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.

Code of
Estimating Practice .

PREPARED BY THE ESTIMATING PRACTICE COMMITTEE

OF THE INSTITUTE OF BUILDING

AND AUTHORISED FOR PUBLICATION BY

THE NATIONAL COUNCIL OF THE INSTITUTE

@ 1973 The Institute of Building

First published 1966
Second edition 1968
Third edition 1973

100
The Institute of Building
Englemere, Kings Ride, Ascot, Berks, SL58Bi
Telephone: Ascot 23355
 Contents
Page
COMPOSITION OF ESTIMATING PRACTICE COMMITTEE 4
FOREWORD To THIRD EDITION 5
FOREWORD To FIRST EDITION 5

I TERMINOLOGY 7

1.01 Terms relating to management structure in the building industry 7

1.02 Terms relating to the estimating and tendering functions 7

.

2 INTRODUCTION 9

3 THE DECISION To TENDER 10

3.01 invitation to Tender 10

C 3.02 Inspection of Tender Documents 10

10
3.03 Management's Decision

4 COLLECTION OF INFORMATION 11

4.01 Estimate Programme 11

ENQUIRIES 11
4.02 Detailed Examination of Documents 11

4.03 Enquiries to Suppliers and Sub-Contractors 11

4.04 Information on Time to be given in Enquiries 11

P ROJ ECT A P PRECIATION 12
4.05 View Drawings 12

4.06 Visit Site and Locality 12

407 Determine Construction Methods 12

4.08 Pre-Tender Construction Programme 13

5 PREPARATION OF THE ESTIMATE 14

5.01 Summary of Procedure 14

ESTABLISHMENT Or ALL. IN RATES 14
5.02 Labour 14
5.03 Mechanical Plant 15
5.04 Material 16
5.05 Contractor's Own Sub-Contractors 16
BUILD-UP OF UNIT RATES 16
5.06 Principles 16
5.07 Labour Element 17
5.08 Plant Element 17
5.09 Material Element 18
5.10 Contractor's own Sub-Contractors 18
5.1 I Attendance on Nominated Sub-Contractors 19
5.12 Spot Items 19
5.13 Extension of Bills 19
COMPLETING THE ESTIMATE 20

5.14 Summary of Bills 20

5.15 Late Quotations 20
5.16 Project Overheads 20
5.17 Preliminaries and Conditions of Contract 21
5.18 Allowance for Firm Price Tender 21
5.19 Review 21
5.20 Report to Management 21
 6 'IHE TENDER 23
6.01 Adjudication 23
6.02 Submission of Priced Bills of Quantities 23
6.03 Records 23
6.04 Results 24

7 ACTION WITH A SUCCESSFUL TENDER 25

7.0 I Check Contract Documents 25
7.02 Distribution of Information 25
7.03 Cost information 25
7.04 Visits to the Site 25
7.05 Final Reconciliation 25

ACKNOWLEDGEMENTS 26

BIBUOGRAPHY 26

Appendices
A INFORMATION To BE GIVEN IN ENQUIRIES
A I Enquiries to Suppliers
< A2 Enquiries to Sub-Contractors

B EXAMPLE OF THE CALCULATION OF

AN ALL-IN HOURLY RATE FOR LABOUR

C MODEL FORMS
Table of Forms

D NETWORK DIAGRAM SHOWING PROCEDURE

FOR ESTIMATING AND TENDERING
 4

Composition of the Estimating Practice

Committee of The Institute of Building
at April 1966
Chairman:
L. I. Bradshaw, F10B

.
I
Deputy Chairman: a,
I. Tomlin, MioB ,

Members:
T. Appleton, MioB
N. Douglas, LioB
C. Walker-Smith, M A, F10B
A. D. Wilson (nominated by the Scottish Branch of The institute of Building) Q
F. H. Sunivan, F10B

Representing the National Federation of Building Trades Employers:

E. T. Sermon, F10B

Representing the Building Research Station of the Ministry of Techno ogy:

D. Bishop, Mc

Ex-officio Members:
H. V. G. Dunford, MioB
I. C. Lambe, MioB
E. I. Cook, BSC(ENG), F10B
P. M. Shepherd, F10B

Secretary :
M. I. V. POWell, MIOB

o
Foreword to the 3rd Edition
by JOHN N. CHIVERS, MBE, JP, F10B, President, The Institute of Building 1973-74

Since its first edition in 1966, this 10B publication, the Code of Estimating Practice, and its
attendant set of model forms have continuously proved of great value in educational estab-
lishments and within buttding firms. As expected, it has also proved of value to architects
and quantity surveyors in cost planning at the design stage.
A second edition was published in 1968, revised to incorporate minor changes to the text
and model forms, mainly as a result of comments received from the growing nilmber of
users of the Code. At the same time the all-in hourly rate calculation in Appendix B was
brought up to date.
Now, in 1973, further revision has taken place. These take account of the changes caused
by decimalisation of the UK currency, and by the adoption of the metric system (SI) in the
British building industry. Account has also been taken of further changes affecting the all-in
110urly rate calculation.
With these revisions the Code remains the most authoritative guide on estimating principles.
Whenever necessary, further revisions will be made to maintain the usefulness and relevance
o1' this work.
JOHN N. CHIVERS

Foreword to the 1st Edition

by GERALD A. 111LL, ODE. F10n, President, The institute of Building 196566

Estimating is a function of every building organisation, large and small. Our industrial structure and
our technology increase in complexity daily. Estimates reflect that complexity and must take account
of new factors of far-reaching consequence. A logical and systematic approach to estimatin is
therefore essential.
This Code has been prepared by the Estimating Practice Committee of The Institute of Buildin
whicli is the most authoritative body on estimating in Great Britain, h sets out to define an anal tical
system which can be regarded by practising estimators, lecturers and students as a guide to the princi Ies
of good practice.
We envisage that this Code will be revised from time to time to take account of industrial and
technological developments. We hope that it will be discussed fully and we shall welcome comment
and constructive criticism.
After a prolonged period of separation, the design and construction functions in buildin are
becoming more closely integrated. it is anticipated that the Code will be of value to architects and
quantity surveyors in developing an understanding of how an estintate is prepared. This is an essential
pre-requisite of a sound and informed approach to cost planning at the design stage.
The National Council of the Institute wishes me to express its 'appreciation of the work of the
Estimating Practice Committee in preparing this Code.
GERALD A. HILL
I Terminology
These are the meanings of tlie principal specialist terms used in this Code. Terms used ill 111cir
normal dictionary sense are not defined.

1.01 Terms relating to management structure in the building industry

Terms relating to management structure are lised with the meanings assigned to them in the
report Consiruciion Managemeni in Building. . Prese"I and rumre*.
. I

MANAGEMENT
The generic term 'management' means: 'The person carrying ou, the function of gcneral
management and responsible for making the decision to tender and for carrying out adjudication'.
ESTIMATING
Estimating is a technical function within the building commercial field.
COMMERCIAL
Concerned with the eXchange of goods and services.

ESTIMATOR
A person carrying out the estiniating function in a building organisation. Sucli a person niay
be a specialist or he may carry out the estimating function in conjunction with other functions,
such as quantity surveying, general management, etc.

1.02 Terms relating to the estimating and tendering functions

ADJ UDICATION
Adjudication is the action taken by management to convert an estimate into a tender.

ALL-IN LABOUR RATE

An all-in labour rate is a compounded rate which includes payments to opcrativcs and the
costs which arise directly from the employment of labour. Variable costs, such as travelling
time or abnormal overtime, are excluded.

ALL-IN MECHANICAL PLANT RATE

An all-in mechanical plant rate is a compounded rate which includes the costs originating from
the ownership or hire of plant together with operating costs.
ALL. IN MATERIAL RATE
The all-in rate for a material or component includes the cost of material delivered to site,
waste, unloading, handling, storage and preparing for use.
COST
The term cost, without qualification, means the estimated cost of the physical production of
work.
Nore. . Estimated cost must not be confused with historical cost; historical cost is the cost
of construction revealed only after the work has been executed.

COST RECORDS
Records of historical cost and notes of the conditions prevailing when such cost was incurred.

Cons!n, ctio" M@"@geme"t in Build^^g: Present and Fur", e published by the Board of Building Education in 1965
Obtainable from The institute of Building at t1.50 per copy, post free. (^1.00 to members of the institute).
 8

GENERAL OVERHEADS
The cost of administering a company and providing off-site services.
The allocation of general overheads to projects and to the company as a whole is decided
by management as part of management policy.

PROJECT OVERHEADS
The cost of administering a project and providing general plant, facilities and site-based services

MATERIAL
Material or components.

TENDER DOCUMENTS
Documents submitted for the information of tenderers; documents, such as specifications, might
be included which would not necessarily become contract documents if the tender were accepted
.
,,

TENDER FIGURE
.
The sum of money forming part of the tender.

TENDER
The sum of money, time and other conditions required by the tenderers to carry out the specified
building work.
o

^
 2 Introduction

This Code is intended to provide an authoritative guide to good practice in estimatin for build'n
work.
it is important to distinguish between 'Estimating' and 'Tendering'.
'ESTIMATING' is the technical process of predicting costs of construction.
'TENDERING' is a separate and subsequent commercial function based u on the estimate.
The responsibility of estimators should be limited to the proper preparation of the estimated cost
of projects. Management is responsible for. providing information on previous costs, roduction
outputs, building techniques and clerical assistance which are essential pre-requisites of o0d d^timatin
practice. They are also responsible for the conversion of estimates into tenders and for obtainin work
for their organisations. '
This Code is concerned primarily with Estimating. The formal steps in convertin an estimate ' t
a tender are outlined to give a coherent picture, but the commercial and policy factors which influence
the offer made are not discussed.
An estimate must be prepared in a way that is explicit and consistent and which takes account of
methods of construction and all circumstances which may affect the execution of work on the ro'ect.
it is believed that such a sound estimate can only be achieved when each operation or item is anal sed
into its simplest elements and the cost estimated methodicalIy on the basis of factual information.
it is expected that the nTethods described will be suitable for use by those estimatin for ever t
of building work. Some, whose work is in limited fields, may be able to sim Iif the rocedures, b t
the essential sequence of tasks and the ways in which information is sought and collated will not
be changed.
The use of ordered and logical methods of estimating can have important and far-reachin effects.
The extent of possible future demands on resources can be readily ap reciated. The estimat ,
conjunction with the project programme, provides a means of measuring the financial conse uences
of any delays that may occur during the execution of the project. Comparisons can be made between
estimated and actual levels of productivity and control action taken when required.
Estimators should work in close association with construction management. The basis on wh'ch
estimates have been prepared should be explained and information allowed to flow freel in both
directions. in the past, estimating has often been surrounded by an urinecessa aura of secrec .
Attention is drawn to the fundamental principle that an estimate should be re ared net, that ' , t
should be an estimate of cost (1.02). Project overheads (1.02) should be added aftef construction methods
and a programme have been determined and the total value of the measured work has been obtained.
Allowances for risk, general overheads (1.02) and profit should be added by management at the time of
adjudication. The way in which these allowances are incorporated into the priced Bills of Quantities
is the subject of a policy decision.
it can be seen from the network diagram 'Procedure for Estimating and Tendering', (Appendix D)
that the processes fall logically into five discernible stages. These stages form the sub'ects f S t'
3 to 7 of the text which follows:
SECTION 3 Management decides whether to accept or decline an invitation to t d
SECTION 4 Estimator gathers the information required and familiarises h' it 'th th
project.
SECTION 5 An estimate of the cost of the project is prepared.
SECTION 6 Management adjudicates the estimate and submits a tender.
SECrlON 7 if the tender is accepted, all relevant information is assed to con t t'
merit and information on actual cost is fed back for guidance in future estimatin .
The text assumes that Bills of Quantities measured in accordance with the Standard Method of
Measurement of Building Works have been provided by consultant quantit surve ors. If h B'11
are not provided, quantities must be taken off by the estimator before the rusedures r d d
in this Code can be used. Due allowance must be made in estimatin for an
measurement.
 10

3 The Decision to Tender

3.01 Invitation to Tender
The document A Code of Procedure for Selective Tendering* recommends that when tenders
are required for a building project, outline details of the project should be sent to a pane o
selected contractors in order to ascertain which firms would be able and willing to tender.
When such an invitation is received, management should consider it promptly and intimate
a decision to the client or architect within the'stipulated period. in making the decision, t e
organisation's known work load must be considered in relation to its total resources.
if the invitation is accepted, full tender documents should subsequently be received
3.02 Inspection of Tender Documents
As soon as tender documents arrive they should be inspected by the person who wi I e re
sponsible for the preparation of the estimate to ensure that all necessary information is given
These questions should be asked :
(a) Is sufficient time being allowed for the proper preparation of an estimate ?
(b) What are the Conditions of Contract? is it the Standard ICT Form of Contract (curien
edition) - have any alterations, if any, been stated and reasons given.
(c) Are the general arrangement drawings included ?t
(d) Are the operating conditions defined clearly? Or will further information be needed on
such matters as : stages in which work is to be executed
timing
access to the site
restrictions on hours during which work may be done
dangerous or unpleasant conditions
(e) What is the value and extent of the project and what is the main contractor s own
contribution likely to be ?
(f) Is the design well developed or have the documents been prepared hastily .
(g) Have the Bills of Quantities been prepared in accordance with the Standard Method of ^

Measurement of Building Works? it not, what method has been used?

(h) it the bills of quantities incorporate clauses in accordance with the National Building
Specification, are they given in full as recoinmended by NBS Limited.
If it is found that more information is needed, the architectt should be asked whether it can
be made available and if so at what time and in what form it will be given
An Enquiry Record Form (Appendix C, Form I) should be completed to summarise for
management all that is so far known concerning:
(i) the client and consultants
(ii) the value of the project
(iii) the Conditions of Contract

3.03 Management's Decision

Management must decide whether a tender is to be submitted. The information given on the
Enquiry Record Form will affect the decision. As levels of commitments change from day to
day, it is necessary to reconsider the project in relation to certain and expected construction
commitments and the estimating work load.
it it is decided to accept the invitation to tender, the procedure for the preparation of an
estimate described in Sections 4 and 5 of this Code should be commenced. If it is decided to
decline the invitation all documents should be returned immediately to the architect with a
letter giving the reason.
Enquiry Record Forms should be filed to form a register of all invitations to Tender that have
been received

* A Code of Procedurejbr Selecti've Tendering. Revised Edition 1972. Published by the National Joint Consultative
Committee of Architects, Quantity Surveyors and Builders. Obtainable from the Royal Institute of British Architects,
66 Portland Place, London W. I
* A Code of Procedurejbr Setoc, ipe Tendering Appendix B, item b. t or supervising officer
 4 Collection of Information
4.0 I Estimate Programme
Time allowed for tendering is generally limited. it is essential to determine in advance certain
key dates in order that the tender can be submitted on time. The most important dates are:
(a) Latest date for despatch of enquiries (4.03,4.04)
(b) Latest date for receipt of quotations (5.03, Son, s. 05)
(c) Visit to the architect's office (405)
(d) Visit to the site (4.06).
(e) Adjudication meeting (6.01). . .,

it is also necessary to arrange for discussions with those who will advise on construction
methods, programme and plant (4.07,4.08). .

ENQUIRIES

4.02 Detailed Examination of Documents

The Conditions of Contract, Bills of Quantities, general arrangement drawings and specification
should be examined in detail. Any onerous or unusual conditions should be noted for discussion
at the adjudication meeting (5201,6.01 I). Any discrepancies found between one document and
another should be brought to the attention of the quantity surveyor and clarification obtained
from either him or the architect as soon as possible.
it is desirable to keep a record of the index numbers of drawings received with the tender
documents (302,701). This information is most conveniently noted on the adjudication report,
(Appendix C, Form 10), which should be compiled progressiveIy throughout the preparation
of the estimate.
The examination of the 'Bills of Quantities should be made page by page. The references of
all items for which quotations will be required should be noted on mark-up sheets (Appendix
C, Forms 2 and 3), for the information of those who will send out en uiries 4.03 .

4.03 Enquiries to Suppliers and Sub-Contractors

Materials and the work of sub-contractors will together account for a large part of the value
of the project. To ensure accuracy in estimating, it is essential therefore to exercise close control
over the preparation of enquiries.
Enquiries should embody all relevant information to enable technicalIy accurate quotations
to be submitted and they should state clearly the terms and conditions upon which the quo-
tations are being invited. Details of the information which should be given are set out in
Appgn_dix A. If enquiry documents are photo-copied from the actual tender documents (in-
cluding Bills of Quantities), there can be no risk of the mis-understanding of vital technical
factors due to the omission of parts of descriptions or to the use of unconventional abbreviations.
It is recommended that limited numbers of suppliers and sub-contractors are asked to quote
for each item or section of the work. This accords with the principle of selective tendering for the
main contract (3.01).
4.04
information on Time to be given in Enquiries
in enquiries, suppliers and sub-contractors should be given an indication of the approximate
time when their goods or services would be required on site. This matter is particularl
relevant when deliveries have to be staggered or work executed in phases. in order that the
data given can be as accurate as possible, it will be necessary to prepare an outline construction
programme. (This outline programme should not be confused with the main pre-tender con-
struction programme (4.08).)
The outline programme should be compiled on the basis of the following information :
(a) Contract commencement and completion dates (3.02)
(b) Client's requirements concerning the order in which stages of the work are to be coin-
pieted (3.02)
(c) Work to be sub-let by the main contractor (4.02)
 12

(d) Work to be done by nominated sub-contractors

(e) Any key items to be provided by nominated suppliers
(f) Bulk quantities of work to be done by the main contractor e. g. excavation, concrete
brickwork, drainage and other major structural work. it is particularly important to
note bulk quantities when there is more than one set of Bills or when the Bills are in
elemental form (4.02)

PROJECT APPRECIATION
V

4.05 View Drawings

An early visit should be made to the office of the architect, and, when necessary, to the offices
of other consultants. in estimating, it is helpful to have met the people concerned with the design
aspects of the project.
Detailed' drawings, reports of site investigations and any other available information should
be inspected. Notes' and sketches should be made of all matters affecting either construction
methods or the likely cost of work
A critical assessment should be made of the apparent state of the design process. A well
developed and well-documented design will be indicative of a smooth-running and therefore
possibly profitable project. A design which is obviously ill-conceived and incomplete may
be the cause of delays and disputes during construction and allowance will have to be made
for this in the tender (5,201). An adverse report might lead to the reconsideration of the ,
decision to submit a tender (3.03). (>
if good practice has not been followed and the general arrangement drawings were not in-
duded with the tender documents and have not subsequently been supplied to tenderers, they
too must be inspected (302). Details and dimensions, particularly of items such as scaffolding
should be noted (5.16)

4.06 Visit Site and Locality

A visit must be made to the locality of the project and to the site. A comprehensive report
(Appendix C, Form 4) should be prepared on all matters affecting cost, methods and location
of site. The visit' may be made by the estimator, or representatives of construction management
or both. The site report should be regarded as a means of communication. The main points
to be noted are
(a) Position of site in relation to road and rail transport facilities
(b) Names of local and statutory authorities
(c) Topographical details of site
(d) Works of demolition and temporary works to adjoining buildings
(6) Accessability ; possible layouts (4.07)
(f) Ground conditions in relation to excavation (4.07)
(g) Facilities for disposal of soil (4.07)
(h) Services - water, sewerage, electricity etc o
(i) Security
a) Labour situation in the area (5,074)
(k) Availability of materials
(1) Weather conditions Of high rainfall etc)
(in) Police regulations
Sketch plans should be made of the site to show salient features and possible layouts
Detailed inspection must be made of spot items and Works on Site (5.12), dimensions
taken and notes made to assist in estimating their cost

4.07 Determine Construction Methods

When the estimator has become thoroughly acquainted with the project and before the calcula
tion of estimated cost is commenced, the project should be discussed with those who would be
responsible for managing construction and for providing plant and other services if the tender
were successful
Alternative methods of construction, sequences of work and site layouts should be evaluated
and one method selected to be a basis for the estimate. Requirements of labour, site staff
plant and site facilities must be determined (5.16)
it must be decided
(a) Whether labour is likely to be available from within the organisation or whether it would
 be necessary to recruit for the project. (This might involve additional costs, (5,022,
5,074)).
(b) Whether nTcchanical and non-nTechanical plant already owned by the organisation is
suitable and likely to be available or whether it would be necessary to purchase or hire
for the project (5.03)
(c) Whether it would be desirable to sub-let to specialists any further work such as excava-
tion, formwork or scaffolding.
11 it is decided that plant would have to be purchased or hired from an external source, quo-
tations must be obtained. Similarly, if it is decided to sub-let further work, enquiries must be
despatched without delay (403).

4.08 PreTender Construction Programme

When the construction methods, strength of labour force, type of plant and sources of the
major materials have been determined (4.07), the outline programme should now be expanded
I
(4.04) into a comprehensive pre-tender construction programme. '

The procedure for preparing a programme is outside the scope of this Code.
 14

5 Preparation of the Estimate

5.01 Summary of Procedure
The preparation of an estimate can be divided into three identifiable stagcs:
(a) The CStablishment of all-in rates of key items, for cxample:
A rate per hour for the employment of labour
An operating rate per hour (or per day, per week etc) for an item of plant
A cost per unit for material delivered and unloaded at the site. This process involves the
comparison of the various quotations and the selection of the one to be used in thc
CStimate (3.02 - 5.05) '
(b) Use of the all-ill rates so established and. production standards to calculate unit rates
to be set against the items of the Bills of Quantities. Rates from sub-contractors quota
tions have to be transferred to the main Bills and the Bills totalled (5.06 - 5.13)
(c) The calculation and addition of project overheads and the preparation of reports for
consideration by mallagement (5.14 - 5.20).
it is wise to calculate the unit rates for groups of items as soon as all the relevant information is
available. Cost of labour and ^iant can usually be estimated aftcr tile sitcvisit hasbeciimade(406
and the pre-tender construction programme agreed (408). In the cases of materials and sub
contractors, it will be necessary to await the receipt of quotations (4.03).
ESTABLISHMENT OF ALL-IN RATES

.02 Labour

5,021 All-in Hourly Rate

The labour element of cost is made up of wages and emoluments paid to operatives and
statutory costs which are incurred automatically as a result of the employment of labour
The main items to be considered are:
(a) The basic or current wage rate (for either craftsman, labourer or Inechanical plant .

awl*, - OA;',~^ operator)

',.^- 3-,\I~ {" (b) Payments required by the Working Rule Agreement (plus rates, tool money, dirt money
' b,$<64*.
IL. ' , L_
etc)
(c) Allowances to cover guaranteed time
(d) Sick pay schemes
(e) Employers' liability insurance
(f) 1'1aining levy
<1)
(g) National insurance
(h) Pensions The costs of these items are affected by
(i) Holidays with Pay schemes absenteeism. Allowance must be made for this
(j) Allowances to cover redundancy
(k) Wage related benefits.

These items may be resolved into all-in hourly rates for craftsmen, labourers and plant
operators.
in order to take account of seasonal variations, holidays and other disruptions, the year
should be used as the basic unit and an average rate calculated.
it is convenient to include in the all-in rate allowances for these costs:
co Lead money and supervision time for trades' foremen and chargehands
(ii) The cost of non-productive overtime which is worked as standard company practice
(iii) Plant operator's servicing time.
A fully-worked example of the calculation of an all-in hourly rate is given 'in Appendix B

' it gang costs are used (5,071) this element may be omitted and separate all-in rates calculated for trades' forernen
chargehands and gangers.

,
 15

5.022 Variable Labour Costs

The labour cost of a pro^Ct niay include:
(a) Travelling time
(b) Fares
(c) Subsistence allowances
(d) Abnormal overtime to In Get time targets
(e) Attraction money to obtain labour in remote areas or where unpleasant conditi0 '11,
or niay be, encountered.
Note: Cost of items (a), (d) and (e) above must include the allowances mentioned in para 5,021
which are based on a percentage of additions to total emoluments.
it may not be possible to determine these factors accurately at this sta e in est' t'
They may therefore be excluded from the all-in hourly rate and added later in ro' t
heads (5161). This procedure is assumed in this Code.

5.03 Mechanical Plant

5,031 All-in Mechanical Plant Rate .

it is most important that estimates should include sufficient allowances to cover th f

mechanical plant. When estintating for larger projects, it is helpful to coni ile fron th
struction programme (408) a schedule showing each item of plant needed and tlIe Ien th of tim
it would be wanted on site. in this way, no cost should be overlooked.
A basic operating cost is required for each machine. This may be obtained from f h
published schedules of hire charges allowing a discount where appro riate, a hirer *
or from those in the organisation responsible for plant, or it may be necessar to est' t h
cost from first principles.

5.032 Estintating Standing Cost from First Principlesf

When mechanical plant is to be purchased for the project and sold at coin let' , th
should include allowances for:
(a) Purchase price less expected resale value after allowing for disposal cost
(b) Return on capital .
(c) Administration and depot cost
(d) Labour for maintenance and related ovcrhcads
(e) Materials for maintenance
(f) insurances
(g) Road fund licence.
When plant is already owned, the cost should include allowances for:
(i) A capital sum based on the purchase price and expected economic life
(ii) Return on capital
(iii) Administration and depot cost
(iv) Labour for maintenance and related overheads
(v) Materials for maintenance
(vi) insurances
(vii) Road fund licence.

5,033 Running Cost

Additions must be made to hirers' quotations or standing cost (5,032) for runnin co t ' I d' :
(a) ErnolunTents of the operator (5,021)
(b) Fuel
(c) Oil
(d) Grease
(e) Other consumable stores
(Appendix C, Form 5).

A procedure for the comparison and selection of quotations is not described f I t. Th

as for materials (504). P ' 'P CS are e same
f These are general headings for guidance only. The proper calculation of such costs inv I d
P ant engineering and cost accountancy which are outside lire scope of this Code.
 16

5,034 Erection and Transport

No attempt should be made to include in an all-in rate any allowances for the erection and
dismantling of plant or for transport of plant to and from the site. These items should be
included in the project ovt3rheads (5,161).
-

5.04 Material
The receipt of quotations in answer to enquiries (4.03) should be recorded methodicalIy. When
all the quotations invited for a particular item, or when the last date given for their return has
been reached, they must be compared and one quotation selected for use in calculating the all-in
rate.

Even though precise information was given in the enquiries (4.03), it is necessary to Labulate
the information from quotations in order to make a proper comparison and a wise choice.
Note the answers to these questions :
(a) Does the material comply with the specification ?
(b) Will the material be available to meet the requirements 6f the construction programme ?
(c) Are there any special delivery conditions ?
(d) Are there any onerous conditions applying to the quotation ?
(e) For what period does the quotation hold ?
(f) Does the quotation allow for small quantities, if requircd ?
(g) What are the trade and cash discounts offered ?
(Appendix C, Form 6).

5.05 Contractor's own Sub-Contractors

O-*
:

The procediire for the comparison and selection of quotations from sub-contractors is similar
to that described for suppliers of materials (5.04).
Note the answers to these questions : .

(a) Does the work described in the quotation comply with the Bills of Quantities and the
specification?
.

(b) Are the unit rates consistent throughout the quotation ?

(c) Are the rates realistic and coniparable with those of competitors ?
(d) Is the sub-contracting organisation financially capable of undertaking the work at th^' I
sum quoted ?
(e) In the case of labour only sub-contractors, is the organisation bona fide with regard to
the payment of PAYE tax, insurances, training levy, etc?
(f) Will the sub-contractor be able to meet the requirements of the construction programme ? '
(g) Will the sub-contractor be acceptable to the construction team ? t

(h) What services are required from the main contractor ? . 'I

(i) Do the conditions of the quotation comply with the terms of the main contract ?
(j) Are there any onerous conditions applying to the quotation ? .

(k) What are the discounts offered ?.

(1) Is a schedule of rates included with the quotation ?
(Appendix C, Form 7).

BUILD-UP OF UNIT RATES

,

5.06 Principles

5,061 Elemental Analysis

In calculating unit rates for inclusion in the Bills of Quantities it is essential that careful con- :
sideration is given to every factor which may influence tlie cost of the work. Some of the most '. ..,
,
common factors are given in paragraphs 5.07 - 5.11 overleaf.
Unit rates for the measured items in the Bills will consist of elements for labour, plant and. I:
materials. it is recommended that each element is estimated separately so that total elemental ,
costs for labour, plant and materials can be providcd for management (5,141 and Appendix ':
C, ForIn 10, pages 4 and 5). .

...
.

5,062 Production Standards

The recorded cost of similar work encountered on previous projects will be a major source:I
of the information used in estimating. it is important to remember that cost depends upon
many variables, and attention should therefore always be paid to the conditions which prevailed
.".

-.
,
,

.\
,

.,
 17

when a particular cost was incurred. Those conditions must be conipared critical I with th
cxpected on the pro^Ct now being considcred. Differences between CStiiiiatcd and act , I
on previous projects should be analysed and ally obvious coliclusions noted (7.03).
When a type of work is being inct for the first time, there will be no previous cost for uida
Specialists should be consulted whenever possible. Techiiical information froin outside sources
Inay have to be used; in this, great caution should bc excrciscd.
Proper allowances must be made for inccntive payments cither by incrcasiii 111e all-in
labour rate (5,021) or by using an appropriateIy modified production standard.
5.07 Labour Element

5,071 Labour cost is estimated in tcrms of the all-ill hourly ratcs previously established (5,021).
it is recommended that gang cost should bc used in preferencc to individual cost for conc t' ,
bricklaying, plastering and similar bulk work (Appendix C, Form 8). The timc to be allowed
for all operation or item will depcnd lipon many factors. d

5,072 The drawings, specification and Bills of Quantities (4.02,4.05) will illdic;11c:
(a) The quantity of work to be done
(b) The quality of finish and standard of workmanship required
(c) Whether operations are repetitive
(d) Whether excessive or detailed setting out will be needcd
(e) The degree of accuracy and tolerances requircd
(f) Whether the design of the work is intricate or straiglitforward
(g) Whether 111e operation is likely to bc with ill tlic cxperience or exist illg o eratives, or
hth
whethcr 'I'
special instruction or training will be necded or-' '
WITetlicr 111ere will be a,
need t
engage specially-trained operatives.

5,073 The Construction Programme and Method Statement (408) will indicate:
(a) The time of 111e year when work is to be carried out and hence likely seasonal conditions
(b) Whether work will be continuous or intermitteiit
(c) The degree of inter-dependence of trades and operations
(d) The pattern of production and the likelihood of buildiiio up to maxiiiiuin OSsible at
(e) Gang structure, i. e. relative proportions of supervisory skilled and unskilled o eratives.

5.074 The Visit to tile Site alld Locality (4.06) will nave SIIowii :
(a) Physical conditions likely to be encountercd
(b) Site layout and operating and storage facilities
(c) Likely skill and expericnce of local labour.
5,075 Cost Records
When considering labour cost records, it is important to note 111c ICvels of incentivcs wh' h
paid to acliieve a particular cost and to in akc sucli adjtistments as may be required (7.03).
5.08 Plant Element

5,081 Mechanical plant cost is estiiiiiitcd in terms of the all-ill Talcs reviousl t. b!"h d
(5,032). The tiine to be allowed for an operation will depend upon sucli factors as:
(a) The quantity of work to be dollc
(b) The physical conditions of the site
(c) Likely seasonal conditions at various stages in the work
(d) whether work will be contiiitious or in tel'mittcnt
(c) Tlic pattern of production and thc Iikcliliood of building up 10 niaximum iossiblc rates
(f) Thc typc and likely experience of oneratoi. s.
Average outputs should be assesscd and any necessary allowances made for jiltcrin'it t
working. Cost records should be consulted (703).

5,082 Costs of some mechanical plant not included in Unit Rates

When mechanical plant is used only on specialised and limited operations (sucli as excavation
and soil disposal) no dimculty should be experienced in allocating a reasonably accurate estiniate
of its cost to the measured items of the Bills in the manner described above (5,081).
 18

But when an item of mechanical plant is to scrvc a number of trades or DPCrations (for
example a crane, or a hoist, or a concrete Inixer being used in concrete work, brickwork and
drainage work), the allocation of its cost to measured itcms can only be made arbitrarily. 11
is therefore recommended that the cost of such plant should be included not in tile rates but in
the project overheads (5,161).

5,083 Non-mechanical Plant

Allowance must be made for small tools and non-incchanical plant, either in the rates or un
project overheads (5,161). The principles of allocating cost between rates and project overheads
are the same as for mechanical plant (5,082). The estimated cost of non-mechanical plant above
the trivial level should be based on one of the published hire schedules and appropriate discounts
allowed.

5.09 Material Element

,
.

5,091 The ntaterial clement should include allowances for:

(a) Tile sum quoted by the supplier (or tlie stated PC. sum) after the deduction of trade
discounts (504)
(b) An allowance for wastc
(c) Subsidiary fixing materials
(d) Packaging and crates if these are to be chargcd, or the cost of returning them to tile
supplier ^
(e) Labour for unloading and storing. *

5,092 Quantities of Materials

The quantity of material allowed should, whenever possible, be based upon experience gained
in previous projects. Data given in textbooks, periodicals and manufacturers catalogues should
be examined criticalIy and used with caution.

5.10 Contractor's own Sub-Contractors

5,101 Before the rates for sub-contractors' work are transferred fro!IT lite selected quotations
(5.05) to the main Bills, the quotations should be re-examined to determine precisely what
allowances, if any, have been illcluded for the following items: .

(a) Unloading
(b) Protection of materials and equipment, inclLiding providing . any necessary security
arrangements
(c) Transfer of goods from stores to point of work*
(d) Provision of storage facilities
(6) Provision of othces, messrooms and other accommodation
(f) Provision of plant, equipment, access, liard standings and tile 11kc Q
(g) Provision of special scaffolding or other means of acccss
(11) Provision of water, electricity and telephone
co Protection of finished work
a) Supply of subsidiary materials.
An addition must be made to cover any of these itenis for which 110 allowancelias been made
by the sub-contractor and which is expected to attract a cost. This may be done in several ways
co By increasing the relevant unit rates
(ii) By adding a fixed percentage to the whole of the sub-contractor's quotation
(iii) By making an addition subsequently in the project overheads (5,161).
When the allowance is needed for items. such as unloading, or the supply of fixing materials
alternative co should be used but for general site facilities (storage, teleplionc, power etg)
alternative (iii) is preferable.

5,102 Attendance
Any work of attendance which the main contractor is required to carry out should be analysed
and the cost estimated on the basis of similar experience on previous projects (7.03)

* Although includcd here for accuracy, these factors are part of the laboLir eleiiicnt, (5.07) and 111ust bc taken Into
account whcn considcring the total labour ICquirciitcnts for thc project.
 19

s. I I Attendance on Nominated Subcontractors

5,111 The tender documents (302) should include sufficient information to anow the value
of work of attendance on nominated sub-contractors to be estimated accurately. If, in the
course of estimating, it is found that adequate information is not given and if efforts to obtain
it are not successful, then the matter becomes an item of risk and should be taken forward
for discussion at the tender adjudication meeting (5,201,6,011).
Attendance on nominated sub-contractors may fall into two sections, i. e. the provision of:
(a) Specific services (5.1 12)
(by General facilities and assistance (5.1 13).

5.1 12 Specific Services

'Buildcr's Work' should be estimated under the hcadings of labour, plant and materials and the
cost allocated to the measured items of attendance and project overheadsin accordance with the
I
principles followed for general work (5.06 5.09).
.
5,113 General Facilities and Assistance
Allowances may be needed for the following items :
(a) Unloading
(b) Protection of materials and equipment, including providing any necessary security
arrangements
(c) Transfer of materials from stores to point of work*
(d) Provision of storage facilities
(e) Provision of offices, messrooms and other accommodation
(f) Provision of plant, equipment, access and hard standings and the like
(g) Provision of special scaffolding or other means of access
(h) Provision of water, electricity and telephone
(i) Protection of finished work
(j) Supply of subsidiary materials
(k) Return of crates and packages
(1) Clearing away rubbish.
The cost of such items may be included in several ways:
co By making a lump-sum allowance against a general item of attendance
(ii) By expressing attendance as a percentage of the P. C. sum
(iii) By making an addition subsequently in the project overheads (5,161).
When the allowance is needed for items such as unloading or the supply of materials alternative
co should bc used. When general site facilities are required, a, ternative (iii) is preferable. When
attendance consists of many small and indeterminate general items, alternative (ii) is most
appropriate.
Cost should be estimated on thc basis of similar work on previous projects (7.03).
12 Spot Items
For estimating purposes spot items may be treated in several ways including:
(a) Approximate quantities can be taken off and unit rates used to calculate a lump-sum
estimate for the item
(b) The description can be analyscd into its constituent operations and an estimate of cost
made for each.
in both methods the cost of labour, plant and materials should be separated in accordance
with the general principle for unit rates is. 06).
The work should have been inspected thoroughly at the site visit (4.06) and, where necessary,
construction methods agreed with construction management (4.07). Adequate allowances must
be niade for storage, temporary works, access, transport (to be included in project overheads
(5,161)) and making good.
If Bill descriptions are not clear, or if further information or measurements are re uired, it
niay be necessary to re-visit the site.
5.13 Extension or Bills
When all the unit rates are complete, the draft Bills should be extended and to taued before the

Sec foolnotc on page 18.

 20

additions are made for project overheads and other allowances (^. 16 - 5.18,6012). e trans er
of rates to the Bills from working theets, extending and totalling should e callie ou
risk of clerical error is minimised. Mechanical aids should be used whenever possi e. ,
COMPLETING THE ESTIMATE

5.14 Summary of Bills

5.141 The values of 111e followiiig sections of the work should be cxtracte ront re ,
Bills and noted in tile appropriate places on the adjudication report (5.20").
(a) Main contractor's labour Furthcr analysed into trades or stages
(b) Main contractor's plant allocated to rates of work if required by managcment.
(c) Main contractor's materials
(d) Main contractor's own sub-contractors
I
(c) P. C. sums for nominated sub-contractors
(f) P. C. sums for noniinated suppliers ,
(g) Provisional sums*
(h) Contingencies*.

5,142 The following information may also be required by Inariagement all s ou ere ore
be noted :
(a) Amounts included for attendance o11 0w'n and nominalcd sub-contractors
(b) Amounts included for caslT discounts. These are a possible source of margin o ., e
project.

5.15 Late Quotations

Any late quotations for tlie supply of nTaterials, hire of plant or wor o an -con r ,
now be reviewed (5.04). Any consequent adjustments to the estimate should e in a e in g
adjustment columns of the adjudication report.
5.16 Project Overheads
.

5,161 During the preparation of the estiiiiate, items will have been note or u or
in project ovcrheads. Thesc nlust now be brought forward (5,022,5,034,5,082,5.10 , ).
5,162 Summary of Main lienis
A comprehensive schedulc of project overheads is given in APPCn ix , orm
each item given in the schedule snOuld be estiinated separately. T e main groups
(a) Site staff (all people whosc cost has not bceii included ill rates, \vliatcvcr t eir me o
of remuneration)
(b) Cleaning site and clearing rubbish
(c) Site transport services
(d) Mechanical plant and hoisting (allitcms not previously illcluded in unit rates ( . )
(e) Scaffolding and gantries
( f) Site accommodation
(g) Small plant, including hand tools
(h) Temporary services and re-instatement
(i) Miscellaiicous
(j) Temporary water installatioii
(k) welfare, first aid and safety provisions
(1) Final clearance and handovcr
(in) Defects liability cost
(n) Transport I>f men to site (5,022)
(0) Abnormal overtinie (5,022).
Allowance must be made for non-recoverable increases in the cost of items, suc as, site s a , p ..
fuel, electricity, water, telephone, stationery in all estimates both on firm price an uc ua io .
* Provisional sums are kept separate from contingencies because a provision sum ' p. '
that the sum 1'0rms part of the true value of the project. There is an OPPosi e imp ' a '
 5,163 Method of Estimating
The cost of many of the iteins will vary in direct proportion to the contract period and tilelen th
of time that staff, plant and equipment would be rcquired on site. This information on time is
readily available from the construction programnie (4.08).
The total estimate of the cost of project overlieads is transferred fronl the schedule (5162)
to the Final summary (5,202).

17 Preliminaries and Conditions of Contract

The Preliminaries section of the Bills of Quantitics and tile actual Conditioiis of Contract silould
be scrutiiiised to ensure that all items carrying a nionetary value have been included in the
estiniate.
The cost of bonds, insurances and water for 111e works should not be added until after
adjtidication if these items have to be shown in the Bills as a percentage of work value (601).
.

d
5.18 Allowance for a Firm Price Tender
\\ hen a firin price tender is to be given, an assessment must be made of likely \ariations in
cost during the proposed contract period (3.02).
Rccords of rates of wages, other labour costs and Ginolunicnts (5021) and the cost of basic
matsrials will indicate trends. Note should be taken of industrial negotiations and staiutor
measures which niay affect levels of wages, the financial obligations of employers or the costs
of basic commodities. Consideration must also be given to indirect charges such as tariffs, fuel and
freight.
Regard must be paid to economic and political situations at nomc and abroad and the state
of home and world markets.
The quotations of the contractor's own sub-contractors should be re-examined to ensure that
they are funi price offers and that there are no risks of claims for increased cost.

5.19 Review

Before the estimate is presented to management for adjudication (6.01) it should be carer1111y
reviewed.
The calculations for all-in rates (5.02 - 5.05) should be examined and checks made to ensure
that the correct figures were used in the build-up of unit rates (5.06 - 5.12). Each page of the
Bills should be inspected to ensure that no item or part of an item has been omitted. The total
unit rates (506) should appear reasonable and be correct for the unit of measurement. Particular
attention should be given to the major items in each trade and to those items in wliich the
materials specified are unusually costly. Any inaccuracy in rate build-up will have been magnified.
it is important to ensure that, when the tinie to be allowed for the project is given by the
Client, it is realistic in relation to the estimated labour cost and the number of men (407) which I
it would be physically possible to have working on the site.
The construction programme (4.08) should be reviewed criticalIy to ensure that no major
problem has been over-looked and that the method is the best that could have been devised
in the time available.
7<4""'
The original estimates and final costs of previous projects of a similar nature should be
examined and an opinion formed of the likely profitability of the project under consideration
(7.05).

5.20 Report to Management

5.20 I Contents
A concise report should be prepared by the estimator for management, which should include:
(a) A brief description of the project (4.02)
(b) A description of the method of construction (4.07,4.08)
(c) Note of any unusual risks which are inherentin the project and which are not ade uatel
covered by the Conditions of Contract or Bills of Quantities
(d) Any unresolved technical or contractual problems (4.07,5.11)
(e) An assessment of the state of the design process and the possible financial consequences
thereof (4.05)
(f) Note of any major assumptions made in the preparation of the estimate
(g) Assessment of the profitability of the project (5.19,7.05)
(h) Any pertinent information concerning market and industrial conditions (4.06)
 22 ,

(i) Any need for qualification of the tender or for an explanatory letter
(j) The terms of quotations from own sub-contractors which. have been included in the.
estimate (505)
(k) The time for which the tender is to remain open for acceptance (302).

5.202 Accompanying Documents

The report should be presented to management, together with :
(a) Summary of the estimate (including project overheads (514,516))
(b) Site visit report (406) ,

(c) Firm' price risk calculation, when necessary (518).

A model Adjudication Report is shown at Appendix C, For111 10.

,
.

..

,
 23

he

6 The Tender
6.01 Adjudication

6.01 I Matters to be Considered

The adjudication of an estimate to produce a tender is the responsibility of management (20).
During adjudication, management should give consideration to :
(a) All substantive items in the project reports (5.20)
(b) The Conditions of Contract (3.02,4.02)
(c) Contractual risks (including the Firm Price Tender Risk (5.18))
,

(d) The terms of quotations from 6wn sub-contractors (5.05,5.20)

(e) TITe capital required for the project, including such matters as:
work in progress, materials on site and
temporary works
investment in plant (4.07,5.03)
level of retention monies (3.02,4.02)
possible under-valuation
possible additional requirements due to introduction of VAT
(f) Technical and managerial manpower requirements (4.07)
(g) Work load (303)
(h) The market (4.06, 5.20)
(i) Reputations of the client, architect, quantity surveyor and other consultants (4.05,4.06).
6,012 Additional Costs to be Included
Additions should be made to the estimated cost for:
(a) The financial implications of the items in 6,011 above
(b) Risk
(c) General overheads including additional administrative costs due to introduction of VAT.
(d) Profit.
An arrowance should be made for overheads and profit required on costs recoverable under a
fluctuations contract, which are only recoverable NETT.
The actual tender figure can now be determined. This decision is made within the framework
of company policy.
After allowance has been made for any percentage items (water for the works, insurances,
quantity surveyor's fees etc (5.17)) on the summary page of the Bills of Quantities, the tender
form can be completed and photo-copied.
Note: Tenders submitted under the ICT current Form of Contract will not include VAT. in certain
instances, tenderers may be required to give a provisional indication of the amount of VAT which
the employer will be called upon to pay, all in accordance with para 8 (2) of ICT Practice Note 17.
in instances of small repair jobs etc, where there is no Standard Form of Contract, the VAT
content (if given) should always be indicated separately.
6.02 Slub, ntssion of Priced Bills of Quantities
it priced Bills of Quantities are to be submitted at the time of tender (or if requested later),
management must decide how the difference between the total of the net rates in the draft Bills
(5.13) and the agreed tender figure (6,012) is to be shown. The method chosen will depend on
individual preference.
Examples of possible methods are:
(a) Unit rates are increased by an agreed percentage, so that the whole difference is included
in the measured items
(b) The unit rates are left net and the whole difference is included as a percentage on the
final summary page
(c) The unit rates remain net and the difference is included in the Preliminary Bill
(d) Any combination of these methods.
~
 24

6.03 Records
it is recommended that a record is kept of all tenders submitted. Particular care should be
taken to preserve the Adjudication Report (incorporating the estimate summary) (5.20,6.01)
and all notes made at the adjudication meeting.
The calculations for all-in rates (5.02 - 5.05) and unit rates (5.06 - 5.12) should be retained as
they may be useful for a limited period in estimating for further similar projects

6.04 Results
When the result of the tender is known, the record should be completed when possible with a
full list of the tenders submitted and a percentage comparison made with the lowest (or the
accepted) tender (Appendix C, Form 11).
Suppliers and sub-contractors who submitted quotations should be informed of the results
promptly.
.

,
 7 Action with a Successful Tender
7.01 Check Contract Documents
Before contract documents are signed, they must be cliecked thoroughly from all aspects
(technical, legal etc). Those who were responsible for estimating should ensure that:
(a) The drawings are those which were circulated with the tender documents (402)
(b) The dates, penalties etc, given in the Appendix to the Conditions of Contract arc those
stated in the tender documents (302,402)
(c) The Bills have been copied correctly from those originally submitted (6.02),
it is recommended that this comparison of documents is made on the Adjudicatiofi Report
(4.02, Appendix C, Form 10). .
If the tender was for a fixed price (518) and there has been any delay in acceptance, enquiries
should be made to ensure that there have been no changes which might necessitate reconsidera-
tion of the tender.

7.02 Distribution of Information

The following information as appropriate should be made available immediately to those WITo will
be responsible for construction and purchasing:
(a) Site Visit Report (4.06)
(b) All-in rate calculations (5.02 - 5.05)
(c) Unit rate calculations (5.06 - 5.12)
(d) Calculation of project overheads (5.16,5.17)
(e) Pre-tender construction programme (408)
(f) Report made to management (5.20)
(g) Adjudication Report (601)
(h) Quotations received, noting those used for estimating (5.03 - 5.05,5.15).
Although decisions made at the time of estimating concerning methods of construction,
layouts, organisation, suppliers and sub-contractors should never be made binding on those to
be responsible for construction, it is important that the reasons underlying such decisions and
choices should be explained fully.

7.03 Cost Information

During construction, information should be obtained on the labour and plant cost of major
items or stages in the work (5.06,5,075,5081), on quantities of materials used (5.06,5092), and
on cost of attendance on sub-contractors(5.06,5,102,5,113). This information is essential for
control purposes and for guidance in future estimating. Records should include reference to
all prevailing conditions in order that they may be interpreted correctly in the future (e. g.
levels of incentives and bonuses being paid)* (5.06).
7.04 Visits to the Site
Those who were responsible for preparing the estimate should make periodic visits to the site
during the progress of construction in order to:
(a) Assess objectiveIy the soundness of decisions made during the estimating process
(b) Maintain a constant awareness of the conditions which prevail on sites.
7.05 Final Recoinci"ation
At the completion of a project, the estimate and tender should be reconciled with the final
cost and final account and the reasons for the results ascertained for guidance in future estimating
(S. 19).

The collection and collation of data on a large scale is a specialised function involving the use of statistical and work
study techniques and is outside the scope of this Code.
 26

Acknowledgements *

.
The Estimating Practice Cornmittee withes to express its indebtedness to:

The Working Party, con^isting of I. Tomtin (Chairman), D. Bishop, N. 09uglas and FH. Sunivan which
produced the first draft of the Code. Special responsibility was undertaken by Mr Bi op or e
Network Diagram and by Mr Douglas for the model forms.
Howard A. Close, M A, Legal Adviser to the National Fed, elation of Building Trades Employers who advised
on legal and contractual matters.

The Institute Secretariat, especially MJY. POWell who gave extremely able assistance to o e or '
Party and the Committee during all stages of the preparation of the Code.
LJ. BRADSHAW
Chairman

The Technical Coriumittee of the Estimating Section wishes to record its debt to the or ing ar y,
comprising HY. G. Dunford (convenor), D. R. Mudd and E. Slutsr, who were responsible for revising
the Code. - May 1973

Bibliography
I . National Joint Consultative Committee "A code of procedure for selective tendering
of Architects, Quantity Surveyors and Builders: 1972, RIBA.

2. institute of Building: "Construction management in building: present

and future" 1965 10B

"Information required before estimating 1970

3. institute of Building:
10B.
>

A number of titles publislied under the Estimating Information Service are also of relevance. Detai s can
obtained from the Institute.

,.
APPENDICES
 28

Appendix A
INFORMATION To BE GIVEN IN ENQUIRIES

A1 Enquiries to Suppliers
Enquiries to suppliers should state
(a) The specification of the material
(b) Quantity of the material
(c) The likely 'delivery programme, i. e. period during which}he supplies would be needed
and daily or weekly requirements*
(d) Address of the site ' ,
(e) Means of access
(f) Any traffic conditions and restrictions affecting delivery
(g) Period for which the quotation is required to remain
open for acceptance
firm
(h) Date by which quotation is to be submitted
(i) The person in the main contractor's organisation to whom reference concerning the
enquiry should be made

A2 Enquiries to Sub-contractors

A2.01 Enquiries to sub-contractors should state : *

(a) Quantities of work extracted from the Bills and any relevant specification clauses ;
(b) Whether the quotation is to be for labour only or for labour and materials :
(c) Plant and equipment to be provided by the main contractor and what the sub-contractor
will have to supply for himself
(d) Anticipated commencement and completion dates for the sub-contract work, work pro
grammes and sequences
(e) Brief description of the proposed structure
(f) Address of the site
(g) Name of the client
(h) Names and addresses of the architect, quantity surveyor and, when applicable, con
sultant engineers
(i) Form of contract under which the sub-contract would be executed
O) Relevant information from the Appendix to the main contract .-'
(k) Any general conditions, specifications or drawings to which the sub-contractor wou ,
be required to adhere
(1) Address and times at which all documents could be inspected
(in) Whether a fixed or variable price sub-contract
(n) Terms of payment to the sub-contractor
(0) A statement that the conditions of the enquiry would automatically form part of a
sub-contract entered into
(p) Period for which the quotation is required to remain open for acceptance
(q) Date by which quotation should be submitted
(r) The person in the main contractor s organisation to whom reference concerning th ,.

enquiry should be made

. if time is to be the essence of the contract, this must be stated clearly

 29

A2.02 Enquiries should also define the responsibilities of sub-contractors ill rcspcct of:
(a) Purchasing of materials
(b) Off-loading and storage
(c) Cleaning and protection of work
(d) Disposal of rubbish
(e) Loss or damage to sub-colltractor's mater tills
( f) Compliance with specificatioii
(g) Inspection by the employing authority
(h) Payment of fees
co Insurances
co Any further sub-letting.

ed
 30

Appendix B
*

NOTE: it is emphasised that the calculations in the following are EXAMPLES

EXAMPLE OF THE CALCULATION OF AN ALL-IN HOURL

LABOUR .

Bl Summary of Procedure ,

An all-in hourly rate should be built up in accordance with the principles given in paragrap s
5021 and 5,022 of this Code. Details vary according to the trade of the operative (w e er
craftsman, labourer or mechanical plant operator), the finn, the area and the industrial an ^ga
conditions in force at any time. The calculation shown below should be regarde on y as a ypi a
example. it is on an annual basis and could apply to all projects for w to en ers a
submitted.
The calculation must be amended each time there is a variation in the cost o one o
factors included or when further factors are introduced. Alterations should e in a e as soo *

variations are notified, althougli there may be an interval of time before they become e ective.
The whole calculation should be reviewed from time to time.
There are four stages in the calculation:
(a) Determine the number of effective hours which an operative is expected to work during
a year.
(b) Calculate the cost per year for wages and each of the items of cost listed in the text
(5021).
(c) Total the individual costs obtained in (b).
(d) Obtain a rate per hour by dividing the total cost (c) by the number of hours (a).
Alternatively, in the case of very large projects it may be desirable to make a specia co cu a I
based on the anticipated construction period.
NOTE: All rates in the foUowiiig examples have been worked to the nearest t Tee ecima p \

-.

.,
 31

B2 Calculation

B2.01 Number of hours worked during the year

The number of hours worked during the year will depend upon the hours worked per week
during the summer period and the number worked per week ' during the winter period with
adjustments for annual holidays, public holidays and days lost for sickness

SUMMER PERIOD
39 weeks at 49 hours per week 1911 hours
Less

2 weeks annual holiday*

@ 49 hours 98
4 days public holiday*
@ 9 hours 36
I
134

1777

Total for Summer Period 1777

WINTER PERIOD
13 weeks at 44 hours per week 572
Less

I week winter holiday 44

2 days public holiday
@ 8 hours 16
5 days sickness*
@ 8 hours 40
100

472

Total for Winter Period 472

Total for year 2249 hours

> Note The Annual and Public Holidays have been taken as listed below and the total number of
days are as agreed in the National Working Rule. in some regions the actual day to which
the Holiday is allocated can vary according to local tradition

amual Holiday (3 weeks) Public Holidays (6 days)

2 weeks in summer Good Friday
I week in winter Easter Monday
including Christmas Spring
day and Boxing day Late Summer
+ I day in winter (1972)
+ I further day in winter (1973)

or cost of holiday pay see item a) page 34

or cost of sick pay see item (d) page 33
 32

Revisions have been agreed and issued by the National Joint Counci or g g
Guaranteed Guaranteed
With effect on and from Standard
minimum minimum
Basic
Grade A bonus weekly
payment earnings
wage rate A

14 September 1972
Craftsman is26.00
t

Labourer $22.00

25 June 1973 $29.60

$27.00 Is 2.60
Craftsman L25.20
f. 23.00 L2.20
Labourer ,
.

10 June 1974 .
$32.00
L29.00 t3.00
Craftsman
f. 2.60 L27.20
Labourer $24.60
*

NB. The I O June 1974 figures are subject to adjustment as follows:

"Threshhold (Cost of Living) Adjustment

The standard basic rates of wages effective from 25 June 1973 sha e su j j . . ,
effect on and from I October 1973 on the basis of any percentage nett rise a OV ,.'
Retail Prices Index between the figure published in August 1972 an t e Ig p
1973. The adjustment shall be by the addition of 20p a week to t e re es o . ,
labourers for each full 0.75% rise in the index beyond 8}5%. The addition wi Con ,
with the rates effective from 10 June 1974. "

,^

^
 33

B2.02 Annual Cost

(a) Basic Wages
Hours worked per year 2249
Less
Time lost for inclement weather
Allow 2%* 45

Actual hours worked 2204

Hourly rate of pay is

At 25 June 1973 guaranteed minimum $29,600 per 40 hour week

t 0740 per hour
Cost of basic wage is 2204 x to. 740 t1630.960

(b) inclement Weather I

Payment will be made at normal hourly rate for time lost due to
inclement weather .
I
Time assumed lost is 45 hours
Cost of inclement weather time is

45 x to. 740 t 33.300

(c) Non-productive Overtime^

Overtime rates are paid for time worked in excess of the normal workin ho
co SUMMER PERIOD

Day Mon Tues Wed Thurs Fri Sat Sun Total

Hours worked 9 9 9 9 9 4 49

Hours to be
paid at flat 8 8 8 8 8 40
time rates

Hours to be
paid at time
5
and a quarter

Hours to be
paid at time 4 4
and a half

Hours to be
paid at
double time

Total
non-productive 0.25 0.25 0.25 0.25 0.25 2 3.25
time

aries accordin to t
Project r , Season o year, geograp ical area, etc; use an average allowance and adjust on
jMay vary, see para Bl.
by cu, Or Over line WOr e as normal practice; the cost of any additional overtime worked to meet the
 34

126.75
39 weeks @ 3.25 hours per week
Less
2 weeks annual holiday @ 3.25 hours = 6.50
4 Bank Holidays @ 0.25 hour 1.00

7.50 7.50

Total for Summer Period 119.25 hours

(it) WINTER PERIOD

Mon Tues Wed Thurs ETi Sat Sun Total

Day A

8 8 8 8 8 4 44
Hours worked

Hours to be
8 8 8 8 8 40
paid at flat
time rates

Hours to be
paid at time
and a quarter

Hours to be
4 4
paid at time
and a half
*

Hours to be
paid at
double time

Total
2 2
non-productive
time

.*

26
13 weeks @ 2 hours per week
2
Less I week affected by Holidays

Total for Winter Period 24 hours

Total for whole year = 119.25 + 24 = 143.25 hours

Cost of non productive overtime is
143.25 hours @ ILO. 740 106,005

(d) Sick Pay

Assumed number of days lost due to sickness is 5
Statutory* rate of payment is ILO. 750 per day
$3,750
Cost of sick pay is 5 x to. 750

if a private insurance scheme is used instead of the statutory scheme, the cost of premiums chould be include4;^
instead of the statutory allowances
 Trade Supervision
Assume:* (1) that tilere is one trade foreman for every eight tradesmen
(ii) that half his time is spent working and half on supervisory duties.
(in) that his rate of pay is ^0075 per hour above the trade rate
Hourly cost for the gang is:
I trade foreman @ ^0740 + too75 '08/5
8 tradesmen @ to. 740 x 8 ^5920

t6.735

Allowing for supervision time, the effective hourly cost of gangis:

- x L6.735 t7.131

Effective hourly cost per operative is

.

f. 7131
to. 792
9

Additional hourly cost of supervision is

to. 792 - to. 740 too52

Hours worked per year = 2249

Cost of Trade Supervision is
2249 x toos2 L116.94

(f) Working Rule Allowances

Operatives exercising special skills or working in particular circumstances are entitled to
special allowances under the Working Rule Agreement of which tool money is a common
example.
Say allowance for WR Allowances
required is to. 200 per week.
Number of weeks worked during year is
52 3 weeks annual holiday 49
Cost of Working Rule Allowance is
49 x to. 20 $9,800

(g) Training
Allow for industrial Training Board Levy, + say allow
1.5%^ for this example. See Summary
(h) National Insurance
Employer's contribution to National insurance
(includes Industrial Injuries, National '10sO per week
Health and Redundancy Fund)
.'. Cost per year is 52 x f. 1050 $54,600
(1) National Graduated Pensions**
For employer's contributions to cost of National Graduated Pension Scheme contributions,
allow $1.850 per week (varies according to level of earnings but including incentive payments. )
.'. Cost of National Graduated Pension is
49 x t1.850 t90.650

fj) Holidays
(i) Cost of annual holiday stamp t1.800 per week
Cost of Holidays with Pay is
49 x 1:1800 L88.200
(Ii) Paid Public Holidays
6 x 8 hours x to. 740 f35.520

in vary from firm to firm; use firm's normal arrangements in basic calculations and ad'ust
t any Industrial Training Board Grant is received, this may be credited to the trainin co t ' I
* S based on Numbers and Type of Operatives employed and should be adjusted in accordance w'th k - f
ompany and the current rate.
Ubstitute cost of private pension scheme if firm has contracted out of the national schem .
 36

(k) Severance Pay and Sundry Costs

For the following indeterminate factors allow 1.5% on labour cos s
co Severance Pay
(b) Loss of production during notice
(c) Absenteeism (the cost of National insurance, pensions and ho I ays \Ii p y ' g
read over a smaller number of working hours than the norma c ' '
(d) Abortive insurances (paying stamps for operatives who work on on ay i
have cards stamped but who are absent subsequently).
(e) Allow for additional holidays and nationally proclaimed ho I ays.
I See Summary

(1) Employers Liability and Third Party Insurance

For Employers Liability and Third Party insurance, allow o
.

L
B2.03 Summary
.

1630.960
, (a) Basic Wages 33.300
(b) inclement Weather 106.005
(c) Non-productive overtime 3,750
(d) Sick Pay 116,948
(e) Trade supervision 9800
(1) Working Rule allowance
1900.763

28.51 I
(g) Training. Add 1.50% 54,600
(h) National Insurance 90,650
(i) National Graduated Pensions 88,200
co Holidays (i) Annual 35,520
00 Pad Public Holidays
2198.244

32.974
00 Severance pay and sundry costs. Add 1.50%
2231.218

(1) Employers Liabitity and Third Party insurance 44,624

Add $2,0096
2275.842
Annual cost per operative

B2.04 Hourly Rate

of time lost for inclement
Number of productive hours worked in year (after deduction ,:

weather) is 2204.

2275.842 L1.033 per hour*

All-in hourly rate is 2204

*The etcentage allowed will vary from firm to firm according to expelienc .
IThe percentage will vary according to the firm, the insurance company an
*For adjustments in respect of incentive payments, see para. 5.06 *
 37

~~..~

Appendix C
MODEL FORMS

These model forms have been designed to stimulate ideas and to illustrate ways in which estimating
procedure can be systemised. it is hoped that readers will be able to use or adapt them to suit the
requirements of their own organisations.
Form No. Title .

Purpose ,

EIER/'I Enquiry Record To summarise all that is known about the

project when the documents are received to
enable management to make the 'accept' or
'decline' decision.

^IMEj2 Data for Materials

J
To note the items or trades in the Bills of
Enquiries
\
EISCEj3 Data for Sub-Contractor Quantities for which quotations will be
required.
Enquiries

E/S R/4 Site Visit Report A comprehensive statement of conditions; to

be completed at the site.

EjRPj5 All-in Working Rate for The calculation of opcrating (as opposed to
Plant
standing) costs of mechanical plant.
EjSQj6 Summary of Suppliers'
Quotations To tabulate the terms of competing quotations
BISCQj7 Summary of Sub-Contractors' in order that a sound choice can be made.
Quotations

EjGq8 Gang Costs The calculation of all-in hourly rates for gangs
of men.

E/P0/9 Schedule of Project To facilitate the costing of all items which

Overheads have not been included in the unit rates.

E!ES/10 Adjudication Report and To summarise for management the CStimated

Estimate Summary costs and Conditions of Contract and to
record the calculations and decisions niade at
the tender adjudication meeting.
E/CR/11 Comparison of Results Analysis of the market.

,
 IRY RECORD
,>16'
PROJECT Date Tender Documents Received

TimejDat. to Submir

APPROXIMATE VALU E

Location

Archicect

ENQUIRY

DETAILS

Consultant En8ineer, Quantity Sur, eyor

Brief Description of Work involved

DESCRIPTION

Nominated Sub. Contractors Nominated Suppliers Provisional Sums ContinB. nci. ,

VALUE OF
P. C. AND
PROVISIONAL
SUMS
INCLUDED

Form of Conrr. c. Note any onerous CondiL on, or Alter allon to standard For, n

CONTRACT

Def ECts Liability Period % for Profess, onal Fees Date for Possession Date for Completion

iquidated and Ascertained Damages Period of Delay PC. Sums for which Contractor may Tender

PARTICULARS
Period of Interim Certificates Retention Percentage
OF

APPENDIX
Period of Final Measurement and Period for Issue of Final Certificate
Valuation

ESTIMATOR'S COMMENTS PRICED BILLS To BE SUBMITTED

WRITTEN OFFER Delete 11 nor appl cable

TENDER FORM

NUMBER OF TENDERERS (IF KNOWN)

DECISION ACCEPT DECLINE

SIGNEDg

@ The Irisriru. e of Building. Form No. EIENl

 REFERENCE

PROJECT
SHEET No.
DATA FOR MATERIAL ENQUIRIES

SPECIFICATION B. Q. SPECIFICATION B. Q.
DESCRIPTION APPROX. UNIT DESCRIPTION APPROX

Bill QTY. Bill P. ,e Icem Bill P. ,e QTY.

Bill P. .. It. in P. ..

@ The Institute of Buildin. . FC, in No. EINE, '2

 PROJECT REFERENCE

SHEET No.

TRADE TRADE TRADE TRADE TRADE TRADE

@ Th. Institur. o1 Buildin, . Form No. E/SCE/3

 REFERENCE

PROJECT

,
,

. I

SITE VISIT REPORT

Any information which is given in

the tender documents should be
inserted before the site visit is
made.

SITE VISITED BY

DATE OF VISIT

n, titu. . of Building. Fo, in No. E/SRI4

 DISTANCE FROM SITE

NEAREST
TOWN I_, rob km

2 DISTANCE FROM SITE

N EAREST
RAILWAY
STATION
L^,<aS 04-^1,1 5.1, \-^^,^r"\ km

DETAILS OF
PUBLIC
TRANSPORT I
,

SERVING
THE SITE .

I
.

4
LOCAL a

CG_o as
AUTHORITY
' "'^, ( e, ,, Q I ,
,

DISTANCE FROM TIPPING

.,
5 DETAILS OF LOCAL Tips SITE CHARGE

km ,

DISPOSAL
OF SPOIL km ..

km

..

6
I' I. ,;- ,,, ,, , _ I* C

GIVE DETAILS OF TOPOGRAPHY

WOODLANDS. HEDGES. Low LYING
AREAS AND SURFACE WATER

ASCERTAIN FROM LOCAL

SOURCES IF SITE 15
LIABLE To FLOOD

>:-z<I N o
..

b v!. g ., .

C<EU, y , \,~A 0,114 o, f

, a^^\~10 c
EXISTING BUILDINGS ON SITE
GEN ERAL (CAN THEY BE USED FOR
OFFICES. STORES. .
WORKSHOPS. ETC. )
DESCRIPTION

*
OF SITE

"

IVo 61 VC
*

DETAILS

OF ANY OBSTRUCTIONS

PY

LOCAL WEATHER CONDITIONS

ARE MET. OFFICE
REPORTS AVAILABLE!

YESjNO
* 7

IF ANY SHORING ANDjOR

DEMOLITION
". UNDERPINNING REQUIRED To ADJACENT
OF EXISTING
BUILDINGS AND LIABILITY FOR
BUILDINGS
THEIR CONDITION

8 LOAD
DETAILS
WIDTH
CAPACITY

.
\
EXISTING ROADS .

ON SITE
\\ O
.

ACCESS
EXISTING ROADS
ADJACENT To SITE
To

< SITE

TEMPORARY ROADS
REQUIRED

"

'*"' I a. <1 ,,- \.' ,

I"

.
ACCESS _:,,~
I, 0, a.\-".!^4.I' ,
o a1^- C\A .\,, J;". ^-.*:'\-'
DIFFICULTIES L. ,
,!
UV\, }-9.11 b, t

STRATA EXPECTED To BE
I I' I L' ,:=I Ok^!-
FOUND DURING EXCAVATION
( ,- r*,*a <.,,*e':; ^,,,*:\^, 2. ".~ ,'\, to ^ ^ C\, 9 e, ^~c.
BOREHOLES EXISTING
BOREHOLES.
BOREHOLES REQUIRED
\:ESjNO
YES/N (IF YES GIVE NUMBER

EFFECT OF ADVERSE CLIMATIC -q, -

17. .,?, I -. ,.
CONDITIONS ON SITE .Q
OPERATIONS

SURFACE
WATER
DEPTH OF
TABLE ,
TIDAL
I'
SPRINGS. yE5jNO PUMPING
(IF YES GIVE REQU ED
GRO U N D ::. ES{No ..-
in in
IYES/NO NUMBER
INO
CONDITIONS
(STATE MAX.
DEPTH AND A" S:, Viva_ as aCC .P
LOCATION OF ANY EXISTING FOUNDATIONS.
STARRED ROOTS. ROCK OR ANY OTHER v- ^
MATERIAL LIKELY To BE
ITEMS)
FOUND IN GROUND.

STABILITY OF EXCAVATIONS

TIMBERING REQUIRED.

^*,,, 1-<>c\,,. 4. .(I. -e

ANY OTHER GROUND
DETAILS. I

^^,
^
 WHEN DISTANCE
10
SFRVICE EXISTING AUTHORITY AVAILABLE in CHARGES ,

I~'~'
FOUL .

MAIN DRAINAGE
- - -.
SURFACE ,

^^

WATER Lqqd> WCC!-,-v

SERVICES
~--.-.-
TELEPHONE
Y^,? Lap_^0 , ,
@ *CQ

GAS ,, IC2;\, *., ..-.-.

^.. 9 0.9 .

ELECTRICITY
'. Yea Y . e .it^^^ - ,-. .

is 3 PHASE SUPPLY
VOLTAGE
AVAILABLE YES1'!6';
,

11 Is SITE FENCED ^251 N O . WILL WATCHMAN BE REQUIRED YESj

.
LENGTH ,

WILL HOARDING BE
REQUIRED
.

^. E^/NO IF YES GIVE

HEIGHT
,

SECURITY SITE STORAGE REQUIRED

(E. G. COMPOUNDS,
BARRICADES, ETC. )

,
POLICE REGULATIONS . I' '
,,, ,
I
,

."

12 CRAFTSMEN LABOURERS
LOCAL RATES OF PAY

I
LOCAL METHOD OF PAYMENT
(E. G. BONUS. INCREMENT. 4
\

HOURS WORKED)

V*,\by/I CF-)
E a
ADDRESS OF LOCAL
MINISTRY OF LABOUR OFFICE
'^:. S\, CoA, ':^'"A ',- '^C^

,
I
' DETAILS OF LOCAL
LABOUR STRENGTH ,.

.,

,.,
DETAILS OF OTHER MAIOR
WORKS IN NEIGHBOURHOOD

LABO U R ,

MUST LABOUR BE
TRANSPORTED DAILY
I\'ES'I N O MUST A LABOUR CAMP BE BUILT
YE'1!*";
,
REPORT ON LODGING
FACILITIES L6'Co_^. Co-^ ,

I,

QUALITY OF
LABOUR AND LIKELY
\i
OUTPUT
,

CATERING FACILITIES

LOCAL TRADE UNION

ORGANISATION *,

.,
 13 TYPE a
S

,
~.

"b
11^
^Eb^^'.
MATERIALS

DETAILS OF
LOCAL
SUPPLIERS
AND
S UB
SUB
CONTRACTORS
CONTRACTORS

PLANT
HIRE

TRANSPORT

14

DRAWINGS
(SKETCH PLANS
To BE
ATTACHED)

15

ANY
OTHER
USEFUL
INFORMATION
16
,
..

.
I

"

SKETCHES

,
*

,
 16 CONTINUED

. I

SKETCHES

(:
 ~

PROJECT
REFERENCE
MECHANICAL PLANT

CALCULATION OF ALL-IN RATES PER HOUR SHEET No. OF

MACHINE
(TYPE AND
CAPACITY)

TYPE OF COST DETAILS E E DETAILS E e DETAILS E E DETAILS E E

HIRE OF
SOURCE SOURCE SOURCE SOURCE
MACHINE

I. .
co
o
U
U
Z
a
Z
<
I-
co

OPERATOR
Of not included
und. , 'HIRE')

FUEL .

I.
co
o LUBRICANTS
U
U (Oil and rrea, e)
Z
Z \
Z
=
.C

SUNDRY
CONSUMABLE
STORES

TOTAL ALL. IN COST PER HOUR

@ The Insti, ut, of Building. Form No. ElkP!5

PROJECT
REFERENCE

SUMMARY OF SUPPLIERS' QUOTATIONS SHEET No.

QUOTATIONS RECEIVED QuoT'N

MATERIAL QUANTITY REMARKS
USED
2 3 4 5 6

, No's
 su MMARY OF su B. co NTRACTORs' ou oTATioNs
PROJECT
REFERENCE

TRADE ENQ. LETTER USED

GROSS AMOUNT FIRM PRICE ALLOWANCE

DEDUCTION
DATE OF
(ABSTRACTED (IF REQUIRED
SUB. CNTRS QUOTATION Disc FOR NET AMOUNT TOTALS
FROM BILLS AND NOT INCLUDED
REF. NAME OF SUB. CONTRACTOR QUOTATION CONDITIONS AMOUNT % DISCOUNT FROM BILL
AND CHECKED) ABSTRACT
BY SUB. CONTRACTOR)
AMOUNT GROSS NET
, C , e % , L L

.
2

ESTIHATOR'S COMMENTS

@ The Institute of Buildi"g. Form No. E/SCQj7

 PROJECT REFERENCE

. CALCULATION OF GANG COSTS

CONCRETOR CONCRETOR BRICKLAYER. RATIO BRICKLAYER. RATIO CARPENTER LABOURER

FOR e FOR E FOR E FOR E FOR E FOR E

CANCER LEADING LEADING LEADING CANCER

...... CANCER
BRICKLAYER BRICKLAYER ...... CARPENTER

@ ..,..... @ ........ @..

@ ...... @, @...

GENERAL
MIXER DRIVER MIXER DRIVER BRICKLAYERS BRICKLAYERS CARPENTER
.
LABOURERS

@ ........ @. @ Ia,
@ ........
tt

CEMENT MAN CEMENT HAN LABOURERS LABOURERS PLUS RATES PLUS RATES

@ ........ @ ........ @.... @ ........

LOADERS LOADERS PLUS RATES PLUS RATES HEIGHT/DEPTH

CONDITIONS
*,........ @.. MIXER DRIVER MIXER DRIVER

TIMBERMAN
.

WHEELERS WHEELERS

64 ........ Ia

PLACERS PLACERS
\

@........ 6a

...... BANKSMEN BANKSHEN

fii . . . . . . . . @

TOTAL GANG TOTAL GANG TOTAL GANG TOTAL GANG TOTAL GANG To. 'AL GANG
COST PER COST PER COST PER COST PER COST PER COST PER
HOUR HOUR HOUR HOUR HOUR HOUR
~*.' , ,.... ." *
.. ,., ~. .. ,* . ..,, ..
.. I ". . , , . *.. .. 1.9. .~ -, . . ,. ...,..,. ~.,. .> .~,'\I .,' .. ., . . .. ,. ". .,,.~ ., ~. * ,,*.',' ......,~,' , ,~ ,*', ,-',' , , * , t I - . : ' ""
.,
, " , ,.. ..

^
 REFERENCE

DATE

"

o
= PROJECT

31

. I

SCHEDULE OF PROJECT OVERHEADS

,.

CONTRACT PERIOD

BASED ON PERFORMANCE PERIOD OF

. n, rimre of Buildin. . FC, in No. E/Pop

 INSURANCE FARES AND TOTAL PER
,
SALARY PENSION. ETC ALLOWANCES WEEK TOTAL
No. OF
No. DESCRIPTION
WEEKS
E E E E E

SITE MANAGER

GENERAL FOREMAN

FOREMAN

ENGINEER

CHAINHAN

CHECKERS

TIME KEEPER . I

STORE ICEEPER
.

CASHIER

WAGES CLERK

MATERIALS CLERK

SITE
STAFF PLANT CLERK

QUANTITY SURVEYOR

JUNIOR SURVEYOR

PROGRESS SURVEYOR
.

BONUS SURVEYOR

SAFETY OFFICER
,

PLANT FinER

TYPIST

RECEPTIONIST

WATCHMAN

CANTEEN STAFF

CLEANERS (office and canteen)

TOTAL To PAGE 7 OF ESTIMATE SUMMARY (FORM EiEs/101 ,

2
DESCRIPTION TOTAL
HOURS RATE

.
CLEARING SURPLUS MATERIALS

CLEANING OUT DURING CONSTRUCTION

.
CLEANING CLEANING OUT AFTER TRADES
SITE
AND CLEANING OUT AT COMPLETION
CLEARING
RUBBISH CLEARING RUBBISH
.

CLEANING AND MAINTAINING ACCESS ROADS

TOTAL To PAGE 7 OF ESTIMATE SUMMARY (FORM E/Es/Ion ,

3 TOTAL
DESCRIPTION HOURS RATE
E

TRANSPORT OF TEMPORARY ACCOMMODATION To AND FROM SITE

TRANSPORT OF MECHANICAL PLANT To AND FROM SITE

TRANSPORT OF SMALL PLANT To AND FROM SITE

TRANSPORT OF SCAFFOLDING To AND FROM SITE

SITE LORRIES

SITE TRACTORS AND TRAILERS

TRANSPORT
SERVICES DUMPERS (IF NOT INCLUDED IN RATES)

BUSES AND COACHES

VANS

STAFF CARS

TOTAL T PAGE 7 OF ESTIMATE SUM ARY (FORM E/ESjlO) ,

COST PER TOTAL

4 WEEK
MECHANICAL PLANT TYPE No. OF

E E

MIXING PLANT

CRANES

HOISTS

PUMPS
MECHANICAL
PLANT AND
HOISTING
11F NOT
INCLUDED ELECTRICAL GENERATORS
IN RATES)

NECHA ICAL PLANT SU TOTAL

LABOUR AND MATERIAL COSTS IN RECEIVING HOURS RATE

INSTALLING AND CLEARING PLANT

MIXING PLANT

CRANES

HOISTS

LABOUR SUB TOTAL

TOTAL To PAGE 7 OF ESTIMATE SUMMARY (FORM E/Esjio) ,

 ~

5 RATE TOTAL
DESCRIPTION MEASUREMENT QTY. UNIT No. OF PER
.,
WEEKS WEEK
..
E

EXTERNAL SCAFFOLDING

*,

*
.^

INTERNAL SCAFFOLDING
,,

SCAFFOLDING
AND
GANTRIES
.

.. FLY SCREENS

. ,

,
GANTRIES

SUB TOTAL

HOURS RATE
*
LABOUR COSTS IN ERECTING. DISMANTLING AND ADAPTING
..

TOTAL To PAGE7 OF ESTIMATING SUMMARY (FORM E/Esioj) C

* RATE PER
, ,
6 TOTAL
WEEK
DESCRIPTION SIZE No. OF UNIT
WEEKS E E

..
,
CONTRACTOR'S OFFICES

OFFICES FOR ARCHITECT. ENGINEER. CLERK OF WORKS

STORES
.

,
SANITARY

.,

CANTEEN

DRYING ROOM

FIRST AID
SITE ACCOM.
MODATION
FITTERS
11NCLUDING HIRE.
ERECTION.
MAINTENANCE
CHECKERS
& DISMANTLING)
CARETAKERS

SITE CAMP-Do RMITORiEs

-RECREATION

-ABLUTIONS

DECORATION

.
CARAVANS

BASES

FURNITURE AND FITriNGs

,

TOTAL To PAGE 7 OF ESTIMATE SUMMARY IFORH EjEsjio) C

7 TOTAL
.,
DESCRIPTION
E

SMALL
PLANT ALL SHALL PLANT (LADDERS. WHEEL BARROWS, TRESTLES. SHOVELS. SPADES. PICKS. TOOL BOXES. SLEDGE
HAMMERS. COLD CHISELS. EfC. ) ,

TOTAL To PAGE 7 OF ESTIMATE SUMMARY IFORHE E/ES/101 C

,
8 TOTAL .

DESCRIPTION
E .

ELECTRICAL SERVICE INSTALLATION

GAS SERVICE INSTALLATION .

TELEPHONE SERVICE INSTALLATION

WATER SERVICE POINTS (STAND PIPES)

STORAGE COMPOUND AREAS .

I

HOARDINGS
.

FENCES .

.,
SANITARY
TEMPORARY
SERVICES
ROADS
AN D RE.
INSTATEMENT
REINSTATEMENT OF PAVINGS
I

REINSTATEMENT OF KERBS

REINSTATEMENT OF GLASS

REINSTATEMENT OF SANITARY FITTINGS

REINSTATEMENT OF FIXTURES AND FITTINGS I

PLUMBING ~

.A

DRYING OUT WORKS

..

WINTER BUILDING
~

DRAINAGE OR DE. WATERING

,

TOTAL To PAGE 7 OF SSTIHATE SUMMARY (FORM E/Esjio) ,

..
TOTAL
9 .

DESCRIPTION
E

ELECTRICITY

GAS
*

TELEPHONE

STATIONERY

POSTAGE

MISCELLANEOUS FUEL (DRYING OUT. DRYING ROOMS)

.

LOCAL AUTHORITY FEES \

ELECTRICAl. FEES

GAS FEES
,,,

DISTRICT SURVEYOR'S FEES (IN LONDON) ,

RATES ..

SUNDRY EXPENSES ,

TOTAL To PAGE 7 OF ESTIMATE SUMMARY (FROM FORM E/Es/Icy C

,
 10
DESCRIPTION TOTAL

TEMPORARY
WATER E
INSTAL- CHARGES (EXCLUDING WATER FOR
WORKS AND WATER SERVICE POINTS)
LATIONS
TOTAL To PAGE 7 OF ESTIMATE SUMMARY (FORM EjEs/10 C

11 TOTAL
DESCRIPTION
E

ATTENDANTS IF REQUIRED - No. OF WEEKS c, '

per week

FIRST AID MATERIALS

WELFARE,
FIRST AID SAFETY EQUIPMENT
AND
SAFETY
~~I
PROVISIONS PROTECTIVE CLOTHING

CANTEEN . ,

ATTENDANCE ON CLERK OF WORKS .

TOTAL To PAGE7 OF ESTIMATE SUMMARY (FORM E/ES I ,

12
TOTAL
DESCRIPTION

(PERIOD OF LIABILITY -
DEFECTS
LIABILITY LABOUR
COST
MATERIALS

TOTAL To PAGE 7 OF ESTIMATE SUMMARY (FORM E Es C

,

13
DESCRIPTION TOTAL

FINAL COST OF FINAL CLEANING AND CLEARING

CLEARANCE OF BUILDING AND SURROUNDING AREAS PREVIOUS To HA
AN D
HAN DOVER

TOTAL To PAGE 7 OF ESTIMA. TE SUMMARY (FORM E/Es 10 E

<- 14
TOTAL
DESCRIPTION

E
AVELLING TIME -
HOURS "
TRANSPORT AREs -
OF MEN DAYS ,"
To SITE
851STENCE ALLOWANCES - WEEKS ,i,

D % FOR INSURANCES. TRAINING LEVY, ETC.

3;

TOTAL To PAGE 7 OF ESTIMATE SUMMARY (FORM E/E^101 C

15
DESCRIPTION IOTAL

E
NORMAL OVERTIME WORKING HOURS 14
ABNORMAL
OVERTIME TRACTION MONEY
HOURS t, *

ADD % FOR INSURANCES. TRAINING LEVY, ETC.

%

TOTAL To PAGE 7 OF ESTIMATE SUMMARY (FORM E Es C

 REFERENCE

DATE

PROJECT

. I

ADJUDICATION REPORT & ESTIMATE SUMMARY

.

<--

CONTRACT P. .lob

.ASFD ON ,. RFO, HANC. PERIOD OF

~
O Th. In. ticut. o1 Build". re, in No. EjESjlO.
 DOCUMENTS ,

FORM OF CONTRACT

SPECIAL OR EXTRAORDINARY CLAUSES

No. NOTIFIED AT TIME OF TENDER NOTED SUBSEQUENTLY IN CONTRACT DOCUMENTS

. I

C~ OTHER INFORMATION

ITEM TENDER DOCUMENTS CONTRACT DOCUMENTS

DEFECTS LIABILITY PERIOD

PERCENTAGE FOR PROFESSIONAL FEES

DATE FOR POSSESSION

*
DATE FOR COMPLETION

LIQUIDATED AND ASCERTAINED DAMAGES

4

PERIOD OF DELAY

PERIOD OF INTERIM CERTIFICATES

PERIOD OF HONOURING CERTIFICATES

PERCENTAGE OF CERTIFIED VALUE RETAINED

LIMIT OF RETENTION FUND

<.. PERIOD OF FINAL MEASUREMENT & VALUATION

PERIOD FOR ISSUE OF FINAL CERTIFICATE

DRAWINGS AVAILABLE

AT TIME OF TENDER INCLUDED SUBSEQUENTLY IN CONTRACT DOCUMENTS

 \
,,
,
*
.
ANALYSIS OF BIL
..

\
I

OWN WORK NOMINATED

~

BILL
No. TRADE LABOUR PLANT MATERIAL SUB. CONTRACTORS SUPPLIERS ,

E E E E E

..
^

\
.

,
.

*
.
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TOTALS To FINAL su"MARY ON PAGE 10 :; ,,

.,
 I

OF QUANTITIES .

I
I
OWN SUB. CONTRACTORS
PROVISIONAL CONTINGENCIES TRADE TOTALS
NET 213; s% SUMS

E E E E E E

. ,

*
 LATE QUOTATIONS AND ADJUSTMENTS {.
h

MAIN CONTRACTOR'S WORK

..

ADD
BILL DEDUCT
No. QTY. ADJUSTMENT LABOUR PLANT MATERIALS LABOUR PLANT MATERIALS

E E e e E E

.,
.
.

,
I

:,

-,

,.~
I.

TOTALS To FINAL SUMMARY ON PAGE 10 *.

..
.

t;~
I

OWN SUB. CONTRACTORS' WORK

I$.~

AMOUNT
BILL QUOTATION USED AMOUNT ADD DEDUCT ..

No. ALTERNATIVE QUOTATION *

E E
I,

E E

..
,

"
.
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.*

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.

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,

? 41
,

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TOTALS To FINAL SUMMARY ON PAGE 10

by

^.,. -,..,::._:%,*fag* :., e:23,1*\*,****,{* ***,*,,&.**,*",.*\ -

 ,.
SUMMARY OF PROJECT OVERHEADS AND PRELIMINARIES

,:
AMOUNT ADD
DESCRIPTION
DEDUCT
ITEM DETAILS OF ADJUSTMENT
No. E E E

SITE STAFF

2 CLEANING AND CLEARING RUBBISH

3 SITE TRANSPORT SERVICES

4 MECHANICAL PLANT AND HOISTING

. I

5 SCAFFOLDING AND CANTRIES

6 SITE ACCOMMODATION

7 SMALL PLANT

<. a
TEMPORARY SERVICES AND
RE. INSTATEMENT

9 MISCELLANEOUS

10 TEMPORARY WATER INSTALLATION

.
,
,

11
WELFARE. FIRST AID
AND SAFETY PROVISIONS

12 DEFECTS LIABILITY COST

13 FINAL CLEARANCE AND HANDOVER

14 TRANSPORT OF MEN To SITE

.
15 ABNORMAL OVERTIME

<., .

., .

,.

,.

*!
*. ,
.. .
, .

-- I
5-

.,

a. ,
TOTAL C TOTALS C

;, I
,.

,. NET ADJUSTMENT , ADJUSTMENT ,

I. -

...
(ADD/DEDUCT)
a:.

TOTAL To FINAL SUMMARY C

NET ADJUSTMENT E
ON PAGE 10
^;! 'r
".

.
.
 FIRM PRICE RISK CALCULATION
, ..

AMOUNT TOTALS

ITEM QTY. UNIT RATE

E e

11 ,
A
,

.
LABOUR . ,

..

"
.

, ,

PLANT *

..

.*

..

MATERIALS

*.
J. ,
*
~,
.

,.

" ,
, I'

$ *

OWN >.
I.
SUB-CONTRACTORS ,
,

* ':.
., ,,

..

t, .\:

.
.*
d
.,
q
,
.f
.

: A
, "

,.,,
,

PROJECT ,\

OVERHEADS .\

...

.;
TOTAL To FINAL SUMMARY ON PAGE 10 , ,

,,

.-:;,,
,

. JP
 ESTIMATOR'S REPORT
*

,,

33

;'c

xi

,*
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 ADJUDICATION NOTES

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*
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it
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,

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*

.
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,

C
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 Aru'LhUl:\ \. I, ,\, I L, . I
COMPARISON OF RESULTS *

..
~

REFERENCE *, *
,
PROJECT :.
DATE .,..
... "

. ~

,
?
-,.

<

,.

.*

t.

, .*

..

, .*

TENDER
,,

LIST
.,
,.

.,

"L ", ~ ,.

".
..

, .:
..

*
,

,,
;,
.t, %, . . t ,.. .. it
,
..
~.
,,
ANALYSIS OF RESULT
*
C %
~.
% COMPARISON OF RESULTS -,
ANALYSIS OF TENDER

LABOUR
THIS COMPANY TENDER
MAIN CONTRACTOR'S WORK
'I
LOWEST TENDER
PLANT
,,

DIFFERENCE

a
MATERIAL

.
,
.

.,
4 OWN SUB-CONTRACTORS .,

5 PC. SUMS NOMINATED SUB-CONTRACTORS

..

6 PC. SUMS NOMINATED SUPPLIERS

7 PROVISIONAL SUMS AND CONTINGENCIES

a PROJECT OVERHEADS
I

-- "... -- .~, ...,~.

,, . FIRM PRICE ^^
.

9 RISKS
OTHER
,

,..

.",. ~ ... .=,

10 GENERAL OVERHEADS AND PROFIT

100

~... ., @ Th. In. titut. o1 Buildin, . Form No. EjCRjll

~~. ... ~.,~ .. ,. . . ^ ,.

~~

41C

^
 Plan r
Erection &
Transport
Costs
Hired
Plant
Co, 13

O peratinE
Costs
Project
Own Plant V. riabl. O VC rhe. d,

SLandin, Labour
Costs Co 3.3
Cos.
Inform. ,. on

Check
Prol, in I n. ric, Di, tribute Final
Contract Construction
, Condition, Information Reconcilli. ,ion
Documents
o1 CONr. <1
~.~~.\--~~-~~-~. Check
Delivery &
All-in
Plan.
Costs Add Ri, k, 11
Labour Total
Reporr to Arr. e Unsuccessful
Completion Char8eable & General
Rates Tender Vi, 1.3 to
Dates To items
Review Hana, e men t Overhead, Record &
Figu re Site
Profit NORIly

Add
Costs
Allowances Records
of
&
Labour
Attendance
E. G. , ",^ \ " *in. r y
,. I
Check ,.",,.
nth,
Delive ry 70.1
D. t's Own Sub-
Review Contractor. "
.
Costs o
Quotations
^
& , Firm Pr
.
Select . R. ,k
=
.
. Calc ul. lions
.
Check Cos. , of Z
S PCcific. tion Materials L
e
8
"
.
.
a
PC. & ,

Provi, ion. I '

Sums & a
.
on rin, .nci. ,

.-^^.

Code Build. up o1
E, .. blushm. n. o1 All-, n Rates
Unit R. ,e,
C0~., 1.1. RE the EMIm. IC Code Code
Section
Section Section
THE TENDER ACTION WITH A
5 PREPARATION OF E E
6 7 SUCCESSFUL TENDER

^OCEDURE FOR ESTIMATING AND TE ING

Appendix D
 Invitation Decline
to
No. iiy
Tender Archit. EC

.
Visit
A FChirect Consultari
Ex. mine
Ch. rk & Selecti
Cons. rucrion
Cont, .c, Consultation of Plant
Work
Cond, ,. on, Selection
o .
Load
o1 Methods

T. ... 0" Ouchn.

inspection Determine
Work Con, t, u<, ion Pre-Tende r
o1 C Qin piere Constru ction
Con. .nt ', Or r. in n, , Information Consrruc, or
Docu men CS Methods &
Resou rce, Programme

Ex. min.
Condition, E. . min.
o1 . rid Li, , 0*"
Check
Con. ,. c, E. ,,. CG Sub.
Inform. ,, on Cent, .q, 0, , Operations
Pro. ramme Su b.
Estimate
Contracred

E. ,in, n.
Con, truc, ,on
.rid E, ,, in. ,, HB
Work
Lo. do

L. ,,
M, ,or. ,10

L", C , C n. ,.
Pro, ,,, 00.1
Sun, , 0.1, ..,, ,
On, ,.,."cb Conpj. ,,,.
D. ...

Code
Code
Seccion
THE DECISION S. ction ,. Q".,, S, .,.
Pro^CL Appreciation
To TENDER
4
COLLECTION OF INFORMATION

C The in, .,.",. d ,."' ,

PRC