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Kabiru A.

Diso NC 40851

BTEC Advance Level 3 Certificate

in
Surveying & Estimation
SCENARIO BASED ASSESSMENT 2
ANSWER SHEET

Learner Name: Kabiru A. Diso


Learner Reg. No. NC 40851

Kabiru A. Diso NC 40851

SBA2
P1
Door..2.0m x1.5m
Window1.5m x1.5m
Height of the building ..2.9m
Slab thickness0.2m
i.

Calculate the volume of concrete required for all three buildings in total
Volume of one (1) workshop
To take the measurement of an irregular shape, SMM suggests it is a better practice to
measure the overall area or measuring gross, then deductions are taken away from
it.
Volume of the concrete = L x B x W
= 4.5 x 3.0 x 0.20
= 2.7m3
ddt
Volume of void

= 1.5x1.0x 0.2
= 0.3m3

The volume of concrete of 1 workshop = 2.7 0.3


= 2.4m3
Therefore the total volume of concrete for the three (3)
workshops
= 2.4 x 3= 7.2
= 7.2m3

ii.

Calculate the quantity of blocks required


The common type of blocks used in Nigeria is sandcrete block with the measurement
of 450 x 225 x 225mm ( see attached P1)
Therefore to calculate the perimeter of workshop to determine the quantity of the
blocks needed, we have to start by determining the girth.

Length of the workshop = 4.5


Width of the workshop = 3.0
2 /7.5
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Kabiru A. Diso NC 40851

= 15.0
Less corners
4/2/1/2/225

= 0.9
14.10

The total perimeter of one workshop = 14.10m


To determine the area of the wall = L x H
= 14.10 x 2.90
= 40.89 m2
Ddt openings
Door
=
Window
=
Total area of opngs

2.0 x 1.0 = 2.00


1.5 x 1.5 = 2.25
= 4.25m2

Ddt Lintels
Door width = 1.00
Add 2 laps
2/ 225
= 0.45
1.45m
Area = 1.45 x 0.23 = 0.33m2

Window width = 1.50


Add 2 laps
2/ 225
= 0.45
1.95m
Area = 1.95 x 0.23 = 0.45m2
Total area of lintel = 0.33 +0.45= 0.78m2
Therefore the total quantity of the blocks needed should be,
total area of workshop wall less area of openings and area
of lintel.
Total area of wall = 40.89
Less openings
= 4.25
Less lintels
= 0.78
Quantity of blocks = 35.86m2
Therefore quantity of blocks required for 1 workshop

= 35.86m2

The total blocks required for 3 workshops = 35.86 x3

= 107.58m2

Kabiru A. Diso NC 40851

iii.

Calculate the volume of mortar required.


To determine the volume of mortar required, we have to establish the number of
blocks per m2 (See attached diagram P1)
Block size = 420 x 225 x 225mm
Area of 1 block as laid in stretcher bond including surrounding mortar

Area of I block

= (25/2 +450 +25/2) x (25/2+450+25/2)


= (2x25/2+450) x (2x25/2+450)
= (25 + 450) x (25 + 225)
=
475
x 250
=
0.11875m2

Therefore number of blocks in 1m2 = 1/0.11875


= 8.42
Add 10% waste

= 10% x 8.42

= 0.842
= 9.26
9 pcs

To determine the volume of mortar for bedding and jointing in m3/m2 of the wall.
The total volume of block and surrounding mortar
= 0.475 x 0.225 x .250
= 0.02671875m3
Volume of block only
= 0.450 x 0.225 x 0.225
= 0.02278125m3
Therefore volume of mortar per block including the hollow
= 0.02671875 0.02271825
= 0.00393750m3
Volume of mortar on the hollow
= 2 x 0.150 x 0.125 x 0.025
= 0.0009375m3

Net volume of mortar per block = 0.0039375 - 0.00009375


= 0.003m3
If 1 m2 = 9 blocks, then mortar per m2 = 9 x 0.003
= 0.027
= 0.03m3 of mortar per m2
Then the total mortar required for 1 workshop
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Kabiru A. Diso NC 40851

= 35.86 x 0.03
= 1.0758m3
Add 10% application waste = 10% x 10758= 0.10758
= 1.0758 + 0.10758= 1.18 m3
Therefore the volume of mortar required for the 3 workshops
= 3 x 1.18
= 3.54m3
iv.

Record this information in the traditional format using SMM7, produce accurate
quantities and descriptions for the task ion P1.
The formal should be as follows, however it should be noted sand, cement are deemed
to be included in the rate of block work per square m (m2)

s/no

Description of work
In-situ concrete

Qty

Unit

7.2

M3

15

108

M2

Plain in-situ concrete (1:3:620mm


aggregate)
developing minimum work
strength of 21N/m2 in 28
days in:
A

150 mm bed
Sawn formworks to:

Edge of bed
BLOCK WORK

225mm hollow sandcrete


blockwork bedded and jointed
in cement/sand mortar 1:3 in
stretcher bond

Rate

Amount

Kabiru A. Diso NC 40851

M2. Produce a short report detailing why there are differences in the accuracy of
measurement for different stages and different application of a job.
The cost estimate of any job is based on the accuracy of its measurement to enable
pricing of quantities wherever information is provided but at some stages of project
development reasonable assumptions for other work not specifically covered in the
drawings or specifications can be applied.
The different stages as outlined by RIBA are as follows:

stage A Appraisal
stage B - strategic brief
stage C - Outline Proposals
Stage D - Detailed Proposals
stage E - Final Proposals
stage F - Production Information
stage G -Tender documents
stage H -Tender Action
stage J Mobilisation
stage K- Construction to Practical Completion

Stage A - Appraisal
At this initial stage, studies are carried out to determine the feasibility of
the
Client's requirement and provide information for report on cost implications. This
stage is not always required particularly in small domestic projects where the client
has perhaps a clearer idea of their requirements for their own home and has say,
already purchased the site. At this stage there is no clear and accurate dimension.
Stage B - strategic brief
Measurement is not accurate at this stage, because this is the stage to receive strategic
brief prepared by the client
Stage C - Outline Proposals
Commence development of Strategic Brief into Project Brief Prepare Outline
Proposal Provide an approximation of construction costs or Provide information for
cost planning Obtain Client approval to Outline Proposals and approximate
construction cost Co-operate with Planning Supervisor where applicable, so
measurement at this stage is considered to be a preliminary sketch, therefore not
accurate.

Kabiru A. Diso NC 40851

Stage D - Detailed Proposals


At this stage Accuracy of the measurement is high; because this is the Final stage of
developments of Project Briefs after several modifications modification. It is the
Detailed Proposal from approved Outline Proposals to prepare a cost estimate or
provide information for preparation of cost estimate and to Consult statutory
authorities Obtain Client approval to the Detailed Proposal showing spatial
arrangements, material and appearance, and a cost estimate Prepare and submit
application for full planning permission
Stage E - Final Proposals
This is the stage at which the accuracy of measurement is at its highest peak, since no
more changes should be entertained at this stage because any further change in
location, size, shape or cost after this stage will result in abortive work. As Design
Final Proposals is developed from approved Detailed Proposals, Revise cost estimate
Provide information for revision of cost estimate Consult statutory authorities on
developed design proposals Obtain Client approval to type of construction, quality of
materials, and standard of workmanship and revised cost estimate Advise on
consequences of any subsequent changes on cost and program.

P2. With reference to the job in P1 explain the meaning of the following.
1. Overheads and profit
It is commonly agreed that, in order to remain in business every contractor needs to
cover their overheads and produce a profit for the future viability and expansion of the
firm. Overheads and profit will be added to all work items to cover the cost for running
the contractors establishment and to provide a profit. The establishment cost includes
the Head office running cost for various departments, such as estimating, purchasing,
planning and account, together with those departments that are essential to any
commercial firm such as marketing, strategic planning, public relations, personnel and
training.
These costs are operating expenses and include items like:I.
II.
III.
IV.
V.
VI.
VII.

Salaries of Companies staff.


Office lease or lease for warehouse space.
Owned or leased office equipment.
Owned or leased vehicle expenses.
Fuel cost for projects operation
Contractors liability insurance
Any equipment purchases and related maintenance.
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Kabiru A. Diso NC 40851

VIII. Office utilities, etc.


The amount added for overheads and profit is normally given as a percentage, the
allowance generally being decided by contractors board of directors. The contractor has
four (4) choices for distribution of overheads and profit.
a) Percentage addition to all individual rates:- This has an advantage where a variation
to the work adds additional quantity, since the contractor will recover additional
overheads and profit, but the converse is also true.
b) Add the total amount to one item in the preliminaries section;- Usually to the
supervising item. This has the advantage that the amount cannot be reduced, and put the
contractor in a strong negotiating position where a claim is made for additional
supervision owing to period of supervision being lengthened.
c) Addition to summary total at the end of the bill of quantities:- This reveals the
overhead and profit addition, which can prove to be a disadvantage if an overestimate
of provisional sums and provisional quantities is made in the bill of quantities. A remeasurement of these items may lead to reduction in the contract sum and hence also in
the blanket addition.
d) Add amount selectively to specific items in the bill of quantities:- This will improve
cash flow. This has advantages but is also dangerous where work is to re-measurement.
A contractors profit is simply the money left after all these costs, including overhead
have been paid. The profit margin realized by the contractors is then used to grow their
own organization, provide incentives or benefits, for investing or expanding or as a
cushion to cover bad debt or if something goes wrong on a finished project.
2. Preliminaries
Preliminary items are items of cost which do not relate to any particular work section
and usually listed in the first bill of quantities. Many estimators prefers to inserts a lump
sum for all the preliminaries usually worked out as a percentage of the total of the
measured works. It is good practice however to put a price to each of the item. The price
quoted should read at after careful consideration of each item as it applies to the
particular job at hand e.g water for the works. It will be pipe bone water readily
available on site or water has to be transported to site on trucks.
The preliminaries of a bill of quantities are the section that provides a description of the
project, the contractors general obligations, general facilities, and setup and running
costs.
Following preliminary items are included in BOQ
I.
II.

Project particulars: Name, nature and location Names and addresses of


Employer and Consultants
Drawings: List of drawings that form pan of the Contract.
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Kabiru A. Diso NC 40851

III.
IV.
V.
VI.
VII.
VIII.
IX.
X.
XI.

XII.

XIII.

XIV.

XV.
XVI.

Site and access:- Location of site and access are described with limitation on
working times and access.
Scope and description of the works:- General description of the works to be
undertaken and the total gross floor area provided.
Firms employed direct or executed by Statutory Undertakers:- Details of
crossovers by local authority and consideration of statutory services on the site.
Supervision/Staffing/Site management
Temporary telephones
Temporary screens,Temporary fencing, hoardings, etc.
Setting out
Conditions of Contract and insurances:- The contract documents to provide a
complete list of relevant conditions of contract.
Safety, health and welfare:- The Contractor is to provide suitable safety,
health and welfare measures and amenities to comply with all the current
Statutory Regulations and the Code of Welfare conditions of the National Joint
Council for the Building Industry.
Access and scaffolding:- Access to the works is heavily influenced by the
design of the finished project, but the decision on which method to employ rests
almost entirely with the contractor.
Safeguarding the works:- The Contractor is to safeguard the works, materials
and plant against damage and theft and all watching and lighting for the security
of the works and the protection of the public and the Employer.
Site accommodation:-The Contractor is to allow for providing and maintaining
temporary site accommodation for Architect and Contractor including removal
on completion.
Deleterious materials:- The Contractor is not to use or permit to be used any of
the described deleterious materials in the execution of the works.
Protecting, drying and cleaning the works:- The Contractor is to allow for
protecting the works from inclement weather, providing all temporary screening
to openings, providing for all costs in connection with drying and controlling
the humidity of the works, protecting the whole of the works and removing all
rubbish.

3. Net Pricing
The net cost / pricing is the cost of all of the basic things you need on site to
complete the job in hand. This includes labour; the wages for all of the staff and
the facilities they use including food, shelter and first aid. Also all of the
equipment they use. The cost of plant material also ties in with the net cost but
this will all depend on the type of job you are doing; say you are building a high
rise building with several floors then a large crane will be needed this obviously
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Kabiru A. Diso NC 40851

costs a lot of money to hire out by the hour meaning that a large sum will be
added onto the estimate in comparison to building a smaller building that will
need smaller less expensive plant. Materials also come into the estimation of the
net cost. The materials need to be well thought out before the project begins.
They must be effective for their cause and there cost. When doing estimation
the estimator must find competitive rates for materials that are to the buyers
specification. The cost of these will all be added to the estimation.
4. Purpose of different estimating methods.
Constructions projects go through many phases of develop from their inception
to completion. The different estimating method can be used at various stages of
a projects development to facilitate budget planning and to control costs.
Therefore the purpose of Construction estimating methods are to be used for
different levels of detail and each is used for different purposes.
P3.

A)

Hours worked per hour


Less
Inclement weather hours
Public holiday
=

Item
Basic Rate
Bonus @35% of
total
Sick pay
National
Insurance
Non-productive
Over time

Rate
# 14.20

Plus rate
Annual holiday
& benefit
Insurance
Severance pay

@3%
#27.32

1946hrs

60hrs
64hrs
1822hrs
Hours

Total hours
1822

#110.55
@11%

2 weeks

@ 0.5 of basic
rate

150

5,692.58

47 weeks

776.26
1,284.04

@3.9%
@1.5%
Sub total

Profit

Bricklayer
25,875.40
9,055.34

15%
Total
10

221.10
2,856.29

1,009.14
388.13
47,158.28
7,073.74
54,232.02

Kabiru A. Diso NC 40851

Using the general formula:


All In Rate = (total direct labour cost + total indirect labour cost)
Total work hours
=
All- in rate for the bricklayer
B)

54,232.02
1822
= #29.78

All- in material cost;


Cost of door
Waste
0.03
Carpenter
#14.63/ hr
Labourer one per 3 11.50
carpenters
3

The All- in material cost for the door

C)

0.9hr
0.9hr

# 78.30
0.03
13.17
3.45

Total

#94.95

= # 94.95

Let use the assumption that the project is 10 weeks projects at 39 hours a week.
To start with calculating the hourly rate for each item and then add them together.
Delivery / removal
Delivery / removal = # 15
Delivery/ removal =
15
39 x 10 ( as it spread over 10 weeks)
Delivery / removal = # 0.038 / hr
Weekly hire
Hiring cost

Hiring Cost

= #65 / week
= 65
39
=# 1.67 / hr

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Kabiru A. Diso NC 40851

Fuel
Fuel

Fuel

= # 32/ week
= 32
39
= # 0.82/ hr

Maintenance
Maintenance

= # 5 / week
= 5
39
= # 0.13/hr

Total hourly cost = #0.038 + #1.67 + # 0.82 + # 0.13


Total hourly cost = # 2.66

D1. Use an estimating method to evaluate the cost of this job. Discuss why
you think the method you have chosen is appropriate.
Cubic Method
In this method, the external plan area of a building is multiplied by a height to get the volume of
the building. The height is measured from the top of the concrete foundation to half way of the
roof, which is assumed to be a pitched and is 600mm above the roof, if flat. The height is taken up
to the top of the parapet or 600mm whichever is greater. Total estimated cost is equal to cubic
content/m3 multiplied by cost/m3 where different part of a building varies in character or
function, such as workshop with an office block frontage, and then the different parts should be
separately measured and priced. But what we have is only a workshop.
Figure given is 3 units of workshop buildings. The effective height is 600mm (top of foundation
to ground level) + 2.90m (ground level of roof) + 3.00m roof = 5.100m
Volume of 1 workshops = (4.5 x 2.0) + (1.0 x 3.0) x 5.10
= 9 .0 + 3.0
x 5.10
=
12.0 x
5.10
3
=
61.2 m
Therefore for 3 workshops
= 61.2 x 3
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Kabiru A. Diso NC 40851

= 183.6m3
Lets assume the cost / m3 to be # 4500
Estimated cost would be

183.6 x 4,500
= # 826,200.00

D2. Base on the estimate, prepare a tender using an appropriate method. Discuss why you
think the method you have chosen is appropriate.
Tendering is the administrative procedure of sending out drawing and bills of quantities or
specifications to contractors for them to state their prices for all the items of one contract.
Besides the contractors price, other considerations include his competence and financial
standing. There are different types of tendering they are:Single stage selective
Single stage selecting involves searching through contractors and inviting them to send you
their ideas for tender. The project in hand is small scale and basically the job has to be done
efficiently for it to make a profit margin. Single stage selective would be advantageous
because it only consists of one single stage. This is quicker and easier than other ways of
selection and is also simple. Another plus side is the fact that who you choose is personal to
you, this means you can select contractors who you have a strong business relationship with
and that you trust. This cut out any early stages of the work where the client and contractor
are just getting to know each other and how one another do business. This can be a tricky
time if the two involved to not getting on right away. When using this method of selection
specialists we can see who is specialist in the field of work that is being done. In this case it
is advisable to look for a contractor who keeps a very good time scale and has a reputation
not to prolong work.
Two stage Selection
With two stage selection there are two different interviews one with many contractors all
with their bids and ideas for tender and then a second shortly after with the best ideas and
pitches all invited back to bring estimations and bills of quantitys. This is great for a small
scale project like the one in hand because firstly the client can get an overlook and many
different ideas on how to save money, how to do work more efficiently and to a better
standard. This is excellent as even if you dont hire all the contractors you can still take their
ideas from the first interview and use them which can save you valuable time and money. At
these interviews also you can get to know the potential contractors and see if they have the
credentials to gel with the workforce you already have and in this case if they can handle a
small scale job in the time given. This would probably be the method I would use if this was
my job. Although there are two interviews these can be done in one week or even less and it
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Kabiru A. Diso NC 40851

doesnt take up too much time. Also the amount of ideas you can get from the first interview
can be really vital. However, this can backfire as too many changes can ruin the project and
also the timescale if changes are made late.

Open tendering
Open tendering is where the tender is advertised and put out for contractors to bid to the
client for the tender. This can be good for public construction as it gives the opportunity for
all firms including relatively unknown but capable ones to tender. It also the prevent firms in
area from forming an exclusive clique to keep up prices since there is no restriction, they can
be no change of favoritism in drawing up a list of tenders.
Above all, open tendering should secure maximum competition and therefore the lowest to
process. it is for this reason that I would use this method of tendering in this scenario
Serial Tendering
Serial tendering is where one contractor is hired to do a series of jobs that are all similar. This
is seen as a long term project and contract between client and contractor. When hiring for this
type of job its good to hire someone you trust because in these cases its usually talking about
a lot of money at hand. In a small practice this may not be the best way to select tender and
there will never be many projects that are serial. However if one did come along then
obviously this would be the only way to do business for me as it save so much time in hiring
new contractors for the same sort of jobs. Also as a small business a business partner that can
be trusted may be very beneficial.
It is pertinent to note that, greater part of work carried out in the construction industry is
secured through a process of tendering which is intended to be an unbiased means of
selecting a contractor to carry out work. The client through an evaluation of his needs
determines the criteria for selection. The aims of selection are to find a contractor who can
supply a product for a competitive price, and can demonstrate the following:
1. A reputation for good quality workmanship and efficient organization.
2. The ability to complete on time.
3. A strong financial standing with a good business record.
4. The expertise suited to the size and type of project.
5. An understanding of the requirements of the scheme in terms of the type of work, the
quality expected and the need to achieve target completion dates.
Tendering is the administrative procedure of sending out drawing and bills of quantities or
specifications to contractors for them to state their prices for all the items of one contract.
Besides the contractors price, other considerations include his competence and financial
standing.
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Kabiru A. Diso NC 40851

It is worth remembering that every activity in the tendering process has a time and cost
implication. It makes economic sense, therefore, not to overburden the participants with
unnecessary information requirements, and to concentrate on those which are relevant to the
work which is to be undertaken. Faced with competing financial pressures, most contractors
will carry out their own assessment of the jobs they wish to tender for, and will be less
inclined to bid for those where the procedures involved are perceived as overly complicated
or onerous. Also, since preparation costs are included in their overheads, these will ultimately
be passed on, in the form of higher prices. Preparation of this information will also be
reflected in higher consultancy costs for the employer's team.
The method chosen is open tendering method, where an advert is placed in the press to invite
any firm that wishes to do so to submit a tender for a project, the advert will give a brief
description of the works to be undertaken. Interested firms can apply for the tender
document, collect them, upon payment of money deposit which are usually non-refundable in
Nigeria the deposit covers the cost of documents and discourages the non-serious bidders
from partaken into the process.
The reason for choosing this method to be the most appropriate is:1. It gives the opportunity for all firms including relatively unknown but capable
ones to tender.
2. Since there is no restriction, there can be no change of favoritism in drawing up
a list of prospective tenderers
3. This prevents firms in area from forming an exclusive clique to keep up prices.
4. Above all, open tendering should secure maximum competition and therefore the
lowest process. (See the attached D2)

P4. Identify and explain the factors that can affect.


1.
Output of labour
2.
Percentage profit
Contractors profit margin or percentage is affected by the performance of estimators, project
managers, and clients. Contractors can maximize profit by moving out of the price-based
environment and also by using completed project profit analysis (CPPA). The research proposes
that CPPA may be more successful to maximize the profit of the contractor rather than attempting
to improve the performance of their personnel. This assumes that a successful contractor will
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Kabiru A. Diso NC 40851

have competent personnel (estimators and project managers) who will try to maximize the profit
of the contractor
Therefore, there are calculations that have to be made when undergoing a project to establish a
rate that the estimator can use to price the tender works which recovers all the costs involved in
employing labour directly.
The reason this is done is if you had employed a worker on site for 12.00 an hour is that all you
will be paying him, obviously not; there are more things that need to be included and taken into
account when calculating that costs of labour.

3.

Working hourly / idle rate for plant.

The purchase of plant by a contracting firm for any given project is a function of many variables
including the nature of the contract, the size of the project, the type of the client, the location and
complexity of the project. Oftentimes, contracting firms resort to hiring plant from external
sources. This action has relatively proved to be cheaper. However, reasonable carefulness is
usually required to ensure that quotations obtained are for plants, which will meet the contractors
requirements including the job specification(s).

When hiring plant there more aspects required to take a note of there are deliver costs to
think about. If your site is in the city it may be hard to get it to your site so alternative
methods of transport are used but usually low loaders and tractors are used nevertheless
all of these methods cost money. Erection costs are also something to think about, if it is
a crane that you need then this is going to take time to erect, and time equals money not
to mention the labour involved. Also when everything is finished removal costs come
into place and these need to be noted and change the percentage profit in the long run

The worst thing that can happen to a site manager is when he has expensive plant lying
around and not doing anything; this wastes a lot of money, mainly through rental costs.
The rate of rental costs per hour is very expensive as we know. The unit rate of
calculation for an item of plant will depend on a number of things. The ground conditions
are important, weather there are trained operators. If not then hiring someone new or
investing in training is needed (training would be needed for at least 2 people to account
for the absent). The dimensions of the height and reach of the plant material is also
accounted for. The higher and longer the plant is the more it costs for example a crane
costs more than a small digger. Finally the reliably plays an important role in how much
plant costs. If you are hiring or buying brand new plant machinery then it is obviously
going to cost more. All of these things take off and put on percentage to the overall
percentage profit.
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Kabiru A. Diso NC 40851

M3 Describe items that to overheads and on-costs. Explain how percentage on-costs and
overheads might be calculated. Illustrate your answer with examples from the project
above.
Overheads are costs that need to be met for any organisation to stay in business. They
are expenses that are not directly linked to any single part of the organisations activities
and so not clearly chargeable to a particular part of the work of product. Typically these
expenses relate to essential support functions and services used by the organisation as a
whole. For a large company overheads might include:
IT equipment,
company cars,
insurance costs,
support department costs (such as purchasing and accounts) and
canteen costs
Some overhead costs may be added to an estimate according to a formula:
Overheads x
Turnover

100% = percentage to add to tender

Alternatively overheads may be recovered by using an increased profit margin to cover


their costs, or by using on-site support functions and recovering the costs through
preliminaries.
To calculate the Percentage of overhead, using example from the above project
should be as follows.
Let assume this scenario.
A construction firm awarded the contract to construct three (3) workshop building s
planned to commence within the same year, has the following details based on the
location of each project;
contract no. 1: Workshop building # 6.0m for a completion period of 2 years six months.
Contract no. 2; workshop building # 5.0m for a period of 2 years three months.
Contract no. 3 : workshop building # 7.0m with completion period of 3 years.
Compute the percentage overhead based on the previous year records and increase in
head office staffing which amounted to # 2.75m.

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Kabiru A. Diso NC 40851

Solution.
Contract

Turn over per annum

Contract 1

# 6,000,000
2.5
# 5,000,000
2.25
# 6,000,000
2

Contract 2
Contract 3

# 2,400,000
# 2,220,000
# 3,000,000
# 7,620,000

Total per annum

Overhead

2.75 x 100
7.62

36.08%

36%

P5 Describe the common methods of tendering for main contractors, sub-contractors


andsupply packages, explaining how different objectives might affect the tender price.
Suggest a tender method for this project.
Tendering is the process by which bids are invited from interested contractors to carry out
specific packages of construction work. It should adopt and observe the key values of
fairness, clarity, simplicity and accountability, as well as reinforce the idea that the
apportionment of risk to the party best placed to assess and manage it is fundamental to the
success of a project.
The principle of tendering is to ensure that true competition is achieved, as it is evaluated by
applying certain criteria. These criteria may be expressed in terms of financial matters,
comprising a simple assessment relating to tender sums, or more complex financial
evaluation, including consideration of projected costs over the life cycle of the completed
project. It could also address other non-financial factors such as time and proposed methods
or levels of capability; or sometimes a mixture of both collectively referred to as a
'quality/price balance' or 'matrix'

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The most commonly used methods of tendering are: Single-stage selective tendering
Two-stage selective tendering.
Open tendering
Stage Selective Tendering:Both single stage and two stages selective tendering involve the invitation of tenders from
firms on a pre-approved or ad hoc list, chosen because they meet certain minimum standards
in general criteria such as financial standing, experience, capability and competence. The
competition element of the tender is provided on the basis of price and quality. The main
difference between the two is that in the two-stage process, the contractor becomes involved
in the planning of the project at an earlier stage, so the tenders are submitted on the basis of
minimal information, and in the second stage the employer's team will develop the precise
specification in conjunction with the preferred tenderer.
Open Tendering:This type of tender is open to anyone to bid. An advertisement is usually places in various
relevant trade magazines and on the internet inviting tender offers from interested
contractors.
The different objectives that might affect the tender might affect the tender price.
There are a great many factors that can affect the level that contracting company will set its
tender offer for a particular contract. These can include (but not limited to):

Sub-contract and supply packages


Profit element
Potential variation
Quality of tender document
Standard form of contract
Amended standard form or bespoke contract forms.

It is therefore my suggestion that open tendering method should be adopted for this
project. Because of the followings:

It gives the opportunity for all firms including relatively unknown but capable ones
to tender.
Since there is no restriction, they can be no change of favouritism in drawing up a
list of tenders
It prevents firms in area from forming an exclusive clique to keep up prices.
Above all, open tendering should secure maximum competition and therefore the
lowest process.

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M4 Explain how the method of tendering chosen matches the nature of this project.
Tendering is the process by which bids are invited from interested contractors to carry out
specific aspect of construction work. It should adopt and observe the key values of fairness,
clarity, simplicity and accountability, as well as reinforce the idea that the apportionment of
risk to the party best placed to assess and manage it is fundamental to the success of a
project.
As we are aware the two most commonly used methods of tendering are single-stage
selective tendering or two-stage selective tendering. Both involve the invitation of tenders
from firms on a pre-approved or ad hoc list, chosen because they meet certain minimum
standards in general criteria such as financial standing, experience, capability and
competence. The competition element of the tender is provided on the basis of price and
quality. The main difference between the two is that in the two-stage process, the contractor
becomes involved in the planning of the project at an earlier stage, so the tenders are
submitted on the basis of minimal information, and in the second stage the employer's team
will develop the precise specification in conjunction with the preferred tenderer. This
method is favoured in more complex projects, where the contractor may have significant
design input.
The principle of tendering is to ensure that true competition is achieved, as it is evaluated by
applying certain criteria. These criteria may be expressed in terms of financial matters,
comprising a simple assessment relating to tender sums, or more complex financial
evaluation, including consideration of projected costs over the life cycle of the completed
project. It could also address other non-financial factors such as time and proposed methods
or levels of capability; or sometimes a mixture of both collectively referred to as a
'quality/price balance' or 'matrix'.
In order for this to be achieved, however, each tenderer should be able to bid on an equal
basis, meaning that they must receive the same information and most importantly that this
information should be sufficient in content and accuracy to allow them to properly assess
the implications and bid accordingly.
In the public sector, failure to follow fair and transparent procedures can lead to automatic
challenges that may lead to petitions. In some countries there are agencies established to
ensure fair play among the bidding companies, ie in Nigeria there is Bureau for Public
procurement. This may result in damages, or the contract being set aside, or both. While
this may not apply equally in the private sector, it is sensible to adhere to these principles, if
only to make the process itself easier to follow.
The two most commonly used methods of tendering are single-stage selective tendering or
two-stages selective tendering. Both involve the invitation of tenders from firms on a preapproved or ad hoc list, chosen because they meet certain minimum standards in general
criteria such as financial standing, experience, capability and competence. The competition
element of the tender is provided on the basis of price and quality. The main difference
between the two is that in the two-stage process, the contractor becomes involved in the
planning of the project at an earlier stage, so the tenders are submitted on the basis of
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minimal information, and in the second stage the employer's team will develop the precise
specification in conjunction with the preferred tenderer. This method is favoured in more
complex projects, where the contractor may have significant design input.
Considering the nature of this project, it is simple construction work that does not require
any complex or sophisticated construction technique. There may not necessarily require
restricting the process to few selected contractors.
The reasons stated above, are the factors that influences my decision to choose open tender
for this project.
D3

Choose a software estimating package and describe how it could be used for this project.
Evaluate fully the usefulness of the package chosen.
Construction estimation is a tedious job as it requires the estimator to work with engineers,
first reviewing blueprints or conceptual drawings to determine the machining operations,
tools, gauges, and materials that would be required. The next step is that the estimator
prepares a parts list and determines whether it is more efficient to produce or to purchase the
parts, which requires him to ask for price information from potential suppliers. Then the
estimator prepares time-phase charts. Using all of this gathered information the estimator
then calculates the standard labor hours necessary to produce a specified number of units.
Standard labor hours are then converted, to which factors for waste, overhead, and profit to
yield the unit cost in dollars are added. The estimator then compares the cost of purchasing
parts with the firm's estimated cost of manufacturing them to determine which is cheaper or
more economical.
However construction estimation can be easily done in a timely fashion by the use of
estimating software. Computers play an important role in cost estimation because estimating
often involves complex mathematical calculations and requires advanced mathematical
techniques. Today new and improved software has led to more efficient computations,
leaving estimators greater time to visit and analyze projects. A large number of computer
aided cost estimation software systems are now available. These estimation software ranges
in sophistication from simple spreadsheet calculation software to integrated systems
involving design and price negotiation over the Internet.
Some of the common features of computer aided cost estimation software include databases
for unit cost items such as worker wage rates, equipment rental. If these rates change, cost
estimates can be rapidly re-computed after updating the databases. An export utility to send
estimates to cost control and scheduling software is very helpful to begin the management of
costs during construction. Another attractive feature is the version control to allow
simulation of different construction processes or design changes for the purpose of tracking
changes in expected costs.
Some of the Estimating Software Packages are: Bid4Build
QuickMeasure
Maxwell
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Clear Estimates
Sage Master Builder
Accubid

The software chosen for this project is Bid4Build


Bid4Build: Is one of the most advanced, easy-to-use, estimating software systems available.
It is designed for all sizes of general & subcontractors, and is well suited for all types of
residential construction, insurance estimating, home remodeling projects and many areas of
commercial construction.

P6. Identify the factors that can affect the level of tendering for main contracting, subcontracting and supply packages. Explain how these factors affect the pricing strategy.
The actual price and value of a project is obviously the main influence in the levels of
tenders. Interestingly though smaller projects cost more and large ones make more profit.
This is because small jobs have a large sum of overheads resulting in small profit
percentages and margins. Whereas larger projects have massive financial commitment from
the client. Also the number of contractors trying to secure work can have a massive change
on the level of tenders this is because if more people are bidding for the work then the more
the cost will rise this is the same anywhere its buy and demand also this has a knock on
effect. If others are bidding its human nature for companies to think if theres that many
people bidding for one job then it must be profitable so they decide to bid and the bidding
gets higher. Also the reputation of the companies has say on the levels of tendering in the
same way. If the big companies are bidding its good advertisement and its unlimited money
in some cases.
The location of a project has an effect on the tender price; this is because there are different
pricing climates in different countries this is the reason why the Middle East is booming in
construction-because its so cheap to buy land and materials out there meaning that buying
tender is relatively cheap to buying in the UK. Even if the project is in UK but still a
number of miles away from where the company is based. Transport will have to paid for by
the company meaning the overall estimation of how much the project will cost will be
higher. Moreover if the project is far away and it is long term then not only travel but
accommodation is needed and this costs a lot this is why contractors usually try and stick to
where they are based to relive these accommodation costs.
The location or city where the project is also very important if we think about a project that
is set out in the countryside then accessibility is going to be very easy but however if we
have a job that is to be done in a large city then its going to be substantially harder. Roads
may have to be closed to allow you to get you plant machinery in; this will cost money. It
is up to the contractor to time this perfectly to keep these costs down.
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The site of the project is also very important as per as tender cost is concerned if you take a
site that is already level and maybe has been used before for construction the chances are
your site will be ready to start work on but there are sometimes where groundworks must
be done first to level the site or clear this means hiring in plant and extra work costing
money.
There are many factors that affect the level of tendering for main contractor, subcontracting and supply packages will set their tender offer a particular contract. These can
include the followings:

Profit element
Potential variation
Quality of tender document
Standard form of contract
Amended standard form or bespoke contract forms.
Market condition
Availability of material
Availability of Labour
Location of site
Level of workmanship
Contractors Organisation
Height of contract
Level of Profit
Incentives
Technical difficulty (Height of the building)
Legislation

PROFIT ELEMENT:- The amount of profit a contracting company expects or wishes to make
can make a profound impact upon the level of tender bid, i.e if a company has a policy of
making not less than 20% on any job they bid for.
POTENTIAL VARIATION:- The likelihood of variations, and the size and type of variations
can affect the tender bid, it could that the initial bid is quite low and the contractor expects to
make significant profit on the variations to the contract.
QUALITY OF TENDER DOCUMENT:- If the information supplied to the bidding
companies is poor or incomplete, especially if the information is inaccurate, this will
significantly affect the level of tenders.
STANDARD FORM OF CONTRACT:- The nature of contract agreement also affect the
level of tender by different construction companies.
MARKET CONDITION: The volumes of work in progress in the area at a given point in time
affect the level of tender and tender cost. When the market is burying with many project, tender
price list are generally high. Most contractors are busy and competition is not keen. However
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during hassle times when there are few projects, contractors are anxious to outbid themselves so
as to stay in business, so tender cost tends to be lower.
AVAILABILITY OF MATERIALS: When required materials are readily available in an area
where a project is to be executed, materials will be cheaper than where they are not so available.
Generally, materials are cheaper where they are produced. Imported materials for similar reasons
are more expensive than locally produced materials. Therefore affect the tender cost.
AVAILABILITY OF LABOUR: In a situation where a type of labour such as mason or
carpenter is not available in a particular area, the contractor will have to offer some certain
inducement has to be given before they can migrate and this will certainly affect the level of
tender price.
LOCATION OF THE PROJECT SITE: When a project is located in an area that is less
hostile to operatives or workers, it affects the tender price.
LEVEL OF WORKMANSHIP: Naturally the higher the workmanship, the higher the tender
price. Some contractors employ highly skilled labour cost to execute their work, such skilled
labour cost money and certainly must affect the tender price.
CONTRACTORS ORGANISATION: the organizational structure of construction differs as
well as their categories; a smaller size may prize their tender lower than well-organized company
because of their various overhead costs.
LEVEL OF PROFIT: As mentioned earlier, contractors organization will affect the level of
profit charged on any given contract.
INCENTIVES: Often a time, the client may stipulate that the contract be completed between a
fixed periods. Such program may be too tight as such the contractor must introduce some
incentives in addition to working overtime, this also has an impact on the level of tender.
HEIGHT OF BUILDING: Obviously, the higher the building is, the longer it takes to reach
the point of execution of the work, also the necessity to employ the use of scaffoldings, tower
cranes.
Time means money and all this equipment cost money. In addition, certain extra allowance is
paid to workers working at higher altitude. Therefore all these cost will be passed unto tender
price.
LEGISLATION: Whenever government increases workers wages, all prices of labour used to
go up, so also the price of the materials. Therefore this will certainly affect the level of tender.

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References
1. Study pack
2. Introduction to quantity surveying in Nigeria

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