An Introduction to Civil Engineering Cost Management

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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

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An Introduction to Civil Engineering Cost Management

  1. 1. An introduction to Civil Engineering Cost Management Mark Wearen – Associate Director, Bruce Shaw MSCSI MRICS MCInstCES MCIOB March 2013
  2. 2. An introduction to Civil EngineeringCost 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. 3. An introduction to Civil EngineeringCost 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. 4. Global Construction ConsultantsOffice Locations20 Global Offices throughoutthe GCC, Europe, USA & Asia PacificProject Locations150 cities in over 40 countriesMarch 2013
  5. 5. Key Clients Include…March 2013
  6. 6. An introduction to Civil EngineeringCost Management What is Civil Engineering ?
  7. 7. An introduction to Civil EngineeringCost 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. 8. An introduction to Civil EngineeringCost 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. 9. An introduction to Civil EngineeringCost Management ESTIMATING – APPROACHES AND KEY RISKS
  10. 10. An introduction to Civil EngineeringCost 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. 11. An introduction to Civil EngineeringCost 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. 12. An introduction to Civil EngineeringCost 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. 13. An introduction to Civil EngineeringCost 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. 14. An introduction to Civil EngineeringCost 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 BulkingMarch 2013
  15. 15. An introduction to Civil EngineeringCost Management Estimating & CM Approach - Bulk Earthworks Example Proposed Level Existing Level 2m 100 m Site Cross-Section March 2013
  16. 16. An introduction to Civil EngineeringCost ManagementEstimating & 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. 17. An introduction to Civil EngineeringCost ManagementEstimating & 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. 18. An introduction to Civil EngineeringCost Management QUANTIFYING CONTINGENCY
  19. 19. An introduction to Civil EngineeringCost Management Risk Management and Contingency  Guess  Historical Precedent  Defined Allowances (e.g. Optimism Bias)  Quantified Risk Analysis March 2013
  20. 20. An introduction to Civil EngineeringCost Management The British Department for Transport Procedures for Dealing with Optimism Bias in Transport Planning - Guidance Document June 2004 March 2013
  21. 21. An introduction to Civil EngineeringCost Management Post Contract Cost Management
  22. 22. An introduction to Civil EngineeringCost 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. 23. An introduction to Civil EngineeringCost Management FORMS OF CONTRACT
  24. 24. An introduction to Civil EngineeringCost 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. 25. An introduction to Civil EngineeringCost Management METHODS OF MEASUREMENT
  26. 26. An introduction to Civil EngineeringCost 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. 27. An introduction to Civil EngineeringCost Management USEFUL LINKS
  28. 28. An introduction to Civil EngineeringCost ManagementUseful 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. 29. An introduction to Civil EngineeringCost ManagementUseful 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. 30. An introduction to Civil EngineeringCost ManagementUseful 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. 31. An introduction to Civil EngineeringCost Management Civil Engineering Experience
  32. 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. 33. Thank YouAn introduction to Civil Engineering Cost Management Mark Wearen – Associate Director, Bruce Shaw MSCSI MRICS MCInstCES MCIOB March 2013

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