Once the builder has received drawings as well as specifications for the intended project, he/she compiles a comprehensive list of the required materials, the costs of these materials, labor time cost, cost of installation and the cost of doing the work.The Bill of Quantities (B.O.Q) is compiled in line with trades and activities that are undertaken throughout the entire construction works. The following steps must be ensured when preparing the bill of quantities.
Step 1: Detailed Examination
Conditions of specification, contract, drawing arrangements, and bill of quantities should be examined in details first. Any unusual or onerous conditions witnessed are carefully noted to be discussed during adjudication meetings. Document discrepancies are taken to the architect for clarification purposes, and notes on queries are put in the report to be taken to the management.
It is important to note that the examination of bill of quantities should be done item by item. References upon which quotations might be required are noted on mark-up sheets as reference information to the people who will be sending out the enquiries.
Step 2: Record Keeping
This is done according to the drawings index numbers, which are received alongside the tender documents. All the drawings should be stamped to show the dates they are received. This information is very crucial for the adjudication report, and should be progressively compiled during the entire estimate preparation process.
Step 3: Cross Referencing
The bill of quantities is examined closely and cross referenced with the specification, specifically in reference to the preliminary clauses, to the entire project, and possibly to the specific section, and this is done to eliminate all the possible discrepancies that might exist.
Step 4: Information Gathering
In order to produce a Bill of Quantities, one would require gathering all the necessary information to help him/her in the process. This is essential in the sense that it will help in familiarizing with the requirements of the design as stipulated in the specifications.
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Step 5: Item Description
When preparing the Bill of Quantities, each item, activity and process are adequately described so as to make it easy for another person to determine its intended role or location in the project. The description must contain all the required measurements and should be numbered in a simple format that makes it easy for verification purposes
Step 6: Listing of elements
The basic elements involved in the Bill of Quantities should include the item number or letter, item/activity or process descriptions with calculations, applied unit of measurements, and the actual quantity measured. These elements are incorporated before rates application to result in price.
Step 7: Assigning Titles
Every section in the Bill of Quantities is given a heading/title that is relevant to the process or the trade to be carried out. It is important to note that every section is listed in the same order as the work to be carried out.
Policies (Rules) and Procedures in Relation Pricing Techniques
Step 1: Verifying Labour Rates
The rates of labour should be verified, taking into account the conditions of the latest awards and other relevant facts that might affect the current project such as travelling and dirt money.
Step 2: Quotations Review
This is done so as to select the suppliers and prices that should be included in the Bill of Quantities.
Step 3: Sub-contract Review
The review of sub-contract quotations is done to ascertain price, reliability and desired quality of work.
Step 4: Checking Monetary sums
This is done to make sure that they are included properly, and allowances are made for installation and handling.
Step 5: Summarizing Bill of Quantities
At this stage, a summary of Bill of Quantities is prepared, making sure that all the relevant pages are included, and all monetary additions or extensions are accurate.
Step 6: Preparing Preliminaries
This is done with the help of the builder’s checklist.
Step 7: Determination of requirements
This is carried out for the purposes of job supervision and site staff.
Step 8: Preparing list of Operating supplies
This is done for all the operating supplies required for the project.
Step 9: Determining Proportional charges
The proportion of the company’s administrative charges to be carried out by the project is determined.
Step 10: Adding up items
Total all the items listed above, that is numbers, 5, 6, 7, 8 and 9. It is important to check all the additions for accuracy when doing this, and probably review the entire building project.
Step 11: Profit margin determination
The amount to be added for profit margin should be agreed.
Step 12: Tender submission
Submit the tender and make sure that all matters that pertain drawings and specifications are included.
Step 13: Tender letter Review
Review the tender letter, and ensure that it is formatted properly. Besides, the tender figure must be correct.
Step 14: Tender Submission
Finally, submit the tender.
Policies (Rules) and Procedures in Preparing the Quotation or Tender Letter
The following steps are involved in the preparation process.
Step 1: Quote the tender number.
Step 2: Provide the name of the business and tenderer address. Also, include the letterhead, logo, and pre-printed forms.
Step 3: Give the contact names plus the telephone numbers.
Step 4: Give the full names as well as the address of the company that is receiving the quotation plus the contact name, and position.
Step 5: Provide the reference to the drawing number, specifications, tender name and number.
Step 6: Provide reference to the scope of works.
Step 7: Stating the quotation price at the beginning page, indicating it in both figures and words. Also, indicate whether it is inclusive or exclusive of GST.
Step 8: Indicate the outline of all inclusions.
Step 9: Provide a list of exclusions in detail.
Step 10: Indicate a listing of all the P.C’s.
Step 11: Show whether deposit is required.
Step 12: Define whether there are additional fees required such as, the fees for drawing plans.
Step 13: Set out whether the amount deposited is refundable or non-refundable.
Step 14: Give a payment schedule, detailing how and when the payment is expected to be settled.
Step 15: Set out the terms and conditions of variations and payment methods.
Step 16: State your intended contact and name.
Step 17: It is not necessary to state “in accordance with contact terms and conditions.”
Step 18: Setting out the validity date, and use the actual date instead of 13/30 days in order to avoid confusion associated with the calendar days or working days.
Step 19: Setting out customer conditions such site visits, site access after hours, during the process of construction, inspections, and safety issues.
Step 20: Confirm the proof of ownership and the ability to pay.
Step 21: Close by confirming the acceptance to the quotation, and then fill out the acceptance form.
Policies (Rules) and Procedures Regarding Lodging the Quotation or Tender with the Client
Step 1: Quotation Follow-up
After the receipts the deadline for delivery and time for tender opening are set. In case, there is a change in the deadline, the clients are advised through both the print and electronic media advertisements. All the quotations or tenders received are properly recorded and both the contractor and the concerned tenderer append their signatures to confirm time and date of the receipts.
Step 2: Opening the Quotation or Tender
The contractor concerned with opening the tender should advise all the clients to present the policies to be followed. This will involve giving some brief details about the process of evaluating the quotation or tender. Besides, the clients are given an assurance that the evaluation process is going to be equitable and fair. During the tender opening process, the building contractor opens all the quotations that have been received.
Step 3: Review of Quotation or Tender Documentation
At this stage, each tender document is opened and the contractor might choose to mention the company that has offered the best price for the tender, but this is done only once the documentation is verified to be complete and is in conformity with the conditions of the advertisement, but in case the documentation is incomplete, the quotation is rejected and the winning client is not disclosed. The rejected tender document is then returned to the concerned client, and this is accompanied with the covering letter that states the reason for the rejection. However, valid quotation proceeds to the actual verification stage.
Step 4: Technical Evaluation
This stage involves actual evaluation procedure, and it begins immediately the tender is declared valid. Quotations or tenders are assessed according to the evaluation methodology used.
Step 5: Financial Assessment
Quotations and tenders are evaluated based on technical criteria, and financial assessment of the quoted prices is undertaken. The financial evaluation results are then documented since this is necessary to cover the cost of building materials and other operation costs.
Step 6: Evaluation of the Best Combined Quotation or Tender
After thorough evaluation of quotations against both the financial and technical criteria, a comparison is made to determine the viability of the technical worth and the price taken with the established tendering criteria to get the best offer. This is the final stage that is concerned with quotation rankings. The first ranked client is taken.
Policies (Rules) and Procedures for Recording the Quotation/Tendering Process – e.g. Quote Register
Step 1: Review
When recording the quotation or tendering process, review the client’s purchasing policies, guidelines, procedures, and the ability to pay for the building and construction works done..
Step 2: Developing Evaluation Criteria
This is done using both the qualitative and quantitative methods so as to help in ascertaining value for money.
Step 3: Evaluating Quote Register
The quotation process is evaluated against the established evaluation criteria.
Step 4: Making Requisition
A tender requisition is made at this stage.
Step 5: Notification
Inform both the successful and unsuccessful clients.
Step 6: Legal Vetting
Prepare written copies of the contract to be verified and vetted by legal experts.
Step 7: Registration
This is the final stage where the successful client is registered in the financial system as the approved contractee for the building and construction project.
Policies (Rules) and Procedures Regarding the Follow up Process after the Quotation/Tender Lodged
Step 1: Client Registration
The winning client should be properly recorded and all the details captured in the system.
Step 2: Issuing Invoices
Issue the client with invoices for the work done so as to settle the contractor’s payment.
Step 3: Payment
The contractor should state to the client the most appropriate method to settle the payment for the works.
Procedures to Review and Evaluate the Full Process
The quantity surveyor will be charged with the responsibility of reviewing and evaluating the full process. This review should be done progressively to determine the cost and the completion of the building and construction project. And, this should be done in every three months. The other people who can be brought on board are the architect and building and construction consultants.