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Estimating and Tendering for Construction Work Edition 2017 (PDF)

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Edition: 2017
Pages: 358
Author(s): Martin Brook
Publisher: Routledge
Language: English
Size: 15 Mb

Estimators need to understand the consequences of entering into a contract, often defined by complex conditions and documents, as well as to appreciate the technical requirements of the project. Estimating and Tendering for Construction Work, 5th edition, explains the job of the estimator through every stage, from early cost studies to the creation of budgets for successful tenders.

This new edition reflects recent developments in the field and covers:
• new tendering and procurement methods;
• the move from basic estimating to cost-planning and the greater emphasis placed on partnering and collaborative working;
• the New Rules of Measurement (NRM1 and 2), and examines ways in which practising estimators are implementing the guidance;
• emerging technologies such as BIM (Building Information Modelling) and estimating systems which can interact with 3D design models.

With the majority of projects procured using design-and-build contracts, this edition explains the contractor’s role in setting costs, and design statements, to inform and control the development of a project’s design.
Clearly written and illustrated with examples, notes and technical documentation, this book is ideal for students on construction-related courses at HNC/HND and degree levels. It is also an important source for associated professions and estimators at the outset of their careers.


Acknowledgements xiv
List of figures
1 Introduction
Evolution of estimating and tendering 1
Constituents of a tender price 2
Estimating cycle 3
Top-down and bottom-up estimating 4
Formats for cost plans 6
1 The Public Contracts Regulations 2015 9
2 Organization of the estimating function
Team roles and organization 1 1
Estimating schedule and bidding costs 16
Quality management 18
Health, safety and welfare 19
3 Procurement paths
Introduction 22
Clients’ needs 23
Contractor involvement 24
Partnering 25
Apportionment of risk 26
Traditional method 28
Design and build 29
Management contracting 32
Construction management 33
Private Finance Initiative 34
4 Formal tender documentation 41
Introduction 4 1
Client’s brief 42
Coordinated project information 43
Forms of contract 51
Essentials of a valid construction contract 5 1
Standard forms of contract 53
Sub-contract forms 55
Understanding the contractual obligations 58
Selection of contract forms 59
Documents used as the basis of a tender 60
Formal tender submissions 62
5 Contractor selection and decision to tender 68
Introduction 68
Bundling projects 69
Competition and negotiation 70
Abuse of tendering procedures 74
Decision to tender 76
Inspection of tender documents 78
Competition legislation 79
6 Project appreciation and inquiries to suppliers and sub-contractors 82
Introduction 82
Estimate timetable 82
Pricing strategy 84
Schedules 85
The estimating team 87
Visits to consultants and site 88
Inquiries to suppliers and sub-contractors 89
7 Estimating methods 97
Introduction 97
Single-rate approximate estimating 101
Multiple-rate approximate estimating 101
Approximate quantities 106
Analytical estimating 108
Operational estimating 111
10 Quantification 11 Tender statement ts 172
8 Design to cost
Introduction 114
Design- to-cost aims and processes 115
Design- to-cost tools 119
Controlling areas 122
Option appraisals 124
Design- to-cost team reports 126
What can go wrong? 129
9 Tenders with cost planning
Introduction 130
Terminology 132
Cost plan aims 133
Funding and affordability 136
Bench marking 136
Cost bench-marking 137
Re-basing cost data 138
The first cost plan 143
Cost plan format 145
‘Linear’ bill of quantities 145
New build and refurbishment 147
Pricing the refurbishment of buildings 148
Condition surveys 149
Furniture, equipment and ICT for a school project 149
Fixtures, fittings and medical equipment in hospitals 151
Aspects of good practice 153
Tender timetable and reviews 153
Final review 155
Value- draw-down charts 157
for estimating
Introduction 160
Standard methods of measurement 161
Level of detail and using COBie 163
Bill production for estimators 167
planning and method statements
Introduction 169
The role of the planning engineer 169
Method statements 170
Logistical planning 172
Tender programmes 172
Tender planning with Building Information Modelling (BIM) 176
12 Resource costs: labour, materials and plant 177
Introduction 177
Labour rates 177
Material rates 181
Plant rates 182
13 Unit rate pricing 184
Introduction 184
Components of a rate 184
Method of measurement 187
Pricing notes 187
Model rate and pricing examples 187
14 Sub-contractors and market testing 227
Introduction 227
Domestic sub-contractors 22 7
Nominated sub-contractors 233
Market testing rates for cost planned tenders 233
15 Risk, opportunities and inflation 235
Introduction 235
High-level risk assessments 236
Risk management 23 7
Collaborative projects 23 7
Risk workshops 238
Pricing risks 239
Monte Carlo simulation 240
Fluctuations 242
Standard fluctuations clauses 243
Calculation of non-recoverable increases 244
Inflation calculations for tenders with cost planning 248
16 Provisional sums and day works 251
Introduction 251
Provisional sums 251
Day works 252
Percentages for incidental costs, overheads and profit 254
17 Preliminaries Introduction 258
Pricing preliminaries 258
Pricing the preliminaries bill 261
Preliminaries for tenders based on cost planning 263
Benchmark data for preliminaries 263
Preliminaries workbook for cost plans 263
Design fees and charges 264
18 Cash-flow forecasts
Introduction 266
Cash flow calculations 266
Examples of contractors’ cash flow forecasts 269
19 Completing the estimate and tender settlement
Completing the estimate 275
Estimator’s report 276
Comments on the tender summary form 280
Tender summary for a cost-planned tender 281
Overheads and profit 282
20 Tender submission and results 285
Introduction 285
BS 8534:2011 Construction procurement policies, strategies and procedures ~code of practice 286
Completion of priced bills 287
Tender submission for cost-planned tenders 288
Tender presentation 289
Vetting of tenders 291
Post-tender negotiations and award 292
Notification of results 292
Tendering performance and analysis of results 292
Bidding strategy 295
Tender records 295
21 Action with the successful tender
Introduction 297
Information transfer 297
Feedback 299
22 Computer-aided estimating 302
Introduction 302
Aims of computer-aided estimating 303
Communications and collaborative systems 304
E-tendering 306
Online auctions 307
Reverse auctions 308
Electronic exchange of information 309
Software 311
Computer-aided estimating packages 312
General-purpose software 315
Evaluation of general-purpose and bespoke software for estimating 319
Comparison of estimating package and spreadsheet for a cost-planned tender 321
Networking 321
The future 323
Further reading 326

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