Practice Problem2009

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THE HONG KONG INSTITUTE OF SURVEYORS

QUANTITY SURVEYING DIVISION

ASSESSMENT OF PROFESSIONAL COMPETENCE

FINAL ASSESSMENT – SEPTEMBER 2009

PRACTICE PROBLEM - DAY 1

Thursday, 17th September, 2009


THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 17 SEPTEMBER 2009

PRACTICE PROBLEM – DAY 1

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%

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

D. The total mark is 100. The overall pass mark is 55. Marks will be assessed to fractions
of one unit.

E. Refer also to INSTRUCTIONS TO CANDIDATES, which 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 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 1
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 17 SEPTEMBER 2009

PRACTICE PROBLEM – DAY 1

Question No. Q1 – Cost Plan – Cost Savings

Your Director attended a Design Meeting on the East College Hostel Development, which is
presently at schematic design stage.

The Geotechnical Engineer advised that the bedrock level of the Site of the Development was
only 2 m below the site formation level as revealed from the recent site investigation data. He
advised that the previously proposed bored pile foundations could be replaced by pad
footings. The following indicative information was given:

• Type F1 pad footing: 6.00 x 3.00 x 2 m deep x 50 No.


• Type F2 pad footing: 6.00 x 10.00 x 2 m deep x 60 No.
• Similar to pile cap construction but with a reinforcement content of approx.
300kg/m3
• No change in the substructure works

During the same meeting, East College advised that, due to the recent financial crisis, its
major sponsor would no longer be able to provide sponsorship to the College. The College
urged the Design Team to explore possible savings to reduce the construction cost.

Reducing the storey height of each floor from 4.00m to 3.50m was suggested and was in
principle accepted by the College.

In addition, the College also suggested reviewing the need to have curtain walls as these
were seen as extravagant design. As an option for the College to consider, the Architect
proposed changing the curtain walls to window walls with openable panes such that the glass
can be cleaned from inside the Building.

Your Director has asked you to work out the cost savings for the three proposed changes and
to draft a memo for his reply to the College. The M&E Engineer will advise any savings in
relation to the M&E services to the College directly. Due to the urgency of this matter, there is
no need to provide any updated Cost Plan but back-up workings should be provided.
[20 marks]

Attachment :
• Cost plan (Page Q1/1 to Q1/4)

Page 2
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 17 SEPTEMBER 2009

PRACTICE PROBLEM – DAY 1

Page 3
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 17 SEPTEMBER 2009

PRACTICE PROBLEM – DAY 1

Page 4
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 17 SEPTEMBER 2009

PRACTICE PROBLEM – DAY 1

Page 5
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 17 SEPTEMBER 2009

PRACTICE PROBLEM – DAY 1

Page 6
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 17 SEPTEMBER 2009

PRACTICE PROBLEM – DAY 1

Question No. Q2 – Procurement Options

Land Development Ltd, a developer, has acquired an existing shopping centre and is
planning to renovate and turn it into a high-end retail, dining and entertainment hub. It is
anticipated that the tenants will still be occupying some of the existing shops and restaurants
during the renovation works. Land Development Ltd. has engaged your company as the
Quantity Surveyor.

Land Development Ltd. envisages that the existing shopping centre will be renovated
internally with state-of-the-art interior design and finishes. All of the existing M&E services and
plumbing and drainage installation will be removed, replaced and upgraded with new lighting,
building management system, audio-visual system and energy conservation facilities
incorporated.

In the meeting yesterday, the representative of Land Development Ltd. emphasized the
urgency of the project and would like to commence the Works as soon as possible while
allowing the existing tenants to continue their business with minimal disruption. Your Director
explained to Land Development Ltd. that the Works, if procured using the traditional lump
sum procurement method, would require a lead time in completing the design. This method
will not meet the Employer’s objective.

The representative from Land Development Ltd. said he has heard about the Management
Contracting method and the Design and Build method which will both allow an early start on
Site and would like your company to advise him on which method is more suitable for the
project. He is also concerned about keeping control of the high quality of the project.

Please draft a letter to the Employer introducing how these two procurement arrangements
operate and stating their respective pros and cons specific to this project and providing a
suitable recommendation.

[15 marks]

Page 7
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 17 SEPTEMBER 2009

PRACTICE PROBLEM – DAY 1

Question No. Q3 – Provisional Quantities

Under what circumstances are quantities of works to be measured as “provisional” at tender


stage? You are to illustrate the types of works by referring to two examples.

[5 marks]

Question No. Q4 – Error Adjustment [10 marks]

Tenders for the East College Hostel Development, based on a lump sum contract with Bills of
Quantities, were received early this week. Arithmetical checks were carried out. An error was
discovered on Page 4/109 of the Bills of Quantities of one of the tenders.

A. Your Senior Associate has asked you to correct the errors in accordance with the rules
given in the Conditions of Tendering. [5 marks]

B. Draft a tender query to the Tenderer concerning the errors and error adjustment.
[5 marks]

Attachment:
• Appendix ‘A’ – Copy of the relevant BQ Page 4/109 and Summary of Tender
• Appendix ‘B’ – Relevant clauses of the Conditions of Tendering.

Page 8
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 17 SEPTEMBER 2009

PRACTICE PROBLEM – DAY 1

Question No. Q4 – Error Adjustment - Appendix A


Bill No. Page Total HK$
Item
SUMMARY OF TENDER
1. Preliminaries 1/187 69,500,000
2. Pay For Site Safety and Environment Management 2/5 1,750,000
3. Foundations and Substructure 3/22 75,000,000
4. Superstructure 4/109 465,000,000

5. External Works and Drainage 5/25 25,600,000

6. Prime Cost Sums


6.1 Allow for a Prime Cost Sum of $ 140.00 million for Building Services 140,000,000
Installations
6.2 - Profit 1% -
6.3 - Attendances on NSC 2,800,000
6.4 Allow for a Prime Cost Sum of $ 52.00 million for Glass Walls, 52,000,000
Windows and Louvres
6.5 - Profit 1% 520,000
6.6 - Attendances on NSC 1,040,000

6.7 Allow for a Prime Cost Sum of $ 2.00 million for water feature at main 2,000,000
entrance
6.8 - Profit 1% 20,000
6.9 - Attendances on NSC 40,000
7. Provisional Sums
7.1 Allow a Provisional Sum of $ 5.00 million for decorative light fittings. 5,000,000
7.2 Allow a Provisional Sum of $ 3.00 million for utility services 3,000,000
connection.

7.3 Allow a Provisional Sum of $ 33.00 million for contract contingencies. 33,000,000

TOTAL CARRIED TO FORM OF TENDER $ 876,270,000

Tenderer: The Max Builder Company Page GS/1

Page 9
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 17 SEPTEMBER 2009

PRACTICE PROBLEM – DAY 1

Question No. Q4 – Error Adjustment – Appendix A (Cont’d)


No. Qty Unit Rate Total HK$

BILL NO. 4 - SUPERSTRUCTURE (Cont'd) √


Brought Forward: 459,374,000
"GOOD" ALUMINIUM LOUVRES SYSTEM all
as described and as Drawing No. D/LS/001and in
accordance with the manufacturer's instructions

54 Fixed louvre L9, 4210 x 1930 mm high. 1 No. 28,000 28,000

55 Fixed louvre L10, 7910 x 1930 mm high. 1 No. 53,000 53,000

56 Fixed louvre L11, 6250 x 1930 mm high. 1 No. 42,000 42,000

CANOPY, designed and constructed as


described and as Drawing No. C1
57 Canopy 50 m2 10,000 5,500,000

ROLLER SHUTTERS as Drawing No. D/MS/006


Hot-dipped galvanised mild steel framed and
welded
58 Roller shutter to suit clear opening 6275 x 3700 10 No.
mm high. (S5L18)

CAT LADDERS as Drawing No. D/MS/003

Hot-dipped galvanised mild steel framed and


welded √
59 Cat ladder 1890 mm girth comprising 38 mm 1 No. 3,000 3,000
diameter tubular stringers 450 mm apart with 4
No. 25 mm rungs and 4 No. 38 mm diameter
tubular supports 150 mm long; with ends of
stringers bent and complete with flange and
anchor bolts including all fixing accessories.

(END OF BILL NO. 4)

Carried to Summary of Tender: 465,000,000

Page 4/109

Page 10
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 17 SEPTEMBER 2009

PRACTICE PROBLEM – DAY 1

Question No.Q4 – Error Adjustment – Appendix ‘B’

Relevant clauses of the Conditions of Tendering


1. Unless otherwise expressly allowed for herein following, the tendered sum will not
be amended for errors found in the examination of tenders.
2. No amendment to the stated descriptions and quantities shall be made after the
tender closing date.
3. If there are errors in the Bills of Quantities (BQ), they shall be corrected as follows:-
a. Errors in the casting of cash columns are to be corrected.
b. The extension in the cash column may be amended to agree with the quantity
and the rate OR (dependent on the judgment of the tender examiner) the rate
may be amended to agree with the quantity and the extension in the cash
column. [NOTE: In no case will the alteration of both rate and extension be
permitted.]
c. Where a Provisional Sum, Contingency Sum or Prime Cost Sum has been
stated in the BQ, and the tenderer has omitted to include it in the tendered
sum, such sum (or sums) shall be added to the tendered sum.
d. Allowance is to be made for profit and attendance on such Prime Cost Sums
omitted as in para. 3(c), at the minimum rate which has been quoted in respect
of other Prime Cost Sums (if any) included in the tendered sum. Allowance for
profit and attendance is not to be made if these items are unpriced elsewhere
in the tender or if no other Prime Cost Sum is included in the BQ.
e. Where a Prime Cost Sum has been included in the tendered sum without
allowance for profit and attendance no such allowance is to be made.
4. After rectification in accordance with para. 3, the difference between:
a. the tendered sum minus all priced Preliminaries items, all items in the BQ for
Site Safety, Environmental Management, all BQ items with pre-determined
rates or Prime Cost rates, the Provisional Sums, the Contingency Sum and
Prime Cost Sums (but not profit and attendance thereon), and
b. the corrected total minus all priced Preliminaries items, all items in the BQ for
Site Safety, Environmental Management, all BQ items with pre-determined
rates or Prime Cost rates, the Provisional sums, the Contingency Sum and
Prime Cost Sums (but not profit and attendance thereon),
shall be calculated as a plus or minus percentage of the sum at para. 4(b).
5. If para. 4(a) is less than 4(b), a minus percentage will be applied to the tendered
rates (or rates pro rata thereto) including those corrected under para. 3(b) when
appropriate for the purpose of valuation of variations and work ordered in respect of
any Provisional Sum or the Contingency Sum. Conversely, if 4(a) is greater than
4(b), a plus percentage will be applied. Note that the rates in the BQ for Site Safety,
Environmental Management, and pre-determined rates and/or Prime Cost rates
would not be subject to the above minus or plus percentages.

Page 11
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 17 SEPTEMBER 2009

PRACTICE PROBLEM – DAY 1

Question No.4 – Error Adjustment – Appendix ‘B’ (Cont’d)

Relevant clauses of the Conditions of Tendering (Cont’d)

6. If the percentage calculated in accordance with para. 5 is less than 0.25%, no


adjustment shall be made.
7. Where any relevant firm or provisional items in the BQ have not been priced, the
costs of the unpriced items shall be deemed to have been included elsewhere in
the BQ. Assessed rates for these un-priced items will be agreed with the tenderer
for valuation of additions to or omissions from the contract in case of firm items
(other than Preliminaries items) and in case of provisional items, for adjustment of
omissions for the difference between the provisional quantities and remeasured
quantities or for adjustment of additions for remeasured quantities in excess of the
provisional quantities.
8. Should examination of a tender reveal errors of such magnitude as in the opinion
of the Employer would involve the Contractor in serious loss then the nature and
amount of such errors will be communicated to the Tenderer and he will be asked
to confirm in writing that he is prepared to abide by his tender.

** End of CoT **

Page 12
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION

ASSESSMENT OF PROFESSIONAL COMPETENCE

FINAL ASSESSMENT – SEPTEMBER 2009

PRACTICE PROBLEM - DAY 2

Friday, 18th September, 2009


THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 18 SEPTEMBER 2009

PRACTICE PROBLEM – DAY 2

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%

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

D. The total mark is 100. The overall pass mark is 55. Marks will be assessed to fractions
of one unit.

E. Refer also to INSTRUCTIONS TO CANDIDATES, which 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 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 1
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 18 SEPTEMBER 2009

PRACTICE PROBLEM – DAY 2

Question No. Q1 – Rectification of Defects

Notes to Candidates:
You are to state the Standard Form of Contract upon which your answer is based.

The foundation works were substantially completed by the previous foundation contractor,
Footing Engineering Limited (“FEL”).

One month after the commencement of the superstructure works, latent defects were
discovered which require rectification works to be carried out by FEL. Having studied the
extent of the rectification works, the Structural Engineer advised the estimated time for
rectifying the defects is about 21 days. He also indicated that the completion of the
rectification works is critical to the superstructure works.

The Architect called and asked what would be the contractual implications to the
superstructure contract if FEL is to return to the Site and carry out the rectification works
concurrently with the superstructure works being carried out by the superstructure contractor.

As the consultant Project QS, your Associate has asked you to note down the contractual
implications to the superstructure contract before attending the ad-hoc meeting scheduled for
tomorrow afternoon. Any relevant contract clauses that you rely upon shall be clearly stated.

[12 marks]

Page 2
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 18 SEPTEMBER 2009

PRACTICE PROBLEM – DAY 2

Question No. Q2 – Extension of Time

Notes to Candidates:
You are to state the Standard Form of Contract upon which your answer is
based.

Your Company, a general contracting company, was awarded a Contract early this year. Your
Company originally programmed to commence and complete the site formation works, being
a critical activity for the whole of the Contract, during the dry season.

Following commencement of the Works, a period of 60 days of delay was encountered due to
late issuance of crucial design information by the Architect, which hindered the progress of
the site formation works. It was not until the wet season that your Company was able to
progress the site formation works.

Unfortunately when the Works were ready to start, the progress of the Works was adversely
affected by several typhoons and heavy rainfalls. According to the record, a cumulative total
of 30 days of adverse weather condition and its subsequent effects was encountered which
falls within the definition of adverse weather condition under the Contract and entitles the
Contractor to an extension of time under the Contract.

Following your submission of the notice for an extension of time and direct loss and/or
expense, the Architect wrote to your Company recognizing that there had been no delay for
which your Company was responsible concurrent with the period of delay at issue and
advised that a total of 90 days of extension of time for completion of the Works would be
granted and that he would request the Consultant QS to ascertain the direct loss and/or
expense in connection thereto. The Architect, however, expressly stated in this letter that no
direct loss and/or expense would be reimbursed to your Company for the delay caused by the
adverse weather condition and the subsequent effect.

A. Your Project Manager has asked you to draft a letter to the Architect in response to the
Architect’s statement as underlined in the preceding paragraph. [7 marks]

B. Your Project Manager has also asked you to gather the relevant information related to
site management staff costs that would form part of the direct loss and/or expense claim
submission. You are to list down the relevant information required to substantiate the
site management staff costs. [5 marks]

Page 3
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 18 SEPTEMBER 2009

PRACTICE PROBLEM – DAY 2

Question No. Q3 – Valuation of Variations

Following receipt of two proposed Architect’s Instructions (AI), your Contract Manager of a
contractor firm has asked you to prepare the valuation of the corresponding variations for
further discussion with the Employer’s QS Consultant. He has asked you to include any
explanatory notes illustrating the underlying principles of your valuation. He has also
confirmed that there will not be any time implication to the Contract for carrying out these
variations. Copies of the Letter of Award (2 pages) and the relevant pages (2 pages)
extracted from the Pricing Document are attached for your reference.

(a) AI No. 105: Floor finishes to the Changing Room, with internal size of 10.10m long x
12.06 m wide
The Architect confirmed to carry out the floor finishes within the Changing Room
together with the corresponding cost for supply and delivery to the Site are as follows:-
• 300 x 300 x 10mm “Durable” homogeneous floor tiles at HK$ 120/m2; and
• 50 x 300 x 10mm “Durable” homogeneous skirting at HK$50/m.
Your Project Manager confirmed yesterday that there would not be any abortive works
due to this variation. [6 marks]

(b) AI No. 106 : Revised light fitting at external walls


The Architect instructed the changing of 10 Nos. Type L1 light fitting as shown on the
Contract Drawings to 8 Nos. Type L2 light fitting. Your Purchasing Manager has
confirmed that he has not placed the order for the Type L1 light fitting. It is noted from
the site progress that the concreting works of the Project have been completed.
[6 marks]

Attachments:
• Letter of Award (2 pages) excluding any attachment
• Extract of the Pricing Document and Preambles (2 pages)

Page 4
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 18 SEPTEMBER 2009

PRACTICE PROBLEM – DAY 2

Question No. Q3 – Valuation of Variations (Cont’d)


Copy of the Letter of Award

22nd September 2008

Good Builder Ltd.


63 Sham Cheng Road, Tai Kok Tsui
Kowloon

Dear Sirs,
Proposed Hostel Development at West Street, North Point
Main Contract - Letter of Award

We on behalf on the Employer are pleased to accept your tender for the above Project in a lump sum with
Quantities Contract in the amount of $ 157,300,000.00.

The following issues shall form part of the Contract:

1.0 Date for Possession and Completion

1.1 The Date for Possession of Site shall be subject to the Architect’s Instruction.

1.2 The Date for Completion is 500 calendar days from and including the Date for Possession.

2.0 Financial and Contractual Matters

2.1 It is agreed that a 3% discount factor shall be applied to the unit rates and prices in Section No. 3
to 5 of the Pricing Document for the purposes of interim payments, re-measurement of provisional
quantities, valuation of all variations and settlement of final account, excluding Prime Cost Rates
items.

2.2 As clarified in the tender query, this Contract shall be on a lump sum with quantities basis except
for the Building Services Installations. Your attention is drawn to Section No. 5 of the Pricing
Document in respect of the Building Services Installations, of which its entirety shall be based on a
lump sum fixed price and based on Drawings and Specification. The quantities given in this Section
shall be treated as an indication only and shall not form part of the Contract.

2.3 You shall effect all insurances before commencement of any work on Site and maintain such
insurance throughout the Contract, all in accordance with the terms and conditions of the
Contract.

3.0 Documents/Correspondence

3.1 The documents/correspondence listed in Appendix ‘I’ shall form part of the Contract.

3.2 You shall submit the master programme within 14 days from the Date for Possession of the Site.

Page 5
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 18 SEPTEMBER 2009

PRACTICE PROBLEM – DAY 2

Question No. Q3 – Valuation of Variations (Cont’d)


Copy of the Letter of Award (Cont’d)

22nd September 2008


Proposed Hostel Development at West Street, North Point
Copy of the Letter of Award (Cont’d)

Should there be any ambiguity or inconsistency between the terms and conditions as stated in this Letter of
Award and those in the tender documents, the terms and conditions as contained in the correspondence and
documents of a later date shall take precedence, and the terms and conditions in this Letter of Award shall
supersede all those in the tender documents. Until a formal agreement is executed, your tender together
with the agreement stated in this Letter of Award shall constitute a binding Contract between the Employer
and yourselves.

The Consultant Quantity Surveyor will prepare the contract documents and we will advise you when the
documents are ready for execution.

Please sign, stamp and return the duplicate copy of this Letter of Award to signify your agreement to the
foregoing within 3 working days from the date of this Letter of Award.

Yours faithfully Agreed and accepted


for and on behalf of for and on behalf of
ProjectArch Limited Good Builder Ltd.

SIGNED

John Wu Authorized Signature


Director
Company Chop:

Date:

Encl. (attachments are excluded from this Q3)

c.c. Employer (w/e)


Consultant QS (w/e)

Page 6
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 18 SEPTEMBER 2009

PRACTICE PROBLEM – DAY 2

Question No. Q3 – Valuation of Variations (Cont’d)


Pricing Document Pages

Ref. Description Quantity Unit Rate Total (HK$)

SECTION NO. 4 (Cont’d)

INTERNAL FLOOR FINISHES TO CHANGING ROOM


(ALL PROVISIONAL)

Note : Waterproofing for Changing Room has been


measured in this Bill.

"Superior Seal" cement base bituminous waterproofing or


approved equivalent applied in accordance with the
manufacturer's instruction

A Concrete slab 100 m2 100 10,000.00

B 150mm High skirting 40 m 50 2,000.00

C Water test Item 5,000.00

Waterproof cement and sand (1:3) screeds

D 30mm screed on slab to receive homogenous tiling 100 m2 80 8,000.00


E 20mm screed to receive 50mm high homogenous tiling 40 m 50 2,000.00
skirting

"Durable" non-slip homogeneous tiling bedded in cement


mortar (1:3 and 10mm maximum thick) on screed; pointing
and jointing with coloured cement grout

F 300 x 300 x 10mm Flooring (Prime Cost $200/m2; supplied 100 m2 280 28,000.00
and delivered to site)

G 50 x 300 x 10mm Skirting (Prime Cost $50/m; supplied and 40 m 100 4,000.00
delivered to site)

(END OF ALL PROVISIONAL)

To Collection $ 59,000.00

- Page 4.7 / 10 -

Page 7
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 18 SEPTEMBER 2009

PRACTICE PROBLEM – DAY 2

Question No. Q3 – Valuation of Variations (Cont’d)


Pricing Document Pages (Cont’d)

Total
Ref. Description Quantity Unit Rate
(HK$)

SECTION NO. 5 (Cont’d)

ELECTRICAL INSTALLATION (Cont’d)

External Wall-mounted Light Fittings


A Type L1 6 No. 3000 18,000.00
B Type L2 30 No. 2000 60,000.00
C Type L3 2 No. 4500 9,000.00

To Collection $ 87,000.00

- Page 5.1/3 -

Extract from the Preliminaries

7.05 Provisional Quantities


The quantities described as PROVISIONAL in the Pricing Document are subject to
remeasurement upon completion of the Works. The Contract Sum shall be adjusted
accordingly.
“Items” within sections of provisional quantities are not provisional and the sums
inserted against the various “Items” will be included in the re-measurement of the
provisional sections unless the work described in an Item is not required, in which case
the relevant sum will be omitted from the re-measurement.

9.01 Adjustment of Prime Cost (P.C.) Rates


Prime Cost (P.C.) rates for materials are for the supply of materials to site at street
level and the Contractor shall allow any additional costs for taking delivery from the
supplier at street level, unloading or assisting in unloading, storing, distributing to
required positions, returning packing cases etc. to the supplier (including paying
transportation charges and obtaining credits for the packing cases etc), all waste,
fixing, all ancillary materials required for fixing such as mortar for bedding and jointing
and all other similar items of a like nature, for any finance charges and for profit.
The Contract rate will be adjusted by the nett difference between the prime cost (P.C.)
rate and the actual price and will be applied to the nett quantity of the items fixed,
installed or applied in position and measured in accordance with the SMM and the
Preambles.

Page 8
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 18 SEPTEMBER 2009

PRACTICE PROBLEM – DAY 2

Question No. Q4 – Measuring from As-built Drawings and SMM

Notes to Candidates:
Whenever the term “SMM” is used, it shall refer to the Hong Kong Standard
Method of Measurement for Building Works, Fourth Edition, 2005.

Copies of the relevant pages of the SMM are available upon request. Candidates
are to refer to Pages 125, 126, 153, 154 and 156 to 159 only.

You are the Consultant Quantity Surveyor for this Project. In the final account, the Nominated
Fire Services Sub-Contractor has submitted a complete re-measurement of the fire services
works based on the prepared as-built drawings that have not been submitted to the Architect
for endorsement. The total net additional cost is significantly higher than the estimated final
sum that your Company had previously reported to the Employer. On analysis of the
submission, it is found that the Nominated Fire Services Sub-Contractor has included a lot of
star rates items like:

(a) Bends and tees for the fire sprinkler pipe works;
(b) The anti-vibration mounting for the fire services pumps; and
(c) All metal brackets for the pipe works have been enumerated;

The Employer has recalled that the Nominated Fire Services Sub-Contract was a lump sum
sub-contract (without quantities) based on drawings and specification. The schedule of rates
in the Sub-Contract was prepared in accordance with the SMM and the preambles (both
extracted and attached herein). The Employer has also recalled that there were not too many
design changes instructed during the contract.

Your Senior Associate has asked you to clarify the issues with the Employer’s Project
Manager by drafting a fax and making reference to the SMM and the Preambles for this Sub-
Contract. You may make and list down all reasonable and relevant assumptions in your
answer.
[14 marks]

Attachments:
• Extract of Preambles for Fire Services Installation

Page 9
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 18 SEPTEMBER 2009

PRACTICE PROBLEM – DAY 2

Question No. Q4 – Measuring from As-built Drawings and SMM (Cont’d)


Extract of Preambles for Fire Services Installation
Section A – Generally
1. Except where otherwise measured, the quantities given in the Schedule of Rates (SOR)
have been measured in accordance with the Hong Kong Standard Method of
Measurement for Building Works (Fourth Edition) issued in 2005, published by the Hong
Kong Institute of Surveyors) (hereinafter referred to as "the SMM"). Specific departures
from the requirements of the SMM are as stated in these Preambles.
2. The items in the SOR should be read in conjunction with the Specification clauses and the
relevant Preamble clauses.
3. All materials and workmanship shall, unless otherwise described, be in accordance with
the relevant Drawings and Specification. The rates for items in the SOR shall include for
the work being executed in accordance with the Drawings and Specification requirements.
4. All works shall be measured net from the drawings in conjunction with the Specification
requirements.
5. The quantities in the SOR shall be measured from the Drawings listed in the Specification
which indicate the design intent, general routing and position of the Fire Services
Installation. The quantities of the Fire Services Installation are measured flat from the
Drawings and apart from services risers, the measurement does not take into account any
additional service runs or fittings required to route locally around structural members,
changes in levels to suit the building structure or architectural details or other services or
obstacles and these are required to be allowed for by the Sub-Contractor in his rates and
prices.
6. For valuation of variations and provisional items, the quantities of the Fire Services works
shall be measured net from the Drawings issued by the Architect from time to time in
accordance with the rules as laid out in clause 5 above.
7. No adjustment will be made to such measured quantities for any actual difference in
quantity from that shown on the Drawings arising from the Sub-Contractor’s co-ordination
of the works and the measurement errors in the SOR.
8. No variation whatsoever will be ordered by the Architect in accordance with the
Conditions of Sub-Contract as a result of the services runs and components of the Fire
Services Installation being required to be rerouted or repositioned from those positions
and routes generally indicated on the Drawings unless such revisions in the Architect’s
opinion deviate from the design intent of the Drawings. The unit rates and prices for the
Fire Services Installation shall be deemed to have allowed for this and be in accordance
with the rules as laid out in clause 5 above.

Page 10
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 18 SEPTEMBER 2009

PRACTICE PROBLEM – DAY 2

Question No. Q4 – Measuring from As-built Drawings and SMM (Cont’d)


Extract of Preambles for Fire Services Installation (Cont’d)
Location of work
9. Notwithstanding clause XVII (a) 1 M.2 of the SMM, work is measured irrespective of
location and fixing background. Provision of brackets, hangers as required, together
with all necessary bolts, nuts, screws, nails, plugs, fastenings and related holes in
components and accessories shall be deemed to be included.
Pipework and ancillaries
10. Rates for tees shall be deemed to include all equal and unequal tees, and in the case of
unequal tees and reducing sockets they shall be measured as extra over the largest
diameter pipe connections.

11. Rates for reducers to obtain connections of the correct type and angle shall be deemed
to include elbows, tees, junctions, crosses and the like.

12. Notwithstanding clause XVII (d) 2.1 of the SMM, rates for pipework shall include for any
alternative method of jointing and fixing as described in the Specification.

13. Notwithstanding clause XVII (d) 12, 13, 14, 15 of the SMM, rates for pipework shall
include for screwed sockets, tappings, bosses and welding-necks welded to pipes or
flanges.

Page 11

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