2. Q1 : The importance of estimating at different stages of procurement? (9M)
What is procurement in Construction industry?
Process of purchasing goods or services.
Have different routes
- Traditional
- Design and Build
- etc
3. 1. Concept
review concept to client
provide general view of project cost
advice change in project
2. Design
discuss with designers for more
accurate price
estimate material cost
estimate work load
material management
3. Tender
layout cost and price for project
suitable ones in cost will be selected
ensure cost within client’s budget
4. Construction
ensure material and costs follows set
budget
construction do not exceed planned
duration
5. Occupation
certificate of Completion and
Compliance (CCC) issued after tests for
tenancy suitability
guide client to builder evaluation
process
Procument Stages
4. Importance of Estimator
Contract do not deal with apportionment of risk
Parties do not know who pay and takes the decision
Clients overpay without proper financial control
Unnecessary additional cost due to contractor’s inability to perform
Uses unreliable cost check systems
5. Q2 : The differences of measurement, tendering and estimating ? (9M)
Measurement Item + Quantity
Estimating Measurement + Rates
Tendering Estimating + Profit
Measurement - a process of quantifying items according to a rule or set of rules.
- provides a structure for the information that make up the
descriptions for taking-off list and BQ.
Estimating - a process of calculating the approximate cost of a result.
- provide the total cost of work which is derived from the element
cost(plant, material, labour), prelims, provisional and prime cost sums +
dayworks and overheads.
Tendering - a process of making a priced offer to construct the building.
- provide tender document which included both measurement
and estimating information.
6. Q3 : What preliminaries items are and provide five (5) examples ? (7M)
Also known as General Site Charge
Represents those costs that cannot be reasonably allocated to any specific
identified
The Code of Estimating Practice published by the Chartered Institute of
Building described preliminaries as, '...the cost of administering a project and
providing general plant, site staff, facilities, and site based services and other
items not included in the rates”.
7. Site Security
Water & Electricity SupplyFencingSite Signboard
Insurance Temporary Accommodation