portfolio of understanding

2012

Portfolio of Understanding

Summary of semester’s course findings Mbulelo Gushu – GSHMBU001

Professional Practice – CON 4034W

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Table of Contents 1. Introduction of Report

2. The Quantity surveying profession

2.1 Module introduction

2.2 Module Assessment

2.3 My learning experience

3. The commissioning of the Quantity Surveyor

3.1 Introduction

3.2 The client

3.3 Types of appointments

3.4 Guest lecture and assignment

4. PROCAP

4.1 Stages

4.2 Stages and the quantity surveyors duties

5. Professional fees

5.1 Introduction

5.2 Fee calculations

5.3 Assignment and guest lecture

6. Pre-contract stage

6.1 Stage outcomes

6.2 Production budget

6.3 Production information

7. Tender Stage

7.1 Documents

7.2 Issuing, receiving and evaluating tenders

7.3 Offer and acceptance

8. Contract Stage

8.1 Principal contractor and principal agent relationship

8.2 The quantity surveyor’s duties during this stage

8.3 Cost report assignment

9. Final Account Stage

9.1 Preparation of final account



9.2 Presentation and settlement of final account

10. Conclusion

11. Appendices



1. Introduction:

At the introductory lecture at the beginning of the semester I had a very vague idea

of what the course Professional Practice was actually all about. I felt as though a lot

of information was coming my way and I was confuse and overwhelmed. Initially I

didn’t understand how the assessments were going to work what Karen was

expecting of us in our work. (Throughout the semester I still found that I couldn’t pin

point what it was she was looking for, however I have learnt that through her

assessment you indeed do gain a greater understanding from what she is asking)

This report is going to showcase my understanding of the course work we’ve covered

during this first semester, tied in with my understanding of Quantity Surveying and

the profession as a whole.

This course was subdivided into eight modules and this report is going to summarise

my learning experience through each of the models, their assignments and

supplementary learning through guest lectures.

2. The QS Profession

Module Introduction:

This module looked to cover the Quantity Surveying Act.49 of 2000, the professional

bodies that govern and administer the profession and the routes which one can take

to becoming a professional quantity surveyor.

Module Assessment:

We were asked to write an essay talking about our 10 year professional career plan,

specifically referring to the quantity surveying profession and professional

registration. This assignment initially seemed as one which would be very easy to

write and would be very ‘airy’ and vague. However when planning my essay I



realised that there was far more to it and that I had to do some research and actually

think about what it takes to be a professional in the built environment industry.

The SACQSP, South African Council for the Quantity Surveying Profession, is the body

which governs the profession. There then is the ASAQS, association of South African

Quantity Surveyors, which is mainly responsible for the publication of necessary

documentation to the profession, dealing and communicating industry issues and

networking of professionals within the industry. Another similar organisation is RICS,

the Royal Institute of Quantity Surveyors, which is an organisation on an

international scale.

When doing my vac work in second year I was told about how one has to work for

three years before being a professional quantity surveyor. However this process was

not clearly mapped out until I began this assignment and came to find out about the

APC interview. This is an Assessment of Professional Competence interview in which

a candidate quantity surveyor is to attend before he can be a professional registered

with the council. Before one can sit in this interview, there are few milestones which

have to be overcome. The most relevant for a University student would be to initially

graduate with an accredited degree, work in a Professional Quantity Surveying firm

for 3years, keeping a record of tasks completed under mentorship and attendance of

relevant industry events.

Learning experience:

There are two issues which I discovered through this assignment for the first time,

these were that of the CPD programme and that the council doesn’t recognise

‘quantity surveying’ work for a building contractor as sufficient to be registered as a

professional quantity surveyor. The former came as a big shock to me as I has heard

of the term the ‘contractor’s quantity surveyor’ a few times before.

The Continuous Programme Development (CPD) is one which is run through the

ASAQS to ensure that quantity surveyors keep up to date with industry standards

through a requirement of CPD points to remain registered with the SACQSP.



Above is my proof of registration with the Royal Institute of Quantity Surveyors. I’m

also a student member with the ASAQS and hope this will add a great deal to the

initial phases of my professional development as a future quantity surveyor.



3. The Commissioning of the Quantity Surveyor

Introduction:

This module looked to show how the quantity surveyor gets and keeps work. The

commission of any profession is important and I find that of the quantity surveyor

very important as quantity surveyors offer a service to a very competitive built

environment industry.

The client:

When looking at the commission of the quantity surveyor it is important to know the

types of clients which require the services which a quantity surveyor would offer,

this is because not every type of client would want the same thing as another client.

There mainly three types of clients categorised by their background, namely; ones

from the private sector, the public sector, and from institutions.

Clients from the private sector are usually inexperienced and lean heavily on the

assistance of the architect for the appointment of the quantity surveyor together

with the rest of the professional team. These clients aren’t in the business of

building, usually building on a once off basis. Some of the reasons for from these

clients are; building being expansion, growing or changing needs, a personal desire

The public sector is one of the biggest clients in this country, through the provision

of public infrastructure such as schools, hospitals and departmental offices.

Institutional clients are those which are in the business of building, solely for

investment purposes. These are your property developers acting in their own

capacities or on behalf of another party.

Types of appointments:

The above group of clients may appoint the quantity surveyor on the basis of a

partial or a full service, and these terms can be discussed through the two parties.

Full services include all of the quantity surveyor’s duties namely;

Estimates,

Cost planning,



Preparing tender documents such as Bills of Quantities,

Preparing and issuing payment certificates,

And preparing and communicating the final account to the

necessary parties

Partial services may include any of the above or services such as valuations, for

building insurance purposes, and feasibility studies in the very early life of the

project.

The quantity surveyor would then state the appropriate fee scale to be applied on

these types of appointment.

The commission of the quantity surveying services through a joint appointment

requires a lot of consideration and understanding from all the parties to form the

consortium. Some of the considerations are;

Contributions – in terms of staff and finances

The subdivision of work

Remuneration and profit sharing

Banking and signing powers

Legalities – such as dealing with the withdrawal of parties, insolvency, etc.

Resolution of any disputes which may arise

The quantity surveyor is finally appointed through a letter of appointment. The letter

usually comes after verbal or some other form of informal communication. With

some clients (such as government) it comes after a long bidding process and

assessment of the firm before it is appointed. However some departments require

that the quantity surveyors they appoint be registered within their database and be

appointed through it. This database is an easier way for them to see which firms are

available to do the desired work and it allows them to monitor and fairly distribute

government work competent firms. The letter of appointment should clearly state

the way in which fees will be paid out to the quantity surveyor, his/her duties and

ideally a schedule of how the quantity surveyor work is going to be spread during the

project.



Guest lecture and Assignment:

The success of a building project heavily relies in the establishment and the working

relationship of the professional team, thus what other member’s think of the QS has

a very big effect on his commissioning.

Different groups from the class were asked to look at the different perspectives

about the commissioning of the QS from the developer, architect, and the different

types of clients. It was interesting to note that there was a recurring theme in the

responses of the above bodies, which was that of reputation. This is the biggest

factor affecting the commissioning of the QS. Another factor is that of the scope of

the project. The scope of the project determines the stage at which the QS is

appointed and also for which type and level of service.

It was also interesting to note that the developers felt that the QS wasn’t the right

person to be appointed as the principal agent as they felt that he/she maybe too

cost conscious and not enhance the design value. The project priorities thus have a

big influence on the appointment of the QS.



4. PROCAP

The PROCAP document is one which is produced by the South African Institute of

Architect and it outlines the traditional expectations of the professionals involved in

building projects. The Procedural Guide for Clients, Architects and other

professionals is important to quantity surveyors as it gives them an idea of what is

required from each of the professionals at each of the outline stages.

Stages

The document outlines six traditional work stages, namely; inception, appraisal and

definition, conceptual design, design development, documentation and approval,

contract administration, and debriefing. (Inception is seen as stage zero)

Stages and the quantity surveyors duties

These are the quantity surveyor’s duties as suggested by the PROCAP

documentation:

Stage 1 Inception – none

Stage 2 Appraisal and definition – the first cost estimate is produced. A feasibility

study may also be done at this stage

Stage 3 Conceptual design – a revised cost estimate based on the evolving design

criteria is produced

Stage 4 Documentation and Approval – bills of quantities are produced

Stage 5 Contract administrations – priced bills are checked, cost plans are prepared

and cost control measures are implemented

Stage 6 Debriefing – the final account is settled

The content of this module provides good grounding and understanding for the

modules to come.



5. Professional Fees

I found this module to be one of the most important of the semester. Prior to this

module I wasn’t sure of the extent of the cost of professional fees, and its acceptable

percentage of total building costs. I had been told during my practical training that

professional fees range between 12-20% of total building costs, thus learning that

fees can cost the clients a lot of money.

Besides the calculation of EBE professional fees, in this module we also had a very

interesting discussion on discounted and reduced fees. The above will be discussed

in the following sections of this report.

Professional Fee Calculations

The quantity surveyor has the duty of controlling all of the project costs, and the

professional fees are no exception. With the inclusion of calculating his own fees,

he/she has to calculate the fees of all the other professionals in the project team.

These calculations are done through the use the use of fee scales provided by the

different professional bodies. Theses scales differ from the types of projects, like the

civil and structural engineers would apply a different scale to a building project and a

road construction project.

The first step in calculating professional fees is obviously getting an idea of how

much the building is going to cost. This can be done through the estimating methods,

using one which is more relevant and accurate at the time.

Once the estimated value of work is known, the value for fee purposes is calculated.

For the quantity surveyor, the architect and the project manager a similar calculation

is performed. The value for fee purposes is the estimated cost less contingencies and

less value added tax. The total value for fee purposes is then placed within a range

identified in the fee scale. A basic fee is then associated with each range plus a

marginal rate on the difference of the value for fee purposes and the lower limit of

the range.

For the engineers their value for fee purposes is worked out a bit differently as they

aren’t involved in in all the building elements. A structural engineer for example

would only receive fees based on the value of the structure of the building, and an



electrical engineer would only receive fees on the electronic and electrical

installations in the building.

Professional fees presentation

Professional fees are to be presented in a way in which the client will fully

understand. I felt the use of illustrative tools such as graphs also help in this regard.

Below are some of the graphs I used to illustrate some of my professional fees

calculations:

Total Fees Paid

R 0.00R 100 000.00R 200 000.00R 300 000.00R 400 000.00R 500 000.00R 600 000.00

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Total paid

Total paid



Fees payable monthly and through the work stages

Assignment and guest lecture

The professional fees assignment gave me an understanding of how fees are

calculated and how they are proportioned throughout the entire project life cycle.

What I found interesting when doing this assignment was how fees change based on

the scope of work and the type of appointment of each of the professionals.

I had decided for my calculations to include a Project Manager from inception until

the closing-out stages. This inclusion resulted in a very big change of professional

fees, whereas a decision to make one of the consultant’s principal agents caused an

increase of less magnitude. I learnt that these are the types of decisions a client has

R 0.00R 500 000.00

R 1 000 000.00R 1 500 000.00R 2 000 000.00R 2 500 000.00R 3 000 000.00R 3 500 000.00

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Cumalative Total

Cumalative Total

Months Works StagesQuantity Surveyor

ArchitectElectro-Mechanical Engineer

Structural Engineer

Project Manager

Total paid Cumalative Total

31-Jan-12 Inception R 17 636.35 R 46 921.30 R 11 550.00 R 16 258.25 R 79 478.77 R 171 844.67 R 171 844.6729-Feb-12 Concept and Viability R 35 272.71 R 140 763.89 R 34 650.00 R 81 291.27 R 79 478.77 R 371 456.63 R 543 301.3031-Mar-12 Design Development R 52 909.06 R 187 685.19 R 23 100.00 R 97 549.52 R 198 696.92 R 559 940.69 R 1 103 241.9930-Apr-12 Documentation and Procurement R 123 454.47 R 140 763.89 R 23 100.00 R 24 387.38 R 39 739.38 R 351 445.12 R 1 454 687.11

31-May-12 R 123 454.47 R 140 763.89 R 23 100.00 R 24 387.38 R 39 739.38 R 351 445.12 R 1 806 132.2330-Jun-12 Construction R 31 745.43 R 15 953.24 R 9 240.00 R 6 503.30 R 31 791.51 R 95 233.48 R 1 901 365.7230-Jul-12 Month 2 R 31 745.43 R 15 953.24 R 9 240.00 R 6 503.30 R 31 791.51 R 95 233.48 R 1 996 599.20

31-Aug-12 Month 3 R 31 745.43 R 15 953.24 R 9 240.00 R 6 503.30 R 31 791.51 R 95 233.48 R 2 091 832.6930-Sep-12 Month 4 R 31 745.43 R 15 953.24 R 9 240.00 R 6 503.30 R 31 791.51 R 95 233.48 R 2 187 066.1731-Oct-12 Month 5 R 31 745.43 R 15 953.24 R 9 240.00 R 6 503.30 R 31 791.51 R 95 233.48 R 2 282 299.66

30-Nov-12 Month 6 R 31 745.43 R 15 953.24 R 9 240.00 R 6 503.30 R 31 791.51 R 95 233.48 R 2 377 533.1431-Dec-12 Month 7 R 31 745.43 R 15 953.24 R 9 240.00 R 6 503.30 R 31 791.51 R 95 233.48 R 2 472 766.6331-Jan-13 Month 8 R 31 745.43 R 15 953.24 R 9 240.00 R 6 503.30 R 31 791.51 R 95 233.48 R 2 568 000.1128-Feb-13 Month 9 R 31 745.43 R 15 953.24 R 9 240.00 R 6 503.30 R 31 791.51 R 95 233.48 R 2 663 233.5931-Mar-13 Month 10 R 31 745.43 R 15 953.24 R 9 240.00 R 6 503.30 R 31 791.51 R 95 233.48 R 2 758 467.0830-Apr-13 Close - out R 17 636.35 R 14 076.39 R 11 550.00 R 8 129.13 R 19 869.69 R 71 261.56 R 2 829 728.64

31-May-13 R 17 636.35 R 14 076.39 R 11 550.00 R 8 129.13 R 19 869.69 R 71 261.56 R 2 900 990.20

Total Estimated Professional Fees R 2 900 990.20

Percentage of fees to Building Cost: R 2 900 990.20R 15 213 547.96

19.07%



to make on the successful delivery of a project. This leads to the next point of fee

negotiations and reduced fees.

The guest lecturer talked about how in industry some quantity surveying firms are

accepting reduced fees and offering discounts as a result of the competitiveness of

the industry. She felt that this practice was wrong and that it acted in a way to

disfavour the quantity surveying profession as a whole. However during this

discussion a counter argument was raised that maybe accepting reduced fees would

increase the efficiency of the work across the industry.

These are just some of the realities of the profession and I believe that there are

times when quantity surveyors have to carefully negotiate reduced fees; however

clients need to understand that they cannot always squeeze the quantity surveyor

and other professionals for lower fees. This is a very fine balance and the topic still

needs further discussions with the bodies involved.

During this module I believe that the lights started coming on and the direction of

this Professional course became clearer. It has helped me understand quantity

surveying as both a business and a profession.



6. Pre-contract Stage

The pre-contract stage sometimes referred to as the Documentation and

Procurement stage is very important in setting the tone and planning how project is

going to be run. It is in this stage that controlling measures are set out put into place

to be adhered to by the entire project team. The decisions taken at this stage need

to be very well documented and it is a chance for the whole team to ‘get on board’

and be well informed about the happening of the project.

Stage outcomes

Project planning and control: - certain considerations are to be taken care off before

a production team is established. These considerations include setting out of keys

dates, such as start and completion dates; staff availability, in order to adequately

accept and allocate work responsibilities; the production cost budget which

calculates the net production cost. This cost is then used to calculate the ‘charge out

rate’ for each of the consultants working on the project. This rate tells us how long

one can be expected to spend on a project and whether that will yield in the desired

profit.

Our understanding of the above was assessed through a Production Cost Budget

assignment, shown below.



Productivity Budget

Estimated QS Fees R 708 347.91

Fees at Bill Production Stage 35% R 247 921.77

Salaries R 53 000.00

Overheads 10% R 24 792.18

R 77 792.18

As this is a very productive firm, we'll assume 60% productivity;

60%x 160hours a month 96hours

Rate R 810.34an hour

Production Budget:

Contract value QS Fees BOQ Stage

R 15 974 225.36x 4.40% 35%

R 246 003.07

Less: Profit -R 44 280.55

Expenses -R 12 300.15

Investments -R 24 600.31

Production Budget R 164 822.06

There number of hour thus needed to complete this task; 203.40 hours

I'd say I'm 35% through my project

which leaves 65%

Hours needed to completion 132.21 hours

In my assignment the category of the documentation to be produced fell within Bills

of Quantities and thus the applicable portion of fees toward this stage was 35%. The

total production budget was the calculated by subtracting the profit, fees and

investments. This amount was divided by the charge per hour which resulted in the



time required to adequately complete the task. When looking at my MDA 3 project I

project that I could just make the deadline with working 8 hour workdays. I found

this out the hard way as I was still working on my assignment a few hours before

hand-in, which goes to show the accuracy and the helpfulness of doing such

calculation in the early stages of the bill production.

The activities to be done during this stage need to be clearly outlined, also indicating

their duration. Such activities are measuring drawings, specifying, obtaining cost

information and many others.

Production information

Certain information is required at this stage, mainly from the client, and the member

of the professional team. This information may vary from the knowledge of existing

services on the site to the use of nominated/selected subcontractors by the client

and certain recommendations by the professional team. This information is crucial

and needs to be identified as there can be dear cost and legal implications. Each of

the members in the professional team is to bring forward any considerations which

they deem to be important such as the Mechanical engineer with HVAC installation

and therefore measurement in the bills of quantities or to be provisionally

measured. The structural engineer may also be called upon to provide information

on the structure and any specific information to be included in the documentation

such as supplementary preambles and any other types of specification.



7. Tender Stage

The processes in this stage are highly depended on the type of client. Public sector

clients usually call for tenders through public forums such as newspapers, private

clients may do the same or invite a selected few contractors to tender for the

project. Some clients mostly depended on the complexity or time constraints of a

project prefer to negotiate with a single contractor, this would then be known as a

non-tender basis.

Documents

The following documents are used to compile the tender package to be received by

the bidding contractors;

Conditions of tender

Conditions of contract

Trade preambles

Un-priced bills of quantities

Tender form

All necessary drawings

When doing my practical training I noticed that tender documents for government

project were a whole lot thicker than those of private sector jobs. Government

clients seem to require more information from tenderers and require then to adhere

to more standards which must be clearly communicated to them in the tender

documents. Some of these requirements to be adhered to would be Health, Safety

and Environmental considerations and social responsibility issues such as hiring a

certain number of workers from the area which construction is taking place.

Overlooking such issues may lead to community strikes and unnecessary stops in the

project.

Issuing, receiving and evaluating tenders

Tenders are issued out either by the principal agent or sometimes the quantity

surveyor. Upon collection of the document the contractor is to pay a fee, which is to

cover the cost of printing and compiling the complete document. A record of the

tenderers is to be kept.



The tenderers are to return the priced bills as price offers after the stipulated period

given to them. There are a few recommendations as to how long this period should

be:

The joint practice committee recommends that a minimum of 3 weeks be

given for this period and a minimum of two weeks for selected/nominated

subcontractors (Practice Note 4/2009)

The Construction Industry Development Board (CIDB) suggests that two

weeks (10 working days) be given as a minimum for tenderers to submit

bids (Best Practice Guideline #A1, December 2001)

There are four methods of evaluating tenders which are outlined by the CIDB in their

Best Practice Guidelines under the CIDB Standard for Uniformity in Procurement.

These methods are;

1. Method 1: where the tender is solely evaluated on the financial offer

which is made

2. Method 2: where the tender is evaluated in terms of price and specified

preferences

3. Method 3: a balance between price and quality is used to evaluate

tenders

4. Method 4: where the tender is evaluated on a balance between price,

quality and preference.

One of the above should be stated in the contract data.

The tenders should be received in a sealed envelope and should be opened at a

previously agreed location and time where all the tenderers are invited to attend.

The principal agent traditionally reads out the names of the tenderers together with

their price. With the assistance of the quantity surveyor tender is evaluated in terms

of validity, ability and financial position. Such systems used to adjudicate tenderers

are outline in the CIDB Best Practice Guidelines.

Offer and Acceptance

The tenderer bid is recognised as an offer and once it is signed by the necessary

bodies (i.e. the client, principal agent, etc.). The priced bills of quantities then form a

part of the contractual documents together with JBCC documentation and issued

and approved drawings. The tenderer is then required to provide the necessary



guarantees and insurances in order for the final contract documents to be drafted

and signed in order for work to commence.



8. Contract Stage

This stage signifies the beginning of construction and that of the introduction of the

principal contractor. This module sets out how the relationship with the principal

contractor and the client or principal agent forms. It also goes on to illustrate some

of the quantity surveyor’s duties within this stage and his/her involvement in issues

such as contract instructions and completion.

Principal contractor and principal agent relationship

The principal contractor is to make available the following documents, by the

request of the principal agent;

Signed contract document: both the contractor and the principal agent are to

hold original signed copies of the contract

Construction information: the JBCC Series 2000 principal building agreement

stipulates that the contractor be provided with a few documents in order to

execute the works. These documents are namely blank bills of quantities,

approved contract drawings and other documents and drawings which may

be deemed as important to the contractor for his operations.

Nominated/ selected sub-contract agreement: this information is required to

assist the principal agent in supervising the subcontractors and knowing

under which consultant’s control they’re under.

Any contract instructions at the time

Approval of domestic sub-contractors: as per clause 13 of the JBCC PBA

Insurances- the proof of these should be documented and provided to the

principal agent

Construction programme

Guarantees- mostly from manufacturers and suppliers through the contractor

The quantity surveyor’s duty duties during this stage

The quantity surveyors main responsibilities and duties are showcased during this

stage. He/she controls and advises on building costs through the following tasks;



Construction cash flow: this is produced in conjunction with a detailed

programme provided by the contractor. It is good practice to revise the

projected cash flows after every month.

Monthly cost reports: these are used as both a control and a monitoring tool.

These reports should include the value of contingencies, the values of

contract instructions and variation orders, the value of re-measured work

(which was initially provisionally measured) and provisional sums and prime

cost amount.

These reports should be prepared and communicated clearly to the client in the best

suited format for his/her understanding. Some clients even have templates to which

they require these reports to fit.

The cost report assignment

The main thing I observed through this assignment was that once the cost report

document is set up, it is very easy to document and to notice the effects of cost

variations. I found that it was also easy to tie this back to the professional fee

calculations and see the changes to the fees caused by variations. See assignment

attached.



9. Final Account

This document is one which seeks to reflect the value of the works at Final

Completion, according to the principal agent. However this statement is made by the

quantity surveyor for the principal agent to sign off.

Preparation of the final account

The JBCC Series 2000 PBA states the final account is to be complete within 90 days,

around 4 calendar months, after practical completion has been deemed achieved.

The principal contractor during this period is contractually instructed to comply in

providing the necessary information required to complete the final account. Once

the final account statement has been completed, the contractor has 45 working days

in which to accept it.

There are a few reasons as to why the final account may not be accepted in time

such unwillingness of some of the parties to provide some of the necessary

information. These delays may result in the quantity not being able to claim his/her

stage six fees at the client not being able to finalise the project’s records.

Presentation of final account

A copy of the measured bills of quantities, inclusive of the variations is given to the

contractor to price. A certificate value may be arrived at and agreed on by both the

principal agent and the contractor.

Guest lecture

The guest lecture on this topic was very informative and really emphasised that the

final account is something which should be done from the beginning of the project,

starting with the very first variation. However this isn’t always the easiest thing to do

as contractors are reluctant to agree on the cost of some variations. However it does

seem like an easier way to go about the final account as the process of going back in

time and remembering those variations can be very strenuous.

10. Conclusion

Compiling this Portfolio of Understanding has been a great learning experience as I

believe it has effectively helped in my understanding of Professional Practice so far.

It has also created a holistic understanding of the quantity surveying profession and I



hope it will put me in good stead for our Simulated Office Project in the next

semester.



11. Appendices



My Ten Year Career Plan

Having completed my undergraduate degree, it is important to start thinking about the development of my professional career after university. This essay will look to show the different routes towards registering as a professional quantity surveyor and the three main bodies one could register with. It will also illustrate the path in which I plan to take, towards my development as a professional in the built environment industry. The quantity surveying profession in South Africa is governed by the SACQS, the South African Council for the Quantity Surveying Profession. The council, amongst its many duties, is responsible for the administration and registration of quantity surveyors. There are a total of 12 different routes which are available to candidate quantity surveyors which can be taken towards attaining professional registration with the council. The first route, which is also the quickest, involves 3 years in training as a candidate quantity surveyor after attaining an accredited university degree. When the 3 year training period is complete the candidate attends an Assessment of Professional Competence interview, in which after that can be registered as a professional quantity surveyor. There are mainly two associations which deal with quantity surveying from university all the way up to professional level, namely the RICS and the ASAQS, which are beneficial in terms of networking and being up to date with all of the relevant industry information and documentation. Upon completing my honours degree in quantity surveying, I have to fulfil my bursary obligation to Eskom SOC and work under them for 4 years. I soon realised during my short vacation work period at Eskom that their work description of a quantity surveyor is completely different to that of industry. I also learnt that SACQS doesn’t recognise quantity surveying work done at Eskom as sufficient training towards professional accreditation. The nature of the work at Eskom involves the construction of the same type of infrastructure country wide, which means that the preparation of bills of quantities is simplified, most details are known and construction methods have been trailed and tested. The company also has procurement staff, project management staff and accounts staff; therefore the quantity surveyor doesn’t pick up enough skills to become a jack of all trades. This makes my route towards becoming a professional a bit more challenging. I however hope to be seconded out to a private quantity surveying firm such as Davis Langdon which I have already worked under, for two of my vacation periods. Eskom also allows for its employees to work under a mentor for one day of the week, therefore this could also be a viable option. Lastly, I could also be released from my obligation to work for Eskom although I would have to provide a very strong case as to why. I now understand that getting my accreditation will not be so simple and straight-forward, but I however aim to achieve this as quickly and as efficiently as possible. I also wish to obtain a project management qualification, at master’s level or honours level. I believe this will be beneficial to me as a professional in the construction industry.



I currently have two sets of goals, which involve the working for Eskom route and the other of working for a quantity surveying firm. Quantity surveyors within Eskom are either employed under the contracts management department or the properties department, and I’m set to work under the latter. Within this department I want to be involved in the construction of sub-stations and possibly larger power stations. After gaining sufficient experience I would like to be a regional contracts manager or a project manager, and having a project management qualification will assist in this regard. The project manager is more hands-on, gets to travel and interact with many different stakeholders. There are also amazing opportunities within such a large parastatal such as Eskom, and I will surely not overlook opportunities such as working in other African countries and being involved in ground-breaking projects. Eskom is also still an ever expanding company despite its already large size, and being a part of providing for the rapidly increasing demand in power is something I’d take satisfaction from doing. If I am afforded the opportunity to work for a private quantity surveying firm, I’ll look to getting my professional accreditation in my first three years and moving up the ranks within the firm. Depending on the structure of the firm, I’d like to see myself in a senior management or an executive position shortly after getting my accreditation. I also want to do project management consulting within a quantity surveying firm, as I think prefer and will enjoy the hands-on approach in completing projects. Having spoken to a few young professional quantity surveyors I’ve learnt that it is possible to quickly move up the ranks, with professional accreditation and a bit of hard work. I also saw that it is easy to settle and not work towards your accreditation; however the benefits of being a professional in your field are far greater, in terms of career growth and higher earnings. It is not in my plans to be a professional quantity surveyor for great number of years and towards the end of my first 10years I also want to be involved in property development, as a side venture. Property is a field which has come to interest me in my years studying construction and I want to be more involved in it later in my career. I’m also interested in emerging African economies and I feel that both the opportunities and the challenges in those markets will make for a great experience. What also draws me to development in Africa is a feeling of social responsibility and adding value through cost planning and control techniques across all levels of society. The needs in some countries range from high grade office space, middle income developments and low income housing solutions. Having had cost planning and cost control experience, I believe I will be adequately equipped in dealing with the challenges posed in the property industry. This response to the assignment has helped me a great deal in thinking about my career and setting goals which I believe will all be achievable.



Stage1 Satge2 Satge3 Satge4 Satge5 Satge6



Professional Practice - CON 4034 W

Assignment 4

Mbulelo GushuGSHMBU001

Professional Fees



Square Meter Rate EstimateRate Amount

Note: All rates include provisional sum allowancesGround Floor 220 R 12 500 R 2 750 000.00First Floor 220 R 12 500 R 2 750 000.00Second Floor 220 R 12 500 R 2 750 000.00Roof 220 R 10 000 R 2 200 000.00Basement Floor 220 R 6 500 R 1 430 000.00Total R 10 450 000.00

Preliminares 9.76% R 1 019 920.00Contingencies On Building cost 4.5% R 470 250.00

On Preliminaries 2.50% R 261 250.00

Sub total R 12 201 420.00Contractor's Fee 0% R 0.00

Pre-escaltion Total R 12 201 420.00

Escalation Calculations

Pre-Tender Escaltion (BER) R 696 497.73BER escalation as at:Escalation Period of escalation13.70% 0.42

Sub total R 12 897 917.73

Contract Escalation (CPAP) R 447 299.79CPAP as at:Escalation Escalated propotion Factor6.80% 85% 0.83 60%

Total Before VAT R 13 345 217.51

Add: VAT 14% 1 868 330.45

Final Valuation R 15 213 547.96

Floor Area

Escalation period

Floors



Stage 1 Stage 2 Stage 3

Start: Finish:

01-Jan-12 31-May-13

Project Stages StartsStage 1 - Inception 01-Jan-12Stage 2 - Concept and Viability 01-FebStage 3 - Design Development 01-MarStage 4 - Documentation and Procurement 01-AprStage 5 - Construction 01-JunStage 6 - Close-out 01-Apr-13Total Project Period 17 Months

Stage 4 Stage 5 Stage 6

Project Timeline



Estimated Total Cost R 15 213 547.96Contractors Fee R 0.00Contingencies -R 731 500.00VAT -R 1 868 330.45

Total Value for Fee Purposes R 12 613 717.51

Project value range R 8 000 000.00 - R 16 000 000.00

Primary fee R 472 000.00Marginal fee 5.06% R 233 454.11

Total Basic Fee R 705 454.11

Stages Percentage (%) Amount 1- Inception 2.5% R 17 636.352- Concept and Viability 5.0% R 35 272.713- Design Development 7.5% R 52 909.064 - Documentation and Procurement 35.0% R 246 908.94 Stages5 - Construction 45.0% R 317 454.35

Month 1 R 31 745.43 Inception R 17 636.35 R 17 636.35Month 2 R 31 745.43 Concept and Viability R 35 272.71 R 52 909.06Month 3 R 31 745.43 Design Development R 52 909.06 R 105 818.12Month 4 R 31 745.43 Documentation and Procurement R 246 908.94 R 352 727.05Month 5 R 31 745.43 Construction R 317 454.35 R 317 454.35Month 6 R 31 745.43 Close out R 35 272.71 R 705 454.11Month 7 R 31 745.43Month 8 R 31 745.43Month 9 R 31 745.43

Month 10 R 31 745.436 - Close Out Period 5.0% R 35 272.71

Value for Fee Purposes

Basic Fee

Portion of Fees to Stages

Cummulative Fee

QS Fees






Primary fee R 87 000.00Marginal fee 6.75% R 851 425.93Total Fees R 938 425.93

Stages Percentage (%) Amount 1- Inception 5.0% R 46 921.302- Concept and Viability 15.0% R 140 763.893- Design Development 20.0% R 187 685.194 - Documentation and Procurement 30.0% R 281 527.78 Stages Cummulative Amount5 - Construction 17.0% R 159 532.41



Note : The architect's fees are reduced by 10% for Stage 5, as the Project Manager is the Principal Agent


Basic Fee


Cummulative Fee

Architect Fees




Building Electrical Installation R 660 000.00 Note: Rates based on Davis Langdon HandbookBuilding Electronic Installation R 550 000.00Fire Detection R 330 000.00


Value for Electrical Engineering Fees R 990 000.00 Value for Electrical Engineering Fees R 550 000.00

Project value range R 512 000.00 - R 1 280 000.00 Project value range R 512 000.00 - R 1 280 000.00

Primary charge R 76 800.00 Primary charge R 76 800.00Marginal charge 15% R 71 700.00 Secondary fee over minimum range 15% R 5 700.00

Total Basic Fee R 148 500.00 Total Basic Fee R 82 500.00

R 231 000.00*the are two different fee scales for electrical and electronic work

Stages Percentage (%) Amount 1- Inception 5.0% R 11 550.002- Concept and Viability 15.0% R 34 650.003 - Design Development & Documentation and Procurement 30.0% R 69 300.004 - Contract Administration and Inspection 40.0% R 92 400.00 Stages Cummulative Amount

Month 1 R 9 240.00Month 2 R 9 240.00 Inception R 11 550.00 R 11 550.00Month 3 R 9 240.00 Concept and Viability R 34 650.00 R 46 200.00Month 4 R 9 240.00 Design Development & Procurement and Documentation R 69 300.00 R 115 500.00Month 5 R 9 240.00 Contract Administration and Inspection R 92 400.00 R 207 900.00Month 6 R 9 240.00 Close out R 23 100.00 R 231 000.00Month 7 R 9 240.00Month 8 R 9 240.00Month 9 R 9 240.00


Cummulative Fee

Electrical engineer


Total Electrical Engineering Works fee:

Basic Fee for Electrical Engineering Basic Fee for Electronic Engineering



Value for Fee PurposesR 15 213 547.96

Proportion of Concrete Formwork 19.27%and Reinforcement R 2 931 650.69(estimated from previous projects)



Primary charge R 160 000.00Marginal charge 10% R 165 165.07

Total Basic Fee R 325 165.07

Stages Percentage (%) Amount 1- Inception 5.0% R 16 258.252- Concept and Viability 25.0% R 81 291.273- Design Development 30.0% R 97 549.524 - Documentation and Procurement 15.0% R 48 774.76 Stages Frequency Distribution Cummulative Frequency5 - Contract and Administration 20.0% R 65 033.01



Structural engineer


Cummulative Fee

Basic Fee






Basic Fee R 236 000.00Marginal Rate 4.43% R 558 787.69

Total Fees R 794 787.69

Stages Percentage (%) Amount 1- Inception 10.0% R 79 478.772- Concept and Viability 10.0% R 79 478.773- Design Development 25.0% R 198 696.924 - Documentation and Procurement 10.0% R 79 478.77 Stages Cummulative Amount5 - Construction 40.0% R 317 915.07



Project Manager FeesValue for Fee Purposes

Basic Fee


Cummulative Fee



Date of Payment ( End of each month)

Months Works StagesQuantity Surveyor

ArchitectElectro-Mechanical Engineer

Structural Engineer

Project Manager

Total paid Cumalative Total

31-Jan-12 Inception R 17 636.35 R 46 921.30 R 11 550.00 R 16 258.25 R 79 478.77 R 171 844.67 R 171 844.6729-Feb-12 Concept and Viability R 35 272.71 R 140 763.89 R 34 650.00 R 81 291.27 R 79 478.77 R 371 456.63 R 543 301.3031-Mar-12 Design Development R 52 909.06 R 187 685.19 R 23 100.00 R 97 549.52 R 198 696.92 R 559 940.69 R 1 103 241.9930-Apr-12 Documentation and Procurement R 123 454.47 R 140 763.89 R 23 100.00 R 24 387.38 R 39 739.38 R 351 445.12 R 1 454 687.11

31-May-12 R 123 454.47 R 140 763.89 R 23 100.00 R 24 387.38 R 39 739.38 R 351 445.12 R 1 806 132.2330-Jun-12 Construction R 31 745.43 R 15 953.24 R 9 240.00 R 6 503.30 R 31 791.51 R 95 233.48 R 1 901 365.7230-Jul-12 Month 2 R 31 745.43 R 15 953.24 R 9 240.00 R 6 503.30 R 31 791.51 R 95 233.48 R 1 996 599.20

31-Aug-12 Month 3 R 31 745.43 R 15 953.24 R 9 240.00 R 6 503.30 R 31 791.51 R 95 233.48 R 2 091 832.6930-Sep-12 Month 4 R 31 745.43 R 15 953.24 R 9 240.00 R 6 503.30 R 31 791.51 R 95 233.48 R 2 187 066.1731-Oct-12 Month 5 R 31 745.43 R 15 953.24 R 9 240.00 R 6 503.30 R 31 791.51 R 95 233.48 R 2 282 299.6630-Nov-12 Month 6 R 31 745.43 R 15 953.24 R 9 240.00 R 6 503.30 R 31 791.51 R 95 233.48 R 2 377 533.1431-Dec-12 Month 7 R 31 745.43 R 15 953.24 R 9 240.00 R 6 503.30 R 31 791.51 R 95 233.48 R 2 472 766.6331-Jan-13 Month 8 R 31 745.43 R 15 953.24 R 9 240.00 R 6 503.30 R 31 791.51 R 95 233.48 R 2 568 000.1128-Feb-13 Month 9 R 31 745.43 R 15 953.24 R 9 240.00 R 6 503.30 R 31 791.51 R 95 233.48 R 2 663 233.5931-Mar-13 Month 10 R 31 745.43 R 15 953.24 R 9 240.00 R 6 503.30 R 31 791.51 R 95 233.48 R 2 758 467.0830-Apr-13 Close - out R 17 636.35 R 14 076.39 R 11 550.00 R 8 129.13 R 19 869.69 R 71 261.56 R 2 829 728.64

31-May-13 R 17 636.35 R 14 076.39 R 11 550.00 R 8 129.13 R 19 869.69 R 71 261.56 R 2 900 990.20

Total Estimated Professional Fees R 2 900 990.20

Percentage of fees to Building Cost: R 2 900 990.20R 15 213 547.96

19.07%

Professional Fee Monthly Cash Flow

Total Paid Out In Each Month

Cumalative Total

R 0.00

R 100 000.00

R 200 000.00

R 300 000.00

R 400 000.00

R 500 000.00

R 600 000.00

01-Jan-12 01-Feb-12 01-Mar-12 01-Apr-12 01-May-12 01-Jun-12 01-Jul-12 01-Aug-12 01-Sep-12 01-Oct-12 01-Nov-12 01-Dec-12 01-Jan-13 01-Feb-13 01-Mar-13 01-Apr-13 01-May-13

Total paid

Total paid

R 0.00

R 500 000.00

R 1 000 000.00

R 1 500 000.00

R 2 000 000.00

R 2 500 000.00

R 3 000 000.00

R 3 500 000.00

01-Jan-12 01-Feb-12 01-Mar-12 01-Apr-12 01-May-12 01-Jun-12 01-Jul-12 01-Aug-12 01-Sep-12 01-Oct-12 01-Nov-12 01-Dec-12 01-Jan-13 01-Feb-13 01-Mar-13 01-Apr-13 01-May-13

Cumalative Total

Cumalative Total



Professional Practice – CON 4034W

Mbulelo Gushu (GSHMBU001)

Provisional Sums Motivation

Introduction

This essay seeks to discuss the reasons behind the trades which were measures as provisional sums

in my Enter the Dragon Office project. The final Bills of Quantities had a total of seven provisional

sums. One of these provisional sums was an instruction on the issued drawing, and the others were

items which the quantity survey rarely measures or which I felt I couldn’t measure for reasons which

will be discussed.

Plumbing and drainage

The plumbing and drainage trade is definitely a trade that can be measured; however it is mostly

always measured provisionally and re-measured when it is completed to get its actual value. This is

because of work such as pipe layout which can always change and be decided upon as the plumbing

and drainage installation takes form. It is also prevalent in most commercial building projects that

the clients are undecided with sanitary fittings and tend to only make up their minds later during the

construction of the building.

Depending on the level of specification and information provided by the architect, it will sway the

quantity surveyor to either measure it or not measure plumbing and drainage. This trade also tends

to affect the work of other trades, and thus sometimes requires extensive consultation with other

project team members. An example being that of putting is large diameter pipe through structural

concrete, which may have an effect of the structural integrity of the building. A structural engineer

would then be needed to consult on such an operation.

For our project the above considerations weren’t outlined and it would have been very risky for me

to measure this trade based on the little information provided.

Electrical installation

Electrical installation in most building projects requires the input of an electrical engineering

consultant, a member of the professional team, in order to be accurately measured and installed.

This trade also requires extensive design considerations and inputs. These often vary up to

completion of the works. A nominated/selected subcontractor is likely to be considered for doing

this task as the client may have very specific requirements and preference to the work of a certain



installation company, this relationship between the client and the electrical installers adds to the

difficulty of measuring this trade. If the relationship is casual it could lead to a lot of confusion as to

what exactly is to specify.

The quantity surveyor is not well equipped in terms of electrical design and installation. It would

therefore be a very risky decision for a quantity surveyor to undertake the responsibility of

measuring this item, because of the many considerations discussed above. The most common way

used in industry to deal with this trade is to estimate a sum of how much it will cost. This value could

be attained from previous projects with similar uses, floor areas and standard of installation.

For our project there was no specification given with regards to this trade, therefore making it

difficult for it to be measured. If I had chosen to measure this trade I would have had to make many

assumptions on the electrical layout and the extent of electrical use throughout the building. These

assumptions would have been based on very little experience on electrical installation in buildings.

Mechanical Installation

Mechanical installation is similar to that of electrical installation. It is also a specialised trade and

needs the assistance of a competent mechanical engineer to adequately measure. The mechanical

engineer would have to know exactly what mechanical works are required within the building and

also understand the client’s needs. This trade involves specialist considerations such as lifts, air-

conditioning and ventilation installation.

No specification for the above listed items was given in our project drawings and no other

supplementary information was mentioned. A lot of research would have had to be done in order to

choose the best mechanical systems for this building and more work to pick the most effective

layouts and specifications. We have been taught about this technology, however when measuring

this trade with no specifications and no design considerations from an engineer it can be a time

consuming process which could end up not being worthwhile to the quantity surveyor in terms of

the overall bill production.

Lift Installation

Aspects of lift installation are covered above in Mechanical Installation.

There are only a few lift manufacturers in the country, making it highly specialised. The lift

manufacturers are heavily involved in the lift installation and are appointed on a design and build

bases. No other professional team member is equipped to measure the lift installation to the tee as

the knowledge of this trade is limited to a selected few.



When getting the value of Lift Installation I looked at the cost of lifts in other buildings through their

bills of quantities. I found the lifts which had a similar specification to what I envisaged our lift to be.

I then took the value divided by the number of stops to get a cost per stop; I then used that result to

get to the provisional sum of a four-stop lift with standard car specifications. To also get an idea of

the lift I used the Auto Spec website where I got a specification which I included in my Lift

Installation Mini Bill.

Fire protection

In order for this trade to be well balanced in terms of costs and effectively minimising fire risk in a

building, it needs specialist consultation, design and installation. An investigation into the building

and its future intended use has to be conducted in order to specify the type of fire protection

installation.

In some cases a few hose reels and hand held extinguishers may be suitable, whereas in other cases

smoke detectors, sprinkler systems and fire brigade considerations like external wall cat ladders and

emergency exits may be needed.

In the given drawings for our project no fire protection considerations were specified and none were

shown on the drawings. Thus measurement of fire protection would have been purely based on a

few assumptions which would have differed for each person who made the choice to measure it.

Waterproofing

Waterproofing itself isn’t a very specialist trade, however depending on where it is being applied it

can turn into a complicated operation. In this building there was waterproofing to the basement,

which was something new, which would have required waterproofing principals to elements

covered MDA II last year to be applied. In my general approach to the production of bills of

quantities I tended to push the waterproofing to the end of my to-do list as I wasn’t sure of the

specification and the order of which it was going to be installed. With waterproofing there are also

many alternatives which may be discussed and suggested by engineers and contractors. These

alternatives include waterproof concrete and other forms of waterproofing which can be applied to

the elements which make up the basements.

I decided to allocate a provisional sum amount for this trade because it was uncertain as to what

waterproofing was specified to the basement and I don’t think I was in the position to make any

specification assumptions which would adequately waterproof the basement structure. As a result

of me not being able to accurately a part of this trade, I didn’t measure it as a whole trade. Not



measuring the entire trade also allowed me to get a better understanding of the cost of

waterproofing as a trade and made it simpler to get pricing information.

Steel Reinforcement to Basement

This was one of the instructions on the drawing, “To allow an amount of R30 000 for steel

reinforcement to the basement”.

I believe this amount was included as an allowance because of the uncertainties of constructing

below the ground, such as encounters with unexpected soil or the inability for the building’s load to

be distributed through the basement structural element. Also this amount may be left for the work

of a specialist professional to design and install the steel reinforcement to the basement.

Conclusion

Provisional sums are used in almost every bill of quantities produced by a quantity surveyor;

however their use should be done with a lot of caution. A great amount of thought should be put

into deciding on an amount of a specific provisional sum. As this was our first bill of quantities we

had to produce, the information we used for pricing our provisional sums was taken from other bills

of quantities produced by other quantity surveyors and through consultation of other professionals.

We however had to apply our minds in using the values we got and making them relevant to our

project. I learnt a lot through this exercise and believe it enhanced my judgment of costs ability.



PBA - MASTER PROCUREMENT DOCUMENTS - AUGUST 2010

LRE 2012

Offer

procurement of

THE OFFERED TOTAL OF THE PRICES INCLUSIVE OF VALUE ADDED TAX IS:

R

Signature(s)

Name(s)

Capacity

for the tenderer

Name and

address of

organization Date

Name and

signature

of witness Date

(Insert employer or QS logo or delete or move logo elsewhere on page if required)

The construction of Little Ravens Educare, in Ravensmead, Cape Town. Erf No. parow 22988

This offer may be accepted by the employer by signing the acceptance part of this form of offer and acceptanceand returning one copy of this document to the tenderer before the end of the period of validity stated in thetender data, whereupon the tenderer becomes the party named as the contractor in the conditions of contractidentified in the contract data.

9 035 000.00

C1.1 Form of Offer and Acceptance

The employer, identified in the acceptance signature block, has solicited offers to enter into a contract for the

The tenderer, identified in the offer signature block, has examined the documents listed in the tender data andaddenda thereto as listed in the returnable schedules, and by submitting this offer has accepted the conditions oftender.

By the representative of the tenderer, deemed to be duly authorized, signing this part of this form of offer andacceptance, the tenderer offers to perform all of the obligations and liabilities of the contractor under the contractincluding compliance with all its terms and conditions according to their true intent and meaning for an amount tobe determined in accordance with the conditions of contract identified in the contract data.

Mbulelo Gushu and David Oliphant

Company Directors

Nine Million and Thirty Five Thousand Rand

Overnight Construction Pty(Ltd)

15 Grotto Road, Rondebosch

Cape Town 20th April 2012

20th April 2012

Edmond Tutu

ContractPart C1: Agreement and Contract Data Page 1 of 3

C1.1Form of Offer and Acceptance




Acceptance

The terms of the contract, are contained in:

Part C1: Agreement and Contract Data, (which includes this agreement)Part C2: Pricing DataPart C3: Scope of WorkPart C4: Site Information

Signature(s)

Name(s)

Capacity

for the

Employer

Date

Name and

signature

of witness Date

Deviations from and amendments to the documents listed in the tender data and any addenda thereto as listedin the returnable schedules as well as any changes to the terms of the offer agreed by the tenderer and theemployer during this process of offer and acceptance, are contained in the schedule of deviations attached toand forming part of this form of offer and acceptance. No amendments to or deviations from said documentsare valid unless contained in this schedule.

By signing this part of this form of offer and acceptance, the employer identified below accepts the tenderer'soffer. In consideration thereof, the employer shall pay the contractor the amount due in accordance with theconditions of contract identified in the contract data. Acceptance of the tenderer's offer shall form an agreementbetween the employer and the tenderer upon the terms and conditions contained in this agreement and in thecontract that is the subject of this agreement.

and drawings and documents or parts thereof, which may be incorporated by reference into Parts C1 to C4above.

The tenderer shall within twenty one (21) calendar days after receiving a completed copy of this agreementincluding the schedule of deviations (if any), contact the employer's Principal Agent (whose details are given inthe contract data) to arrange the delivery of any securities, bonds, guarantees, proof of insurance and any otherdocumentation to be provided in terms of the conditions of contract identified in the contract data. Failure to fulfillany of these obligations in accordance with those terms shall constitute a repudiation of this agreement.

Notwithstanding anything contained herein, this agreement comes into effect on the date when the tendererreceives one fully completed copy of the original document including the schedule of deviations (if any). Unlessthe tenderer (now Contractor) within five working days of the date of such receipt notifies the Employer in writingof any reason why he cannot accept the contents of this agreement, this agreement shall constitute a bindingcontract between the parties.

Tim Taite

Quantity Surveyor

Richard Goldstein

Edmond Tutu

20th April 2012

20th April 2012






Schedule of Deviations

Notes:

1

2

3

4

1 Subject ………………………………………………………………………………………………………………..

Details ………………………………………………………………………………………………………………..

………………………………………………………………………………………………………………..

………………………………………………………………………………………………………………..

………………………………………………………………………………………………………………..

2 Subject ………………………………………………………………………………………………………………..

Details ………………………………………………………………………………………………………………..

………………………………………………………………………………………………………………..

………………………………………………………………………………………………………………..

………………………………………………………………………………………………………………..

3 Subject ………………………………………………………………………………………………………………..

Details ………………………………………………………………………………………………………………..

………………………………………………………………………………………………………………..

………………………………………………………………………………………………………………..

………………………………………………………………………………………………………………..

4 Subject ………………………………………………………………………………………………………………..

Details ………………………………………………………………………………………………………………..

………………………………………………………………………………………………………………..

………………………………………………………………………………………………………………..

………………………………………………………………………………………………………………..

The extent of deviations from the tender documents issued by the employer before the tender closing dateis limited to those permitted in terms of the conditions of tender.A tenderer's covering letter shall not be included in the final contract document. Should any matter in suchletter, which constitutes a deviation as aforesaid, become the subject of agreements reached during theprocess of offer and acceptance, the outcome of such agreement shall be recorded here

Any other matter arising from the process of offer and acceptance either as a confirmation, clarification orchange to the tender documents and which it is agreed by the Parties becomes an obligation of the contractshall also be recorded here.

Any change or addition to the tender documents arising from the above agreements and recorded here,shall also be incorporated into the final draft of the Contract.

By the duly authorised representatives signing this agreement, the Employer and the Tenderer agree to andaccept the foregoing schedule of deviations as the only deviations from and amendments to the documentslisted in the tender data and addenda thereto as listed in the returnable schedules, as well as any confirmation,clarification or changes to the terms of the offer agreed by the Tenderer and the Employer during this process ofoffer and acceptance.

It is expressly agreed that no other matter whether in writing, oral communication or implied during the periodbetween the issue of the tender documents and the receipt by the tenderer of a completed signed copy of thisAgreement shall have any meaning or effect in the contract between the parties arising from this agreement.





Ravensmead Community Facilities – Little Ravens EducareTender Adjudication and Recommendation

Date: 24 April

Project title Ravensmead Community Facilities – Little Ravens Educare

Client Client: Richard Goldstein

Job No. LRE2012

Project Quantity Surveyor

Document Tender Adjudication and Recommendation

Issued 25-May-12

Client: Richard Goldstein

Tim Taite

File Name: little ravens tender reportPrint Date: 2012/05/25 Page No: 1



Ravensmead Community Facilities – Little Ravens EducareClient: Richard GoldsteinTender Adjudication and RecommendationSummary

1.0 Tenders issued

1.1 SIMS Construction1.2 DVW Construction1.3 AppleKurt Construction1.4 AKITANARHGANTA1.5 NTM Construction1.6 CBA Construction1.7 KGS Construction Pty Ltd1.8 MMIN Associates1.9 Penso Millatt Construction1.10 Overnight Construction1.11 EPIC Zain and Bulelani QS1.12 JB QS associates ltd1.13 Ncence Maya & Partners

2.0 Site inspection

Ncence Maya & Partners

Penso Millatt Construction

3.0 TENDERS RECEIVED:

3.1Tenderer Tender Amount incl. VAT Difference to lowest %

1 Ncence Maya & Partners R 5 600 047.07 (R 4 719 159.58) -45.7%

2 AKITANARHGANTA

R 8 462 801.51 (R 1 856 405.14) -18.0%

3 EPIC Zain and Bulelani QS

R 8 860 672.00 (R 1 458 534.65) -14.1%

4 JB QS associates ltd

R 8 982 592.00 (R 1 336 614.65) -13.0%

5 Overnight Construction

R 9 035 000.00 (R 1 284 206.65) -12.4%

6 DVW Construction R 9 771 430.00 (R 547 776.65) -5.3%

7 AppleKurt Construction

R 9 849 524.00 (R 469 682.65) -4.6%

8 KGS Construction Pty Ltd

R 9 850 000.00 (R 469 206.65) -4.5%

9 MMIN Associates R 9 966 000.00 (R 353 206.65) -3.4%

10 SIMS Construction R 10 000 300.52 (R 318 906.13) -3.1%

11 NTM Construction R 11 151 607.60 R 832 400.95 8.1%

12 Penso Millatt Construction

R 13 933 699.32 R 3 614 492.67 35.0%

13 CBA Construction R 14 380 000.00 R 4 060 793.35 39.4%

Current Date: 25 May 2012

Tender documents were issued on 19 April 2012 to the following firms:

A site inspection meeting was held on 13th April 2012. The following tenderer's were absent:

Tenders closed at 09:00am on 20th April 2012 and the following submissions were received:




Ravensmead Community Facilities – Little Ravens EducareClient: Richard GoldsteinTender Adjudication and RecommendationSummaryCurrent Date: 25 May 2012

4.0 Budget comparisonComparison between the current budget and the amount of the three recommended tenders is as follows:-4.1 MMIN Associates

4.1.1 Budget based on estimate of R 10 319 206.65 No. RVM1101 dated 22- November 2011 :

4.1.2 Amount of recommended tender: R 9 966 000.00

4.1.3 Difference: Savings

4.2 SIMS Construction



4.2.3 Difference: Savings (R 318 906.13)

4.3 NTM Construction



4.3.3 Difference: Extra R 832 400.95

(R 353 206.65)




Ravensmead Community Facilities – Little Ravens EducareClient: Richard GoldsteinTender Adjudication and RecommendationSummaryCurrent Date: 25 May 2012

The above construction firms were chosen to be reviewed as they are the closest to the estimated cost of the project, inclusive of value added tax (VAT). NTM Construction was considered, even though their tendered amount was greater than the estimated cost because oftheir expertise with projects in the Ravensmead community with similar projects such as the Crows Secondary School completed inNovember 2011 for the Western Cape Department of Education. The other tenderers below the estimated cost were not considered for thisevaluation as it was felt that they had not allocated enough resources to complete the project within constraints of time and money. The firm's that have tendered an amount with a positive difference of greater than 10% were also not considered as it was felt that their costs were toohigh for the intended budget.

5.0 Broad-based black economic empowerment status of Tenderers: (optional)Only the 3 construction firm's B-BBEE status' were considered for this report, even though all tenderers were required to submit their B-BBEE Status.

MMIN Associates Level 3 - B-BBEE

SIMS Construction Level 5 B-BBEE

NTM Construction Level 4 B-BBEE

6.0 RECOMMENDATION:We make the recommendation that the contract to construct Little Ravens Educare be awarded wholly to:MMIN Associates

1. SIMS Construction was the closest to the estimated value, varying by 3.1% less. However, as a construction company they had a few issues with meeting some of the requirements firmly set out by the employer. Some of the key requirements were strictly a Level 3 B-BBEE rating and work experience in the past 5 years in the Ravenmead community.

2. MMIN Associates has a better equipped staff in terms of the desirable professional competence and delivery required for this project. We alsocan deduce from the more experienced staff a higher level of competence from MMIN Associate in the delivery of this project.

3. After careful consideration, the extra cost of R832 400.95 that came in with the tender from NTC Construction was not worth it from a financial pointof view, even though of their expertise with work in the area. MMIN Associate had a significantly lower number of jobs completed in the area, they metthe requirement set by the client.

This recommendation is based on the following;




no. 001

CLIENT: MR. BRUCE LEEDATE: 11-May-12

PREPARED BY: MBULELO GUSHU

QUANTITY SURVEYOR: ARCHITECT: PROJECT MANAGER

BREATHE FIRE COST CONSULTANTS CAVE ARCHITECTS LU PROJETSGREAT WALL BUILDING: OFFICE 723 79 TAIL STREET 21 SCALE STREET71 PROSPECTUS STREET STELLENBOSCH CAPE TOWNRONDEBOSCH 9100 800

7700TEL: (0)21 645 9835 TEL: (022) 649 721 TEL: (0)21 870 9988

FINANCIAL REPORT

ENTER THE DRAGON OFFICE PROJECT

BREATHE FIRE COST CONSULTANTS



FINANCIAL REPORTno. 001

DATE: 11-May-12

Dear Mr. Bruce Lee

This letter is a response to the variations decided on during the past two meetings held this month. The document contains the variations and how

they affect the cost of this project.

The project variations were of a the decision take to change the top floor of the building into an apartment level. The following specification changes were

agreed on by the project team and the client:

New Wall Finish Specification: Plascon Valvaglo

New Floor Finish Specification: Ceremic Tiles

New Ceiling Finish: Nailed-up ceilings

New Windows: Wooden Frame

Intercommunication Facilities

Decrease number of list stops by one

Decrease scope of HVAC installation on the top level

Other variations including construction technology changes such as new internal divisions, decreased number of doors, decreased plumbing and drainage, etc

Summary of main findings:

1 Lift Installation: The ommision of the stop the that was to be on the top floor has resulted in the biggest variation which has become a saving of R137 500 to the clientResidents to the apartment level are now going to use the existing flight of stairs to access the apartment

2 Mechanical Installation The ommision of the Heating Ventilation and Air Conditioning components in the top floor have resulted in aR62 920 saving to the client. The tenents are going to be required to fit in their own HVAC systems should they desire such

3 Elctronic Installation The addition of an intercommunication facility to the top floor results in an extra cost of R44 000

4 Floor Finishes The changes in the floor expenses resulted in an extra cost of R38 500. This cost is of the NET result of theommision of the carpet tiles, R45 100, and the additon of ceramic floor tiles, R83 600

Conclusions and Comments

The total costs of the approved variations slightly increase the building costs of the project. However the main decreases come from the provisional sums,where most of the scope was decreased.

Contingencies have remained unchanged as they are to be used during the construction period.

The preliminaries were also effected through the change in value percentage, this change was however very small

The total professional fees decreased as a result of the decrease in the scope of Electrical and Mechanical work. The Quantity Surveyor and the Architect experienced increases in their fees due to increased and additional measurable items. However the NET change in total fees resulted in savings of R198 371

For any quries please do not hesitate to get into contact with us

Kind regards,Mbulelo Gushu

[email protected](0)21 879 4578

BREATHE FIRE COST CONSULTANTS

COVER LETTER


mailto:[email protected]


Descriptions Approved contract amount Previous report Changes from previous report Total change Current estimated final amount

1 Preliminaries R 1 019 920.00 - - -R 279.30 R 1 019 640.702 Building Works R 8 887 171.00 - - R 11 708.00 R 8 898 879.00

3Prime cost amounts, provisional sums, etc R 2 172 900.00 - - -R 201 520.00 R 1 971 380.00

3.1 Plumbing and drainage R 275 500.00 - - -R 11 100.00 R 264 400.003.2 Mechanical R 1 012 000.00 - - -R 62 920.00 R 949 080.003.3 Electrical R 290 400.00 - - R 10 000.00 R 300 400.003.4 Lifts R 550 000.00 - - -R 137 500.00 R 412 500.003.5 Roller Shutter Doors R 45 000.00 - - R 45 000.00

- -4 Sub-totals R 12 079 991.00 - - -R 189 812.00 R 11 890 179.005 Contingencies R 731 500.00 - - R 0.00 R 731 500.00

- -6 Sub-totals R 12 811 491.00 - - -R 189 812.00 R 12 621 679.007 VAT (14%) R 1 793 608.74 - - R 0.00 R 1 767 035.06

- -8 Sub-totals R 14 605 099.74 - - -R 189 812.00 R 14 415 287.749 Professional fees, etc R 2 924 550.06 - - -R 198 371.14 R 2 726 178.92

TOTAL R 17 529 649.80 -R 388 183.14 R 17 141 466.66

SUMMARY PAGE



REF DESCRIPTION OMISSIONS ADDITIONS VARIATION Remarks Change of Preliminaries Calculation:

Total VALUE prelims: R 22 626.42Total value % change 97.79%

22125.372071 Half Brick Walls 2 200 Meeting 1: 02 May 2012 VALUE preliminaries change -R 501.05

OMIT: Cost of walls 6 300ADD: Cost of building new wall 8 500

2 Wal finishes 6 500 Meeting 1: 02 May 2012OMIT: Cost of Plaster and paint 8 000ADD: Cost of Plaster and Plascon Valvago paint 14 500

3 Floor finishes 38 500 Meeting 1: 02 May 2012OMIT: Cost of carpet tiles 45 100ADD: Cost of new ceramic tiles 83 600

4 Ceilings (19 500) Meeting 1: 02 May 2012OMIT: Cost of suspended ceilings 49 500ADD: Cost of putting up new nailed-up ceiling 30 000

5 CONTINGENCY ADJUSTMENT Decision made by client and P.A

No contingency adjustment

6 Doors (15 502) Meeting 2: 09 May 2012

OMIT: Remove all all doors 31 000Also see new new door

scheduleADD: Add newly specidies apartment doors 15 498

7 Windows OMIT: Windows 2 500 (490) Meeting 2: 09 May 2012ADD: New Wooden framed windows 2 010

8 Mechanical (62 920) Meeting 2: 09 May 2012OMIT: HVAC installation 48 400OMIT: Fire protection 14 520

0

9 Electronic intallation 44 000 Meeting 2: 09 May 2012ADD: Inercommunication facilities 44 000

10 Electrical installation (34 000)OMIT: Light fightings 90 000ADD: New light fightings 50 000ADD: Power supply to stove 6 000

11 Plumbing and drainage (11 100) Meeting 2: 09 May 2012OMIT: Cost of WCs and Urinals 13 500OMIT: Cost of Urinal 3 600ADD: Bath and Shower 6 000

Meeting 2: 09 May 201212 Lift (137 500)

OMIT: Cost of the last stop 137 500

Total cost of variations -R 189 812.00

VALUATIONS BREAKDOWN



CLIENT'S CASHFLOWS BEFORE VARIATIONS

R 261 300.00 R 261 300.00 R 297 882.00R 997 200.00 R 735 900.00 R 838 926.00

R 2 100 200.00 R 1 103 000.00 R 1 257 420.00R 3 462 700.00 R 1 362 500.00 R 1 553 250.00R 4 977 000.00 R 1 514 300.00 R 1 726 302.00R 6 535 600.00 R 1 558 600.00 R 1 776 804.00R 8 030 800.00 R 1 495 200.00 R 1 704 528.00R 9 355 000.00 R 1 324 200.00 R 1 509 588.00

R 10 400 700.00 R 1 045 700.00 R 1 192 098.00R 11 060 100.00 R 659 400.00 R 751 716.00

R 11 060 100.00 R 12 608 514.00excl. VAT incl. VAT

CLIENT'S CASHFLOWS AFTER VARIATIONS

R 256 800.00 R 256 800.00 R 292 752.00R 980 100.00 R 723 300.00 R 824 562.00

R 2 064 200.00 R 1 084 100.00 R 1 235 874.00R 3 403 300.00 R 1 339 100.00 R 1 526 574.00R 4 891 600.00 R 1 488 300.00 R 1 696 662.00R 6 423 400.00 R 1 531 800.00 R 1 746 252.00R 7 893 000.00 R 1 469 600.00 R 1 675 344.00R 9 194 500.00 R 1 301 500.00 R 1 483 710.00

R 10 222 200.00 R 1 027 700.00 R 1 171 578.00R 10 870 300.00 R 648 100.00 R 738 834.00

R 10 870 300.00 R 12 392 142.00excl. VAT incl. VAT

CONSTRUCTION CASHFLOWS

Cumalive Payment Monthly PaymentMothly Cashflow

including VAT

Cumalive Payment Monthly PaymentMonthly Cashflow

including VAT

0

2 000 000

4 000 000

6 000 000

8 000 000

10 000 000

12 000 000

1 3 5 7 9Time (Months)

0

2 000 000

4 000 000

6 000 000

8 000 000

10 000 000

12 000 000

1 3 5 7 9Time (Months)



Months Total paid Cumalative Total31-Jan-12 R 173 096.30 R 173 096.3029-Feb-12 R 376 098.28 R 549 194.5831-Mar-12 R 565 960.64 R 1 115 155.2230-Apr-12 R 353 756.63 R 1 468 911.85

31-May-12 R 353 756.63 R 1 822 668.4830-Jun-12 R 95 823.84 R 1 918 492.3230-Jul-12 R 95 823.84 R 2 014 316.15

31-Aug-12 R 95 823.84 R 2 110 139.9930-Sep-12 R 95 823.84 R 2 205 963.8331-Oct-12 R 95 823.84 R 2 301 787.6630-Nov-12 R 95 823.84 R 2 397 611.5031-Dec-12 R 95 823.84 R 2 493 435.3431-Jan-13 R 95 823.84 R 2 589 259.1828-Feb-13 R 95 823.84 R 2 685 083.0131-Mar-13 R 95 823.84 R 2 780 906.8530-Apr-13 R 71 821.60 R 2 852 728.45

31-May-13 R 71 821.60 R 2 924 550.06

Months Total paid Cumalative Total31-Jan-12 R 164 648.60 R 164 648.6029-Feb-12 R 352 761.26 R 517 409.8531-Mar-12 R 536 354.81 R 1 053 764.6730-Apr-12 R 321 478.68 R 1 375 243.35

31-May-12 R 321 478.68 R 1 696 722.0430-Jun-12 R 89 521.60 R 1 786 243.6430-Jul-12 R 89 521.60 R 1 875 765.24

31-Aug-12 R 89 521.60 R 1 965 286.8530-Sep-12 R 89 521.60 R 2 054 808.4531-Oct-12 R 89 521.60 R 2 144 330.0530-Nov-12 R 89 521.60 R 2 233 851.6531-Dec-12 R 89 521.60 R 2 323 373.2631-Jan-13 R 89 521.60 R 2 412 894.8628-Feb-13 R 89 521.60 R 2 502 416.4631-Mar-13 R 89 521.60 R 2 591 938.0730-Apr-13 R 67 120.43 R 2 659 058.49

31-May-13 R 67 120.43 R 2 726 178.92

Professional Fees Before Variations

Professional Fees After Variations

Professional Fees Cashflows

R 0.00

R 500 000.00

R 1 000 000.00

R 1 500 000.00

R 2 000 000.00

R 2 500 000.00

R 3 000 000.00

Cumalative Total Before Variations

Cumalative Total

R 0.00

R 500 000.00

R 1 000 000.00

R 1 500 000.00

R 2 000 000.00

R 2 500 000.00

R 3 000 000.00

Cumalative Total After Variations

Cumalative Total



Stage Six – Final Account / Close-out Stage

Prepared by: Mbulelo Gushu David Oliphant

• Issued defects list cost implications

• Closing out defects list• Defects liability period-

90 working days after practical completion

Defects

• Adjudicate claims• Convert substantiatd

claims to contract instructions

Contractor's claims

• Evaluate in recovery statement

• Reflect in final accountPenalties

• Cost all approved variations

• Price all contract instructions

Variations and Contract

Instructions

• Adjust to actual final value

• Re-measure and adjust• Verify that

contingencies have been deducted

Provisional Sums, Prime Cost Amounts

and Provisionally Measured Items

Contingencies

• Calculating/ Verifying values

• Adjustment to values accordingly

Escalation Calculations

• Issue the contractor with the original BOQ and the dinal account

statement • Contractor to accept

the final account statement within 45working days

Settlement of final account

