Nam~ lndexNo: ~( _

2306/305 Candidate's Signature: _

BUILDING ECONOMICS, CONSTRUCTION
LAW, ESTIMATING AND COSTING
OctJNov. 2013
Time: 3 hours

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THE KENYA NATIONAL EXAMINATIONS CtJ~rs~~~

DIPLOMA IN QUANTITY SURVEYING

BUILDING ECONOMICS, CONSTRUCTION LAW, ESTIMATING AND COSTING

3 hours

INSTRUCTIONS TO CANDIDATES
Write your name and index number in the spaces provided above.
Sign and write the date of examination in the spaces provided above.
You should have a pocket calculator for this examination.
This paper consists of EIGHT questions in THREE sections; A, Band C.
Answer FIVE questions choosing TWO questions from section A, ONE question from section Band
TWO questions from section C.
ALL questions carry equal marks.
Maximum marks for each part of a question are as shown.
Answers to ALL the questions should be written in the spaces provided in this question paper.
Candidates should answer the questions in English.

For Examiner's Use Only

Maximum Candidate's
Section Question
Score Score
1
A 2
3
4
B 5
6
7
C
8
Total Score

This paper consists of 16 printed pages.

Candidates should check the question paper to ascertain that all the
pages are printed as indicated and that no questions are missing.
© 2013 The Kenya National Examinations Council. Turn over
 SECTION A: BUILDING ECONOMICS

Answer any TWO questions from this section.

1. (a) (i) Define the term "supply" as used in building economics.

(ii) Outline four factors that affect supply of goods and services in economics.
(8 marks)

(b) Explain three situations in which the building industry improves the national economy
of a country. (6 marks)

(c) Highlight four factors in which the government controls the construction of buildings.
(6 marks)

2. (a) Explain five site conditions that affect the cost of construction. (10 marks)

(b) Briefly explain four benefits of cost control to the client. (6 marks)

(c) Differentiate between fixed and variable factors of production and state one example in
each case. (4 marks)

3. (a) (i) Explain the concept of "value" and "investment" in landed property.

(ii) State ten causes of demand for landed property.

(10 marks)

(b) Outline four functions of central bank. (6 marks)

(c) Highlight four effects of inflation in the building industry. (4 marks)

SECTION B: CONSTRUCTION LAW

Answer any ONE question from this section.

4. (a) List four sources of law in a country. (2 marks)

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(b) (i) Explain the stages of arbitrati~n for construction works.

(ii) State two merits and two demerits of arbitration over litigation.
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(11Tmarks)

(c) (i) Differentiate between "mortgage" and "charge".

(ii) Outline three types of mortgages.

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5. (a) Briefly describe the following remedies for a breach of contract:

(i) damages;
(ii) quantum meruit.
(6 marks)

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(b) Explain privity of contract as a limit of contractual obligation. (22" marks)

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(c) Outline five characteristics of a lease. (72" marks)

(d) Distinguish between libel and slander. (4 marks)

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 SECTION C: ESTIMATING AND COSTING

Answer any TWO questions from this section.

(USE THE DATA GIVEN IN APPENDIX 'A' FOR PRICE BUILD-UP)

6. (a) Figure 1 shows a line diagram of proposed rental apartments. The cost of a similar
apartment is ksh 47,000 per square metre. Estimate the cost of the proposed apartments
using storey enclosure method. (10 marks)

Fourth floor
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Third floor

Second floor E
N)

E
First floor N)

E
N)
Ground floor
G.l.
G.l.
/1---71---""11 •••.•.
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Basement N)

SECTION t-t

Notes:
1. All dimensions are external dimensions
2. All walls are 200mm thick except underground walls which are 250mm thick.

~1· ~ 2_5_m ~~!~-

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PLAN

Fig.!

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 (b) State eight factors to consider when costing for a 'crane' to be hired on site.
(4 marks)

(c) Build up a unit rate for the preliminary item "temporary electricity" supply to the site.
(6 marks)

7. (a) Build up a unit rate for making and fixing a framed, ledged, braced and battened
match boarded door. (per rrr') (17 marks)

(b) Highlight three roles of an estimator. (3 marks)

8. (a) The following variation order was issued to the contractor:

ADD: Vibrated reinforced concrete (1 :2:4) in foundation.

OMIT: Concrete (1:3:6) in foundation (unit rate ksh 9500 per cubic metre).

Calculate the 'pro-rata' rate for the new item. (13 marks)

(b) Calculate the cost of owning and operating a 300 litre mixer purchased at
ksh 1,200 ,000. (7 marks)

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23061305, --.:: ... 5 Turn over
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 APPENDIX' A'

General information
Wages: Skilled labour - 75/- per hr
Unskilled labour - 45/- per hr
Prices given are inclusive of transport to the site
Make reasonable assumptions where necessary.

ELECTRICITY
Project duration - 6 months
Contract sum 1,500,000

DOOR
Cost of timber per m3 ksh 21,000
Size of the door 900 x 2100 mm

CONCRETE
Sand 1200/= per tonne
Density of sand 1600 kg/rrr'
Cement per 50 kg bag - 750/=
Density of cement 1440 kg/rrr'
Ballast 1300/= per tonne
Density of ballast 1500 kg/rrr'
Concrete mixer hired at 4000/- per day
Vibrator hired at 2000/- per day

MIXER
Salvage value 20% of purchase price
Useful life 10,000 hrs
Interest rate 15% of purchase price
Repairs and maintenance 3% of depreciation
Insurance 10% of purchase price
Cost per litre of diesel ksh 105/-
Cost per litre of lubricant ksh 150/-

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