Você está na página 1de 48

MTE

Acknowledgement

First of all, I would like to tank almighty God and then I would like to thank
Ms. H.G.P. Indira (Lecturer for Measuring, Tendering and Estimation for Construction
and Built Environment). She has been more of a friend than a lecturer while instructing
us in a friendly manner to achieve the target of transferring her knowledge to us. This is
a standard subject. I am very happy that I gained all this useful knowledge with regard
to this subject. Truly, it has given me a clear understanding in this subject.

Finally, I must thank my parents and all my lectures of British College of


Applied Studies. They have always encouraged and supported me to reach my goal. I
am greatly indebted to you miss.

Thank you all

R.Divakar

CE/15/07/12 1
MTE

Introduction

Estimating is concerned with the processes used by contractors to establish the cost
to themselves of carrying out construction work.
Tendering is concerned with the commercial aspects of bidding for and obtaining
work from contracting companies by selecting contractors and asking them to tender
and submit a price for the project work.
Measurement, and the accurate estimation of the cost of construction work, is crucial
to providing meaningful cost information for the construction firm and the client. The
process of bidding for a construction contract normally involves the contractor
measuring the works required accurately and using the outcomes to estimate the costs
and compile the tender.
(pearson, 2010)

(premierschoolofbuilding, 2015)

CE/15/07/12 2
MTE

Table of Content

Acknowledgement ........................................................................................................... 1
Introduction ..................................................................................................................... 2
Table of Content .............................................................................................................. 3
Task 01 ........................................................................................................................... 4
1.1. Client’s involvement in the tender process in new junior school for 300 students.
4
1.2. Constraints that apply to the tender process to adopt the traditional method for
procurement. ............................................................................................................... 8
1.3. Contractual documentations............................................................................... 9
TASK 02 ........................................................................................................................ 15
2.1. Collect the factors to be considered when collect the data required to build up
unit costs. .................................................................................................................. 15
2.2. Make use of standard data documentation and measurement rules. ................. 18
2.3. Produce the method statements suitable for compiling unit costs ...................... 20
2.4. Calculate unit costs for following items ............................................................... 23
TASK 03 ........................................................................................................................ 30
3.1. Demonstrate how the bill of quantities format may be used to build up estimates
................................................................................................................................... 30
3.2. Determine the critical factors that affect profit margin in a new junior school for
300 students .............................................................................................................. 32
3.3. Demonstrate how the health, safety and welfare plan affects the tender ............ 34
3.4. Calculate the preliminaries using the following data ........................................... 36
TASK 04 ........................................................................................................................ 40
4.1. Compare the stages of open and selective tendering ......................................... 40
4.2. Analyses the factors that are used to create “select lists” of contractors ............ 42
4.3. Evaluate the different forms of contract used in the construction process ......... 44
References .................................................................................................................... 47

CE/15/07/12 3
MTE

Task 01
1.1. Client’s involvement in the tender process in new junior school
for 300 students.
Tendering is the process of making an offer, bid or proposal, or expressing interest
in response to an invitation or request for tender. Organizations will seek other
businesses to respond to a particular need, such as the supply of goods and services,
and will select an offer or tender that meets their needs and provides the best value for
money.
The client’s experience of building will influence his expectation of the industry.
Clients have one of the biggest influences over the way this school project is run.
They have substantial influence and contractual control and their decisions and
approach determine.
 The time, money and other resources available for projects
 Who makes up the project team, their competence, when they are appointed and
who does what
 Whether the team is encouraged to co-operate and work together effectively
 whether the team has the information that it needs about the site and any
existing structures
 The arrangements for managing and coordinating the work of the team
Particular client’s involvements in all stages of tendering in this school project:
Particular client’s involvement during the pre-tender stage are to:

 To ensure the project brief is clear and specific, effectively defining the project.
 To selecting a procurement strategy ‘which is best suited to the project”.
 Arrange for adequate finance to complete the project.
 Preparing whole tender documentation, which expose the style of procurement
strategy.
 Wherever appropriate, to apply pre-qualification criteria for the selection of suitable
firms invited to tender.re

Client’s involvement at tender stage in this school project:

 Selecting a tendering method, having regard to the costs associated with tendering.
 Answer all questions during the tender period, all answers to inquiries must be
circulated to all tenderers.

CE/15/07/12 4
MTE

 Avoid any changes to the tender documents.


 Provide information relating to the health and safety file to the CDM coordinator.

Client’s involvement at post-tender stage in this school project:

 To arrange for the safeguard and security of all tender submissions upon receipt.
(bond)
 To discard a tender which does not comply with the tender documents.
 To consider the tender most advantageous to the client for acceptance.

For example,
A client was aware that there were electrical and gas services passing under the
site.
He arranged for plans for these to be provided by the relevant utility suppliers,
and confirmed the exact location of the services by carrying out on site tests.
This information was then provided to contractors who were asked to tender for the
work. So that they could take account of the presence of the services when bidding
for the work.
Clients must provide designers and contractors who may be bidding for the
work, with the project specific health and safety information needed to identify
hazards and risks associated with the design and construction work.
Many clients are prepared to pay for a good service. The client has traditionally
employed an inactive role in the construction process. Standard forms of contract
require the employer to pay for work properly performed. The client is the most
important member of the team because he is the sponsor for the organization, he
identifies the need for the building and he must pay everyone who is directly or
indirectly involved in the construction process.

Tender process

(zemaitis, 2016)

CE/15/07/12 5
MTE

Model tender documents

CE/15/07/12 6
MTE

(sampletemplates, 2011)

CE/15/07/12 7
MTE

1.2. Constraints that apply to the tender process to adopt the


traditional method for procurement.

The 'traditional' procurement route, sometimes referred to as 'design bid build' (or
'bid build' by contractors) remains the most commonly used method of procuring
building works.
In this method, the client first appoints consultants to design the project in detail,
and then prepare tender documentation, including (drawings, work schedules and bills
of quantities). Contractors are then invited to submit tenders for the construction of the
project, usually on a single-stage, competitive basis. This may be referred to as a
'traditional contract'.
The contractor is not responsible for the design, other than temporary works,
although some traditional contracts do provide for the contractor to design specific parts
of the works.
Typically, the client retains the design consultants during the construction phase to
prepare any additional design information that may be required, to review any designs
that might be prepared by the contractor, and to inspect the works. Normally, one
consultant will be appointed to administer the contract.

Traditional construction contracts are most commonly lump-sum contracts, however,


measurement contracts and cost reimbursement contracts can also be used for
‘traditional’ projects where design and construction are separate, sequential activities.
This form of procurement is suitable for both experienced and inexperienced clients.
(designingbuildings, 2016)
Main Constraints facing in traditional method for procurement:
 Tenders are not competitively priced
 Tenders are poorly presented which make them look unprofessional
 Size and complexity of the project
 Tenders are poorly presented which make them difficult to understand
 Not enough time to review tender process
 Tenders contain inaccuracies that may depression client confidence
 Tenders take longer to complete than competitors
 The tender team does not respond appropriately to client demands

CE/15/07/12 8
MTE

 Legal issues
 The tender team do not efficiently communicate with clients

1.3. Contractual documentations

Documents used as the basis of a tender for the school for 300 pupils.
The basis of the tender will order the way in which the contractor will be paid and the
relative accuracy of the estimate.
The contractor’s bid will be for one of the following:
 Fixed price contract: where the sum of money is specified in the contract as
payment for work, the payment may be adjusted according to strict conditions in
the contract.
 Measurement contract: will allow the contract sum to be calculated later,
usually as the aggregate of various rates submitted by the contractor. The
contract sometimes includes a target price.
 Cost-reimbursement contract: an arrangement whereby the cost, whatever it
may be, will be paid by the client on the basis of the actual incurred by the
contractor, plus overheads and profit.
(academia, 2016)
Main Contractual documentation required for tendering
 bid bond
 form of tender
 construction program
 day work schedule
 power of attorney
 prequalification document
 Quality and safety proceeding
 Copy of ICTAD, NCASL registration

Formal tender documents:


 Formal invitation
The Code of Procedure for Single Stage Selective Tendering provides an example
letter. The letter is to tell the contractor which drawings have been sent, arrangements
for site visits, date for return of tender and how the tender should be submitted. The
client should issue the tender documents on an agreed date in order to plan the
contractor’s estimating workload.

CE/15/07/12 9
MTE

Example invitation,

(etaleem, 2016)
 Bill of quantities
The bill of quantities is a vital tender document; a contract document should be an
accurate description and quantification of the project.

Contractor is usually paid according to the quantities of items completed each


month.
 Drawings
The bill of quantities will list the drawings which were used in preparing the documents.
The tenderers are great reliance on drawings (The architectural and structural plans of
the building), aimed at producing shorter bills of quantities with standard methods of
measurement. For large projects, drawings are often issued electronically.

CE/15/07/12 10
MTE

 Form of tender
The form of Tender is a form where the tenderer can fill in details relating to their
offer, including the lump sum for which they are offering to complete the works. A 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.
Qualification Information & Day work schedules

CE/15/07/12 11
MTE

Example form,

CE/15/07/12 12
MTE

(academia, 2016)
 The specification
This describes in words the works required, the quality of materials and
workmanship to be used, and methods of testing to be assumed to ensure compliance.
The specification usually starts with a description of the works to be constructed,
followed by all relevant data concerning the site, access, past records of weather, etc.
and availability of various services such as water supply, electric power, etc.
 Health and safety plan
A pre-tender health and safety plan is a requirement of the Construction (Design
and Management) Regulations 1994.

CE/15/07/12 13
MTE

During its development, the plan can provide a focus at which the health and safety
considerations of design are brought together under the control of the Planning
Supervisor. The plan plays a vital role in the tender documentation.
 Schedule of works
The Schedule is the part of the Contract that specifies the particular details relating
to a particular project. Depending on the contract, the Schedule has one or two parts.
 Preliminaries
Preliminaries provide a description of a project that allows the contractor to assess
costs which, whilst they do not form a part of any of the package of works required by
the contract, are required by the method and circumstances of the works. It may
contain,
 A general summary
 Method statements
 Pre-construction information
 Labor relations
 Quality management procedures.
(Designingbuildings.co.uk, 2016)
 Return envelope
Each contractor should be provided with a pre-addressed envelope clearly marked
“Tender for …”.
They are to be marked so that they will be easily recognized and not arrive to the wrong
person.

Justification
These are the required documents for the tender process. These documents
help the tender process and construction process to go well.

In the example,
 They have told “Applicable only for C1 contractor”, In that case no other
contractor like (C2, C3, C4….) can apply for the tender. Only C1 contractors can
apply for this tender.
 They have mentioned its ‘Fixed price contract” where the sum of money is
specified in the contract as payment for work, the payment may be adjusted
according to strict conditions in the contract. Nobody can argue on that.

CE/15/07/12 14
MTE

 In the contract document client had specify. Health and safety plan of the
Construction (Design and Management) Regulations 1994. In that case
contractor, should follow the H&S plans specified in the documents on the
construction phase.

TASK 02

2.1. Collect the factors to be considered when collect the data


required to build up unit costs.

There are many factors to be considered when collect the data required to build up
unit costs. Whether with manual or computer, construction cost estimating involves
direct cost (pricing materials, labor, overhead, subcontractors and equipment needed to
complete a project) and indirect cost.
Direct cost:
Estimating Materials costs
Construction materials range from the big items such as concrete, steel, timber,
metals, blocks, electrical and plumbing to small items like steel hangers, nails and
screws.
A good technique is to buy as much material as possible from one supplier to have
influence to negotiate an overall lower cost. Buying timber from a yard, blocks from a
block-maker and nails from a hardware store may lead to greater overall costs.
Always include enough coverage to cover lost materials from anticipated waste,
pilfering and possible uninsured theft. Material prices, especially today's current market,
vary up and down. The estimator must both understand and anticipate the frequency
and extent of the price variations and the timing of the buying.
Material cost may be varying or affected by:
 Purchase at a peak or slack time of the year for the manufacturer
 Material availability and scarcity
 The size of the order
 The delivery timeframe requirement
 Physical requirements for delivery, such as distance, road size, or site access
 Payment terms and history on previous purchases

CE/15/07/12 15
MTE

 Exchange rates (if the material will be imported from outside)


Estimating Labor cost,
Labor is the biggest expense on any construction job. The labor rate is the cost per
hour for the craftsmen on the project. To determine any craft rate, whether union or
open shop, the estimator starts with the basic wages and marginal benefits.
When estimating, assume a margin for overtime and also lost time because of
adverse weather. Balance the cost of sufficient labor to meet specified deadlines with
fewer workers working additional overtime. Labor costs consist of more than just the
hourly wage. A single0 worker laboring through overtime might be less expensive than
two workers laboring during regular hours. Labor hour amounts can be developed by
crew analysis or applied on a unit man-hour basis. The use of a labor rate, amount of
naira per unit of work is popular.
The estimator must make allowance for the varying production capability that will
occur based upon the complexity of a project.
Estimating Overhead
Overhead costs such as head office, securing permits, deposits for utilities,
connecting utilities, job site insurance and extraneous expenses (security, fencing, etc.)
should also be factored in to the estimate. Some items, such as office operations,
buying newspapers or mandated workers' compensation payments, are considered the
"cost of doing business," and it is up to the estimator to balance what to absorb and
what to add to the estimate to ensure getting the job.
Estimating Subcontractors cost,
The estimator is working for the customer. Subcontractors (plumbers, electricians,
painters and etc.) are working for the estimator. Receive all quotes with specific terms
and deadlines. Maintain on penalties for missed contract terms.
When including subcontractors' costs in the final estimate, estimator should calculate
reasonable markup for profit. A subcontractor quote, like the general estimate, contains
labor, material, equipment, indirect costs, and profit. It is dependent upon having the
quantities, labor hours, hourly rate, etc., prepared in a reliable manner just like any other
part of an estimate. The amount of the subcontractor quote is also dependent upon the
payment terms of the contract, and previous payment history between the subcontractor
and general contractor. Bonding costs should also be considered.
Estimating Equipment (Plant and Machinery) cost,
Equipment rates depend on the project conditions to determine the correct size or
capacity of equipment required to perform the work. When interfacing with other
equipment, cycle times and equipment capacity control the costs on the project. Costs
will also differ if the equipment is owned by the contractor or third party (rented).

CE/15/07/12 16
MTE

Construction is a combination of numerous tasks that require specialization that a


general contractor cannot own all equipment. Crane, skid steers, forklifts, generators,
pneumatic tools and compressors and power lifts are examples of rented equipment.
Include in the estimate the time needed to complete the job plus a reasonable markup
for profit.
Estimating Indirect Costs,
For the owner: design fees, permits, land acquisition costs, legal fees, administration
costs, etc.
For the contractor and subcontractor: mobilization, staffing, on-site job office,
temporary construction, temporary heat/cooling, and temporary utilities, equipment,
small tools and consumables, etc.
The following are examples of how indirect costs are treated in an estimate:
 Creating Indirect Cost Account: Indirect cost may be treated as part of the code of
accounts for a project. One method to estimate the indirect costs is to assign a cost to
each cost account. This must be based on the size and type of contract and may be a
long list. This method needs a great deal of experience and a working knowledge of the
construction industry.
 Percentage: A percentage can be developed as a multiplier from a local data base or
from published cost manuals and applied to direct cost to get indirect cost.
 Government statutory requirements like notice boards; public relations etc. should
also be added.
 Special conditions: Where there is more than one project on a site, costs should be
shared among them so that there is no “double-dipping”.
(Oyedele, 2015)
Those are the Collected the factors considered when collect the data required
to build up unit costs.

CE/15/07/12 17
MTE

2.2. Make use of standard data documentation and measurement


rules.

There are many measurement documents involved in the construction progress,


 SMM
 SMM7(Standard Method of Measurement)
 POMI (Principles of Measurement International)
 SLS 573 (Sri Lankan Standard)
 CESMM 4 (Civil Engineering Standard Method of Measurement)
 CESMM-SL
 Australian SMM
 NRM 1 (New Rules of Measurement)
 NRM 2
 NRM 3

The Standard Method of Measurement (SMM) is published by the Royal Institute of


Chartered Surveyors (RICS). It was first published in 1922.
SMM7 provides detailed information, classification tables and rules for measuring
building works. It is important that there is a uniform basis for measuring building works
in order to facilitate industry wide consistency and benchmarking, to encourage the
adoption of best practice and to help avoid disputes.
SMM7 is typically used in the preparation of bills of quantities, documents that
provide measured quantities of the items of work identified by the drawings and
specifications in tender documentation. Bills of quantities are issued to tenderers for
them to prepare a price for carrying out works.
SMM7 has been replaced by the New Rules of Measurement volume 2 (NRM2)
which was published in April 2012 by the RICS Quantity Surveying and Construction
Professional Group and became operative on 1 January 2013.
It is suggested by the RICS that together; the new suite of documents will better
reflect the way the industry now works:
 Better meeting the needs of clients.
 Providing for more up-front detail.
 Allowing better consideration of the full costs of a construction project (for
example marketing costs, fees and charges, the cost of acquiring land, planning
costs, relocation costs, and the cost of finance and so on).
 Providing a better method for quantifying risk.

CE/15/07/12 18
MTE

NRM is a suite of documents, comprising three volumes; NRM1, NRM2 and NRM3.

NRM1: Order of cost estimating and cost planning for capital building works.

NRM 1 was first published in February 2009 (as NRM Order of


cost estimating and elemental cost planning).

Now in its second edition, it provides guidance on the quantification of building works
in order to prepare order of cost estimates and cost plans as well as approximate
estimates. It also includes guidance about quantifying wider costs such as preliminaries,
overheads and profit, risk allowances, and inflation.

NRM2: Detailed measurement for building works.

NRM2 was published in April 2012. It became operative on 1 January 2013 and
replaced the Standard Method of Measurement, seventh edition (SMM7) on 1 July
2013.

NRM2 establishes detailed measurement rules allowing the preparation of bills of


quantities, quantified schedules of works and schedules of rates in order to
obtain tender prices. Guidance is also provided on the content, structure and format
of bills of quantities.

NRM3 - Order of cost estimating and cost planning for building maintenance
works.

NRM3 was published in March 2014.

It allows the quantification and description of maintenance works. It can be used


for initial order of cost estimates, general cost plans and asset-specific cost plans. It
also provides guidance on procurement and cost control.

NRM3 also offers guidance about the measurement of other items associated with
maintenance works that are not included in work items.

Like that, these NRM 2 measurement document is used in the measurement


works for accurate quantity measurement in the construction industries in Sri
Lanka and this school project.

CE/15/07/12 19
MTE

2.3. Produce the method statements suitable for compiling unit costs

If the design technology for a facility has been specified, the project can be
decomposed into elements at various levels of detail for the purpose of cost estimation.
The unit cost for each element in the bill of quantities must be assessed in order to
compute the total construction cost. This concept is applicable to both design estimates
and bid estimates, although different elements may be selected in the decomposition.
There are some method statements which should be followed sequence to build up unit
costs as a contractor.
 We have to examine the key documents which are needed for the project such
as contract data, work information, site information, drawings, specifications,
BOQ etc.
 Then we have to send inquiries to subcontractors and material suppliers.
 We have to check the major quantities in BOQ and show more consideration in it.
 We have to determine the method of construction and the outline program of the
works.
 We have to examine more economical alternative designs and design temporary
works and any necessary permanent works;
 We should Identify inherent restrictions for example access to site/transport;
 The main important thing is to Visit site and compile site-visit report.

There are three common methods used for compiling unit costs:
 1st principle method
 Work study method
 Norms method (BSR)

1st principle method


Estimating from first principles is all about having accurate knowledge of the direct
costs of your resources – that is your Plant, Labor, Materials and your Subcontractor
prices. Building up your items with knowledge of price and practical experience is
crucial.
This method of estimating is regarded as “best practice” and can be used to price all
types of projects no matter what the size of the job, what industry you are in or the stage
of the project.

CE/15/07/12 20
MTE

There are many benefits to estimating from first principles, some of which I have tried
to outline below.
 Clear understanding of the job
 Accurate cost of materials
 Overheads and profit
 Winning a job at the right price
 Making money
Work study method
Work study is defined as “a generic term for those techniques, particularly method
study and work measurement, which are used in the examination of human work in all
its contexts, and which leads systematically to the investigation of all the factors which
affect the efficiency and economy of the situation being reviewed, in order to affect
improvements”. In simple terms work study may be defined as the analytical
investigation of methods, conditions and effectiveness of work and thereby the
determination of the ways in which human effort may be applied most economically. It is
a method used to increase productivity.
The main objectives of work study are:
 To find the most economical way of doing the work.
 To standardize the methods, materials, tools and equipment.
 To determine the time required to do a job by a qualified and properly trained
person
 Working at normal pace.
 To assist in training, the workers for new methods.
Norm’s method (BSR)
A schedule of rates in its lesser form in a standard contract can be a list of staff, types
of labor and plant hire rates upon which a contractor has listed hourly rates for the
purposes of pricing work carried out under cost reimbursable instructed day work.
However, on a much larger scale there is a Schedule of Rates Term Contract. Such a
contract is normally used when the nature of work is known but cannot be quantified, or
if continuity of program cannot be determined. In the absence of an estimate, tenderers
quote unit rates against a document that is intended to cover all likely activities that
might form part of the works. Indicative quantities may or may not be given to tenderers
but do not form part of the contract. As the extent of the work is unknown the unit rates
include overhead and profit. General preliminaries such as scaffolding, temporary
power, supervision and temporary accommodation will also have its own rates.
These are the three method statements suitable for compiling unit costs.

CE/15/07/12 21
MTE

Example Bill of Quantity,

(orphansclub, 2015)

CE/15/07/12 22
MTE

2.4. Calculate unit costs for following items

Build up rates
Cement
Price details
Description Price

Cement 900
Skilled labor 2000
Un skilled labor 1300
Un-loading materials (For labor) 5 rupee per packet
Transport 20 rupee per bags

Cement 900@100 90000.00


Transport cost 20@100 2000.00
Wastages 1% of material 1%@90000 900.00
cost
Unloading labor cost 5@100 500.00
Total cost for 100 bags 93400.00
Total cost for 1 bags 934.00

Metals (20mm Aggregate)


Metal 1 cube + transport 7000 7000.00
Wastages 1%@7000 70.00
Total cost for (2.83 m3) 7070.00
1 cube 2498.23

CE/15/07/12 23
MTE

Sand
Sand 1 cube 7000 7000.00
Transport cost 2000 2000
Wastages 1%@7000 70.00
Total cost for 1 cube (2.83 m3) 9070.00
Total cost for 1 m3 3204.95
Bricks
Rate for 1000 bricks
Cost per brick 10x1000 10000.00
Unload 2 unskilled 1300x2 2600.00
labor
Wastages 2% of 2% @10000 200.00
material cost
Cost for distributing and 1.5% @ 10000 150.00
handling 1.5% of
material cost
Total cost for 1000 12950.00
bricks
Cost per brick 12950/1000 12.95

All in labor rate


Cost for casual unskilled labor (temporary)
Daily wage 1300 1300.00
OT (1300/8 x 1.25)2 406.25
Refreshment 150 150.00
Total cost per day 1856.25
Per hours 1725/8 185.625

CE/15/07/12 24
MTE

Labor permanent (mason)


Monthly salary=40000.00
EPF=12% ETF= 03%
Annual holiday 14 days
OT hrs. (10hrs/week)
OT rate 1.25 of normal rate
Working days 26
Refreshment 100.00
Bonus annually max. 1 month/year
Annual increment 5% of salary
Payment for 1 year period
All in rate for mason
Monthly salary 40000 x 12 480000.00
EPF 12% @ 480000 57600.00
ETF 3% @ 480000 14400.00
OT Amount 10x52x(40000/26x8) x1.25 125000.00
Holidays (40000/26) x14 21538.46
Refreshment 100x26x12 31200.00
Annual increment 40000x (5/100) =2000 14000.00
due date 5th of
2000x7
June.
Bonus 40000 40000.00
1month/year
Total cost for 783738.46
year
Per hrs. (783738.46)/(26x10x12) 313.99

CE/15/07/12 25
MTE

Plant all in rate


On hiring concrete mixture 10/7
Hiring charge = 4500.00
Transport/visit = 500.00
Fuel cost 5l/day @117.00 = 585.00
Allow for minor repair per week = 1000.00
Delaying cost/ day = 2 hrs.
Hire charge 5 days @ 4500 22500.00
Transport 2 times ×500 1000.00
Fuel 5 days @ 585 2925.00
Minor repair work 1000 1000.00
Delaying cost (4500/8) ×2×5 5625.00
Total cost per week 33050.00
Total cost per day 33050/5 6610.00
Cost per hour (33050/8×5) 826.25

2.E.1. 1:2:4 (20) reinforcement concrete in 225x225 mm beam are first floor level.
Mixing 𝟑𝒎𝟑 of concrete
Material
Cement 19.10@ 934 17839.40
Sand 1.50@ 1598.94 2398.41
Metal (20mm) 2.65@ 2498.23 6620.31
Total cost for material 26858.12
Labor cost

Skilled 1.10@ 2000 2200.00


Un-skilled 6.40@ 1300 8320.00
Total cost for labor 10520.00
Plant cost
Concrete Mix 10/7 0.34 @6610 2247.40
Tools 3% of labor cost 3%@ 10520 315.60
Total cost for plant 2563.00

CE/15/07/12 26
MTE

Total cost for mixing 39941.12


(3m3)
Unit rate for mixing 13313.70
(1m3)

Placing 225x225 RCC beam at first floor level including curing for 1.25𝒎𝟑
Material cost
Jute hessian 5.6m² @150 840.00
Mixed concrete 1.5@13313.70 19970.55
Total cost for material 20810.55
Labor cost
Skilled 3.2@2000 6400.00
Unskilled 4.25@1300 5525.00
Total labor cost 11925.00
Plant cost
Vibrator 1 day @1000 1000.00
Tools 3% of labor cost 3% @11925 357.75
Total cost for plants 1357.75
Total cost (1.25𝒎𝟑 ) of concrete 34093.30
Unit rate for (1𝒎𝟑 ) of concrete 27274.64

2.F.2. 100mm thick brick wall in cement mortar 1:5 laid in stretcher bond with
200x100x60 mm size of brick in ground floor.
Brick thickness 200x100x60
Total bricks for 10m2 (with plaster) = 10/0.21x0.7
= 68.027 = so, 681 bricks
Volume of wet mortar = 10m2x0.1m-(0.2x0.1x0.06)
= 0.184m3
Volume of dry water (33 ½%)= 0.184x1.33
=0.245m3
Wastage (10%)= 0.245x1.1

CE/15/07/12 27
MTE

= 0.2695m3
Quantity of cement and sand for motor
Cement= (0.2695/6) x1x (1440/50)
= 1.294Bags
Sand= (0.2695/6) x 5
=0.2245m3
Material cost
Cement (50Kg) 1.294@ 934 1208.60
Sand 0.2245@ 1598.94 358.96
Brick 681@ 12.95 8818.95
Total cost for 10386.51
material
Labor cost
Skilled 1.6@ 2000 3200.00
Unskilled 2.15@ 1300 2795.00
Total cost for labor 5995.00
Plant cost
Scaffolding 5%@ 5995 299.75
Tools 3%@ 5995 179.85
Total cost for plant 479.60

Total cost for 10m2 (10373.56+5995+479.6) 16861.11


Unit rate 1686.11

2.F.6. 16mm diameter mild steel bar reinforcement in beams.


Mild steel=150000 per ton
150000/1000) x50=7500 (Kg)
Binding wires=150 (1Kg)

CE/15/07/12 28
MTE

Material cost
Mild steel 1.15@ 7500 8625.00
reinforcement(50Kg)
Binding wire (1 Kg) 0.7@ 150 105.00
Spacers of chair 1.5% of 8625x 130.95
reinforcement cost (1.5/100)
Total cost for material 8860.95
Labor cost
Special skilled 1@2000 2000.00
Unskilled 1@1300 1300.00
Total cost for labor 3300.00
Total cost for 50 Kg 12160.95
reinforcement
1 ton of reinforcement (12160.95/50) 243219.00
x1000

2.M.1. 12mm thick rendering with (1:3) cement, sand mortar finished smooth.
Material cost
Cement (50Kg) 0.15@ 934 140.10
Sand 0.15@ 1598.94 239.84
Total cost for material 379.94

Labor cost
Skilled 1.08@ 2000 2160.00
Unskilled 1.61@ 1300 2093.00
Total cost for labor 4253.00
Plant cost
Tools of labor cost 3%@ 4253 127.59

CE/15/07/12 29
MTE

Total cost for plant 127.59


Total cost for 10m2 4760.53
Unit rate 476.05

Item Description Qty Unit Rate (Rs.) Amount


(Rs.)
3
2.E.1 1:2:4 (20) reinforced concrete in 10 𝑚 27274.64 272746.40
225x225 mm beam at first floor level
2.F.2 100mm thick brick wall in cement 120 𝑚3 1686.11 202333.20
mortar 1:5 laid in stretcher bond with
200x100x60mm size of bricks in ground
floor
2.F.6 16mm diameter mild steel bar 1.45 t 243219.00 352667.55
reinforcement in beams
2.M.1 12mm thick rendering with (1:3) 150 𝑚2 476.05 71407.50
cement: sand mortar finished smooth

TASK 03
3.1. Demonstrate how the bill of quantities format may be used to
build up estimates

A tender document produced by a Designer at the design stage (tender stage)


which translates relevant information on construction drawings into bill of quantities
(BOQ) that fully describes the quality and quantities of work to be carried out by a
Contractor or Principal Contractor during the construction stage. It is basically a list of
work items with brief detailed descriptions and firm quantities for different elements of
work to be carried out.
A bill of quantities follows the sections laid out within the SMM7, which are:

Preliminaries, waterproofing, disposal systems, demolition works, linings, piped


supplies, groundwork, windows/doors/stairs, mechanical, concrete, surface finishes,
ventilation, masonry, furniture, electrical, structural, sundries, communications, cladding,
external works, transport.
Brief guideline of the Bill of Quantity documents is give in the NRM documents.
Vol. 1 – NRM 1: Order of cost estimating and cost planning for capital building works

Vol. 2 – NRM 2: Detailed measurement for building works

CE/15/07/12 30
MTE

Vol. 3 – NRM 3: Order of cost estimating and cost planning for building maintenance
works.

The main purposes of a BOQ are:


 To provide the same information to all tendering Contractors or Principal
Contractors, that enables them all to prepare their tenders efficiently and
accurately based on the same information
 When a contract has been entered into, to:
o Provide a basis for the valuation of completed work for the purpose of
making interim payments to the Contractor or Principal Contractor
o Provide a basis for the valuation of variation work
BOQ Format:
The most common format for a BOQ is an elemental bill. Elements of measured
works are arranged into sequence that is clear and easy to understand and price for a
fixed price contract (lump sum). The BOQ can be abstracted easily and quickly with
measurement and descriptions already grouped in the elemental format. Under each
element, the order of works generally follows construction sequence e.g. site
preparation works, drainage works, earthworks, formation layer works, base layer
works, surface layer works, and landscaping works.
Main factors of preparing BOQ unit rate:
 Labor cost
 Material cost
 Plant cost
We are measuring the quantity of these factors in BSR.
Benefits of Bill of Quantity format:
Bill of quantity format is beneficial for a number of reasons:
 It saves the cost and time of several Contractors or Principal Contractors
measuring the same design in order to calculate their bids for competition
 It provides a consistent basis for obtaining competitive bids
 It allows the Client to compare different returned bids using a standard
measurement, before taking into account quality considerations
 It provides an extensive and clear statement of the work to be completed

CE/15/07/12 31
MTE

 It provides a very strong basis for budgetary control and accurate cost reporting
of the contract (i.e. post contract cost control), including:
o Preparation of cash flow forecasts
o A basis for valuation of variations or changes to the works
o A basis for the preparation of interim payments
 When priced, it provides a useful source of cost data, which can be used to
support claims for grants and for estimating the cost of similar future path
construction projects in cost estimating works e.g. approximate estimating and
setting costs for budgeting purposes

3.2. Determine the critical factors that affect profit margin in a new
junior school for 300 students

When work is rare and turnover falls, contractors look for ways to reduce tender
profits. The invitation is to reduce the amount for overheads at a time when they are
rising in proportion to turnover.
The profit figure is an arrangement of discounts and additional profit required by
management. In a competitive market all discounts are taken out before a small profit
margin is added, to help in winning the work. Profit is a flow concept and the profit
margin measures the flow of profits over some period compared with the costs, or sales
incurred over the same period. One could compute the profit margin on costs, or the
profit margin on sales.
The critical factors that affecting profit margin in a new junior school for 300 students:
 Time
 Supply cost
 Financing
 Unexpected problem
Time
Because a construction company’s bid for a project takes into consideration all
cost factors, time is a crucial element to maximizing the profit margin. A construction
company doesn’t charge per hour. It charges a price for the whole project, and that
price is determined by estimating how long it will take, how much supplies cost, how
much labor is involved and so forth. When the time to complete the project far exceeds
the estimated time, the profit margin for the project falls drastically.
For example, consider a project that a company estimates will take two months to
complete. If the project takes four months, the company is essentially working for free
for half of the project.

CE/15/07/12 32
MTE

Supply Costs
Supplies needed to complete a project do not come with consistent price tags. The
cost of supplies changes often, much like the cost of gasoline will rise and fall numerous
times in a month. If a construction company purchases all its supplies at the same time,
it won’t be affected by rising prices. But if it purchases supplies as the project
progresses, it may be saddled with extra costs that weren’t figured into the bid, leading
to a thinning profit margin. Of course, that works both ways. The cost of supplies may
drop at any given time, leading to a larger profit margin.

Financing
If a construction company cannot fund a project with its own assets and must borrow
from a bank, it risks higher than expected interest rates. Suppose a bid for a project is
100 million. The money isn’t paid to the construction company immediately, so the
company must either use its own assets or obtain financing. If the construction company
is banking on a 5 percent profit margin, but borrows money with an interest rate that’s 1
percent higher than expected – or must borrow more money than initially expected – the
profit margin for the project can plummet.
Unexpected Problems
Problems that arise unexpectedly can cause confusion with a construction
company’s profit margin.
Such problems include damaged materials due to a natural disaster and unexpected
foundation problems that require drastic corrections.
Most of these problems are difficult or impossible to predict.
There are, nevertheless, some important issues which must be considered before a
tender can be completed.
1. The desire to gain the contract or to increase turnover
2. Whether the project will contain contractor’s finance, cash flow calculations will
show the net finance needed or benefit available.
3. The effect of winning the contract on the present workload
4. Knowledge of the client and his consultants, the attitude and competence of
other parties can have an impact on the smooth running of a project.
5. The local market conditions, consider the strength of competition for the type of
construction in the area.

CE/15/07/12 33
MTE

6. Knowledge is gained of profit margins by an examination of results from previous


tenders.
7. There is a theory that contractors may be influenced by the client’s budget.
Re-examine the suppliers’ and sub-contractors’ quotations for any evidence that lower
prices may be available after the main contract is awarded. Consider different profit
margins for direct work and that for which sub-contractors will be responsible.
Finally, once the overheads and profit are settled, the amounts can be put on the
summary form.
All that remains is to add day work and undefined provisional sums to arrive at the
overall total, and where applicable add professional fees to produce the tender figure.

(smallbusiness, 2015)

3.3. Demonstrate how the health, safety and welfare plan affects the
tender

Health and Safety is high on the program of construction organizations. Estimators


must understand the implications of current legislation for design and procurement stages
and include sufficient costs to carry out the work safety.
First steps before tendering
From the initial inception of the project it is vital that the client develops and
distributes a clear policy for safeguarding the health and safety of the workers on the
construction project. The policy should be widely publicized so that those on the
demand side (procuring officers) and on the supply side (potential tenderers) fully
understand the client’s priorities.
And market analysis may be required. It should cover the OHS regulatory
framework, the capacity of the main OHS (Occupational Health and Safety) agency and
a baseline study of common OHS practices on the ground.
For example, “Construction of a public school with special regard to health and
safety”. In this way, OHS becomes of part of the core objectives of the project.
Tender documents
The client’s objectives for health and safety should be explained in the invitation to
tender, with specific requirements set out in detail in the Terms of Reference and
explained verbally at pre-tender meetings. If failure to convince the client of their

CE/15/07/12 34
MTE

capacity to meet these requirements is to be considered as reason to reject a tender,


this also should be clearly stated in the Terms of Reference.

Clients may require contractors to submit with their tenders:


 A site specific health and safety plan (including, where appropriate, a fall
protection plan)
 An outline of the procedures to be adopted to ensure that health and safety
requirements are met, not only by the main contractor but also by subcontractors
 A system and format for recording and reporting accidents, incidents and near
misses
So that there is no misunderstanding of what is required (and to ease the process of
checking that the contractor has made adequate provision for OHS) items that are
necessary to meet the client’s requirements and which can be separately priced should
be listed as a prime cost item in the bill of quantities, provisional sum, or in whatever
other pricing mechanism is used. Contractors are required to put a price against each of
these items.
The kind of items that could be separately priced include:
 The preparation and updating of a site specific health and safety plan including a
supervision and reporting scheme (to include subcontractors)
 Provision of temporary protective works (scaffolds, hoardings)
 Hiring of a qualified safety officer
 Provision of safety training to workers and supervisors
 Time to attend meetings of the OHS safety committee
 Provision of welfare facilities (water, food, housing)
 Provision of personnel protective equipment
 Medical examinations, first aid and emergency facilities
It is also possible (and may be considered preferable) to take the cost of meeting
the client’s OHS requirements out of competition by pre-pricing the above items. This
was the approach adopted in Hong Kong in 1996 under the ‘Pay for Safety’ scheme.
The maximum payment for all safety items was set at approximately 2% of the
estimated value of the contract on small projects and 1% on large projects. Items that
are not delivered are not paid for.
Although the price paid for safety measures may seem high to some clients, in the
longer term it should be off-set by lower tender prices as contractors experience savings
associated with better OHS. The main sources of savings are reduced insurance
premiums, less disruption to work schedules and higher labor productivity as workers

CE/15/07/12 35
MTE

feel more secure. Benefits accruing to the financiers include lower credit risk, less
likelihood of work stoppage and diminished risk to their reputation.
World Bank rules require the contract to be offered to the ‘lowest evaluated tender’.
But if the contractor’s provision for OHS fails to meet the client’s requirements, the
tender could be rejected as invalid/non-conforming. This is likely to be more readily
accepted if health and safety is included in the objectives of the project.
(engineersagainstpoverty, 2015)

3.4. Calculate the preliminaries using the following data


Calculation of preliminaries
Water for work of junior school project
Pipe bone water pricing
I. cost of water connection by water board
II. cost of labor and material for laying pipes
III. cost of temporary storage
IV. cost of disconnection, removal of pipe and making good defect
V. overhead and profit

Calculation for the amount


 Cost for average consumption of water per month
Quantity of water for work for 20 months
Work item Consumption Total quantity Total
quantity of
water(l)
Concrete work 480 l/m³ 20 m³ 9600
Block work 17500 l/m³ 50 m³ 17500
Rendering 2250 l/m³ 75 m³ 2250
Workman hut 6000 l/week 120 weeks 6000
Site accommodation 72000 l/week 120 weeks 72000
Total consumption for 20 months 107350
Consumption for 1 month 107350/20 5367.5
Consumption in unit 5367.5/1000 5.3675

Monthly charge for water 5.3675 @74.00 397.2 RS.

Monthly service charge 5000.00 RS.

CE/15/07/12 36
MTE

Total charge for 1 month Rs.5397.2

Pipe borne water for site for period of 20 months


I. cost of water connection by water board = Rs.35000

II. cost of labor and material for laying pipes = 55115.70


Material cost

½ inch pipe 200m @ 120 24000.00

1 inch pipe 50m @ 180 9000.00

Elbows 45 @ 25 1000.00

Taps 10 @ 250 2500.00

Other materials 4000.00

Total material cost 40500.00

Labor cost

Skilled 4.3 days @ 2000 8600.00

Un-skilled 4.3 days @ 1300 5590.00

Total labor cost 14190.00

Plant cost

Tools 3% of labor cost 3% @ 14190 425.70

Total plant cost 425.70

Total cost 55115.70

CE/15/07/12 37
MTE

III. cost of temporary storage = 2000.00

water consumption for one month 5367.5 liters.


So, for day = 5367.5/30 = 178.90 liters.
Rate of 150-liter water tank = 20000 RS.

IV. cost of disconnection, removal of pipe and making good defect = 3656.50

Labor cost

Skilled 0.8 days @ 2000 1600.00

Un-skilled 1.5 days @ 1300 1950.00

Total labor cost 3550.00

Plant cost

Tools 3% of labor cost 3% @ 3550 106.50

Total plant cost 106.50

Total cost 3656.50

V. Overhead = 15 % of total cost


VI. Profit = 20 % of total cost

Preliminary calculation

No Description Initial cost Recurrent End cost Total cost


(Rs.) Cost (Rs.) (Rs.) (Rs.)
1 Water connection cost 35000
2 Cost for labor and 55115.70
material for laying pipes
3 Cost of temporary 2000
storage
4 Cost of disconnection 3656.50
5 Monthly bill for water 5367.5x20
supply
Total cost 92115.70 107350 3656.50 203122.20
Over head 15 % of total cost 30468.33
Profit 20% of total cost 40624.44
Total preliminary cost 274214.97

CE/15/07/12 38
MTE

water for work


Item Description Quantity Unit Rate Amount
1.0 Preliminaries

1.1 Allow for provision of


water for the works
including drinking
water, paying all
charges and other
expenses in
connection with
supply from water
mains or any other
alternative method of
1 Item 203122.20
water supply, storage
and distribution. It is
the sole responsibility
of the contractor to
ensure steady,
uninterrupted
adequate supply of
water required for
main contract and
nominated sub
contract work

Over head 15 % of total


30468.33
cost
Profit 20% of total
40624.44
cost
Total preliminary
274214.97
cost

CE/15/07/12 39
MTE

TASK 04
4.1. Compare the stages of open and selective tendering

The main stages of tendering:


Stage 1 - Identify the contract opportunity
Stage 2 – Assemble your team
Stage 3 - Analyze the competition
Stage 4 - Set up the response
Stage 5 - Write the document
Stage 6 – Presentation
Stage 7 – Negotiation
Stage 8 - Contract management

Open tendering

Open tendering is the main tendering procedures employed by both the government and
private sector. The client advertises the tender offer in the local newspaper giving detail and
key information of the proposed works and inviting interested contractor to tender. In the
legal sense such tender notices constitute invitation to treat, a mere request by the
employer for suitable contractor to submit their bids or offers.
If the pre-requisite to tendering on the form of possession of the necessary registration
has been identified in the tender notice, then the advertisement is directed to only that
particular class of the public having the said qualifications. In order to reduce number of
enquiries, earnest money is deposited (for private project). Until the receipt of a bone fide
tender selected then it will be returned. Although price is very important in the decision on
which tender or bid to accept, it is not the only factor taken into account. Client does not
bind to accept the lowest or any offer. The advantages and disadvantages of open tender
are stated below:

Advantages of open tendering

 No favourism (everyone can apply for the tender)


 High competition in pricing (client will take good prize)
 New firms can enter into the market
 Increased employment opportunities (new firms comes)

CE/15/07/12 40
MTE

 New experience (new technology)


 Helps contractors to grow
 Contractors get new client
Disadvantages of open tendering
 Selected contractor might not suit the project (ex: no experience)
 Inexperienced firms can enter into the market
 Unknown firms can enter into the markets
 Waste of estimating time
 High aggregate cost for tender (ex: electricity, transport)
 High evaluation time (because we have to check all the documents)
 Unrealistic competition
 Arbitrations

Selective tendering
A process of competitive tendering for award of the contract for construction whereby
the owner selects the constructors who are invited to tender to the exclusion of others,
as in the process of open tendering. It means the client selects the contractor from
limited list & invitation to tender is made by client to the contractor by a letter.
In selective tendering short listing stages can be done by,
 Invitation
 ICTAD category
 Prequalification (financial)
 Post qualification
 Negotiation
In selective tendering there can be two stages,
 One stage selective tendering
 Two stage selective tendering
One stage selective tendering
Client advertise for contractor to apply for short listing
Short list the contractors who are considered suitable to do the work & approved list is
maintained by the client. (Competition)
Two stage selective tendering
Single stage for competition, double stage for competition plus early start of work at site.
Contractor's experience/ practical knowledge is useful at the design stage

CE/15/07/12 41
MTE

First stage
 Inviting for tender
 Inform about 2 stage tender
 Pre select the contractor (a simple BOQ)
 Contractors give proposal for the design
Second stage
Negotiate the rates with the contractor for 2nd time
Advantages of Selective tender
 Well known contractor
 Good quality
 Less aggregate cost for tender
 Less evaluation time
Disadvantages of Selective tender
 Favourism
 Less price competition
 Cartel tendering
 New firms cannot enter in to the market
 Regular updating is necessary
(ukessays, 2016)

4.2. Analyses the factors that are used to create “select lists” of
contractors

Main factors used to create “select list” of contractors:


 Cost
 Grade of the contractor company
 Specialized construction related experience
 Overall experience
 Ongoing project and deadlines
 Owned assets (plants & mechanism)

CE/15/07/12 42
MTE

Cost
The contractors are selected by the client by the tendering process. Each contractor is
allowed to apply for a tender. And they are selected by approximate amount which
applied for the project. The contractor’s approach to cost control and value-engineering.
Grade of the contractor company
The contractor is selected by their grades (C1, C2, …...C8). the contractor should
have certain grade proposed in the contractor document. Otherwise they won’t be
allowed to undertake the project.
Specialized construction related experience
The client will consider contractor’s experience about this particular project. The
contractor’s experience working with nonprofit agencies, public financing or relevant
projects.
And also, client will consider the contractor’s past experience, owned assets details and
blacklists.
Multi Criteria Assessment factors
Most of the time, selection of contractor is challenging. Therefore, multi-cultural
assessment aspect considers costs as well as other necessary characteristic including
time, proficiencies, management safety liability and adequacy of contractors. The key
concept of multi-critical assessment aspect is focusing on the idea that selection
procedure concentrates on several attributes and the highest bidder has all the
necessary attributes. Total attribute scores are converted in values; in turn values
provide bidding value. This factor has a system for selection process capable of
forecasting likely performance of the contractor. In this case, it considers significant
components which can affect performance of the project including contractors chart,
resources and type of project among others.
Other factors are also considering:
 The contractor’s bonding capacity and insurance coverage. What, if any, set
procedures the contractor has for solving design problems.
 The contractor’s approach to the construction of the building.
 The contractor’s approach to employment inquiries on site.
 The contractor’s experience in getting local approvals
 The level and type of involvement one can expect from the contractor and key
personnel (site supervisor, project superintendent, etc.)

CE/15/07/12 43
MTE

4.3. Evaluate the different forms of contract used in the construction


process

Forms of contract
Clients have a wide choice of standard contracts for construction work, in particular
the forms used for building, which cover most of the common procurement systems.
Available form of contracts
 RIBA Building Contracts
 JCT contracts
 ICTAD contract
 ICC contracts
 NEC contract
 FIDIC and many others.

Standard forms of contract in common use for construction.


JCT (The Joint Contracts Tribunal)
 DB: Design and build contract.
 CD: Standard form with contractor’s design.
 CE: Constructing excellence contract.
 CM: Construction management contract.
 IFC: Intermediate form of building contract.
 MC: Management contract.
 MTC: Measured term contract.
 MW: Agreement for minor work.
 PCC: Prime cost building contract.
 MP: Major project construction contract.
 RM: Repair and maintenance contract (commercial).
 SBC: Standard form of building contract.
FIDIC (Fédération Internationale des Ingénieurs-Conseils).( The International
Federation of Consulting Engineers)
FIDIC's core suite of contracts includes:
 Conditions of Contract for Construction. The Red Book.
 Conditions of Contract for Plant & Design-Build. The Yellow Book.
 Conditions of Contract for EPC Turnkey Projects. The Silver Book.
 The Short Form of Contract. The Green Book.

CE/15/07/12 44
MTE

NEC (The New Engineering Contract): Engineering and Construction Contract).


 Option A: Priced contract with activity schedule.
 Option B: Priced contract with bill of quantities.
 Option C: Target contract with activity schedule.
 Option D: Target contract with bill of quantities.
 Option E: Cost reimbursable contract.
 Option F: Management contract.
 Option G: Term contract.
(designingbuildings, 2016)
ICTAD STANDARD BIDDING DOCUMENTS FOR PROCUREMENT OF WORKS
STANDARD BIDDING
DOCUMENT PROCUREMENT OF WORKS FOR MINOR CONTRACTS-
ICTAD/SBD/03
 Recommend For use formworks contracts up to PRs l0million.
STANDARD BIDDING DOCUMENT FOR PROCUREMENTOFWORKS -
ICTAD/SBDj01
 Recommended for use on works contracts between PRs.10 million and PRs.100
million.
 May be used for works of higher values, which are not of a complex nature
STANDARD BIDDING DOCUMENTPROCUREMENTOFWORKS FOR MAJOR
CONTRACTS -ICTAD/SBD/02
 Recommended for use on works contracts over PRs.100million and for contracts
of a lesser value, which are of a complex nature.
STANDARD BIDDING DOCUMENT PROCUREMENTOFWORKS FOR DESIGN AND
BUILD CONTRACTS- ICTAD/SBD/04

 Recommended to use for works contracts where the contractor is responsible for
the design and construction of the works on specified approvals obtained from
the Employer.
STANDARD BIDDING DOCUMENTPROCUREMENTOFWORKS FOR
SHOPPINGPROCEDURE- ICTAD/SBD/06 (Under Preparation)
 Recommended for use on works contracts not exceeding PRs. 5 million when
shopping procedure is used.
STANDARDBIDDINGDOCUMENTPROCUREMENTOFWORKS FOR
CONSTRUCTION RELATED PLANT- ICTAD/SBD/07 (Under Preparation)

CE/15/07/12 45
MTE

 Recommended to use when procuring construction related plant such as central


air-condition systems, elevators, large generators etc. where substantial
installation is involved.
(Wickramathilaka1981, 2007)
In Sri Lanka, commonly used form of contract is ICTAD. And we are going to
follow these forms of contract for this school project.

Advantages of form of contract


The most important thing is no need to drafting and no need to worry about uncertain
terms in the contract. Standard form also spread risk equally to the employer and a
contractor.
Disadvantages of form contract
There can be problems with the language that is used in these standard form clauses
and offerors need to be careful and be clear in what they write. For example, 'shall' and
'may' are two very different terms in law and it is important that the language is concise
in a standard form contract as it is legally binding. Standard form contracts can also
begin to favor one party, which can be a disadvantage if you are the one trying to
accept the offer. In many other forms of contracts, you are able to negotiate the terms,
making them more favorable but in standard form contracts, that is not the case.

CE/15/07/12 46
MTE

References
academia, 2016. academia. [Online]
Available at:
https://www.academia.edu/11786881/Task1_a_LO_1_1.1_Explain_the_clients_involve
ment_in_the_tender_process?auto=download
[Accessed 27 11 2016].
designingbuildings, 2016. designingbuildings. [Online]
Available at:
https://www.designingbuildings.co.uk/wiki/Traditional_contract_for_construction
[Accessed 26 11 2016].
designingbuildings, 2016. designingbuildings. [Online]
Available at:
https://www.designingbuildings.co.uk/wiki/Construction_contract#FIDIC_.28F.C3.A9d.C
3.A9ration_Internationale_des_Ing.C3.A9nieurs-Conseils.29.
[Accessed 12 12 2016].
engineersagainstpoverty, 2015. engineersagainstpoverty. [Online]
Available at:
http://www.engineersagainstpoverty.org/documentdownload.axd?documentresourceid=
20
[Accessed 1 12 2016].
etaleem, 2016. etaleem. [Online]
Available at: http://etaleem.net/5177/2014-notice-inviting-tenders-in-capital-
development-authority-cda-construction-of-citizen-facilitation-center.html
[Accessed 27 11 2016].
orphansclub, 2015. orphansclub. [Online]
Available at: http://orphansclub.org/2011/06/20/bills-of-quantities-for-the-house-project/
[Accessed 27 11 2016].
Oyedele, O., 2015. researchgate. [Online]
Available at:
https://www.researchgate.net/publication/281620496_Evaluation_of_Factors_Affecting_
Construction_Cost_Estimation_Methods_in_Nigeria
[Accessed 27 11 2016].
pearson, 2010. Measuring, Estimating. [Online]
Available at: https://qualifications.pearson.com/content/dam/pdf/BTEC-
Nationals/Construction-and-the-Built-
Environment/2010/Specification/Unit_9_Measuring_Estimating_and_Tendering_Proces
ses_in_Construction_and_the_Built_Environment.pdf
[Accessed 2016 11 26].

CE/15/07/12 47
MTE

premierschoolofbuilding, 2015. premierschoolofbuilding. [Online]


Available at: http://www.premierschoolofbuilding.com/estimating-and-tendering-course/
[Accessed 26 11 2016].
rib-software, 2016. rib-software. [Online]
Available at: http://www.rib-software.com/en/main/about-rib/rib-magazine-
transparent/transparent-37/mefisto-project.html
[Accessed 26 11 2016].
sampletemplates, 2011. sampletemplates. [Online]
Available at: https://www.sampletemplates.com/business-templates/tender-document-
template.html
[Accessed 26 11 2016].
smallbusiness, 2015. smallbusiness. [Online]
Available at: http://smallbusiness.chron.com/factors-affect-percentage-profit-margins-
construction-35114.html
[Accessed 29 11 2016].
ukessays, 2016. ukessays. [Online]
Available at:
https://www.ukessays.com/search.php?q=tender+documents&sa=#gsc.tab=0&gsc.q=te
nder%20documents&gsc.page=1
[Accessed 06 12 2016].
Wickramathilaka1981, 2007. Institute for Construction Training. [Online]
Available at: https://www.scribd.com/doc/77998364/ICTAD-Procurement-of-Work-
ICTAD-SBD-01-2007
[Accessed 12 12 2016].
zemaitis, 2016. zemaitis. [Online]
Available at: http://www.zemaitis-uk.com/tender-procurement-process/
[Accessed 26 11 2016].

CE/15/07/12 48

Você também pode gostar