Measuring tendering and estimating for CBE

HND in Construction & Built Environment (Civil Engineering) BCAS DOHA QATAR
Unit 16: Measuring, Tendering and Estimating Page 1
Task 1. Understand the information required to produce a tender
1.1. Explain the client’s involvement in the tender process (P1.1)
Major involvement party of the tendering process is client because clients have to prepare all
the tender documents and review of contactors submissions. Client’s involvement comes from
beginning of the tender process. See below step by step.
 Estimating project scope and budget limit.
 Prepare the tender drawing and select a qualified quantity surveying consultant to
estimate the project quantities.
 Prepare other documents BOQ, Condition of tender, Specifications.
 Select correct traditional procurement path.
 Select correct tendering method (open or selective)
 Invite to the tender by public advertisement.
 Taking most risk during tender process.
 Select the best contactor to the work and analyze their estimated rates.
 Analyze their Methodology and experiences to the works.
 Up to client awards the project to contactor.
1.2. Identify the constraints that apply to the tender Process (P1.2)
Mainly, There are many constraints in a tender including client’s objectives, client’s
constraints, financial constraints, physical constraints, legal constraints, design
constraints, etc.
Before preparing a tender for a project, the client must have his own objectives in
developing the project, he needs to build the building within a specific period. Sometimes, there
may also construction constraints of a project like restricted time period for noisy operation in a
site adjacent to a school.
Physical constraints means the physical characteristics of the site for development.
It includes:
 the site: plot area, proportion of width to depth, shape, site geology, site contamination,
hydrotropic characteristics, site fronting large area of water, etc
 the building improvements: the maintenance conditions of the building, e.g. cracks, leaks,
etc.

 non-building improvements: fencing, position and depth of utility lines, retaining walls,
swimming pools, footpaths drainage culverts, paving, tennis court, refuse collection
point, transformers, etc. presence of services provision like water, gas, electricity, sewer,
telephone, cables, etc.
Legal constraints include restrictions on the title, restrictions on use of the site,
restrictions on profits and income flows, etc. Sometimes, they may also mean
community influences associated with the ownership and use of land.
Design constraints are rules or regulations that the designers have to be followed in
their designs. For instance, usually the construction of the project is subject to
height limit, plot ratio, building regulations on fire escape route, etc.
Financial resources are also very important to the development of a project. Even a
project with good profit, the project needs to be financed at the initial and early stage
of the development. Client may therefore need to arrange finance from banks in
order that the project can be executed.
Here also some The constraints analyzed for tender process are:
 Tenders are poorly presenting which make them look unprofessional
 Tenders are poorly presenting which make them difficult to understand
 Tenders contain inaccuracies that may dent client confidence
 Tenders take longer to complete than competitors
 Revisions to tenders take longer to complete than competitors
 Tenders are not competitively pricing
 The tender team do not respond appropriately to client demands
 The tender team do not efficiently communicate with client
 Not enough hours in the day to review the tender process
1.3. Describe the contractual documentation required to support the tender process (P1.3)
Introduction:
A tendering process is based on tender documents, which is depend on ype of contract.The
tender document issued to the tenderers for tender may include the following:
 Notice / invitation to Tenderer
 General and special Conditions of Tender/ instruction to bidders
 General and special Conditions of Contract and appendix to condition of contract
 Form of Tender(agreement)
 Drawings (Tender)

 Bills of Quantities (BOQ)/ Specifications/schedule of rates
 Instruction to bidders
 Specification
 Return envelope
 Schedule of prices
 General Summary of Tender
 Bonds(specimen bonds)
 Condition of contract:-
This is one of the tender document and this sets out the obligations and rights of the
parties and the detailed conditions under which a subsequent contract will operate.
 Bill of quantities (BOQ):-
Bill of quantity is the major component which can be taken to identify the cost
information if it is available. Normally BOQ gives full item description for each and every item
including quality control and workmanship for that particular items. BOQ is divided as
preliminaries, preambles, measured work, prime cost and provisional sums.
In order to prepare a detailed BOQ, we must have:
1. Plans , sections and other relevant details of work
2. Specifications indicating the exact nature and class of materials to be used
Three steps of preparation of BOQ:
1.Taking out quantities and squaring
2.Abstracting
3.Billing
 Schedule of pricing:-
As an alternative to a specification in the case of without contracts, tenders may be
supplied with a schedule of works. This list of work comprised in the contract under appropriate
heading. The tenderers may be required to price the schedule.
 Drawings:-
Normally general arrangement drawing will be provided, showing site location, position
of the buildings on and means of access to the site and floor plans and elevations. Tenders are
not normally given working drawings. However, they are informed that they can inspect
drawings not supplied to them, at the consultant’s office.
The main types of drawings commonly used in construction:
1. survey drawings- based on measured survey or an ordinary survey sheet and are used to
produce block and site plans
2. preliminary drawings-
3. production drawings

4. record drawings
 Form of tender:-
This is a pre-printed formal statement, often in the form of a letter, in which a tenderer
fills in, in blank spaces, his name and address and the sum of money for which he offers to carry
out the work shown in the drawings and described in BOQ or specification.
 Return envelope:-
Each tenderer should be supplied with a pre-addressed envelope clearly marked “Tender
for (name of project)”.this will ensure that tenders are recognized as such when received and
will not be prematurely opened.
 Instructions to bidders:-
This is a statement in which states under which conditions the tender should be submit.
This includes, from whom and where tender document can be obtained, closing data and time of
the tender, amount of the refundable tender deposit and/or tender bond etc
 Specifications:- this is prepared by an architect or consulting engineer to provide written
technical information mainly on the quality of materials and workmanship. The
specification would be a contract document in its own right if the contractor tenders on
the basis of drawings and specification only.
So according to above mentioned contractual documentation are supporting to tender processing
and those documents are very important t carryout a tendering process.
Task 2. Be able to apply the principles and techniques of estimating
2.1.(a) Identify the factors to be considered when collect the data required to build up unit
costs(P2.1)
Introduction:
There was a time when the unit costs of labour and plant were calculated from first principles;
the assumption being that the company employed operatives in sufficient numbers to carry out
the work and provided its own plant. A more realistic approach today would be to find the
current market rates paid for labour near the site and look at the market prices for plant hire.
This information is readily available as feedback from current jobs and plant hire rates can be
obtained from plant specialists. Another change has come with computers. The importance of
establishing accurate rates for labour, materials, and plant, before pricing the bill of quantities,
has reduced because programs allow the estimator to change unit rates for resources at any
stage of the tender period.

Unite rate for measured items in the bill of quantities consist of any or the entire fallowing basic
elements:
1) Labor
2) Plant
3) Materials
4) Overhead( site and office)
Labor rates
There are calculations that have to be made when undergoing a project to establish a rate that
the estimator can use to price the tender works which recovers all the costs involved in
employing labour directly.
The basic rate of pay has to be agreed with both company and worker; this includes any holiday
pay or sick pay that will be taken due to entitlement. Workers will still be paid for these days.
Weather can restrict when workers can do the work meaning they may not get paid for some
hours of the day or even the whole day. Also the employer's national insurance contribution
needs to be made as well as payments to the CITB (construction Industry Training Board). And,
finally any bonuses that are given to the worker as extra incentives.
To calculate the cost of labour per hour we must take all of the above into consideration
however, one more piece of information is required, this is the output rates for labour for an
example, How fast can a brick layer lay bricks? If we are paying a man by the hour, how long
will it take for him to finish the job. The idea behind this calculation is to really see if it's worth
hiring in to do the job because obviously some workers are better than others. If we can
establish the output rate of labour, then we can calculate the cost of labour per unit of
brickwork(for example).
This can be applied to the tender prices.Output rates can be estimated in one of two ways.
Carrying out work studies where bricklayers are timed to see how many bricks they can lay in
an hour. Or using output tables from work done in the past can provide information on how long
work took or on unit output rates.
By considering all the possible expenses related to labour & find out the hourly figure that is
define as a all-in one rate in labour. There are two methods are available to calculate. First is
considering all expenses for contractor to related to labour during the one year period & divide
by this the total working hours consumed in that year. The second method is considering as
same expenses above mentiond for one week & divided by hours worked in that week.
 Minimum guaranteed wedges (hourly, weekly, monthly or annually).
 Minimum guaranteed overtime.
 Minimum guaranteed bonus.
 Inclement or bad weather.
 Nonproductive time.
 CITB levy (construction industry training board).
 Tool money (ex. Trowel).
 Insurance

 EPF & ETF (in srilanka)
Rates of material
The analysis of a unit rate requires the computation of the price and quantity of materials
concerned in the item. The basic price may include for delivery to the site but a percentage
allowance is necessarily made for all waste. The unloading, storing, removing to position,
including hoisting or lowering, of mixing or assembly of commodities are provided for the labour
and plant charges.
The main elements to be included the calculations are:
 Purchasing cost
 Transportation
 Loading & unloading
 Discount
 Storing
 Security
 Maintenance
 Wastage
 Other taxes-duties
Cost of plant
Operating costs are those that are time related. If the plant was owned by a company the
calculation and estimation of how much the operating costs would be would include the amount
of fuel used. This would have to be done using a consumption rate of the plant. Also any repairs
on punctures etc.These will occur rarely and at random and are added in to recover costs. Also
operating costs must be considered. The umber of hours that it is operating will obviously cost
more in energy and make for more breakages.
When hiring plant there more aspects required to take a note of there are deliver costs to think
about. If your site is in the city it may be hard to get it to your site so alternative methods of
transport are used but usually low loaders and tractors are used nevertheless all of these
methods cost money.
Erection costs are also something to think about, if it is a crane that you need then this is going
to take time to erect, and time equals money not to mention the labour involved. Also when
everything is finished removal costs come into place and these need to be noted and change
the percentage profit in the long run.
The worst thing that can happen to a site manger is when he has expensive plant lying around
and not doing anything; this wastes a lot of money, mainly through rental costs. The rate of
rental costs per hour is very expensive as we know. The unit rate of calculation for an item of
plant will depend on a number of things.
The ground conditions are important, weather there are trained operators. If not then hiring
someone new or investing in training is needed (training would be needed for at least 2 people

to account for the absent). The dimensions of the height and reach of the plant material is also
accounted for.
The higher and longer the plant is the more it costs for example a crane costs more than a small
digger. Finally the reliably plays an important role in how much plant costs. If you are hiring or
buying brand new plant machinery then its obviously going to cost more. All of these things take
off and put on percentage to the overall percentage profit.
There are several methods of costing mechanical plant in use today, some of which are
extremely complicated and mainly theoretical, taking into account grants and tax allowances for
capital investment and ‘second-hand’ values.
The following factors will be considered for the calculation of all in all rates for plants.
I. Depreciation of plant.
II. Repair and maintenance cost of plant.
III. License and insurance cost.
IV. Fuel and lubricant.
V. Operator cost.
VI. Tyre cost.
Overheads
Overhead is business term that refers to fixed costs that a business incurs so that production is
continued. Overheads can be cut if limits to production are made, or if production is halted
completely, although some overheads are incurred whether there is and production or not.
In construction the overheads of a company are the costs that must be met in order to be able
to run the head office. These are things such as; departmental costs (buying the department)
and insurances, also paying for company cars and basic IT equipment. They are basically costs
we can't control such as wages, electricity, gas or office rent, etc
Construction companies must provide enough levy in their contracts to cover overhead business
expenses. These expenses are harder to calculate and pro-rate to different customers when
compared to the direct costs of materials and labor to complete a construction project. In
general, there are three types of overhead expenses: direct, indirect and fixed. Managing these
expenses and accounting for them in the bidding process is crucial for a construction company
to turn a profit.
But, In the preliminaries there are fixed and time related changes that must be considered. In
SMM7 we can see that these two types of charges are identified separately. A fixed charge is
the cost of the work that is independent on duration and a time related charge is the cost that is
dependant on others over duration

Overheads and profit should be evaluation separately because they are calculated in different
ways for different purpose
There are two types of overhead costs involved in tendering
1. Office overheads (relates to off-site costs, which need to be recovered to
maintain the head office and local office facilities)
2. Site overheads or project overheads (site administrative cost)
Office overheads include
 Salaries and costs to employ directors and staff.
 rental fees rates and maintenance of offices stores and yards;
 insurances
 printing stationery postage and telephone
 advertising and entertainment
 canteen and consumables
 fuel and power charges
 cars and other vehicles costs for office staff
 Rates and maintenance of offices, stores and yards
 Welfare and medical facilities
 Lawyer Fee (solicitor Fee)
Site overheads include
 Site staff salaries (engineering and administrative )
 Maintenance of site vehicles
 Equipment for site vehicles
 Furniture for site office
 Site stationeries
 Site welfare facilities
 Heating and lightning.
 Transportation
(b) Collect the data required for building up unit costs of at least two civil engineering activity of
your choice.– Industry related activity (P 2.1)
1. Di Pipe laying and installation
2. Wall formwork system
See the attachment at last.
2.2.Describe the standard data documentation and measurement rules in estimating (P2.2)
Standard data documentation

The rules governing the measurement of construction works are laid down in Standard Method
of Measurement.
Standard Method of Measurement of building works published by the Royal Institute of Charted
Surveyors (RICS) and the Building Employers’ Confederation. The current version of Standard
Method of Measurement is the 7th
edition (SMM7), which was published in 1922 as 1st
edition.
SMM7 provides detailed information, classification tables and rules for measuring building
works. It is important that there is a uniform basis for measuring building works in order to
facilitate industry wide consistency and benchmarking, to encourage the adoption of best
practice and to help avoid disputes.
SMM7 is accompanied by the Code of Procedure for the Measurement of Building
Works (the SMM7 Measurement Code). Whilst SMM7 can have a contractual status on a
project (for example in the JCT Standard form of Building Contract), the Measurement Code is
non-mandatory.
Types of SMM:
1. Standard Method of Measurement of building works 7th
edition (SMM7)
2. Civil Engineering Standard Method of Measurement 3rd
edition (CESMM3)
3. Sri Lanka standard 573 revision 1999- Standard Method of Measurement of building
works – ICTAD(institution of construction training and development) (SLS 573)
 SMM7 and CESMM3 are internationally accepted.
 But above mentioned 3 types are old.
Requirement of a Standard Method of Measurement (SMM)
 The method of measurement and descriptions are on a uniform basis so that tenders are
comparable.
 The rules can be easily applied for a wide range of buildings.
 Avoid all types of mistakes (doubts, confuse and accidental omissions).
 Accurate representation of quality and quantity of work.
New rules of measurements:
The NRM is the latest one, nowadays using in construction works. But there will be a set of
consistent rules for measuring and capturing cost data, thereby supporting the procurement of
construction projects from cradle to grave. It means this method is only considered for
construction works. This suite comprises:
1. NRM1- order of cost estimating and cost planning for capital building works. This
underpins how we get budget and design our building. This is just a imaging, not
detailed one.
2. NRM2- this is all detailed measurement for building works including drawings. Which is
supporting set of detailed measurement rules enabling work to be bought either through
BOQ.

3. NRM3- order of cost estimating and cost planning for building maintenance works. This
enable the measurements of capita cost plans to be integrated with maintenance and
life-cycle replacement works.
(But , current version Is CESMM4)
Reasons for changes of SMM7 to NRM suit is, for better meeting of the needs of client
and to provide more upfront detail and allowing better consideration of the full costs of
a construction project. for an example; cost of acquiring land, planning cost,relocation
cost cost of finance, etc
2.3.Produce the method statements suitable for compiling unit costs of at least two civil engineering
activity of your choice. (P2.3)
Di Pipe laying and installation
 Topographic & pipeline route survey
 Survey and line out
 Work front sequencing
 Valve chambers construction
 Trench excavation
 pipe bedding
 Pipe handling & conveyance
 Laying & jointing
 Granular surround
 Concrete surround
 Refilling and compaction
 Pipe laying by trenchless method
 Hydraulic testing
 Disinfection of pipelines
 Backfilling and compaction
 Inspection and testing
 Commissioning
Wall formwork system
 All works must be checked and supervised by a competent supervisor (formwork
safety supervisor and scaffold supervisor) ,meanwhile, assembly and erection are in
accordance to endorsed drawings. All work must be carried out in accordance with
the safety guides.
 Arrange the primary bearer(steel waler#12) as per dimension in the approved
drawings.
 Fix the timber beam and waler with flange clamp, fix the lifting hook(with at least 4
sets M20X140 bolts) according to the design. Note: The timber which has the hole
on the side will be fixed the hook, so the position of the timber must be fix according
to the assembly drawing

 Fix the plywood(18mm)
 Fix 40X80mm timber plank as end protection
 Fix the console bracket to the timber beam ,and fix platform to the console bracket.
 Lift the formwork with crane sling to the right place.
 Fix the pull-push prop to waler of the formwork, and adjust the formwork on the right
place.
 Install the tie-rod.
 Concrete pouring
2.4.Calculate unit costs for given items [Classroom Activity - 2 hours](P2.4)
Build up All‐in‐rate for following item (P7, M2, M3 & D2)
a) Mason
b) Excavator
c) Cement
a) Mason
All in rate for mason expenses per year
QR‐40.00 per day basic salary
Sl.
No.
Description Unit Qty. Rate in QR
Amount in
QR
1 Basic salary (6x4x12) Day 288 40 11,520.00
2 Annual holyday
Day
21 40 840.00
3 Sick leave
Day
14 40 560.00
4 Public holyday
Day
8 40 320.00
5 Non productive day
Day
5 40 200.00
6 Air ticket
Year
2,000.00
7 Insurance
Year
4,000.00
8 Over Time (0.5x4x12)
Day
24 40 960.00
9 Accommodation
Year
2,000.00

10 Food (300x12)
Year
300 12 3,600.00
11 Gratuity
Year
21 40 840.00
12 Transport Year 2,000.00
13
Profit & Overhead (15%) (1‐12)
(28,840x.15)
4,326.00
Total 33,166.00
All in rate mason expenses for one month 33,166.00/12 = 2,763.83 QR
b) Excavator
All in rate for Excavator expenses per year
QR‐10,000.00 per month rent
Sl.
No.
Amount in
QR
1 Rental Month 12 10,000.00 120,000.00
2 Mainatnce 35,000.00
3 Fuel (6x4x12)
Day
288 100.00 28,800.00
4 Driver
Month
12 2000.00 24,000.00
5
(207,800x.15)
31,170.00
Total 238,970.00
All in rate Excavator expenses for one month 238,970.00/12 = 19,914.17 QR
c) Cement
All in rate for Cement material
QR‐30.00 per 50kg Cement Bag
Sl.
No.
Amount in
QR

1 Purchase cost No’s 500 30.00 15,000.00
2 Transportation 1,000.00 1,000.00
3
Loading & unloading to store (4 labour
@30)
120.00
4
Loading & unloading to Site (4 labour
@30)
120.00
5 Wastage (10% of basic cost) 1,500.00
6
(17,740x.15)
2,661.00
Total 20,401.00
All in rate for one 50kg Cement bag material 20,401.00/500 = 40.80 QR
Task 3. Be able to formulate an estimate for construction operations
3.1.Explain how the bill of quantities format may be used to build up estimates (P3.1)
The BOQ includes:
 Preliminaries
 Preambles
 Money of provision
 General Summary
 Sectional trade bill
Preliminaries
The Preliminaries bill describes the nature and extent of the work, the type of contract and all
factors affecting the physical execution of the work. Construction projects are priced using a bill
of quantities--a detailed description of the items needed to finish the product and their costs.
Preliminary items are items of cost which doesn’t relate with any particular work section and
usually listed in the first BOQ.
The preliminaries of a bill of quantities are the section that provides a description of the project,
the contractor's general obligations, general facilities, and setup and running costs.
In the United States, the term "site overheads" is used instead of "preliminaries."

In a bill of quantities, the preliminary costs are generally divided among initial cots, recurring
cost and final costs. Initial and final costs are one-off expenses, while recurring costs continue
throughout the life of the project. If work is disrupted for reasons out of the contractor's control,
recurring costs are often used to calculate compensation for the extension on the contract period.
The preliminaries section of a bill of quantities contains two separate types of items.
 Time related charge. Ex: Insurance, payments, to local authorities.
 Method related charges, which derive from the contractors, expected method of caring
out of the work. Ex: Provide temporary works, supervision.
Examples for preliminaries items:
 Temporary site fencing, hoardings, screeds, fens gantries and similar items
 temporary roads
 site accommodations
 site supervision persons (ex; site agent, cashier, clerk, store controller, messenger )
 setting out
 services (electricity, water, telephone ) to the site,
 plant and scaffolding
 site meeting
 welfare and safety at the site
 site security
 site office
 site cleaning, insurance, bonds and guarantees and etc.
 permanent electricity connections cost is also preliminaries.
Preamble
The Preamble should indicate the inclusiveness of the unit prices, and should state the methods
of measurement that have been adopted in the preparation of the Bill of Quantities and that are to
be used for the measurement of any part of the Works.

Work Items (grouped into parts)
The items in the Bill of Quantities should be grouped into sections to distinguish between those
parts of the Works that by nature, location, access, timing, or any other special characteristics
may give rise to different methods of construction, phasing of the Works, or considerations of
cost. General items common to all parts of the Works may be grouped as a separate section in the
Bill of Quantities. When a family of Price Adjustment Formulae are used, they should relate to
appropriate sections in the Bill of Quantities.
Day work Schedule
A Day work Schedule should be included if the probability of unforeseen work, outside the items
included in the Bill of Quantities, is relatively high. To facilitate checking by the Employer of
the realism of rates quoted by the bidders, the Day work Schedule should normally comprise:
1. A list of the various classes of labor, materials, and Contractor's Equipment for which basic
Day work rates or prices are to be inserted by the bidder, together with a statement of the
conditions under which the Contractor will be paid for work executed on a Day work basis; and
2. A percentage to be entered by the bidder against each basic Day work Subtotal amount for
labor, materials, and Plant representing the Contractor's profit, overheads, supervision, and other
charges.
Summary
The Summary should contain a tabulation of the separate parts of the Bill of Quantities carried-
out with provisional sums for Day work, for physical (quantity) contingencies, and for price
contingencies (upward price adjustment) where applicable.
 These Notes for Preparing a Bill of Quantities are intended only as information for the
Employer or the person drafting the bidding documents. They should not be included in
the final documents.
3.2.Determine the critical factors that affect profit margin in any construction project. (P3.2)
When work is rare and turnover falls, contractors look for ways to reduce tender mark-ups.

The invitation is to reduce the amount for overheads at a time when they are rising in proportion
to turnover.
The profit figure is an arrangement of discounts and additional profit required by management.
In a competitive market all discounts are taken out before a small profit margin is added, to help
in winning the work.
Profit is a flow concept and the profit margin measures the flow of profits over some period
compared with the costs, or sales incurred over the same period.
One could compute the profit margin on costs, or the profit margin on sales.
Time
A construction company’s proposal for a project takes into consideration all cost factors, time is
a crucial element to maximizing the profit margin.
A construction company doesn’t charge per hour.
It charges a price for the whole project, and that price is determined by estimating how long it
will take, how much supplies cost, how much labor is involved and so forth.
When the time to complete the project far exceeds the estimated time, the profit margin for the
project falls drastically.
Supply Costs
Supplies needed to complete a project do not come with consistent price tags.
The cost of supplies changes often, much like the cost of gasoline will rise and fall numerous
times in a month.
If a construction company purchases all its supplies at the same time, it won’t be affected by
rising prices.
But if it purchases supplies as the project progresses, it may be saddled with extra costs that
weren’t figured into the bid, leading to a thinning profit margin.

Of course, that works both ways. The cost of supplies may drop at any given time, leading to a
larger profit margin.
Unexpected Problems
Problems that arise unexpectedly can cause confusion with a construction company’s profit
margin.
Such problems include damaged materials due to a natural disaster and unexpected foundation
problems that require drastic corrections.
Most of these problems are difficult or impossible to predict.
There are, nevertheless, some important issues which must be considered before a tender can
be completed.
1. The desire to gain the contract or to increase turnover
2. Whether the project will contain contractor’s finance, cash flow calculations will show the net
finance needed or benefit available.
3. The effect of winning the contract on the present workload
4. Knowledge of the client and his consultants, the attitude and competence of other parties
can have an impact on the smooth running of a project.
5. The local market conditions, consider the strength of competition for the type of construction
in the area.
6. Knowledge is gained of profit margins by an examination of results from previous tenders.
7. There is a theory that contractors may be influenced by the client’s budget.
Re-examine the suppliers’ and sub-contractors’ quotations for any evidence that lower prices
may be available after the main contract is awarded.
Consider different profit margins for direct work and that for which sub-contractors will be
responsible.
Finally once the overheads and profit are settled, the amounts can be put on the summary form.
All that remains is to add day work and undefined provisional sums to arrive at the overall total,
and where applicable add professional fees to produce the tender figure.

3.3. Describe how the health, safety and welfare plan affects the tender in
construction project (P3.3)
The key to achieving healthy and safe working conditions is to ensure that health and safety
issues are planned, organized, controlled, monitored and reviewed.
Everyone controlling site work has health and safety responsibilities.
Checking that working conditions are healthy and safe before work begins and ensuring that the
proposed work is not going to put others at risk requires planning and organization.
Gathering as much health and safety information about the project and the proposed site before
work begins is important.
Information available at tendering should be used so that allowance is made for the time and
resources required to deal with particular problems.
Sources of information include:
- The client
- The design team
- Contract documents
- The main contractors on the site
- Specialist contractors and consultants
- Trade and contractor organizations
- Equipment and material suppliers
The construction industry has a poor health record.
Construction workers are likely to suffer ill health as a result of their work in the industry after
exposure to both harsh working conditions and hazardous substances.
Health can result from:
Asbestos: Exposure to asbestos can cause serious respiratory diseases such as asbestosis
and cancer.

Manual handling: Lifting heavy and awkward loads causes back and other injuries. Some
injuries can result from a single lift, but more commonly, long-term injury develops as a result of
repeated minor injury due to repetitive lifting.
Noise and vibration: High levels of noise can cause hearing loss and repeated use of vibrating
tools can cause hand-arm vibration syndrome (damage to nerves and blood vessels- most
commonly in the hands and fingers).
Chemicals: Exposure to materials such as cement and solvents can cause skin problems such
as dermatitis.
Summary of steps to take before working at height:
 Ask yourself whether any of the work can be carried out without working at height.
 Start at the top of the hierarchy to decide what equipment will provide the safest method
of getting to the work area and carrying out the job.
 Check that the selected equipment is suitable for the conditions on site.
 Make sure that the equipment needed is delivered to site in good time, and that the site
has been prepared for it.
 Check that the equipment is in good condition and make sure that whoever puts the
equipment together is competent and knows what they are doing.
 Make sure those who use the equipment are supervised so that they use it properly.
 The more specialized the equipment (eg. Boatswain’s chairs and rope access
equipment), the greater the degree of training and supervision required to ensure safety.
 Check any equipment provided by another company is safe before using it. Find out who
to tell if any defects need to be remedied or modifications need to be made and keep
them informed.
 Ensure you have procedures for rescuing an injured person and handling an emergency
situation.
Inspections and reports
All working platforms must be inspected by a competent person:
 after installation or assembly in any position
 after any event likely to have affected its stability, eg. Following strong winds or
substantial alteration and

 at regular intervals if the working platform is below 2m or at intervals not exceeding
seven days if the working platform is at 2m or above.
The person in control must have the inspections carried out by a competent person.
This is someone with the proper training (eg. Attendance at a scaffolding inspection course) and
experience to enable them to identify any risks that are present and decide upon the measures
required to control the risks.
Whoever controls the activities of others who use a scaffold also needs to ensure it is safe
before they use it for the first time.
If the competent person is not satisfied that work can be carried out safely, they should advise
the person the inspection was carried out (eg. A senior manager of the principal contractor as
soon as possible).
Stop work if the inspection shows it is not safe to continue.
Welfare facilities
Everyone who works on any site must have access to adequate toilet and washing facilities, a
place for preparing and consuming refreshments and somewhere for storing and drying clothing
and personal protective equipment.
Principal contractors and others who have control over construction sites are responsible for
proving or making available site welfare facilities.
Employers are also responsible for ensuring that welfare facilities are adequate for their
employees.
The welfare facilities should be sufficient for everybody who is working on the site.
If facilities such as toilets and canteens provided by someone else are to be used, check that
they are suitable and properly maintained.
They should be kept clean, warm and properly ventilated and lit.
Welfare facilities should be easily available to people working on the site.
Toilets need to be easily accessible from where the work is being done.
Washing facilities should be as close as possible to the toilets.

Washing facilities also need to be close to canteens and rest rooms so that people can wash
before eating.
In almost all cases, these facilities will be provided on site.
Where the work is of short duration, arrangements still need to be made for welfare facilities.
Sanitary conveniences
Men and women may use the same toilet, provided it is in a separate room with a door that can
be locked from the inside.
Soap and towels (either roller-type cloth or paper) or dryers should also be provided. It is good
practice to provide skincare products.
Where the work is particularly dirty or workers are exposed to toxic or corrosive substances (eg.
During demolition or work in contaminated ground), showers should be provided.
Storing and drying clothing and personal protective equipment
Make sure there are proper arrangements for storing:
 Clothing not worn on site (eg. Hats and coats):
 Protective clothing needed for site work (eg. Wellington boots, overalls, gloves etc)
 Personally issued equipment (eg. Ear defenders, goggles, harnesses etc).
If electrical heaters are used, ensure that they are either fitted with a high-temperature cut-out
device or are properly ventilated.
Many fires have been caused by placing clothing on electrical heaters to dry, making the
appliance overheat.
Drinking water
Make sure there is a supply of drinking water.
It is best if a tap direct from the mains is available, otherwise bottles or tanks of water may be
used for storage.

If water is stored, it should be protected from possible contamination and changed often enough
to prevent it from becoming stale or contaminated.
The tap should be clearly marked if it is possible to confuse the drinking water supply with other
water supplies or other liquids such as:
 Those not fit for consumption (eg. Water from storage tanks used for wheel washers) or
 Certain toxic materials (eg. From taps to pipelines in factories).
Decide how the waste stream will be managed to ensure it is timely and effective.
You might want to consider whether you will require the contractors to be responsible for
collecting their own waste or whether you will provide someone to do this for the site.
Don’t forget that waste materials also need storing safely before their removal from the site and
make sure that you allow sufficient space for waste skips and bins.
If you are collecting waste in skips you will need to decide where the skips can positioned and
how often they will need to be collected.
Consider waste generated inside and whether you need to provide wheeled bins to enable it to
be brought out of the building safely.
First aid
First aid can save lives, reduce pain and help an injured person make a quicker recovery.
The Health and Safety Regulations 1981 require you to provide adequate and appropriate
equipment, facilities and personnel to enable first aid to be given to your employees if they are
injured or become ill at work.
The minimum provision for all sites is:
- A first aid box with enough equipment to cope with the number of workers on site
- An appointed person to take charge of first-aid arrangements
- Information telling workers the name of the appointed person or first aider and where to
find them.
- A notice in the site hut is a good way of doing this.
- A first aider is someone who has undergone a training course in administering first aid at
work and holds a current first aid at work certificate.

- A first aider can undertake the duties of an appointed person.
- The number of qualified first aiders needed depends on the risk of injury and ill health on
site. As a guide:
Numbers employed at any location Number of first aid personnel
Fewer than five At least one appointed person
5 to 50 At least one first aider
More than 50
One additional first aider for every 50
employed
The first-aid arrangements should cover shift working, night and weekend working where this is
carried out.
This may mean appointing or training several people to ensure adequate cover.
Employees’ duties
Employees also have health and safety duties. They should:
 follow instructions given to them by their supervisors
 co-operate with their employer on health and safety matters
 follow the health and safety rules that apply to their particular job and to the site in
general
 use the health and safety equipment provided
 report defects in equipment to their supervisor
 take care of their own health and safety as well as that of their workmates and others
who might be affected by their work
Employees should be trained to know what to do and the work should be supervised and
monitored to make sure that information provided as training is relevant to the work situation
and is applied effectively.

Deciding whether somebody is an employee or is self-employed can be complex in the
construction industry.
It may be important to be sure of the employment status of people working on a site.
It may affect who has responsibility for some aspects of health and safety and the provision of
safety equipment such as boots and hats.
The Construction (Health, Safety and Welfare) Regulations 1996
What do the Regulations cover?
The Regulations cover a wide range of health and safety issues, including:
- Welfare requirements such as toilets, washing facilities and rest areas,
- The support and inspection of excavations,
- Transport routes and pedestrian segregation
- Provisions for higher-risk trades such as demolition and
- Emergency and fire procedures
3.4.Calculate the cost of preliminaries using following data- Water for the work. [Classroom Activity
- 2 hours] (P3.4)
Water required for the project is provided in either of the two ways supply by water tankers
if the site is far from a source or pipe bone water. In pricing consideration is given the
following:
The proposed project is with a 12months proposed construction period and pipe born water
is available nearby. An approximate estimate of the quantity of water required for the
project from the same project has been calculated based on the BOQ as follows:
 For concrete work 480liters/m3

 For Block work 350 liters/m2
 Rendering 30 liters/m2
 Workman hut 2000 liters/day
 Site accommodation 20,000liters/day
Based on these allowances total quantity of water should be estimated for the whole
project and priced at prevailing water tanker rate for that area. Refer following information
in pricing preliminary item for water.
a. Pipe Bone Water: Price will include.
i. Cost of water connection by water board.
ii. Cost of labour and material for laying pipes.
iii. Cost of temporary storage.
iv. Cost of disconnection, removal of pipe and making good defect.
v. Overhead and profit.
b. Cost of Temporary Storage:
i. Cost of labour and materials in constructing surface tank, overhead tank, pipe work
and its pumps.
ii. Cost of cleaning and maintaining tanks, water pipes and water pumps.
iii. Cost of removal of water storage and temporary pipe work and making good ground
disturbed.
iv. Overheads and profits.
The proposed project is with a 12months proposed construction period and pipe born water is
available nearby.
Required Quantity for proposed project, as follows (Assumed)
Sl.
No.
Description Unit Qty.
1 Concrete work m3 1,250
2 Block work m2 10,500

3 Rendering 30 liters/m2 m2 9,854
4 Workman hut Day 20
5 Site accommodation Day 32
Based on given following information, total consummation of water for proposed project.
For concrete work 480liters/m3 # 480 x1250 = 600000 Liters
For Block work 350 liters/m2 # 350 x 10500 = 3675000 Liters
Rendering 30 liters/m2 # 30 x 9854 = 295620 Liters
Workman hut 2000 liters/day # 2000 x 20 = 40000 Liters
Site accommodation 20,000liters/day # 20,000 x 32 = 640000 Liters
Total consummation of water for proposed project = 5,250,620 Liters
Sl.
No.
Description Unit Qty.
Rate in
QR
Amount in
QR
1
Cost of water connection by water
board
LS 1
2,000.00 2,000.00
2.1
Direct labor expenses to install
water line. Includes planning, job
equipment and material acquisition,
area preparation, setup and
cleanup.
Hrs 114
18.00 2,592.00
2.2
Cost of supplies that may be
required to install water line
including: fittings, mounting
hardware and connectors.
Line 1
2,500.00 2,500.00
2.3
Job related costs of specialty
equipment used for job quality and
efficiency, including: pipe cutting
and threading, tubing cutter,
brazing kit and pipe wrenches..
LS 1
1,450.00 1,450.00

3.1
Disconnect water connection by
water board ( Authority charges )
LS 1
10,000.00 10,000.00
3.2
Removal of pipe and making good
defect
Hrs 120
18.00 2,160.00
4 Cost of temporary storage. Gln 1,544,300.00
0.14 216,202.00
236,904.00
5 Overhead and profit (10%)
23,690.40
260,594.40
Note : All rate assumed .
A) PIPE BONE WATER:
1. Cost of water connection by water board
Lump Sum Amount for Water connection (Assumed by previous project) ‐ 10,500.00 QR
11. Cost of labour and material for laying pipes
Item Unit Quantity
Rate
(QR)
Assumed
Amount
Water Line Labor Hrs 113.7 18

Direct labor expenses to install water line. Includes
planning, job equipment and material acquisition, area
preparation, setup and cleanup.
2,046.60
Water Line Job Materials and Supplies
Line 1 2500 2,500.00
Cost of supplies that may be required to install water line
including: fittings, mounting hardware and connectors.
Water Line Equipment Allowance
LS 1 1450 1,450.00
Job related costs of specialty equipment used for job
quality and efficiency, including: pipe cutting and
threading, tubing cutter, brazing kit and pipe wrenches...
5,996.60
B) Cost of Temporary Storage:
Sl. No. Description Unit Qty.
Rate in
QR
Amount in
QR
As per the proposed Temporary
water tank ( Refer attached
Drawings )
1
Cost of labour and materials in
constructing surface tank,
overhead tank, pipe work and its
pumps.
1.1
Labour work for below work for
temporary water tank
10 labours for 10days
Hrs. 1,000
15.00
15,000.00
1.2
Coarse Sand for Basement m3 14
75.00
1,050.00
1.3
Hollow Blocks pieces 150 280 195 Nos 150
2.50
375.00
1.4
Cement Kg 3,267
2.00
6,534.00
1.5
Fine Sand m3 4
50.00
213.00
1.6
Coarse Aggregate m3 5
20.00
100.00

1.7
Reinforcement Bar 6 mm m 164
8.00
1,312.00
1.8
Reinforcement Bar 9 mm m 1,452
10.00
14,520.00
1.9
Steel Channels (7.5 cm x 3.75 cm) m 18
160.00
2,880.00
1.10
Wire Mesh m2 123
20.00
2,460.00
1.11
GI Pipe m m 3
350.00
945.00
1.12
Steel Plate m 1
100.00
100.00
1.13
Pumps Nos 1
750.00
750.00
2
Cost of cleaning and maintaining
tanks, water pipes and water
pumps.
Cost of cleaning and maintaining
tanks, water pipes and water
pumps. ( Including all cost for 1
month )
Monthly 12 2,400.00 28,800.00
3
Cost of removal of water storage
and temporary pipe work and
making good ground disturbed.
Cost of removal of water storage
and temporary pipe work and
making good ground disturbed.
Including Labour and plant and
material cost
Hrs. 250 35.00 8,750.00
Total Cost 83,789.00
4 Overhead and profit (10%) 8,378.90
Total cost with profit 92,167.90
Task 1. Understand the tendering procedures and contractual arrangements
4.1.Describe the stages of open and selective tendering (P4.1)

Open tendering
Introduction:
This requires the Principal to advertise the “Invitation to Tender” in a relevant newspaper,
provide pertinent project details, invite the public to tender and inform prospective tenderers of
the closing place, date and deadline of tender submission This tendering is usually takes the
form of an advertisement in the national or local press stating that tenders are required to carry
out a construction contract. The system has disadvantages and heavy completion for carrying
out the work because any contractor can apply for this type of tender but that specified
contractor must be registered under ICTAD .but this tendering is giving contractors new to an
area or those starting new businesses the chance to tender or establish themselves. Usually
every contractors should be deposit an amount which is refundable or the bond is released on
the submission of a bona fide (legal document) tender.
Advantages
 No charge of favoritism as might be brought where a selected list is drawn
 There is good opportunity is provided for eligible construction to submit a tender,
it might not be included on a selected list.
 It should secure maximum benefit from competition.
Disadvantages
 inexperienced in preparing tender may submit the lowest tender cost.
 It is not confirm or not guarantee that the lowest tender is sufficiently capable or
financially stable.
 Total cost of tendering is increased, as all the tenders will have to recoup their cost
eventually through those tenders which are successful.
Selective tendering
Introduction:
This tendering also follows the same general procedure as Open Tendering with the exception
that only those tendering organisations that have shown prior competence in similar projects
may tender the project. Alternatively, the tendering organisation may acquire this status by
submission and acceptance by the Principal of information relating the organisation’s ability to
execute similar projects. Such information would be furnished and accepted prior to the
Principal inviting a tender. A register is maintained by the Principal and regularly reviewed.
Organisations are invited to tender as work is required after reference to this register
Contractors apply to be included on an approved list maintained by an employing body often an
architectural practice, local authority or statutory body. These organisations have extensive
knowledge and experience of individual contractors and regularly review contractor performance
an approved list. From such lists they are able to select contractors most suited to the contract
the number invited will vary according to the value of the contract.

The main advantage of this system is that the contractors are known and vetted by the
employing authority and be assured as is possible that they will meet their contractual
obligations. The system of vetting usually by pretender questionnaires and the interviewing of
contractors can work against contractors who are trying to establish themselves in a particular
market or newer companies which are expanding. However the system is used extensively
throughout the construction Industry.
There are 2 types of selective tendering:
1. Single stage selectivetendering-
In this tendering, a short list of drawing up to contractors who are considered to be suitable to
carry out the proposed project with considering their sources (financial, labor, machine) . The
names may be selected from an approved list or panel which is maintained by special one or
consultants
. In the letter case the contractors may be invited, through suitably worded advertisement in the
newspaper or press media, to apply to be considered for addition in the tender list.
It is recommended that the number of tenders should be limited to between five and
eight, depending on the size and nature of the contract.
Advantages of this method are;
 This ensure which is only capable and approved firms submit tenders
 It tends to reduce the aggregate cost of tendering
But, the disadvantage is,
 The cost level of the tenders received will be higher, owning to their being less
competitive and also to the high caliber of the tenders
.
2. Two stage selective tendering:
Two stage selective tendering method is used when it is wanted to obtain the benefits of
competition and at the same time to have the benefit of bringing a contractor into the
preparation of the project does make in the use of the practical knowledge and expertise it may
also result in an earlier start on site.
The first stage aims to select an appropriate contractor by means of limited competition. The
second stage is a process of negotiation with a selected contractor on the basis of the first stage
tender
4.2. Analyse the factors that are used to create ‘select lists’ of contractors (P4.2)
Introduction:

Clients to choose tenderers for a project from a standing list of approved contractors, who have
been vetted and pre-qualified for various categories of work at an earlier stage. Contractors are
asked to apply categories which are defined by contract value and nature work.
Resource: In very good contraction it has to be very good capable in reposes of contraction
inputs such as materials which are labor plan and materials. It should be considered preparing
in the select list.
Past project: Client consider about past project of construction when preparing the select list.it
will help to client easily understanding of firms. He see how the past project is & what is the
condition of that? Any errors in that. These are the thing should be considered.
Reputation: Should be considered reputation also because it help to client he wants to build a
very massive & huge building and he will not give that project to normal firm. Finishing of project
is should be effectible. Reputation is build up by good productive work, zero accidents during
construction activities and less failure of work.
Financial stability: Financial thing is should be considerable. Client ensure the financial
stability of the firm in good level. Otherwise client get lose in finishing stage of project.
Records: Clients consider about records of construction which are accidents reports, health
and safety manual, any award in year.it will help to clearly to preparing the select list.
4.3.Evaluate the different forms of contract used in the construction process (P4.3)
Types of Contracts
There are three basic types of contract. Which are as follows:
1. Lump sum contracts
a. Contracts based on drawings and specifications
b. Contracts based on bills of firm quantities
2. Measurement and Value Contracts / Re‐measurable Contracts
a. Schedule of Rates
I. Standard Schedule
II. ‘Ad hoc’ Schedule
b. Bills of Quantities
i. Bills of Quantities from Previous similar Contracts
ii. Bills of Quantities from detail design drawings
3. Cost reimbursement Contracts
a. Cost Plus Percentage Fee
b. Costs Plus Fixed Fee

c. Costs Plus Fluctuating Fee
d. Target Cost / Guaranteed Maximum Price (GMP)
4. Term Contracts
Lump sum contracts
Lump‐sum is a Payment method where the Contractor agrees to complete a specific Scope of
Works for an
agreed lump‐sum price within a specified time period.The JCT (Joint Contracts Tribunal)
Standard Form has a
'With Quantities' and a 'Without Quantities' optionsfor lump sum.
Measurement and Value Contracts / Re‐measurable Contracts
Here the main characteristics are only the unit rates form part of the contract, and the signing of
the contract and commencing of work on site can proceed before completion of the
design.
Cost reimbursement Contracts
These types of contracts are also known as Prime Cost or Cost Plus contracts. Here, the
contractor is
reimbursed the prime costs of labour, materials and plants and a fee is paid for managing the
contract.
Prime Costs mean, the total cost to the contractor of buying materials and goods, of using his
own or hiring
plants and employing labour to carry out construction works.

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