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Engr Nand Kumar SoofiDir QS), NHA Islamabad
PRESENTED BY
QUANTITY SURVEYING & ESTIMATION
NATIONAL HIGHWAY AUTHORITY
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Quantity surveying is primarily related to construction and the management of the
cost and budget of the projects.
Role of Quantity Surveyor starts from conceptual stage till the financial closure of the
project.
A Quantity Surveyor is likely to be involved in a contractual , technical and financial
capacity.
QUANTITY SURVEYING & ESTIMATION
QUANTITY SURVEYING
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QUANTITY SURVEYOR (QS) is a construction management professional.
The functions of a Quantity surveyor are broadly concerned with the
control of the cost on construction projects, the management and
maintenance of the budget, valuations and any contractual matters arising
through the course of the project .They are required to make sure that theproject remain feasible and efficient.
QUANTITY SURVEYING & ESTIMATION
QUANTITY SURVEYOR
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Whenever any Project is proposed, it is important that the cost involved is known in
advance.
These include :
Construction Cost (Direct Cost) Labour Materials
Plant
Overheads & Profit (Indirect Cost) Site Preparation Cost
(Including Mobilization & De mobilization Cost)
Professional fees, Taxes, Insurances , Bank charges , Staff expenses and othercharges
Running and maintenance Costs for the new Road/Building.
Profit of the Company
QUANTITY SURVEYING & ESTIMATION
QUANTITY SURVEYOR
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Estimation of Project
Item Rate Analysis
Procurement of Materials Invoices or Bills / IPCs
Escalation Payment Certificates
Variation Orders
Cash Flow Plans Financial Management i.e. controlling budget of project
Contract Administration related to financial matters.
QUANTITY SURVEYING & ESTIMATION
ROLE OF QUANTITY SURVEYOR
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QS
CostEstimation
Measurement
ProcurementPrice
Adjustment
Payment
QUANTITY SURVEYING & ESTIMATIONRESPONSIBILITIES OF QS
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MEASUREMENT
The process of measuring the quantities / scope of works is known as measurement.
Controlling the construction cost by accurate measurement of the work is required in the
construction industry.
MEASUREMENT
Also known as TAKING-OFF
QUANTITY SURVEYING & ESTIMATION
MEASUREMENT
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By using this Measurementknowledge, a QS will be able:
To prepare the Bill of Quantities or Specification document for
tendering purposes.
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MEASUREMENT
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Bill of Quantities(BOQ)
The BOQ is a document used in tendering in the construction industry in which
materials, parts and Labor are itemized.
In the BOQ item wise quantities/scope of works is mentioned. The quantities are
measured / Taken off from design drawings and specifications.
BILL OF QUANTITIES (BOQ)
QUANTITY SURVEYING & ESTIMATION
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ESTIMATIONThe process of calculating the quantities of various items of work,
and the expenses likely to be incurred.
The estimated cost of a work is a close approximation of its actual cost.
PURPOSEto give the owner/ client a reasonably accurate idea of the cost to help
him to decide whether the work can be undertaken as proposed or needs to be
curtailed or abandoned, depending upon the availability of funds and prospectivedirect and indirect benefits.
QUANTITY SURVEYING & ESTIMATION
COST ESTIMATION
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The only accurate estimation can enable the leaders to make vital
decisions regarding fate of the project.
If job is over estimated,
The firm will not be able to compete with its competitors
If the job is under estimated, The firm will face huge financial losses.
QUANTITY SURVEYING & ESTIMATION
IMPORTANCE OF COST ESTIMATION
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The primary aim of preparation of CSR is to provide the facility to theEngineers,in taking rational & quick decisions on following aspects.
To Prepare Project Estimates & PC- I
To Evaluate Tenders
To decide on claims & Variations Orders
To conduct arbitrations matters
QUANTITY SURVEYING & ESTIMATION
COMPOSITE SCHEDULE OF RATES (CSR)
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In order to prepare Schedule of Rates and to keep it effective, the basicrequirements are :
Collection of first hand healthy / correct information regardingManpower, Material and Equipment costs.
Merging the above information in proper proportion according to theconstructional requirement to create the rate of work item
Updating the data inputs every year or from time to time to revalidatethe items rates .
QUANTITY SURVEYING & ESTIMATION
COMPOSITE SCHEDULE OF RATES (CSR)
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RATE ANALYSIS
Materials cost
Manpower cost
Machinary cost
Profit & Overhead
QUANTITY SURVEYING & ESTIMATION
RATES ANALYSIS OF EACH ITEM OF CSR CONSISTS
OF FOUR BASIC INPUT
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TermsEscalation, Price Adjustments & Increase / Decrease.
MeaningAdjustment of Contract Price for increase or decrease of prices of
adjustable materials / services.
It is a compensation to the parties (Contractor or Client) for market price
fluctuation and not extra benefit to anyone.
Adjusted during contract period for the work done over a specified period.
Basic formula: Price Adjustment = Quantity x (current ratebase rate).
PEC formula: Pn=A+b Ln + c Fn + d Cn + e Sn + f Bn
Lo Fo Co So Bo
Appendix-C represents price adjustment factors in the Bidding Documents.
QUANTITY SURVEYING & ESTIMATION
PRICE ADJUSTMENT
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Base cost indices or prices shall be those prevailing on the day 28 days
prior to the latest date of bid submission.
Current indices or prices shall be those prevailing on the day 28 days prior
to the last day of the period to which a particular monthly statement is
related.
QUANTITY SURVEYING & ESTIMATION
BASE, CURRENT & PROVISIONAL INDICES
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Bidders quote price on prevailing market rates.
Cost of basic construction materials fluctuate unpredictably
during the contract period.
Unlimited cost increase not foreseeable & cannot be built in
competitive bidding process.
Contractors can execute work only at right costs. Contracts cannot be executed properly unless a mechanism
equitable to the parties are included for price adjustment.
QUANTITY SURVEYING & ESTIMATION
WHY PRICE ADJUSTMENT?
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Results of non-adjustments: Project delay, disputes,
termination of contracts resulting more cost for the
Employer
Exclusions Variation Orders due to Non BOQ Items
Claims
Temporary Works like General Items
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Cost Element Description WeightageFactor C
1 2 3
(i) Fixed Portion Min 0.35 as per PEC
guidelines
(ii) Labor
Max 0.65 and no
factor should be less
than 0.05 ether than
labor and diesel as per
PEC guidelines
(iii) Cement
(iv) Reinforcing Steel
(v) High Speed Diesel (HSD)
(vii) Bitumen
(viii)
Total 1.000
QUANTITY SURVEYING & ESTIMATION
APPENDIX-C TO BID
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Variation is alteration in the form of addition, substitution or omission
from the original scope of the contract works.
Almost all construction projects vary from the original design, scope anddefinition. Whether small or large, construction projects will have
inevitably depart from the original tender design, specification and
drawings prepared by the design team.
Those changes can be of different nature and may include additional
works, changing material specifications, changing working conditions,
design changes before, during and even after work execution and so on
and so forth
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The most frequent effect of variation orders is the increase in cost. Variation orders may
affect the projectstotal direct and indirect costs. Therefore, any major addition or alteration
in the design may eventually increase the project cost.
Additional payment for contractor, increase in overhead expenses, rework and demolition
were considered as the most frequent effect of variation orders.
QUANTITY SURVEYING & ESTIMATION
EFFECT OF VARIATION
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CONSTRUCTION PAYMENT
The process of paying /transfer of money or goods for the construction
works done. A QS will be able to:
Prepare the Interim valuation of works in progress on site for
purposes of interim payments.
Prepare the financial statement of regular intervals during the
construction period.
Do a settlement of the final accounts of the project.
QUANTITY SURVEYING & ESTIMATION
PAYMENT
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Supplementary services may also be provided by
the Professional Quantity Surveyor if required:
Preparation of feasibility studies of a project.
Projection of estimated project or development expenditure and
anticipated income cash flows.
Evaluation of contractors registered for prequalification.
Comparative cost studies on the economics of the project during
design stage.
Project management of construction project.
QUANTITY SURVEYING & ESTIMATION
SUPPLEMENTARY SERVICES
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With all these skills place QUANTITY SURVEYORS in a strong positionto take a leading
managerial role throughout the development of a project~
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