ESTIMATING SERVICES GUIDE PART 1

Version 3.08- Last Edited 03-July-08

Introduction
The preparation of estimates for main contractors is Trevor Sadd Associates (TSAs) core business. The service range offered is extensive and covers all the usual requirements from quantities only through to fully analysed bills (including adjudicated sub contractor quotations) for both traditional and design and build contracts. TSA use a range of estimating software in the production of estimates. However, for larger projects most works are prepared using ConQuest estimating software. This document sets out a number of approaches and whilst the services can be provided as defined there are usually advantages of selecting the most appropriate take off and rating method on a section by section basis. Once we are in possession of your documents the sales department would be pleased to discuss the extent of the services required and advise on the most effective route. Page Content PART A - Measured Estimating Services defining the five basic levels together with cost indices and accuracy percentages, discussion of suitability of schedule types, the usual methods of rating all cross referenced to examples 3 6 10 13 15 17 As Specified Building Sections (Open) Building Sections (Trade) Building Sections (Closed) Comparative (or BCIS) Budget Service Selection Criteria key determining factors to consider when selecting the most appropriate estimating service PART B Other Estimating Services and terminology 17 18 19 Quantities Only Rating Bills of Quantities Definition of Terminology Cost Indexes and Accuracy percentages

This document should be read in conjunction with the following documents: Establishing Construction Costs and Sources of Supply - how TSA establishes your costs including merchant quotations, direct labour, subcontractor quotations, etc.

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Estimating Services Guide Pack (Part 2) - a guide to the page view of breakdowns available as print options for checking and the presentation of bills. Estimating Services Fee Guide for Projects <500,000 which gives an indication of the fees for estimates under 500,000

On most smaller projects work is measured and rated in a software programme called QB. This software offers less options than ConQuest and a detailed description of its use is set out in the booklet Tendering For Profitable Building Work at www.trevorsadd.co.uk/gerload.asp

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Measured Estimating Services

In most tendering situations contractors will elect to use service 1 or 2, depending upon the requirements of the employer.
Name of Service Example Layout Structures Summary Page 4 Bill Page 5 Primary Method of Rating Itemised Accuracy Software Options In ConQuest or QB Cost Index 100

As Specified

+/- 3%

The most popular and accurate format usually set out to suit the employer or employers agents tender requirements. The extent of the cost analysis required by the employers agents often determines not only the layout of schedules but also the layout of bill pages. These kinds of schedules are commonly set out in accordance with SMM7, SMM6, NBS or CPI requirements. However, the use of itemised rates can satisfy virtually all employers agents requirements. Similarly a contractors own need to set out and adjudicate sub contractors rates can also often determine the layouts and the need to use itemised rates. Whilst the use of itemised rates is the primary method of rating it is our usual practice when quoting to allow estimators some flexibility in the rating of some works (especially smaller items) itemised rates would be overly time consuming or expensive to use. For example pricing refurbishment work it is not uncommon to use a range of itemised rates on the major items and assembled (closed) rates on smaller items or where multiple rates are required.

Itemised Rates Where the majority of rates are usually based on the Standard Method of Measurement 7 (SMM7). The standard method defines how work is broken down and measured in simple single trade activities. These individual activity rates are then again broken down into the relevant labour, material and plant etc.

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SM7 Layout

As Specified Summary
Print Summary

SM7 03/07/08 15:55 Page : 29 p 87120.00 0.00 72392.16 26912.00 30556.00 22046.00 0.00 3068.00 17594.00 10698.00 19740.00 20000.00 15734.00 26956.00 13512.00 0.00 30000.00

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Total : 396328.16

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Bill 1 Bill 2 Bill 3 Bill 4 Bill 5 Bill 6 Bill 7 Bill 8 Bill 9 Bill 10 Bill 11 Bill 12 Bill 13 Bill 14 Bill 15 Bill 16 Bill 17

A Preliminaries/general conditions C Existing site/buildings/services D Groundworks E In situ concrete/Large precast concrete F Masonry G Structural/Carcassing metal/timber H Cladding/Covering J Waterproofing K Lining/Sheathing/Dry partioning L Windows/Doors/Stairs M Surface finishes N Furniture/Equipment P Building fabric sundries Q Paving/Planting/Fencing/Site furniture R Disposal system X Transport system Y Mechanical /Electrical services measurement

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SM7 Layout D Groundworks Item D GROUNDWORK D20 Excavating and Filling Site Preparation A Clearing site vegetation Excavating topsoil for preservation B Average depth 150mm Disposal C Description

As Specified Page
Quantity Unit

SM7 26/06/08 13:09 Page : 3

Rate

12500

m2

1.63

20375.00

12500

m2

Excavated material ; On site; Distance not exceeding 100m Excavating trenches exceeding 300mm wide

Maximum depth not exceeding 1.00m ; Commencing at starting level Disposal

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180 m3 162 m3 101.25 m3

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5.78 36.16 27.47 To Collection

1875

m3

Excavated material ; Off site Filling to make up levels ; Hardcore filling

As

Average thickness not exceeding 0.25m ; In 150mm layers

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1.68 21000.00 11.38 21337.50 1040.40 5857.92 2781.34 72392.16

Name of Service

Example Layout Structures Summary Page 8 Bill Page 9

Primary Method of Rating Open Assembled

Accuracy

Software Options In ConQuest or QB

Cost Index 85

Building Sections (Open)

+/- 4%

TSAs own in-house methodology allowing smaller plan and specification projects to be taken off in a faster (but slightly less accurate) way. Usually used in the preparation of lump sum tenders where the employer or the employers agent does not require a detailed breakdown analysis at the tender stage or where the contractor can negotiate or determine their own breakdowns. The building sections service is only available where: The work taken off constitutes buildings The buildings are of a residential and sometimes commercial nature The construction method is of a common or traditional nature TSA have already (or it would be worthwhile creating) rate schedules and models similar to those required to measure the project in hand.

This system is not appropriate for work of a specialist nature. This layout and rating method are less suited to some sub contract quotations as there is a minor measurement error (range % to %) due to the use of centre lines in measurement. Mechanical and electrical service providers are not affected. Where a number of sub contractor quotations are required the building sections (trade) bill is recommended. In the right circumstances this lower cost approach can however be used to provide a lump sum tender which can then be modified to provide second stage figures to accord with an employers agent requirements. This can, on a single project, ultimately prove to be more expensive than the production of an As Specified estimate service. There is however still a saving when you allow for the saving over the average tendering win ratios contractors work to. Contractors need to allow at least 2-3 days for the modification of a building sections (open) estimate, beyond the days of request. Modifications can take up to 7 days depending on the size of the job. Whilst the use of open assembled rates is the primary method of rating it is our usual practice when quoting to allow estimators some flexibility in the rating of some works (especially smaller items) open assembled rates would be overly time consuming or expensive to use. For example pricing refurbishment work it is not uncommon to use a range of open assembled rates on the major items and assembled (closed) rates on smaller items or where multiple rates are required.

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Opened Assembled Rates

The term Assembled Rates is used to describe a section or area of work where different types of work (normally measured separately) are assembled such that they can be measured together as a single rate. For example: measuring a traditional 1m deep x 600mm wide foundation detail under SMM7 would require the separate measurement and rating of nine items under four separate bill headings. When using an assembled rate we measure the whole detail as one item by the linear metre. (The build up of these rates is set out on page 12) Specification: Foundation to DPC External walls 1.00m deep 600mm wide x 250mm deep Gen1 concrete 225mm trench blocks 100mm block / 102mm brick cavity wall Weak mix cavity fill Polythene DPC Open Assembled Rates (see example page 9) where the individual rates are assembled together on one page. There is a small measurement error when using centre lines. In the above example the additional brickwork or a reduction in the blockwork to external corners, etc. As the balancing effect of these cost differences over a whole project is not that significant it usually adds a margin of between % - % to the estimated cost. This error can however become an issue where sub contractor quotations are required. A list of adjustements is available from TSA should you wish to consider the effects of these differences when ordering materials.

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Building Section Bill

Building Section Summary

Print Summary

BSEC 03/07/08 16:40 Page : 44 p

Bill 1

Bill 2

Bill 3

Bill 4

Bill 5

Bill 6

Bill 7

Bill 8

or

General 01 Tender Notes 02 Terrms & Conditions 04 Preliminaries 05 Provisional Sums EMP 06 Provisional Sums TSA 07 Major Dimension Check Site Works 10 Demolition / Site works 12 Alterations Substructure 21 Foundations to DPC 23 Ground Floors Structure 30 External doors and reveals 31 External Windows and reveals 32 External walls 33 External walls garage 34 Timber Frame 36 Fires Flues Chimneys 40 Internal Doors and Screens 42 Internal Partitions 44 Steelwork 46 Intermedediate Floors 48 Stairs Roof 50 Ceiling Againts Roof 51 Roof Pitched Structure 52 Roof Covering 53 Roof Flat Structure and Surface 54 Dormers & Rooflights 55 RoofTrims Edges Rainwater Fixture and fittings 60 Internal trims joinery etc 62 Wall Finishes and Tiles 63 Floor Finishes and Tiles 66 Kitchen and Utility 68 Bathroom and En'Suite Services 70 Domestic Plumbing 75 Heating Wet 76 Heating Electic 77 Electricity Externals 80 Drainage Below Ground

0.00 0.00 0.00 0.00 0.00 0.00

As
Total :

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59.27 1004.90 6105.04 8111.30 15571.15 0.00 24979.74 0.00 3060.00 0.00 0.00 1745.50 2967.47 783.00 0.00 9315.00 0.00 4572.60 3930.39 790.17 9612.84 1774.23 4000.00 1200.00 10487.20 0.00 0.00 8007.00 500.00 118576.80

0.00 0.00

Trevor Sadd Assiciates Building Section Bill 21 Foundations to DPC Item C

Building Section Open Page

Description Quantity Unit

BSEC 03/07/08 16:37 Page : 1 Substructure Rate p

Quanties reduced 1m run to show build up Building section open for foundaton D GROUNDWORK D20 Excavating and Filling Excavating trenches exceeding 300mm wide

0.00

0.00

Disposal E Excavated material ; Off site E IN SITU CONCRETE/LARGE PRECAST CONCRETE E05 In situ concrete construction generally Plain Concrete Concrete 1:3:6; ordinary portland cement; 20mm aggregate Foundations F Generally F MASONRY F10 Brick/Block walling 0.4

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0.15 0.75 0.03

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m3 83.04 12.46 m2 21.53 16.15 m3 106.00 3.18

Walls ; half lap bond G 100mm ; vertical

E05 In situ concrete construction generally Plain Concrete

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Concrete 1:3:6; ordinary portland cement; 20mm aggregate Filling hollow walls Thickness not exceeding 150mm

oe

E IN SITU CONCRETE/LARGE PRECAST CONCRETE

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Dense aggregate concrete blocks; compressive strength 7.0N/mm2; in cement mortar (1:3)

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m3

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36.16

Maximum depth not exceeding 1.00m ; Commencing at starting level

0.6

m3

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5.78 3.47 14.46

Name of Service Building Sections (Trade)

Example Layout Structures Summary Page 11 Bill Page 12

Primary Method of Rating Itemised

Accuracy

Software Options In ConQuest or QB

Cost Index 95

+/- 3%

Similar in many respects to the As specified service above but where the contractor has more choice in relation to the breakdowns to be supplied to employers. The methodology used in this layout or schedule type is based on that in taking off building sections using assembled open rates, which are then transferred into this building sections (trade) bill, deriving benefit from the faster and sometimes more complete process adopted in building sections takeoffs. In most cases (depending on contractor requirements) quantity adjustments are then also made to correct for any centre line inaccuracies as described within the earlier section. The service is ideally suited to residential and commercial projects where a substantive part of the work is to be let on a sub contract basis. In certain circumstances the data provided is preferred by managers who prefer to see the work organised in packages A trade format can provide an easier format when transposing data into projects plans.

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Trade Section Bill Print Summary Bill 1 General 01 Tender Notes 02 Terrms & Conditions 04 Preliminaries 05 Provisional Sums EMP 06 Provisional Sums TSA 07 Major Dimension Check Site Works 10 Demolition / Site works 12 Alterations Substructure 20 Excavation 21 Foundations to DPC 23 Ground Floors Structure 30 External doors and reveals 31 External Windows and reveals 32 External walls 33 External walls garage 34 Timber Frame 36 Fires Flues Chimneys 40 Internal Doors and Screens 41 Glazing 42 Internal Partitions 44 Steelwork 46 Intermedediate Floors 48 Stairs Roof 50 Ceiling Againts Roof 51 Roof Pitched Structure 52 Roof Covering 53 Roof Flat Structure and Surface 54 Dormers & Rooflights 55 RoofTrims Edges Rainwater Fixture and fittings 56 Render Plaster and Screed 57 Drylining 60 Internal trims joinery etc 62 Wall Finishes and Tiles 63 Floor Finishes and Tiles 64 Decoration Internal 65 Decoration Externaly 66 Kitchen and Utility 68 Bathroom and En'Suite Services 70 Domestic Plumbing 75 Heating Wet 76 Heating Electic 77 Electricity Externals 80 Drainage Below Ground

TRADE 26/06/08 13:48 Page : 53 p

0.00 0.00 0.00 0.00 0.00 0.00

Bill 2

Bill 3

Bill 4

Bill 5

As
Total :
Page 11 of 19

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Bill 6

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Bill 7

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Bill 8

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2405.89 1856.75 1004.90 4517.00 5499.34 13371.15 0.00 24979.74 0.00 3060.00 2700.00 0.00 0.00 1095.50 2967.47 133.00 0.00 9315.00 0.00 4272.60 3630.39 2300.00 0.00 790.17 9612.84 1774.23 1500.00 1300.00 4000.00 1200.00 10487.20 0.00 0.00 8007.00 500.00 122280.17

0.00 0.00

Trevor Sadd Assiciates Trade Section Bill 20 Excavation Item D GROUNDWORK D20 Excavating and Filling Site Preparation Description

Trade Page
Quantity Unit

TRADE 26/06/08 13:12 Page : 1 Substructure Rate p

Excavating topsoil for preservation B Average depth 150mm Disposal C Excavated material ; On site; Distance not exceeding 25m Excavating trenches exceeding 300mm wide D Maximum depth not exceeding 1.00m ; Commencing at starting level Disposal E Excavated material ; Off site 300

m2

45

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m3 8.75 m3 5.78 m3 36.16 To Collection

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24.3 24.3

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1.68 504.00 393.75 140.45 878.69 2405.89

Clearing site vegetation

300

m2

1.63

489.00

Name of Service

Example Layout Structures Summary Page 8 Bill Page 14

Primary Method of Rating Closed Assembled

Accuracy

Software Options In ConQuest only

Cost Index 75

4. Building Sections (Closed)

+/- 6%

Ideally suited where fast and reasonably accurate budgets or base costs for design and build or pre-tender projects are required. Again using TSAs in-house methodology with closed assembled rates within the 3. Building Sections format. This approach is not, however, suitable for all types of work and is rarely used over all areas of a schedule. Factors to consider when choosing this methodology include: There are minor measurement errors in the quantities of certain items as described in the open assembled rates section. Breakdowns may not match those required in the tender documents. The approach can be unsuitable where a range of sub contractor quotations are to be sought and adjudicated. The layout of schedules can make adjudication more time consuming.

It is possible to provide a breakdown of closed assembled rates by copying, altering descriptions and deleting the unwanted elements. This is however a more expensive process than the open assembled rate system.

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Trevor Sadd Assiciates Building Section Bill Closed Assembled 21 Foundations to DPC Item Description STRIP FOUNDATION (Trench 1.00m deep x 600mm wide)

Building Section (Closed)

Quantity Unit

BSCLOSE 26/06/08 13:17 Page : 1 Substructure Rate p

As
45 m 107.88 4854.60 To Collection 4854.60

Excavate foundation trench in firm soil not exceeding 1.00m deep by JCB 3CX and set aside in spoil heaps; Muck away soil only including loading with JCB 3CX and all tipping charges etc.; Compacting surface of excavations with plate compactor; In-situ concrete to plain foundations GEN 1 with ready mix; 275mm trench blocks laid in 1:4 masonry cement below DPC; 100mm lightweight 7KN blockwork in 1:4 cement mortar in single or skin of hollow wall below DPC; Facing brick wall 102mm thick stretcher bond in 1:4 cement mortar flush pointed one side; In-situ concrete weak mix in filling cavity wall 1:12 site batched by volume or 180 Kgs OPC per m3 ballast; 100mm concrete wall lintel over drains. Damp proof course polypropylene 100mm laid in mortar or pinned to frames; Back fill foundation trench by hand with arisings from excavation.

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Strip foundation 1.00m deep x 600mm wide by JCB, muck away by lorry, compact, 250mm deep GEN 1 ready mixed concrete, 450mm high trench blocks, 450mm high 102mm brick/100mm block cavity wall, polythene DPC and backfill.

Name of Service

Example Layout Structures Summary Page 16

Primary Method of Rating Comparative

Accuracy

Software Options In Excel / ConQuest

Cost Index 50

Comparative (or BCIS) Budget

+/- 12%

Comparative budgets are generally used at the feasibility stage (and during the early stages of design process) where a rough generalised budget is required on larger projects. The accuracy, as always, depends upon the status of the design work and the degree to which the new and the comparative can be understood and compared. In most cases comparative estimates are calculated using a previously rated similar project. This technique can also prove effective when a purchaser has a detailed knowledge of the actual cost of a base project from which competitive costs can be derived or where an element of work can be priced in detail to form the comparative basis for the other parts. Comparative budgets are usually provided in spreadsheet format in which the project is broken down into 15 25 sections (or heads) which are then quantified and rated on an: item, m, m2 or m3 basis to totalled sums. It is also important to ensure that budgets are properly qualified especially where they may form the basis of negotiation for future works Budgets are not, however, suitable for tendering purposes. We can also use the BCIS methodology where data is supplied in that format. It is however, in our view, less accessible to end users. The building cost information service (BCIS) model for the analysis of construction costs is a system devised by the Royal Institute of Chartered Surveyors (RICS) such that terms on which budgets analysis were prepared were defined and that data could be collected as part of their cost analysis service. It has through common usage become the budget system of most surveyors. And many schedules are set out such that its analysis can be used in relation to market based analysis.

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Example of a Comparative (Budget Estimate)

QB Sections Nett Totals 7,218.19 24,924.75 3,388.80 8,544.55 10,821.66 9,773.28 5,081.28 4,161.52 13,630.99 16,958.91 2,530.14 6,592.20 3,995.11 1,222.07 12,583.29 7,515.14 1,556.26 6,157.10 1,247.91 2,162.90 6,150.80 3,497.22 6,445.58 6,127.05 172,286.70 O/H & Profit 17.5% 17.5% 17.5% 17.5% 17.5% 17.5% 17.5% 17.5% 17.5% 17.5% 17.5% 17.5% 17.5% 17.5% 17.5% 17.5% 17.5% 17.5% 17.5% 17.5% 17.5% 17.5% 17.5% 17.5% 1,263.18 4,361.83 593.04 1,495.30 1,893.79 1,710.32 889.22 728.27 2,385.42 2,967.81 442.77 1,153.64 699.14 213.86 2,202.08 1,315.15 272.35 1,077.49 218.38 378.51 1,076.39 612.01 1,127.98 1,072.23 30,150.17 Gross Totals 8,481.37 29,286.58 3,981.84 10,039.85 12,715.45 11,483.60 5,970.50 4,889.79 16,016.41 19,926.72 2,972.91 7,745.84 4,694.25 1,435.93 14,785.37 8,830.29 1,828.61 7,234.59 1,466.29 2,541.41 7,227.19 4,109.23 7,573.56 7,199.28 202,436.87 Unit 4 Quantity 238.76 238.76 19.00 130.00 30.06 21.30 36.00 1.00 27.00 238.76 238.76 109.32 1.00 238.76 1.00 125.77 133.69 194.00 3.00 238.76 2.50 238.76 238.76 238.76

Trevor Sadd Associates

Unit m2 m2 m m2 m2 m2 m2 nr nr m2 m m2 nr m2 Ratio m2 m2 m2 nr m2 nr m2 m2 m2 Cost (m2) 35.52 122.66 209.57 77.23 423.00 539.14 165.85 4,889.79 593.20 83.46 12.45 70.85 4,694.25 6.01 14,785.37 70.21 13.68 37.29 488.76 10.64 2,890.88 17.21 31.72 30.15 Comments Total 8,481.37 29,286.58 3,981.84 10,039.85 12,715.45 11,483.60 5,970.50 4,889.79 16,016.41 19,926.72 2,972.91 7,745.84 4,694.25 1,435.93 14,785.37 8,830.29 1,828.61 7,234.59 1,466.29 2,541.41 7,227.19 4,109.23 7,573.56 7,199.28 202,436.87

QB Sections

Nett Totals

O/H & Profit

Gross Totals

so
Unit 1 Quantity Unit Cost (m2) 321.64 321.64 200.09 39.59 15.82 1.00 9.00 321.64 321.64 121.55 1.00 321.64 1.80 144.23 200.09 302.01 6.00 321.64 4.00 321.64 321.64 321.64 m2 m2 m m2 m2 m2 m2 nr nr m2 m m2 nr m2 Ratio m2 m2 m2 nr m2 nr m2 m2 m2

8 10 20 23 26 29 31 36 38 42 44 46 48 51 54 57 60 63 69 72 77 79 81 86

Demolition / Site Prep Alterations Foundations to DPC Ground floors Ext doors and reveals Ext windows and reveals External walls Fire flues and chimneys Int doors and screens Internal partitions Steelwork Intermediate floors Stairs Int trims joinery etc. Kitchen and utility Ceiling against roof Roof pitched structure Roof pitched covering Dormers and rooflights Roof trims and edges R/W Bathrooms and en-suite Domestic plumbing Heating wet Electricity

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Comments 35.52 122.66 209.57 83.01 423.00 584.14 165.85 4,889.79 668.20 83.46 12.45 70.85 4,694.25 6.01 14,785.37 70.21 13.68 37.29 488.76 10.64 2,890.88 17.21 31.72 30.15 A B C

Comments A Increase change insulation B Extra Cost Hardwood windows C Extra Cost Purpose made Hardwood doors

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8 10 20 23 26 29 31 36 38 42 44 46 48 51 54 57 60 63 69 72 77 79 81 86

Demolition / Site Prep Alterations Foundations to DPC Ground floors Ext doors and reveals Ext windows and reveals External walls Fire flues and chimneys Int doors and screens Internal partitions Steelwork Intermediate floors Stairs Int trims joinery etc. Kitchen and utility Ceiling against roof Roof pitched structure Roof pitched covering Dormers and rooflights Roof trims and edges R/W Bathrooms and en-suite Domestic plumbing Heating wet Electricity

Unit 4 only was measured and rated for this client.

dd

The remaining 3 units were then simply costed on a proportionate basis.

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Total 11,425.49 39,452.74 16,609.39 16,746.66 9,241.04 4,889.79 6,013.80 26,843.82 4,004.89 8,612.39 4,694.25 1,934.38 26,613.66 10,126.36 2,736.82 11,262.47 2,932.59 3,423.60 11,563.50 5,535.66 10,202.54 9,698.35 244,564.19

Service Selection Criteria

There are often a number of determining factors to consider when selecting the most appropriate estimating service: 1. Tender Requirements Usually meaning is there a requirement within the tender documents as to whether a specific breakdown is required. In some circumstances a failure to follow the requirements of tender documents can exclude a tender from the selection process. 2. How the Estimate or Tender is to be Used In circumstances where 1. above is not a requirement of where terms can be varied alternative formats such as trade sections or building sections can provide a more effective layout. For example building sections can assist designers in comparing costs during a value engineering exercise prior to submitting a design and build tender. 3. The Degree of Accuracy or Competitiveness Required Usually depends on a contractors desire to secure a project or minimise the risks associated with that project. On larger projects the use of carefully prepared sub contractor quotations usually assists in both aspects. 4. The Capability of the Software Used Service 4 is only available in ConQuest. 5. The Cost or Estimating Budget Available based on 1 to 4 above - which service offers the best value at this stage? In practice most estimates are often a combination of service types as the requirements of the employer / the employers agent and the contractor will vary in relation to the individual sections project. In some circumstances tenders may require breakdowns that contractors or sub contractors do not wish to provide.

Name of Service 6. Quantities Only

Example Layout Structures N/A

Primary Method of Rating N/A

Example Accuracy +/- 3%

Software Options In ConQuest or QB

Cost Index 75

This as measured from plans service provides contractors with builders quantities that they can use to rate work themselves. The descriptions used and quantities provided are not however suitable as specifications or for billing work. Quantities are also not provided to a full SMM7 standard as default and an additional fee may apply should such a service be required.

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Name of Service 7. Rating Bills of Quantities

Example Layout Structures N/A

Primary Method of Rating Itemised

Example Accuracy +/- 3%

Software Options In ConQuest or QB

Cost Index 85

The service as quoted applies to the rating of properly measured SMM7 bills of quantities where full documentation is supplied. Where bills are in their provision agreed as correct, an additional charge would be required if we are to complete basic checks as to the measurements.

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Definition of Terminology: Accuracy

The term accuracy within these documents is used in relation to our ability to predict a contractors actual costs in relation to a specific project. It is not the prediction of an average or market rate. The accuracy in relation to any estimate is dependent upon a number of factors: The quality of the design information supplied The qualification of ambiguous items (including contractual clauses) The quality of the cost information supplied by the main contractor including where appropriate, the details of selected sub contractors A proper timeframe within which unknown costs can be sourced That the work is properly adjudicated including adjustments for rebates, buy down, and in some cases productivity (especially where bonus or incentive schemes are used)

All of these factors can affect the accuracy percentages added. For example when working with property developers on house type variants where original costs are known, accuracy levels can on a budget estimate be as high, if not higher than those on a poorly presented or adjudicated full as specified takeoff. The document Improving Commercial Accuracy and Success Rates gives examples of variation in relation to the various elements and how these can be reduced.

Cost Index
The cost indexes give a rough indication of the differences in costs between different services, with the 1. As Specified forming the base of 100. These average indices have been derived from an analysis of our own costs in relation to a number of projects. When considering the underlying data it is noteworthy that the variance in the cost of projects is significant and the bands around the averages are wide. Again the requirements of the employers agent and the quality of the documentation provided can have a significant effect on cost. Projects with a significant amount of duplication (e.g. housing estates) would have a much lower cost index.

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