indicate extent measured
    在紙張件著色識認計算了那裡

Price information
價格資訊

  1. Build-up a database
    建立資料庫
  2. Collect directive circulars and prices published by Government and authorities
     收集政府、權力機構的指令性通知、價格
  3. Collect market prices through other commercial sources (i.e. cost software vendors)
    收集其他商業渠道的市場價格(例如造價軟件公司)
  4. View newspapers, periodicals, internet
    檢閱報章、期刊、互聯網
  5. Collate internal information
    整理自身的資料
  6. Analyse content ratios and unit costs of past projects
    分析過往工程含量及單位造價
  7. Obtain through tendering
    通過招投標取得

Cash flow table
資金流量表

  1. Use horizontal table with a chart
    盡量使用橫式有圖表那個款
  2. Include complete remarks
    要加齊註釋

Standard documents
標準文件

  1. Use standard documents/templates to prepare fee proposals, tender documents, tender reports and other documents, but may refer to other projects for useful changes
    要用標準文件編寫顧問費報價、招標文件、投標分析報告及其他文件,但可參考其他工程有用的改動
  2. Do not adapt from other projects, unless really appropriate, but should check  the standard documents for any updates
    不要直接用其他工程的改, 除非真的合適,但仍要核對標準文件有無最新的改動

Lead in water problem
鉛水問題

  • Check tender documents for expressions using lead, and check with the designers whether this is appropriate
    檢查招標文件有無用鉛的字句,及與設計單位了解是否適合

Insurance provisions in tender documents
招標文件保險條款

  1. Ensure that the name list of the joint-insured as specified in the Contractors’ All Risks and Third Party Liability insurance provisions is comprehensive; apart from the Employer, the Contractor and sub-contractors of all tiers, note whether the list should include:
    確保規定工程一切險及第三者責任險的條款的聯名被保險人的名單齊全;除發包方丶承包方及各層分包方外,還要注意是否要加入:

    • the Building Manager (being a manager of the relevant properties, he may be held liable)
      物業管理人(因他為相關物業的管理人,可能被追討責任)
    • other contractors employed by the Employer (because their works will be carried out currently with the Works, and the liability for accident may not be clearly separable)
      發包方聘用的其他承包商(因其工程與本工程同時執行,意外責任未必能分得清)
    • consultants (because they are not directly performing the Works, and the insurances can only cover risks caused by the performance of the Works, therefore, it is doubtful whether they should be included as one of the joint-insured) 
      顧問(因他們不是直接執行工程者,而保險只保障執行工程所造成的風險,因此,把他們作為聯名被保險人之一的效用存疑)
  2. Adjust the old term “separate specialist contractor” to match the term used in the new Standard Forms of Contract
    調整“separate specialist contractor”這舊有叫法以符合新標準合同的叫法
  3. State the values of their works for inclusion as part of the sum insured to avoid inadequate insurance cover
    列出他們的工程金額,作為保額的一部分以免保額不足
  4. State expressly work outside boundaries to avoid lack of insurance cover
    特別列出工地外的工程以免保險範圍甩漏
  5. Include in the amount of removal of debris the costs of demolition of building, hoardings (if not included in the present contract), scaffolding for demolition, etc; review whether the $1M stated in the standard documents are adequate and adjust as appropriate
    計算保險的殘礫清理保額時要包括拆樓、圍街板(假設本合同價未包括圍街板)及拆樓用的棚架;檢討標準文件寫的100萬元是否足夠及作適當的修改
  6. State the values of the previous works such as foundations and hoardings for inclusion as part of the sum insured under the material damage section to ensure full cover; alternatively, if the risk of total loss is low, insure as the principal’s properties under the third party liability section, but the limit of indemnity will be lower
    列出之前的工程,例如基礎、圍街板等的價值,加入物質損壞保險的保險額內以取得全額保;或者,如全毀的風險低,可以作為工程委託方的財産形式在第三者保險部份受保,但賠償額較低

Preparing Bills of Quantities or Schedule of Rates
編寫工程量清單或單價表

  1. Read the Standard Method of Measurement, whether you are experienced or not; do not just listen to other people
    任何時間都要睇工程量計算規則,無論生手定熟手,不要光聽人講
  2. Note concrete mix, beam depth stages, height stages, edges, shoulders, straight / sloping / curved, etc.
    計混凝土工程時要注意混凝土的標號、樑深的層級、高度的層級、邊沿、接肩、直斜彎,等等!
  3. Do not blindly follow past Bills of Quantities or Schedule of Rates because they may have simplified the measurement which may not be applicable to every project, and may in fact be wrong
    不能盲目照跟舊有的工程量清單或單價表因為它們可能把計法簡化了,但此不是單單工程都合用,而其實可能根本就錯了,

Preliminaries Bills
開辦營運費清單

  • Draw horizontal lines to separate items in Preliminaries Bills containing clause headings only to enable entry of prices in alignment with the item descriptions
    用橫線把只列條款標題的開辦營運費清單內的項目間開以便填寫價格時對齊項目說明

Documentary exchange with tenderers
與投標者的來往文件

  • Keep the hardcopies and softcopies of documents, correspondence, faxes and emails exchanged during tendering under a separate folder for each tenderer to enable easy tracking and compilation of contract documents
    把招投標標的 所有來往文件、信件、傳真及電郵的打印或電子件按每一投標者分開歸檔,以便追蹤及製作合同文件

Tender clarification queries
詢標問卷

  • Clarify in the tender clarification queries only those incorrectly priced high or low rates, not comparatively high or low rates
    在詢標問卷應只問錯誤地高或低的單價,而不是相對高或低的單價

Financial reports
最終造價估算報告

  1. Estimated Amount = Reasonably estimated maximum amount for budgetary purposes
    估計價 = 合理估計的最大金額,供投資預算用
  2. First Claimed Amount = Amount initially claimed or the biggest amount claimed by the Contractor
    原報價 = 承包商第一次或最大的一次的報價
  3. Latest Claimed Amount = Latest revised amount claimed by the Contractor, or the current amount after negotiated reduction
    最新報價 = 承包商最新的修訂報價,或通過談判應已減低了的金額
  4. Assessed Amount = Amount accurately or roughly assessed to be comfortably payable finally, in other words, the minimum final amount payable
    審核價 = 經準確或大約計算得的可安心作為最終應付的總額,亦即等如最低的最終應付總額
  5. When Assessed Amount = Claimed Amount, Estimated Amount should also be = Assessed Amount
    當審核價 = 報價時,估計價亦應 = 審核價
  6. In the final stage of final account, the Estimated Amount should be smaller than the Claimed Amount
    到結算後期,估計價應低於報價

Approximately
大約

  • Write “approximately X Nos.” instead of  “approximate X Nos.”
    寫成“approximately X Nos.” 而不是  “approximate X Nos.”

Replace by or with
更換

  • “replace by” or ”with” may be distinguished by this example: in “replace A by B with C”, A is the replaced, B is the one who takes action, and C is the substitution
    “replace by”定”with” 可以此例子分辨:”replace A by B with C” 中A是被更換者、B 是行動者、C是代替者

Final account item descriptions
結算項目說明

  1. Note that if the words "revise", "change", "replace" and similar are used in the final account item descriptions, cost omission and addition are both expected
    注意當”修改”、”改變”、”更換”等類似用詞在結算項目說明使用時,意味應同時有減帳及加帳
  2. Make sure that the final account item descriptions are consistent with the cost effects
    確保結算項目說明是與費用影響匹配

End of Page

Personnel Organization 人員編制

Personnel Organization 人員編制 KCTang Sat, 20/12/2014 - 19:01

Go to End

Note

20 Dec 2014: Moved form wiki.

Personnel organization to consider
人員編制要考慮

  1. How many people
    要多少人

  2. Types and number of professional personnel
    專業人員的類別及人數

  3. Types and number of supporting personnel
    輔助人員的類別及人數

  4. Continuing learning
    持續學習

Kind of persons to employ
請什麼類形的人

  1. Enduring
    克苦

  2. Hard working
    實幹

  3. Attentive to details
    細心

  4. Highly analytical
    分析力強

  5. Eager to learn
    肯學習

  6. Able to use computer
    會用電腦

  7. Able to use common office software
    會用常用的辦公室軟件

  8. Literate in Chinese and English
    具中英語文能力

End of Page

Administrative Management 行政管理

Administrative Management 行政管理 KCTang Sun, 07/04/2019 - 13:11

Go to End

Note​​​​​​​

7 April 2019: "Issuing Tender Documents just before holidays" added.

Issuing Tender Documents just before holidays 
臨假期前出標

Added 7 April 2019

  1. If  issuing Tender Documents on Friday, remind the tenderers that our office is closed on Saturday and not available for collection of documents.
    若星期五出標,提醒投標者敝公司星期六不辦公、不要到取文件。
  2. If issuing Tender Documents just before the Chinese New Year Holidays, ensure that the tendering period can accommodate the different lengths of holidays of the tenderers and their suppliers and factories. Factories usually close for longer time than the public holidays.
    若臨農曆年假前出標,確保投標期可以包容投標者及他們的供應商及工廠的不同的假期長度。工廠通常放假較公眾假期長。

Office appliances 
辦公用具

  1. Paper
    紙張
  2. Printer
    打印機
  3. Photocopier
    影印機
  4. Scanner
    掃描器
  5. Binding machine
    釘裝機
  6. Telephone
    電話
  7. Fax machine
    傳真機
  8. Broadband connection
    寬頻接線
  9. Internet service
    互聯網服務
  10. Intranet
    內聯網
  11. Computer
    電腦
  12. Client software
    客戶機軟件

    • office automation
      辦公
    • pdf and compression
      pdf 及壓縮
    • CAD and BIM
      繪圖及立體資訊模擬
    • server software
      伺服器軟件
    • File server
      檔案伺服器
    • Email server
      電郵伺服器
    • Web server
      網頁伺服器

Passwords 
密碼

  1. Unless authorized, do not watch, memorize or use passwords used by the Company to assess internal or external websites
    未獲授權不應觀看、記下及使用公司使用的內外網站的密碼
  2. Do not disclose passwords used by the Company to outside persons
    不得對外人披露公司使用的密碼

Fax machine setting 
傳真機的設定

  1. Set time clock
    設定時鐘
  2. Set sender’s identity
    設定發送者的識別

Printer driver 
影印機的驅動程式

  1. Do not install those provided by Windows
    不要安裝Windows 提供的
  2. Install those provided by the printer companies
    安裝打印機公司提供的
  3. Copy the file saved in the “Installation Sources” folder in the server to the local computer, install, set to use A4, black and white, single sided and recycled paper, and delete the file after successful installation
    把存儲在伺服器”Installation Sources”檔案夾內的安裝檔抄到自己電腦,安裝,設定用A4、黑白、單面、再用紙,裝後刪除安裝檔

Protocol when answering phone calls 
接聽電話的禮儀

  1. Answer first with company name or own name
    先報上公司名稱或自已名稱
  2. Proactively answer calls unattended, write down name of caller, company name, contact number, and relevant project or matter, and pass the note to the relevant person
    主動代接無人接聽的電話,並寫低來電者名稱、公司、聯絡電話、相關的工程或事項,交給有關人員跟進回覆

Use of emails 
電郵的使用

  1. Follow the template for folder structure under the email Data folder to create new folder structure for new jobs
    參照Data電郵夾下的電郵夾結構模板” template for folder structure” 的概念把所有工程的電郵夾分類及統一名稱
  2. Delete spam emails on sight, to reduce everybody’s abortive time to read (permanent clearance from the Deleted Items folder will be done by the Administrator)
    一見垃圾電郵就立刻刪除,以免人人都要花時間看(從刪除郵件夾永久刪除由管理員做)
  3. Ignore all emails received from time to time calling for security verification regarding iTune, Apple ID, Microsoft, PayPal, HSBC, etc. since they are mostly malicious emails
    千祈不要理會不時收到的關於iTune、 Apple ID、Microsoft、PayPal、HSBC 等等要人重新輸入認證的電郵,黑郵居多
  4. Do not open or save attachments received from unknown persons, and do not click open links
    不要打開或儲存來自不認識的人的附件,亦不要打開連結

Use of WhatsApp 
短信的使用

  1. Reply immediately upon receipt of messages in the Company chat group and relating to self or all people
    在公司群組收到關於自已或關於全部人的短訊要即覆
  2. Report after completion of the task
    在事件完成後要報告

Revit

  1. Use the License Transfer Utility provided by Revit to transfer Standalone License from one computer to another computer without infringing the license
    使用Revit提供的許可證轉移工貝(License Transfer Utility)把單機許可證從一部電腦, 轉移到另一部機而不違反許可證
  2. Use Revit 2015 because some outside companies still use Revit 2013 or 2014 and models of new version cannot be converted back to older versions
    使用Revit 2015版,此乃因為外面有些公司仍只用Revit 2013或2014版,但新版本的模型不能改回舊
  3. Use Revit 2015 for trial
    2016版屬試用

Documentary system 
文書機制

  1. Use standard documents and templates
    使用標準檔、範本
  2. Implement file management
    執行檔案管理
  3. State file names, reference numbers, project names, contract names, subjects
    註明檔案名稱、編號、項目名稱、合同名稱、主旨
  4. State date of receipt or dispatch, and affix acknowledgement chop
    註明收發的日期及蓋簽收章
  5. Carry out  internal check
    執行內部審核
  6. Double-check after printing
    列印後要覆核
  7. Double-check after calculating
    計算後要覆核
  8. Double-check after transferring figures
    搬移數字要覆核
  9. Check quantities and rates
    覆核數量、單價

File compression 
檔案壓縮

  • Set Winrar to use zip format to enable users who do not have Winrar to open (Windows file explorer can open zipped files)
    把Winrar 檔的格式設定為zip方便沒有Winrar的人打開(Windows file explorer可打開zipped 檔

Generate pdf file from Word file 
Word 檔轉換成 pdf檔

  • 按以下優先次序以減少檔案大小:
    • Print CutePDF (如有)
    • Print - Save as Adobe PDF (如有)
    • Print - Adobe PDF (如有)
    • Export
    • Save as

Travelling expense 
交通費

  • State the destination on all taxi fare receipts for the record
    在 所有的士單據上列明目的地,以作記錄

Use of toilets 
衛生間的使用

  1. Use the toilet roll plastic wrapper after unwrapping as the base cushion to the toilet roll to avoid wetness and reduce dirt
    把廁紙膠套在剝除後用作廁紙的座墊,以便防濕及減髒
  2. Place a new roll as reserve when the toilet roll is about to be used up
    廁紙接近用完,主動取放一卷作後備

End of Page

Hong Kong Quantity Surveyors and Mainland Cost Engineers 香港工料測量師及內地造價工程師

Hong Kong Quantity Surveyors and Mainland Cost Engineers 香港工料測量師及內地造價工程師 KCTang Wed, 11/03/2020 - 18:02

Go to End

Note

11 Mar 2020: Updated.

20 Dec 2014: Moved from wiki.

Quantity Surveyor

  • Is a construction cost and contract consultant.
  • Originated in Britain as a profession.

Nicknames of Quantity Surveyor

  • “cost engineer” as used in the mainland China and the USA.
  • “construction cost manager” to recognize his expertise in managing construction costs.
  • “construction contract specialist” to recognize his expertise in understanding the law of contracts, the standard forms of construction contracts, and giving advice accordingly to other project team members.
  • “construction economist” to recognize his expertise in understanding construction cost factors, variables, and impacts.
  • “risks manager” to recognize his ability to draft contract and cost clauses to present the risks clearly to help tenderers submit adequate prices, and reduce post contract surprise claims and disputes.
  • “lubricant” (my own invention) to recognize his skill in providing fair and reasonable cost and contractual advice to resolve deadlocks which may exist between other project team members on opposite sides of the table.

Professional Bodies which include Quantity Surveyors and Cost Engineers (or their Professional Bodies) as Professional Members

  1. The Hong Kong Institute of Surveyors (HKIS)
  2. Africa Association of Quantity Surveyors (AAQS)
  3. Association for the Advancement of Cost Engineering International (AACE)
  4. Association of Cost Engineers (ACostE)
  5. Association of South African Quantity Surveyors (ASAQS)
  6. Australian Institute of Quantity Surveyors (AIQS)
  7. Brazilian Institute of Cost Engineers (IBEC)
  8. Building Surveyors Institute of Japan (BSIJ)
  9. Canadian Association of Consulting Quantity Surveyors (CACQS)
  10. Canadian Institute of Quantity Surveyors (CIQS)
  11. Chartered Institute of Building (CIOB)
  12. Chartered Institution of Civil Engineering Surveyors (ICES)
  13. China Cost Engineering Association (CCEA)
  14. Commonwealth Association of Surveying and Land Economy (CASLE)
  15. Conseil Européen des Economistes de la Construction (CEEC)
  16. Consejo General de la Arquitectura Técnica de España (CGATE)
  17. Dutch Association of Quantity Surveyors (NVBK)
  18. European Federation of Engineering Consultancy Associations (EFCA)
  19. Fédération Internationale des Géomètres (FIG)
  20. Fiji Institute of Quantity Surveyors (FIQS)
  21. Ghana Institution of Surveyors (GhIS)
  22. Ikatan Quantity Surveyor Indonesia (IQSI)
  23. Indian Institute of Quantity Surveyors (IIQS)
  24. Institute of Engineering and Technology (IET)
  25. Institute of Quantity Surveyors of Kenya (IQSK)
  26. Institute of Quantity Surveyors Sri Lanka (IQSSL)
  27. Institution of Civil Engineers (ICE)
  28. Institution of Surveyors of Kenya (ISK)
  29. Institution of Surveyors of Uganda (ISU)
  30. International Cost Engineering Council (ICEC)
  31. Italian Association for Total Cost Management (AICE)
  32. Korean Institution of Quantity Surveyors (KIQS)
  33. Fachverein für Management und Ökonomie im Bauwesen (maneco)
  34. New Zealand Institute of Quantity Surveyors (NZIQS)
  35. Nigerian Institute of Quantity Surveyors (NIQS)
  36. Pacific Association of Quantity Surveyors (PAQS)
  37. Philippine Institute of Certified Quantity Surveyors (PICQS)
  38. Property Institute of New Zealand (PINZ)
  39. Real Estate Institute of Botswana (REIB) Royal Institute of British Architects (RIBA)
  40. Royal Institution of Chartered Surveyors (RICS)
  41. Royal Institution of Surveyors Malaysia (RISM)
  42. Singapore Institute of Building Limited (SIBL)
  43. Singapore Institute of Surveyors and Valuers (SISV)
  44. Sociedad Mexicana de Ingeniería Económica, Financiera y de Costos (SMIEFC)
  45. Society of Chartered Surveyors Ireland (SCSI)
  46. Union Nationale des Economistes de la Construction (UNTEC)

Major Types of Employers of Quantity Surveyors in Hong Kong
香港顧問工料測量師的主要僱主類別

  • Consultant quantity surveying practices  工料測量顧問公司 (as directors, partners, or quantity surveyors of different grades)
  • Contractors 承建商 (as directors, commercial managers, contract managers, quantity surveying managers, or quantity surveyors of different grades)
  • Government and quasi-government organizations 政府或半官方機構 (as directors, project managers, or quantity surveyors of different grades)
  • Developers 發展商 (as directors, project managers, and monitoring quantity surveyors of different grades)

Major Scope of Services of Consultant Quantity Surveyors in Hong Kong
香港顧問工料測量師的主要服務範圍

  • Preparation of pre-construction cost estimates
    編訂概算
  • Cost planning during the design stage
    設計階段造價控制
  • Preparation of tender documents
    編訂招標文件
  • Pre-qualification of tenderers
    投標單位預審
  • Tender analysis
    審標
  • Tender negotiation
    議標
  • Contract award
    定標
  • Preparation of contract documents
    編訂合同文件
  • Checking of insurance policies and performance bonds
    審核保險單、履約保證書
  • Valuation of progress payment applications
    審核進度款
  • Cost monitoring during the construction stage
    施工階段造價控制
  • Valuation of amounts of variations and claims
    審核變更費、索賠
  • Negotiation and agreement of final accounts
    商議結算

Specialized Services of Some Consultant Quantity Surveyors in Hong Kong
香港某些顧問工料測量師的特別服務範圍

  • Claims consultancy
    索賠顧問
  • Dispute resolution advisory, mediation and arbitration
    解決爭議、調解、仲裁
  • Insurance loss adjustments
    保險理賠
  • Facilities management
    設施管理
  • Value management
    價值工程
  • Partnering facilitation
    促進夥伴關係

Areas of Specialization as written by HKIS

Characteristics of Consultant Quantity Surveyors in Hong Kong
香港顧問工料測量師的特色

  • Full services from inception of project to completion of construction and defects rectification
    由項目構思到建造完成的全過程造價諮詢服務
  • Now extending to post completion maintenance until redevelopment
    現在申延到建造後的維修直至重建
  • Dynamic management with constant review and updating
    不斷檢討及更新的動態管理
  • Cost and contract management of various kinds
    造價及合同管理多樣化
  • Self-regulated by professional bodies 
    自我約制(通過專業團體)
  • No Government control, though there is a Surveyors Registration Ordinance
    沒有政府監管(雖然有測量師註冊條例)
  • Mainly handling contracts with Bills of Quantities, but also contracts without Bills of Quantities
    主要處理有工程量清單的合同,但亦處理沒有工程量清單的合同

Major Scope of Services of Contractor Quantity Surveyors in Hong Kong
香港承建商的工料測量師的主要服務範圍

  • Similar to that described for Consultant Quantity Surveyors but starting from the tender stage
    與顧問工料測量師的差不多但從投標階段開始
  • Essentially commercial and contract management for the contractors
    主要負責承建商的商務及合同管理
  • Dealing with upstream clients and consultants
    處理上游的委託方及顧問
  • Dealing with downstream sub-contractors, suppliers and workers
    處理下游的分包商、供應商及工人

Surveyors Registration Ordinance

  • There is a Surveyors Registration Ordinance with a Surveyors Registration Board set up to register professional surveyors.
  • Surveyors so registered are entitled to be called “Registered Professional Surveyors” such as “Registered Professional Surveyors (Quantity Surveying)”.
  • Such title is required for undertaking outsourced Government projects but is not mandatory for civil servants or working on private projects.

Getting professionally qualified

Training Path of a Typical Consultant Quantity Surveyor

  • Join a consultant quantity surveying practice
  • Check the arithmetic of calculations done by others
  • Measure quantities for approximate cost estimates, bills of quantities, variations, remeasurement
  • Get to know the Standard Method of Measurement better throughout the process
  • Get to know the geometric forms and names of the components making up the whole construction
  • Draft bills of quantities for editing by the senior
  • Participate in counter-checking the measurement done by team members
  • Assist in monthly valuation of contractors’ payments
  • Visit the site for the purposes of doing the valuation
  • Assist in preparing monthly financial reports
  • Accompany the senior to attend pre-contract design meeting or post contract site meetings
  • Price the variations and remeasurement
  • Price the approximate cost estimates and the bills of quantities
  • Agree final accounts with the contractors
  • Assist to prepare the comparison tables attached to tender reports
  • Assist to checking the typo corrections of tender documents drafted by the senior
  • Assist to draft tender documents
  • Assist to comment on insurance policies and bonds
  • Attend meetings independently
  • Give advice on tendering procedure, contractual arrangement and choices of contract clauses
  • Draft tender documents independently
  • Interview tenderers
  • Prepare tender reports independently
  • Supervise assistants
  • Perform independently
  • Continue to give advice on post contract contractual issues
  • Help avoid and resolve disputes

Personal Attributes

  • Fair and reasonable – While Consultant Quantity Surveyors are engaged by their clients to protect the clients’ interest under the construction contract, they also have a duty under the construction contracts to act fairly and reasonably. Being fair and reasonable can in fact avoid unnecessary disputes under the construction contracts.
  • Integrity – Quantity Surveyors are dealing with money though no money is actually passing through him. However, any corruptive act would mean a huge sum of money lost by the clients or contractor employers. Quantity Surveyors must serve with the highest degree of integrity.
  • Patience and persistence – Quantity Surveyors need to spend a long period of time to measure the quantities required for bills of quantities time and again. This would need patience and persistence to the task. Quantity Surveyors have to negotiate with contractors over contractual and monetary claims. Differences in opinions can lead to heated arguments. Patience is again very important.
  • Attention to details – Quantity Surveyors must be accurate in his words and cost figures. Great attention to details to ensure error free is a must.

Core Skill-sets Required

  • Construction technology - Good knowledge of construction technology is the foundation stone of any surveyors.
  • Building services – While traditionally cost management of building services is handled by the building services engineers, for over 3 decades in Hong Kong quantity surveyors have already been providing measurement and cost management services for building services. Therefore a good knowledge of building services is also required.
  • Mathematics – Daily life mathematics is enough. Use of calculus is rare.
  • 3-D visualization – Quantity Surveyors should be able to visualize the 3-dimensional geometry based on 2-dimensional drawings.
  • Measurement – Good measurement knowledge and skill are the higher level of foundation stone of Quantity Surveyors.
  • Language – Quantity Surveyors have to read many documents ranging from Standard Method of Measurement, Specification, Forms of Contract, legal textbooks, occasionally case laws, insurance policies and bonds. Quantity Surveyors have to draft terms and conditions into the tender documents for construction contracts and loopholes must be avoided. Consultant Quantity Surveyors have to write to advise their clients and other members of the consultant teams. Contractors’ Quantity Surveyors must also be able to write properly to put forward the Contractors’ case. The language skills of Quantity Surveyors must be high in order to rise up the career ladder.
  • Use of computers and software – Quantity Surveyors have to know how to use the usual office automation software with proficiency.
  • Site visit – Quantity Surveyors should like to go to site periodically.

Valued Added Skill-sets

  • Building Information Modelling – This is an important technology which must be learned and used by the present-day construction related professionals. Some Quantity Surveyors have developed special interest to realise the potential of BIM for Quantity Surveyors.
  • Software programming skills – While the majority of Quantity Surveyors does not have the need and therefore the aptitude to possess software programming skills, better use of BIM requires the knowledge to write scripts or programmes.

Types of Projects Involved

  • Public sector works and private sector works
  • Building and civil engineering works
  • New build, maintenance, alterations and additions, renovation

Employment

  • Good Quantity Surveyors are always in good demand both by consultant quantity surveying practices and contractors and even big sub-contractors.
  • When the economy is booming with many new build projects, Quantity Surveyors have to work a lot of overtime throughout the year. However, working overtime is common amongst the construction related professionals. The extent of overtime worked by Quantity Surveyors is not the worst as compared to other professions.
  • When the economy is bad, new build projects will be less but people would spend money in maintenance, alterations and additions, and renovation. Final accounts for completed new build projects are still to be settled. These offer a cushioning effect over the possible redundancy of Quantity Surveyors. Over the years with many recessions, Quantity Surveyors are less hard hit as compared with other construction related professionals.
  • Quantity Surveyors working for contractors will have higher pay.
  • Quantity Surveying graduates tend to choose to work for consultant quantity surveying practices first at a lower pay in order to gain training experience for the Assessment of Professional Competence. After getting qualified, they would have more choices.
  • In good times, consultant quantity surveying practices offer overtime pay. In the best time (not in recent years), the basic salary can become doubled.
  • Qualified Quantity Surveyors working for Government are on the same pay scale as other construction related professionals.

Where is the satisfaction?

  • Winning the trust of clients, being consulted frequently
  • Problems solved
  • Proper monitoring of prices, without unpleasant surprises to the clients
  • Moving projects ahead to get through tendering
  • Considered fair and reasonable by both the clients and the contractors
  • Seeing projects constructed successfully
  • Closing final accounts to all parties’ satisfaction

Traditional Scope of Services of Cost Engineering Consultants in Mainland China (before 1990)
內地造價工程咨詢單位的傳統工作範圍(1990年前)

  • Preparation of pre-construction cost estimates, tender drawing cost estimates and final accounts, and usually as separate services
    只做概算、預算及結算,而通常是分開的服務
  • Pre-construction cost estimates are done one or twice only, not following through the whole design stage
    概算只做一、二次,不跟蹤整個設計階段
  • Not providing contract advisory services
    不提供合同咨詢服務
  • Tender drawing cost estimates are usually for the client's reference for tender negotiation, not for tendering purposes and usually are subject to remeasurement when settling the final accounts
    預算通常只是給委託方參考作為議標用,不作為招標用,而通常在結算時重算
  • Not providing contract advisory services
    不提供合同咨詢服務
  • Not significantly involved in the tendering stage
    招標階段不顯著參與
  • Not significantly involved in the construction stage
    施工階段不顯著參與

Recent Scope of Services of Cost Engineering Consultants in Mainland China
內地造價工程咨詢單位的近年的工作範圍

  • Evolving progressively to provide full scope of services like Quantity Surveyors
    陸續演變到好像工料測量師般提供全過程服務

Competitors
競爭對手

  • Same profession
    同專業

    • Local
      本地
    • Other provinces
      外省市
    • Foreign countries
      國外
  • Other professions
    不同專業

    • In-house employers of developers
      建設單位自有人員
    • Other professions within the same industry or outside
      行裡行外的其他專業

Measures to Compete with Others
克服競爭對手的手法

  • Government policies, qualification requirements, tax - only applicable to Mainland China
    政策、資質、稅收 - 只適用於內地

    • against: other provinces, foreign countries
      對:外省市、國外
  • Customary practice, alliance, attachment - applicable to Mainland China
    慣例、掛鈎、掛靠 - 適用於內地

    • against: local
      對:本地
  • Capability, service contents, lower prices, integrity
    實力、服務內容、平價、誠信

End of Page

Factors affecting Business Survival 影響企業生存的因素

Factors affecting Business Survival 影響企業生存的因素 KCTang Sat, 20/12/2014 - 18:33

Go to End

Note

20 Dec 2014: Moved form wiki.

Favourable

  1. Professional competence
  2. Quality management
  3. Complaint avoidance
  4. Timely response
  5. High efficiency
  6. Innovation
  7. Integrity (this being listed last not because it is of the least importance but because it is a matter of course without saying)

Adverse

  • Professional negligence

End of Page

QS's Measures to Enhance Cost Effectiveness of Projects and Processes

QS's Measures to Enhance Cost Effectiveness of Projects and Processes KCTang Sat, 20/12/2014 - 18:41

Go to End

Note

20 Dec 2014: Moved form wiki.

Estimating

  1. Provide early and quick advice on costs of preliminary design to avoid abortive design effort
  2. Provide early and quick advice on costs of alternative designs to select the better alternatives
  3. Participate actively in project meetings to voice out areas of design with possible imbalanced cost allocations
  4. Participate in value management workshops to evaluate different design options to enhance values of proposed designs
  5. Update the pre-construction cost estimates regularly in line with design development to ensure no uncontrolled budget overrun
  6. Advise on the cost implications of major changes likely to cause budget overrun to see whether the changes are justified and value for money
  7. Suggest savings to off-set unexpected changes contributing to budget overrun

Tender Documentation

  1. Suggest how the contracts should be packaged to give a proper balance between long lead time to complete design for the whole project, risks and hence higher tender prices to allow for long lag time to actually carry out some work sections, single line of responsibility, etc.
  2. Suggest how the design responsibilities should be shared between the Architect & Engineer and the Contractor to ensure proper share without undue high costs and unbearable risks while benefiting from the Contractor's design-and-build expertise
  3. Observe and follow the standard practice and procedures and use standard templates to reduce abortive work to team members in scrutinising the deliverables
  4. Request for the most up-to-date client's practice manuals, standard templates and house rules which may not yet be available on the web site yet to avoid abortive work
  5. Scrutinise the standard templates for preparing tender documents and make suitable amendments to reflect the project specifics to ensure that the tenderers are sufficiently alerted to when pricing the tenders
  6. Seek early approval on authority to use alternative standard provisions and on deviations from the mandatory standard provisions
  7. Check actively the tender drawings and tender specification to ensure sufficient details and no discrepancies, and request the Architect and Engineer to supplement and clarify accordingly
  8. Prepare the cost estimates and bills of quantities in good quality following a due process of quality control to eliminate chances of errors or omissions.
  9. Use provisional quantities or schedule of rates as a supplement to the bills of quantities in case the relevant design is not fixed and firm yet for tendering so to obtain rates for post contract pricing

Tender Analysis

  • Scrutinise the tenders received to ensure no irregularities in pricing

Post Contract Cost Contract

  1. Advise on the cost implications of every proposed variation as well as instruction involving expenditure of provisional items during construction
  2. Update the post contract cost reports regularly considering all variation instructions, expenditure of provisional items, claims, etc. to ensure no uncontrolled budget overrun
  3. Suggest savings to off-set unexpected changes contributing to budget overrun
  4. Value payments fairly and reasonably so as not to cause unfair and unnecessary cash flow burden on the Contractor, which will eventually result in higher final account claim
  5. Advise on proper contractual interpretation to fairly treat reasonable claims and resist unreasonable claims
  6. Suggest alternative solutions to help resolve problems encountered by the Contractor to avoid the problem to escalate into a cost claim without chance of mitigation
  7. Adopt the principle of mediation where parties should seek to achieve win-win situation in stead of arguing over the rights and wrongs

End of Page

Development Cycle 建設流程

Development Cycle 建設流程 KCTang Tue, 17/03/2020 - 05:48

Go to End

Note

17 Mar 2020: Revised.

20 Dec 2014: Moved from wiki.

Varieties of construction project developments

  • Sector
    • private sector
    • public sector
  • Type
    • building works
    • civil engineering works
  • Site acquisition
    • Leasing land
      租地
    • Purchasing buildings
      買樓
    • Renting buildings
      租樓 
  • New or existing
    • New development 
      新建
    • Redevelopment 
      重建
    • Conversion 
      改造
    • Renovation 
      翻新
  • Purpose
    • for self-use
    • for sales
    • for rental.

Stages of design and construction

  • The names may vary between different countries or even within Hong Kong between different stakeholders.
  • Simplest classification: 
    • Feasibility study
      可行性研究
    • Planning approval 
      規劃許可
    • Design
      設計
    • Tender documentation
    • Tendering
      招投標
    • Construction
      施工
    • Defects rectification.
  • Sales and rental marketing run concurrently.
  • Occupancy / use / repair and maintenance after construction. 
    使用/維修保養

Pre-contract stage

  • The period before awarding a contract for construction, generally referring to the main contract but actually can refer to any separate contract.

Post contract stage

  • The period after awarding a contract for construction.

Post-completion or occupancy stage

  • The period after completion of construction.

Estate management / property management / facility management

  • "estate management" is an old UK term.
  • "property management" is a new term.
  • "facility management" appears to originate from the US, but is now more commonly used every where.
  • Such management starts to take over after completion of construction.

End of Page

Organisation of Parties to Construction 建設組織架構

Organisation of Parties to Construction 建設組織架構 KCTang Sat, 20/12/2014 - 18:50

Go to End

Note

20 Dec 2014: Moved form wiki.

Developer / Owner / Employer
建設單位 / 業主 / 發包方

  1. Project Manager
    項目經理
  2. Consultants
    顧問團

    • Architect
      建築師
    • Structural Engineer
      結構工程師
    • Building Services Engineer / M&E Engineer
      屋宇設備工程師 / 機電工程師
    • Interior Designer
      室內設計師
    • Geotechnical Engineer
      地質工程師
    • Landscaping Architect
      園境師
    • Quantity Surveyor
      工料測量師
  3. Clerk of Works / Building Services Inspector
    現場監工 / 機電監工

Main Contractor
總承包方

  1. Sub-Contractors
    分包方

    • Nominated
      指定
    • Domestic
      自選
  2. Suppliers
    供應商 / 供貨方

    • Nominated
      指定
    • Domestic
      自選

Other Separate Contractors and Suppliers
其他獨立承包方及供應商

Statutory Undertakings and Utility Companies
法定承辦商及市政配套單位

Purchasers and Users
買家 / 用家

End of Page

Estimating and Pricing

Estimating and Pricing KCTang Mon, 16/03/2020 - 19:10

Go to End

Note

17 Mar 2020: Revised.

26 Feb 2020: Minor adjustments made.

17 Feb 2020: Tender price indices links updated.

20 Dec 2014: Moved from wiki.

Cost and price

  1. “Cost” and “Price” are often used interchangeably.

  2. Between the two parties to a transaction, the price quoted by the Seller / Contractor is the cost to the Buyer / Employer.

  3. For the same party, Cost + Profit = Price.

Not a straight line relationship between costs and quantities

  1. ​​​​​​​Total cost vs quantity:
    • The total cost of factory production (and therefore sales of materials and goods) does not increase in proportion to the increase in the quantity produced, since there are some initial fixed costs (e.g. factory, equipment, rental deposits) and recurring fixed costs (e.g. monthly rents, additional equipment when the existing capacity is exceeded) not in proportion to the quantity to be included.
    • The total sales value may also not increase in proportion to the increase in the quantity sold (e.g. bulk discount, delivery vehicle not used to full capacity).
    • The total cost is usually higher than the total sales value initially, but the total sales value must rise up to exceed the total cost eventually for the business to be viable.
  2. Linear items:
    • For linear items, there can be fixed costs which do not change when the length changes.
    • The unit rate per length can decrease if the length is increased without any change to the fixed components.
      • e.g.  length 10 @ rate 4 + number 2 @ rate 5 = 40 + 10 = 50; 50 / 10 = 5.00;
      • while  length 15 @ rate 4 + number 2 @ rate 5 = 60 + 10 = 70; 70 / 15 = 4.67.
  3. Superficial items:
    • For superficial items, the perimeter length increases less rapidly than the increase in the superficial area (300% vs 800% in the table below).
    • The ratio of perimeter length / area decreases if the area is increased.
    • This means the unit rate per superficial area would have the same effect.
    • However, for the same area, the perimeter length can increase considerably if the shape is elongated.
    • The shape is important.
  4. Cubic items:
    • For cubic items, the rates of change of the side area and volume relative to the base area would depend on which dimension is changed.
    • For the same height, the volume increases in proportion to the increase in the base area (i.e. fixed volume/base area), while the side area increases less rapidly resulting in a decrease in the side area/base area ratio.
    • For the same base area, the side area and volume increase in proportion to the increase in the height (as shown in the graph below). Their rates of change are the same (as shown in the table above).
    • If both the height and the base area are increased, the volume/base area will increase, but whether the side area/base area will increase or decrease will depend on the relative rates of changes of the height and the base area.
    • In all cases, the unit cost and unit sales value should therefore not remain constant.
    • The appropriate unit cost and unit sales value should be determined based on the quantity required, and suitably adjusted in case of changes in the quantity.
  5. Impact on unit cost and unit rate
    • Making a unit rate competitive enough to secure sales volume and produce profit is important.
    • Works or sales contracts usually require the unit rates to be fixed even though the quantities may be varied. If the variation is significant, there can be a huge loss or profit. Some contracts permit the adjustment of the unit rates in case of unexpected big changes.
    • The quantity of any item of work can vary between different construction projects and how to estimate an appropriate unit rate is crucial.
  6. Impact on design
    • The relationship of number, length, area and volume is more important for the design of the building form and shape.
    • Whether a building is more economical or expensive than the other for the same floor area and type would primarily depend on the ratios of the numbers, lengths, areas and volumes of the building components to the floor areas, and then on the materials and standards.
  7. Breakdown into more or less items
    • It would be more expedient if less items need to be measured to arrive at the total cost or price.
    • This means that the unit rate has to allow for the costs of other related items not measured separately.
    • However, when the costs of other related items do not vary in proportion to the quantity of the item measured, the unit cost of the item measured would change significant to become unrealistic, then such other related items should be measured separately for costing.
    • Therefore, the unit rates should only be required to include for related items which change in proportion to the quantity measured or for non cost significant ancillary items. Yet, significant changes to the quantity may still make the non cost significant ancillary items to become significant. This is an area for contractual claims.

​​​​​​​Price build-up

  1. The total price is built-up from:

          Labour costs (​人工費) 

+       Material costs (材料費)

+       Plant costs (機械費)                                                  

          Direct costs (直接費)

+       Site and project overheads (現場及項目管理費)

+       Head office overheads (公司管理費)                       

          Costs (成本)

+       Profit and risks allowance (利潤及風險費)           

          All-in price before value added tax (稅前綜合價)

+       Value added tax (從價稅)                                       

          All-in price (稅後綜合價)                                          

  1. The value added tax here means a tax chargeable upon the net total price before this tax or the gross total price after this tax. Hong Kong does not implement valued added tax. Hong Kong only charges profit tax on the realisable profit annually.
  2. Some of the site and project overheads are not directly related to a particular work item but are commonly shared by more than one item. It is normal to price for these site and project overheads as the Preliminaries. The all-in rate for the work item will then only include the balance of the site and project overheads not included in the Preliminaries.
  3. Profit and overheads are usually allowed for as a percentage of the direct costs. The usual norm for variation is 15%, but it will be very different in competitive tenders. The profit and overheads allowed in the prices for different items can be different.
  4. Some part of the Works may be sublet to sub-contractors. They will include their own overheads in their prices to the Contractor. They may also share to provide some of the site overheads otherwise provided by the Contractor. Therefore, the mark-up on sub-contractors prices for profit and overheads should be less than that on direct labour and materials.

Mark-up and margin

  1. 100 x (1 + 15%) = 100 + 15 = 115:
    • 115 has a mark-up of 15%.
  2.  85 + 15 = 100:
    • 100 has a margin of 15%.
  3. 15/115 = 13.04%:
    • A mark-up of 15% is equal to a margin of 13.04%.
  4. 15/85 = 17.64%:
    • A margin of 15% is equal to a mark-up of 17.64%.

All-in rates and unit of quantity

  1. All-in rate = all-in price / quantity.
  2. Not all the costs are directly proportional to the quantity of the work, it can be a combination of:
    1. Costs proportional to volume
    2. Costs proportional to area
    3. Costs proportional to number
    4. Fixed costs.
  3. When the total price for a work item is required to be broken down into quantity and rate, the unit of the quantity to be used should be one which represents the most cost significant variable.
  4. If there are more than one cost significant variable, then the work item should be broken down into more than one sub-item.
  5. It is usual and easier to estimate the cost of a bigger sample quantity of a work item first and divide the cost by the quantity to obtain the unit rate so that:
    • Those costs not directly related to the quantity of the work item can be shared
    • Wastage, laps, etc. which are not measured in the quantity can be allowed for.

Rate build-up

  1. Labour costs:
    • Daily rates to include for:
      • daily basic wage,
      • travelling and meal allowances,
      • allowances for hand tools and personal accessories,
      • allowances for holidays with pay,
      • mandatory provident fund (MPF) contribution,
      • year end bonus,
      • incentive payments, 
      • levies and insurances if not priced separately,
      • etc.
    • ​Time to consider:
      • taking from stores, hoisting, lowering,
      • placing, fixing,
      • non-productive travelling and recess time, 
      • etc.
  2. Material costs:
    • Rates to include for:
      • ex-factory costs, package,
      • export transportation, transit insurance,
      • customs clearance and duties,
      • demurrage, off-site storage,
      • local delivery,
      • off-loading, returning package,
      • etc.
    • Quantities to consider:
      • basic quantities,
      • breakage, damage, theft,
      • wastage (cutting, conversion),
      • unmeasured laps,
      • bulkage, consolidation, shrinkage,
      • etc. 
  3. Plant costs (called "Equipment costs" in civil engineering contracts): 
    • Rates to include:
      • Use of plant (not purchasing of plant),
      • Mobilization, relocation and demobilization costs, if not measured separately,
      • Fuels and consumables,
      • Maintenance and repair.
    • Time to consider:
      • Time used,
      • Unavoidable idling time,
      • Mobilization, relocation and demobilization time, if not measured separately.
  4. Site and project overheads
    • Expenses on site or off-site specifically due to the project, not specifically related to any particular group of work but are commonly shared.
  5. Head Office Overheads
    • Expenses in running the head office, shared between different concurrent projects.
  6. Profit
    • The expected profit with allowance for risks.
  7. Tax if charged based on total price (not in Hong Kong which implements profits tax on the realisable profit annually, not value added tax on turnover).
  8. Rates build-up applicable to measured work as well as preliminaries

Source of data

  1. Tenderers when tendering will get their cost data by making enquiries with their prospective sub-contractors and suppliers.
  2. Consultants may make enquiries with prospective contractors, sub-contractors and suppliers for cost data but may only be able to obtain some indicative budgetary prices which may differ from that obtained under circumstances of real business opportunity and competitive tendering.
  3. To evaluate whether tender prices received are reasonable market rates, other cost data not received for the same tender would need to be used to compare.
  4. Consultants would therefore rely more on past cost data for cost estimating and for evaluation of tenders.
  5. Consultants would know the rates and prices in tenders received but would not normally know the costs, profit and overheads in the tenders. It does not really matter when the Consultants are interested more on the all-in rates. The details of costs, profit and overheads are only essential when handling claims.
  6. When estimating composite rates covering more than one work item, the quantity ratios of the constituent work items would be important.
  7. Consultants' source of data:

Adjust for time differences

  1. There can be up or down fluctuations of costs and prices over time. When using past cost data for the present or future work, adjustments should be made for the time differences.
  2. Indices for adjusting for time differences:
    • Cost indices – reflecting labour and material costs
    • Tender price indices – reflecting prices of work
    • Consumer price indices – reflecting general consumer prices not just for the construction industry.
  3. Cost indices and tender price indices can change at different rates. Cost indices can rise but tender price indices may fall in case of severe competitive market lacking work.

Index references

  1. Census and Statistics Department - Index Numbers of the Costs of Labour and Materials used in Public Sector Construction Projects
  2. Census and Statistic Department - Average Wholesale Prices of Selected Building Materials
  3. Architectural Services Department - Building Works Tender Price Index
  4. Architectural Services Department - Building Services Tender Price Index
  5. Rider Levett Bucknall Construction Cost Update Hong Kong
  6. Arcadis Quarterly Construction Cost Review Hong Kong and China​​​​​​​

End of Page

Factors affecting construction costs

Factors affecting construction costs KCTang Tue, 17/03/2020 - 15:28

Go to End

Note

17 Mar 2020: Created.​​​​​​​

Generally

  1. Cost factors may be asked from different perspectives at different stages
    • Feasibility study before choosing site
      • What type of development?
      • Which country and place to invest and develop? 
      • Why cost differently between countries, places and sites?
    • Planning and design after fixing site
      • What design, provisions, types, standards of the whole and its components?
      • Why cost differently?
    • Tendering
      • Why tender prices so different?
    • Construction
      • Why original contract sum changes?
  2. Some factors affect the quantities, and therefore the total cost
  3. Some factors affect the unit cost per area or unit cost per length (e.g. roads, rails, tunnels, bridges, etc.) 
  4. Some factors affect the unit rate per quantity of work
  5. Price changes during the post contract stage are excluded here

​​​​​​​Country (assuming putting a done design to a different country)

  1. Different planning and design regulations
  2. Different environmental requirements
  3. Different tax requirements
  4. Planned economy or free market economy
  5. Significance of government intervention
  6. Different purchasing power of local currencies
  7. Availability of foreign currencies
  8. Availability of local supply of labour, materials, plant and management
  9. Degree of reliance on foreign supply of labour, materials, plant and management
  10. Different requirements on holidays and restriction on working hours
  11. Different productivity of local labour
  12. Different extent of availability of public roads and utilities
  13. Different degree of ease of evacuation of existing occupiers
  14. Significance of corruption

Site location and conditions

  1. Extreme climatic conditions: hot, cold, frozen work period, typhoon
  2. Seismic zones
  3. Existing status of use: greenfield or brownfield
  4. Existing type of use: urban, rural or agricultural
  5. Existing site topography: flat, hilly, mountainous, offshore, etc.
  6. Ground conditions: soft, rocky, reclaimed, submerged, swampy
  7. Obstructions underground and above-ground
  8. Availability of public roads and utilities
  9. Ease of evacuation of existing occupiers
  10. Congested site or sufficient space for storage and maneuvering

Planning and design

  1. Functional type of the building or civil engineering construction
  2. Class and standard of the construction
  3. Planning and design regulations for different sites and constructions
  4. Environmental requirements
  5. Structural form of the construction (brick, reinforced concrete, steel, timber, composite)
  6. Plan shape of the construction (Different elevation area to floor area ratios. Square building costs less than rectangular building on external elevations)
  7. Storey height (Storey height will affect the vertical elements of the building both internally and externally. Higher storey height will increase the volume of the building to be heated or cooled, and therefore HVAC services.)
  8. Number of storeys (Different shares of the roof and ground slab and beam costs. Need to have staircases for non-single storey buildings. Need to have lifts and refuge floors for tall buildings.)
  9. Height of the construction (Heavier loading on taller buildings.) 
  10. Orientation of the construction (Thermal transmission on external surfaces. Use of sunlight.)
  11. Impact on neighbouring properties
  12. Extent of provision of construction components
  13. Functions, materials and quality of components
  14. Extent of site works and external works shared by the main construction (affecting unit cost per area or length)

Economic environment

  1. Stability of economy
  2. Forecast of cost fluctuations
  3. Level of market competition
  4. Exchange rates and their changes
  5. Time differences (if compared between projects at different times)

Construction 

  1. Project size
  2. Period of construction and its reasonableness
  3. Ease of transportation
  4. Access restrictions
  5. Changing labour, material and plant costs over time
  6. Extent of plant required and availability of plant
  7. Availability of supervisory staff
  8. Extent of hoardings, covered walkways, scaffolding required
  9. Extent of temporary works required
  10. Extent of safety measures required during construction
  11. Extent of environmental protection measures required during construction
  12. Extent of mechanization
  13. Extent of standardization
  14. Extent of repetition
  15. Extent of pre-fabrication
  16. Volume of bulk purchasing
  17. Workmanship expected
  18. Weather which may be encountered
  19. Availability of temporary water and electricity

Contractual

  1. Procurement method
  2. Degree of contractual risks
  3. Harshness of contract terms
  4. Payment terms
  5. Degree of design liability and statutory submission obligations
  6. Extent of insurances, bonds and warranties

Tenderers' ability and perception (causing differences in tender rates)

  1. Labour, material and sub-contract costs which can be sourced at the time of tendering
  2. Availability of plant
  3. Availability of supervisory staff
  4. Availability of expertise
  5. Availability of sufficient cash flow or reliance on loans
  6. Reasonableness of the period of construction
  7. Consultants’ attitude
  8. Owners and occupiers’ attitude and co-operation
  9. Tenderers' profit expectations
  10. Tenderers’ pricing strategy in distributing the costs, profit and overheads differently across different work sections

End of Page

Profit, margin, markup, wastage, bulkage and shrinkage

Profit, margin, markup, wastage, bulkage and shrinkage KCTang Sat, 21/03/2020 - 01:25

Go to End

Note

21 Mar 2020: Created.

Simple approach

  1. When we face with the above terms, what should be the mathematical formulae to handle them and how can we remember the formulae?
  2. Instead of using x, y and z to represent the formulae, it would be easier to derive the formulae based on some simple numerical values using 100 as the base.

Cost, price, profit, margin, markup

  1. cost + profit = price.
  2. profit markup % = profit / cost x 100%.
  3. profit margin % = profit / price x 100%.
  4. Given profit markup and price, how to get the cost?
  5. A long way:
    • Cost + cost * profit markup % = price
    • Cost * (1 + profit markup %) = price
    • Cost = price / (1 + profit markup %) = price x 100 / (100 + profit based on 100)
  6. A quicker way:
    • If cost = 100 and profit markup = 15%, then profit = 15 and price = 115.
    • This means, cost = price x 100 / 115.
    • If cost = 100 and profit markup = 10%, then profit = 10 and price = 110.
    • This means, cost = price x 100 / 110.
    • To conclude, if profit markup = P%, then cost = price x 100 / (100 + P).

% wastage

  1. If a finished qty of work of 100 requires a material qty of 120. The qty wasted is 20.
  2. Should the wastage be 20/100 = 20% or 20/120 = 16.67%?
  3. Both can be correct depending on which is used as the base.
  4. However, in pricing, when the payment is based on the finished qty, the qty wasted should be borne by the finished qty. 
  5. In the above example, the addition to cover the qty wasted is 20/100 = 20%, so the wastage should be 20%.
  6. If a 3 x 6 finished board requires a 4 x 8 uncut board, the wastage to be allowed is (4 x 8) / (3 x 6) - 1 = 32/18 - 1 = 77.78%.
  7. To conclude, the wastage to be allowed
    = qty wasted / finished qty 
    = (qty used - finished qty) / finished qty
    = (qty used / finished qty) - 1.
  8. The denominator is the payable qty (finished qty).

% bulkage (excavation)

  1. How to allow for the extra volume to work on if payment is based on the volume before bulking?
  2. Bulkage or bulking factor = volume after bulking / volume before bulking.
  3. Volume after bulking = volume before bulking x bulkage.
  4. The addition to cover the extra volume is volume before bulking x bulkage. This should be simple.

% shrinkage (concrete, mortar, plaster, screed) or % compaction (soil backfilling)

  1. How to allow for shrinkage if payment is based on the quantity after shrinkage?
  2. If shrinkage = 20%, for each 100 qty, qty shrunk = 20, qty left = 80.
  3. The addition to cover the qty shrunk = 20/80 = 25%.
  4. If shrinkage = 30%, for each 100 qty, qty shrunk = 30, qty left = 70.
  5. The addition to cover the qty shrunk = 30/70 = 42.86%.
  6. If shrinkage = S%, then the addition factor = S/(100-S).
  7. The denominator is the payable qty (qty left).

End of Page

Pre-Contract Cost Planning and Control 施工合約前的成本計畫及控制

Pre-Contract Cost Planning and Control 施工合約前的成本計畫及控制 KCTang Fri, 13/03/2020 - 13:19

Go to End

Note

13 Mar 2020: Usual payment terms added.

26 Feb 2020: Minor adjustments made.

20 Dec 2014: Moved from wiki.

Cost geometry
造價幾何

  1. Note the effect of different site areas for the same building
    • ​​​​​​​​​​​​​​​​​​​​​
  2. Note the effect of doubling the number of storeys
  3. Note the effect of elongating the building without increasing the floor area
  4. Unit cost per floor area
    • Construction costs are usually compared based on unit cost per floor area.
    • The above suggests that the unit cost per floor area cannot be a constant for the same type of buildings of different forms and shapes.
  5. Impact on design
    • Whether a building is more economical or expensive than the other for the same floor area and type would primarily depend on the ratios of the numbers, lengths, areas and volumes of the building components to the floor areas, and then on the materials and standards.

Most significant cost parameters
最主要造價參數

  1. Appreciate which cost portions should bear more direct proportions to each parameter
    瞭解那部份的成本內容與那個造價參數有較直接的比例關係

    • ​​​​​​​​​​​​​
  2. Floor area (above ground + below ground)

    樓面面積

  3. Ground area (= roof area) 

    地面面積 (=屋面面積)

  4. Transfer structure area

    轉換結構面積

  5. External elevation area 

    外立面面積

  6. Basement screen wall area or more effectively basement volume of excavation

    地下室外牆面積或較有效的地下室土方體積

  7. Site area

    工地面積

  8. External area (site area - ground area) 

    室外面積

  9. Number of equipment 

    台數

  10. Refrigeration Tonnage 

    冷噸

  11. Other elemental quantities 

    其他功能分部工程量

  12. (To enable quick estimating and to benchmark project costs)​​​​​​​

Principal cost management tasks during the Pre-Contract Stage
施工合約前的主要工作

  1. Prepare cost estimates
    編製估算概算
  2. Prepare cash flow tables
    編製資金流量表
  3. Attend design meetings
    參與設計會議
  4. Monitor the design
    設計監控
  5. Adjust the cost estimates and reconciling
    估算概算調整及檢討
  6. Compare alternatives
    替代方案的比較

Need for pre-construction cost estimates
為何需要概算

  1. Know the costs for investment decisions: 
    知道成本造價以作投資決定

    • Calculate land bid price 
      計算買地投標價
    • Calculate acceptable rental 
      計算可接受的租金
    • Evaluate the feasibility of the investment 
      評估投資的可行性
  2. Establish a project (development) budget 
    確定發展項目的投資預算
  3. Obtain funding
    獲取撥款
  4. Borrow money from the bank
    向銀行貸款
  5. Formulate a design brief which defines the scope and standard of the project 
    制定設計任務書,說明發展項目的範圍及標準
  6. Monitor the design development to control the costs within budget
    ​​​​​​​監控設計的深化以控制不超出投資預算
  7. Estimate fees 
    估算顧問費

Best time to plan and control the costs
造價控制的最佳時機

  1. As early as possible during the development process 
    在項目發展階段中越早越好
  2. Better chances to make design changes to find a better solution 
    較有機會修改設計取得更好的方案
  3. To reduce abortive design costs 
    減少設計返工

Estimating motto
四字真言

  1. From big to small 

    由大到小

  2. From rough to fine 

    從粗到細

  3. Focusing on the important 

    重點出擊

  4. Making bold assumptions 

    大膽假設

  5. Verifying carefully 

    小心求証

  6. Comparing with the unlike 

    觸類旁通

  7. Conducting self checking 

    自我覆核

  8. Reconciling with the previous 

    瞻前顧後

  9. Empathizing with the Client

    ​​​​​​​設身處地​​​​​​

Different names of pre-construction cost estimates
概算的不同名稱

  1. Rough Indication of Costs ("RIC")
    大約估算
  2. Preliminary Indication of Costs 
    初步估算指標
  3. Preliminary Cost Estimates 
    概算
  4. Elemental Cost Estimates 
    功能分部概算
  5. Cost Plans
    成本計畫
  6. Cost Models (An American term) 
    成本模型 (美式用詞)
  7. Pre-tender Estimates 
    標底

Cost estimates, cost plans and budgets

  1. A cost estimate is a forecast of the probable ultimate cost based on the current design.
  2. It is required to be done throughout the pre-construction stages as well as the construction stage until the estimated costs become fixed prices.
  3. A cost plan is a detailed cost framework for controlling future design.
  4. A budget is the maximum sum a Developer is willing and able to spend on a project.
  5. A cost estimate for now, if satisfactory and approved, will become the cost plan for the future design.
  6. Approximate estimates should be done using expedient methods, approximations and shortcuts to reduce estimating time and costs in order to afford more estimates.
  7. A pre-tender estimate is no longer an approximate estimate and is prepared by pricing the bills of quantities ready for issuance or already issued for tendering.
  8. A logical sequence is like this:
    • Rough Indication of Costs => Detailed Cost Estimate => Cost Plan / Budgetary Estimate
  9. Rough indication of costs ("RIC")
    • It may be just based on unit cost / number or unit cost / floor area or unit cost / other functional unit to be used in the feasibility study or early design stage based on some ideas or sketch designs.
  10. Detailed cost estimate
    • It is a more detailed cost estimate prepared when the design is more developed.
    • Some consultants call it "Preliminary Cost Estimate", and some call it "Cost Plan".
    • HK ArchSD still calls it "Rough Indication of Costs" in spite of the level of details.
    • It may become the Budgetary Estimate if approved.
  11. Cost plan
    • It sets out the portions of the total budget allocated to different parts of the construction so as to serve as the cost limits to the relevant parts of the construction.
    • It may just be based on some interpolation from the cost data of other projects or may be based on some detailed cost estimate specifically prepared for the relevant design.

Construction floor area and gross floor area in Hong Kong

  1. For costing, leasing and sales of buildings and related land, people usually have to refer to unit cost or price per floor area of the buildings.
  2. However, there are many types of floor areas being defined for different purposes in Hong Kong or other places outside Hong Kong. An understanding of their possible differences is important.
  3. Quantity Surveyors measure the construction floor area (CFA) in order to estimate the total construction cost of a building.
  4. Lands leased by the Government in Hong Kong are subject to limitation on the gross floor areas (lease GFA) of the buildings which may be built on the land. Some of the construction floor area is not accountable for the lease GFA. The Lands Department is responsible for the control. Read the Lands Department's Practice Note on Accountable and Non-Accountable GFA under Lease at https://www.landsd.gov.hk/en/images/doc/1998_1A_text.pdf.
  5. Building plans have to be submitted to the Buildings Department for approval and consent before construction. The gross floor areas (GFA) are also controlled by the Buildings Regulations. Read the Buildings Department's Practice Note on Calculation of Gross Floor Area and Non-accountable Gross Floor Area at https://www.bd.gov.hk/doc/en/resources/codes-and-references/practice-notes-and-circular-letters/pnap/APP/APP002.pdf.
  6. The Lands Department's Practice Note says while the Lands Department is usually prepared to follow the Buildings Department's ruling in exemptions from GFA calculations, it reserves its right and absolute discretion to do otherwise in individual cases.
  7. There are further complications due to the use of saleable area for residential properties. See Cap. 621 Residential Properties (First-hand Sales) Ordinance at https://www.elegislation.gov.hk/hk/cap621.

International Property Measurement Standards

  1. The various International Property Measurement Standards at https://ipmsc.org/standards/ intend to unify the rules of measurement of various kinds of floor areas for different types of buildings. IPMS 1 (gross external floor area) and IPMS 2 (gross internal floor area) are referred to by ICMS. They should be the same for all types of buildings, but because of the different types of publications of the various IPMS standards, the text may vary. Read the latest standards to appreciate the diagrammatic illustration. CFA in Hong Kong is close to IPMS 1 with one exception: accessible rooftop terraces are included in IPMS 1 but not in Hong Kong CFA.

Need for historical cost analyses

  1. Benchmark new projects
  2. Provide cost data for new estimates
  3. Provide cost parameters for new estimates​​​​​​​​​​​​​​​​​​​​​​

Cost analysis

  1. It analyses the awarded or final prices of a project and re-classify the costs following the same classification used for the detailed cost estimates or cost plans.
  2. When prepared in elemental format, the cost of each element or sub-element is summarised into a single line item where a single quantity x single all-inclusive rate = cost of that element or sub-element
  3. The single quantity is called "Elemental Quantity" in Hong Kong.
  4. The single all-inclusive rate is called "Elemental Unit Rate" in Hong Kong.
  5. The elemental unit rates are very useful when the cost of a new project is required to be estimated before any detailed design is available. 
  6. Elemental quantities can be measured for the new project and priced at elemental unit rates of the reference projects.
  7. There are not too many items of elemental quantities to be measured. The cost estimating process can therefore be very fast.
  8. Of course, the elemental unit rates may not be directly applicable to the new project. It should at least be adjusted for the changes in the price levels from the times it was applicable to the reference project to the time of the new project, and then for other changed factors.
  9. A cost analysis should also contains quantity ratios or factors such as:
    • elevation area : floor area
    • concrete volume per floor area
    • formwork area per concrete volume or floor area
    • rebar weight per concrete volume or floor area
    • etc.  
  10. These quantity ratios can serve as useful references when estimating the costs of new projects.
  11. Apart from using the data in a cost analysis to estimate the cost of a new project in the absence of detailed design, the data can also be used to benchmark the cost of a new project after a more detailed cost estimate is done to ensure that the new project would not go out of order.
  12. Hong Kong Government uses this technique to control the costs of new project at the design stage.

Adjust for time differences

  1. There can be up or down fluctuations of costs and prices over time. When using past cost data for the present or future work, adjustments should be made for the time differences.

Different methods of cost estimating
計算概算的方法

  1. Unit method
    按功能單元個數計算

    • The estimated cost of a building is calculated based on the number of functional units provided by the building x unit cost per functional unit.
    • ICMS (as introduced below) has suggested the following functional units for buildings: number of occupants | number of bedrooms | number of hospital beds | number of hotel rooms | number of car parking spaces | number of classrooms | number of students | number of passengers | number of boarding gates.
    • The unit method is a crude method serving as an early indication of the probable order of cost of the average building of the relevant type.
    • It is not useful for forecasting with high degree of accuracy the costs of newly proposed buildings of the same type because their designs can be very different.
    • However, it may be used by clients and in particular government departments to serve as a cost yardstick controlling the budget of newly proposed projects.
    • It is still also useful to serve a check that a unit cost per floor area may sound reasonable but, when expressed in unit cost per functional unit, the unit cost can be out of order because of excessive floor area per functional unit.  
  2. Superficial method or area method 
    按樓面積計算

    • The estimated cost of a building is calculated based on the floor area of the building x unit cost per floor area.
    • This is the most commonly used method, possibly because the sales and rental prices are also expressed in unit cost per floor area.
    • Note however that there are many definitions of "floor area". The same definition should be consistently applied.
  3. Cubic method (seldom used now) 
    按樓體積計算(現少用)

    • The estimated cost of a building is calculated based on the volume of the building x unit cost per volume.
    • In theory, the volume can take care of the different storey heights of the building.
    • This is not commonly used probably because the floor areas are more readily available, and calculating the volumes would mean a further step to be done.
    • The cubic method may be useful for site formation works or civil engineering works involving massive volume of work.
  4. Storey enclosure method (seldom used now) 
    按樓板及外殼面積加權計算(現少用)

    • In essence, the estimated cost of a building is calculated based on the total of the weighted areas of bottom slabs (basement or ground), suspended floor slabs, roof slabs, and walls below and above ground x unit cost per total weighted area.
    • Each type of slabs or walls are given different fixed weightings to reflect their relative ratios of costs.
    • The calculation is much more complicated than the superficial method or the cubic method.
    • With so many varieties of construction components and materials, whether the fixed weightings can truly reflect the relative ratios of costs is doubtful.
    • This method is seldom used these days.
  5. Elemental quantity method 
    按功能分部工程量計算

    • The building cost is classified into different elements ("Sections" in the following example).
    • Each element is represented by an appropriate elemental quantity.
    • The estimated cost of a building is calculated based on the total of (elemental quantity x elemental unit rate).
    • It takes into account the different forms, provisions and standard of the proposed new building better than the average unit cost per floor area.
    • It is therefore a more accurate method than the superficial method.
    • However, while the elemental quantities are simple to measure, the elemental unit rates would rely on reliable cost data from other projects or may need careful build-ups.
    • This method should only be used at the early stage of design.
  6. Approximate quantity method 
    按分項大約工程量計算

    • The estimated cost of a building is calculated based on the total of (approximate quantity of major item of work x unit rate per quantity of major item of work inclusive of costs of minor items).
    • As the design is more developed, it is possible to measure the work constituting the building more accurately and apply more appropriate unit rates relevant to the materials and standard chosen.
    • The quantities are approximate to reduce the time to measure so that a quicker cost estimate can be produced to reflect the updated cost of the design and enable any subsequent measures to control any unexpected costly design.
  7. Condensed elemental method using the most significant cost parameters
    • Users of the elemental quantity method may find that many elemental quantities are the same for different elements and can in fact be reduced into the most significant cost parameters listed above.
    • The estimated cost of a building is calculated based on the total of (quantity of the above cost parameter x composite unit rate per quantity of cost parameter).
    • This can provide a quick and equally reliable cost estimate though not as detailed as the elemental quantity cost estimate.
  8. Pre-tender estimate 
    按工程量清單計算標底

Use composite rates
組合單價的測算

  1. It is possible to use composite rates to simplify measurement of details:

    用組合單價來簡化細項的計算

  2. Allow in quantities or rates for unmeasured items
    數量或單價內要考慮不另行計算的內容​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​​

Contents of cost estimate
​​​​​​​概算的內容

Grand Summary: 
大匯總: 

  1. Total Cost of Each Section of the Project 
    建設項目每區域的總造價
  2. Floor Area of Each Section 
    每區域的樓面面積
  3. Unit Cost per Floor Area 
    ​每區域的樓面面積的單價

Descriptions: 
編製說明: 

  1. Project Name 
    項目名稱
  2. Project Location 
    項目地點
  3. Scope of the Estimate 
    估算範圍
  4. Areas: 
    面積:

    • Construction Floor Area / Covered Floor Area 
      建築面積/有蓋樓面面積
    • Ground Area 
      地面面積
    • Site Area 
      地塊面積
    • Lease Gross Floor Area 
      地契樓面面積
    • (Non-)Accountable GFA 
      可豁面/不豁面地契樓面面積
    • Bay Window Area 
      窗臺面積
  5. Basis of the Estimate:
    估算依據:

    • Drawings used 
      依據的圖紙
  6. Price Levels:
    價格水準:

    • Current Prices 
      現行價格
    • Fluctuations from Date of Preparing the Estimate to Tendering 
      由編製到招標的價格浮動
    • Fluctuations from Tendering to Completion of Construction 
      由招標到竣工的價格浮動
  7. Outline Specification of Design and Materials 
    分部設計及用料大綱
  8. Finishes Schedule 
    裝飾表
  9. Exclusions 
    不包項目

Elemental Summary of each Section: 
每區域的功能分部匯總:

  1. Floor Area of the Section 
    該區域的樓面面積
  2. Total Cost of Each Element of the Section 
    該區域的每功能分部總造價
  3. Unit Cost per Floor Area 
    每功能分部的樓面面積單價
  4. % Proportion of each Element 
    每功能分部所占百分比

Detailed Build-up: 
​​​​​​​​具體項目:

(Arranged by Elements or Cost Groups) 
按功能分部排列

  1. ​Item Reference 
    ​​​​​​​編碼
  2. Descriptions 
    子目說明
  3. Quantities, rounded off to tens or thousands 
    拾位元或百位元整數的數量
  4. Rates, round off to two significant figures 
    兩個有效數字的單價
  5. Extension, rounded off 
    萬位元整數的合價
  6. Elemental Totals 
    功能分部總價

Possible additional information: 
可能的附加資料:

  1. Elemental Quantities
    功能分部數量
  2. Unit Costs per Elemental Quantities 
    ​功能分部單價

​​​​​​​Adjust published unit costs per floor area

  1. Some Consultant QS firms publish unit costs per floor area for public information
  2. When using these unit costs, care should be exercised to understand the scope of inclusions and exclusions, and their applicability
  3. The General Practice Division of the Hong Kong Institute of Surveyors has published a Building Cost Pro-Forma for Private Sector Developments in Hong Kong.pdf
  4. This should serve as a useful checklist, but the items and figures suggested there should be verified for individual project

Build-up of elemental unit rates

  1. Note:
    • At the time of the elemental quantity cost estimates, there would not be much details to measure approximate quantities and one has to rely on past cost analyses or some estimated quantity factors and ratios to estimate the elemental unit rates.
    • The elemental unit rates, quantity factors and ratios should be critically reviewed to see whether they should remain unchanged or adjusted when the design of the building is changed even though the elemental quantities can remain unchanged.
    • The price levels of past projects must be adjusted to the present day for use.
  2. Example build-up of elemental unit rate for “Foundation piling” per construction floor area
    • unit cost per construction floor area based on some similar projects x construction floor area
  3. Example build-up of elemental unit rate for “Frames and slabs” per construction floor area
    • concrete volume per m2 floor area x rate per m3 concrete
    • formwork per m2 floor area x rate per m2 formwork 
    • reinforcement kg per m3 concrete x rate per kg reinforcement
    • (The quantity ratios are usually based on some similar projects or by sampling based on a typical bay.)
  4. Example build-up of elemental unit rate for “External elevations” per elevation area:
    • aluminium windows = a% @ $/m2
    • finishes on structural walls, columns and beams = b% @ $/m2
    • external non-structural walls and finishes = c% @ $/m2
    • roller shutters = d% @ $/m2
    • (a%+b%+c%+d% = 100% of the elevation area)
    • (The percentages are approximate proportions of the total elevation area of a sampled section of the elevation.)
  5. Example build-up of elemental unit rate for “Internal divisions” per construction floor area
    • internal non-structural concrete walls = m2 walls / m2 floor area @ $/m2 wall
    • internal brick walls = m2 walls / m2 floor area @ $/m2 wall
    • doors = No. doors / m2 floor area @ $/No. door
    • etc.
    • (The quantity factors are based on a similar project or approximate wall areas per construction floor area of a sampled floor, which layout may be just an educated guess.)
  6. Example build-up of elemental unit rate for “Internal divisions” per wall areas without deducting door openings
    • internal non-structural concrete walls = a% @ $/m2 concrete wall
    • internal brick walls = b% @ $/m2 brick wall
    • extra for doors = No. doors / m2 walls @ $/No. door (after deducting cost of wall)
    • (a% + b% = 100%)
    • (The percentages are approximate proportions of the total wall area of a sampled floor, which layout may be just an educated guess.)
  7. Example build-up of elemental unit rate for “Floor finishes” per construction floor area
    • floor finish A = a% @ $/m2
    • floor finish B = b% @ $/m2
    • floor finish C = c% @ $/m2
    • add 10% for skirting
    • (a%+b%+c% = an estimated percentage of the construction floor area after deducting void, wall and column areas)
  8. Example build-up of elemental unit rate for “Ceiling finishes” per construction floor area
    • Similar to the floor finishes but the total ceiling area should be bigger than the construction floor area.
  9. Example build-up of elemental unit rate for “Wall finishes” per construction floor area
    • Wall finish A = m2 wall finish A / m2 floor area @ $/m2 wall finish A
    • Wall finish B = m2 wall finish B / m2 floor area @ $/m2 wall finish B
    • Wall finish C = m2 wall finish C / m2 floor area @ $/m2 wall finish C
    •  (The quantity factors are based on a similar project or approximate internal wall finishes areas per construction floor area of a sampled floor, which layout may be just an educated guess. Note the approximate formula: internal wall finishes = internal wall area x 2 + external wall area. False ceiling voids and unfinished lift shafts would affect this formula.)
  10. Example build-up of elemental unit rate for “Ceiling finishes” per construction floor area
    • Similar to the floor finishes but the total ceiling area should be bigger than the construction floor area.
  11. Other items
    • Follow the above examples.

Build-up of composite rates using property set out dimension tables

  1. ​​​​​​​
  2. Note that in Hong Kong, beam concrete and formwork are measured those parts below slab soffit. Beam reinforcement includes those at the intersection of slab and beam.
    • ​​​​​​​​​
  3. Note that a typical bay of 6 x 6 m is measured to average out the beam quantities.
  4. Note also that the four beams around each typical bay are shared with adjacent slabs, and their quantities are therefore halved.
  5. ​​​​​​​

Build-up of composite rates using compact format for showing in the Cost Estimate

  1. The following shows another method to present the composite rate calculations in the Cost Estimate.
  2. Note that the reinforcement refers to the concrete quantities already calculated at cells E15 and E23 above.
  3. Note that the function FORMULATEXT() is used to display the formula of the quantity of 0.48 above for checking. The cell entry must be preceded with "=" for it to be recognised as a formula.
  4. Using this function will eliminate the need to type the formula separately as an explanation in addition to entering the formula in the calculation cell and risking mismatch errors.
  5. The formula column can be hidden or deleted when issuing the Cost Estimate.
  6. Note also that the estimated costs have been rounded to the nearest 10,000, using the formula "=ROUND(Rate*Qty, -4)".
  7. This would give the image that the figure is an approximate estimate rather than an accurate figure.

Prepare cash flow tables 編製資金流量表

Use S-curve
用S線圖

  1. ​​​​​​​​​​​​​​Divide the horizontal axis into parts equal to the number of months of construction
    ​​​​​​​將水平軸按施工的月份數目分段
  2. For each month, interpolate from the curve the cumulative payment percentage on the vertical axis
    利用曲線找出每個月在垂直軸相對的累計進度百份率
  3. Find the monthly payment percentages from the cumulative percentages; and
    用累計進度百份率計出每月進度百份率
  4. Apply the monthly payment percentages to the total cost to obtain the monthly payment values
    每月進度百份率乘總造價得出每月進度款

Use Bar Chart Programmes
用條形進度計畫表

  1. Follow the bar chart programme, assign the monthly payment percentages for each activity bar
    跟從條形進度計企劃表,對每條活動配以每月進度百份率
  2. Apply the monthly payment percentages to the total cost of each activity bar to obtain the monthly payment values
    將每月進度百份率乘該條活動的造價得出每月進度款
  3. Ensure that the total of each activity bar is correct
    確保每條活動的合計無誤

For both methods

  1. Separate stage payments
    要把分期付款及大型採購分列
  2. Separate Retention
    要把保修金分列
  3. Watch out time lag between work carried out, payment certification and honouring of payment
    注意施工、批款及付款的時間差

Payment terms

  1. Usual payment terms for construction contracts in Hong Kong

    • no advance payment; 
    • monthly payments for materials delivered to site and work done subject to 10% retention on the gross total up to a maximum equal to 5% of the original Contract Sum; 
    • half of the retention to be released upon Practical Completion / Substantial Completion (*); and 
    • the balance to be released upon the issue of the Defects Rectification Certificate / Certificate of Completion of Making Good Defects / Maintenance Certificate (*) after rectification of defects found during the Defects Liability Period / Maintenance Period (*) usually of 12 months.
    • (*) = Different terms used by different standard forms of contract.

  2. Possible payment terms for lift and escalator contracts / sub-contracts

    • 10% upon award;
    • 20% when ready for shipment;
    • 30% on delivery to site;
    • 25% on issue of Use Permit by the EMSD;
    • 10% on Practical Completion / Substantial Completion; and
    • balance upon the issue of the Defects Rectification Certificate (as above).
  3. Suppliers usually require deposits or advance payments which can be moderately up to 30% or sometimes up to 50%.

  4. Lower tiers sub-contractors require shorter payment periods and no retention.

Reconciliation
概算變化的解釋

  1. Presented vertically: 
    垂直列出:
  2. Presented side by side: 
    並排表示:

Pre-tender Estimate
標底

  1. By pricing the Bills of Quantities before formal issue of tender documents or before return of tenders 
    在發出招標檔前或在回標前利用工程量清單套取單價計價
  2. For checking whether the cost so priced is within the previous estimate and the Budget 
    以檢查得出的總價是否仍在前概算或投資預算之內
  3. For making design changes and issuing tender addendum to keep the costs within the Budget 
    作出設計修改並發出招標檔變更通知以便維持造價在投資預算之內
  4. For checking against tenders returned for reasonableness 
    用作評核回標價的合理性

End of Page

​​​​​​​Elemental cost classifications

​​​​​​​Elemental cost classifications KCTang Tue, 17/03/2020 - 15:45

Go to End

Note

17 Mar 2020: Created.

​​​​​​​Elemental cost classifications

  1. Such classification systems divide the costs of a construction project into various parts ("elements") each serving a specific function or common purpose such that the costs of alternatives serving the same function or purpose can be compared, evaluated and selected irrespective of their design, specification, materials or construction.
  2. Classifying the costs of a building (or other construction) into elements would facilitate: 
    ​把樓宇(或其他建設)的造價按功能分部分拆可利於:

    • Comparison of the costs of different design options serving the same elemental function 
      達到同一功能的不同設計方案按功能分部的造價比較
    • Comparison with costs of other projects by elements; 
      按功能分部與其他發展項目的造價比較
    • Rationalizing the budget allocation between different elements for better use 
      把投資按不同功能分部更合理地分配使用
    • Quicker estimating based on elemental quantities which are easier to measure 
      使用較易計算的功能分部數量加快估算
    • Analysis of data for different projects on the same basis and classification 
      以同一的基準及分類分析不同項目的資料
  3. Different QS practices and ArchSD have different elemental classifications.
    不同的測量師事務所及建築署有不同的功能分部分類方法
  4. ArchSD adopts the following Project Element Cost Model as described in the Standard Method of Measurement for Building Elements 2019 Edition published by the Architectural Services Department (https://www.archsd.gov.hk/media/377042/Asdsmmbe_2019.pdf):
  5. Many other places outside Hong Kong also have their own elemental cost classification systems, e.g.

International Construction Measurement Standards (ICMS)

  1. International Construction Measurement Standards, 2nd Edition (https://icms-coalition.org/) is intended to standardise the elemental cost classification systems globally.
  2.  It covers also civil engineering works and life cycle costs.
  3. "elements" is called "Cost Groups" and "Cost Sub-Groups" in ICMS.
  4. Example Cost Code: 01.2.03.030 = Buildings: Construction Costs: Structure: Frames and slabs (above top of ground floor slabs)

Level 1: Projects and Sub-Projects

  • 2-digit cost code

01.

Buildings

08.

Pipelines

02.

Roads, runways and motorways

09.

Wells and boreholes

03.

Railways

10.

Power-generating plants

04.

Bridges

11.

Chemical plants

05.

Tunnels

12.

Refineries

06.

Waste water treatment works

13.

Dams and reservoirs

07.

Water treatment works

14.

Mines and quarries

Level 2: Cost Categories

  • 1-digit cost code

Cost code

Description

 

Life Cycle Cost (CC plus NPV of RC, OC, MC, and EC)

1.

Acquisition Costs (AC) [Part of Non- Construction Costs]

2.

Construction Costs (CC)

3.

Renewal Costs (RC)

4.

Operation Costs (OC)

5.

Maintenance Costs (MC)

6.

End of Life Costs (EC)

Acquisition Costs

  • 2-digit cost code for Cost Groups and 3-digit cost code for Cost Sub-Groups

Cost code

Description

1.

Level 2 Acquisition Costs (AC) (each Cost Sub-Group includes Risks Allowances)

 

Cost Group (Level 3)

 

Cost Sub-Group (Level 4)

 

 

01.

Site acquisition

01.010

Costs and premium required to procure site

01.020

Compensation to existing occupiers

01.030

Demolition, removal and modification of existing properties by way of payment to existing owners instead of carrying out physical work

01.040

Contributions for the preservation of heritage, culture and environment

01.050

Related fees to agents, lawyers, and the like

01.060

Related taxes and statutory charges

02.

Administrative, finance, legal and marketing expenses

02.010

Client’s general office overheads

02.020

Client’s project-specific administrative expenses:

010 – in-house project management and design team

020 – supporting project staff

030 – project office venue, furniture and equipment if not included in Constructor’s preliminaries | site overheads

040 – stores and workshops

050 – safety and insurances

060 – staff training

070 – accommodation and travelling expenses for in-house team and external parties

02.030

Interest and finance costs

02.040

Legal expenses

02.050

Accounting expenses

02.060

Sales, leasing, marketing, advertising and promotional expenses

02.070

Taxes and statutory charges related to sales and lease

02.080

License and permit charges for operation and use

Construction | Renewal | Maintenance Costs of Buildings

  • 2-digit cost code for Cost Groups and 3-digit cost code for Cost Sub-Groups

Cost code

Description

2.

Level 2 Cost Category - Construction Costs (CC)

3.

Level 2 Cost Category - Renewal Costs (RC)

5.

Level 2 Cost Category - Maintenance Costs (MC)

 

(CC, RC, and MC share the same Cost Groups below, so far as applicable. Those separated by ‘|’ in [ ] are respective alternative terms.)

 

Cost Group (Level 3)

 

Cost Sub-Group (Level 4)

 

 

01.

Demolition, site preparation and formation

01.010

Site survey and ground investigation

01.020

Environmental treatment

01.030

Sampling of hazardous or useful materials or conditions

01.040

Temporary fencing

01.050

Demolition of existing buildings and support to adjacent structures

01.060

Site surface clearance (clearing, grubbing, topsoil stripping, tree felling, minor earthwork, removal)

01.070

Tree transplant

01.080

Site formation and slope treatment

01.090

Temporary