Lesson 1- Contract Documents & BQ

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 OUTLINE
 Standard Form of Contract

 Standard Method of Measurement

 3 essentials elements for contract documents

 Bill of Quantities & it’s Benefits

 Contents of BQ

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 Standard Form of Contract

1. To set up the client’s requirements and the condition of the project and;
2. To guide the contractual parties and all consultants through the construction
process (can be modify to suit the needs or situation);
3. E.g. general description & drawings, quality of work, contractual condition for
administration, construction programs, etc.

 Standard Method of Measurement

1. To provide a common basis for measuring the component parts and scale for the
project which is uniformly used and understood by the construction industry.

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 There are 3 essential elements of Contract Documentation:

1. The form of Contract

 The wisely contract documents practiced locally shall be the latest SIA Articles and
Conditions of Building Contract (Private) and Public Sector Standard Conditions of
Contract (Public), etc.
 These conditions lay down the legal agreement which will be formalized between
client and contractor as a legal framework.

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 There are 3 essential elements of Contract Documentation:

2. The Contract Drawings

 To provide the essential locational information, along with the overall design and
details of the building (plan, sections, elevation & details)
 Architectural, Structural and M&E Design Drawings (discrepancies?)
 It is good that comprehensive contract drawing are providing sufficient
information, precise and clearer understanding of the project. This will leads to
accurate, genuine and realistic price (less dispute & VO)

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 There are 3 essential elements of Contract Documentation:

2. The Contract Drawings (Cont’d)

Detailed /
Tender Contract Construction As-Built
Shop
Drawings Drawings Drawings Drawings
Drawings

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 Title block

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 There are 3 essential elements of Contract Documentation:

3. The Specifications
 Exact statement of the particular needs to be satisfied, or essential characteristics
that a client requires (in a good, material, method, process, service, system or work)
and which a Contractor must deliver.
 The Specifications provide the necessary qualitative information and should
explicitly define the quality of all work indicated on the contract drawings.
 Need to be expressed in writing as drawings alone cannot define.
 (1) Performance Specifications: conform to known customer requirement;
 (2) Technical Specifications: express the level of performance of the building.

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 Bill of Quantities (BQ)

 What is BQ?

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 Bill of Quantities (BQ)

 What is BQ?

 A list of the items with detailed identifying descriptions and quantities, which make
up the component parts of the building.
 BQ translate the drawings, schedules and specification notes produced by designer
into documents.
 It’s provide a uniform and common basis for pricing a competitive tender in any
project. And it establishes an accurate account of quality and quantity of the work
set out in a logical system for pricing by contractors.
 BQ needs to be fully described and accurately represented the quantity and quality
of work to be carried out, as accordance to SMM7 0r NRM2

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 Bill of Quantities (BQ) – Cont’d

 Functions
1. To sets out a systematic manner indicating the quantities and descriptions of the
items of labour ,materials, and plant required to erect and complete a building.
This may later offer assistance to the contractor in ordering materials and labour
arrangement.
2. To provide a basis for valuation of variation to the contract, which are common
occurrences during the construction period.
3. To provide a basis for the valuation of work executed for the purpose of making
interim payments to the Contractor.
4. To facilitates budget control for both the Employer and the Contractor.
5. Good basis for a cost analysis for use on future projects in cost planning.

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 Form of Bill of Quantities

1. Preliminaries
2. Prime Cost (PC) & Provisional Sum incl Profit & Attendance

3. Contingency Sum

4. Preambles

5. Measured Works

6. Day Works

7. Appendices

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 (1) Preliminaries
 It contains the general clauses and recommendation pertaining to the Works and the
Site. It gives directives on what should be allowed for besides the normal items
appearing in BQ. E.g. plant, site staff, site facilities, protection works to surrounding
neighbors, safety protection for public, noise & vector control.
 The nature and the size of the project will determine the value of the preliminaries in
the total contract sum.
 The contents of preliminaries bill are usually based on the particulars listed in section
2 – Preliminaries of SMM7 . These particulars include details on preliminary
particulars, contract particulars, general matters and obligations and Works by NSC;
good and Materials by NS, and Works by Local Authorities.

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 (1) Preliminaries (Cont’d)

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 (2) Prime Cost Sum (PC) & Provisional Sums

 PC Sum: Works which is to be carried out by a nominated sub-contractor or for
materials to be supplied by a nominated supplier for fixing by the Contractor.
 The firms are to be selected by the Architect who will instruct the Contractor to enter
a contractual relationship with them & to coordinate the work.
 Contractor is entitle with pre-determined Profit & Attendance for the coordination
works.

 Provisional Sum: Works which is cannot be entirely foreseen or design/drawings has

not been finalized at the time or preparing the BQ, and are not subject to Contractor’s
profit and attendance normally.

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 (2.1) Profit (%)

 It represents a management fee for arranging and taking responsibility for sub-
contract work or for arranging, checking and accepting the supply of material and
goods.
 Usually in the forms of percentage % of the indicative prime cost or as a lump sum
which is inserted by the tenderers (less practice). The final Contractor’s profit will be
finalized and adjusted on a pro-rata basis only at the time of actual final invoices
obtained.

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 (2.2) Attendance (sum)

 The main contractor is responsible for the satisfactory integration of NSC work within
the main contract works; with providing general site facilities without work
interruption. E.g. site access, standing scaffolding, electricity & water supply, rubbish
disposal, space for sub-con site office, etc.
 Besides, it aims to enable proper provision to be made for significant costs beyond
those visualized in the general attendance.
 The sums inserted is not adjustable, as the amount and type of attendance works or
services is unlikely to vary significantly with variations in the actual cost of the sub-
contract.

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 (3) Contingency Sum

 Is allowed in the contract to cover the cost of work or expenses not contemplated or
implied in the contract sum e.g. underground structural and services diversion works,
variation cost arise from late design confirmation or changes.
 It will be a substantial saving to the client where such unforeseen circumstances did
not occur.
 The process for implementing and using contingency amounts should be contractual,
as spelled out as part of the agreement for accountability purposes.

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 (4) Preambles
 It contains descriptions relating to the quality and performance of materials, the
standard of workmanship, testing of materials and workmanships, and taking
samples of materials, and any other ancillary works which to be included in price.
 Thus, it always bring attention of estimators they will affect the price/rates that he
inserts against billed items of measured works.
 It reduces significantly the length of the item descriptions and assists considerably in
correct pricing for all.

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 (4) Preambles - Examples

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 (4) Preambles - Examples

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 (4) Preambles - Examples

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 (4) Preambles - Examples

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 (4) Preambles - Examples

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 (5) Measured Works

 This is the main part of the bill of quantities, which listed all the items of work to be
undertaken directly by the Contractor.
 The quantities and descriptions of items should be determined in accordance with the
tabulated rules of measurement of SMM7 or NRM2.
 Trade Method: Items in the bill are grouped under their respective trades
clearly. This will minimize the possibility of repetition and
useful for subletting process.
 Elemental Method: Items of work are group according to their position in the
building, on the basis of a recognized elemental subdivision
of the project.
(to be discussed in detail in later)

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Trade Method Elemental Method

Brickwork Block 1181
Half Brick Solid Brick Sub-Structural Works
- 1st Storey Pile-Cap
- Typical Storey - Excavation
- Roof Storey - Lean Concrete
Full Brick Solid Brick - Formwork
- Internal Wall - Rebar
- External Wall - Concrete

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 (6) Dayworks
 It covers those works which cannot be properly measured and valued at the rates in
BQ due to abnormal work sequencing, different in work conditions, etc.
 It is a method of payment for work based on the prime cost of all labour, materials
and plant used in carrying out the work, and overhead and profit are deemed to have
been included in the daywork rates in respect of labour and plant.
 “Timesheet Card”, detailing the time spent daily of the workmen’s names and the
plant and materials used, shall be submitted for verification to Architect’s site
representative.
 The rates and prices used in the valuation of daywork shall be based on the inserted in
the schedule during tender, without any adjustment of actual wages or market
condition.

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 (7) Appendices
 Schedule of Rate (SOR)

 Material Price List for fluctuation claim, if any

 Particular specifications

 Copies of quotation

 Copies of correspondences,

 List of Warranties & Indemnities,

 Letter of Undertaking,

 Special safety conditions & green mark requirements, etc

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 Recap: Form of Bill of Quantities

1. Preliminaries
2. Prime Cost (PC) & Provisional Sum incl Profit & Attendance
3. Contingency Sum
4. Preambles
5. Measured Works
6. Day Works
7. Appendices

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