Quantity Surveying & Cost Management

Cost Plan & Budget provide an estimate of what the actual costs are likely to be. Budget includes an outline plan for how that money will be spent, and a breakdown of the items it will be spent on. Budgets set a limit for expenditure and this can help determine what is affordable. They should be set as early as possible so that expectations can be managed. Cost plans evolve through the life of the project, developing in detail and accuracy as more information becomes available about the nature of the project. They can range from very early initial cost appraisals through to tender pricing documents and the final account.

Budget Review is a detailed third party review of a proposed budget for any construction projects to analyze each line item and confirm the values submitted are reasonable. The scope may also include look at any approved or potential changes to a budget created by scope changes, design modifications, value engineering, or force majeure.

Bills of quantities are prepared elementally or in works packages, by a process of 'taking off' which involves identifying elements of construction works that can be measured and priced. The bill of quantities assists tenderers in the calculation of construction costs for their tender, and, as it means all tendering contractors will be pricing the same quantities (rather than taking-off quantities from the drawings and specifications themselves), it also provides a fair and accurate system for tendering Quantum uses latest software for the preparation of BOQ.

Tender and contract management process consists of finalization of contracting strategy to award of contract. Vendor selection is become very much full proof and easier with help of Tender and contract management if we follow standard process. In this section, QS to finalize contracting strategy with help of client and accordingly prepare Tender Event Schedule, tender document with general conditions and special conditions of contract, BOQ, estimates, drawings, format of insurances, free issue material list, basic rates of materials, form of contract and other necessary documents and compile all these documents to form full Tender Document. This Tender documents floats to shortlisted vendors as per prequalification of vendors. Other process in this section are pre bid meetings, submission of filled tenders by vendors, comparative statement preparation negotiation meetings, resubmission of estimates by vendors after first round of negotiation meeting and same procedure is done 2 to 3 times and QS will prepare final comparative statement with final offers submitted by vendors. After client’s approval QS to finalized vendor and award the work to final approved vendor. QS to submit final Tender report to client.

Value Engineering involves considering the availability of materials, construction methods, transportation issues, site limitations or restrictions, planning and organization, costs, profits, and so on. Benefits that can be delivered include a reduction in life cycle costs, improvement in quality, reduction of environmental impacts, and so on. This exercise that involves most of the project team as the project develops. It is about taking a wider view and looking at the selection of materials, plant, equipment and processes to see if a more cost-effective solution exists that will achieve the same project objectives.

The process of Value engineering involves :


•  Identifying the main elements of a product, service or project

• Analysing the functions of those elements

• Developing alternative solutions for delivering those functions

• Assessing the alternative solutions

• Allocating costs to the alternative solutions

• Developing in more detail the alternatives with the highest likelihood of success

Bill certification is very important phase in post contract process. Bills can be running account bills, pre final bills or final account bills. Process includes submission of bill by vendor to QS in prescribed format and including all necessary documents like invoice copy, measurement sheets, work order copy, approval from site engineers, quality department, safety department and any other department if required as per type of bill. QS to check all bills and after doing necessary correction and attaching Certificate of Payment, it will goes to clients technical department and then it will go to client’s account department. After certifying all bills QS to prepare cost report and submit it to client on monthly basis. It consist total budget, total work orders and purchase orders given against budget and respective cumulative bill amount. It also reflects non tendered item values, variations in quantity and rates for each package and accordingly client will get idea that project is within budget or out of budget

Contract administration involves making decisions and the timely flow of information and decisions to enable completion of the project as required by the contract documents including review and observation of the construction project. The scope of services offered by Quantum for Contract administration typically involves the following :

•  Preparing contract documents for execution

• Administrating change control procedures

• Seeking instructions from the client in relation to the contract

• Issuing instructions such as variations or relating to prime cost cost sums or good defects

• Considering Claims

• Preparing and issuing construction progress reports

• Coordinating and instructing site inspectors

• Agreeing commissioning and testing procedures

• Agreeing defects reporting procedures

• Ensuring that project documentation is issued to the client

• Issuing certificates of practical completion and interim certificates

• Collating and issuing schedules of defects

• Issuing the certificate of making good defects

• Issuing the final certificate