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 Spon’s
Civil Engineering and
Highway Works
Price Book

2022
 Spon’s
Civil Engineering and
Highway Works
Price Book

Edited by

2022
Thirty-sixth edition
First edition 1984
Thirty-sixth edition published 2022
by CRC Press
2 Park Square, Milton Park, Abingdon, Oxon, OX14 4RN
and by CRC Press
Taylor & Francis, Broken Sound Parkway, NW, Suite 300, Boca Raton, FL 33487
CRC Press is an imprint of the Taylor & Francis Group, an informa business
© 2022 Taylor & Francis
The right of AECOM Ltd to be identified as the Author of this Work has been asserted by them in
accordance with the Copyright, Designs and Patents Act 1988.
All rights reserved. No part of this book may be reprinted or reproduced or utilized in any form or
by any electronic, mechanical, or other means, now known or hereafter invented, including
photocopying and recording, or in any information storage or retrieval system, without permission
in writing from the publishers.
Trademark notice: Product or corporate names may be trademarks or registered trademarks, and
are used only for identification and explanation without intent to infringe.
The publisher makes no representation, express or implied, with regard to the accuracy of the
information contained in this book and cannot accept legal responsibility or liability for any errors
or omissions that may be made.
British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library

ISBN: 978-1-03-205220-5
Ebook: 978-1-00-319662-4
DOI: 10.1201/9781003196624
ISSN: 0957-171X

Typeset in Arial by Taylor & Francis Books

 Contents

Preface to the Thirty-Sixth Edition ix

Acknowledgements xiii

PART 1: GENERAL
Brexit and the UK construction sector 3
Purpose and content of the book 5
Outline of the tendering and estimating process 9
Research & Development (R&D) tax relief 17
Capital allowances 23
Value added tax 31
The aggregates levy 39
Land remediation 45
The landfill tax 55

PART 2: ONCOSTS AND PROFIT

Risk/opportunity 61
Head office overheads 61
Profit 61
Finance costs – assessment of contract investment 61
Value added tax 63
Tender summary 64

PART 3: COST AND TENDER PRICE INDICES

Introduction 67
A constructed cost index 67
The road construction cost index 68
Regional variations 70

PART 4: RESOURCES
Basis of this section 73
Labour costs 75
Plant costs 81

PART 5: APPROXIMATE ESTIMATING

Preliminaries and general items 89 2.4 Stairs and ramps 125
Building prices per square metre 105 2.5 External walls 127
Approximate estimating rates – General 2.6 Windows and external doors 132
building works 113 2.7 Internal walls and partitions 135
1 Substructure 113 2.8 Internal doors 138
1.1 Substructure 113 3 Internal finishes 139
2 Superstructures 3.1 Wall finishes 139
2.1 Frame 118 3.2 Floor finishes 140
2.2 Upper floors 120 3.3 Ceiling finishes 142
2.3 Roof 121 4 Fittings, furnishings and equipment 143
vi Contents

4.1 Fittings, furnishings and 8.3 Soft landscaping, planting and

equipment 143 irrigation systems 152
5 Services 145 8.4 Fencings, railings and walls 153
5.1 Sanitary installations 145 8.5 External fixtures 154
5.4 Water installations 146 8.6 External drainage 155
5.6 Space heating and air conditioning 146 8.7 External services 158
5.7 Ventilating systems 146 8.8 Ancillary buildings and structures 159
5.8 Electrical installations 147 9 Main contractor’s preliminaries 160
5.9 Fuel installations 148 9.2 Main contractor’s preliminaries 160
5.10 Lift and conveyor installations 148 Approximate estimating rates – Ancillary
5.11 Fire and lightning protection 149 building works 162
5.12 Communication and security Water and treatment facilities 162
Installations 149 Earth retention and stabilization 162
5.13 Special installations 150 Bridgeworks 163
5.14 Builder’s work in connection with Tunnelling field costs 164
services 150 Highway works 165
8 External works 150 Underpasses 167
8.2 Roads, paths, pavings and surfaces 150 Access scaffolding 168
Temporary works 168

PART 6: UNIT COSTS – CIVIL ENGINEERING WORKS

Introductory notes 171 Class L: Pipework – supports and protection,
Guidance notes 173 ancillaries to laying and excavation 270
Class A: General items 175 Class M: Structural metalwork 275
Class B: Ground investigation 179 Class N: Miscellaneous metalwork 277
Class C: Geotechnical and other specialist Class O: Timber 283
processes 183 Class P: Piles 290
Class D: Demolition and site clearance 190 Class Q: Piling ancillaries 303
Class E: Earthworks 193 Class R: Roads and pavings 310
Class F: In situ concrete 212 Class S: Rail track 326
Class G: Concrete ancillaries 218 Class T: Tunnels 334
Class H: Precast concrete 231 Class U: Brickwork, blockwork and masonry 341
Class I: Pipework - pipes 233 Class V: Painting 356
Class J: Pipework – fittings and valves 255 Class W: Waterproofing 364
Class K: Pipework – manholes and pipework Class X: Miscellaneous work 370
ancillaries 256 Class Y: Sewer and water main renovation
and ancillary works 375

PART 7: UNIT COSTS – HIGHWAY WORKS

Introductory notes 387 Series 1400: Electrical work for road lighting
Guidance notes 389 and traffic signs 474
Series 100: Preliminaries 393 Series 1500: Motorway communications 477
Series 200: Site clearance 395 Series 1600: Piling and embedded retaining
Series 300: Fencing 398 walls 479
Series 400: Road restraint systems (vehicle Series 1700: Structural concrete 496
and pedestrian) 402 Series 1800: Steelwork for structures 503
Series 500: Drainage and service ducts 409 Series 1900: Protection of steelwork against
Series 600: Earthworks 432 corrosion 504
Series 700: Pavements 450 Series 2000: Waterproofing for structures 506
Series 1100: Kerbs, footways & paved areas 457 Series 2100: Bridge bearings 508
Series 1200: Traffic signs and road markings 465 Series 2300: Bridge expansion joints and
Series 1300: Road lighting columns and sealing of gaps 510
brackets, CCTV masts and cantilever masts 471
 Contents vii

Series 2400: Brickwork, blockwork and Series 2700: Accommodation works, works for
stonework 511 statutory undertakers 519
Series 2500: Special structures 518 Series 3000: Landscape and ecology 520
Series 5000: Maintenance painting of steelwork 531

PART 8: DAYWORK
Introduction 535
Schedules of dayworks carried out incidental to contract work 535
Application of dayworks 537

PART 9: PROFESSIONAL FEES

Consulting engineers' conditions of appointment 545
Quantity surveyors' conditions of appointment 549

PART 10: OUTPUTS

Disposal of excavated materials 553
Breaking out pavements, brickwork, concrete and masonry by hand and pneumatic breaker 554
Loading loose materials and items by hand 555
Placing ready mixed concrete in the works 556
Fixing bar reinforcement 557
Erecting formwork to beams and walls 558
Erecting formwork to slabs 558
Multipliers for formwork 558
Laying and jointing flexible-jointed clayware pipes 559
Precast concrete manholes in sections 560
Tunnelling, diaphragm walls, major earthworks & fencing 561

PART 11: USEFUL ADDRESSES FOR FURTHER INFORMATION 563

PART 12: TABLES AND MEMORANDA 573

INDEX 667
 SPON’S 2022 PRICEBOOKS from AECOM
Spon’s Architects’ and
Builders’ Price Book 2022
Editor: AECOM
New items this year include:
- a London fringe office cost model
- a Higher Education Refurbishment cost
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- Pecafil® permanent formwork
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Hbk & VitalSource® ebook 868pp approx.
978-0-367-51402-0 £175
VitalSource® ebook
978-1-003-05367-5 £175
(inc. sales tax where appropriate)
Spon’s External Works and
Landscape Price Book 2022
Editor: AECOM in association with LandPro Ltd
Landscape Surveyors
Now with a revised and updated street
furniture section.
Plus several new items:
- Kinley systems: Metal edgings and
systems for landscapes and podiums
- New cost evaluations of water features
- Stainless steel landscape channel
drainage
Hbk & VitalSource® ebook 680pp
approx. 978-0-367-51404-4 £165
VitalSource® ebook
978-1-003-05369-9 £165
(inc. sales tax where appropriate)
To order:
Tel: 01235 400524
Email: book.orders@tandf.co.uk
A complete listing of all our books is on www.routledge.com
Information Classification: General
Spon’s Civil Engineering and
Highway Works Price Book
2022
Editor: AECOM
This year gives more items on shafts,
tunnelling, drainage and water proofing –
covering some brand new materials and
methods. Notes have been added to
tunnelling, viaducts, D-walls and piling
under the output section. The book
partially reflects costs and new ways of
working resulting from the Covid-19
pandemic.
Hbk & VitalSource® ebook 704 pp approx.
978-0-367-51403-7 £195
VitalSource® ebook
978-1-003-05368-2 £195
(inc. sales tax where appropriate)
Spon’s Mechanical and
Electrical Services Price Book
2022
Editor: AECOM
An overhaul of the uninterruptible power
supply section, and revised costs for air
source heat pumps.
Plus new items, including:
HDPE pipe for above ground drainage
systems; fire protection mist systems; and
electric vehicle chargers
Hbk & VitalSource® ebook 864pp approx.
978-0-367-51405-1 £175
VitalSource® ebook
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Receive our VitalSource® ebook free when
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 Preface to the Thirty-Sixth Edition

At the time of writing the construction industry continues to experience retarded growth in both turnover and
margin because of Brexit and COVID 19 pandemic impact, however only part of these impact has been included
in this book. Raw materials, supplier and manufactured goods have in recent months shown moderate to high
price increases against the published list price, much of this increase is due to constraints to comply with COVID
social distance rules. There has been reasonable workload in the infrastructure following the construction of HS2
Project, Crossrail Project, modernisations of London Underground and Network rail lines, Thames Tideway
Tunnel, and other highway projects like Lower Thames Crossing. The start of the site delivery of HS2 project has
driven some skilled labour demands in the infrastructure projects somehow to the limits. This is due to the scale of
labour, plant and material requirements. The resultant from increased spending announcements on HS2 and
other infrastructure projects will continue to increase growth expectation between 2021 and into 2022 even though
this has been dwindled by the impact of Covid 19. Levels of expenditure in infrastructure are expected to rise over
the next two to three years to sustain the economy and that may impact on the prices of labour, material, and
plant. On the other side we have seen decrease in labour resource due to Brexit and this scarcity of labour
resource may result to increase in labour costs.

Oil prices fell sharply in 2020 and starting to rise beginning of 2021 and is expecting to rise as some COVID
restrictions are being lifted globally and normal daily operations pickup. USA is likely to become a net exporter as
a result of a significant level of shale oil and gas being found and this is having a profound effect on world prices.
Steel demand has increased with producers managing capacity within Europe, and therefore steel prices have
gradually increased. Growth forecasts in the Eurozone and currency fluctuations are keeping imported goods
relatively stable. Cement and aggregates are beginning to creep up as are bituminous products which form a
significant part of infrastructure material costs. Labour increased slightly in 2021 and is expected to continue with
slow trend due to impact of Brexit and COVID. However, skills labour will continue to be scarce and will push
overall costs higher. Failures through insolvency are reducing competition with bidders being more selective over
which projects they commit resources to, seeking to ensure higher success rates and increased profitability.

Under these market conditions the prices in the various parts of this publication can only be taken as a guide to
actual costs. Any sustained upturn may give rise to marked increases in selling prices as manufacturers and
specialists seek to recover margins lost in the downturn.

London, the North and the South East all remain active and construction activities should continue in the next few
years across the UK with mainly HS2 projects plus other projects like Lower Thames Crossing, road schemes,
Mersey Crossing and Thames Tideway Tunnelling leading to increased expenditure. Network Rail continues its
ongoing renewals programme estimated at £51bn commitment for the next five year. This is expected to generate
significant activity throughout 2021. The impact of HS2 is expected to affect performance levels as its now on-site
delivery stage. The slow down in aviation will also have a negative impact on the infrastructure capital investment
expenditure.

For the 2022 edition, we have undertaken a general update of all prices up to May/June 2021 in consultation with
leading manufacturers, suppliers and specialist contractors and included revisions as necessary. Our efforts have
been directed at reviewing, revising and consolidating the scope, range and detail of information to help the user
to compare or adjust any unit costs with reference to allocated resources or outputs.

The rates, prices and outputs included in the Resources and Unit Cost calculations, including allowances for
wastage, normal productivity and efficiency, are based on medium sized Civil Engineering schemes of about £50–
£300 million in value, with no acute access or ground condition problems. However, they are equally applicable,
with little or no adjustment, to a wide ranges of construction projects from £2–£250 million. Where suitable, tables
of multipliers have been given to enable easy adjustment to outputs or costs for varying work conditions.
x Preface to the Thirty-Sixth Edition

As with all attempts to provide price guidance on a general basis, this must be loaded with caveats. In applying
the rates to any specific project, the user must take into account the general nature of the project, i.e. matters
such as scale, site difficulties, locale, tender climate etc. This book aims at providing as much information as
possible about the nature of the rate so as to assist the user to adapt it if necessary. With safety a foremost
objective on every project, an added element of cost is incurred as represented by the preliminaries percentage
adjustments. Each project experiences differing levels of risk and as such the adjustments should be made rela-
tive to each situation.

This edition continues to provide the reader with cost guidance at a number of levels, varying from the more
general functional costs shown in Part 5, through the detailed unit costs in Parts 6 and 7 which relate respectively
to the CESMM4 and the Highways Method of Measurement bills of quantities formats, down to the detailed
resource costing given in Part 4 supplemented by the further advice on output factors in Part 10.

The outputs used in this work have been compiled in detail from the editors' wide-ranging experience and are
based almost exclusively on studies and records derived from a number of recent Civil Engineering schemes. This
information is constantly being re-appraised to ensure consistency with current practice. A number of prices and
outputs are based upon detailed specialist advice and acknowledgements to the main contributors are included
within the book.

The current market is showing signs of volatility in both labour and materials in the forthcoming period, however,
to monitor this and maintain accuracy levels readers should use the free price book update service, which advises
of any significant changes to the published information over the period covered by this edition. The Update is
posted free every three months on the publishers’ website, until the publication of the next annual Price Book, to
those readers who have registered with the publisher. Details of how to register can be found at the end of the
book.

Whilst all efforts are made to ensure the accuracy of the data and information used in the book, neither the editors
nor the publishers can in any way accept liability for loss of any kind resulting from the use made by any person of
such information.

Coronavirus Pandemic

At the time the book data was being collated the Coronavirus pandemic is resulting in unique and extra-
ordinary impacts on many industry sectors. Expansive and immediate disruption to populations, econo-
mies and businesses was quickly introduced by the public health crisis, as governments across the world
introduced measures to contain the Coronavirus outbreak. These mitigation measures directly address
the public health risks and implications from Coronavirus and COVID−19, but an economic demand and
supply shock is also a consequence of the actions.

With all this in mind we believe that UK construction supply chain firms will face an array of risks during
2021 as the fallout from the crisis continues to evolve. Due to the evolving and still uncertain outlook, for
the purposes of forming this baseline scenario on market drivers, the following assumptions have been
used:

＋ The full UK/RoI lockdown ended in May/June but the social distancing measures are still in place.
＋ Construction sites begin reopening in the 2021 Q2, steadily increasing in number over 2021 Q3.
＋ Coronavirus infection transfer risk is mitigated by ongoing social distancing measures in force across the
population. However, the new variant forced a further full lockdown implementation towards the end of
2020 to second half of 2021. It should be acknowledged that further lockdowns could take place if the
transfer rate of infection begins to increase once again in the second half of 2021.
＋ Social distancing rules are implemented on construction sites where possible, which have negative impacts
on site productivity.
＋ Construction output across 2021 Q1/Q2 was severely impacted because of site lockdowns, furloughs and
decisions made by businesses to pause their construction activity. In the medium-term (6–12 months)
 Preface to the Thirty-Sixth Edition xi

output improves from restarted construction activity but is still materially impacted though to a lesser extent
than 2021 Q1.
＋ Underlying construction demand into the medium-term remains broadly in place, although some projects
are deferred or held because of funding challenges or client-side decisions.
＋ Risks and impacts from the potential for the coronavirus public health crisis developing into a financial
crisis.

AECOM Ltd
Aldgate Tower
2 Leman Street
London
E1 8FA
 ESSENTIAL READING FROM TAYLOR AND FRANCIS

Construction 4.0:
An Innovation Platform for
the Built Environment

Edited By Anil Sawhney, Michael Riley and

Javier Irizarry

Modelled on the concept of Industry 4.0, the idea of Construction 4.0 is based on a confluence
of trends and technologies that promise to reshape the way built environment assets are
designed, constructed, and operated.
With the pervasive use of Building Information Modelling (BIM), lean principles, digital
technologies, and offsite construction, the industry is at the cusp of this transformation. The
critical challenge is the fragmented state of teaching, research, and professional practice in
the built environment sector. This handbook aims to overcome this fragmentation by
describing Construction 4.0 in the context of its current state, emerging trends and
technologies, and the people and process issues that surround the coming transformation.
Construction 4.0 is a framework that is a confluence and convergence of the following broad
themes discussed in this book:
• Industrial production (prefabrication, 3D printing and assembly, offsite manufacture)
• Cyber-physical systems (actuators, sensors, IoT, robots, cobots, drones)
• Digital and computing technologies (BIM, video and laser scanning, AI and cloud
computing, big data and data analytics, reality capture, Blockchain, simulation, augmented
reality, data standards and interoperability, and vertical and horizontal integration)
The aim of this handbook is to describe the Construction 4.0 framework and consequently
highlight the resultant processes and practices that allow us to plan, design, deliver, and
operate built environment assets more effectively and efficiently by focusing on the physical-
to-digital transformation and then digital-to-physical transformation. This book is essential
reading for all built environment and AEC stakeholders who need to get to grips with the
technological transformations currently shaping their industry, research, and teaching.

February 2020: 526 pp

ISBN: 9780367027308

To Order
Tel:+44 (0) 1235 400524
Email: tandf@bookpoint.co.uk

For a complete listing of all our titles visit:

www.tandf.co.uk
 Acknowledgements

The Editors wish to record their appreciation of the assistance given by many individuals and organizations in the
compilation of this edition.
Materials suppliers and subcontractors who have contributed this year include:

Abacus Lighting Ltd Andrews Sykes

Lighting and Street Furniture Dewatering
Tel: 01623 511111 Tel: 0800 211 611
Fax: 01623 552133 Website: http: //www.andrews-sykes.com/
Website: www.abacuslighting.com
Email: sales@abacuslighting.com
Arcelor Mittal Commercial UK Ltd
Steel Sheet Piling
ACO Technologies Plc Tel: 0121 713 6674
Drainage Systems Mob: 07772 324 595
Tel: 01462 816666 Website: http: //sheetpiling.arcelormittal.com/
Fax: 01462 815895 Email: david.baxter@arcelormittal.com
Website: www.aco.co.uk
Email: technologies@aco.co.uk
Asset International Structures
Steel Culverts
Aggregate Industries Tel: 01633 637505
Kerbs, Edgings and Pavings Website: www.assetint.co.uk
Tel: 01530 510066 Email: info@assetint.co.uk
Website: www.aggregate.com
AWBS LTD
Ainscough Crane Hire Limited Walling
Crane Hire Tel: 01865 326500
Tel: 0800 272 637 Website: http: //www.awbsltd.com/
Website: http: //www.ainscough.co.uk/ Email: office@awbsltd.com
Email: info@ainscough.co.uk
Bachy Soletanche Ltd
Alumet Systems (UK) Ltd Diaphragm Walling
Fixings Tel: 01704 895686
Tel: 01926 811 677 Fax: 01704 895581
Website: http: //www.alumet.co.uk/ Website: www.bacsol.co.uk
Email: enquiries@alumet.co.uk
Balfour Beatty Engineering Services
Amec Foster Wheeler Plc (Wood Plc) Subcontractor Piles
Tel: 020 7429 7500 Tel: 0207 216 6800
Fax: 020 7429 7550 Website: http: //www.balfourbeatty.com/
Website: http: //www.woodplc.com/
Barhale Plc
Anaco Trading Ltd Pipe Jacking
Reinforcing Bar Tel: 01922 707 700
Tel: 01832 272109 Fax: 01922 721 808
Fax: 01832 275759 Website: http: //www.barhale.co.uk/
Website: www.anacotrading.com Email info@barhale.co.uk
xiv Acknowledgements

Bison Manufacturing Limited Cementation Foundations Skanska Ltd

Flooring Piling
Tel: 01283 817500 Tel: 01923 776666
Fax: 01283 220563 Website: http: //www.skanska.co.uk/services/
Website: http: //www.bison.co.uk/ cementation-piling-and-foundations/
Email: concrete@bison.co.uk

Cogne UK LTD
BRC Reinforcement
Steel Works
Masonry Reinforcement and Accessories
Tel: 0114 221 2020
Tel: 02074 741 800
Fax: 0114221 3030
Fax: 02038 762 909
Website: http: //www.cogne.co.uk/
Website: http: //www.brc.ltd.uk
Email: sales@cogne.co.uk
Email: london.sales@brc.ltd.uk

Bromborough Paints CPM Group

Paint Drainage Materials
Tel: 0151 334 1237 Tel: 01179 814 500
Fax: 0151 334 0086 Fax: 01179 814 511
Website: http: //www.bromboroughpaints.co.uk/ Website: www.cpm-group.com
Email: sales@bromboroughpaints.co.uk Email: sales@cpm-group.com

Broxap Ltd Craig West Turf Ltd

Street Furniture Landscaping
Tel: 0844 800 4085 / 01782 564411 Tel: 01179 982 2255
Fax: 01782 565 357/562 546 Website: http: //cwtls.co.uk/
Website: http: //www.broxap.com/ Email: chris@cwtls.co.uk / adam@cwtls.co.uk
Email: enquiries@broxap.com

Buildbase Civils & Lintels (Grafton Group Plc) Craigton Industries

Drainage Materials Precast Concrete Manholes
Tel: 01322 446200 Tel: 0141 956 6585 or 2311
Website: https: //www.civilsandlintels.co.uk/ Fax: 0141 956 3757
Email: Erith@civilsandlintels.co.uk Website: http: //craigtonindustries.co.uk/
Email: sales@craigtonindustries.co.uk

Capital Demolition
Demolition and Clearance Darlaston Builders Merchants
Tel: 01932 355 737 Walling
Fax: 01932 340 244 Tel: 0121 526 2449
Website: www.capitaldemolition.co.uk Website: http: //www.dbmdiy.com/
Email: d.read@capitaldemolition.freeserve.co.uk
Don & Low Ltd
CCL Stressing Systems Geotextiles
Bridge Bearings Tel: 01307 452 200
Tel: 0113 270 1221 Fax: 01307 452 300
Website: http: //www.cclint.com/ Website: www.donlow.co.uk
Email: enquiries@cclint.com
Dorsey Construction Materials Ltd
Celsa Steel (UK) Ltd Water Stops
Bar Reinforcement Tel: 0118 975 3377
Tel: 0292 035 1800 Fax: 0118 975 3393
Fax: 0292 035 1801 Website: http: //www.dorseyconstructionmaterials.co.
Website: www.celsauk.com uk/home/
Email: salesuk@celsauk.com Email: sales@dorseys.co.uk
 Acknowledgements xv

Dulux Freyssinet Ltd

Paint Reinforced Earth Systems
Tel: 0333 222 7070 Tel: 01952 201901
Website: https: //www.duluxtradepaintexpert.co.uk/ Fax: 01952 201753
Email: duluxtrade.advice@akzonobel.com Website: www.freyssinet.co.uk
Email: info@freyssinet.co.uk
Ecochoice Ltd
Timber Piles
Tel: 0345 638 1340 GCP Applied Technologies
Fax: 0845 642 1340 Waterproofing/Expansion Joints
Website: www.ecochoice.co.uk Tel: 01480 478421
Email: info@ ecochoice.co.uk Fax: 01753 490000
Website: https: //gcpat.uk/en-gb
Email: info-gb@gcpat.com
EPCO PLASTICS
Drains
Tel: 0113 249 1155
Geolabs
Website: https: //www.epco-plastics.com/
Ground Investigation
Email: sales@epco-plastics.com
Tel: 01923 892 190
Fax: 01923 892 191
Euromix Concrete Website: http: //geolabs.co.uk/
Ready Mix Concrete Email: admin@geolabs.co.uk
Tel: 01245 464545
Website: http: //www.euromixconcrete.com/
George Lines Merchants
Everyvalve Ltd Paving
Tel: 0044(0)1707642018 Tel: 01753 685354
Fax: 0044(0)1707646340 Fax: 01753 686031
Website: http: //www.everyvalve.com/ Website: http: //www.georgelines.co.uk/
Email: Sales@everyvalve.com Email: sales@georgelines.co.uk

Expamet
General Building Materials George Walker Ltd
Tel: 0845 5172761 Timber
Website: www.expamet.co.uk Tel: 0116 260 8330
Email: info@expament.co.uk Fax: 0116 269 7450
Website: http: //www.george-walker.co.uk/
Email: sales@george-walker.co.uk
Fischer Fixings (UK) Ltd
Fixings
Tel: 01491 827900
Greenham Trading Ltd
Website: www.fischer.co.uk
TW7 4EX
Email: sales@fischer.co.uk
Contractors Site Equipment
Tel: 0845 300 6672
Forterra Building Products Ltd Fax: 0208 568 8423
Bricks Website: www.greenham.com
Tel: 01604 707600 Email: sales@greenham.com
Website: http: //forterra.co.uk/

Fosroc Ltd Griffiths Signs

Waterproofing and Expansion Joints Signage
Tel: 01827 262222 Tel: 01633 895566
Fax: 01827 262444 Fax: 01633 895577
Website: www.fosrocuk.com Website: http: //www.griffiths-signs.co.uk/
Email: enquiryuk@fosroc.com Email: sales@griffiths-signs.co.uk
xvi Acknowledgements

Hanson UK K B Rebar Ltd

Cement Steel Reinforcement
Tel: 01628 774100 Tel: 0161 790 8635
Website: http: //www.hanson.co.uk/en Fax: 0161 799 7083
Email: enquiries@hanson.com Website: www.kbrebar.co.uk
Email: sales@kbrebar.co.uk
Hill & Smith Ltd
Safety Barrier Systems Keyline Builders Merchants Ltd
Tel: 01902 499400 Waterproofing
Website: https: //www.hill-smith.co.uk/ Tel: 0141 777 8979
Email: sales@hill-smith.co.uk Website: http: //www.keyline.co.uk/
Email: customerservice@keyline.co.uk
HSS Hire
Access Staging and Towers
L&R Roadlines Ltd
Tel: 0161 7494090
Fax: 0161 749 4401 Road Markings
Website: http: //www.hss.com/ Tel: +44 (0)151 355 4100 / 356 2222
Email: customercaredirector@hss.com Website: http: //www.lrroadlines.co.uk/
Email: info@hitexinternational.com

IKO Roofing Specification Division

Asphalt Products M & T Pipeline Supplies Ltd
Tel: 01257 255 771 Drains
Fax: 01257 252514 Tel: 0141 774 8300
Website: http: //www.ikogroup.co.uk/ Fax: 0141 774 7300
Email: info@ikogroup.co.uk Website: http: //www.mtpipe.co.uk/
Email: info@mtpipe.co.uk
Inform UK Ltd
Formwork and Accessories Maccaferri Ltd
Tel: 01223 862230 River and Sea Gabions
Fax: 01223 440246 Tel: 01865 770555
Website: http: //www.informuk.co.uk/ Website: https: //www.maccaferri.com/uk/
Email: enquiries@informuk.co.uk Email: technical.uk@maccaferri.com

Jacksons Fencing Ltd

Marley Plumbing & Drainage Ltd
Fencing
uPVC Drainage and Rainwater Systems
Tel: 01233 750393 / 0800 408 2234
Tel: 01622 858888
Fax: 01233 750403
Website: http: //www.marleyplumbinganddrainage.com/
Website: www.jackson-fencing.co.uk
Email: customerservice@marleypd.com
Email: sales@jacksons-fencing.co.uk

James Latham Plc Marshalls Mono Ltd

Timber Merchants Kerbs, Edgings and Pavings
Tel: 01442 849100 Tel: 01422 312000
Fax: 01442 267241 Website: www.marshalls.co.uk
Website: www.lathamtimber.co.uk Email: customeradvice@marshalls.co.uk
Email: marketing@lathams.co.uk
Milton Precast
John Bell Pipeline Pre-cast Concrete Solutions
Carbon Steel Drainage Tel: 01795 425191
Tel: 01224 714514 Fax: 01795 420360
Website: http: //www.jbpipeline.co.uk Website: http: //www.miltonprecast.co.uk/
Email: sales@jbpipeline.co.uk Email: sales@miltonprecast.com
 Acknowledgements xvii

Mone Bros Redman Fisher Ltd

Geotech Flooring and Metal Work
Tel: 0113 252 3636 Tel: +44 (0) 1952 685110
Website: http: //www.monebros.co.uk/index.htm Fax: +44 (0) 1952 685117
Email: info@monebros.co.uk Website: www.redmanfisher.co.uk
Email: sales@redmanfisher.co.uk

Morelock Signs
Traffic Signs Remmers (UK) Limited
Tel: 01902 637 575 Waterproofing
Website: www.morelock.co.uk Tel: 01293 594 010
Fax: 01293 594 037
Website: http: //www.remmers.co.uk/
Moveright International Ltd Email: sales@remmers.co.uk
Abnormal Load Specialists
Tel: +44 (0)1675 475590
RIW Limited
Fax: +44 (0)1675 475591
Waterproofing
Website: http: //moverightinternational.com/
Tel: 01344 397777 / 7788
Email: andrew@moverightinternational.com
Website: http: //www.riw.co.uk/
Email: enquiries@riw.co.uk
Naylor Drainage Ltd
Clayware Pipes and Fittings Roger-Bullivant Ltd
Tel: 01226 790591 Pilling and Foundations
Fax: 01226 790531 Tel: 0845 838 1801
Website: www.naylor.co.uk Website: www.roger-bullivant.co.uk
Email: drainage@naylor.co.uk Email: info@roger-bullivant.co.uk

Pearce Signs Ltd ROM Ltd

Gantry Signs Formwork, Reinforcement and Accessories
Tel: 01159 409620 Tel: 01543 421600
Website: http: //www.pearcesigns.com/ Website: www.rom.co.uk
Email: info@pearcesigns.com Email: sales@rom.co.uk / sales@rom-tech.co.uk

PHI Group Ltd Saint-Gobain Pipelines PLC

Retaining Walls, Gabions Cast Iron Pipes and Fittings,
Tel: 01242 707600 Polymer Concrete Channels,
Website: www.phigroup.co.uk Manhole Covers and Street Furniture
Email: southern@phigroup.co.uk Tel: 0115 9305000
Website: www.saint-gobain-pipelines.co.uk
Email: sales.uk.pam@saint-gobain.com
Pipestock Limited
Conduits Stocksigns Ltd
Tel: 01794 835835 Road Signs and Posts
Fax: 0845 634 1056 (local rate) Tel: 01737 774 072
Website: http: //www.pipestock.com/ Website: www.stocksigns.co.uk
Email: info@pipestock.com Email: sales@stocksigns.co.uk

Platipus Anchors Ltd Structural Soil Ltd

Earth Anchors Ground Investigation
Tel: 01737 762300 Tel: 01179471000
Website: www.platipus-anchors.com Website: www.soils.co.uk
Email: info@platipus-anchors.com Email: ask@soils.co.uk
xviii Acknowledgements

Sundeala Limited Varley and Gulliver Ltd

Flexcell Board Bridge Parapets
Tel: 01453 708689 Tel: 0121 773 2441
Website: http: //www.sundeala.co.uk/ Website: www.v-and-g.co.uk
Email: enquiries@sundeala.co.uk Email: sales@v-and-g.co.uk

Tarmac Trading Limited

Vibro Menard
Prestressed Concrete Beams and Blockwork
Ground Consolidation
Tel: 0121 787 5001
Tel: 01704 891039
Website: http: //www.tarmac.com/
Website: http: //www.vibromenard.co.uk/
Email: contractinghqreception@tarmac.com
Email: sales@vibromenard.co.uk

Tata Steel Ltd

Steel Products Wavin (OSMA)
Tel: 020 7717 4444 Plastic Piping and Drainage
Fax: 020 7717 4455 Tel: 01709 856 300
Website: http: //www.tatasteeleurope.com/ Website: https: //www.wavin.com/en-gb/
Email: feedback@tatasteeleurope.com

Wavin Plastics Ltd

Tensar International UPVC Drain Pipes and Fittings
Soil Reinforcement Tel: 01249 766600
Tel: 01254 262431 Website: https: //www.wavin.com/en-gb/
Fax: 01254 266868
Website: www.tensar.co.uk
Email: info@tensar-international.com Wells Spiral Tubes Ltd
Steel Culverts
Travis Perkins plc Tel: 01535 664231
Builders Merchants Fax: 01535 664235
Tel: 01604 752424 Website: www.wells-spiral.co.uk
Email: sales@wells-spiral.co.uk
Website: www.travisperkinsplc.co.uk
Email: customerservice@travisperkins.co.uk

Winn & Coales (Denso) Ltd

Unistrut Anti-corrosion and Sealing Products
Concrete Inserts Tel: 0208 670 7511
Tel: 0121 580 6300 Fax: 0208 761 2456
Fax: 0121 580 6370 Website: www.denso.net
Website: http: //www.unistrut.co.uk/ Email: mail@denso.net
 SPON’S 2022 PRICEBOOKS from AECOM
Spon’s Architects’ and
Builders’ Price Book 2022
Editor: AECOM
New items this year include:
- a London fringe office cost model
- a Higher Education Refurbishment cost
model
- Pecafil® permanent formwork
and an expanded range of cast iron
rainwater products
Hbk & VitalSource® ebook 868pp approx.
978-0-367-51402-0 £175
VitalSource® ebook
978-1-003-05367-5 £175
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Spon’s External Works and
Landscape Price Book 2022
Editor: AECOM in association with LandPro Ltd
Landscape Surveyors
Now with a revised and updated street
furniture section.
Plus several new items:
- Kinley systems: Metal edgings and
systems for landscapes and podiums
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- Stainless steel landscape channel
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Hbk & VitalSource® ebook 680pp
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To order:
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Email: book.orders@tandf.co.uk
A complete listing of all our books is on www.routledge.com
Information Classification: General
Spon’s Civil Engineering and
Highway Works Price Book
2022
Editor: AECOM
This year gives more items on shafts,
tunnelling, drainage and water proofing –
covering some brand new materials and
methods. Notes have been added to
tunnelling, viaducts, D-walls and piling
under the output section. The book
partially reflects costs and new ways of
working resulting from the Covid-19
pandemic.
Hbk & VitalSource® ebook 704 pp approx.
978-0-367-51403-7 £195
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Spon’s Mechanical and
Electrical Services Price Book
2022
Editor: AECOM
An overhaul of the uninterruptible power
supply section, and revised costs for air
source heat pumps.
Plus new items, including:
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Hbk & VitalSource® ebook 864pp approx.
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Ancient structures,
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 ESSENTIAL READING FROM TAYLOR AND FRANCIS

Construction Contracts:
Questions & Answers,
4th edition

David Chappell

This fully revised and updated edition of Construction Contracts: Questions and
Answers includes 300 questions and incorporates 42 new judicial decisions, the JCT
2016 updates and the RIBA Building Contracts and Professional Services Contracts
2018 updates.

Construction professionals of all kinds frequently need legal advice that is

straightforward as well as authoritative and legally rigorous. Building on the success
of previous editions, David Chappell continues to provide answers to real-world
FAQs from his experience as consultant and Specialist Advisor to the RIBA.
Questions range in content from extensions of time, liquidated damages and loss
and/or expense to issues of practical completion, defects, valuation, certificates and
payment, architects’ instructions, adjudication and fees.

Every question included has been asked of David Chappell during his career and his
answers are authoritative but written as briefly and simply as possible. Legal
language is avoided but legal cases are given to enable anyone interested to read
more deeply into the reasoning behind the answers. This is not only a useful
reference for architects, project managers, quantity surveyors and lawyers, but also
a useful student resource to stimulate interesting discussions about real-world
construction contract issues.

November 2020: 302 pp

ISBN: 9780367532086

To Order
Tel:+44 (0) 1235 400524
Email: tandf@bookpoint.co.uk

For a complete listing of all our titles visit:

www.tandf.co.uk
 PART 1

General

Page
Brexit and the UK construction sector 3
Purpose and content of the book 5
Outline of the tendering and estimating process 9
Research and Development (R&D) tax relief 17
Capital allowances 23
Value added tax 31
The aggregates levy 39
Land remediation 45
The landfill tax 55
 ESSENTIAL READING FROM TAYLOR AND FRANCIS

CPD in the Built Environment

Greg Watt and Norman Watts

The aim of this book is to provide a single source of information to support continuing
professional development (CPD) in the built environment sector.

The book offers a comprehensive introduction to the concept of CPD and provides robust
guidance on the methods and benefits of identifying, planning, monitoring, actioning, and
recording CPD activities. It brings together theories, standards, professional and industry
requirements, and contemporary arguments around individual personal and professional
development. Practical techniques and real-life best practice examples outlined from within
and outside of the industry empower the reader to take control of their own built environment-
related development, whilst also providing information on how to develop fellow staff
members. The contents covered in this book align with the requirements of numerous
professional bodies, such as the Royal Institution of Chartered Surveyors (RICS), the
Institution of Civil Engineers (ICE), and the Chartered Institute of Builders (CIOB).

The chapters are supported by case studies, templates, practical advice, and guidance. The
book is designed to help all current and future built environment professionals manage their
own CPD as well as managing the CPD of others. This includes helping undergraduate and
postgraduate students complete CPD requirements for modules as part of a wide range of
built environment university degree courses and current built environment professionals of all
levels and disciplines who wish to enhance their careers through personal and professional
development, whether due to professional body requirements or by taking control of
identifying and achieving their own educational needs.

April 2021: 182 pp

ISBN: 9780367372156

To Order
Tel:+44 (0) 1235 400524
Email: tandf@bookpoint.co.uk

For a complete listing of all our titles visit:

www.tandf.co.uk
Brexit and the UK Construction Sector

The EU-UK Trade and Cooperation Agreement (TCA) came into effect at 11pm on 31st December 2020. The
principle of the TCA is to lower or remove tariffs on traded goods between the two geographies. However, as a
result of the TCA and choices made during the negotiation, a raft of non-tariff barriers (NTBs) also apply in a
material and significant way to trade between the UK and the European Union. NTBs introduce significant
administrative overheads and burdens that will almost certainly add to the costs and impact the running of UK
construction, not least additional time risks.
The UK points-based immigration scheme will affect labour supply to the construction industry, while at the same
time emigration trends from the UK amplify prevailing workforce capacity constraints.
All of these dramatic changes will take some time to settle down as the industry begins to fully understand the raft
of new rules and regulations which are affecting nearly every facet of project delivery in the UK and throughout the
EU.

TARIFFS
Tariffs can be viewed as a tax by one country on the imports of goods and services from another country. They
can also be seen as protections for domestic producers. Tariffs are applied either as fixed percentages irrespec-
tive of the type or value of good imported, or they are levied as a percentage of the value of the imported good. A
consequence of tariffs can be to raise the prices of goods or services in the market where they are imported, with
consumers ultimately bearing the cost.

NON-TRADE BARRIERS
Non-tariff barriers (NTBs) are trade restrictions from policies implemented by a country’s government. They are
technical and operational restrictions, which take a variety of forms: regulations, checks, inspections, quotas,
subsidies, rules of origin, prohibitions, and controls for example. Ultimately, they add friction, red tape, time and
cost to trade between countries, and will act as inflationary drivers for the UK construction market.
Data suggest that NTBs introduce larger cost and time impediments and/or additions to trade than direct tariffs.
Broadly, the UK government assessed NTBs in a UK/EU FTA scenario — as a percent of trade value — as 5–11% for
goods and 3–14% for services (UK Government, 'EU Exit: long-term economic analysis, November 2018'). Rest of
the World NTBs are at the lower end of these respective ranges. At the higher end of these ranges, NTBs are
likely to introduce greater cost impacts on traded goods and services across borders than tariffs otherwise would
— especially where time delays and their impacts factor into overall cost.

FURTHER INFORMATION
＋ Brexit on GOV.UK https://www.gov.uk/transition
＋ Trade Tarriff: look up commodity codes duty and VAT rates https://www.gov.uk/trade-tariff
4 General

VALUE CHAIN ANALYSIS

Value chain analysis (VCA) is a means of evaluating each of the activities in a company’s value chain to under-
stand where improvement opportunities exist. A value chain analysis allows each step in the manufacturing or
service process to be assessed and whether it increases or reduces value from a product or service. Typically,
increasing the performance of one of the secondary activities can benefit at least one of the primary activities.
VCA aims to enable or maintain competitive advantage through, for example:

＋ Cost reduction, by making each activity in the value chain more efficient and, therefore, less expensive
＋ Product differentiation, by investing more time and resources into activities like research and development,
design, or marketing that can help your product stand out from the crowd

AECOM assessed the indicative impacts of Brexit on a typical value chain for the UK construction sector and its
contracting supply chain firms:

INTRINSIC ISSUES STRUCTURAL ISSUES

Business product; scope of service
Core service/product offer largely unchanged but shifts in
strategy to focus on sectors where demand exists over the
medium-term. Adjustment necessary for changes to or diver-
gence in regulatory requirements and understanding the
location and nature of new trade markets.
Scale; sourcing, supply economics
Primary impacts to sourcing strategies as suppliers to
subcontractors and the wider supply chain review operations.
Reduced availability of supply into UK markets, particularly
from the EU, will result in procurement risks. Compounded by
significant customs and port delays, and material changes and
disruption to UK/EU logistics economics.

IMPACTS COST ◔ TIME ◑ IMPACTS COST ● TIME ◕

SYSTEMIC ISSUES PERFORMANCE ISSUES

Business infrastructure; processes; structure
Administrative and legal issues bring proportionally higher cost
burden for long tail of small supply chain firms. Management
capacity redirected to immediate operational issues. Higher
commercial risks associated with tender submissions – reduced
quotation validity and more exclusions for example. Inflationary
pressures to mitigate from manufacturers pass-through of
additional costs from non-tariff barriers.
Productivity; labour; materials
EU workforce trends reduce overall industry capacity, adding
inflationary cost pressures. EU nationals comprise approxi-
mately 11% of the construction workforce generally, but almost
30% in London. Supply chain productivity impacted. On-going
lower value of sterling results in higher imported materials and
component costs. Higher logistics costs from a combination of
Covid−19 global supply chain disruption and impacted logistics
economics from Brexit.

IMPACTS COST ◕ TIME ◕ IMPACTS COST ◕ TIME ◕

With risks continuing to increase, business planning and preparations should, amongst other things, include:

＋ Understand and appraise your current situation

＋ Assess supply chain connections, risks and opportunities
＋ Analyse any exposure to Brexit — qualitatively and quantitatively
＋ Implement risk management and mitigation procedures
 Purpose and Content of the Book

For many years the Editors have compiled a price book for use in the building industry with, more recently, com-
panion volumes for use in connection with mechanical and electrical engineering services contracts and land-
scaping work. All the price books take their reliability from established practice (within these sectors of the building
industry), of pricing work by the application of unit rates to quantities measured from the designer's drawings. This
practice remains valid because most construction work can be carried out under similar circumstances regardless
of site location. A comparatively low proportion of contract value is subject to the risks that attend upon work
below ground level and once the building envelope is watertight, most trades can proceed without serious
disruption from the weather.

This is not, however, the general method of pricing Civil Engineering Work. The volume of work below ground,
increased exposure to weather and the tremendous variety of projects, in terms of type, complexity and scale,
make the straightforward use of unit rates less reliable. So, whilst in building work, similar or identical measured
items attract a fairly broad range of prices, the range is much greater in Civil Engineering Bills. This uncertainty is
compounded by the lower number of bill items generated under Civil Engineering Methods of Measurement, so
that the precise nature of the work is less apparent from the bill descriptions and the statistical effect of 'swings
and roundabouts' has less scope to average out extremes of pricing.

To prepare an estimate for a Civil Engineering project, it is necessary to be cognisant of the method to be adopted
in executing the work, able to draw up a detailed programme and then cost out the resources necessary to exe-
cute the chosen method. Because the first two parts of this process are in the control of the Contractor's planner,
there has been a tendency to postpone detailed estimating until the tendering stage itself, with the employer
relying up to that point upon an estimate prepared with a high degree of pricing tolerance, viz the Dtp’s use of
Optimum Bias.

The result has been a growing pressure on the part of project sponsors for an improvement in budgetary advice,
so that a decision to commit expenditure to a particular project is taken on firmer grounds. The absence of a
detailed pricing method during the pre-contract phase inhibits the accurate costing of alternative designs and
necessitates regular cost reviews to ensure that the design is being developed within the employer's budget.

This book therefore seeks to draw together the information appropriate to two methods of pricing: the cost of
resources for use where an operational plan has been outlined, and unit rates for use where quantities can be
taken from available drawings.

To take some note of the range of unit rates that might apply to an item, the rates themselves are in some cases
related to working method – for example by identifying the different types of plant that would suit varying circum-
stances. Nonetheless, it would be folly to propose that all types of Civil Engineering and Highways work could be
covered by a price book such as this. The Editors have therefore had in mind the type and scale of work
commissioned by a local authority, a public corporation or a large private company.

This does embrace the great majority of work undertaken by the industry each year. Although almost all projects
will have individual features that require careful attention in pricing, there will be some projects that are so spe-
cialist that they will not conform to standard pricing information at all. The user is expected to contact Specialists
directly in such circumstances.

For most projects, within the range of work covered, this book should provide a firm foundation of cost information
upon which a job-specific estimate can be built.
6 General

PURPOSE AND CONTENT OF THE BOOK

The contents of the book are therefore set out in a form that permits the user to follow the estimating process
through in a structured way, as follows:

Part 1: General
The balance of this section describes in narrative form the work stages normally followed in a Contractor’s office
from receipt of the tender documents through to the submission of the tender.

It also includes a generalized introduction to the user of the principles and current legislation affecting the appli-
cation of The Aggregates Levy, Capital Allowances, VAT, Landfill Tax and Land Remediation within the construc-
tion industry.

Part 2: Oncosts and Profit

Having produced an estimate for the predicted cost of the work, being the sum of the preliminaries and the
measured work, the estimate must be converted to a tender by the application of any adjustment made by man-
agement (which follows the Management Appraisal described later in this part of the book) and by additions for
financing charges, head office overheads and profit. These additions are discussed in this section and also
included is a worked example of an indicative tender summary.

A Checklist of items to be priced with Preliminaries and General Items (or Method Related Charges) is included
within this section as a ‘Worked Example.’

Part 3: Cost Indices and Location Factors

The cost and tender price indices included in this part of the book provide a basis for updating historical cost or
price information, by presenting changes in the indices since 2010. Caution must be taken when applying these
indices as individual price fluctuations outside the general trend may have a significant effect on contract cost.

Part 4: Resources
This deals with the basic cost of resources, so that a resource-based system of estimating can be adopted where
it is possible to develop an outline programme and method statement. Reference to this section will also assist the
user to make adjustments to unit rates where different labour or material costs are thought to apply and to cal-
culate analogous rates for work based on the hypothetical examples given. It is stressed that all of the costs given
in this section exclude the items costed within the preliminaries, financing charges, head office overheads and
profit. The materials and plant costs as shown are gross, with no deduction of discount.

Part 5: Approximate Estimating

The prices in this section have been assembled from a number of sources, including the relevant items in the unit
costs section and recovered data from recent projects. They are intended to give broad price guides or to assist in
comparison exercises. This section is to be utilized in conjunction with Parts 6 and 7 to enable the user to incor-
porate within the estimate, items more normally associated with Building Work and/or Civil Engineering and which
do not fall readily under recognized methods of measurement for either Building and/or Civil Engineering Work.
Due to the diversity of items that fall under such a definition, (because of specification differences), the format for
this section is structured to incorporate a range of items to allow the production of the estimate for such items
prior to detailed design information being available.

Building Prices per Square Metre

This section provides an indicative range of values against specific building and engineering facilities exclusive of
preliminaries, specialist equipment and professional fees, but does include for overheads and profit.

This section provides an indicative range of values against general civil engineering works exclusive of pre-
liminaries, specialist equipment and professional fees, but does include for overheads and profit.
 General 7

PURPOSE AND CONTENT OF THE BOOK

Approximate Estimating Rates – General Building Works

This section provides an indicative range of values against general building works exclusive of preliminaries,
specialist equipment and professional fees, but does include for overheads and profit.

Parts 6 and 7: Unit Costs

These sections are structured around methods of measurement for Civil Engineering Work and Highway Works
and gives ‘trade by trade' unit rates for those circumstances where the application of unit rates to measured
quantities is possible and practical. Again, it is stressed that the rates exclude the items costed within pre-
liminaries, financing charges, head office overheads and profit. Both materials and plant costs are adjusted to
allow a normal level of discount, with allowances for materials wastage and plant usage factors. Guidance prices
are included for work normally executed by specialists, though there will be some projects that are so specialized
that they will not conform to standard pricing information at all. The user is expected to contact Specialists directly
in such circumstances.

Part 8: Daywork
This section includes details of the CECA day works schedule and supplementary charges and advice on costing
excluded items.

Part 9: Professional Fees

These contain reference to a standard suite of agreements relating to a scale of professional charges/fees and
conditions of appointment for Consulting Engineers and Quantity Surveyors.

Part 10: Outputs

Scheduled here are various types of operations and the outputs expected of them for mechanical and hand
operated equipment. Also listed are outputs per man hour for various trades found in Civil Engineering.

Part 11: Useful Addresses for Further Information

This section provides useful contact addresses in the UK construction industry.

Part 12: Tables and Memoranda

These include conversion tables, formulae, and a series of reference tables structured around trade headings.
 ESSENTIAL READING FROM TAYLOR AND FRANCIS

Deep Excavations in Soil

John Endicott

The book describes the theory and current practices for design of earth lateral support for
deep excavations in soil. It addresses basic principles of soil mechanics and explains how
these principles are embodied in design methods including hand calculations. It then
introduces the use of numerical methods including the fundamental “beam on springs”
models, and then more sophisticated computer programmes which can model soil as a
continuum in two or three dimensions. Constitutive relationships are introduced that are in use
for representing the behaviour of soil including a strain hardening model, and a Cam Clay
model including groundwater flow and coupled consolidation.

These methods are illustrated by reference to practical applications and case histories from
the author’s direct experience, and some of the pitfalls that can occur are discussed. Theory
and design are strongly tied to construction practice, with emphasis on monitoring the the
retaining structures and movement of surrounding ground and structures, in the context of
safety and the Observational Method. Examples are presented for conventional “Bottom-up”
and “Top-down” sequences, along with hybrid sequences giving tips on how to optimise the
design and effect economies of cost and time for construction. It is written for practising
geotechnical, civil and structural engineers, and especially for senior and MSc students.

July 2020: 238 pp

ISBN: 9780367313609

To Order
Tel: +44 (0) 1235 400524
Email: book.orders@tandf.co.uk

For a complete listing of all our titles

visit: www.tandf.co.uk
 Outline of the Tendering and
Estimating Process

This section of the book outlines the nature and purpose of Civil Engineering estimating and provides background
information for users. It comprises an outline of the estimating and tendering process with supporting notes and
commentaries on particular aspects. Some worked examples on tender preparation referred to in this part are
included at the end of Part 2.

It must be emphasized that the main purpose of this book is to aid the estimating process. Thus it is concerned
more with the predicted cost of Civil Engineering work than with the prices in a bill of quantities. To ensure the
correct interpretation of the information provided it is important to distinguish clearly between estimating and
tendering; the following definitions are followed throughout.

The estimate is the prediction of the cost of a project to the Contractor. The Tender is the price submitted by the
Contractor to the Employer.

The tender is based on the estimate with adjustments being made after review by management; these include
allowances for risk, overheads, profit and finance charges. As discussed later in this section, prices inserted
against individual items in a bill of quantities may not necessarily reflect the true cost of the work so described due
to the view taken by the Contractor on the risks and financial aspects involved in executing the work.

Whilst projects are now constructed using many different forms of contract the core estimating process falls into
two main divisions, namely ‘Design & Construct’ and ‘Construct only’. The following list summarizes the activities
involved in the preparation of a process for a typical design and construct Civil Engineering project where the
client issues detailed drawings, specifications and Bills describing the extent of the works to be priced.

Due to the size and complex nature of civil and highway projects, the delivery process is usually divided into eight
distinct stages. Network rail for example uses GRIP stages while other bodies may use different terminology like
Gateway or RIBA stages. The overall approach is product rather than process driven, and within each stage an
agreed set of products are delivered. Formal stage gate reviews are held at varying points within the gateway
stages. The stage gate review process examines a project at critical stages in its lifecycle to provide assurance
that it can successfully progress to the next stage. In this pre-contract stage of the project some of the activities
involved are site visits, obtaining current prices, assessing programme and method statements, design of
temporary works, verification of estimates, tender and management appraisal among other things.

Typical pre- and post-contract stages of the project are outlined below and the diagram that follows illustrates the
relationships between the stages.

1. Output definition – Initial Client Brief

2. Feasibility
3. Option selection
4. Single option development
5. Detailed design
6. Construction test and commission
7. Scheme hand back
8. Project close out
10 Outline of the Tendering and Estimating Process

The following are some notes on factors and processes to consider in delivering the project and its definition.

1. An overall appraisal of the project is made including any variations to the standard contract form, insurance
provisions and any other unusual or onerous requirement.
2. Material requirements are abstracted from the tender documents and prices are obtained from suppliers.
Details of work normally subcontracted are abstracted, together with relevant extracts from the tender
documents and prices are obtained from subcontractors. The site of the works and the surrounding area is
visited and studied. Local information is obtained on factors affecting the execution of the contract.
3. A programme and detailed method of working for the execution of the contract is prepared, to include
details of plant requirements, temporary works, unmeasured work, appropriate supervisory staff, etc.
4. Designs are made for temporary works and other features left to be designed by the Contractor, and
quantities are taken off for costing.
5. Major quantities given in the tender documents are checked.
6. The cost estimate for the project is prepared by costing out all of the resources identified by stages 2 to 6.
A more detailed report is made on the conditions of contract, financial requirements, etc. and an assess-
ment of risk/opportunity is prepared.
7. The Tender documents are priced.
8. Management reviews the estimate, evaluates the risks and makes allowances for overheads, profit and
finance.
 Outline of the Tendering and Estimating Process 11

9. Adjust spread of oncosts and profit.

10. The tender is completed and submitted.

1. INITIAL APPRAISAL
The purpose of the initial overall appraisal is to highlight any high value areas or any particular problems which may
require specialist attention; it can also identify possible alternative methods of construction or temporary works.

Other points to be considered:

＋ the location and type of project and its suitability to the tenderer’s particular expertise
＋ the size of project, its financing requirement, the proportion of annual turnover it would represent and the
availability of resources
＋ the size of the tender list and the nature of the competition
＋ the identity of the employer and his professional consultants
＋ the adequacy of the tender documents
＋ an initial appraisal of risk and opportunity

Corporate governance requires that the directors of companies are aware of all the liabilities inherent in the con-
tract being sought. Few contracts are offered on totally unamended standard forms and specifications and it is the
estimator’s duty to ensure that a report is prepared to advise on the precise terms and conditions being offered
and their potential implications.

It is essential for the estimator to study the contract documents issued with the enquiry or made available for
inspection and to note those parts which will affect pricing or involve the Contractor in liabilities which must be
evaluated and drawn to the attention of management. The following comments are indicative only:

Conditions of Contract
For Civil Engineering work these are normally, but not exclusively, based on either the ICE or ECC (NEC4)
standard forms. However these forms are rarely offered without addition and amendment and it is imperative that
the full implications are understood and directors informed. Any required bonds, guarantees and warranties must
be identified, reported and included in subcontract enquiries where appropriate. Insurance requirements and
excesses must be checked against company policies.

Bill of Quantities
Where a Bill is provided it serves three purposes: first and foremost it must be prepared with the objective of
providing the estimator with as accurate a picture of the project as possible, so as to provide a proper basis for
pricing. Second, it should enable the employer to compare tenders on an equal basis and third, it will be used to
evaluate the work executed for payment purposes. Individual items in the Bill do not necessarily describe in detail
the work to be carried out under a particular item; reference must be made to the specification and the drawings
to ascertain the full scope of the work involved.

The method of preparing the Bill may be based on the 'Civil Engineering Standard Method of Measurement'
issued by the Institution of Civil Engineers or the 'Method of Measurement for Highway Works' issued by the
Highways Agency, but some employing authorities have evolved their own methods and it is important for the
estimator to study the Bill and its preambles to ensure that his rates and prices are comprehensive.

In all cases the quantities given in the bill are not a guarantee and the drawings usually have precedence. The
estimator must understand whether he is pricing a re-measurable or fixed price contract and make due allowance.

Specification
This gives a detailed description of the workmanship, finish and materials to be used in the construction of the
work. It may also give completion periods for sections and/or the whole of the work together with details of the
requirements for the employer and/or the Consulting Engineer in connection with their supervision on site.
12 Outline of the Tendering and Estimating Process

Water Authority and Highway Works in particular are based around a standard specification. However even standard
specifications will have contract specific appendices and tables. The estimator must take due note of these
requirements and ensure that this information is issued and taken into account by all potential subcontractors and
material suppliers.

Drawings
These give details of the work to be carried out and must be read in conjunction with the specification. It is important
for the estimator to study the notes and descriptions given on the drawings as these amplify the specification.

Should the estimator discover any conflict between the various documents, it is important to have such discrepancies
clarified by the Employer or Engineer prior to submission of any offer.

2. OBTAINING PRICES

(a) Materials
When pricing materials, the following points must be noted:

＋ checks must be made to ensure that the quality of materials to be supplied meets with the requirements of
the specification. If necessary, samples should be obtained and tested for compliance
＋ checks must be made to ensure that the rates of delivery and fabrication periods can meet the demands of
the programme. It is sometimes necessary to use more than one supplier, with differing prices, to ensure a
sufficient flow of materials
＋ tests should be carried out to ascertain allowances to be made for operations such as compaction of soils
and aggregates. Records of past contracts using similar materials can give this information, providing such
records are accurate and reliable

(b) Subcontractors
It is common practice among Civil Engineering Contractors to subcontract a significant proportion of their work.

Subcontracted work can represent the bulk of the value of measured work.

When utilizing subcontractors' prices it is extremely important to ensure that the rates given cover the full extent of
the work described in the main contract, and that the subcontractor’s quotation allows for meeting the main
Tender programme and methods of working.

Unless an exclusive relationship has been entered into prior to the tendering process it is likely that the same
subcontractor will submit prices to a number of competing tenderers. It is important for the estimator to ensure
that the price offered represents the method intended and is not a generic sum which is subject to variation if
successful.

3. SITE VISIT
Factors to check during the site visit include, but are not limited to:

＋ access
＋ limitations of working space
＋ existing overhead and underground services
＋ nearby public transport routes
＋ availability of services – water, gas, electricity, telephone, etc.
＋ availability of labour and subcontractors
＋ availability of materials – particularly aggregates and fill materials and location of nearest tipping facility
＋ nature of the ground, including inspection of trial bores/pits if dug below groundwater level
＋ presence of other Contractors working on or adjacent to the site.
 Outline of the Tendering and Estimating Process 13

4. METHOD STATEMENT AND PROGRAMME

As previously stated, whilst an estimate is being prepared it is necessary that a detailed method of working and a
programme for the execution of the works is drawn up; the latter can take the form of a bar chart or, for large and
more complex projects, may be prepared on more sophisticated computerized platforms. Compliance with the
employer's target completion dates is, of course, essential. The method of working will depend on this programme
insofar as the type and size of plant and the gang sizes to be used must be capable of achieving the output
necessary to meet the programmed times. Allowance must be made for delays due to adverse weather, other
hazards particular to the site and the requirements of the specification, particularly with regard to periods to be
allowed for service diversions and other employer’s requirements.

A method statement is prepared in conjunction with the programme, setting out the resources required, outputs to
be achieved and the requirements in respect of temporary works, etc.

At the same time, separate bar charts may be produced giving:

＋ plant requirements
＋ staff and site supervision requirements
＋ labour requirements

These programmes and method statements will form the basis of the actual contract programme should the
tender be accepted. They will also enable the Contractor to assure himself that he has available or can gain
access to the necessary resources in plant, labour, materials and supervision to carry out the work should he be
awarded the contract.

5. DESIGN OF TEMPORARY WORKS, ETC.

Normally the period of time allowed for tendering is relatively short and therefore it is important that those aspects
requiring design work are recognized as early as possible in the tender period. Design can be carried out either by
the Contractor using his own engineers or by utilizing the services of a Consulting Engineer. There are three
aspects of design to be considered:

(a) Temporary works to the contractor's requirements to enable the works to be constructed
Design of temporary works covers the design of those parts of the work for which the contractor accepts full
responsibility in respect of stability and safety during construction. Such parts include support structures, coffer-
dams, temporary bridges, jetties and river diversions, special shuttering, scaffolding, haul roads and hard stand-
ings, compounds, traffic management etc. Design must be in sufficient detail to enable materials, quantities and
work content to be assessed and priced by the estimator. In designing such work, it is important that adequate
attention is given to working platforms and access for labour and plant and also to ease of dismantling and
re-erection for further uses without damage.

It should be noted that many specialist subcontractors will provide a design service when submitting quotations.
For example, scaffolding contractors will design suitable support work for soffit shuttering, etc.

(b) Specific items of the permanent works to meet a performance specification set out by the client or the
Consulting Engineer
It is common practice for certain parts of the work to be specified by means of a performance specification. For
example, concrete is specified by strength only, piles by load carrying capacity, etc. It is then left to the contractor
to use those materials, workmanship and design which he feels are most suited to the particular site and
conditions. In many cases such design will be carried out by specialist suppliers or subcontractors.

(c) Alternative designs for sections of the permanent works where the contractor's experience leads him
to consider that a more economical design could be used
It is possible for a Contractor to use his expertise and experience to design and submit alternative proposals and
prices for complete sections of the permanent work without, of course, altering the basic requirements of the
14 Outline of the Tendering and Estimating Process

original design. Examples would be foundations in difficult ground conditions, bridge superstructures, use of pre-
cast in place of in situ concrete, etc. Such designs may be carried out by the contractor's own staff or in con-
junction with Consulting Engineers or specialist contractors.

Obviously this is only done when the Contractor can offer considerable savings in cost and/or a reduced con-
struction period. It is necessary to include a price for the original design in the tender, but the decision to submit a
keen tender may be underpinned by the hope of sharing such savings with the Employer.

In all cases, the Contractor's designs and calculations must be checked and approved by the Employer's Con-
sulting Engineer, but such checks and approvals do not relieve the Contractor of his responsibilities for the safety
and stability of the work.

Where any design work is undertaken it is important to ensure that adequate design insurance is maintained.

6. QUANTITIES CHECK
Working within obvious time constraints, the estimating team will endeavour to complete a quantities check on at
least the major and high price quantities of the Bill, as this could affect pricing strategy, for example, in pricing
provisional items. Any major discrepancies noted should be referred to the management appraisal agenda.

7. COST ESTIMATE
At this stage the estimator draws together the information and prepares a cost estimate made up of:

＋ preliminaries and general items.

＋ temporary works.
＋ labour, costed by reference to the method statement, with appropriate allowances for labour oncosts (non-
productive overtime, travelling time/fares, subsistence, guaranteed time, bonus, Employer's Liability Insurance,
training, statutory payments, etc.).
＋ material costs taken from price lists or suppliers' quotations, with appropriate allowances for waste.
＋ plant, whether owned or hired, with appropriate allowances for transport to/from site, erection/dismantling,
maintenance, fuel and operation. Heavy static plant (batching plant, tower cranes, etc.) will normally be
priced with general items; the remainder will normally be allocated to the unit rates.
＋ sublet work, as quoted by specialist subcontractors, with appropriate allowances for all attendances
required to be provided by the main contractor.

At the same time, a preliminary assessment of risk/opportunity will be made for consideration with the Manage-
ment Appraisal (see Section 9 below). On major tenders a formal quantified risk assessment (QRA) will be
undertaken – the estimator will be expected to evaluate the effects of the risks for inclusion in the calculations.
This will include a look at:

＋ weather conditions – costs not recoverable by claims under the Conditions of Contract, ground becoming
unsuitable for working due to the effect of weather, etc.
＋ flooding – liability of site to flooding and the consequent costs.
＋ suitability of materials – particular risk can arise if prices are based on the use of borrow pits or quarries
and inadequate investigation has been carried out or development is refused by the local authorities.
＋ reliability of subcontractors – failure of a subcontractor to perform can result in higher costs through delays
to other operations and employing an alternative subcontractor at higher cost.
＋ non-recoverable costs – such as excesses on insurance claims.
＋ estimator's ability – e.g. outputs allowed. This can only be gauged from experience.
＋ cost increase allowances for fixed price contract.
＋ terms and conditions contained in the contract documents.
＋ ability to meet specification requirements for the prices allowed.
＋ availability of adequate and suitable labour.
 Outline of the Tendering and Estimating Process 15

Risk is, of course, balanced by opportunity and consideration needs to be given to areas for which particular
expertise possessed by the Contractor will lead to a price advantage against other tenderers.

8. PRICING THE TENDER

Once the cost estimate is complete, the estimator prices the items in the Bill. The rate to be entered against the
items at this stage should be the correct rate for doing the job, whatever the quantity shown.
Where the overall operation covers a number of differing Bill items, the estimator will allocate the cost to the var-
ious items in reasonable proportions; the majority of the work is priced in this manner. The remaining items are
normally priced by unit rate calculation.

Resources schedules, based on the programme and giving details of plant, labour and staff, perform an important
role in enabling the estimator to check that he has included the total cost of resources for the period they are
required on site. It is not unusual for an item of plant to be used intermittently for more than one operation. A
reconciliation of the total time for which the cost has been included in the estimate against the total time the item
is needed on site as shown on the programme, gives a period of non-productive time. The cost of this is normally
included in site oncosts and preliminaries. A similar situation can arise in the cases of skilled labour, craftsmen
and plant drivers.

Having priced the Bill at cost, there will remain a sum to be spread over the Bill items. The way in which this is
done depends on the view taken by the Contractor of the project; for example:

＋ sums can be put against the listed general items in the Preliminaries Bill.
＋ a fixed 'Adjustment Item' can be included in the Bill for the convenience of the estimator. This can be used
for the adjustment made following the Management Appraisal, and for taking advantage of any late but
favourable quotations received from subcontractors or suppliers.
＋ the balance can be spread over the rates by equal percentage on all items, or by unequal percentages to assist
in financing the contract or to take advantage of possible contract variations, or expected quantity changes.

The Contractor will normally assess the financial advantages to be gained from submitting his bid in this manner
and possibly enabling him to submit a more competitive offer.

After completing the pricing of all aspects of the tender, the total costs are summarized and profit, risk, etc., added
to arrive at the total value of the Tender.

Finally, reasonable forecasts of cash flow and finance requirements are essential for the successful result of the
project. Preliminary assessments may have been made for the information of management, but contract cash flow
and the amount of investment required to finance the work can now be estimated by plotting income against
expenditure using the programme of work and the priced Bill of Quantities. Payment in arrears and retentions,
both from the Employer and to the suppliers and subcontractors, must be taken into account.

It is unlikely that sufficient time will be available during the tender period to produce such information accurately,
but an approximate figure, for use as a guide for finance requirements, can be assessed.

A worked example is set out in Part 2: Oncosts and Profit.

9. MANAGEMENT APPRAISAL
Clearly, as far as the detail of the tender build-up is concerned, management must rely upon its established ten-
dering procedures and upon the experience and skill of its estimators. However the comprehensive review of
tenders prior to submission is an onerous duty and the estimator should look upon the process as an opportunity
to demonstrate his skill. The Management Appraisal will include a review of:

＋ the major quantities.

＋ the programme and method statement.
＋ plant usage.
16 Outline of the Tendering and Estimating Process

＋ major suppliers and/or subcontractors, and discounts.

＋ the nature of the competition.
＋ risk and opportunity.
＋ contract conditions, including in particular the level of damages for late completion, the minimum amount of
certificates, retention and bonding requirements.
＋ cash flow and finance.
＋ margin for head office overheads and profit.
＋ the weighting and spreading of the cost estimate over the measured items in the Bill.

10. SUBMISSION OF TENDER

On completion of the tender, the documents are read over, comp checked and then despatched to the employer in
accordance with the conditions set down in the invitation letter.

A complete copy of the tender as submitted should be retained by the contractor. Drawings on which the offer has
been based should be clearly marked 'Tender Copy', their numbers recorded and the drawings filed for future
reference. These documents will then form the basis for price variations should the design be amended during the
currency of the contract.

The contractor may wish to qualify his offer to clarify the basis of his price. Normally such qualifications are
included in a letter accompanying the tender. Legally the Form of Tender constitutes the offer and it is important
that reference to such a letter is made on the Form of Tender to ensure that it forms part of the offer. Wording
such as 'and our letter dated..., reference...' should be added prior to quoting the Tender Sum.

Before any qualifications are quoted, careful note must be taken of the 'instructions to tenderers', as qualifications,
or at least qualifications submitted without a conforming tender, may be forbidden.
 Research & Development (R&D)
Tax Relief

Introduction
Research and Development (R&D) tax relief, or credit, is a Corporation Tax benefit that can either reduce a
company’s tax bill or, in some circumstances, provide a cash sum. It is based on the company’s expenditure on R&D.
R&D tax relief/credits are aimed at encouraging expenditure by companies on innovative activities that advance
the overall knowledge or capability in the fields of science and technology. The tax credits consist of additional tax
relief beyond the amount of the expenditure incurred on qualifying R&D activities and are given against Corporation
Tax. In some situations, where the company is making losses, the tax credits can be surrendered for a cash payment.

For there to be R&D for the purpose of the tax relief, a company must be undertaking activity as part of a specific
project that seeks to make an advance in science or technology. It is necessary to be able to state what the
intended advance is, and to show how, through the resolution of scientific or technological uncertainty, the activity
seeks to achieve this.

HMRC has confirmed that qualifying activities include those typically undertaken in the construction and property
sector, such as engineering design and developing new construction techniques.

Definition of R&D for Tax Purposes

The primary legislation is contained in Part 13 of the Corporation Tax Act 2009 (CTA 2009) and covers two
separate schemes:

R&D expenditure credits (s.1040 A), commonly referred to as RDEC and is available to large companies.
Additional tax relief for small or medium sized enterprises (s.1044), commonly referred to as the SME
scheme.

R&D is defined in section 1138 of the Corporation Tax Act 2010 as ‘activities that fall to be treated as research
and development in accordance with generally accepted accounting practice.’ This is subject to regulations made
by HM Treasury on the definition of R&D, which refer to the detailed guidelines published by the Secretary of
State for Business, Energy and Industrial Strategy (BEIS). The BEIS guidelines define R&D for the purpose of
obtaining relief as follows:

＋ R&D for tax purposes takes place when a project seeks to achieve an advance in science or technology.
The activities which directly contribute to achieving this advance in science or technology through the
resolution of scientific or technological uncertainty are R&D. Certain qualifying indirect activities related to
the project are also R&D. Activities other than qualifying indirect activities which do not directly contribute
to the resolution of the project’s scientific or technological uncertainty are not R&D.

Guidance is provided by HM Revenue & Customs (HMRC) on what constitutes R&D for the purposes of the tax
relief and can be found within the Corporate Intangibles R&D Manual at CIRD81900. The work that qualifies for
R&D tax relief must be part of a specific project to make an advance in science or technology. It cannot be an
advance within arts, humanities, a social science such as economics or a theoretical field such as pure maths.
The project must relate to the company’s trade.
18 Research & Development Tax Relief

Advance in Science or Technology

An advance in science or technology means an advance in overall knowledge or capability in a field of science or
technology (not a company’s own state of knowledge or capability alone). This includes the adaptation of knowl-
edge or capability from another field of science or technology in order to make such an advance where this
adaptation was not readily deducible. A process, material, device, product, service, or source of knowledge does
not become an advance in science or technology simply because science or technology is used in its creation.

A project which seeks to either,

＋ Extend overall knowledge or capability in a field of science or technology; or

＋ Create a process, material, device, product, or service which incorporates or represents an increase in
overall knowledge or capability in a field of science or technology; or
＋ Make an appreciable improvement (for example, changing or adapting the scientific or technological char-
acteristics of something to the point where it is ‘better’ than the original and beyond minor or routine
upgrading) to an existing process, material, device, product, or service through scientific or technological
changes; or
＋ Use science or technology to duplicate the effect of an existing process, material, device, product, or service
in a new or appreciably improved way (for example, a product which has exactly the same performance
characteristics as existing models, but is built in a fundamentally different manner) will therefore be R&D.

Even if the advance in science or technology sought by a project is not achieved or not fully realised, R&D still
takes place and the project could qualify for relief. Moreover, if a particular advance in science or technology has
already been made or attempted but details are not readily available (for example, if it is a trade secret), work to
achieve such an advance can still be an advance in science or technology.

Scientific or Technological Uncertainty

Scientific or technological uncertainty exists when knowledge of whether something is scientifically possible or
technologically feasible, or how to achieve it in practice, is not readily available or deducible by a competent
professional (an individual who is knowledgeable about the relevant scientific and technological principles involved,
aware of the current state of knowledge and has accumulated experience) working in the field. This includes
system uncertainty, or a scientific or technological uncertainty that results from the complexity of a system rather
than uncertainty about how its individual components behave. Scientific or technological uncertainty will often arise
from turning something that has already been established as scientifically feasible into a cost-effective, reliable,
and reproducible process, material, device, product, or service.

Uncertainties that can readily be resolved by a competent professional working in the field are not scientific or
technological uncertainties. Similarly, improvements, optimizations and fine-tuning which do not materially affect
the underlying science or technology do not constitute work to resolve scientific or technological uncertainty.

Qualifying Indirect Activity

These are activities which form part of a project but do not directly contribute to the resolution of the scientific or
technological uncertainty.

This includes the following:

＋ Scientific and technical information services, insofar as they are conducted for the purpose of R&D support
(such as the preparation of the original report of R&D findings)
＋ Indirect supporting activities such as maintenance, security, administration and clerical activities, and
finance and personnel activities, insofar as undertaken for R&D
＋ Ancillary activities essential to the undertaking of R&D (for example, taking on and paying staff, leasing
laboratories, and maintaining R&D equipment including computers used for R&D purposes)
＋ Training required to directly support an R&D project
＋ Research by students and researchers carried out at universities
 Research & Development Tax Relief 19

＋ Research (including related data collection) to devise new scientific or technological testing, survey, or
sampling methods, where this research is not R&D in its own right and
＋ Feasibility studies to inform the strategic direction of a specific R&D activity

Start and End of R&D for Tax Purposes

R&D begins when work to resolve the scientific or technological uncertainty starts and ends when that uncertainty
is resolved or work to resolve it ceases. For example, R&D could end once a working prototype or a material,
device, product, or process is ready for testing, production or if the project does not continue. However, R&D can
take place even after production starts. For example, if any new problems arise involving scientific or technological
uncertainty after the product has been put into production or into use, then the R&D process may start again.

Types of R&D Tax Relief

There are different types of R&D relief, depending on the size of a company and if the project has been
subcontracted to the company or not.

The two principal tax reliefs available to companies undertaking R&D in the UK are as follows:

＋ SME R&D Tax Relief.

＋ Research and Development Expenditure Credit (RDEC).

SME R&D Tax Relief

An SME for R&D tax relief purposes is a company or organization with less than 500 staff and either of the
following:

＋ Annual turnover not exceeding £100 million.

＋ Balance sheet not exceeding £86 million.

A company may need to take into account its own data, a proportion of a partner enterprise’s data or the data of a
linked enterprise. A company may not be considered an SME if it is part of a larger enterprise that would fail these
tests if taken as a whole.

SME R&D Tax relief allows companies to:

＋ Deduct an extra 130% of their qualifying costs from their yearly profit, as well as the normal 100% deduc-
tion, to make a total 230% deduction. For profit making SMEs, R&D tax credits reduce the Corporation Tax
bill and businesses can receive up to £24.70 for every £100 spent on qualifying R&D activities.
＋ Claim a tax credit if the company is loss making, worth up to 14.5% of the surrenderable loss. Loss-making
SMEs can receive up to £33.35 for every £100 spent on qualifying R&D activities.

A company can only claim R&D tax relief as an SME if the company is a going concern and not in administration
or liquidation when making the claim.

In some circumstances, an SME company may be allowed to claim only the RDEC in respect of particular
expenditure (for example, for work subcontracted to it or that is otherwise subsidized due to a grant or subsidy).
The SME scheme is a notifiable State Aid, and a company can’t get the SME tax relief if it is receiving any other
notifiable State Aids for the same R&D project. If an SME company has received a grant which is notifiable State
Aid, for an R&D project, it cannot claim R&D tax relief under the SME scheme, but eligible expenditure will qualify
under the RDEC scheme.

The UK government has recently announced that SME R&D tax credit claims will be subject to a cap in order to
deter abuse of the scheme. This measure limits the amount of payable R&D tax credit which an SME can claim to
£20,000 plus 300% of its total Pay-As-You-Earn (PAYE) and National Insurance contributions (NICs) liability for
the period. The measure will have effect for accounting periods beginning on or after 1 April 2021.
20 Research & Development Tax Relief

The measure amends CTA 2009 Part 13 Chapter 2. It adds a new condition at section 1058 (which sets the
amount of payable tax credit) limiting the amount that can be claimed to the level of the new cap, which is defined
as £20,000 plus three times the company’s relevant expenditure on workers.

A company is however exempt from the cap if:

＋ Its employees are creating, preparing to create or managing Intellectual Property (IP), and
＋ It does not spend more than 15% of its qualifying R&D expenditure on subcontracting R&D to, or the
provision of externally provided workers by, connected persons.

RDEC
Large companies (a company which does not meet the SME test for R&D tax relief purposes) can claim RDEC for
working on R&D projects. It can also be claimed by SMEs who have been subcontracted to do R&D work by a
large company or who have received a grant or subsidy for their R&D project.

The RDEC is an ‘above the line’ tax credit equal to 13% of qualifying R&D costs. RDEC is a taxable credit. This
means that large companies receive up to £10.53 for every £100 spent on qualifying R&D activities. For profit
making companies, the credit discharges the Corporation Tax liability that the company would have to pay. Com-
panies with no Corporation Tax liability will benefit from the RDEC either through a cash payment or a reduction of
tax or other duties due. Companies in groups can also surrender the RDEC against another group companies’
Corporation Tax liability.

Categories of Qualifying Expenditure

＋ Staffing costs – This includes salaries, wages, Class 1 NICs, pension fund contributions and certain reim-
bursed expenses for staff directly and actively engaged in the R&D project. Support staff costs, for example
administrative or clerical staff, do not qualify, except when they relate to qualifying indirect activities. These
can be activities like maintenance, clerical, administrative and security work.
＋ Externally provided workers – These are the staff costs paid to an external agency for staff who are directly
and actively engaged in the R&D project. These are not employees and subcontractors. Relief is usually
given on 65% of the payments made to the staff provider. Special rules apply if the company and staff
provider are connected or elect to be connected.
＋ Consumable items
o Cost of items that are directly employed and consumed in qualifying R&D projects. These include
materials and the proportion of water, fuel and power of any kind consumed in the R&D process.
o From 1 April 2015, the costs of materials incorporated in products that are sold are not eligible for
relief.
o Where a prototype is created to test the R&D being undertaken, the design, construction and testing
costs will normally be qualifying expenses. However, if the prototype is also built with a view to
selling the prototype itself (for example, the construction of a bespoke machine), HMRC considers
that to be production and outside the R&D scheme, even if R&D was undertaken to create the
prototype. In this case, the R&D expenditure and production costs will need to be split. For example,
the construction costs and materials consumed would not be qualifying expenses, but design, model-
ling and testing costs could still qualify for R&D tax relief.
＋ Software – A company may claim for the cost of software that is directly employed in the R&D activity.
Where software is only partly employed in direct R&D, an appropriate apportionment should be made.
＋ Subcontracted expenditure
o SME Scheme: A company can generally claim for 65% of the payments made to unconnected par-
ties. The subcontracted work may be further subcontracted to any third party. Special rules apply
where the parties are connected or elect to be connected. Under the SME Scheme, the sub-
contractor does not need to be a UK resident and there is no requirement for the subcontracted
R&D to be performed in the UK.
o RDEC Scheme: R&D expenditure subcontracted to other persons is generally not allowable unless
it is directly undertaken by a charity, higher education institute, scientific research organization,
health service body, or by an individual or a partnership of individuals.
 Research & Development Tax Relief 21

Qualifying expenditure must be allowable as a deduction in calculating the profits of the trade. Capital expenditure
is therefore excluded; it may however qualify for R&D allowances.

Costs that Cannot be Claimed for R&D Tax Relief

Companies cannot receive R&D tax relief for the following:

＋ The production and distribution of goods and services.

＋ Capital expenditure under either the SME tax relief or RDEC scheme. However, a 100% Research and
Development Allowance may be due on capital assets, such as plant, machinery and buildings used for
R&D activity.
＋ The cost of land.
＋ Cost of patents and trademarks.
＋ Rent or rates.

Examples of Qualifying R&D Activities in the Construction Industry

Design

＋ Integrating new or improved technology into buildings.

＋ Redesigning to improve performance, reliability, quality, safety and life-cycle costs.
＋ Designing prefabricated components for off-site assembly of large and complex systems.
＋ Developing innovative sustainable solutions to achieve net zero carbon.
＋ Developing advanced Buildings Information Management (BIM) capabilities.

On site

＋ Solving technical problems that arise during or after construction.

＋ Developing new techniques to remove contaminants and remediate difficult ground conditions.
＋ Complex diversions of utilities such as gas, water and electricity.
＋ Developing new, more efficient construction techniques.
＋ Developing bespoke temporary solutions on challenging sites.

Research and Development Allowances

Research and Development Allowance (RDA) gives relief for capital expenditure incurred on R&D by a business.
RDA is only due if the research and development expenditure is related to the trade being carried on or about to
be carried on. Qualifying RDA expenditure is capital expenditure that a business incurs for providing facilities for
carrying out R&D, for example, a laboratory in which to carry on R&D. RDA is only available to traders and is not
available to a person carrying on a profession or vocation. The rate of RDA is 100% of the qualifying expenditure.
However, if a disposal value is brought into account on expenditure in a chargeable period in which an RDA is
made, the RDA is 100% of the expenditure less the disposal value. RDA is made in the chargeable period in
which the qualifying expenditure was incurred unless it was incurred before the trade began, in which case RDA is
made in the chargeable period in which trade began.

How to Claim R&D Tax Relief from HMRC

A company can make a claim for R&D tax relief up to two years after the end of the accounting period it relates to.
To make a claim, a company must enter their total qualifying expenditure on the full Company Tax Return form,
CT600, to HMRC. If claiming under the SME scheme, a company enters the enhanced expenditure figure into the
CT600, and the payable tax credit figure if applicable. If claiming under the RDEC scheme, a company must enter
both the total qualifying expenditure and RDEC figures into the CT600. After submitting their full CT600 form, a
claimant company can use the HMRC online service to support their R&D tax relief claim and send any additional
details, as required.
ESSENTIAL READING FROM TAYLOR AND FRANCIS

Design of Integrally-Attached
Timber Plate Structures

By Yves Weinand

Design of Integrally-Attached Timber Plate Structures outlines a new design methodology for
digitally fabricated spatial timber plate structures, presented with examples from recent
construction projects. It proposes an innovative and sustainable design methodology,
algorithmic geometry processing, structural optimization, and digital fabrication, and
technology transfer and construction are formulated and widely discussed.

The methodology relies on integral mechanical attachment whereby the connection between
timber plates is established solely through geometric manipulation, without additional
connectors such as nails, screws, dowels, adhesives, or welding. The trans-disciplinary design
framework for spatial timber plate structures brings together digital architecture, computer
science, and structural engineering, covering parametric modeling and architectural
computational design, geometry exploration, the digital fabrication assembly of engineered
timber panels, numerical simulations, mechanical characterization, design optimization, and
performance improvement.

The method is demonstrated through different prototypes, physical models, and three build
examples, focusing specifically on the design of the timber-plate roof structure of 23 large
span arches called ANNEN Headquarters in Luxembourg. This is useful for the Architecture,
Engineering and Construction (AEC) sector and shows how new structural optimization
processes can be reinvented through geometrical adaptions to control global and local
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Another random document with
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 Once or twice during the night Terence awoke and sat up, listening to the
extraordinary clamour of wind and rain, in which, it seemed to him, a
multitude of tongues spoke softly, and the faint pad-pad of naked feet made
itself manifest. But the noise of the elements confused him, and it was not
until breakfast-time next morning that he mentioned his fancies to George,
who looked uncommonly grave as he listened.

'Let us go and find out if anything did happen,' he suggested as they rose
from their meal; for he was oppressed by an uncomfortable feeling that
trouble was in store for them. His presentiment presently grew stronger, for,
as they walked towards the marae, or open courtyard of the pah, the unusual
quiet of the long lanes surprised them, for the inhabitants were early astir as
a rule.

The court itself was deserted, save for two old men, who sat upon a seat
opposite to the open gates. George looked down upon the plain, where a
company of women and children could be seen returning from the bush
across the river. In anxious haste he turned to one of the old men.

'Where is everybody, O my father?' he inquired. 'Where is Te Karearea?'

The old Maori shook his head and showed his toothless gums. 'Nay; he is
not here, Hortoni. He is gone to fight the Pakeha.'

'Gone to fight the Pakeha!' echoed George. He looked down again. A

band of armed Maoris had issued from the bush and were crossing the river
bridge. 'Is that the Hawk returning?' he asked. 'Wake up, old man!' He gently
shook the ancient. 'Is it the Hawk who flies hither?'

The old fellow blinked drowsily in the warm sun. 'Nay; Te Karearea is
gone to drive the Pakeha into Moana. Who knows when he will return? Let
me slumber, Hortoni.'

George wheeled round upon Terence. 'The crafty rascal!' he cried

wrathfully. 'I see it all now. It was the noise of his departure that you heard in
the night, Terence. Well might he scheme that we should bind ourselves fast
with our own words. Oh, if you had but woke me! But now we have
promised, and——' He shook his fist in the direction of the bush. 'Terence,
we have been properly fooled. We are caught in a trap of our own making.'

'A parole extorted by such a piece of treachery can hardly be considered

binding,' objected Terence.

'Oh, we will keep our word, if only to shame him, if that were possible.
But let the subtle Hawk look out for himself when we do take back our
parole.'

'And may I be there to see,' finished Terence, taking his friend's arm. 'Let
us go to meet those people and learn the news.'

CHAPTER XVIII

PAEROA AT LAST

As the comrades encountered the returning warriors, who had been left as
a garrison, their leader, a young chief named Rolling Thunder, called out:
'Salutations, Hortoni! The Pakeha Eagle takes an early flight; but he is too
late to catch the Hawk, who has gone to flesh his beak and talons.'

'He will meet with a few more eagles who will make small account of his
beak and talons,' answered George grimly. 'When does he wing his way back
to his eyrie? I mean, if he ever gets the chance.'

'Not until he has scattered the fragments of the last Pakeha to the four
winds,' replied Rolling Thunder proudly, and marched off in high dudgeon at
their shouts of derisive laughter.

Just then Terence caught sight of a solitary figure disappearing into the
bush. He recognised the man as a tutua, or common fellow, named Sounding
Sea, one of the meanest and least considered Maoris in the pah, whose sly
face, destitute of scars, showed him either a coward, or singularly to have
lacked opportunity to gain the right to heraldic distinctions. Just then,
however, there was nothing out of the way in the fellow's behaviour, so
Terence thought no more about him.

'It is still very early, and I vote for exploration,' he said to George. Then
he drummed idly on the rail of the bridge, gazed down into the rushing
stream and sighed. Presently he looked up at his friend and smiled rather
wistfully. 'I was thinking. Bad habit; isn't it, old fellow? Come; make up
your mind what to do.'

'Exploration be it,' agreed George. 'Let us look for the hole into which
you so gallantly dived. Like Quintus Curtius, it may yet prove that you took
that plunge for the good of your country.'

He spoke lightly, knowing well what was passing in Terence's mind. By

tacit consent they seldom referred to home or friends, finding the subject too
painful. Terence had no near relations except his mother's sister, to whom he
was devoted; but his affection for the Haughton circle was almost as deep as
that of George, and the peppery colonel and his fine little brother-in-law held
a very warm place in his heart. Many a silent prayer went up for their own
preservation and for those they loved; for these two were brave and loyal
lads, who had not learned to forget God, and were not ashamed to show that
they maintained their trust in Him.

They easily found the hill upon which the Hau-hau rites had been
celebrated, but though they over and over again made it their base of
operations, failure met them at each attempt to discover the entrance to the
underground world.

'We shall never find it,' said George; 'for even in this short time the
undergrowth has covered the mouth of the hole. We must try from the other
end; but if we lose ourselves——'

'We can't—with this,' interposed Terence, holding up a small, but perfect

compass, made by one of England's foremost opticians. 'I stole this from the
stealers, who were examining the contents of a looted saddle-bag. The
compass had fallen to the ground unnoticed, and, as my feet are adapted to
cover much bigger things, I calmly stood over it until I got a chance to annex
it.'

'Your petty larceny is condoned by the court,' laughed George. 'I wish you
could put your foot upon a couple of good revolvers.'

'Don't move,' Terence said quickly. 'Look to your right—three or four

hundred yards away—without appearing to do so. There is a Maori watching
us.'

George looked and laughed again. Apparently there were half a dozen
Maoris, squatting upon the ground at irregular intervals, their long spears
held erect, their mats hanging down so as to conceal their bodies.

'You are looking at a row of grass-trees,' George explained. 'You are not
the first to mistake a grass-tree at a distance for a squatting native.'

'I did not say they were Maoris,' Terence replied coolly. 'There were six
grass-trees when I first noticed them, and now there appear to be seven. Aha!
Look, George. Number seven is crawling off. It is our friend Sounding Sea,
who has been spying on us. I saw him dodging into the bush this morning,
and now that I am sure of his game, I may tell you that I have suspected him
for a week past.'

'What keen eyes you have to pick the fellow out,' said George admiringly.
'In certain lights, and at a distance, the illusion of the grass-tree is perfect. It
is as well, perhaps, that we failed to find the hole, since that rascal is on our
track.'

'Well, we know where we stand now,' observed Terence, 'and the gay
Sounding Sea will find that two can play the game of spying. We will look
for Paeroa to-morrow in spite of him.'

Late next night the friends crept out of their whare, which stood near the
back of the stockade, and searched for four hours in the underground world;
but they found no trace of the missing trio.

'We must get back before dawn,' said George; 'for Sounding Sea may take
it into his head to pay us an earlier visit than usual. I don't think that Paeroa
is hidden down here. The existence of the place is known only to the
privileged few, so there would be no occasion to confine him far from the
entrance.'

'Besides, I fancy that both the chief and the wizard would fight shy of the
spot after their uncanny experience.' Terence chuckled at the recollection.
'Yes; come on. We can't afford to take risks.'

Thrice they unsuccessfully explored the underground reaches during the

next fortnight; twice they tried, and failed, to find the forest opening; and
then, suddenly, the face of the situation began to alter.

It was now three weeks since Te Karearea had set out for the front, and
sick or wounded Maoris were constantly filtering into the pah, one and all
with the same story to tell—the continued success of the chief, and the
impending annihilation of the detested Pakeha. The worst news they brought
was that of the death of old Kapua Mangu, who had been shot while
weaving a spell for the destruction of the Arawas. His head had been brought
back to the pah, and was now in the hands of the gentleman whose business
it was to preserve the grisly relic.

One night George entered their hut in a state of great agitation. His face
was pale and his eyes glittered; but for some time he sat silent, while Terence
watched him anxiously.

'Anything wrong, old fellow?' he inquired at last.

'Wrong! wrong! Ay; it is all wrong together,' burst out George. 'A devil is
loose upon the earth, and his name is Te Karearea. He—he——' His voice
faltered, and he stopped for a moment. Then, ominously calm all at once, he
resumed: 'News has come that Te Karearea and a company of his Hau-haus
stole upon the settlement at Poverty Bay at night and massacred—there's no
other word for it, for the poor people were quite unprepared—thirty-three
people. And, Terence'—he covered his eyes with his hand—'there were
women and little children among them. Your friend Major Biggs was killed,
and——' He could say no more.
 For a time the two sat without further speech. They felt sick with horror;
for the picture of those helpless, anguished mothers and their babes would
obtrude itself. But at last George sprang up and shook his great shoulders, as
if throwing off some fearful oppression.

'Terence,' he said quietly, 'till now, in spite of what I knew him to be

capable of, I have had a sneaking sympathy with this ruffian, with his
misfortunes, with his aspirations. I knew that his point of view must be
different from ours. I was inclined to make allowances. But now—now——'

'I know,' Terence said in a low voice. 'It is—it is those babies.'

George's strong teeth seemed to snap together. 'Yes; and he shall answer
for them to me.' Then he went out into the night.

Next day, as they were sitting in the marae, a wounded Maori came up
and said, grinning: 'Pokeke fights at the side of Te Karearea, and he
constantly mutters "The great axe of Heora." He bade me tell you this,
Hortoni.'

George laughed contemptuously. 'This Heora is, I believe, one of their

mythical heroes,' he explained to Terence. 'When a Maori frequently repeats
the words "The great axe of Heora," he means that he is keeping his mind
fast set upon revenge. Well, this settles the locality of one of our trio.'

'Yes; and it shows the value of any statement made by Te Karearea,' put
in Terence. 'Now I have a piece of news,' he went on. 'I have discovered
something very queer about Sounding Sea.'

'What is it?' George asked, interested at once.

'About the same time every night he sneaks past our hut—his own is
almost opposite—towards the back of the pah. I followed him last night, and
he climbed the fence and dropped down on the narrow ledge between the
palisades and the edge of the precipice.'

'Go on,' urged George.

 'I was close behind him; yet, when I looked over, he had disappeared. The
ledge runs about fifteen feet on each side of the point where he scaled the
fence, which touches the edge of the cliff at the angles. So, as he could not
have gone round, he must have gone over.'

'And what are you going to do?'

'We will both follow him to-night after his visit.'

Under pretence that he had been detailed by Te Karearea to see to their

comfort, Sounding Sea came to their hut at bed-time every night. This night
was no exception, for his sly face peered round the door, and he inquired,
humbly enough, if the Pakeha lords desired his services.

To throw him off his guard, George ordered him to bring a basket of food,
as they proposed to go for an early ramble in the bush on the morrow. When
the Maori returned with this, the friends were snoring on their mats; so he
placed it in a corner and withdrew, satisfied.

Five minutes later Terence stole across to Sounding Sea's whare, and
returned almost immediately. 'There,' he said, with a gleeful chuckle, and
thrust a revolver and a handful of cartridges upon his astonished friend.

'Kapua Mangu's mantle must have fallen on you, you magician,' cried
George, overjoyed. 'Where—how——?'

'It occurred to me that Sounding Sea, not being very courageous, would
have made provision for defending himself in case of a row with us,'
explained Terence; 'so I went to see. The fellow has a regular arsenal there. I
have brought away three revolvers and any number of cartridges.' He hid one
of them under his mat, along with a reserve of ammunition. Then, having
loaded their weapons, the friends stole out on the track of the spy.

In a few minutes they stood upon the three-foot ledge outside the pah,
where a pale, watery moon gave them light enough to see what they were
about. And this was as well; for movement, at the best, was dangerous, and a
slip might have been fatal.
 'I thought as much,' exclaimed Terence, after poking about in the grass.
'This explains our gentleman's nocturnal trips, and I shouldn't wonder if we
were on the track of Paeroa.'

Lying on their faces, peering into the awful depths of the cañon, they
could see a strong flax ladder, securely fastened to a couple of stout pegs,
driven into the ground between them. By means of a gentle tug they
ascertained that the lower end of the ladder was free, and, before George
could anticipate him, Terence swung himself over.

'I'll jerk three times when I reach the bottom,' he said. 'Steady the thing
for me.'

Presently the signal came, and George joined his friend, who was
standing upon a narrow ledge about fifty feet below. 'Here we are,' said
Terence in greeting. 'This ledge runs in both directions. Ah, this is the way.
Look.'

A tangle of creepers, recently disturbed, guided them, and they moved

cautiously along the ledge, which sloped very gradually downwards, until
they stood some twenty feet above the river, in full view of a fine waterfall.
Thereafter was nothing but sheer cliff to the broken water below. Then while
they looked about, puzzled, Terence suddenly dragged George down behind
a shrub, and they saw a wondrous sight.

From out of the waterfall itself, right through the veil of falling water,
came Sounding Sea, shaking himself like a dog after a plunge. He climbed
upon the ledge, took a step or two upon the back track, and then, with a
gesture of annoyance, turned again and walked out of sight through, or
under, the fall.

'He has forgotten something,' said Terence. 'After him!'

Careless of risk, they passed the falling curtain and hurried on the track of
Sounding Sea, who was moving slowly through a natural tunnel, the mouth
of which gaped blackly at his pursuers. Had the Maori not lit a torch the
comrades could have done nothing but await his return.
 Suddenly Terence swung back an arm and barred George's advance, for
the tunnel took a turn, widening into a cave. Peering round the angle, they
saw Sounding Sea, his torch set down, searching for something he appeared
to have dropped.
 The tunnel took a turn, widening into a cave (page 194).

But there was something else. Something which brought George's teeth
together with a click, and caused Terence to clench his fists.
 Stretched upon a mat, his wrists and ankles bound, and further secured by
a rope round his middle, which was attached to an iron bar let into the floor
of the cave, lay Paeroa, while a few feet from him was Kawainga, much in
the same case, save that her feet were free.

Even in that light it could be seen that the unhappy pair looked miserably
weak and ill, though scraps of food and a bowl of water showed that
starvation had not been added to their other tortures.

Terence felt the arm he held quivering in his grip. Indeed, George
restrained himself with difficulty; for the sight of the poor sufferers set his
blood aflame, and another black mark was added to the long tally against Te
Karearea.

Just then Sounding Sea spoke. 'Where is my mere, O Paeroa? It was in

my belt when I fed you.' He made a dive and drew a wooden mere from the
folds of the scanty mat upon which Paeroa lay. 'Pig!' he vociferated. 'Would
you steal my club? Were it not that Te Karearea ordered me to keep you
alive, I would dash out your traitor's brains. As it is—take this!'

He raised his heavy, sharp-angled club, dwelling upon his aim for the
downstroke, which would have smashed the shoulder-girdle and left the arm
useless for all time, when with a low growl of rage George leaped across the
intervening space and flung himself upon the cowardly ruffian.

CHAPTER XIX

PAEROA'S VENGEANCE

So utterly unexpected was the attack, that Sounding Sea went down with
a yell of terror; but, quickly recognising his adversary, he began to wriggle
and twist, clawing and spitting like an angry cat. But he could do nothing
against such a stalwart as George, and Terence, confident of this, busied
himself in cutting the bonds of the captives and gently chafing their swollen
joints, while he smiled into their wan faces, and spoke hopefully in a
language they did not understand of the good time coming for them.

But hope is translatable into any tongue, and, as Terence chatted on, the
dull eyes brightened and a responsive grin overspread Paeroa's drawn face,
while Kawainga's lips quivered, and she burst into happy, soothing tears.

This was too much for Terence. His alluring smile vanished, and he rose
and solemnly punched the head of Sounding Sea. 'I don't often hit a man
when he is down,' he remarked, returning to his patients; 'but you deserve a
taste of your own sauce.'

'Quite right,' agreed George. 'Wait here, Terence, while I get my flask.
When I return, we can settle what to do.'

He was back in a very short time, and the flask, which he had not opened
since he left Sydney, came in usefully now; for the strong spirit, dashed with
water, soon restored Paeroa and Kawainga, who sat up and began to talk.

'I did what I could, Hortoni,' Paeroa said sadly. 'Had you met me by the
fork that day all would have been well. As it is, I have still one word of the
white-haired chief to you. Te Karearea took the other. Here it is.'

Like all the Hau-haus, he wore his hair long, and now he pulled from the
tangled locks a soiled piece of paper, which he held out to George, who took
it and read aloud:

'We ar~ on your t~ack. Try ~~~~~~scape ~nd meet us. Y~~rs—M.
Cra~sto~n.'

Here and there the pencilled letters were obliterated; but the meaning was
clear enough. The question was—had Te Karearea driven back, or
annihilated the relief force? And this, of course, Paeroa could not tell.

'I wonder what was in the note which Te Karearea took,' said George.

'Paeroa has made a mistake,' commented Terence. 'Colonel Cranstoun is

not white-haired, unless he has changed since I saw him.'
 'Well, there is no use worrying over a mistake,' said George.

'Oh, of course not,' agreed Terence, looking curiously at his friend. He

had his own idea as to the identity of the writer of the missing note, and
thought that George's ignorance was bliss, in so far as it saved him from
much anxiety.

Briefly, Paeroa's story was that, on the march to rejoin the main body, he
had stolen away at the risk of his life, worked round to the rear of the Arawa
contingent, and presented himself at the British camp, where he found
Colonel Cranstoun and others, to whom he told the story of George's
adventures as far as he knew them. He was ignorant of the capture of
Terence, so he could not remove the impression which existed that the
Irishman had been killed while endeavouring to deliver Captain Westrupp's
note. Promising to do all he could for George, Paeroa departed with two
short letters in his care. He failed, as we know, to communicate with George
on the day of the fight with the Arawas; but, just before the skirmish, while
plotting with Kawainga to deliver the letters unobserved, the two were
suddenly overpowered by a strong guard of Hau-haus, and conveyed to the
pah. There they were kept in close confinement, and eventually transferred
to the cave under the waterfall, Sounding Sea being appointed their gaoler.
The mean and vicious Hau-hau had amplified the chief's instructions, and
gratified his own malevolent nature by inflicting upon the prisoners as many
hardships as he dared, short of actually murdering them, so that their
existence since the departure of Te Karearea had been wretched indeed.

'What is to be done now?' queried George, when Paeroa's story had come
to an end.

Terence drew his revolver and turned to face Sounding Sea. 'Let him
know, George,' he said grimly, 'that, unless he tells the whole truth, there will
be a new arrival in Reinga within a minute.'

'Stop!' shrieked Sounding Sea in English. 'I will tell all. I was to keep
these two here until Te Karearea's return. I have cared for them and fed
them. Mercy, great lords!'
 'We shall soon find out whether he has told the truth,' said George
gravely. 'We must leave him here, of course—and you two must also be
content to wait here a little longer.'

Paeroa stood up shakily, endeavouring to throw out his chest. 'Hope is a

good medicine,' he said bravely. 'By the time Hortoni needs my arm it will
be strong enough to strike a blow for him.'

As he spoke, Kawainga uttered a weak, wailing cry. George and Terence

wheeled, but Paeroa, his hollow eyes gleaming, staggered past them, and
hurled his wasted body full atop of Sounding Sea.

Unperceived by the men, the villain had wormed his way close to
Kawainga, intending to finish her with one stroke of his club; but the girl's
scream spoiled the murderous ruffian's scheme.

Sounding Sea, never a strong man, had grown weak and flabby in
consequence of his idle, dissolute life; but, nevertheless, Paeroa had his work
cut out for him, and the Englishmen, though anxious to let him have the
credit of saving his sweetheart's life, were prepared to interfere should the
contest go against him. They thought, of course, that Paeroa meant simply to
secure the fellow, and hold him while they adjusted the slipped ropes.

But Paeroa had no such intention. Wrought up to a pitch of fury at the

recollection of his wrongs at this coward's hands, and mad with rage at the
attempt upon the life of his betrothed, his strength was unnatural. For one
instant he came uppermost in the struggle; but it was enough. Glaring wildly
about him, he saw and scooped the wooden club from the ground, and,
without waiting to fasten his grip upon the handle, brought the triangular
edge smashing down upon the upturned face of Sounding Sea. The force of
the blow spent itself upon the temple, and with a deep groan the Hau-hau fell
back, killed outright by that terrible stroke.

'Ha!' Paeroa gasped, floundering to his feet and shaking the bloodstained
club. 'Ha! I have slain a taipo. The strength of ATUA was in me.' Then he
lurched forward like a drunken man, and crashed down at Kawainga's feet.
 Horrified, George and Terence gazed at the swift, awful scene. It is no
light matter to see a man slain before your eyes. Moved by a common
impulse, they reverently lifted the dead man and carried him to one side,
while Kawainga fussed and crooned over Paeroa.

'If any one is aware of his visits here, and knows that he was employed to
watch us——' began George; but Terence struck in:

'We are armed now, and with revolvers, not to speak of your greenstone
club. By the way, why didn't you bring it with you?'

'I did,' answered George, clapping his hand to his side. But the loop in his
belt was empty. The mere was gone.

Startled, George looked about the cave; but nowhere could he find the
club.

'I fear it has dropped into the river as I came down the ladder,' he said.
'Wait here, if you don't mind, Terence, and I will go and see if I have left it in
our hut. No; let me go, for if I meet any one, my knowledge of the language
will get me past him, whereas you might be stopped.'

'Bring back the basket of food with you,' Terence called after him as he
hurried away.

As he rapidly ascended the ladder, George became conscious of an

extraordinary commotion in the pah. Shouts and cries, wailing of teteres,
even gun-shots, disturbed the quiet night, and, wondering what had
happened, he scaled the palisades and sped to his whare.

A glance all round told him that the club was not there, so, snatching up
the basket of food, he was about to set off again, when from the confusion of
sounds in the direction of the marae, one detached itself, clear and high:

'Rongo pai! Rongo pai!' (Good tidings! Good tidings!) 'Salutations, O

Hawk of the Mountain! O Slayer of the Pakeha, hail!'

Without an instant's pause George turned and ran, scaling the stockade,
and dashing down the flax-ladder at perilous speed.
 'Come!' he shouted, when he had gained the entrance to the cave. 'Out of
this for your lives. Te Karearea has returned!'

CHAPTER XX

A BID FOR LIBERTY

'Up with you!' said George, holding the swaying ladder. 'Wait on top till
we join you. What a good thing I had my flask.'

It was. The strong spirit nerved the invalids to the effort they were
obliged to make, and in a few minutes the four of them were standing on the
ledge outside the pah, and by means of the ladder easily scaled the palisades.

The clamour still continued, and George and Terence swiftly piloted their
exhausted friends to the fence behind their hut. Here the ladder came into
play again, and they made for the underground world, George explaining its
peculiarities to Paeroa as they sped along.

'You will be safe enough if you do not wander far from the entrance,' he
assured the Maori. 'We will manage to visit you before long.'

They left the basket of food and the flask with the refugees, and, still
hurrying, for every minute was precious now, reached the shelter of their
whare without encountering any of the Hau-haus.

'Have you found your club?' Terence asked, carefully bestowing

cartridges in his various pockets.

'No,' George answered gloomily. 'I must have dropped it last night
between the fence and the underground world. The strange part of it is that I
should not have missed it till just now.'
 'The thing is always generating mysteries,' grumbled Terence. 'I hope we
shall find it, though; for it may make all the difference between life and
death to us.'

'You are right,' said George, who seemed much upset. 'Of course I do not
agree with you that there is anything supernatural about the club; but still—
but still——'

Terence's eyes grew round. 'You don't agree with me! Why, you old
humbug, when did I say that the thing had any supernatural power?'

'You talked of the English lack of imagination,' George replied stiffly.

Terence laughed. 'The most wonderful thing about that blessed club is
that it has twice brought you and me to the brink of a dispute. I really believe
—— Hullo! Here he is.'

Unheard and unannounced, as usual, Te Karearea had entered. A grim

smile, quickly suppressed, parted his thin lips for an instant, and he bent a
frowning gaze upon George, who, angered out of himself at the loss of his
mere and the memories which the sight of the chief recalled, had sprung to
his feet and was glaring defiantly at the intruder.

'Salutations, friends!' said Te Karearea coldly. 'You did not meet me at the
gate, so I have come to——' He interrupted himself, his furtive eyes
gleaming. 'Where is the mere of TUMATATJENGA, Hortoni? It hangs not at
your side.'

George made no answer; for it was important to ascertain whether the

chief had come straight from the marae, or had already visited the hut and
discovered their absence. Familiar with his friend's lightest change of
expression, Terence knew that the storm was ready to break, and dropped his
hand lightly upon the revolver in his coat pocket, through which he covered
the chief. If treachery were intended, it was as well to be prepared.

'Speak, Hortoni!' Te Karearea's tone was imperative to the point of

insolence. His scarred face looked terrible under his malignant scowl.
 There was a steely glint in George's eyes, and his nostrils quivered; but
his voice was fairly calm as he answered: 'A man may do as he likes with his
own. If I have smashed the mere among the rocks, or thrown it into the river,
what is it to you? You chatter like a parrot, and with as little sense. Leave us.
We wish to sleep.'

But Te Karearea had sense enough, and whatever black design he had in
his mind when he entered the hut, he put it away for the time, until he should
discover the truth about the mere. So, to the surprise of his hearers, instead
of flying into a rage, he grinned genially at them.

'You are right, Hortoni,' he said. 'It is only children who talk when they
are tired, and quarrel till they fall asleep. I, too, am weary and would rest.
Perhaps you will be in a better mind to-morrow, and will show me the mere
of TUMATAUENGA. I will go, since you have nothing to say to me.
Unless, indeed, you wish to renew your parole,' he finished with a sneer.

A sudden, inexplicable impulse swayed George.

'Stay, O Hawk of the Mountain,' he said, and all appearance of anger left
him. 'For a moon past you have kept us here by means of a trick. You caught
us in a trap of our own making. Now shall there be no more tricks, and, lest
you go away again in the night, leaving us fast here, I tell you to your face—
you yourself and none other—we take back our word.'

For once in his life Te Karearea had received a setback. His usual
coolness deserted him, and his ready tongue tripped as he asked if he had
heard aright.

'Does this mean that you will try to escape, Hortoni?' he inquired, when
both George and Terence had repeated their decision. He moved backwards
towards the door as if he feared an immediate attack.

'Why not?' George answered coolly. 'We have told you that we do not
wish to stay here, yet you will not let us go. Now we will go whether you
will allow us or not.'

But Te Karearea had recovered his equanimity. 'When?' he inquired, with

an air of great simplicity.
 George laughed. 'It is enough for you to know that we will go.'

'When the gates of Reinga are shut, why seek to open them, Hortoni?
Take time to think,' suggested the chief.

'It is time to act,' retorted George, and Terence, informed of his friend's
sudden resolution, nodded assent.

Te Karearea was puzzled. Sly and designing himself, he could appreciate

straightforwardness in others; yet he could not believe that his captives
would have taken such a stand unless there was something underlying their
conduct of which he was ignorant. Meantime, confident of his ability to
prevent their escape, he temporised.

'Nevertheless, I give you time for thought, my friends,' he said. Then,

being a superb actor, he stopped on the threshold. 'If you will, I can set my
young men to look for your mere in the morning, Hortoni,' he suggested
graciously.

'Have I said that it was lost?' George countered quickly. 'But, if it were,
did your young men find it when it dragged itself from your hand and flew
into the sea? Have you yet to learn, O Te Karearea, that my God has given
me the mere to stand between me and death?'

Te Karearea was silenced. Muttering a charm, he slid through the door,

which presently was blocked outside. Terence put his ear to the wall and
could hear the shuffling of naked feet, as if a number of men were
dispersing. He turned to his friend.

'If the mere had been in your belt, George, I believe that the chief would
have taken chances and attacked you to gain possession of it. He had a dozen
men outside. But its absence puzzled him. Am I far wrong in saying that,
either by its presence or its absence, the greenstone club is for ever coming
between you and death?'

'Even as I said to Te Karearea,' agreed George. 'Yes; old Te Kaihuia's gift

was nothing short of a providence. What are we to do now? I had no idea of
taking back our parole so suddenly; but something seemed to force me to do
it. You don't object?'
 'I should say not. The sooner we are out of here the better. I didn't like the
look in the Hawk's eyes.'

'I hope we shall be out of it before dawn,' said George. 'When the chief
once realises that the mere is gone, things will happen quickly. You may be
sure it was not simply for the pleasure of greeting us that he came here to-
night. He was in a black mood, and I suspect, if the truth were known, he has
been well hammered by our people.'

'More power to them!' cried Terence. 'You are right, George; it is time to
quit. I am not sure whether the chief takes us seriously; but he has left a
guard at the door.'

'Only one?' asked George, and Terence nodded. 'I have a plan in the
rough,' he went on, looking at his watch. 'It is just eleven. The sentry will
probably be changed at two or three o'clock. We will divide that time
between watching and resting. If we are quiet, sentry number one will give a
good account of us. Then, an hour or so later——'

'We must dispose of number two.' Terence filled in the pause.

'I am afraid so,' said George regretfully. 'Our lives hang in the balance,
and the lives of many others as well. We will avoid extreme measures if
possible. I wish I had my club. The very sight of it would frighten the fellow
into submission.'

Terence looked up at the roof and grinned. 'I am waiting to see if your
genii, taipos, taniwhas, or whoever are the slaves of the greenstone club, will
bring it back to you the instant you express a wish,' he said. 'There is a
smack of Aladdin and his lamp about the thing. Well, what next?'

'We must scale the fence behind the whare,' answered George, smiling.
'The sentries are stationed at intervals along the platform, and we must
manage to dodge the nearest. We'll manage it—we must.'

'I'll take the first watch,' said Terence.

'No; I will, in case there is any talking to be done. I wish that we had
another basket of food. It may go hard with us in the bush. Lie down and