Professional Documents
Culture Documents
Practice Problem2005
Practice Problem2005
Practice Problem2005
PRACTICE PROBLEM
Page 1 of 12
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – AUTUMN 2005
PRACTICE PROBLEM
th
QUESTIONS FOR THE FIRST DAY - 10:00 am to 2:00 pm, Thursday, 15 September, 2005
NOTES TO CANDIDATES
U
A. Headings to questions are for ease of identification only and do not form part of
the questions.
D. The total mark is 100. The overall pass mark is 55. Marks will be assessed to
fractions of one unit.
Page 2 of 12
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – AUTUMN 2005
PRACTICE PROBLEM
th
QUESTIONS FOR THE FIRST DAY - 10:00 am to 2:00 pm, Thursday, 15 September, 2005
QUESTION 1
U U (total 25 marks)
In this question you are to assume the respective roles as described in each part of
the question.
The project involves a residential development estimated to cost $300M, and with a
contract period of 30 months.
Part A – Preliminaries
U U
You are the project quantity surveyor of the consultant QS for the project. In the
analysis of tenders for the superstructure submitted last month, your assistant QS
has compiled the attached table comparing the allowances by the lowest three
tenderers for the various preliminaries items in the tender.
Upon receiving the comparison, the Employer’s project manager has asked for your
advice on the following:
1.A1) For item 16.0, the second lowest tenderer didn’t price anything for
insurances and bond. How should this issue and other un-priced items be
dealt with? (2 marks)
1.A2) For item 14.05, there is a vast difference between the lowest tenderer’s
allowance and those of the other two. What would be a reasonable
allowance and how should it be assessed? (2 marks)
1.A3) Adequate site management by the Main Contractor is the project manager’s
key concern for this project. Without referring to the details in the tender
documents and before asking the tenderers, what is your preliminary advice
and comments on the allowances by the respective tenderers on this issue?
What approach would you take to come up with your comments?
(2 marks)
1.A4) For item 18.02 – hoarding, the allowance by the lowest tenderer is obviously
an overpricing, considering the existing hoarding is already provided under
the previous foundation contract. What is the likely exposure to the
Employer in this regard and what measures should be taken to protect the
Employer’s interest? (2 marks)
Page 3 of 12
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – AUTUMN 2005
PRACTICE PROBLEM
th
QUESTIONS FOR THE FIRST DAY - 10:00 am to 2:00 pm, Thursday, 15 September, 2005
QUESTION 1 (Cont’d)
U
Part A (Cont’d)
U
U MAIN CONTRACT U
U FOR PRELIMINARIES (Note: Only those items priced by the tenderers are listed out) U
Description
A B C
U U
U U U U U U
Page 4 of 12
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – AUTUMN 2005
PRACTICE PROBLEM
th
QUESTIONS FOR THE FIRST DAY - 10:00 am to 2:00 pm, Thursday, 15 September, 2005
QUESTION 1 (Cont’d)
U
Part A (Cont’d)
U U
U MAIN CONTRACT U
Description
A B C
U U
U U U U U U
Page 5 of 12
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – AUTUMN 2005
PRACTICE PROBLEM
th
QUESTIONS FOR THE FIRST DAY - 10:00 am to 2:00 pm, Thursday, 15 September, 2005
QUESTION 1 (Cont’d)
U
Part A (Cont’d)
U U
U MAIN CONTRACT U
Description
A B C
U U
U U U U U U
17.10 Clearing away rubbish during the progress of the 2,000,000.00 1,898,671.00
works
18.03 Main Contractor's storage sheds, workshops and 433,000.00 600,000.00 506,710.00
offices
18.04 Office for Architect, Site Engineer and Clerk of 300,000.00 200,000.00 212,220.00
Works
Page 6 of 12
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – AUTUMN 2005
PRACTICE PROBLEM
th
QUESTIONS FOR THE FIRST DAY - 10:00 am to 2:00 pm, Thursday, 15 September, 2005
QUESTION 1 (Cont’d)
U
Part A (Cont’d)
U U
U MAIN CONTRACT U
Description
A B C
U U
U U U U U U
Tendered Amount
280,800,000.00 300,500,000.00 303,800,000.00
Page 7 of 12
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – AUTUMN 2005
PRACTICE PROBLEM
th
QUESTIONS FOR THE FIRST DAY - 10:00 am to 2:00 pm, Thursday, 15 September, 2005
QUESTION 1 (Cont’d)
U
The Employer intends to order and purchase direct from an overseas tile
manufacturer specially kilned tiles with unique colour and surface features as
cladding to the external walls of the podium and lowest 3 floors of the residential
towers. Such tiles are to be handed over to and installed by the Main Contractor as
part of the main contract works. As his consultant QS, he asked for your advice on
any issues that should be addressed in the supply contract and in the Main Contract
tender documents to protect the Employer’s interests. (5 marks)
You are a quantity surveyor working in a fire services contracting company. Your
company has recently been nominated by the Employer under an Architect’s
instruction to the Main Contractor for a Nominated Sub-contract to carry out the fire
services works in the residential development project. Yesterday, your boss received
the following letter from the Main Contractor about their in-house rules.
Page 8 of 12
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – AUTUMN 2005
PRACTICE PROBLEM
th
QUESTIONS FOR THE FIRST DAY - 10:00 am to 2:00 pm, Thursday, 15 September, 2005
QUESTION 1 (Cont’d)
U U
Part C (Cont’d)
U U
(1) You shall strictly comply with our in-house rules as per the enclosed Appendix.
(2) This letter together with the enclosed Appendix shall form part of the Nominated
Sub-Contract which is to be entered into between you and us. No claims for
extra cost and time shall be entertained for full compliance with the same
Please confirm to us that you understand and agree to the above terms and conditions
within the next 7 days.
Yours faithfully,
Page 9 of 12
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – AUTUMN 2005
PRACTICE PROBLEM
th
QUESTIONS FOR THE FIRST DAY - 10:00 am to 2:00 pm, Thursday, 15 September, 2005
The Sub-contractor has acknowledged that any breach by him of the provisions of this Schedule may
result in the imposition of fines by the Main Contractor and all such fines were agreed to be within the
contemplation of the parties as being probable results of any such breach by the Sub-contractor. The
aforementioned fines are :-
No. Description
U U First Time Repeat
(HK$) (HK$)
1.0 Safety Administration
U U
2.1 Fail to ensure that employees attend Green Card / Induction 3,000 5,000
training
2.2 Fail to ensure that employees attend training other than 2,000 3,000
Green Card / Induction
2.3 Fail to submit / update training record 2,000 3,000
3.0 Personal Protection
U U
& subsequent
times 5,000
Page 10 of 12
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – AUTUMN 2005
PRACTICE PROBLEM
th
QUESTIONS FOR THE FIRST DAY - 10:00 am to 2:00 pm, Thursday, 15 September, 2005
QUESTION 1 (Cont’d)
U U
The project is approaching completion. In early July 2005, the Main Contractor has
encountered his own delay to the Works due to defects rectification required by the
Architect as a result of hairline cracks appearing in the plaster and paint in the typical
lobbies. The Main Contractor anticipates that the original Works could only be
completed by end September 2005. At the same time in July 2005, he has also
submitted an extension of time claim of 60 days in total for the delay due to the
Architect’s late instructions for the following items, which are amongst the last items in
his programme before completion.
Such EOT claim, if granted, would have the effect of extending the original date for
completion from 31st August 2005 to end October 2005, thereby enabling him to
P P
complete the original Works, including the above items, without any delay.
On receiving the claim, however, the Architect did not grant EOT to the Main
Contractor. Instead, in early September 2005, he issued a Certificate of Practical
Completion to the Main Contractor certifying that the Works were practically
completed on 31st August 2005 and listing the above items which were still not
P P
completed, plus un-completed plaster and paint rectification works in the Main
Contract as outstanding works and defects. Accordingly, the EOT claim in respect of
the Architect’s late instruction for the above items has also been rejected by the
Architect.
1.D1) As a quantity surveyor working for the Main Contractor, you are asked by your
boss to give an appraisal of the situation and comment on the validity of the
said Certificate of Practical Completion. (4 marks)
1.D2) The Main Contractor has another public residential building project in hand.
The boss of the Main Contractor is also concerned about the implication to the
validity of the Certificate of Substantial Completion if the Architect of that public
residential building project also deals with the matters of extension of time and
the completion date in the same way as this private residential building project.
As a quantity surveyor working for the Main Contractor, you are required by
your boss to advise him your view on his areas of concern. Please write a
memo as per his request. (2 marks)
Page 11 of 12
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – AUTUMN 2005
PRACTICE PROBLEM
th
QUESTIONS FOR THE FIRST DAY - 10:00 am to 2:00 pm, Thursday, 15 September, 2005
QUESTION 2
U U (total 25 marks)
You are working as an in-house quantity surveyor within the Development and
Projects Department of a hotel group which operates more than forty 4-star hotels in
different countries throughout Asia.
2.A1) The General Manager wishes to know the various contributing factors in
different localities affecting plant, labour and material which in turn contribute to
the varying construction costs. Your manager asks you for an internal memo to
be drafted for his reply to the General Manager. (7 marks)
2.A2) After reading your memo, the General Manager wants you to advise him of any
other major contributing factors, including but not limited to those project
specific ones and location-related ones which affect construction unit costs.
(7 marks)
** END OF PAPER **
Page 12 of 12
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
PRACTICE PROBLEM
Page 1 of 7
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – AUTUMN 2005
PRACTICE PROBLEM
th
QUESTIONS FOR THE SECOND DAY - 10:00 am to 2:00 pm, Friday, 16 September, 2005
NOTES TO CANDIDATES
A. Headings to questions are for ease of identification only and do not form part of the
questions.
D. The total mark is 100. The overall pass mark is 55. Marks will be assessed to fractions
of one unit.
Page 2 of 7
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – AUTUMN 2005
PRACTICE PROBLEM
th
QUESTIONS FOR THE SECOND DAY - 10:00 am to 2:00 pm, Friday, 16 September, 2005
In the ninth month of an 18-month 3-phase renovation project of an existing 35-storey hotel
consisting of 600 rooms which is still in operation, the client was unable to honour one
payment certified by the Architect in accordance with the contract in which you are the
consultant QS. Your client has said he encountered a temporary shortage in funding.
However, he is confident that alternative funding will be available in three months.
3.B1) Your Client asked you, as his consultant QS, for advice on how this plant can be
incorporated into the Main Contract to meet his requirements, and the contractual
implications and other issues that need to be dealt with. (9 marks)
3.B2) If the construction of this plant cannot be carried out by the existing Main Contractor,
what are the options available to the Client for achieving his scheme and what will be
the impacts to his project. (4 marks)
Page 3 of 7
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – AUTUMN 2005
PRACTICE PROBLEM
th
QUESTIONS FOR THE SECOND DAY - 10:00 am to 2:00 pm, Friday, 16 September, 2005
The Client has just received a Sale Proposal (copy attached) from an overseas shuttle
coaster manufacturer for the design and commissioning of an unprecedented indoor shuttle
coaster ride, which is intended to be installed in the large atrium area of a shopping mall.
The Client considers the ride is exactly what he needs for his theme shopping mall which is
now undergoing the last stage of detailed design. The shopping mall is anticipated to be
completed 18 months after award of Main Contract.
The Client wishes you to give him advice relating to the introduction of the shuttle coaster
into the project.
As the consultant project quantity surveyor, you are required by your director to study the
Sale Proposal from the overseas manufacturer and comment on its comprehensiveness in
cost and scope coverage for the integration of a complete installation and operation of the
shuttle coaster within the building. Your director also asked for your view on any other
issues that the Client will need to be aware of in relation to the Sale Proposal if the Client
were to conclude the deal with the manufacturer. He asked for an internal memo to be
prepared for his further discussion with the Client. (8 marks)
The Client noted your firm’s findings based on your memo to your director, and has asked
for your firm’s further advice on any other associated items with cost impact on the project.
Your director now asked you to list down, for discussion with you tomorrow, any
considerations including but not limited to additions or changes (temporary or permanent) to
the building design and the subsequent construction of the shopping mall to incorporate the
shuttle coaster, together with your recommended actions in order the relevant costs can be
ascertained. (8 marks)
Page 4 of 7
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – AUTUMN 2005
PRACTICE PROBLEM
th
QUESTIONS FOR THE SECOND DAY - 10:00 am to 2:00 pm, Friday, 16 September, 2005
QUESTION 4 (Cont’d)
Part C – Pre-qualification
Due to the specialist nature, you have proposed to your Client selective tendering
arrangement for the on-site installation of the shuttle coaster. Your Client agreed to your
proposal and has asked you to prepare a list of pre-qualification criteria for selection of the
tenderers, together with a brief explanation of your criteria. (6 marks)
You were told by your boss that in the meeting with the Client, the Client has expressed his
worries on the payment terms as he was not familiar with doing business with overseas
vendors.
You are instructed to advise the likely implications of the overseas manufacturer’s proposed
payment terms, and suggest any possible ways of improving them, for discussion with the
Client. (3 marks)
Page 5 of 7
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – AUTUMN 2005
PRACTICE PROBLEM
th
QUESTIONS FOR THE SECOND DAY - 10:00 am to 2:00 pm, Friday, 16 September, 2005
* * * * * * * * SALE PROPOSAL * * * * * * * *
Dear Sirs,
We refer to your email enquiry of 2 September 2005 and have great pleasure to
introduce our Shuttle Coaster and sale proposal for your perusal.
The Shuttle Coaster is a state of the art entertainment vehicle specially made for dual
purposes: conveyance of pedestrian traffic and enjoyment of an elevated fun ride.
The Shuttle Coaster is our newest design and is especially suitable for installation within
an indoor facility with large spans and sufficient height. Our proposed design for your facility
is an overall riding distance of 950m and travelling height of 16.5m. The total travelling time
for one complete trip, based on our medium speed mode, is approximately 1 minute 30
seconds. Please see attached diagram SK-001 for the layout of the proposed route of the
Shuttle Coaster.
Our offer is for the design, manufacture, delivery, testing and commissioning of the
Shuttle Coaster. We guarantee that the assembly will be in full compliance with the current
applicable European standards for similar entertainment facilities.
The design will be for the complete Shuttle Coaster to achieve full operation. We have
proposed the structural support locations for the shuttle coaster on the facility in the
attached diagram. Modifications to the other installations in the facility are excluded from
this offer. We will, however, provide advice to your designers for coordination and any
modification that might be necessary for the safe installation and operation of the Shuttle
Coaster. …………. /2
Page 6 of 7
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – AUTUMN 2005
PRACTICE PROBLEM
th
QUESTIONS FOR THE SECOND DAY - 10:00 am to 2:00 pm, Friday, 16 September, 2005
-2-
The technical data of the Shuttle Coaster will be provided to you in our coming meeting
with you in Hong Kong. In the presentation, we will also present an animation of the Shuttle
Coaster. Your building designers will be most welcome to discuss any technical issues with
us.
In addition to our standard conditions of sales, the following is a list of particular conditions
for this work:
1. Payment Terms
(a) 20% deposit upon acceptance of the Sale Proposal – By tele-transfer to our
designated overseas bank account
(b) 75% upon delivery of all components of the Shuttle Coaster – By Letter of Credit
(c) 5% upon the testing and commissioning of the installation to European
requirements – By tele-transfer to our designated overseas bank account
2. Delivery Time
Upon acceptance and signing of our purchase agreement:
(a) design of the works will be completed in 3 months;
(b) manufacture of the Shuttle Coaster will be completed in 3 months upon completion of
the design;
(c) delivery of all components by sea freight in 1 month ex-factory.
3. Price: CIF Hong Kong Port, EUR2,000,000.00 excluding all taxes, customs charges and
all other local charges demandable in the place of destination
We design for entertainment and we build for fun. The Shuttle Coaster will be one of the
largest indoor entertainment fun riding experiences of its kind in South-East Asia when
completed. We look forward to making it into a reality and we trust this will not only be an
added feature to compliment your shopping mall but also a focus of attraction as well.
Yours faithfully,
Fun Riding Entertainment Inc.
Marketing Director
** END OF PAPER **
Page 7 of 7