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THE HONG KONG INSTITUTE OF SURVEYORS

QUANTITY SURVEYING DIVISION

ASSESSMENT OF PROFESSIONAL COMPETENCE

FINAL ASSESSMENT – SEPTEMBER 2009

PRACTICE PROBLEM - DAY 1

Thursday, 17th September, 2009

THE HONG KONG INSTITUTE OF SURVEYORS QUANTITY SURVEYING DIVISION ASSESSMENT OF PROFESSIONAL COMPETENCE FINAL ASSESSMENT – 17TH SEPTEMBER 2009 PRACTICE PROBLEM – DAY 1

Page 1

NOTES TO CANDIDATES A. Headings to questions are for ease of identification only and do not form part of the

questions. B. The number of main questions is as follows: (1) First day – Questions with varying marks but aggregate mark is 50% (2) Second day – Questions with varying marks but aggregate mark is 50% C. All Main Questions and Sub-Questions are compulsory. D. The total mark is 100. The overall pass mark is 55. Marks will be assessed to fractions

of one unit. E. Refer also to INSTRUCTIONS TO CANDIDATES, which were issued to you in advance. FIVE COMMON CRITERIA Candidates are expected to illustrate a reasonable level of professional competence against five common criteria outlined below, sufficient for the Assessors to answer the question “Would I employ this person as a qualified Professional Surveyor?” However, it should be recognized that not all these criteria apply to every problem, nor do they carry equal weight. 1. Perception: A full understanding of the problem posed, evidenced by a response to

each item in the question. Candidates should also show foresight by anticipating additional problems not specifically mentioned.

2. Imagination: The assumption of essential supplementary information so as to

provide a full response; also the use of imaginary telephone inquiries, quotations, notes, etc.

3. Technical skills: The correct use of measurement principles, prices, discount factors,

etc. The use of appropriate short cuts, rounding off of figures, etc. to suit the scale of the problem. The provision of analysis to a depth appropriate to the stage reached by Candidates and the time constraints imposed on Candidates.

4. Judgement: The provision of sound professional advice indicative of professional

knowledge and experience gained by Candidates. The advice should be firm and unhesitating, except where suitable caveats are essential.

5. Communication: Free of ambiguity, with clear expression and an absence of irrelevant

or inappropriate technical details, particularly when provided to a lay Employer. Correct syntax and good professional style in letters and reports are important. Candidates should clearly convey their interpretations and proposals.


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Question No. Q1 – Cost Plan – Cost Savings Your Director attended a Design Meeting on the East College Hostel Development, which is presently at schematic design stage. The Geotechnical Engineer advised that the bedrock level of the Site of the Development was only 2 m below the site formation level as revealed from the recent site investigation data. He advised that the previously proposed bored pile foundations could be replaced by pad footings. The following indicative information was given:

• Type F1 pad footing: 6.00 x 3.00 x 2 m deep x 50 No. • Type F2 pad footing: 6.00 x 10.00 x 2 m deep x 60 No. • Similar to pile cap construction but with a reinforcement content of approx.

300kg/m3 • No change in the substructure works

During the same meeting, East College advised that, due to the recent financial crisis, its major sponsor would no longer be able to provide sponsorship to the College. The College urged the Design Team to explore possible savings to reduce the construction cost. Reducing the storey height of each floor from 4.00m to 3.50m was suggested and was in principle accepted by the College. In addition, the College also suggested reviewing the need to have curtain walls as these were seen as extravagant design. As an option for the College to consider, the Architect proposed changing the curtain walls to window walls with openable panes such that the glass can be cleaned from inside the Building. Your Director has asked you to work out the cost savings for the three proposed changes and to draft a memo for his reply to the College. The M&E Engineer will advise any savings in relation to the M&E services to the College directly. Due to the urgency of this matter, there is no need to provide any updated Cost Plan but back-up workings should be provided.

[20 marks] Attachment :

• Cost plan (Page Q1/1 to Q1/4)


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Question No. Q2 – Procurement Options Land Development Ltd, a developer, has acquired an existing shopping centre and is planning to renovate and turn it into a high-end retail, dining and entertainment hub. It is anticipated that the tenants will still be occupying some of the existing shops and restaurants during the renovation works. Land Development Ltd. has engaged your company as the Quantity Surveyor. Land Development Ltd. envisages that the existing shopping centre will be renovated internally with state-of-the-art interior design and finishes. All of the existing M&E services and plumbing and drainage installation will be removed, replaced and upgraded with new lighting, building management system, audio-visual system and energy conservation facilities incorporated. In the meeting yesterday, the representative of Land Development Ltd. emphasized the urgency of the project and would like to commence the Works as soon as possible while allowing the existing tenants to continue their business with minimal disruption. Your Director explained to Land Development Ltd. that the Works, if procured using the traditional lump sum procurement method, would require a lead time in completing the design. This method will not meet the Employer’s objective. The representative from Land Development Ltd. said he has heard about the Management Contracting method and the Design and Build method which will both allow an early start on Site and would like your company to advise him on which method is more suitable for the project. He is also concerned about keeping control of the high quality of the project. Please draft a letter to the Employer introducing how these two procurement arrangements operate and stating their respective pros and cons specific to this project and providing a suitable recommendation.

[15 marks]


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Question No. Q3 – Provisional Quantities Under what circumstances are quantities of works to be measured as “provisional” at tender stage? You are to illustrate the types of works by referring to two examples. [5 marks] Question No. Q4 – Error Adjustment [10 marks] Tenders for the East College Hostel Development, based on a lump sum contract with Bills of Quantities, were received early this week. Arithmetical checks were carried out. An error was discovered on Page 4/109 of the Bills of Quantities of one of the tenders. A. Your Senior Associate has asked you to correct the errors in accordance with the rules

given in the Conditions of Tendering. [5 marks] B. Draft a tender query to the Tenderer concerning the errors and error adjustment.

[5 marks] Attachment:

• Appendix ‘A’ – Copy of the relevant BQ Page 4/109 and Summary of Tender • Appendix ‘B’ – Relevant clauses of the Conditions of Tendering.


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Question No. Q4 – Error Adjustment - Appendix A

Bill No.

Item Page Total HK$

SUMMARY OF TENDER 1. Preliminaries 1/187 69,500,000

2. Pay For Site Safety and Environment Management 2/5 1,750,000

3. Foundations and Substructure 3/22 75,000,000

4. Superstructure 4/109 465,000,000

5. External Works and Drainage 5/25 25,600,000

6. Prime Cost Sums 6.1 Allow for a Prime Cost Sum of $ 140.00 million for Building Services

Installations 140,000,000

6.2 - Profit 1% - 6.3 - Attendances on NSC 2,800,000 6.4 Allow for a Prime Cost Sum of $ 52.00 million for Glass Walls,

Windows and Louvres 52,000,000

6.5 - Profit 1% 520,000

6.6 - Attendances on NSC 1,040,000

6.7 Allow for a Prime Cost Sum of $ 2.00 million for water feature at main entrance

2,000,000

6.8 - Profit 1% 20,000

6.9 - Attendances on NSC 40,000 7. Provisional Sums 7.1 Allow a Provisional Sum of $ 5.00 million for decorative light fittings. 5,000,000

7.2 Allow a Provisional Sum of $ 3.00 million for utility services connection.

3,000,000

7.3 Allow a Provisional Sum of $ 33.00 million for contract contingencies. 33,000,000

TOTAL CARRIED TO FORM OF TENDER $ 876,270,000

Tenderer: The Max Builder Company Page GS/1


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Question No. Q4 – Error Adjustment – Appendix A (Cont’d) No. Qty Unit Rate Total HK$

BILL NO. 4 - SUPERSTRUCTURE (Cont'd) √ Brought Forward: 459,374,000 "GOOD" ALUMINIUM LOUVRES SYSTEM all

as described and as Drawing No. D/LS/001and in accordance with the manufacturer's instructions

√54 Fixed louvre L9, 4210 x 1930 mm high. 1 No. 28,000 28,000 √

55 Fixed louvre L10, 7910 x 1930 mm high. 1 No. 53,000 53,000 √

56 Fixed louvre L11, 6250 x 1930 mm high. 1 No. 42,000 42,000 CANOPY, designed and constructed as

described and as Drawing No. C1

57 Canopy 50 m2 10,000 5,500,000 ROLLER SHUTTERS as Drawing No. D/MS/006 Hot-dipped galvanised mild steel framed and

welded

58 Roller shutter to suit clear opening 6275 x 3700

mm high. (S5L18) 10 No.

CAT LADDERS as Drawing No. D/MS/003 Hot-dipped galvanised mild steel framed and

welded

√ 59 Cat ladder 1890 mm girth comprising 38 mm

diameter tubular stringers 450 mm apart with 4 No. 25 mm rungs and 4 No. 38 mm diameter tubular supports 150 mm long; with ends of stringers bent and complete with flange and anchor bolts including all fixing accessories.

1 No. 3,000 3,000

(END OF BILL NO. 4) Carried to Summary of Tender:

465,000,000

Page 4/109


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Question No.Q4 – Error Adjustment – Appendix ‘B’

Relevant clauses of the Conditions of Tendering 1. Unless otherwise expressly allowed for herein following, the tendered sum will not

be amended for errors found in the examination of tenders.

2. No amendment to the stated descriptions and quantities shall be made after the tender closing date.

3. If there are errors in the Bills of Quantities (BQ), they shall be corrected as follows:-

a. Errors in the casting of cash columns are to be corrected.

b. The extension in the cash column may be amended to agree with the quantity and the rate OR (dependent on the judgment of the tender examiner) the rate may be amended to agree with the quantity and the extension in the cash column. [NOTE: In no case will the alteration of both rate and extension be permitted.]

c. Where a Provisional Sum, Contingency Sum or Prime Cost Sum has been stated in the BQ, and the tenderer has omitted to include it in the tendered sum, such sum (or sums) shall be added to the tendered sum.

d. Allowance is to be made for profit and attendance on such Prime Cost Sums omitted as in para. 3(c), at the minimum rate which has been quoted in respect of other Prime Cost Sums (if any) included in the tendered sum. Allowance for profit and attendance is not to be made if these items are unpriced elsewhere in the tender or if no other Prime Cost Sum is included in the BQ.

e. Where a Prime Cost Sum has been included in the tendered sum without allowance for profit and attendance no such allowance is to be made.

4. After rectification in accordance with para. 3, the difference between:

a. the tendered sum minus all priced Preliminaries items, all items in the BQ for Site Safety, Environmental Management, all BQ items with pre-determined rates or Prime Cost rates, the Provisional Sums, the Contingency Sum and Prime Cost Sums (but not profit and attendance thereon), and

b. the corrected total minus all priced Preliminaries items, all items in the BQ for Site Safety, Environmental Management, all BQ items with pre-determined rates or Prime Cost rates, the Provisional sums, the Contingency Sum and Prime Cost Sums (but not profit and attendance thereon),

shall be calculated as a plus or minus percentage of the sum at para. 4(b).

5. If para. 4(a) is less than 4(b), a minus percentage will be applied to the tendered rates (or rates pro rata thereto) including those corrected under para. 3(b) when appropriate for the purpose of valuation of variations and work ordered in respect of any Provisional Sum or the Contingency Sum. Conversely, if 4(a) is greater than 4(b), a plus percentage will be applied. Note that the rates in the BQ for Site Safety, Environmental Management, and pre-determined rates and/or Prime Cost rates would not be subject to the above minus or plus percentages.


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Question No.4 – Error Adjustment – Appendix ‘B’ (Cont’d) Relevant clauses of the Conditions of Tendering (Cont’d)

6. If the percentage calculated in accordance with para. 5 is less than 0.25%, no adjustment shall be made.

7. Where any relevant firm or provisional items in the BQ have not been priced, the costs of the unpriced items shall be deemed to have been included elsewhere in the BQ. Assessed rates for these un-priced items will be agreed with the tenderer for valuation of additions to or omissions from the contract in case of firm items (other than Preliminaries items) and in case of provisional items, for adjustment of omissions for the difference between the provisional quantities and remeasured quantities or for adjustment of additions for remeasured quantities in excess of the provisional quantities.

8. Should examination of a tender reveal errors of such magnitude as in the opinion of the Employer would involve the Contractor in serious loss then the nature and amount of such errors will be communicated to the Tenderer and he will be asked to confirm in writing that he is prepared to abide by his tender.

** End of CoT **

THE HONG KONG INSTITUTE OF SURVEYORS

QUANTITY SURVEYING DIVISION

ASSESSMENT OF PROFESSIONAL COMPETENCE

FINAL ASSESSMENT – SEPTEMBER 2009

PRACTICE PROBLEM - DAY 2

Friday, 18th September, 2009


Page 1

NOTES TO CANDIDATES A. Headings to questions are for ease of identification only and do not form part of the

questions. B. The number of main questions is as follows: (1) First day – Questions with varying marks but aggregate mark is 50% (2) Second day – Questions with varying marks but aggregate mark is 50% C. All Main Questions and Sub-Questions are compulsory. D. The total mark is 100. The overall pass mark is 55. Marks will be assessed to fractions

of one unit. E. Refer also to INSTRUCTIONS TO CANDIDATES, which were issued to you in advance. FIVE COMMON CRITERIA Candidates are expected to illustrate a reasonable level of professional competence against five common criteria outlined below, sufficient for the Assessors to answer the question “Would I employ this person as a qualified Professional Surveyor?” However, it should be recognized that not all these criteria apply to every problem, nor do they carry equal weight. 1. Perception: A full understanding of the problem posed, evidenced by a response to

each item in the question. Candidates should also show foresight by anticipating additional problems not specifically mentioned.

2. Imagination: The assumption of essential supplementary information so as to

provide a full response; also the use of imaginary telephone inquiries, quotations, notes, etc.

3. Technical skills: The correct use of measurement principles, prices, discount factors,

etc. The use of appropriate short cuts, rounding off of figures, etc. to suit the scale of the problem. The provision of analysis to a depth appropriate to the stage reached by Candidates and the time constraints imposed on Candidates.

4. Judgement: The provision of sound professional advice indicative of professional

knowledge and experience gained by Candidates. The advice should be firm and unhesitating, except where suitable caveats are essential.

5. Communication: Free of ambiguity, with clear expression and an absence of irrelevant

or inappropriate technical details, particularly when provided to a lay Employer. Correct syntax and good professional style in letters and reports are important. Candidates should clearly convey their interpretations and proposals.


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Question No. Q1 – Rectification of Defects

Notes to Candidates: You are to state the Standard Form of Contract upon which your answer is based.

The foundation works were substantially completed by the previous foundation contractor, Footing Engineering Limited (“FEL”). One month after the commencement of the superstructure works, latent defects were discovered which require rectification works to be carried out by FEL. Having studied the extent of the rectification works, the Structural Engineer advised the estimated time for rectifying the defects is about 21 days. He also indicated that the completion of the rectification works is critical to the superstructure works. The Architect called and asked what would be the contractual implications to the superstructure contract if FEL is to return to the Site and carry out the rectification works concurrently with the superstructure works being carried out by the superstructure contractor. As the consultant Project QS, your Associate has asked you to note down the contractual implications to the superstructure contract before attending the ad-hoc meeting scheduled for tomorrow afternoon. Any relevant contract clauses that you rely upon shall be clearly stated. [12 marks]


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Question No. Q2 – Extension of Time Notes to Candidates: You are to state the Standard Form of Contract upon which your answer is based.

Your Company, a general contracting company, was awarded a Contract early this year. Your Company originally programmed to commence and complete the site formation works, being a critical activity for the whole of the Contract, during the dry season. Following commencement of the Works, a period of 60 days of delay was encountered due to late issuance of crucial design information by the Architect, which hindered the progress of the site formation works. It was not until the wet season that your Company was able to progress the site formation works. Unfortunately when the Works were ready to start, the progress of the Works was adversely affected by several typhoons and heavy rainfalls. According to the record, a cumulative total of 30 days of adverse weather condition and its subsequent effects was encountered which falls within the definition of adverse weather condition under the Contract and entitles the Contractor to an extension of time under the Contract. Following your submission of the notice for an extension of time and direct loss and/or expense, the Architect wrote to your Company recognizing that there had been no delay for which your Company was responsible concurrent with the period of delay at issue and advised that a total of 90 days of extension of time for completion of the Works would be granted and that he would request the Consultant QS to ascertain the direct loss and/or expense in connection thereto. The Architect, however, expressly stated in this letter that no direct loss and/or expense would be reimbursed to your Company for the delay caused by the adverse weather condition and the subsequent effect. A. Your Project Manager has asked you to draft a letter to the Architect in response to the

Architect’s statement as underlined in the preceding paragraph. [7 marks] B. Your Project Manager has also asked you to gather the relevant information related to

site management staff costs that would form part of the direct loss and/or expense claim submission. You are to list down the relevant information required to substantiate the site management staff costs. [5 marks]


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Question No. Q3 – Valuation of Variations Following receipt of two proposed Architect’s Instructions (AI), your Contract Manager of a contractor firm has asked you to prepare the valuation of the corresponding variations for further discussion with the Employer’s QS Consultant. He has asked you to include any explanatory notes illustrating the underlying principles of your valuation. He has also confirmed that there will not be any time implication to the Contract for carrying out these variations. Copies of the Letter of Award (2 pages) and the relevant pages (2 pages) extracted from the Pricing Document are attached for your reference. (a) AI No. 105: Floor finishes to the Changing Room, with internal size of 10.10m long x

12.06 m wide The Architect confirmed to carry out the floor finishes within the Changing Room together with the corresponding cost for supply and delivery to the Site are as follows:-

• 300 x 300 x 10mm “Durable” homogeneous floor tiles at HK$ 120/m2; and • 50 x 300 x 10mm “Durable” homogeneous skirting at HK$50/m.

Your Project Manager confirmed yesterday that there would not be any abortive works due to this variation. [6 marks]

(b) AI No. 106 : Revised light fitting at external walls

The Architect instructed the changing of 10 Nos. Type L1 light fitting as shown on the Contract Drawings to 8 Nos. Type L2 light fitting. Your Purchasing Manager has confirmed that he has not placed the order for the Type L1 light fitting. It is noted from the site progress that the concreting works of the Project have been completed.

[6 marks]

Attachments:

• Letter of Award (2 pages) excluding any attachment • Extract of the Pricing Document and Preambles (2 pages)


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Question No. Q3 – Valuation of Variations (Cont’d) Copy of the Letter of Award

22nd September 2008 Good Builder Ltd. 63 Sham Cheng Road, Tai Kok Tsui Kowloon Dear Sirs, Proposed Hostel Development at West Street, North Point Main Contract - Letter of Award

We on behalf on the Employer are pleased to accept your tender for the above Project in a lump sum with Quantities Contract in the amount of $ 157,300,000.00.

The following issues shall form part of the Contract:

1.0 Date for Possession and Completion

1.1 The Date for Possession of Site shall be subject to the Architect’s Instruction.

1.2 The Date for Completion is 500 calendar days from and including the Date for Possession.

2.0 Financial and Contractual Matters

2.1 It is agreed that a 3% discount factor shall be applied to the unit rates and prices in Section No. 3 to 5 of the Pricing Document for the purposes of interim payments, re-measurement of provisional quantities, valuation of all variations and settlement of final account, excluding Prime Cost Rates items.

2.2 As clarified in the tender query, this Contract shall be on a lump sum with quantities basis except for the Building Services Installations. Your attention is drawn to Section No. 5 of the Pricing Document in respect of the Building Services Installations, of which its entirety shall be based on a lump sum fixed price and based on Drawings and Specification. The quantities given in this Section shall be treated as an indication only and shall not form part of the Contract.

2.3 You shall effect all insurances before commencement of any work on Site and maintain such insurance throughout the Contract, all in accordance with the terms and conditions of the Contract.

3.0 Documents/Correspondence

3.1 The documents/correspondence listed in Appendix ‘I’ shall form part of the Contract.

3.2 You shall submit the master programme within 14 days from the Date for Possession of the Site.


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Question No. Q3 – Valuation of Variations (Cont’d) Copy of the Letter of Award (Cont’d)

22nd September 2008 Proposed Hostel Development at West Street, North Point Copy of the Letter of Award (Cont’d)

Should there be any ambiguity or inconsistency between the terms and conditions as stated in this Letter of Award and those in the tender documents, the terms and conditions as contained in the correspondence and documents of a later date shall take precedence, and the terms and conditions in this Letter of Award shall supersede all those in the tender documents. Until a formal agreement is executed, your tender together with the agreement stated in this Letter of Award shall constitute a binding Contract between the Employer and yourselves.

The Consultant Quantity Surveyor will prepare the contract documents and we will advise you when the documents are ready for execution.

Please sign, stamp and return the duplicate copy of this Letter of Award to signify your agreement to the foregoing within 3 working days from the date of this Letter of Award.

Yours faithfully Agreed and accepted for and on behalf of for and on behalf of ProjectArch Limited Good Builder Ltd. SIGNED

John Wu Authorized Signature Director Company Chop:

Date: Encl. (attachments are excluded from this Q3) c.c. Employer (w/e) Consultant QS (w/e)


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Question No. Q3 – Valuation of Variations (Cont’d) Pricing Document Pages

Ref. Description Quantity Unit Rate Total (HK$)

SECTION NO. 4 (Cont’d) INTERNAL FLOOR FINISHES TO CHANGING ROOM (ALL PROVISIONAL)

Note : Waterproofing for Changing Room has been measured in this Bill.

"Superior Seal" cement base bituminous waterproofing or approved equivalent applied in accordance with the manufacturer's instruction

A Concrete slab 100 m2 100 10,000.00

B 150mm High skirting 40 m 50 2,000.00

C Water test Item 5,000.00

Waterproof cement and sand (1:3) screeds

D 30mm screed on slab to receive homogenous tiling 100 m2 80 8,000.00

E 20mm screed to receive 50mm high homogenous tiling skirting

40 m 50 2,000.00

"Durable" non-slip homogeneous tiling bedded in cement mortar (1:3 and 10mm maximum thick) on screed; pointing and jointing with coloured cement grout

F 300 x 300 x 10mm Flooring (Prime Cost $200/m2; supplied and delivered to site)

100 m2 280 28,000.00

G 50 x 300 x 10mm Skirting (Prime Cost $50/m; supplied and delivered to site)

40 m 100 4,000.00

(END OF ALL PROVISIONAL)

To Collection $ 59,000.00

- Page 4.7 / 10 -


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Question No. Q3 – Valuation of Variations (Cont’d) Pricing Document Pages (Cont’d)

Ref. Description Quantity Unit Rate Total (HK$)

SECTION NO. 5 (Cont’d) ELECTRICAL INSTALLATION (Cont’d)

External Wall-mounted Light Fittings A Type L1 6 No. 3000 18,000.00 B Type L2 30 No. 2000 60,000.00 C Type L3 2 No. 4500 9,000.00

To Collection $ 87,000.00

- Page 5.1/3 - Extract from the Preliminaries 7.05 Provisional Quantities The quantities described as PROVISIONAL in the Pricing Document are subject to

remeasurement upon completion of the Works. The Contract Sum shall be adjusted accordingly.

“Items” within sections of provisional quantities are not provisional and the sums inserted against the various “Items” will be included in the re-measurement of the provisional sections unless the work described in an Item is not required, in which case the relevant sum will be omitted from the re-measurement.

9.01 Adjustment of Prime Cost (P.C.) Rates Prime Cost (P.C.) rates for materials are for the supply of materials to site at street

level and the Contractor shall allow any additional costs for taking delivery from the supplier at street level, unloading or assisting in unloading, storing, distributing to required positions, returning packing cases etc. to the supplier (including paying transportation charges and obtaining credits for the packing cases etc), all waste, fixing, all ancillary materials required for fixing such as mortar for bedding and jointing and all other similar items of a like nature, for any finance charges and for profit.

The Contract rate will be adjusted by the nett difference between the prime cost (P.C.) rate and the actual price and will be applied to the nett quantity of the items fixed, installed or applied in position and measured in accordance with the SMM and the Preambles.


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Question No. Q4 – Measuring from As-built Drawings and SMM Notes to Candidates: Whenever the term “SMM” is used, it shall refer to the Hong Kong Standard Method of Measurement for Building Works, Fourth Edition, 2005. Copies of the relevant pages of the SMM are available upon request. Candidates are to refer to Pages 125, 126, 153, 154 and 156 to 159 only.

You are the Consultant Quantity Surveyor for this Project. In the final account, the Nominated Fire Services Sub-Contractor has submitted a complete re-measurement of the fire services works based on the prepared as-built drawings that have not been submitted to the Architect for endorsement. The total net additional cost is significantly higher than the estimated final sum that your Company had previously reported to the Employer. On analysis of the submission, it is found that the Nominated Fire Services Sub-Contractor has included a lot of star rates items like: (a) Bends and tees for the fire sprinkler pipe works; (b) The anti-vibration mounting for the fire services pumps; and (c) All metal brackets for the pipe works have been enumerated; The Employer has recalled that the Nominated Fire Services Sub-Contract was a lump sum sub-contract (without quantities) based on drawings and specification. The schedule of rates in the Sub-Contract was prepared in accordance with the SMM and the preambles (both extracted and attached herein). The Employer has also recalled that there were not too many design changes instructed during the contract. Your Senior Associate has asked you to clarify the issues with the Employer’s Project Manager by drafting a fax and making reference to the SMM and the Preambles for this Sub-Contract. You may make and list down all reasonable and relevant assumptions in your answer. [14 marks]

Attachments: • Extract of Preambles for Fire Services Installation


Page 10

Question No. Q4 – Measuring from As-built Drawings and SMM (Cont’d) Extract of Preambles for Fire Services Installation Section A – Generally

1. Except where otherwise measured, the quantities given in the Schedule of Rates (SOR) have been measured in accordance with the Hong Kong Standard Method of Measurement for Building Works (Fourth Edition) issued in 2005, published by the Hong Kong Institute of Surveyors) (hereinafter referred to as "the SMM"). Specific departures from the requirements of the SMM are as stated in these Preambles.

2. The items in the SOR should be read in conjunction with the Specification clauses and the relevant Preamble clauses.

3. All materials and workmanship shall, unless otherwise described, be in accordance with the relevant Drawings and Specification. The rates for items in the SOR shall include for the work being executed in accordance with the Drawings and Specification requirements.

4. All works shall be measured net from the drawings in conjunction with the Specification requirements.

5. The quantities in the SOR shall be measured from the Drawings listed in the Specification which indicate the design intent, general routing and position of the Fire Services Installation. The quantities of the Fire Services Installation are measured flat from the Drawings and apart from services risers, the measurement does not take into account any additional service runs or fittings required to route locally around structural members, changes in levels to suit the building structure or architectural details or other services or obstacles and these are required to be allowed for by the Sub-Contractor in his rates and prices.

6. For valuation of variations and provisional items, the quantities of the Fire Services works shall be measured net from the Drawings issued by the Architect from time to time in accordance with the rules as laid out in clause 5 above.

7. No adjustment will be made to such measured quantities for any actual difference in quantity from that shown on the Drawings arising from the Sub-Contractor’s co-ordination of the works and the measurement errors in the SOR.

8. No variation whatsoever will be ordered by the Architect in accordance with the Conditions of Sub-Contract as a result of the services runs and components of the Fire Services Installation being required to be rerouted or repositioned from those positions and routes generally indicated on the Drawings unless such revisions in the Architect’s opinion deviate from the design intent of the Drawings. The unit rates and prices for the Fire Services Installation shall be deemed to have allowed for this and be in accordance with the rules as laid out in clause 5 above.


Page 11

Question No. Q4 – Measuring from As-built Drawings and SMM (Cont’d) Extract of Preambles for Fire Services Installation (Cont’d) Location of work

9. Notwithstanding clause XVII (a) 1 M.2 of the SMM, work is measured irrespective of location and fixing background. Provision of brackets, hangers as required, together with all necessary bolts, nuts, screws, nails, plugs, fastenings and related holes in components and accessories shall be deemed to be included.

Pipework and ancillaries

10. Rates for tees shall be deemed to include all equal and unequal tees, and in the case of unequal tees and reducing sockets they shall be measured as extra over the largest diameter pipe connections.

11. Rates for reducers to obtain connections of the correct type and angle shall be deemed

to include elbows, tees, junctions, crosses and the like. 12. Notwithstanding clause XVII (d) 2.1 of the SMM, rates for pipework shall include for any

alternative method of jointing and fixing as described in the Specification. 13. Notwithstanding clause XVII (d) 12, 13, 14, 15 of the SMM, rates for pipework shall

include for screwed sockets, tappings, bosses and welding-necks welded to pipes or flanges.