The Hong Kong Institute of Surveyors

THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
PART II ASSESSMENT 2013
WRITTEN TEST
DAY 2
Wednesday, 18th September, 2013

PART II ASSESSMENT – 18TH SEPTEMBER 2013
WRITTEN TEST
NOTES TO CANDIDATES
A. Headings to questions are for ease of identification only and do not form
part of the questions.
B. The number of main questions is as follows:
(1) First day – Questions with varying marks but aggregate mark is 50%
(2) Second day – Questions with varying marks but aggregate mark is
50%
DAY 2
Question No. 1 Interim Payment 12 marks

Question No. 2 Care of the Works 15 marks
Question No. 3 Supplier’s Quotation 10 marks
Question No. 4 Valuation of Variations 13 marks
---------------
50 marks
---------------
C. All Main Questions and Sub-Questions are compulsory.
D. The total mark for each day’s paper is 50. The passing mark of each day’s
paper is 55% of the total mark of that paper. Candidates who have passed
both days’ papers will be considered as having passed the Part II Written
Test .
E. Refer also to INSTRUCTIONS TO CANDIDATES, which were issued to you

in advance.
Page 2
WRITTEN TEST
FIVE COMMON CRITERIA
Candidates are expected to illustrate a reasonable level of professional

competence against five common criteria outlined below, sufficient for the
Assessors to answer the question “Would I employ the Candidate to work as a
qualified Quantity Surveyor with the ability to resolve problems in a
professional manner ?” However, it should be recognized that not all these
criteria apply to every problem, nor do they carry equal weight.
1. Perception: A full understanding of the problem posed, evidenced by a

response to each item in the question. Candidates should also show
foresight by anticipating additional problems not specifically mentioned.
2. Imagination: The assumption of essential supplementary information so as

to provide a full response; also the use of imaginary telephone inquiries,
quotations, notes, etc.
3. Technical skills: The correct use of measurement principles, prices,

discount factors, etc. The use of appropriate short cuts, rounding off of
figures, etc. to suit the scale of the problem. The provision of analysis to a
depth appropriate to the stage reached by Candidates and the time
constraints imposed on Candidates.
4. Judgement: The provision of sound professional advice indicative of

professional knowledge and experience gained by Candidates. The advice
should be firm and unhesitating, except where suitable caveats are essential.
5. Communication: Free of ambiguity, with clear expression and an absence

of irrelevant or inappropriate technical details, particularly when provided to
a lay Employer. Correct syntax and good professional style in letters and
reports are important. Candidates should clearly convey their interpretations
and proposals.
Page 3
WRITTEN TEST
DAY 2
18th SEPTEMBER 2013
Page 4
WRITTEN TEST
Question No. 1 – Interim Payment
You are the consultant project quantity surveyor of a residential building project.
(a) Based on the contract particulars given below, please write a note to your
new assistant QS, Peter, to point out the errors in the draft summary of
Interim Payment Valuation No. 15 at the attached Appendix A prepared by
him.
Contract Particulars
Contract Sum: HK$316,000,000.00
Percentage of Certified Value Retained: 10%
Limit of Retention Fund: 5% of Contract Sum (to the nearest thousand)
[4 Marks]
(b) The Employer’s PM, Mr. S Wong just call you and said the Contractor had
called him and asked for help in easing cash flow by paying the deposit for
kitchen cabinets. Mr. Wong understands that there is no material-off-site
payment clause in the Contract and he is not contractually bound to pay the
deposit. However, he would like to maintain a partnering relationship with
the Contractor and asked you to analyze the risks and considerations, from
the Employer’s point of view, of help paying the deposit.
[8 Marks]
Page 5
WRITTEN TEST
Appendix A to Question 1 – Draft Interim Payment Valuation
ABC QS Consultant
DRAFT
Project Name: XYZ Residential Development in Tseung Kwan O
Employer: AA Development Co., Ltd.
Contractor: BB Construction Co., Ltd.
Interim Payment Valuation No.: 15
Valuation Date: 10th September 2013
Summary Valued Amount

HK$
Contract Work Done 150,500,000
Materials On Site 3,400,000
Variations 4,000,000
Loss and Expense Claims 500,000
Adjustment for Fluctuations 100,000
Gross Valuation 158,500,000

Less Retention (10% of Gross Valuation)
(15,850,000)
Less Previous Payment (130,100,000)
Net Amount Due to the Contactor 12,550,000
Page 6
WRITTEN TEST
Question No. 2 – Care of the Works
You are the project quantity surveyor of the Contractor for the construction of a
residential building. Four months ago, a fire took place in that building, when it was
near the topping out of its reinforced concrete structure, causing substantial
damage and delay to the project.
Your company has procured a “Contractor’s All Risks” insurance containing the
usual terms. While the loss adjuster has taken a very detailed investigation, it
remains uncertain whether the fire was caused by the default of the Employer, the
default of your company or otherwise.
Your boss asked you to give advice, quoting relevant contract clauses, on the
matters listed in (a) to (d) below for each of the following scenarios:
Scenario A – The fire was caused by the default of your company;
Scenario B – The fire was caused by the default of the Employer; and
Scenario C – The fire was NOT caused by the default of the Employer or your
company.
"the Employer" or "your company" in the above scenarios would include persons
for whom each of them is responsible for.
Matters to be addressed:
(a) Whether your company is entitled to an extension of time for the completion
of the Works.
[3 Marks]
(b) Whether your company is entitled to recover from the Employer the
additional expenditure incurred during the prolonged construction period.
[3 Marks]
(c) Whether your company is entitled to determine its employment under the
Contract on the ground of the substantial delay which would probably
exceed 120 days.
[3 Marks]
(d) Whether your company is liable for the cost of restoring the damage caused
by the fire.
[6 Marks]
Page 7
WRITTEN TEST
Question No. 3 – Supplier’s Quotation
You are the project quantity surveyor of the Contractor for the construction of a
private hospital. You have just received a quotation from a supplier for the supply
of tiles with the following terms and conditions:
(a) Title and Delivery
Title to the goods remains with the Supplier until the goods are paid in full.
Risk of loss of or damage to the goods passes to the Buyer upon delivery to
the Buyer.
(b) Payment Terms
Terms are Cash-On-Delivery. Overdue accounts are subject to interest

charges of 1.5% per month.
(c) Delays
The Supplier shall not be liable for delay of delivery caused by happenings
or occurrences due to force majeure or any cause beyond the Supplier’s
control.
(d) Warranty
Any goods sold or provided by the Supplier shall be deemed accepted by

the Buyer upon delivery. Claims for damage, shortage or errors in delivery
must be recorded on the original receiving documents and reported within
twenty-four hours following delivery to the Buyer.
The Supplier warrants only to the Buyer, and to no other person, that the
goods supplied will meet the terms of the Sales Order pursuant to which
such goods are sold for a period of twelve months from the date of delivery.
(e) Prices
The prices for the goods are only applicable to the quantities stated in the
Quotation. If the Buyer requests for any alterations in the specification or
quantity of the goods, the Supplier is entitled to vary the price should the
Supplier choose to accept such alterations. All tile sizes stated are nominal
sizes. Sizes and prices include recommended joint allowances but exclude
cutting and other wastages.
Page 8
WRITTEN TEST
Question No. 3 – Supplier’s Quotation
Your senior would like to know in what aspects the terms of the Main Contract are
not put through to this Supply Contract. You are requested to identify the “gaps”
between the Contractor’s obligations under the Main Contract and the Supplier’s
obligations under the Supply Contract in respect of items (a) to (e).
[2 Marks for each items (a) to (e)]
Page 9
WRITTEN TEST
Question No. 4 – Valuation of Variations
You are the consultant project quantity surveyor of a residential development which
has been tendered and awarded based on a lump sum (without quantities) contract.
During yesterday’s monthly financial meeting, the Project Director, Mr. E Chan, of
the Employer raised his concerns about the following cost claims submitted by the
Contractor.
(a) Cost Claim for Lighting for Hoardings

The details of the lighting arrangement for the hoardings were confirmed by
the Employer and covered by an Architect’s instruction shortly after the
commencement of the Works.
The Contractor submitted that no scheme of hoarding lightings was shown
on the Contract Drawings and therefore the lighting arrangement covered by
the Architect’s instruction should constitute a variation addition under the
Contract. However, Mr. E Chan considered that though there was no
scheme of hoarding lighting shown on the drawings, the pricing in Schedule
No. 1 for hoardings, etc. against Specification Preliminaries clause 14.15
(see Extract below) should have included for the cost of the hoarding
lightings as instructed by the Architect.
(b) Cost Claim for Modification of Hoardings

To suit statutory requirements, one more manhole close to the existing
hoardings was added. The said work was covered by an Architect’s
instruction shortly after the commencement of the Works. In order to suit
the site construction, the hoardings close to the newly added manhole had
to be modified accordingly.
The Contractor submitted that the modification of the hoardings, resulted
from the newly added manhole, should constitute a variation under the
Contract. However, Mr. E Chan considered that the pricing in Schedule No.
1 for hoardings, etc. against Specification Preliminaries clause 14.15 (see
Extract below) should have included for the cost of the said modification of
the hoardings.
Page 10
WRITTEN TEST
Question No. 4 – Valuation of Variations
Extract from the Specification Preliminaries
14.15 Hoardings, Fencings and Covered Walkways

(i) The Contractor shall construct hoardings as shown on the
Drawings. In addition, the Contractor shall take over, make
good and adapt any existing hoardings, fencings, covered
walkways, gantries and the like left by the previous contractors.
The Contractor shall also provide any necessary lighting
provisions to the hoardings, whether they are erected or
adapted by the Contractor, as directed by the Architect.
(ii) The Contractor is required to modify the hoardings, etc. in
accordance with the Drawings and paint / write the logo and
graphics as directed by the Architect.
(iii) The Contractor shall maintain the hoardings, etc. including
carrying out any necessary modification, extension, new
erection and adaptation to suit the actual site construction
during the course of this Contract.
(c) Omission of Flat Number Signs

Flat number signs were not shown on the Drawings and Specification of the
Contract. Due to unknown reason, they were measured in item 5.7/5/A of
the Schedule of Quantities and Rates. Shortly after the commencement of
the Works, the Employer in a meeting with the Contractor recalled that the
Flat Number Signs should be done by the fitting out direct contractor as
stipulated in the Contract. The Employer would wish the Architect to issue
an instruction to omit item 5.7/5/A of the Schedule of Quantities and Rates.
The Contractor protested that there should be no cost implication under the
Contract. However, Mr. E Chan considered that the price for item 5.7/5/A of
the Schedule of Quantities and Rates for the flat number signs should be
omitted.
Mr. E Chan would like you to advise on the validity and entitlement of the
Contractor’s above cost claims. Please draft a written reply to express your views
with the support of contract provisions.
[13 Marks]
Page 11

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THE HONG KONG INSTITUTE OF SURVEYORS

QUANTITY SURVEYING DIVISION

ASSESSMENT OF PROFESSIONAL COMPETENCE

PART II ASSESSMENT 2013

Wednesday, 18th September, 2013

B. The number of main questions is as follows:

Question No. 1 Interim Payment 12 marks

C. All Main Questions and Sub-Questions are compulsory.

E. Refer also to INSTRUCTIONS TO CANDIDATES, which were issued to you

FIVE COMMON CRITERIA

Candidates are expected to illustrate a reasonable level of professional

1. Perception: A full understanding of the problem posed, evidenced by a

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

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

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

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

18th SEPTEMBER 2013

Question No. 1 – Interim Payment

Contract Sum: HK$316,000,000.00

Percentage of Certified Value Retained: 10%

Limit of Retention Fund: 5% of Contract Sum (to the nearest thousand)

Appendix A to Question 1 – Draft Interim Payment Valuation

Summary Valued Amount

Gross Valuation 158,500,000

Less Previous Payment (130,100,000)

Net Amount Due to the Contactor 12,550,000

Question No. 2 – Care of the Works

Scenario A – The fire was caused by the default of your company;

Question No. 3 – Supplier’s Quotation

(a) Title and Delivery

(b) Payment Terms

Terms are Cash-On-Delivery. Overdue accounts are subject to interest

Any goods sold or provided by the Supplier shall be deemed accepted by

Question No. 3 – Supplier’s Quotation

[2 Marks for each items (a) to (e)]

Question No. 4 – Valuation of Variations

(a) Cost Claim for Lighting for Hoardings

(b) Cost Claim for Modification of Hoardings

Question No. 4 – Valuation of Variations

Extract from the Specification Preliminaries

14.15 Hoardings, Fencings and Covered Walkways

(c) Omission of Flat Number Signs

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