What is the Taking Off Process_ ConstructionChat
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5/3/2015 Whatisthetakingoffprocess?ConstructionChat
http://www.constructionchat.co.uk/articles/takingoffprocess/ 1/10
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ConstructionChat/Articles/Whatisthetakingoffprocess?
Whatisthetakingoffprocess?Thequantitysurveyingprofessionhasbeenongoingformanyyears:TheearliestquantitysurveyingpracticeonrecordisaReadingfirm,(HenryCooperandSons),whichwasoperatingin1785(Seeley&Winfield,1999).Predominantly,quantitysurveyorsdealwiththecostsandcontractsofaconstructionproject.
Therearearound75,000professionalquantitysurveyorsworkingintheUKalone(RICS,2010).TheRoyalInstitutionofCharteredSurveyors(RICS)wassetupin1881,andisanindependentprofessionalbodywhichregulatespropertyprofessionalsandsurveyorsintheUKandworldwide.TheRICSprovideeducationandtrainingstandardstoallmembersandprotectsconsumerswithstrictcodesofpractice.ThemottooftheRICSisEstmodusinrebus(whichtranslatesintoEnglishas:Thereismeasureinallthings).TheRICSisrepresentedinover146countriesandhasmorethan159,000members.
BillofQuantities
TheBillofQuantitiesisadocumentwhichisusedforthetenderingprocessinaconstructionproject,inwhichmaterials,parts,andlabourareitemized.Italsodetailsthetermsandconditionsofthe
5/3/2015 Whatisthetakingoffprocess?ConstructionChat
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constructioncontractanditemisesalltheworkforasubcontractortoprice.
TheBillofQuantitiesispreparedbyaquantitysurveyor.Thepreparationdividesitselfintotwodistinctstages,thefirstbeingthe
TheessaywilllookintotheTakingOffprocessrepresentedinaBillofQuantitiesandalsolookintowheretheTakingOffprocesscanbeused.IwillstartbylookingintowhatTakingOffactuallyis.measurementofdimensions,andthecompilationofdescriptionsfromthedrawingandspecification.ThisisknownasTakingOffwhichisthetopicthatIwilldiscussinthissectionoftheessay.
ThesecondstageisthepreparationoftheBillthisinvolvescalculationsofvolumesandareas(squaringthedimensions),followedbyenteringthedescriptionsandthedimensiononanabstract(abstracting)andfinallycollecttheitemstogetherandpresenttheminabillorder(billing)(Lee&Trench&Willis,2005).
TheTakingOffProcess
TheTakingOfflistisaprocessofanalysingtechnicaldrawingsandspecificationstoidentifyelements.Listsshouldincludeeverybuildingelementfromthesmallesttothelargestcomponent.Thedevelopmentofcomputerisedmeasurementandbillingsystemshavemadethetraditionalmethodlesscommonnowadayshowever,itisstillusedinpractice(Lee&Trench&Willis,2005).
TheTakingOfflistissymbioticwithRICSNewRulesofMeasurement.TheRICSNewRulesofMeasurementThisdocumentprovidesfundamentalguidanceonthequantificationofbuildingworksforthepurposeofpreparingcostestimatesandcostplans(www.rics.org/uk).TheRICSNewRulesofMeasurementisacodebookwhichdetailsthespecificationandalsomethodofhoweachitemintheconstructionindustryistobemeasured.Itcoversabsolutelyallphasesofaproposedbuildingproject.Thepresentationoftheinformationisdoneinclassificationtableswhichprovideinformationonthegivenitemtobetakenoff.TheuseoftheRICSNewRulesofMeasurementmeansthatallconstructionprojectsaretakenoffinthesamestandardorderandensuresconsistencyacrosstheindustry.QuantitysurveyinghasbecomeincreasinglyinvolvedwithprojectFINANCING ,thustakingoffisavaluableprocesstounderstandwhenestablishingprojectfeasibility.FromagoodTakingOfflistaquantitysurveyorcanquantifydimensionsandlatercreateabillofquantities.(Seeley,1999)
Ifthedrawingsareunclear,thenaquantitysurveyorwillenteranyqueriesonaquerysheetforthearchitect.Atypicalquerysheethasthequantitysurveyorsquestionsononesideandthearchitectsanswersontheother.
5/3/2015 Whatisthetakingoffprocess?ConstructionChat
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WillissElementsofQuantitySurveying.ByS.Lee,W.Trench&A.Willis.
PreparationoftheBill
ThissectionwilldescribethesecondsectionoftheBillofQuantitieswhichisthepreparationofthebill.Thisisalsosometimesknownasworkingup.Thisissplitintothreesections.
1.Calculationofvolumes,areasetc.(Squaringanddimensions)Squaringthedimensionsand
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enteringtheresultinglengths,areas,andvolumesinthethird(orsquaring)columnofthedimensionpaper.
2.Enteringthedescriptionsandsquareddimensionsonanabstract(Abstracting)Transferringthesquareddimensionstotheabstract,wheretheyarewritteninarecognisedorder,readyforbillingunderthecorrectworkheading.
3.Collectingitemstogetherandpresentinginarecognisedbillorder(Billing)Theitemsofworkwhichmakeupthetotalbuildingarelistedintheappropriateworksectionheadingwhichgivesthedescriptionoftheitemandtherecognisedunitsofmeasurement,asperthelayoutinRICSNewRulesofMeasurement.Thebillalsocontainsanemptyrateandpricecolumn.TheclientgivestheBillofQuantitiestothecontractor,andthecontractorthencanaddshisrateandpricewhentenderingfortheproject.(Lee&Trench&Willis,2005)
Themostrecognisedpurposeofthebillisthatitcanbesenttocontractorswhomaywanttotenderfortheconstructioncontract,andenablesthemtobasetheirpriceonthesameinformation.Takingoffisveryimportantbecauseitprovidesanaccuratemeasurementoftheconstructionworkneededtobecarriedout.
Constructioncosts
TheTakingOffprocesscanbeveryusefulinestimatingtheconstructioncostsofaprojectbecauseasmentionedpreviouslythecontractorbasesthepricingoftheworkontheBillofQuantities.Thebilliscreatedbytheclientsquantitysurveyor,whoistraditionallyreferredtoasaProfessionalQuantitySurveyororPrivatePracticeQuantitysurveyor,andcompletedbythecontractorsquantitysurveyor.Partofthebillisthetakingoffprocesswhichneedstobeaccurate,sothecorrectpricingcantakeplace.TheBillofQuantitiesisusedtoassistthecontractorwhenpreparinganestimateforthetender.Thepricedbillthenbecomespartofthecontractdocuments,providingthebasisforthevaluationofthework.
TheTakingOfflistisaveryimportantpartoftheBillofQuantitiesbecauseitallowsthequantitysurveyortousethebillforthevaluationoftheworkcompleted,whichallowshimtoworkoutthestagepaymentsneededinagivencontract.Thecontractorsquantitysurveyorcanalsoworkoutthepriceforeachstagepaymentofaprojectforeachindividualsubcontractor.
Clientsperspective
Theclientsmainconcernistoseetheprojectcompletedontime,onbudget,andtotherequiredquality.However,theclientalsowantsbetterinformationontheprojectandthiscanbeprovidedbythetakingoffprocess.ThefinancialinformationintheBillsofQuantitycanbetranslatedintootherinformationsuchascashflows,periodicprojectaccounts,andcostvariations.Theinformationcanthenbeeasilycommunicatedtotheclienttokeephiminformedoftheprogressandfinancialstatusoftheproject(Rashid&Mustapa&Wahid,2006).
Consultantsperspective
Theconsultantrepresentstheclienthehastoensuretheclientgetsvalueformoney.Theconsultantconcentratesonmakingsuretheclientreceiveahighqualityproduct,abuildingwhichiscompletedontime,andmoreimportantly,withintheestimatedbudget.Thepricedbillbythecontractorprovidesusefulinformationtoaconsultantbecauseitidentifiesthetotalcostoftheprojectandalsothemarketconditions.Qualitativeandquantitative(includingfinancial)informationpresentedinthetakingoff
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processandthustheBillofQuantitiesprovidestheconsultancywithusefultenderevaluationandselectionofcontractorforagivenproject.Thepricedbillcanbetranslatedintoaworkprogramme,costplanandprojectcashflowandbudget.Thiscanhelptomakemoreeffectiveprojectsupervisionandcostcontrolling.Thebillalsoprovideseffectivelyashoppinglistofitemsrequired(Rashid&Mustapa&Wahid,2006).
Contractorsperspective
WhentenderingforaconstructionprojectthecontractorisgiventheBillofQuantitiesbytheclient.ThisincludestheTakingOfflist,whichisassociatedwithestimatingasittakesplacepriortotheconstructionprocess.Theestimatingdepartmentofthecontractorthencalculatesasaccuratelyaspossiblethecostsofthegivenconstructionproject.Theestimatorusescurrentpricinginformationfordifferentaspectsoftheproposedconstruction(Ashworth,2002).
TheTakingOfflistisofmostimportancetothecontractorwhenestimatingcosts,becauseitcanbeusedtocalculatethecostsforpreparationofthetender.ThebillisbasedontheTakingOfflist.Eachcompanyusesitsowntablesofstandardworkoutputsfordifferenttypesofconstructionoperationwork,whichtheyenterintotheunpricedbill.Whenthisiscompletedthebillcanbesaidtohavebeenpriced,andcanbesentbacktotheclient.TheTakingOfflistintheBillofQuantitiescanbeusedbythecontractorwhenpreparingpricingfornewprojectsasanestimateoftheconstructioncosts.Thisshouldbereviewedoftenwhenconstructionstarts(Ashworth,2002).
TheTakingOfflistisessentialinworkingoutthetargetcosts.Theestimatedcostsareadoptedasabasisoftheconstructionoperationscostsonsite.Thetargetorbudgetcoststrytorelatetotheactualtaskshappeningonsite.Inthebilltheestimatorusesanaverageoutputforthewholeofagivenitem.Thesecostsarethenanalysedseparately,dependingonthetypeorworkandthedifficultly.Thetargetcostsusetheaverageestimatorsrateasbasisbutwillvarythisinrelationtotheactualachievementexpected.Targetcostsareoftenslightlylowerthantheestimatedcostbecauseofacontractorsincentiveschemeandtheunforeseenriskwhichisinvolved(Ashworth,2002).
ThefinaltypeofcostistheactualcostpreviouslythebasisofworkingouttheestimatedcostsandtargetcostwastheTakingOfflistandthebillintheBillofQuantities.Theactualcostuserecordeddataonsite.Actuallabouroutputsfromthesitearecomparedwiththebudgetoutputs.Whencomparingtheestimatedcostsandactualcosts,thismayshowahugedifferencehowever,comparingtheactualandtargetcostsshouldshowonlyasmallamountofdifference(Ashworth,2002).
Subcontractors
ThemaincontractorcanusetheTakingOffprocesstoassistwiththeseparationoftheBillofQuantitiesintotradesectionsfordifferentsubcontractors.Theseparatedestimatedpricedsectionswillbesentofftoseveralsubcontractorsfortheirownpricing,andthensentbacktothemaincontractorforcomparison.Notjustthelowestpricewinstheworkthemaincontractorwilltakeintoaccountitemssuchaspreviousexperience,reputation,flexibility,time,qualityofworketc(Ashworth,2002).
Materials
Whenobtainingquotationsformaterialstobeusedonsite,theTakingOffprocesscanbeused.Thebillsaresenttosuppliersandtheysendbackapriceforthematerials.Commonmaterialsthatthecontractormayrequirecanbepurchasedthrougharegularlocalsupplier.Thepricingofthematerialcanbeaffectedbyanumberoffactorssuchasordersize,deliverycostsandexchangerates.TheBillofQuantitiesissplitintoorderedsectionsaccordingtoRICSNewRulesofMeasurement.Thisallowsthematerial
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orderingtobeeasilyidentifiedandcarriedout(Ashworth,2002).
Informationsenttothesupplierwillinclude:
1. Specificationofthematerial(whichisusuallyfoundinthepreambleoftheBillofQuantities).2. Quantityofthematerialrequired(whichisusuallyfoundinthebillsectionoftheBillof
Quantities.)3. Theaddressofthesite.4. Thedeliverydatesrequiredbythecontractor.Thisisveryimportanttoallowstoragespaceonsite,
storagecosts,extraspacefordeliveriesandaforemantobepresentwhenunloadingthematerials,ifrequired.
(Ashworth,2002)
Plant
TheTakingOffProcesscanbeveryusefulinaproposeddevelopmentprojectwhenobtainingquotationsforhire,lease,orpurchaseofplantandequipment.Thechoicebetweenrentingandpurchasingplantisnormallycalculatedfinanciallytoseeifitisviable.Thisisbasedupontheexpecteduseofthegivenplant.TheTakingOffprocesshastobecorrect,andthecorrectinformationhastobesent.
Labour
TheTakingOffprocesscanalsohelpwithforecastingthelabourcosts.Thesecostsareusuallycalculatedusinganallinlabourrate,includesthebasicrateandguaranteedbonusplusitemssuchasweather,sickpay,tradesupervisions,andextrapayments(forexampleskillorresponsibilityforrisk).
ThemostcommonmethodofestimatingthecostsoftheconstructionworkisunitratesthiscanbeusedtomeasuretheBillofQuantitiesbythecontractor.Suchitemsaslabour,materials,subcontractors,andplantcanallbemeasuredthisway.
BreakdownofMainParties
Belowisabreakdownofwhattheclient(representedbyaconsultancy)andacontractorofferinthetenderingprocess.
Providedbytheconsultants:
TheworktobeperformedThequalityandstandardsorworkrequiredThecontractualconditionstobeapplied
Providedbythecontractor:
ThecostofthefinishedworksTheconstructionprogramme
(Ashworth,2002)
OperationalWorkandProjectManagement
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NotonlyistheTakingOffprocessavaluablesourceofinformationinthetenderingprocessbutitcanalsobeusedthroughouttheoperationalworkofaconstructionproject.TheaccuracyandthewaytheTakingOfflistisdrawnupisveryimportantinthemanagementoftheproject.IfthesiteteamunderstandexactlywhattheTakingOffprocesssaysitcanleadtomoreeffectivemanagementoftheprojectandthegiventrades.Thelistofworkitemsandtheirquantitiesinthebill,givesthecontractoradetailedWorkBreakdownStructure(WBS)oftheproject.Thisisextremelyusefulinformationbecauseithelpsinprojectplanningandpreparationoftheworkplanandprogramme.Itcanbeusedtoorganiseactivitiesinalogicalsequencefordifferentsubcontractorsandcanbeusedtoestimatetheactivityduration.Theestimatedcostsinthebillarealsousefultomonitorandcontroltheprojectfinances(Rashid&Mustapa&Wahid,2006).
ProjectCostManagement,whichisabalancingofdemands,isanessentialpartofprojectmanagement.Garrison(1998)believedthatinformationisvitaltothesuccessoffinancialmanagement.Intheabsenceofadequate,accurate,andreliablecostinformation,aprojectcostmanagementexercisewouldbeineffective.ThisshowsthattheTakingOffprocessisveryimportant.TheTakingOffprocesscanalsohelpwiththeprojectdevelopmenthoweverthisalldependsonthetypesandemphasisoftheproject,egifthecostisthebiggestemphasisoftheprojectandthefundislimiteditisappropriatetousethebillbecauseitcontainshighlevelsofdetailofprojectcostitems.Thiscanthenbeusedfordetailedprojectaccountingandfinancialreporting(Rashid&Mustapa&Wahid,2006).
(Ashworth,2002)
TheabovediagramshowshowtheTakingOffprocesscanbeusedtohelpwithprojectrelatedcosts.AnestimatorestimatesthecostoftheworktobeperformedwhichisbasedonthebillintheBillofQuantities.Ifthecontractorissuccessfulinwinningthetenderthentheworkcanbeputintopractice.TheprojectcostscanbemonitoredbythesitemanagementteamwhichcanthenbecomparedtotheTakingOffprocess.Finallythecomparisonofthecostcanbesentbackasfeedback,whichcangiveinformationontheworkandthetimeexpendedonalltheoperations.Thiscanberecordedandusedthroughouttheproject(Rashid&Mustapa&Wahid,2006).
Law
TheTakingOffprocessispartofthecontractdocumentsinaconstructionproject.Thuswhensigningthecontractdocumentyouarewillingtoacceptthatitiscorrectandyouwillbeheld(liable)toeverythinginit.TherearemanystandardformcontractswhichcanbefollowedsuchastheJCT(Joint
5/3/2015 Whatisthetakingoffprocess?ConstructionChat
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ContractsTribunal)2005whichhasasectionfortheBillofQuantitiesandhasitslegalobligationsallsetout.(JCT,2010)
Conclusion
Asshown,theTakingOffprocesscanbeusedinmanyadministrationstagesofaproposeddevelopment/constructionproject.BecausetheBillofQuantitiesisacontractdocumentitisalsoveryusefulforthelegalsideofaproject.However,thebillisnotnecessarilyusefulineverytypeofprocurementmethod.IhavespokenabouttheTakingOffprocessinthetraditionalsensehowever,modernmethodsofprocurement,(forexamplefasttrackingprocurement,whichinvolvesdesign,documentationandconstruction)tendtoruninparallel,thusrequiringnoBillofQuantities.Howeverthecontractorstillmustprepareapropercostdocumentforthebidding.
Despitetheemergenceofnewgenreofprocurementsintheglobalconstructionindustry,theTakingOffprocessisstillviabletobeusedasakeycostdocument.(Rashid&Mustapa&Wahid,2006)
References
Seeley,I&Winfield,R1999,BuildingQuantitiesExplained,Edition5,PalgraveMacmillan,UK
Lee,Sandra&TrenchWilliam&WillisAndrew2005,WillisselementsofQuantitySurveying,Edition10,BlackwellPublishing,UK
Ashworth,A2002.Precontractstudies,developingeconomics,TenderingandEstimating,2ndEdition,BlackwellPublishing,UK
Websites
RICS2013,RICSUK,availableat
Journals
Rashid,R&Mustapa,MandWahid,S.(2006).BillsofQuantitiesAreTheyStillUsefulandRelevantToday?InternationalConferenceonConstructionIndustry.1(1),19.
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AsjathKhanSOTHANKS/.,/,/.ReplyLikeFollowPost21Aprilat23:03
KristianHammondOwner/DirectoratPriestleyandTaffsLtdThisisveryinteresting,however,Imustadmit,inallmyexperienceinconstructionasaQuantitySurveyor,CostManagerandnowOwnerIhaveneveractuallyhadtoprepare,norreceivedfromasubcontractoratakeoffinthisformat.Thisisanextremelytimeconsumingexercise,whichisdifficulttounderstandwithoutanytraining.Anaccuratetakeoffcanbepreparedinamuchmoresimplisticwayasanexpansionofascopeofworks.Ihavetoadmit,Ifindthismethodveryoutdated.ReplyLike FollowPost6Februaryat17:541
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