THE NEED TO STANDARDISE

THE BILL OF QUANTITIES

FOR CIVIL ENGINEERING WORKS

Presented by:
Sr. Dr. Mohd. Mazlan Hj. Che Mat, CVM, AVS
Executive Chairman
MCM Associates Sdn Bhd

CONTENT OF THE PRESENTATION

Functions of Bills of Quantities

Current Practice of BQ Production

Reasons and Effects of SMM

Why the Need to Standardise BQ Production

Conclusion

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 FUNCTIONS OF BILLS OF QUANTITIES

Facilitate cost estimating and Tender Analysis

Facilitate the assessment of payments

Facilitate accurate and fair interim valuations

Facilitate the evaluation of variations and also
estimating of expected variations

Facilitate the closing of Final Accounts

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FUNCTIONS OF BQ (Cont’d)

I envisage the significant near future functions of BQ will

be:
– Basis for Engineers to cross check their working designs
(Structure Analysis)
– Risk Analysis & Value Engineering
– Material, Plant and Labour scheduling
– Labour and Material Constant
– Financial Planning & Management and Cost Control for both
employers and contractors
– Costing pattern in relation of Gross Domestic Product (GDP)

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 THE CURRENT PRACTICE

The production of BQ for Civil Engineering works

varies from one organisation to another

The current BQ format is not standardised

Some ambiguities in the BQ description of items

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THE CURRENT PRACTICE (Cont’d)

BQ produced depends on the person(s) involved

in the preparation – if the person is very
meticulous, the document produced would be
more detailed and thorough and vice versa

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REASONS AND EFFECTS OF SMM

SMM allow greater standardisation of BQ format

BQ based on SMM are more consistent, work
adequately itemised consistent level of details

Coding system permit estimating, valuation and
cost control to use the same numerical
references

Source: Assoc. Prof. Sr. Hajjah Sabaria Hassan (2009)

RESEARCH ON CESMM (UK)

Succeeded in producing BQ
– More realistic relationship with methods of working
and the cost carrying out the works

Easier to compile

More beneficial to the contractor

Better reflection the costs involved

Serve other purpose more effectively
Source: Assoc. Prof. Sr. Hajjah Sabaria Hassan (2009)

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 WHY THE NEED TO STANDARDISE BQ
PRODUCTION

To promote efficiency in the project implementation

To provide uniformity of documents produced

Things are easier to expect when they are consistent

Helps contractors produce more accurate tenders

Can reduce the resources that contractors need to use to
perform tedious tasks, therefore keeping the tender
prices low

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WHY THE NEED TO STANDARDISE BQ

PRODUCTION (Cont’d)

Reducing disputes arising from measurement

discrepancies

Ease of computerisation – application of the
work classification

Reduce the ambiguities in the Bills of Quantities

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 WHY THE NEED TO STANDARDISE BQ
PRODUCTION (Cont’d)

The document incorporated into Mass Transit Railway Corporation of

Hong Kong (MTRC) contracts by Clause 83 that provides:
“Except where any statement or general or detailed description of
work in the bills of quantities expressly shows to the contrary, each
part of the bills of quantities shall be deemed to have been prepared
measured in accordance with the method of measurement set out in
the preambles to the bills of quantities”

Also, preamble clause 1.5 states:

“Standard method of measurement used in preparing BQ: Civil
Engineering Standard Method of Measurement, Third Edition
(CESMM3), reprinted with corrections 1992”

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CONCLUSION

Comment from Martin Banes in the CESMM3 Handbook (UK):

“An employer’s interest is best served by a contractor who is able to

base an accurate estimate on a reliable plan for constructing a
clearly defined project and who is able to carry out the work with a
continuing incentive to build effectively and economically despite
the assaults of those unforeseen circumstances which characterise
civil engineering works. Confidence in being paid fully, promptly and
fairly will lead to the prosperity of efficient contractors and to the
demise of those whose success depends more on the vigour with
which they pursue doubtful claims”

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THANK YOU