Estimating Major: Construction Project Preliminary Costs and BQ Report

This report, titled "Estimating Major," provides a comprehensive analysis of construction project preliminaries and Bills of Quantities (BQ). The report begins with an executive summary outlining the team's objective: to accurately assess project costs and develop a competitive tender. It then delves into the introduction, emphasizing the importance of tendering and the skills required for successful construction contracts. Part A focuses on project preliminaries costs, including the identification of accurate pricing for various items such as drawings, groundworks, and permits. The report highlights the significance of accurate cost estimation for timely project completion, budget adherence, and contract compliance. Section A2 details the priced preliminaries bills for the project, including typical items like site establishment, permits, running costs, and supervision. The report also discusses the assumptions made for the project. The team's approach emphasizes the importance of meticulous research, strong estimating skills, and effective tender management to maximize the probability of winning the construction contract. The report underscores the need for accurate cost identification to avoid delays, budget overruns, and contract breaches, ultimately building trust with clients and outperforming competitors. The project involves the construction of a two-story building and a concrete tiled roof, which requires careful consideration of various cost factors.

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ESTIMATING MAJOR
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Location
Date

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Executive summary
The purpose of this report was to form a team of members whose main aim was to discuss the
price in the preliminaries and other trades of Bills of Quantities. The team also selected one
option that was provided in part 2 of the task so as to make strong impressions to the senior
estimator in their skills that demonstrated high estimating skills, outstanding researching skills.
Finally, the team was able to bring forth best estimates that eventually maximized and optimized
the probability of winning the tender.

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Table of Contents
Executive summary.........................................................................................................................2
Introduction......................................................................................................................................3
Part A: Project preliminaries costs..................................................................................................4
Section A1................................................................................................................................4
Section A2................................................................................................................................7
Typical preliminaries item for this project...............................................................................7
A2: Preliminaries Bill...............................................................................................................9
Part B. priced Bills of Quantities (BQ) for the selected trades using Build software...................11
Section B1..............................................................................................................................11
Section B2..............................................................................................................................14
Conclusion.....................................................................................................................................15
References......................................................................................................................................16

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Introduction.
Tendering process is a very important task that any organization should undertake with outmost
considerations. This is because the contract to be awarded the task must be highly skilled and
knowledgeable in a particular field of expertise (Mckeon 2016). This report involves a process of
tendering a construction contract by a group of five highly skilled and innovative group
members. The report involves the pricing of preliminaries and several trades of BOQ. This group
is determined to express all undertakings in this process so as to win this tender. We aim at
satisfying the senior estimator the team is able to undertake the contract. We will prove beyond
any reasonable doubt that this team will provide the best service upon winning the tender. From
experience, the team posses perfect estimating skills, outstanding skills in research and
competent management of the tenders previously awarded by other organizations. Therefore, the
team will better burn the mid night oil so as to come up with great estimates that will optimize
the high chances of winning the tender.
Construction of durable and presentable structure needs a lot of planning and design. A great
need of experts to undertake these functions cannot be assumed. The process of construction is
very involving in both time and finances. Therefore, such a contract requires a lot of zeal, skills,
dedication and will power. The owners of such structures rest their cases to the winner of the
tender. Any mistake done by the contractor concerning the construction will definitely cost the
owner in terms of time and resources. It is therefore very significant to display all the skills and
expectation when negotiating for tenders and even after winning the tender. Lastly, it is
important to note that construction contract involves various sections of construction. This
includes designing doors and windows and their fixing designs, painting, construction of
hydraulics and drainage systems. In addition, installation of electricity and preparation of
exterior elements and designs need to be incorporated in construction process of durable
structures. Finally, it involves a lot of ground works, management and processing of concrete,
masonry, metal work, woodwork, hardware design, roofing and roof plumbing. The important
thing to report at this particular point in time is that, this team has all the skills, knowledge and
expertise they will cut across all those areas of construction. Therefore, once the team is awarded
the tender, all these areas will be done effectively and smoothly.

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Part A: Project preliminaries costs.
Section A1.
This particular section involves the critical explanation of the need to identify accurately the
pricing costs in the project preliminaries costs. Actually, through this section, the team is in a
position of maximizing and optimizing the probability of winning the tender. In this section, it is
important to indicate that measurement of Bill of Quantities as indicator of preliminary for
project costs has been granted approval by the Australian Standard Method of Measurement of
Building Works (ASMMBW). In addition, the quantity surveyors and master builders also assert
satisfaction of Bill of Quantities via a stipulation of Australian Institute of Quantity Surveyors
and Master Builder (AIQSMB). Through the Bill of Quantities, the building contract is formed
and all the pricing will be highly based by the term stipulated in this contract.
There are various preliminaries for project costs and their underlying importance of identification
accuracy in the pricing costs and measurements. They include the drawings, ground works,
concrete, masonry, woodwork, metal work, roof and roof plumbing (MacAlevey 2014). To
determine the pricing and measurement in the preliminaries for the project costs, we first
consider drawing and the importance of identifying accurate drawings for building works.
The Bill of Quantity contain drawing schedule that provide the contractor with list of names of
important parties to be involved in drawings. These parties include the principle, the architect,
quantity surveyor, a structural, service and civil engineers. The principle in this task will be
involved in the overseeing the entire process of the drawings. He will offer recommendations of
the entire view of the drawing. Then the architect will be the chief designer of the drawing. He
will design the best building works that will promote the likelihood of winning the tender. The
quantity surveyor will determine the site where the building work will be done. He also test the
soil structure on which these structures will be laid down for safety purposes. Finally, the
structural, service and the civil engineers will be involved in the actual construction of the design
drawing drafted by the architect. They will recommend other adjustments on the architect
drawings so as to achieve the best result regarding this particular building works.
As a team of contractors, we have visited the construction site at 52 Box Road, East Hill (Levy
2011). According to the observations made during the inspection of all existing conditions, the

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adjacent and abutting buildings were highly noted. Therefore, the indented building will be
constructed 11 m due east of the existing units based on the approved site plan. Since the work to
be tendered for comprise the construction of two story building which tend to be above GL on
5.20m and a concrete tiled roof that consist of two apartments, then accurate estimates need to be
done at pricing and measurement costs of the preliminaries for the project costs (Knutson 2008).
This is purely important due to several aspects.
There are number of pricing cost that can be identified for this project that will increase the
chances or probability of winning the tender by the management team.
They include; the office paperwork, costs attracted in writing cheques which is currently an
electronic fund transfer, computer costs, administration costs, photocopying, financial cost,
permits, contract as well as plan printing costs (Sears 2008). All these preliminaries pricing costs
are involved and need to be identified accurately for underlying importance.
The importance of estimating and identify accurate pricing costs in the project
preliminaries costs.
The following underlying concrete and significant aspects make it important to accurately
identify the pricing cost in the entire project preliminaries costs.
i. Proper completion time of the project.
Having proper identification of accurate pricing costs of a particular project is of great
significance. This reduces the delays that would arise in project execution process. It is
very dangerous for a contractor to give inaccurate estimates of the pricing cost of project
preliminaries. This omission may compromise the whole project completion time and
may as well disrupt the owner’s financial strategies initially enacted to complete the
given project (Addision 2016). Therefore, it is important for a contractor to provide true,
reliable and accurate estimates that go hand in hand with the identified pricing costs of
the project (Allan 2013). The fact that the tendering process is very competitive, it is
important to quote the accurate pricing costs for proper completion time of the project
rather than giving misleading figures just for the sake of winning the tender. This team
have fully undertaken all measures and estimated the reliable pricing costs for this

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project. To the best of my knowledge, I tend to believe that these pricing costs for project
preliminaries are accurate parse.
ii. To ensure the price cost does not go beyond the estimated budget.
This is also very important as far as the pricing costs of a project preliminaries costs are
concerned. It is better to have a surplus budget rather that a budget deficit in any tender
awarded. This management team has put all considerations in this contract. All the
expenses in this building work have been fully up to date. Inaccurate figures in the
budgeting process will led to the closure of the project before completion (Allen 2011).
Again, it is not in order to demand more money from the tendering committee for the
completion of the project yet the problem arose from provision of inaccurate
identification of pricing costs.
iii. To avoid breach of contract. According to the laws of contract, once an offer has been
accepted, the contact deems to exist. Therefore, the fact that a tender has been given to a
particular contactor, there is an offer. Once the contract accepts the tender, then the
contract become valid. Any breach of contract by any party makes the contact voidable
and thus null and void. Therefore, it is of great importance to identify accurate pricing
costs of project preliminaries cost to avoid any implications the can lender the contract
null and void (Barnard 2010). The contract is deem fit once the tendering committee is
satisfied for the work done by the contractor.
iv. To avoid future mistrust by a similar clients offering similar tenders.
This tender lays a base line for a case study. Providing accurate identification of pricing
costs of the project preliminaries costs make a clear base line for future similar tenders. If
these costs tend to be accurate, the clients will have trust in the team and any future
application of similar tenders will be granted based on the grounds of this present tender.
Therefore, the team provides accurate identification of pricing costs bearing in mind that
the future holds for such opportunities (Halpin 2010). Inaccurate identifications will
make tendering committee lose trust on the team not future offer will be granted to the
team. So these identifications are accurate to the best of my knowledge.
Lastly, accurate identification pricing cost will outdo the competitors who are as well
applying for the tender (Bonney 2016). The tendering committee will be in a position to

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determine which team posses’ realistic costs concerning a particular project. This
accuracy in cost identification will favor the most accurate team.
Section A2.
This section involves the priced preliminaries bills for the various identified cost-significant
preliminaries items for this project and for winning the tender. Assumptions for the project will
also be formulated. For this project, there exist typical preliminaries items that are very
significant in pricing of a project and in tendering process.
Typical preliminaries item for this project.
The following list of items needs to be involved typically in preliminaries during the pricing of
these particular costs.
Items in site establishment.
 Costs charged for authority.
 De-mobilization and setup.
 Soil testing results.
 Placement of notice board and signboard.
 Photos, recorded documentation and dilapidation surveys.
 Identification of footways, tracks, paths as well as roads.
 Equipment, plant, platforms, scaffold, cranes and lifts and supports.
 Access and safety rails
 Toilets
 Telephone connection, availability of water and connection of temporary power.
 Site survey and set out of the works.
Items in paperwork, permits and insurances.
 Bank guarantee.
 Notices, tests and inspections
 Maintenance of fees, contract, permits and methods used in obtaining them.
Items in running costs.

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 First aid kits, telephone charges, water supply and payment of power and services.
 Costs for records, parking, documentation and dilapidation surveys.
 Provision of safety equipment, traffic and hazard management.
 Protection by offering reliable security.
 Roads, road crossing and footways.
 Cleaning and site bins.
 Client meetings and consumables.
Item for handover and final cleaning.
 Cleaner.
 Sites dis-establishment and clear.
 Final clean involving disposal, bins and laborer.
Items in supervision and laborers.
 Clerk of works.
 Training and induction.
 Manager overseeing construction.
 Workers in the site.
 The overall site supervisor.
Items in the overheads and any other related costs.
 Risk and profit.
 Cash flow and finance
 Management and workers attendance
 Defects liabilities.
 Administration and expenses involved during off-site.
The last portion of this section involves priced preliminaries bills for the identified cost
significant preliminaries item that were clearly identified in section A1 of this report.
The following template has been obtained and uploaded in vUWS for this purpose.

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A2: Preliminaries Bill
Item Description Amount
($)
Pricing approach with justification
1 Scaffolding
Three layers of nylon mesh, erection,
dismantling, delivery and pick-up $25,900.00
Area to be covered around the
building (2m above roof level) as
taken off from the site plans was
518m2. As per the quote received
by the tender company, it costs $50
per m2 to provide 4 layers of nylon
mesh delivery, erection,
dismantling and pick-up. Hence,
518x50= $25,900.00
2 Painting.
Painting of two storey building in the
roof and inside finishing.
$6,000
Area to be covered by roof
indicates the amount of paint to be
used. 4 litres container cover
100m2. As per the quote received
by the tender company, it costs $60
per m2 to provide cover the roof.
Hence, 100 x60 = $6,000
3 Office paperwork.
The paper work need to be prepared
so as to indicate all the functionality
of the document. Record and photos $17,500
The total volume to the paperwork
is estimated to be 700 units. Based
on the quote received from
tendering company, each unit will
cost $25.

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need to be prepared. Hence, 700×25 = $17,500
4 Administration costs
This cost involves the payment if
bills for all office work. Water and
electricity and other office expenses.
They need to be paid prior to three
months.
$3,600
The payment per month is
indicated to be $1200 according to
the quotation provide by the
tendering company.
Hence, 1,200×3 = $3,600
5 Roofing
The building is estimated to consume
300 units of roofing materials.
$330,000
According to the quotation
provided by the company, each
unit will cost $1,100.
Hence, 1,100×300 = $330,000
6 Payment wages and salaries.
There are 27 workers on board at the
construction site.
$202,500
Each worker will be paid $250 per
day. Payment will be paid monthly
as per the quote provided by the
company.
Hence, 250×30×27 = $202,500
The above preliminaries bill indicates the pricing cost which is very favorable. This pricing cost
will increase the probability of winning the contract.

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Part B. priced Bills of Quantities (BQ) for the selected trades using Build software.
Section B1
From the five options provided in the Bills of Quantities (BoQ), this particular section involves
selecting one option that will be discussed into details relating pricing items of the selected trade
with an aim of deriving a trade summary.
Therefore, this section will use the Build software tool to critically analyze the option selected in
indicating the trade to price (Graziosi 2017). From the general conclusion, the option of choice
from the given list is option number 4 which lead; roofing and roof plumbing full section. This is
a very crucial section of any construction. Typically, it displays the entire structure under
construction.
To price the roofing and roof plumbing option, the team aim at applying the bill of quantities as
indicated below.
Ite
m
1.0
1.1
DESCRIPTION
Roofing and roof plumbing.
General.
Rates must involve the following; nails, screws,
circular edges, turning into grooves, dressing
over angled fillets, fair edges, all other labor
and other fixings as well as laps.
Roof covering.
Roofing sheets.
This involves lysaught roofing sheet. Rates will
include all fixtures and must be fixed as per
instructions provided by the manufacturer.
Calculated in M2.
UNIT
M2
QTY
20
RATE
250
TOTAL
5,000