Lara Tookey Estimation 1 – S8 P&G’s. So, you have priced your own work, and you have selected your subcontractors…. it can therefore be said that the.

Lara Tookey

Estimation 1 – S8P&G’s

• So, you have priced your own work, and you have selected your subcontractors…. it can therefore be said that the “construction items” have been priced (labour, plant & materials),

• what other items then need to be priced in order to ascertain the tender price?

BRAINSTORM EXCERCISE

• Working at your table, provide 10 examples of the various ‘costs’ that still need to be included.

Tender

Mark Up (Profit)

Head Office Overheads

Preliminaries i.e. Site Overheads

Prime Costs + Provisional Cost + Own Sub-contractors + Own Labour + Materials + Plant

Adjudication

= gross bill

= net bill

Components of a Rate

• Remember, unit rates are a combination of rates for labour, plant, materials & sub-contractors.

• Only the direct site costs are included at this stage.– Management are able to develop better

appreciation for project if indirect costs are dealt with separately.

PRICING PRELIMINARIES & GENERAL

Examine documents

Send out material & sub-contractor enquiries

Method statements & schedules

Programmes & Temporary works design

Site visit

PROJECT APPRECIATION & ENQUIRIES

RESOURCES & PREPARATION OF THE ESTIMATE

Establish outputs for labour & plant

Select material & subbie quotations

Establish rates for labour & plant

Build up rates

Price preliminaries

Prepare estimator’s report

Definition

“The site cost of administering a project and providing general plant, site staff, facilities and site-based services and other items not included in all-in-rates”.

“The cost of providing for the above are not practical or convenient to include in the unit rate.”

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P&

GIs the expense incurred for a construction

activity forming part of the permanent structure?

No

If the project did not exist would the cost be

incurred?

Yes – overhead

cost

No – P&G Cost

Yes – work section cost

What is the purpose of the preliminaries section?

• Make allowance for those costs which are necessary for the running of the project but are not specifically related to any one item or operation.

What is the function of the various sections in preliminaries?

• Legal & general obligations – the Contract.– Guarantees, insurance, etc.

• Project overheads & temporary requirements.– Management of the works, site huts, programming, toilets,

telephones, etc.

What is the function of the various sections in preliminaries?

• Special requirements – to meet particular requirements of specific project.– Specific security requirements, limited access, etc.

P&G Clause

• “Tenderer's are referred to the Conditions of Contract, including the Invitation to Tender, Conditions of Tendering Sections and all associated Addendums. Tenderers are to make full allowances in their tender for the content and intent of these documents”

• The prices and rates throughout the Schedule of Prices shall include (unless otherwise stated) all labour and materials including necessary nails, screws, spikes, plugs, glue or other fixings, waste on materials, conveyance and delivery, storage, unloading, returning packings, preparation, hoisting, lowering, setting, fitting and fixing in position, lapping of materials, square cutting, waste, the forming of fair edges, ends, angles, mitres and junctions between straight and raking or circular work unless specifically measured herein, all taxes payable, transit insurances, import duty and customs charges, awards and conditions payable to workers and also for profit, overheads and establishment charges. The prices and rates shall also include for all overtime and holiday work necessary to ensure delivery of the works on the date stated in the Contract Documents.

• The words "Allow for Attendance" shall include for the Contractor to attend upon, unload, provide storage space and working space for all Sub-Contractors (except in such respects as the latter definitely undertake to provide their own attendance) and afford all firms or persons engaged upon the Works or requiring to take measurements or other legitimate business all reasonable facilities thereof and the use of such cranage, hoisting facilities, scaffolding, ladders, water, watching, lighting and power as required for the purpose of the Works.

• Sections further sub-divided into Fixed, Value & Time related costs.

• “Fixed cost”– Those that do not vary with time• Plant item – transportation to & from site involves two

single costs which do not alter irrespective of whether the plant is on site for two or six weeks.

• “Time related cost”– Those that do vary with time• Once plant on site, consumer costs directly

proportional to time

• “Value related cost”– Based on the value of the contract

Management / Staffing of the project

Temporary works & services

Construction equipment

Access equipment / systems

Temporary accommodation & storage

Charges, Levies,

Consultants

Heath & safety

Sequence of events - pricing of the preliminaries:

Make notes of general requirements Temporary works, subcontract attendances

Prepare site layout indicating position of: Accommodation, access routes, storage areas,

services. Inspect site features & potential impact! Use tender programme for planning

Staff, plant & temporary works Read client’s specific requirements

Visit & Inspect Site

Take time inspecting site & preparing a report on all aspects of site conditions Inspection of sewers & checking of levels, open up works

for inspection; Location, site conditions i.e. fire risks, security risks,

radiation hazards, underground conditions Transportations costs Accommodation costs Possible cost of employing specialists for reports Provision of bulk bins & dumping of debris & waste.

P&G Clause

• Allow for visiting and inspecting the Site and its surroundings to ascertain the nature and extent of the Works, the means of access thereto and any other matter or item which may influence the Contractor in making up the tender.

• Allow for uplifting the Building Consent as specified (The Principal has lodged for Consent and paid all fees).

Plant, Tools and Other Equipment

• Schedule of plant should be prepared at outset showing the cost, based on the length of time the plant is required and appropriate charge-out rate.

• Must consider:– Initial capital cost, depreciation, maintenance, loss of

interest on capital, licenses, fuel etc

• If not included in unit rate, plant must be priced in Prelims.

Temporary Facilities & Services

• Definition: Services required for carrying out the project works.

– Inclusion: Installation, operation, maintenance and removal.

Temporary Facilities & Services Power / Lighting / Heating Water / Sewer Telephone Stationery & postage Office equipment, desks, chairs, filing cabinets etc Computers (+ consumables) Humidity / temperature control Security & safety measures

Perimeter fencing, lighting, alarm systems, cameras. Temporary electrics Waste skips

– Mess sheds (incl tables, bench seating, vinyl floor covering, sink bench unit)

– Store sheds– Ablutions and latrines– Cost of erection, dismantling & removal, and

cartage to and from site of temporary buildings.– Labour & material for cleaning & general

maintenance incl consumables

Supervision

• Contractors employees partially or wholly on site to carry out general duties. – Inclusions: Employees in head office carrying out

work directly associated with the project. Salaries, overtime, travelling, fares.

– Exclusions: Managers in head office carrying out organization management and the occasional site visit.

Site Personnel (Management & Staff)

– Site Manager– General Foreman– Engineer & Assistants– Planning / Scheduling engineer– Quantity surveyor / Cost Engineer & Assistants– Sub-contract co-ordinator / purchasing office– Clerk / Typist– Security patrols / Night watchman / Guard dogs– Health & safety officer (First Aid)– Overtime payment & bonus;

Site Meetings

• All expenses incurred in organising, accommodating, attending and minuting site meetings must be included– Generally based on records of similar jobs.

Hoardings & Scaffolding

• Temporary structures installed to protect workers and/or the public, to provide safe access to and around the site and to provide temporary support to existing work being altered or extended. – Often a quotation is obtained from a specialist firm for

supply, erection, hire and removal.

• Area of external wall to be covered usually stated in item description to assist in pricing.

Signboard

• Provision, erection, maintenance and removal.• Sign writing for Contractor, Arch, principal

consultants etc.

Insurance

• Insurance policies taken out in relation to construction site activity and associated items.

Footpath Crossing

• Could involve– Providing temporary protection to footpaths, grass

berms etc– Making good damage caused as required by Local

Authorities

Access Roads, Paths and Carparks

• Could involve– Provision of metal etc for temporary roading– Labour and plant of placing metal– Reinstatement of roads, grassed areas, as required

if damabed– Removal and making good

Temporary Services

• Installation, maintenance and removal of a variety of services, incl cost of all notices, permits & fees not covered in the building permit.– Water– Drainage for temporary installations– Electricity– Telephones

Keep site free of water

• Dewatering, pumping or some other approved method to ensure site free from water at all times.

Security of the Works

• Night watchman &/or Security firm• Security alarm system

Cleaning Building ready for Occupation

• Works carried out at completion of the project works.– Housekeeping & fire safety on site, cleaning up &

reinstatement of works on completion.

Other things to think about

• Screens, barricades, rails and nightlights• Notices, permits and Fees• Protection of Public & Private Property• Contract Guarantee Bond• Deposit with Tender• Fire fighting equipment• Guarantees, warranties, testing and samples

HOW DO YOU THINK YOU COULD REDUCE PRELIMINARIES?!!

How do you think you could reduce preliminaries?!!

• Minimize temporary storage– deliver to/near installation locations.

• Move materials once only, with cheapest labour possible.

• Maximise handling productivity– Use optimum equipment (capacity, availability,

etc)

WORKSHOPIdentification, and pricing of preliminaries.

Brief

• You are :– building a new administration building (159m2

GFA) and;

– Undertaking remedial modifications to 296m2 GFA.

• At a school, which will remain operational.

• The new building comprises a single story structure with slab-on-ground concrete floor slab over reinforced concrete strip footings and pad foundations. The structure is light timber framed construction generally to NZS3910 (Conditions of Contract for Building and Civil Engineering Construction) and NZS3604 (Timber framed buildings).

• Siteworks comprises the construction of a staff and visitor's carpark including associated timber retaining walls, hard landscaping elements including fencing, concrete paths, raised planter boxes and exterior lighting. Topsoil and grassing is required to part of the site but other soft landscaping (planting) is by Others.

• It is envisaged that approximately 200 meters of perimeter security fencing will be required for the full length of the contract to comply with the School's Health and Safety policies and the project's specification. Note that part of the site perimeter is adjacent to existing buildings and it has been determined that there is no need for security fencing to these areas.

• For the purposes of this brainstorm activity (primarily for determining Preliminary & General costings) you are to assume the contract period will be 8 (eight) calendar months commencing one month after acceptance of Tender.

WHAT ARE YOUR INITIAL THOUGHTS?

WHAT ISSUES DO YOU HAVE TO DEAL WITH?

HOW DO YOU PRICE THE ITEMS?