Construction Costing and Procurement

A.(i) The ten factors which affect the tender process are material costs, labor wages, Inflation factors, location of construction projects, technical review of the team, contingency, size and type of construction project, regulatory requirements, the reputation of the contractor of construction project and quality of plans and specifications

(ii) Material costs - the material cost for the construction includes the cost of shipping and taxes if necessary. So it is necessary to consider all those variations while preparing the tender estimate

Labor wages - This varies from place to place and the local wage rate of Kowloon city is to be considered. There will be variations in labor costs at the time of estimation and at the time of project delivery.

Inflation factors - The materials of construction may have a high chance of inflation as the product price and service charges vary from time to time

Location of a construction project - Location is an important factor as it should be checked whether materials could be properly transported to the construction site and handled with care

The transportation cost may also be considered while preparing the tender estimate

Technical and engineering review - This is to be checked to make sure that they require purpose are met with optimum operational and maintenance costs.

Contingency - Its necessary to add 10 % contingency charges as if some unforeseen things happen in construction like inflation and increase in other charges size and type of construction project

The size and type have a great influence on estimation as if the work is very small the labor force will also be small and some contractors refuse to take works. In some cases, the workforce may be insufficient and extra costs bared due to this also shall be considered effectively.

Regulatory requirements

Some government agencies should be approved Kowloon to start the renovation work. the application cost and other charges related to this also shall be considered in preparing the estimate.

The reputation of contractors and engineers

The cost of construction will be higher if a reputed contractor undertakes the work, but the quality will be also improved. The contractor shall be convenient with the engineer, then the project will be smoother and cost-effective.

Quality of plans and specifications

If the construction plan is satisfying all the operational, safety, and health parameters and according to building rules under Kowloon city, the project will be executed without delay. Any poorly drawn plan will lead to confusion of the contractors and will increase the overall project cost. This shall also ve effectively considered.

(iii) Consideration while estimating labor. The labor shall only be estimated by clearly defining the scope of work. As the main contractor and sub-contractors are involved in the works. First, it's necessary to determine the total quantity of work and as per the schedule of rate standards of the country, labor units are estimated. Some resources may also be added by considering the critical path of the projects. It's necessary to follow the critical path and critical durations essentially and labors are to allocated such that over-allocation of resources is controlled. Sometimes it's necessary to smooth or level the resource. Daily wages of different workers may be computed as it readily effects the overall estimates of the project. Overtime rates shall be clearly defined before the work progress.

(iv) It's necessary to check for the locally or naturally available materials for the construction work. It's also necessary to check the transportation facility in effectively carrying and forwarding the material from suppliers to the construction sites. After calculating the total quantity of work, the material may be scheduled per volume of construction work. It is necessary that the contractor also may be informed regarding this.

B(i) Difference between operational estimating and unit rate estimating

Operational rate estimating the most commonly used estimating technique as larger quantities are involved and plant and machinery for the project plats and important role here. Operational estimating is preferred for plant dominating projects. It is used for pricing and design of build contracts in which the contractor is primarily responsible for pricing methods and bills to be produced. The operational estimating procedure requires method statements, resource scheduling, and program details. Some of the advantages are it is good for the estimator to work under the operational team to schedule the resources and activities. Comparative cost alternatives can be studied and implemented with this method. The operating estimating technique requires effective forecasting of the different costs involved in the construction project and may consist of more than one billing item. Based on resource information obtained from the plan and specification a detailed estimate is prepared and these data shall be transferred into the bill of quantities effectively. The operational estimating technique may be also used for estimating and comparing prices of different methods in the execution of construction projects.

The unit rate estimating technique mainly focuses on historical data that is already processed and it may help to predict the likely costs of the materials and products at the early stage of design. As one of the major methods of estimation, the unit rate method makes use of predetermined rates for labors, plants, and machinery. For the unit rate of estimation, the quantities are calculated as m,m2,m3, etc. This unit rate is set for the total cost of a construction project with the whole completion of the project. Net and gross costing terms. These terms may be referred to as individual firms' policy in estimation and preparation of bill of quantities. Considering the overall assessments overhead cost and profit computations may be highly determined by the unit rate approach compared to the operational approach of estimation. Considering net estimating the items in adjudication may be subsequently added to the total cost of the project contributing to the final tender figure. It's noticed that different rates of measure work in a list of the bill of quantities may be reconsidered excluding overhead and profit as in the case of the operational method of estimating.

Whether net or gross methods are used it is necessary to reconsider the matter within individual firms to give a more accurate estimate with minimum or no errors in it. While considering the present case study unit rate method is more applicable as an operational estimating approach is more suitable for heavy infrastructure projects. For renovation projects, the unit rate method of estimation is the best method of estimation as a bill of quantities may be prepared only concerning the given scope of work. While dealing with the huge scope of heavy infrastructure projects operation method of estimation is more suitable. The other advantages include effective use and management of resources mainly materials and workforces and wastage is considerably reduced compared to the operational method of estimation.

(ii) Operational estimating approach

Rate for concrete placing - 2550 x m3 cube rate - 255000

Rate for mobile crane - 1 x 600 x 45 = 27000

Rate for concret skips - 2 x 25 x 50 = 2500

Rate for dumpers - 3 x 200 x 45 = 27000

Rate for vibrators - 3 x 35 x 45 = 4725

Ganger charges - 1 x 600 x 40 = 30000

Labour charges - 4 x 450 x 30 = 54000

Total - 400225

  1. BIM refers to Building information modeling (BIM) which is either a process or tool or technology to develop, maintain, and manage physical, functional, and operational characteristics of areas or places. it is an effective tool for preparing estimates as per the given plan and specifications. After modeling the expected start date can be given in the software and it will calculate the overall resources for the project and tell approximate completion date as per our scenario modeling in the software. They are filed in a different format to be exchanged or extracted to check different managerial and decision-making functions regarding building construction and area development.

Building Information modeling helps in spanning whole structure to time and occupation limits. While considering a BIM implemented the project of Kowloon city, it was noticed that the BIM manager throughout his information process deals with virtual design and project management. With the advancement of BIM, it's easier to predict the performance of the building structure. As it is an integrated framework with drawings, plans, and schedules we can monitor the construction progress in an easier way. BIM helps in analysis, schedule management, and take-off characteristics. We can model and design the structure with easiness in the BIM framework. The significant areas of building design like architectural, structural, and MEP are coordinated properly and identified along with exact locations.BIM utility helps in reducing human effort before physical construction as the concept is purely virtual. Through the advancement of BIM in the construction industry, it was able to improve structural safety and reduce take-off and estimation errors etc. The building could be easily designed and loads can be analyzed within a short time. After which it will be able to allocate the materials and resources for the construction. Subcontractors and designers can just input their values and the model itself prepares schedules and estimates for the construction program. BIM helps in effective waste management on-site as the BIM model itself allocates the appropriate resources for construction.

BIM helps in effective facility operations. With the help of data stored in the BIM model, the construction manager can effectively handle the problems that arise in the site. If any damage is noticed for any building member, he could check the building model rather than inspecting the whole building. With the help of the BIM model, the concerned manager can get all the information regarding the materials and elements that are used for construction. BIM has advanced features for incorporating provisions of sensor measurement and control signals within the structure. This helps in analysis and operations management. With the help of 3d printing and laser scanning photogrammetry techniques, it is easier to determine the correct measurements of the assets in the building model. Through BMI we can easily analyse the strength of the material which was constructed hundred years back. All standards, codes, methods, and materials are incorporated along the BIM model to reduce the complexity of building design.

BIM is a new and advanced technology to the construction industry which helps in clear and accurate building documentation. It helps in the visualization and coordination of construction documents. It has the option of embedding the vendors and suppliers of labors and construction materials along with location details and quantities required for estimation and contracting purposes. It helps in speedy execution of projects with a reduction in delays and costs accordingly.

BIM model contains all data that is needed for design purposes and analysis. It has a feature to automatically create a file for building simulation and performance analysis. This can save human effort and time to a great extend. Large simulation tools and plugins are available for different buildings based on their functionalities. The traditional method of building planning was limited to two-dimensional drawings which included only plan, elevation, and sections. Building information modeling has advanced features like adding spatial dimension thereby creating a 3d model by incorporating three dimensions (width, length, height). After which a 4d model was developed by incorporating time and its 5 the dimension which was cost. New features include advancements for sustainability and property management.BIM is more than modeling and is a wide collaborative process throughout the operational life cycle.

BIM is now in its 6th-dimensional model stage. It is a stage refereed to for linking 3d components of building structures and assembling for project management. 6 d model is a model in which building component information, photos, warranty files, operation manuals, and web links to online sources with manufacturer and supplier details and contacts are linked.BIM can effectively help in the reduction of waste by utilizing the information or data provided and through its innovative simulation and decision-making process. Different scenarios can be modeled like weather conditions and delay information’s etc. to test different approaches for project delivery on site.BIM has advanced management options to collaborate with different activities and add new suggestions and properties to improve serviceability and strength of the structure.

(I) Considering case B -Preliminary for project qunatity surveyor

Total duration - 78 weeks

Gross annual salary - 24000 for 12 months ie 84 weeks

gross annual corrected salary - 22285

Annual paid holidays - 6 weeks

NI Contribution - 2852.48

Pension contribution - 1114.25

company car lease - 145 x 78 - 11310

Fuel for company car - 65 x 78 - 5070

Car insurance policy - 20000

Total charges - 62633

(ii) Excavation with the help of machine

for maximum depth not to exceed 1 m - total qty - 120 m3

MOT type 1 - 22.5

Rate for excavator driver - 15.86 x 19.5 x30 =9279

fuel - 1.29 per litre

JCB 3C Excavator - 392/day for 5 m3

So total for 120 m3 it is 9408

delivery 150

wheeled hydraulic - 17/18 tonnes - 33.43 /hr - 1672

delivery - 150

MOT Type 1.92/m3 - 231

Total - 20890


Filling up of the quantity - 60 m3

cost for grade driver - 15.37/ hr = 15.37 x 19.5 x 30 = 8992

plate compaction - 2.08/h = 2.08 x 19.5 x 30 = 1217

roller 3.99/h - 3.99 x 19.5 x 30 = 2340

Compaction - 0.17hr/m3 = 0.17 x 19.5 x 30 x 15 x 60 = 1492

Total - 14040.75

(iv) Masonry work in foundation for 300 m2

Masonry work for half stretcher bond

labour charges for brick laying - 17.09/ h = 17.09 x 19.5 x 30 = 9997.65

Class B brick 1:4

for 452 numbers - 255.55

No of bricks required per sqm - 18000

for 452 bricks its 255.55 so for 18000 brick rate is calculated as 10176.76991

Unloading rates - 10000

total - 30174.41

(v) Reinforcement 25 mm diameter hot rolled deformed steel bars - 50 tons

450 / ton = 22500

Tie wire charges - 2500

chairs and spacers - 1300

steel fixer labour - 17.09 / hour - 17.09 x 19.5 x 30 = 4148

HRT ties 225 mm - 250 qty ,19.95/ ton = 997.45

fixing details - 21 man hours /ton x 50 = 120

unloading steel reinforcement - 1 ton / hour so 50 tons 50 hours and rate - 50 x 17.09 = 854.5

total - 30174.41

Remember, at the center of any academic work, lies clarity and evidence. Should you need further assistance, do look up to our Engineering Assignment Help

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