An Introduction to Civil Engineering Cost Management - aimed at Quantity Surveyors and Commercial Managers interested in learning about civil engineering cost management with a particular focus on risk management and mitigation

1. An introduction to Civil Engineering Cost Management
Mark Wearen – Associate Director, Bruce Shaw
MSCSI MRICS MCInstCES MCIOB
March 2013

2. An introduction to Civil Engineering
Cost Management
 Bruce Shaw an internationally-acclaimed group of 300
construction professionals.
 We service clients in 150 cities in over 40 countries.
 Highest standards of quantity surveying, project management and
consultancy to the global construction industry.
Global Expertise, Local Knowledge
March 2013

3. An introduction to Civil Engineering
Cost Management
 ISO 9001/14001 accredited
 Dedicated Specialist Divisions Include:
 Cost Management / Quantity Surveying - Civils/ Industrial/
Retail/ Leisure/ Healthcare/ Education/ Residential/MEP
 Project Management
 Procurement
 Insurance
 Program Management
 Health & Safety
Global Expertise, Local Knowledge
March 2013

4. Global Construction Consultants
Office Locations
20 Global Offices throughout
the GCC, Europe, USA & Asia Pacific
Project Locations
150 cities in over 40 countries
March 2013

5. Key Clients Include…
March 2013

6. An introduction to Civil Engineering
Cost Management
What is Civil Engineering ?

7. An introduction to Civil Engineering
Cost Management
What is Civil Engineering ?
‘The whole of non-military engineering at the timing of the founding of the ICE in 1818, but now
excluding chemical, electrical, electronic, marine, mechanical engineering etc…it includes airfields,
bridges, canals, docks, foundations, harbours, offshore construction, railways, river basis management,
roads, sewage treatment, soil mechanics, structural design, traffic engineering, tunnels, water supply
etc…’
Penguin Dictionary of Civil Engineering, Fourth Edition
‘…civil engineering (the branch of engineering concerned with the design and construction of such
public works as dams or bridges)…’
http://wordnetweb.princeton.edu/perl/webwn?s=civil%20engineering
‘Civil engineering includes the planning, designing, construction, and maintenance of structures and
altering geography to suit human needs. Some of the numerous subdivisions are transportation (e.g.,
railroad facilities and highways); hydraulics (e.g., river control, irrigation, swamp draining, water supply,
and sewage disposal); and structures (e.g., buildings, bridges, and tunnels).’
http://www.reference.com/browse/engineering
‘The technical design and construction of public works (buildings, roads, harbours, public greens ...)
and/or technically equivalent private (usually corporate) ones’
http://en.wiktionary.org/wiki/civil_engineering
March 2013

8. An introduction to Civil Engineering
Cost Management
Sectors
 Highways
 Railways – Light and Heavy Rail
 Marine Engineering – Ports and Coastal Protection
 Airports – Runway Construction
 Energy – Power Distribution and Generation
 Utilities
 Environmental – Water and Waste (e.g. Landfill)
 Site Development
March 2013

9. An introduction to Civil Engineering
Cost Management
ESTIMATING – APPROACHES AND KEY RISKS

10. An introduction to Civil Engineering
Cost Management
Estimating (1 of 4)
 Identify Key Features and Risks
 Key Quantities – fewer items…less transparent…sub-division
 Method Related Charges – ‘not proportional to the quantities’*
 Temporary Works
 Preliminaries
 Bulk Earthworks – Materials Management
 Project Specific Variables - RESOURCES AND TIME – what
problem does this pose ?
*CESMM3 Handbook, Section 7, Para 5
March 2013

11. An introduction to Civil Engineering
Cost Management
Estimating (2 of 4)
 Key Risks
 Location - Access
 Ground Conditions / Unforeseen Obstructions – Proportion
of Work Below Ground…
 Archaeology
 Utilities / Statutory Undertakers
 Possessions – Railways/Ports/Roads
 Environmental
 Inflation
 Weather – Seasonal Impacts
March 2013

12. An introduction to Civil Engineering
Cost Management
Estimating (3 of 4)
 Bulk Earthworks
 Materials Classifications
 Earthworks Balance - Equation
 Import – Borrow Pits and Quarries
 Bulking
 Mass Haul
 Cycle Times
 Weather – Materials and Productivity
March 2013

13. An introduction to Civil Engineering
Cost Management
Estimating (4 of 4)
 Measurement Software – Areas and Volumes
 Atlas SCC
 Trimble Terramodel
 LSS DTM Software
 Earth
 Mudshark
 Design Software – Volumes
 Bentley MX Moss
 CivilCad
March 2013

14. An introduction to Civil Engineering
Cost Management
Estimating – Measurement Example
 Bulk Earthworks
 100m x 100m site – toll plaza approach – total plan area 10000 m2
 Site is split level – 2 m differential at mid-point – could be sloping
 100mm Topsoil
 100mm unsuitable/unacceptable (US)
 50% of balance is Hard Material – Granite (no weathered material) – unsuitable
in it’s natural state – 100% suitable for processing as capping/suitable
 Balance is suitable/acceptable (general fill)
 Soft Spots – 100m3 – spread evenly around the site – filled with suitable (<25m3
– US if greater)
 500mm Capping (Rockfill/Hardcore)
 Final Surface – Formation – Average level plus 1 m
 Ignore transition detail
 Assume no Bulking
March 2013

15. An introduction to Civil Engineering
Cost Management
Estimating & CM Approach - Bulk Earthworks Example
Proposed Level Existing Level
2m
100 m
Site Cross-Section
March 2013

16. An introduction to Civil Engineering
Cost Management
Estimating & CM Approach – BULK EARTHWORKS EXAMPLE
Ave
Width CSA Length Volume Notes
Depth
m m m2 m m3
Cutting Cut TS 0.1 50 5 100 500
US Soft 0.1 50 5 100 500
US Hard Rock 0.15 50 7.5 100 750 Capping Displacement
SU 0.15 50 7.5 100 750 Capping Displacement
Soft Spots 50 50% Allocation
Total Dig Volume 2550
Fill Capping 0.5 50 25 100 2500 Capping Material
Void 0 50 0 100 0
Embankment Seat TS 0
US 0
Soft Spots 50 Suitable Material
Total Fill Volume 2550
Fill (Embankment) Cut TS 0.1 50 5 100 500 Topsoil Depth
US Soft 0.1 50 5 100 500 US
US Hard Rock 0 50 0 100 0
SU 0 50 0 100 0
Soft Spots 50 50% Allocation
Total Dig Volume 1050
Fill Capping 0.5 50 25 100 2500
Suitable (Void) 1.5 50 75 100 7500 Underside of Capping to EGL
Embankment Seat TS 500
US 500
Soft Spots 50
Total Fill Volume 11050
March 2013

17. An introduction to Civil Engineering
Cost Management
Estimating & CM Approach – BULK EARTHWORKS EXAMPLE
Ave
Width CSA Length Volume Notes
Depth
m m m2 m m3
Topoil Strip 1000
Excavation Suitable 750
Unsuitable 1750
EO Rock 750
Processing Rock to Capping 750
Disposal Topsoil 1000 Typically for Resoiling/Stockpiling
Suitable 0 All utilised
Unsuitable 1000 Excavated less Processed
Import Capping 4250 Total less Processed
Suitable 6750 Total less excavated
Compaction 13600 Total Fill - Capping plus Suitable
Soft Spots 100 Measured Seperately
March 2013

18. An introduction to Civil Engineering
Cost Management
QUANTIFYING CONTINGENCY

19. An introduction to Civil Engineering
Cost Management
Risk Management and Contingency
 Guess
 Historical Precedent
 Defined Allowances (e.g. Optimism Bias)
 Quantified Risk Analysis
March 2013

20. An introduction to Civil Engineering
Cost Management
The British Department for
Transport Procedures for Dealing
with Optimism Bias in Transport
Planning - Guidance Document
June 2004
March 2013

21. An introduction to Civil Engineering
Cost Management
Post Contract Cost Management

22. An introduction to Civil Engineering
Cost Management
Post Contract Cost Management
 Read and Apply the Contract
 The 3 R’s…..Records Records and more Records
 As-Built Information – Quantities / Surveys / Classifications
 Returns v Allocation Sheets
 Photo and Video Records – High Definition
 Site Diaries
 Progress Reports
 Cost Management tools – Registers / Scott Schedule (see NRA CAG)
March 2013

23. An introduction to Civil Engineering
Cost Management
FORMS OF CONTRACT

24. An introduction to Civil Engineering
Cost Management
Forms of Contract
Ireland
 IEI 3rd Edition 1980 Rev and Reprinted Oct 1990
 PWC – Minor Works and Civil Engineering Options
International
 FIDIC Suite (1999) – Red and Yellow Books
 ICE
 NEC3 Suite of Contracts – Options A, B and C
 IChemE Suite of Contracts – ‘Brown Book’
March 2013

25. An introduction to Civil Engineering
Cost Management
METHODS OF MEASUREMENT

26. An introduction to Civil Engineering
Cost Management
Methods of Measurement
 ARM
 SMM
 CESMM3 / CESMM4 (recently published)
 NRA Method of Measurement
 MMRB (Roads and Bridges)
 MMHW (Highway Works)
 POMI (Principles of Measurement International)
March 2013

27. An introduction to Civil Engineering
Cost Management
USEFUL LINKS

28. An introduction to Civil Engineering
Cost Management
Useful Links :
Contract Administration on Public Works Projects:
http://www.nra.ie/Publications/ContractAdministrationGuidelines
www.constructionprocurement.ie (CWMF)
Contracts Overview :
http://fidic.org/node/149
http://www.icheme.org/resources/forms_of_contract/history.aspx
http://www.neccontract.com/about/ContractDownloads.asp
http://www.out-law.com/en/topics/projects--construction/construction-standard-form-
contracts/
Risk Analysis :
http://www.palisade.com/risk/
March 2013

29. An introduction to Civil Engineering
Cost Management
Useful Links :
Rates and Prices :
 NRA Schedule of Rates
http://www.nra.ie/Publications/DownloadableDocumentation/CostEstimationD
ocumentation/file,10429,en.pdf
 CECA Schedule of Dayworks Rates (previously the FCEC)
http://www.ceca.co.uk/publications/ceca-schedules-of-dayworks-carried-out-
incidental-to-contract-work-(august-2011).aspx
Professional Institutions:
 Society of Chartered Surveyors Ireland http://www.scsi.ie
 Chartered Institution of Civil Engineering Surveyors http://www.cices.org/
 Engineers Ireland http://www.ei.ie
 Institution of Civil Engineers http://www.ice.org.uk/
March 2013

30. An introduction to Civil Engineering
Cost Management
Useful Links :
Plant and Equipment – Productivity:
 Caterpillar Handbook
http://www.warrencat.com/images/pdf/CaterpillarPerformance
Handbook42.pdf
Further Education
 DIT Masters in Applied Construction Cost Management
http://www.dit.ie/postgrad/programmes/dt164mscinappliedcon
structioncostmanagement/
March 2013

31. An introduction to Civil Engineering
Cost Management
Civil Engineering Experience

32. Some of our Projects…
Hilton Barbados
600Nr Beds
DolWin1 Baltic Cable Dublin Port Tunnel
East West Interconnector
Midlands Power Stations
NRA Service Areas
New Black Sea Port Irish Rail Coastals
Bruce Shaw Engineering
Metro North Greater Dublin Area Transportation Strategy
Saudi Aramco
Bord Gais Wind Farms
Abu Dhabi International Airport
M50 Widening
March 2013

33. Thank You
An introduction to Civil Engineering Cost Management
Mark Wearen – Associate Director, Bruce Shaw
MSCSI MRICS MCInstCES MCIOB
March 2013