Department Of Civil Engineering

Kabale University
P.O. BOX 317
Kabale, Uganda
MEASUREMENT OF BUILDING WORKS ( BCE 3104) YR 3.1

HISTORICAL BACKGROUND OF QUANTITY SURVEYING

The quantity surveying profession has largely developed over the last century but has now grown
to such an extent that it forms the second largest sector or specialism in the membership of the
Royal Institution of Chartered Surveyors, aided by the amalgamation with the former Institute of
Quantity Surveyors (lQS) in 1983. Quantity surveyors are employed in private practices, public
offices and by contractors, and they undertake a great diversity of work, as described by the
author in Quantity Surveying Practice.
In more recent times, quantity surveyors are engaged increasingly in the financial management
of contracts and ensuring that clients secure value for money and that the completed projects
provide substantial added value to the client's property asset. In addition to being construction
cost consultants, quantity surveyors are playing an increasingly important role in project
management, value management and facilities management. Furthermore, they are sometimes
engaged as lead consultants for large projects, where they are responsible for the delivery of all
professional services from inception to completion.
Up to the middle of the nineteenth century, it was the practice to measure and value the building
work after it had been completed and bills of quantities were not prepared.
The need for quantity surveyors became evident as building work increased in volume and building
clients became dissatisfied with the method adopted for settling the cost of the work.
In the seventeenth century the architect was responsible for the erection of buildings, as well as
their design, and he employed a number of master craftsmen who performed the work in each
trade. Drawings were of a very sketchy nature and much of the work was ordered during the course
of the job. On completion each master craftsman submitted an account for the materials used and
labour employed on the work.
It later became the practice for many of the master craftsmen to engage 'surveyors' or 'measurers'
to prepare these accounts. One of the major problems was to reconcile the amount of material
listed on invoices with the quantity measured on completion of the work. Some of the craftsmen's
surveyors made extravagant claims for waste of material in executing the work on the site and the
architects also engaged surveyors to contest these claims. General contractors became established
during the period of the industrial revolution and they submitted inclusive estimates covering the
work of all trades. Furthermore they engaged surveyors to prepare bills of quantities on which
their estimates were based. As competitive tendering became more common the general
contractors began to combine to appoint a single surveyor to prepare a bill of quantities, which all
the contractors priced.
In addition, the architect on behalf of the building owner usually appointed a second surveyor, who
collaborated with the surveyor for the contractors in preparing the bill of quantities, which was
used for tendering purposes. In later years it became the practice to employ one surveyor only who
prepared an accurate bill of quantities and measured any variations that arose during the progress
of the project. This was the origin of the independent and impartial quantity surveyor as he operates
today. An excellent account of the development of quantity surveying in the UK between 1936
and 1986 is provided by Nisbet (1989).

FUNCTIONS OF THE QUANTITY SURVEYOR

The client's quantity surveyor performs a variety of functions as now listed, and the underlying
theme of a quantity surveyors work is one of cost management rather than the preparation of bills
of quantities and settlement of final accounts, whether he is engaged in private practice or in the
public sector.
1) Preparing approximate estimates of cost in the very early stages of the formulation of a
building project, and giving advice on alternative materials and components and types of
construction and the financial aspects of contracts, and assisting with feasibility studies.
2) Cost planning and value analysis during the design stage of a project to ensure that the
client obtains the best possible value for his money, including added value to his property
asset, preferably having regard to total costs using life cycle costing techniques, that the
costs are distributed in the most realistic way throughout the various sections or elements
of the building and that the tender figure is kept within the client's budget, as described in
Building Economics.
3) Advising on the most appropriate form of building procurement, having regard to the type
of project, quality, speed of construction, apportionment of risk and price certainty.
4) Preparation of bills of quantities and other contract documents relating to the project.
5) Examining tenders and priced bills of quantities and reporting his findings.
6) Negotiating rates with contractors on negotiated contracts and dealing with cost
reimbursement contracts, design and build, management and other forms of contract.
 7) Valuing work in progress and making recommendations as to payments to be made to the
contractor, including advising on the financial effect of variations.
8) Preparing the final account on completion of the contract works.
9) Advising on the financial and contractual aspects of contractors' claims.
10)Giving cost advice and information at all stages of the contract and preparing cost analyses
and cost reports to clients.
11)Technical auditing, valuations for fire insurance, giving advice on funding, grants, capital
allowances and taxation, risk analysis and management, and other related matters including
health and safety and quality control.
The contractor's quantity surveyor performs a rather different range of functions, and these are
now described, since there can be few of the large or medium size contracting firms who do not
employ quantity surveyors. Usually the contractor's organisation will include a quantity surveying
department controlled by a qualified quantity surveyor who is normally a senior executive and
may have director status.
The duties of the contractor's quantity surveyor will vary according to the size of the company
employing him; tending to be very wide in scope with the smaller companies, but rather more
specialised with the larger firms.
In the smaller company, his activities will be of a general nature and include’
• preparing bills of quantities for small contracts;
• agreeing measurements with the client's quantity surveyor;
• collecting information about the cost of various operations from which the contractor can
prepare future estimates;
• preparing precise details of the materials required for the projects in hand;
compiling target figures so that the operatives can be awarded production bonuses;
• preparing interim costings so that the financial position of the project can be ascertained as
the work proceeds and appropriate action taken where necessary;
• planning contracts and preparing progress charts in conjunction with the general
foremen/site manager;
• Making application to the architect for variation orders if drawings or site instructions vary
the work;
• Agreeing subcontractors' accounts;
• Placing subcontract orders and comparing the costs of alternative methods of carrying out
various operations so that the most economical procedure can be adopted;
• Advising on the implementation of contract conditions and different contractual methods.
MEASUREMENT OF BUILDING WORKS
Measurement and Quantification
The bill of quantities remains unsurpassed as a model on which to obtain bids in a format that
allows: ease of comparison between various contractors, transparency, an aid to the quantity
surveyor/engineer in valuing variations, calculating stage payments and the preparation of the final
account.
What is more, the ability to measure, quantify and analyse the items of labour, materials and plant
necessary to construct a new project is still a much sought after skill and many would argue that it
is the core of the quantity surveying profession.
BILL OF QUANTITIES
This is a document a document that sets down the various items of work in a logical and recognized
manner, in order that they may be readily priced by contractors.
Types of Bills of Quantities
The use of bills of quantities in support of a contract is the traditional and proven means of securing
a lump sum price for under taking building works. Bills of quantities can be:
• Firm (to obtain a lump sum price for a fully designed building project)
• Approximate (subject to re-measurement as built)
Bills of firm quantities
These are based on measured quantities of work which are well defined i.e. their details and extent
are known. Such works include superstructure, walling etc.
The essential features of these bills of quantities are;
• Both the quantities and the unit rates form part of the contract
• Virtual completion of the design precedes the signing of the contract.
These usually result into lump sum or fixed price contracts. (Price stated in contract as payment
for the work described in the bill)
Bills of approximate quantities
These are based on measured quantities of work whose details are available but the extent is not
known at the time of tendering. The main purpose is to obtain prices from the tenderers for
negotiation purposes with contractor.
These bills are normally prepared for particular project and descriptions of work are as detailed as
in bill of firm quantities, but the time otherwise required for detailed measurements is saved, the
quantities given being estimates of likely requirements.
Work within these bills is liable to variation and are usually re-measured after execution.
The essential characteristics of these bills of quantities are;
• Only the unit rates form part of the contract
• The signing of the contract and the beginning of the work at site may proceed before
the contract is signed.
These usually result into measured or measurement or admeasurement contracts.
Main/Primary purpose of the Bills of Quantities
Frequently, one of the principal activities of the client's quantity surveyor is the preparation of bills
of quantities, although he does also perform a number of other functions which will be described
later in this chapter. Consideration will now be given to the main purposes of a bill of quantities:
• Enables all contractors tendering for a job to price on the same information/efficiently and
accurately since it provides a coordinated list of items together with identifying
descriptions and quantities.
• Assists in assessing the material and labour requirements for the job. It gives an itemized
list of the component parts of the building, with a full description and the quantity of each
part, and could form an approximate checklist for the successful contractor in ordering
materials and components and assessing his requirements of labour and other resources,
and in programming the work.
• Provides a basis of valuation of works post contract. (Executed works and the variations,
Preparation of the final account.
• After being priced it is a basis for cost planning and cost analysis
• It limits the risk element borne by the contractor to the rates he enters in the bill and thereby
results in more realistic and competitive tenders.
• It prompts the client and design team to finalize most project particulars before the bill is
prepared, and ideally based on full production drawing and project specification.
• If prepared in annotated form, it will help in the locational identification of the work.
What is more, the ability to measure, quantify and analyse the items of labour, materials and plant
necessary to construct a new project is still a much sought after skill and many would argue that it
is the core of the quantity surveying profession.
Benefits of Bills of Quantities
Irrespective of what contract strategy is used, at some stage in procurement process one party will
need to quantify the extent of the works to be executed;
Whether it is the employer’s QS/engineer/cost manager, the main contractor, sub-contractors for
the purpose of obtaining a price for completing construction works, valuing the extent of work for
purposes of payment, valuing variations, or to support applications for tax or other financial
incentives. Consequently detailed measurement for the purpose of BQ production is beneficial for
a number of reasons;
• It saves the cost and time of several contractors measuring the same design in order to
calculate their bids for completion.
• Provides a consistent basis for obtaining a competitive bid.
• it provides an extensive and clear statement of the work to be executed/ executed/
remeasurement BQ
• it provides a strong basis for budgetary control and accurate cost reporting of the contract
(post contract cost control) including;
• preparation of cash flow forecasts
• basis for valuing variations
• basis for the preparation of progress payments/interim payments
• when priced, provides data to support claims for tax benefits (VAT and capital allowance)
• when priced, it provides data for support claims for grant and;
• Provides source of real time cost data which can be used for estimating the cost of future
building projects. (Historic cost information) used cost indices./cost model

COMPOSITION OF BILLS OF QUANTITIES

Bills of quantities comprise of the following sections;
1) Form of tender
This is a document that is used to record the main contractor’s price for completing the building
Project (i.e. his tender price). If accepted by the employer, the tender price will become the
‘Contract sum’. The form of tender can be a separate document.
2) Summary (or main summary)
This is either at the front or ends of the bills of quantities and comprises a list of the bill that forms
the bills of quantities. The total price for each section/bill is carried forwarded and inserted against
the applicable item listed in the summary. For example the summary/main summary will address
some or all of the following
• Preliminaries
 • Measured works
• Risks
• Provisional sums
• Prime cost sums
• Day works
• Total price
• VAT – if applicable
Preliminaries comprising of both contractual and specific requirements/general items
Contractual requirement: These are requirements covered in the conditions of contract. Space
has to be provided to price for these e.g. performance bond, insurance etc.
General items: these are items other than permanent works which the contractor is requires or
chooses to do that enable him to efficiently execute the contract works.
• General foreman
• Setting out works
• Offices
Insurances
• CAR
• Public liability
Workmen’s compensation
3) Measured work (incorporating contractor designed works)
4) Risks – list of residual risk (un expected expenditure arising from risk that materialize)
covered by lump sum. E.g. disposal of contaminated ground material. Client can decide
to transfer risk to the contractor.
5) Provisional sums
6) Day works section
7) Annexes
MEASUREMENT PRACTICE
It is vitally important that measurement practice applied to buildings is both accurate and
consistent.
There are a number of situations that require a quantity surveyor to measure and record dimensions
from both drawings as well as on site, depending on the stage of the project. In order to standardize
measurement rules and conventions, there are a number of standard codes and methods of
measurement that are available.
Standard Method of Measurement (SMM) is the documentation of rules and provisions that
could be applied in the measurement of works for all major tasks, trades, sections and elements of
construction projects.
Need for SMM as guide to measurement
• Facilitates usage of tender/contractual documents
• Takes into account how costs are incurred
• Reduces likelihood of mistakes
• Reference in case of disputes
• Provides an elaborate and consistent method of measuring works
• Enables comprehensive, accurate, consistent, simplicity and uniformity in preparing bills
of quantities.
We have several methods of measurements on the market depending on the type of project you are
dealing with, region or institution you are affiliated to in practice. Some of which are outlined
below
• Standard Method of Measurement of Building and associated works for Eastern
Africa, 2nd Edition, June 2008 – to be adopted for this course.
• SMM7: Standard Method of Measurement of Building Works, Hardcover – July, 1988
• Malaysia Standard Method of Measurement 2nd Edition May 2000 (SMM2)
• Singapore Standard Method of Measurement 2nd Edition June 1986 (SMM2)
• Hong Kong Standard Method of Measurement 2001 Edition
The purpose of the code is to provide succinct, precise definitions to permit the accurate
measurement of buildings and land, the calculation of the sizes (areas and volumes), and the
description or specification of land and buildings on a common consistent basis.
Other methods of measurement are available for specific types of construction, most notably:
• CESMM3 Civil Engineering Standard Method Of Measurement
• Standard method of measurement for highways
• Standard method of measurement for roads and bridges
• Standard method of measurement for industrial engineering construction, which provides
measurement principles for the estimating, tendering, contract management and cost
control aspects of industrial engineering construction RICS international method of
measurement.