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THE HONG KONG INSTITUTE OF SURVEYORS

QUANTITY SURVEYING DIVISION


ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – 19 & 20 SEPTEMBER 2003

INSTRUCTIONS TO CANDIDATES
** BRING THIS TO THE EXAMINATION HALLS **

This Final Assessment will be held in accordance with the following rules:

1. Time and place:

1.1 The timetable for the Written Test is:

From 10:00 hours to 14:00 hours on Friday and Saturday, 19 & 20 September 2003
at:

The Hong Kong International Trade and Exhibition Centre


1 Trademart Drive
Kowloon Bay
Kowloon

1.2 There will be two examination halls as follows:

a. 3/F, Grand Rotunda;


b. 6/F, Universal Plaza.

2. Checking in

2.1 You are advised to arrive at the examination halls 1 hour earlier to check in.

2.2 The examination hall and the seat number assigned to you will be notified to you at
the entrances to the examination halls. You are advised to check for the information at
the entrance to 3/F, Grand Rotunda or 6/F, Universal Plaza.

2.3 You shall be seated after 9:45 hours and there shall be no unauthorized
communications between candidates after 9:45 hours.

2.4 Question paper in sealed envelopes will be distributed to candidates after 9:45 hours.
You shall not open the envelope until such time when there is an announcement to do
so. You shall check that the seal is intact upon receipt of the envelope. Should you
find the seal broken or the envelope opened, you should raise your hand immediately
and call for an Invigilator’s attention for further action. You should not lower your
hand until an Invigilator comes to you. After distribution of the envelopes to all
candidates present, candidates will be required to conduct a mutual check to verify
that the envelopes have not been opened. Any candidate whose envelope is found to
have been opened before announcement, without prior report, will be dispelled from
the examination halls. The envelope shall be retained for the submission of answer
sheets.

2.5 Candidates arriving later than 9:45 hours will only receive their envelopes after the
current distribution process has been finished.
Instructions to candidates03/pw
HKIS APC FINAL ASSESSMENT
QUANTITY SURVEYING DIVISION
INSTRUCTIONS TO CANDIDATES

2.6 You will not be admitted to the examination halls if you arrive later than 10:30 hours.

3. Leaving the examination halls

3.1 You will not be allowed to leave the examination halls within the first half hour and
the last hour of the four hour examination period.

3.2 Excuse to the rest rooms will be allowed during the remaining period of time for a
maximum of 5 minutes each. You will be accompanied by an Invigilator. Telephone
calls will not be allowed except for emergency matter. The conversation shall be
conducted in front of and open to the Invigilator.

4. Collusion

You should note that co-operation with other candidates or consultation with, or
assistance from, other persons is NOT permitted. You are expressly reminded that
serious disciplinary action will result from any breach of the rule.

5. Answer sheets and folder

5.1 You MUST use the answer sheets in A4 size and folders provided by the Institute in
the examination halls for your answers. Answers should be written on one side only
of the answer sheets.

5.2 Answers shall be given in English.

5.3 Answer sheets shall be put back into the envelope provided for submission, otherwise
they will not be accepted.

5.4 All answer sheets will become the property of the Institute and will not be returned to
the candidates for study or keeping.

6. Identity

You shall only write down your "Candidate Number" on the cover of the folder and
on every page of your answer sheets. The names, logo and other identity of you and
your office should NOT appear in your submission.

7. Stationery

Except for answer sheets and folders, you should provide ALL necessary stationery
for your own use in the Final Assessment.

8. Reference materials

You may bring into the examination halls some reference materials such as standard
forms of contracts, standard methods of measurement, standard office documents,
sample pre- and post contract documents, textbooks, published articles, etc.. However,
for administration purposes and to avoid causing disturbance to other candidates, the
overall size of all of the reference materials is restricted to two lever-arch files (not
exceeding two 350 mm x 300 mm x 80 mm by external dimensions). If the Invigilator
is in doubt of the size of the reference materials which you are intending to bring into
the examination halls, a physical measurement will be carried out to ensure fairness to
other candidates. Boxes will be put at the entrances to the examination halls for
checking of the external dimensions.

APC Final Assessment – Autumn 2003 Page 2 of 6


HKIS APC FINAL ASSESSMENT
QUANTITY SURVEYING DIVISION
INSTRUCTIONS TO CANDIDATES

9. Bags

9.1 Ladies are allowed to bring into the examination halls hand-bags or carrying bags or
purses of reasonably small sizes to contain their personal belongings. Except for this,
all other kinds of bags, rack-sacks or similar containers are not allowed to be brought
to the examination desk and shall be deposited outside or inside the examination halls
at a place designated by the Invigilator.

9.2 Any kind of mobile phones, pagers, calculators, computers, palm PC, pocket PC and
other mechanical, electrical or electronic means which has communication facilities is
not allowed to be brought into the examination halls. Calculators without
communication facilities are permissible. All mobile phones and pagers must be
switched off before being left at the designated storage place.

10. Number of questions

10.1 The number of main questions are as follows:

a. First day – Two compulsory main questions of 25% marks each.

b. Second day – Two compulsory main questions of 25% marks each.

10.2 Within each main question, there will be a varying number of sub-questions some
which are compulsory and some of which are optional.

10.3 The passing mark is 60%.

10.4 Each main question is related to the same project. The sub-questions are posed at
different times of the project. Submissions should be based on information provided
or likely to be available at the time of answering each sub-question, irrespective of the
contents of later sub-questions. Different main questions are not necessarily related.

10.5 You should check that all pages of the question paper are received. Should any page
be missing, you should contact the Invigilator immediately.
11. Time allocation

11.1 You should allocate time properly to answer all the sub-questions. You must not
devote too much time to one sub-question at the expense of the other.

11.2 You should note the marks allocated for the sub-questions and allocate your time
accordingly.

11.3 You must answer all of the main questions and all of the specified number of sub-
questions. Leaving some sub-questions unanswered will very likely result in failure in
the Final Assessment.

12. Standard Form of Contracts

12.1 Due to the variety of standard forms of contracts being used in Hong Kong
particularly for quasi-government bodies, when answers are making reference to a
‘traditional’ standard form of contract, the standard form of contract shall be chosen
from the following for the same main question or sub-question:

APC Final Assessment – Autumn 2003 Page 3 of 6


HKIS APC FINAL ASSESSMENT
QUANTITY SURVEYING DIVISION
INSTRUCTIONS TO CANDIDATES

a. Agreement & Schedule of Conditions of Building Contract for use in the Hong
Kong Special Administrative Region, First RICS (HK Branch) Edition (1986)
incorporating up to Second amendments published July 1999, with or without
quantities;

b. Sub-Contract for use where the Sub-Contractor is nominated under the


Standard Form of Building Contract for Hong Kong, First RICS (HK Branch)
Edition (1986) incorporating up to Second amendments published February
2000;
c. General Conditions of Contract for Building Works 1999 Edition published by
the Government of the Hong Kong Special Administrative Region;
d. General Conditions of Contract for Civil Engineering Works 1999 Edition
published by the Government of the Hong Kong Special Administrative
Region;
e. Government of Hong Kong Sub-Contract Articles and Agreement and
Conditions for Building Works, 1988 Edition or 2000 Edition;
f. Government of Hong Kong Sub-Contract Articles and Agreement and
Conditions for Civil Engineering Works, 1988 Edition.

12.2 You are advised to bring a set of the above documents to the examination halls.

12.3 You shall clearly state in your answers the standard form of contract you are referring
to.

12.4 You may refer to different standard forms when answering different main questions or
sub-questions.

12.5 You do not have to submit copies of the above standard forms of contracts with your
answers.

12.6 When the questions are dealing with non-traditional forms of contracts, you are not
restricted to the above standard forms of contracts.

13. Standard Method of Measurement


13.1 When answers are making reference to standard method of measurement, the standard
method of measurement shall be chosen from one of the following for the same main
question or sub-question:

a. Hong Kong Standard Method of Measurement of Building Works Third


Edition Metric February, 1979;
b. Standard Method of Measurement for Civil Engineering Works, 1992 Edition,
published by the Hong Kong Government.

13.2 You are advised to bring both documents to the examination halls.

13.3 You shall clearly state in your answers which standard method of measurement you
are referring to.

13.4 You may refer to different standard method of measurement when answering different
main questions or sub-questions.

13.5 You do not have to submit copies of the above standard method of measurement with
your answers.

APC Final Assessment – Autumn 2003 Page 4 of 6


HKIS APC FINAL ASSESSMENT
QUANTITY SURVEYING DIVISION
INSTRUCTIONS TO CANDIDATES

14. Office documents

You are allowed to bring into the examination halls your office standards or past
documents for reference.

15. Cut and paste

15.1 In principle, you are required to write all your answers. However, you are allowed to
cut and paste extracts from your office standards or past documents into the answers
to simulate your real life normal office practice particularly when you are running out
of time. It is important that the extracts should not bear the name, logo or other
identity of your office. Some offices will have style and format which may easily be
recognizable by the assessors as to the identity of the offices. This may affect the
marking of the assessors favourably or unfavourably at your own risk. It should be
noted that too many extracts from others without your own original words and ideas
will not enhance your marks.

15.2 You are allowed and indeed encouraged to mark on the question paper and return it
with the answers if you feel that this is the most expedient way to answer a particular
sub-question and this is the usual practice when you are dealing with your real life
office work, e.g. checking quotations.

16. Objective

The objective of the Final Assessment is not to set an examination type of question,
but to enable candidates to draw up considered answers to a series of problems which
might appear in a normal working situation, and which will involve the candidates to
exercise professional judgment.

17. Length of answers

17.1 When you are required to draft a reply in the form of a letter or fax, you should bear
in mind the length to be expected in real life situation, and do not write unnecessarily
long letter or fax.

17.2 Answers must be concise, precise and to the point.

18. Supporting documents

18.1 In support of your front answers, you may need to prepare backup information, such
as calculations, notes, assumptions, references, etc., which in real life office situation
may not be enclosed with or attached to the outgoing letter or fax, but will be kept as
internal reference. For the Final Assessment, you should include such backup
information in your answer submissions in a systematic manner to demonstrate the
logic of your thinking.

18.2 The questions themselves may not give sufficient background information of the case
at issue. In real life office situation, you would investigate the issues further before you
could answer the questions. For the Final Assessment, you are free to assume and
simulate the background of the case by way of providing records of telephone
conversations, faxes, letters, etc. Such assumptions and simulations should be done in
such a way to show that you are knowledgeable rather than to evade from the
questions.

APC Final Assessment – Autumn 2003 Page 5 of 6


HKIS APC FINAL ASSESSMENT
QUANTITY SURVEYING DIVISION
INSTRUCTIONS TO CANDIDATES

18.3 You should include with your submission all supporting documents as described above
used in determining your conclusions and recommendations. All supporting documents
will be taken into account in the assessment. However, care should be exercised to
ensure that the supporting documents do not contain, without explanation, information
contrary to those put forward in the front answers. Do not spend too much time on the
supporting documents if the front answers are self sufficient.

19. Capacity to answer

19.1 If you are required to assume a position in some questions, you shall answer in that
position.

19.2 If you are free to choose between different optional positions, you are free to choose
the position that you think best to answer the question irrespective of your own real
type of employment. Therefore, you may pretend to be a Contractor QS though you
actually are a Consultant QS.

19.3 You do not have to adopt the same position when answering different main questions.

19.4 It should be noted that there may not be absolutely right or wrong answers. Whether
you are answering as a Consultant QS or Contractor QS, your answers should be given
in a professional, fair and reasonable manner with sound argument.

20. Answering the questions

20.1 It is important to understand the questions and to give sound, well thought out
responses. You should identify the real and core issues, beware of pitfalls, consider
possible alternative interpretations and answers, consider side effects and options, and
give solid professional advice which will move the matters forward.

20.2 Answer like "I don't know, I will have to consult my boss" will not suffice.

20.3 Answers should be presented in a structured manner. They must have introduction,
main response and conclusion. Letters and memo should have proper salutation and
ending. Response should be set out in appropriate paragraphs. If would be easier for
the reader to comprehend if points are presented with itemized reference numbers
instead of being packed in one long paragraph. On the other hand, bullet points with
keywords only without elaboration may not be adequate to convey the message.

20.4 Conclusion and recommendation are always essential. Qualifications may also be
desirable.

21 Practice notes

You are advised to visit HKIS web-site at http://www.hkis.org.hk > QS Division >
Professional Development > APC to download a set of practice notes which may be
helpful to candidates. The practice notes should not be treated as part of these
Instructions nor part of the formal rules and regulations.

22 Typhoon & rainstorm

The Written Test will be postponed if typhoon signal No. 8 or above or the black
rainstorm warning is in effect at 7:45 hours on the day of the Test. Notice of
postponement will be issued later.

- End -

APC Final Assessment – Autumn 2003 Page 6 of 6


THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION

ASSESSMENT OF PROFESSIONAL COMPETENCE

FINAL ASSESSMENT – AUTUMN 2003

PRACTICE PROBLEM

Friday, 19th September, 2003

hkisQSDAPC2003Qa Page 1 of 6
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – AUTUMN 2003
PRACTICE PROBLEM
th
QUESTIONS FOR THE FIRST DAY - 10:00 am to 2:00 pm, Friday, 19 September, 2003

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 – Two main questions worth 25 marks each.

(2) Second day – Two main questions worth 25 marks each.

C. All Main Questions and Sub-Questions are compulsory. Within some Sub-
Questions, there are optional parts.

D. The total mark is 100. The overall pass mark is 60. Marks will be assessed to fractions
of one unit.

E. Refer also to INSTRUCTIONS TO CANDIDATES that were issued to you in advance.

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 this person as a qualified Professional Surveyor?”. 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 of depth that is appropriate to the stage reached
by Candidates and the time constraints imposed on Candidates.

4. Judgment: 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.

hkisQSDAPC2003Qa Page 2 of 6
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – AUTUMN 2003
PRACTICE PROBLEM
th
QUESTIONS FOR THE FIRST DAY - 10:00 am to 2:00 pm, Friday, 19 September, 2003

5. Communication: Clear expression without ambiguity or irrelevant


or inappropriate technical details, particularly when provided to a lay
client. Correct syntax and good professional style in letters and
reports are important. Candidates should clearly convey their
interpretations and proposals.

QUESTION 1 SAVINGS IN TIME AND COSTS (total 25 marks)

Sub-Questions 1.1 and 1.2 are related, while Sub-Question 1.3 is independent from them.

1.1 Project programme (total 5 marks)

A developer has just acquired a 20,000 m2 piece of land from the existing landowners
with planning permission for residential development only.

The permissible site coverage is 95% and the permissible plot ratio is 8. The height
restriction is 150 m.

The land sale has been concluded but there are existing occupied buildings, of not more
than 10 storeys high, on the land. The Developer has to negotiate with and pay
compensation to the occupiers to secure their evacuation from the land. It is expected
that evacuation will be completed 12 months from now.

The Chairman of the Developer would like to build high-rise residential towers with
flat sizes in the range of 80 m2 to 120 m2.

Write, as the Developer’s Project Manager, a memo to the Chairman enclosing a bar
chart programme showing the time required for design and construction from now until
completion of the buildings and the obtaining of occupation permits.

While the fine details normally found in a contractor’s construction programme are not
expected, the programme should be as comprehensive as possible in terms of scope.

hkisQSDAPC2003Qa Page 3 of 6
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – AUTUMN 2003
PRACTICE PROBLEM
th
QUESTIONS FOR THE FIRST DAY - 10:00 am to 2:00 pm, Friday, 19 September, 2003

1.2 Time factors in design and construction (total 15 marks)

It is now 9 months after you first prepared the Project Programme for Sub-Question
1.1. Evacuation of the existing occupiers has not been easy. Compensation agreements
have just been signed with all the existing occupiers under which they have committed
to leave the land 12 months from now. This is later than the original date envisaged in
your first Project Programme.

The Chairman has demanded that the original completion date in your first Project
Programme should not be changed and has asked you to submit, for his consideration, a
report setting out all the possible measures which may be used to shorten the
programme so that the original completion date is maintained, subject to the following
constraints:

(a) The total floor areas cannot be reduced;


(b) The time for evacuation of the existing occupiers from the land would not be
changed; and
(c) The permissible land use would not be modified.

Respond, state limitations to each measure proposed and give a priority ranking of the
measures proposed. You know that the Chairman is generally receptive to new ideas.

1.3 Cost factors in construction (total 5 marks)

In this very competitive bidding environment, contractors are tendering at cost or even
below cost in order to survive.

Either: Write, as a Contractor’s QS, a memo to your Project Director to suggest ways
and means to reduce the tender prices, reduce the costs and enhance profits, without
compromising the quality and safety of construction.

Or: Write, as a Consultant QS, a letter to the Employer, after the award of the Contract,
to suggest ways and means to help the Contractor, who has submitted an apparently
very low tender, to complete the Contract without making unreasonable claims and
without compromising the quality, safety and time of construction.

hkisQSDAPC2003Qa Page 4 of 6
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – AUTUMN 2003
PRACTICE PROBLEM
th
QUESTIONS FOR THE FIRST DAY - 10:00 am to 2:00 pm, Friday, 19 September, 2003

QUESTION 2 TENDERING (total 25 marks)

You act as the Consultant QS for Question 2.

2.1 Piling tenders with design submission (total 10 marks)

Write a letter to the Architect to advise on the following:

(a) Apart from the Form of Tender and the Summary of Tender, what are the
usual submissions required to be provided with a tender for the design and
installation of foundation piles, differentiating between those which are
contractually binding and those which are for reference only. Give reasons for
requiring these submissions and for the differentiation;

(b) Inconvenience to tender assessment if information submitted is not complete;

(c) Possible reasons for tenderers being reluctant to submit all the information as
requested;

(d) Reasons for imposing a rule to disqualify tenderers who fail to provide all the
submissions as requested, drawbacks if this rule is strictly followed, and pitfalls if
this imposed rule is subsequently relaxed;

(e) Pitfalls in inviting tenderers to submit outstanding information after the


opening of tenders; and

(f) Consolidated solutions to reduce the problems revealed in the above


discussions, with reasonable balance between the interests of different parties
involved.

2.2 Tender assessment (total 10 marks)

The Conditions of Tender for a building contract with Bills of Quantities state that
tenderers shall fully complete, sign, witness and date the Form of Tender, shall fully
price, extend, cast and total the BQ and shall not qualify the tenders, and that failing to
do so may invalidate their tenders.

After checking the tenders and interviewing the tenderers, you have found that the
lowest tender, being 5% lower than the second lowest tender, contains the following
irregularities:

(a) The Registration No. and the date of expiry of the Tenderer’s Company
Registration Certificate have not been stated on the Form of Tender as required;

hkisQSDAPC2003Qa Page 5 of 6
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – AUTUMN 2003
PRACTICE PROBLEM
th
QUESTIONS FOR THE FIRST DAY - 10:00 am to 2:00 pm, Friday, 19 September, 2003

(b) The Tender Sum as stated in words in the Form of Tender, the Tender Sum as
stated in figures in the Form of Tender and the priced total of the BQ do not tally
with one another;

(c) The quantity of a BQ item has been changed from 100 m3 to 150 m3 without
prior authorization;

(d) A Tender Addendum which required changes to the BQ has not been
incorporated;

(e) Only a total sum has been inserted on the collection page of the Plasterer Bill,
with no rates and item/page totals inserted on any page of that Bill; and

(f) The rate for the external wall tiling for the whole building is 70% lower than
those of other tenders. At the tender interview, the lowest tenderer explained that
it was because he considered that there would be a very high chance that the
specified external wall tiling would be omitted at post-contract stage due to
cessation of production and that it would be replaced by another type of finish.
He also proposed at the meeting that the submitted rates would be applicable to
another type of external wall finish if selected as the replacement. You find that
this alternative is normally 70% cheaper than that specified in the BQ.

Now, just prior to the completion of the final tender report, write a memo to your
supervisor to inform him what you have done to handle each of the above cases, your
recommendations to be put into the tender report, and the rationale behind all these.

2.3 Professional ethics (total 5 marks)

Write a memo to your assistants who are about to take part in analysing tenders to
describe:

(a) Measures which should be implemented to uphold professional ethics; and

(b) Acts which are likely to be perceived as corrupt practices.

** END OF PAPER **

hkisQSDAPC2003Qa Page 6 of 6
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION

ASSESSMENT OF PROFESSIONAL COMPETENCE

FINAL ASSESSMENT – AUTUMN 2003

PRACTICE PROBLEM

Saturday, 20th September, 2003

hkisQSDAPC2003Qb Page 1 of 8
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – AUTUMN 2003
PRACTICE PROBLEM
th
QUESTIONS FOR THE SECOND DAY - 10:00 am to 2:00 pm, Saturday, 20 September, 2003

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 – Two main questions worth 25 marks each.

(2) Second day – Two main questions worth 25 marks each.

C. All Main Questions and Sub-Questions are compulsory. Within some Sub-
Questions, there are optional parts.

D. The total mark is 100. The overall pass mark is 60. Marks will be assessed to fractions
of one unit.

E. Refer also to INSTRUCTIONS TO CANDIDATES that were issued to you in advance.

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 this person as a qualified Professional Surveyor?”. 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 of depth that is appropriate to the stage reached
by Candidates and the time constraints imposed on Candidates.

4. Judgment: 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.

hkisQSDAPC2003Qb Page 2 of 8
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – AUTUMN 2003
PRACTICE PROBLEM
th
QUESTIONS FOR THE SECOND DAY - 10:00 am to 2:00 pm, Saturday, 20 September, 2003

5. Communication: Clear expression without ambiguity or irrelevant


or inappropriate technical details, particularly when provided to a lay
client. Correct syntax and good professional style in letters and
reports are important. Candidates should clearly convey their
interpretations and proposals.

QUESTION 3 POST CONTRACT (total 25 marks)

3.1 Contract Documents (total 5 marks)

In the second month of the construction of a project, the Contractor applies for 30% of
the Contract Sum as the first payment based on a special term inserted by the
Contractor in the Form of Tender during tendering, while the draft payment valuation
issued by the Contract Administrator amounts to only 5% of the Contract Sum, based
on normal valuation of progress. It is found that the Form of Tender is not physically
bound into the Contract Documents which have already been bound and signed.

Acting as an independent expert QS, write a letter to the Employer to advise what
should be investigated to find the facts of the case and whether the special payment
terms should be entertained based on the possible findings.

3.2 Payment for materials (total 5 marks)

The Schedule of Rates for a contract has included a rate of $120/m for 200 mm
underground drain pipes. The Contractor has applied for payment for materials on site
at $105/m supported by a supplier’s invoice and delivery note showing $105/m. The
Contract Administrator has only valued the payment amount for materials on site at
$55/m.

Acting as an independent expert QS, write a letter to the Employer to advise on:

(a) The respective grounds of the Contractor and the Contract Administrator;

(b) Your opinion as to the correct interpretation; and

(c) Your recommended solution to balance the interests of the Employer and the
Contractor.

hkisQSDAPC2003Qb Page 3 of 8
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – AUTUMN 2003
PRACTICE PROBLEM
th
QUESTIONS FOR THE SECOND DAY - 10:00 am to 2:00 pm, Saturday, 20 September, 2003

3.3 Extension of time (total 15 marks)

The particulars of a contract are as follows:

(i) Contract scope: major A&A works to an existing rehabilitation centre


located on five floors of a multi-storey multi-purpose complex.

(ii) Original Contract Sum: $30 Million.

(iii) Original Contract Period: 12 months.

(iv) Contract Commencement Date: 12/3/2002.

(v) Contract Date for Completion: 11/3/2003.

(vi) Liquidated and Ascertained Damages: $15,000 per day.

You may assume the use of any one of the current Private or Government Standard
Forms of Contract for Building or Civil Engineering Construction for this sub-question,
and you shall specify the Form chosen in your answers.

By February, 2003, the Contractor had been in serious delay with no entitlement to
extension of time. According to the Contractor’s revised programme submitted on
15/2/2003, his anticipated date for completion of the Contract was mid May 2003, i.e. a
two-month delay was anticipated. The Architect had endorsed such revised programme
after he had examined it.

On 22/3/2003, there were suspected cases of SARS amongst other occupants of another
organisation on another floor within the multi-purpose complex and the complex was
subject to tight ingress/egress control by the Health Authorities awaiting medical
diagnosis of the patients. The patients’ illnesses were later confirmed to be non-SARS
related, and the control was lifted on 2/5/2003 but no construction work was possible
during the controlled period. The % value of work completed upon suspension of work
was 65% of the Original Contract Sum.

The Operator of the Centre, after reviewing the situation, instructed the Contractor via
the Architect to continue suspension of the Works until further notice.

hkisQSDAPC2003Qb Page 4 of 8
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – AUTUMN 2003
PRACTICE PROBLEM
th
QUESTIONS FOR THE SECOND DAY - 10:00 am to 2:00 pm, Saturday, 20 September, 2003

Questions:

(a) The date now is 18/6/2003. As the Contractor’s QS, submit to your Project
Director:

(i) A programme depicting the various events described above; and


(ii) A full appraisal of the contractual and financial positions of the
Employer and the Contractor, with suggestions on possible viable options to
the Contractor in such circumstance to assist your Project Director to decide
on his future course of action.

(b) With assurances from the Employer that the case would be dealt with fairly
and reasonably according to the Contract, the Contractor resumed work on
28/6/2003 upon instruction and practically completed the Works on 18/9/2003.

The date now is 20/9/2003. As the Consultant QS on the Project, write to advise
the Employer on the Contractor’s entitlement to extension of time, and liability
for liquidated damages, with references to the relevant provisions/conditions of
the Contract.

QUESTION 4 FINAL ACCOUNTS (total 25 marks)

A contract for the construction of a residential building with 30 storeys of typical floors plus
G/F and Roof (excluding foundations but including all building services as domestic sub-
contract work), tendered based on Drawings and Specification without Bills of Quantities,
contains the following price breakdown:

Description Amount ($)


Preliminaries 7,000,000
Measured Works for Typical Floors from 1/F to 30/F 40,000,000
Measured Works for G/F and Roof 5,000,000
Provisional Sums 5,000,000
Contingencies 2,000,000
Total Contract Sum: 59,000,000

hkisQSDAPC2003Qb Page 5 of 8
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – AUTUMN 2003
PRACTICE PROBLEM
th
QUESTIONS FOR THE SECOND DAY - 10:00 am to 2:00 pm, Saturday, 20 September, 2003

The price breakdown for the Measured Works for Typical Floors from 1/F to 30/F contains,
amongst others, the following items:

Item Description Qty Uni Rate $


t
10 mm “ABC” Ceramic tiling bedded
on and including cement and sand
(1:3) bedding and screeding, to
internal floors
7/A Tile and screed overall 30 mm thick 700 m2 150.00 105,000.00
7/B Tile and screed overall 60 mm thick 500 m2 200.00 100,000.00
20 mm “XYZ” Artificial granite slab
bedded on and including cement and
sand (1:3) bedding and screeding, as
external paving
7/C Slab and screed overall 50 mm thick 100 m2 1,800.00 180,000.00
7/D Slab and screed overall 150 mm thick 50 m2 830.00 41,500.00

As evidenced by the sole supplier’s quotations submitted after the award of the Contract, the
supply rate for “ABC” ceramic tiling is $50.00/m2 and the supply rate for “XYZ” artificial
granite slab is $800.00/m2.

It is also found after the award of the Contract that the correct quantity of item 7/C is 50 m2.

The Architect’s fee is very low matching a very limited scope of service. No Consultant QS
has been appointed. The final account is basically being settled by the Employer himself with
the Contractor. Disagreements have arisen between the Employer and the Contractor.

You act as an independent QS expert to advise a dispute resolution committee set up between
the top management of the Employer and the Contractor on Sub-Questions 4.1 to 4.3 below.
In each case,

(i) Describe the possible arguments from each of the contracting parties;

(ii) State your opinion as to the correct view;

(iii) Suggest a solution to the problem, striking a proper balance between the interests
of the contracting parties when neither of them is absolutely right; and

(iv) Describe measures which should have been taken to avoid such problems.

hkisQSDAPC2003Qb Page 6 of 8
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – AUTUMN 2003
PRACTICE PROBLEM
th
QUESTIONS FOR THE SECOND DAY - 10:00 am to 2:00 pm, Saturday, 20 September, 2003

Questions:

4.1 Valuation of variations (total 15 marks)

Address disagreements over the valuation of any 4 out of the following 6 variations:

(a) Omit the top most typical floor, instructed when the construction of the R.C.
structure reached 25/F;

(b) Change the pattern of the teak parquet flooring from basket pattern to
herringbone pattern, instructed when the teak parquet flooring was already
delivered to a store on G/F;

(c) Add 100 m2 of the original artificial granite slab paving, but with an overall
thickness of 100 mm including screeding;

(d) Increase the area of item 7/D above by 100 m2;

(e) Change “XYZ” artificial granite slab to 15 mm “PQR” artificial granite tile at
supply rate of $200/m2; and

(f) Omit the work represented by item 7/C above entirely.

4.2 Indirect costs in unit rates (total 5 marks)

Address the disagreement over a claim submitted by the Contractor that when building
up star rates for variation additions, in addition to the normal markup of 15% for profit
and overhead, extra allowances should also be made for insurance premiums which
have not specifically been priced against the relevant preliminaries items but have been
allowed for in the rates for the measured works. The insurance premiums initially paid,
based on the original contract sum, are $2,400,000.

hkisQSDAPC2003Qb Page 7 of 8
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – AUTUMN 2003
PRACTICE PROBLEM
th
QUESTIONS FOR THE SECOND DAY - 10:00 am to 2:00 pm, Saturday, 20 September, 2003

4.3 Mark-up for overheads and profit (total 5 marks)

Address a disagreement over a star rate build-up submitted by the Contractor for the
addition of 200 No. metal lockers (with no similar items in the Contract) as follows:

$/No.
(a) Supply and fix “ABC” brand metal lockers as attached sub- 2,530
contractor’s invoice
(b) Add 15% profit and overhead 380
All-in rate 2,910

The Sub-Contractor’s invoice shows the following rate build-up:

$/No.
(a) Supply and deliver to site “ABC” brand metal lockers by 2,000
ABC Metal Lockers Company
(b) Labour and plant placing into position 200
(c) Sub-total 2,200
(d) Add 15% profit and overhead 330
All-in rate 2,530

You may assume the use of any one of the current Private or Government Standard
Forms of Contract for Building or Civil Engineering Construction for this sub-question,
and you shall specify the Form chosen in your answers.

** END OF PAPER **

hkisQSDAPC2003Qb Page 8 of 8

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