ESTIMATING AND

COSTING I
DBT 219 A & B
DCE 219 A & B
DQS 211
SITE OFFICE AND PROCEDURE
By the end of the lesson, the learner should be able to;
 Explain the role of a quantity surveyor
 Explain the role of contractors, sub-contractors and nominated sub-
contractors.
 Explain the sums included in the bills of quantities.
 Explain types of payment certificates.
 Explain variations and valuation of variations
 Explain the importance of contract documents
Reference Documents
1. Elements of Quantities Surveying; S. Lee, W. Trench and A. Willis
2. Building Quantities explained; I. H. Seeley
3. Construction Quantity Surveying; Donald Towey
4. Estimating and Tendering for Construction work; M. Brook
Role of quantity Surveyor
EXERCISE 1
Explain the roles of a quantity surveyor in the following stages; (5 roles at each
stage)
a) Pre-contract stage (10mks)
b) Construction stage (10mks)
c) Post construction stage (10mks)
Role of contractors
Main contractor is a person or a company that is in charge of the entirety of a
construction project, whether commercial or residential.
He is employed by the client, on the advice of the architect.
His responsibilities include;-
i. Bidding on the job and obtaining it.
ii. Providing all the materials, labour, equipment and services necessary for the
construction of the project.
iii. Hires specialized sub-contractors to perform all or portions of the construction
work.
iv. Supervise all employees and sub-contractors to ensure the project is completed per
the scope and within all building codes, laws and regulations.
v. Other responsibilities may include applying for building permits, securing the
property, providing temporary utilities on site, monitoring schedules and cash flows,
and maintaining accurate records.
Sub-contractors
A sub-contractor is a party which agrees to perform part or all of the obligations
of the main contractor under a separate contract with the ultimate employer.
There are two types of sub-contractors;-
(a) Domestic and
(b) Nominated sub-contractors
Domestic sub-contractors are employed directly by the main contractor i.e to
supply to supply materials, labour for the sections given to them.
Nominated sub-contractors are appointed by the client through the architect and
is under the main contractor. They are specialized in nature e.g gas installation,
electrical installation, plumbing etc.
Note that in all the cases the sub-contract terms are signed between sub-
contractor and the main contractor being responsible for supervision and
payment in accordance with the main contract conditions.
Roles of sub-contractors
The following are the main reasons for sub-contracting;-
a) Lessen the cost of contractor i.e work can be done at a lower cost by sub-
contracting. The main contractors’ liability to retain, on a full time basis, all
the specialists necessary for day to day operations is reduced.
b) Specialized nature of work that the main contractor cannot undertake using
his labour office can be sub-contracted. Requires additional specialist advice
or expertise.
c) Overstretched resources; for instance when undertaking a particular big job,
such as a multi-site construction project.
Suppliers
Nominated suppliers are responsible for supplying goods and materials on behalf
of the contractor.
Contracts should be formed between nominated parties and the contractor
basically to ensure that the materials supplied or work executed is of a
satisfactory standard.
Sums in the Bills of Quantities
Prime cost sums (PC)
This term is defined in the SMM as the sum provided for work or services to be carried
out by a nominated sub-contractor or a statutory authority or a public undertaking or
for materials or goods to be obtained from a nominated supplier i.e. specialized woks
Such sum shall be deemed to be exclusive of any profit required by the general
contractor and provision shall be made for the addition thereof.
Provisional sums
This term is defined in the SMM as the sum provided for work or for cost which cannot
be entirely foreseen, defined or detailed at the time the tendering documents are
issued.
They are simply sums of money awaiting the architect’s instructions about their
expenditure. They are used where some part of work which is known to be required is
uncertain in character; whereas PC sums may as well be for work that is of known
character.
Furthermore, provisional sums have a partial distinction from PC sums in that
they may represent work which will ultimately be carried out by the main
contractor or by a specialist contractor.
As such they are to be read as not including any discount or attracting any profit
addition.
Provisional sums should be employed only for small pockets of work, where the
character of the work on conditions of working is so uncertain that no price can
be estimated in advance.
iE.g. repairs to existing structures, underground rock, pumping rain water in
foundation trenches or underground work.
Contingency sums
This is a sum of money included in a contract to cover the cost of work or
expenses not contemplated or implied in the contract sum.
It is often between 2 ½ and 5 % of the total value, while for alteration work 10 to
15 %.
This figure is allocated to be spent entirely at the architect’s discretion.
Basically this allows the architect a sum of money to cover minor alterations to
the project without the necessity of approaching the client for extra funds.
No quantity surveyor should write in his own idea of the contingency sum but
should discuss the matter with the architect.
Payment Certificates
The certificates issued by the architect, approves the payment to the main
contractor.
There are THREE types of certificates.
 Interim certificate;
This is a temporary certificate that enables the contractor to receive regular
payment so that he will not have to carry the heavy financial burden of a complete
project.
 Penultimate certificate;
It means a certificate issued by the architect to the contractor signifying that the
works have been carried out and completed in accordance with the terms of the
contract and all adjustments to the contract price have been made in accordance
there with.
At this stage the project is practically complete and the building can be
transferred to the client.
 Final certificate;
This is the last certificate issued by the architect to the contractor to signify a
state of satisfactory completion, where to the opinion of the architect; the works
are substantially complete and can effectively and conveniently be used for the
intended purposes.
This is issued one month from the expiring of defect liability period certificate
making good defects.
Defect Liability Period (D.L.P)
It is a time allowed after completion of the project for observation purpose.
It is normally a period of 6 months.
Within this period the contractor carries out minor repairs to the defects that
may arise and general maintenance of the project.
Variations
Variation means alterations or modifications of the design, quality or quantity of
works as shown in the contract drawings, bills and specifications.
It includes;
 Addition, omission or substitution of any item of work
 Alteration of the kind or standard of any material/goods.
There are several causes of variations i.e.
 Errors in the preparation of bills of quantities
 Changes to the design or specifications required by the architect or client
 Non-availability of specific materials
 Unforeseen site conditions.
Valuation of variations
It is the responsibility of the quantity surveyor to value the work contained in a
variation.
He will usually do this in consultation with the architect’s surveyor.
Assuming that there is a priced bill of quantities or a schedule of rates (similar to
bill but no quantities measured, just priced description of work) the quantity
surveyor can use the following methods of valuing the work;
1. Use of contract rates;
This is where work to be executed as a variation is both of similar character and
carried out under similar conditions to work described in the contract bills.
Here the contractor’s original rates may be used to calculate the cost of the
variation.
2. Use of pro-rata rates;
This is where work is not of similar character but executed under similar
conditions to work described in the bills.
Therefore, the QS may calculate new rates which are adjusted from the
contractor’s original rates.
3. Use of star-rates;
This is where work is not comparable with that given in the contract bills but can
be measured and priced.
The contractor’s original rates can neither be used nor adjusted and therefore a
fair valuation of the varied work must be agreed between the parties.
4. Using Day works;
Day works are used when work may not be easy to measure and value e.g where
items are omitted in the BQ.
Day work means reimbursing the contractor the direct cost of all materials,
labour and plant used in the varied work plus an addition to cover the
contractor’s overheads and profit.
N/B – It is important to realize that not all variations will result in an additional
cost. Often work is deleted and will result in an omission from the final contract
cost.
Contract Documents
These are;
a) Working Drawings
b) Specifications
c) Bill of Quantities
d) Form of tender
e) Schedule of rates
f) Conditions of contract
g) Articles of agreement
Working Drawings
They include plans, elevations, sections and large scale details of the proposed
construction project of which should be able to interpret the project at hand.
Drawings of a building or a structure show the arrangement of rooms and various
dimensions i.e breadth, length and height with very few descriptions of parts.
Specifications
These are documents prepared by architect to supplement the drawings.
A specification specifies or describes the nature and class of work and materials
to be used in the various parts of work from foundations to superstructure in
details as well as methods of work (workmanship).
It is a short description of different parts of work, specified materials,
proportions, qualities etc.
For example, foundation shall be in brickwork with lime mortar or cement
mortar 1:6.
Bill of Quantities
This is prepared for the client by professional quantity surveyor whose fee is paid
by the client.
Copies of bill of quantities are sent to the contractors to enable them to estimate
when tendering.
BQ specifies the type of materials, method of work and the quantities of work to
be done.
When the contract is signed, the priced BQ become part of the contract agreement
and will be used for preparation of the final account and settlement of any
variations.
Form of tender
The form of tender is a pre-printed formal offer, usually in letter form, which
ensures that all tenders are received on the same basis and should be simple to
compare.
The tenderer fills in his name and address and a sum of money (contract sum) as
an offer to carry out and complete the works as described in the conditions,
drawings and bills of quantities.
Schedule of rates;
In appearance they are similar to a page of a bill of quantities without any
quantities given.
The contractor simply inserts his rates upon which his tender is based against
each description of work included on the schedule.
In practice only the major work items of significant cost and value are
included.
Those rates can then be used to value any variations.
Schedules of rates are also used to obtain tenders for maintenance works.
Conditions of contract
They are clauses in the agreement of which is stated and observed by the
construction team.
It defines the responsibilities of the employer, contractor, architect, engineer
and other non-technical staff.
Form of agreement
This is a legal document signed by both parties agreeing to abide to the
conditions of contract.
It states that the contractor accepts to put up the building in accordance with
drawing and specifications and the client agrees for his part to pay the contract
sum.

THE END