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Scenario
You are an estimator in a construction company. A client has come to you for advice on tendering for a house for which the design has been completed. They are particularly interested in knowing about the information to be supplied in the tender, as well as different trades that can be involved in residential construction.
Task 1: Tendering
Before the client gives you the tender documents you have asked for, they are interested in knowing how you and your company will handle the process.
(a) Compare the two most commonly used methods of tendering and discuss their differences.
(b) Which one would you use for the current project? Explain why; and include your reason for not using the other.
(c) List four criteria for evaluating whether contractors are prequalified for the project.
Task 2: Pricing Trades
After a few months the client sends you some documents to complete a tender. This includes a schedule of quantities, tender drawings and specifications.
Project requirements
- The client wants to start this project in the last quarter of this year.
- The site is on good ground with no hard rock and soft spot issues. No demolition is required and there is sufficient access for plant/equipment to be used.
- Whenever there is an item within the SOQ below, for which the price has not been provided within this assignment (either listed or in any of the quotes), then you are required to ascertain these yourselves. Contacting suppliers etc by phone or their websites is a good way of doing this.
- Your company will perform excavations and your manager asks you to price the groundworks. You are to use the information provided in Appendix A: Excavation, along with the following information.
- Assume the hourly excavation machinery rate for the groundworks is inclusive of driver, travel to site, fuel costs, and so on.
- On your company’s database is the following information for pricing the concrete trade. Formwork details are available in Appendix B: Concrete.
- Pumping rate 37.75 (m3/hr) inclusive of travel time and site charges.
- Waste: 3.50%.
- Vibrator hire ($/day): $86.55.
- Vibrator delivery ($/day): $3.50.
- Tradesperson ($/hour): $56.25.
- Use labour constants available in QV Cost builder or any reference materials known to you. If you use a resource other than QV Cost builder, give the name of the resource.
- On your company’s database is the following information for pricing the reinforcement.
- Labour: $38.25 per hour.
- Tradesperson: $55.25.
- Waste: 4.50%.
The following is an excerpt from the Schedule of Quantities.
| Description | Unit | Qty | Rate |
| Groundworks | |||
| Generally | |||
| Refer to the Introduction, General Rules and Recommendations of the ANZSMM 2018 (First Edition) | |||
| Refer to the relevant Specification sections containing particulars of Groundwork | |||
| Refer to Section 4 of the ANZSMM 2018 (First Edition) for details of Measurement and Prices | |||
| Work in other trades | |||
| The following items have been measured in other trade sections: | |||
| Filling to garden beds: Exterior Elements | |||
| Planting and associated excavation and filling work:Exterior Elements | |||
| Turfing including imported topsoil: Exterior Elements | |||
| Excavation and beds for paths/driveways: Exterior Elements | |||
| Excavation for electrical and hydraulics/drainage services and connections have been measured in their relevant trade sections | |||
| Site Clearance | |||
| Clear site to remove all vegetation, shrubs, debris, rubbish, and the like, including grubbing out stumps and rootsand backfilling and compacting grub holes | m2 | 115 | |
| Excavation | |||
| Excavate over area of building and strip topsoil to a depth of 150 mm from existing ground levels and stockpile on site approximately 10 m away from building | m2 | 93 | |
| Excavate over area of building to a depth of 250 mm from stripped ground levels and prepare and compact the excavated surface as specified: 93 m2 | m3 | 24 | |
| Excavate trench for concrete footings up to 1 m deep below reduced levels | m3 | 9 | |
| Ïilling and Hardcore | |||
| 100 mm thick compacted approved hardfill under floor slab, well consolidated, and as per specifications | m2 | 115 | |
| Concrete | |||
| In Situ Concrete | |||
| Generally | |||
| Refer to the Introduction, General Rules and Recommendations of the ANZSMM 2018 (First Edition) | Note | ||
| Refer to the relevant Specification sections containing particulars of In Situ Concrete | Note | ||
| Refer to Section 6.1 of the ANZSMM 2018 (First Edition) for details of Measurement and Prices | Note | ||
| Samples | |||
| Allow for providing samples of materials or finishes | Item | ||
| Tests | |||
| Allow for testing materials, concrete specimens and similar | Item | ||
| Protecting and Curing | |||
| Allow for protecting and curing concrete, stating total areasof formed surfaces and areas of slabs on ground | Item | ||
| Ïootings | |||
| 10 MPa plain concrete in: | |||
| 50 mm blinding, spread and levelled under pile pads and footings | m3 | 2 | |
| 25 MPa plain concrete in: | |||
| Pads to timber piles 600 x 600 x 400 mm | No | 4 | |
| Pads to timber piles 400 x 400 x 900 mm | No | 2 | |
| 20 MPa reinforced concrete in: | |||
| Pad footings 450 mm x 450 mm x 250 mm | No | 5 | |
| Pad footings 1900 mm x 400 mm x 250 mm | No | 12 | |
| Slabs | |||
| 20 MPa reinforced concrete in: | |||
| Floor slab laid on sand blinding, 0–100 mm thick: 105 m2 | m3 | 11 | |
| Ïormwork | |||
| Generally | |||
| Refer to the Introduction, General Rules and Recommendations of the ANZSMM 2018 (First Edition) | Note | ||
| Refer to the relevant Specification sections containing particulars of Formwork | Note | ||
| Refer to Section 7.1 of the ANZSMM 2018 (First Edition) for details of Measurement and Prices | Note | ||
| Certification | |||
| Allow for providing engineer certification of formal design | Item | ||
| Shop Drawings | |||
| Allow for preparation of shop drawings | Item | ||
| Protecting and Curing | |||
| Allow for protecting and curing concrete stating total areasof formed surfaces and areas of slabs on ground | Item | ||
| Ïootings | |||
| Class F1 finish formwork to: | |||
| Vertical faces of blinding, 0–250 mm high | m | 47 | |
| Vertical faces of footings, 0–250 mm high | m | 19 | |
| Ditto, 400 mm high | m2 | 4 | |
| Ditto, 900 mm high | m2 | 3 | |
| Slabs | |||
| Class F4 finish formwork to: | |||
| Free edges of floor slabs laid on blinding, 0–250 mm high | m | 42 | |
| Reinforcement | |||
| Generally | |||
| Refer to the Introduction, General Rules and Recommendations of the ANZSMM 2018 (First Edition) | Note | ||
| Refer to the relevant Specification sections containing particulars of Reinforcement | Note | ||
| Refer to Section 8 of the ANZSMM 2018 (First Edition) for details of Measurement and Prices | Note | ||
| Bending Schedule | |||
| Allow for preparation of bending schedules forbar reinforcement and fabric reinforcement | Item | ||
| Ïootings | |||
| D16 rod reinforcement | kg | 87 | |
| D12 rod reinforcement | kg | 96 | |
| D10 rod reinforcement | kg | 17 | |
| Slabs |
| D12 rod reinforcement | kg | 78 | |
| D10 rod reinforcement | kg | 9 | |
| R6 stirrup reinforcement | kg | 3 | |
| 668 Mesh reinforcement lapped 150 at joints | m2 | 29 | |
| SE62 Mesh reinforcement lapped 200 at joints | m2 | 29 | |
| Masonry | |||
| Generally | |||
| Refer to the Introduction, General Rules and Recommendations of the ANZSMM 2018 (First Edition) | Note | ||
| Refer to the relevant Specification sections containing particulars of Masonry | Note | ||
| Refer to Section 12 of the ANZSMM 2018 (First Edition) for details of Measurement and Prices | Note | ||
| Samples | |||
| Allow for providing samples of materials | Item | ||
| Sample Panels | |||
| Allow for constructing a sample panel of face of brickworkor blockwork | Item | ||
| Tests | |||
| Allow for testing materials, concrete specimens and similar | Item | ||
| Exterior Work | |||
| Ïootings | |||
| 200 mm concrete blockwork in stretcher bond bedded inmortar as described, solid filled (rising to 600 mm high max) | m2 | 25 | |
| Corner blocks | m | 2 | |
| Concrete grout filling as described to 200 mm thick wall | m2 | 25 | |
| External Wall | |||
| 200 mm concrete blockwork in stretcher bond bedded inmortar as described, solid filled (rising to 800 mm high max) | m2 | 34 | |
| Corner blocks | m | 2 | |
| Bond beam | m | 75 | |
| Concrete grout filling as described to 200 mm thick wall | m2 | 63 | |
| Ditto, to bond beams | m | 75 | |
(a) Use information provided in Appendix A to price excavation/groundworks.
- Enter SoQ rates into the SoQ.
You determine which trades are to be priced in-house and which will be sent out to subcontractors and suppliers for pricing. After compiling all information required for subcontractors and suppliers, you received quotations for:
- concrete
- reinforcement
- blockwork.
(b) Use information provided by your chosen subcontractor or supplier in Appendix B to price concrete and formwork.
- Compare the quotes using suitable tables.
- Explain your reason for choosing your preferred subcontractor or supplier.
- Calculate the SoQ rates and enter the rates into the SoQ.
(c) Use information provided by your chosen subcontractor or supplier in Appendix C to price Note each stirrup is 830mm long.
- Compare the quotes using suitable tables.
- Explain your reason for choosing your preferred subcontractor or supplier.
- Calculate the SoQ rates and enter the rates into the SoQ.
(d) Use information provided by your chosen subcontractor in Appendix D to price masonry.
- Compare the quotes using suitable tables.
- Explain your reason for choosing your preferred subcontractor.
- Calculate the SoQ rates and enter the rate into the SoQ.
Provide your calculations for all rates.
Task 3: On costs – overheads and profit
Several weeks have passed and your client is expecting your pricing. You have completed compiling and entering all of your subcontractors’ and suppliers’ rates in the SoQ and are now ready to finalise your cost estimate by applying on-costs for overheads and profit. Create a Tender Summary calculate the following:
(a) Prepare a completed SOQ. This will only consist of the trades noted in Task 2 along with an ‘all in’ cost of $5,237.26 for direct P&G Calculate your company’s indirect overheads as a percentage (to two decimal places). Determine the value of the indirect P&G cost and add this (as a single line item) to the total of your SOQ: Once this is completed, determine the project subtotal to date.
- Turnover of business: $4,300,00
- Total cost of overheads: $295,00
(b) On completion of Task 3a, add the following items to your SOQ to determine the final value of your tender:
- Profit: 7.50%.
- Provisional sum: $7,500.
- Contingency sum: $25,000.
- GST: 15%.
Provide your calculations for all rates.