5/3/2015 Whatisthetakingoffprocess?ConstructionChat

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ConstructionChat/Articles/Whatisthetakingoffprocess?

Whatisthetakingoffprocess?Thequantitysurveyingprofessionhasbeenongoingformanyyears:TheearliestquantitysurveyingpracticeonrecordisaReadingfirm,(HenryCooperandSons),whichwasoperatingin1785(Seeley&Winfield,1999).Predominantly,quantitysurveyorsdealwiththecostsandcontractsofaconstructionproject.

Therearearound75,000professionalquantitysurveyorsworkingintheUKalone(RICS,2010).TheRoyalInstitutionofCharteredSurveyors(RICS)wassetupin1881,andisanindependentprofessionalbodywhichregulatespropertyprofessionalsandsurveyorsintheUKandworldwide.TheRICSprovideeducationandtrainingstandardstoallmembersandprotectsconsumerswithstrictcodesofpractice.ThemottooftheRICSisEstmodusinrebus(whichtranslatesintoEnglishas:Thereismeasureinallthings).TheRICSisrepresentedinover146countriesandhasmorethan159,000members.

BillofQuantities

TheBillofQuantitiesisadocumentwhichisusedforthetenderingprocessinaconstructionproject,inwhichmaterials,parts,andlabourareitemized.Italsodetailsthetermsandconditionsofthe

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constructioncontractanditemisesalltheworkforasubcontractortoprice.

TheBillofQuantitiesispreparedbyaquantitysurveyor.Thepreparationdividesitselfintotwodistinctstages,thefirstbeingthe

TheessaywilllookintotheTakingOffprocessrepresentedinaBillofQuantitiesandalsolookintowheretheTakingOffprocesscanbeused.IwillstartbylookingintowhatTakingOffactuallyis.measurementofdimensions,andthecompilationofdescriptionsfromthedrawingandspecification.ThisisknownasTakingOffwhichisthetopicthatIwilldiscussinthissectionoftheessay.

ThesecondstageisthepreparationoftheBillthisinvolvescalculationsofvolumesandareas(squaringthedimensions),followedbyenteringthedescriptionsandthedimensiononanabstract(abstracting)andfinallycollecttheitemstogetherandpresenttheminabillorder(billing)(Lee&Trench&Willis,2005).

TheTakingOffProcess

TheTakingOfflistisaprocessofanalysingtechnicaldrawingsandspecificationstoidentifyelements.Listsshouldincludeeverybuildingelementfromthesmallesttothelargestcomponent.Thedevelopmentofcomputerisedmeasurementandbillingsystemshavemadethetraditionalmethodlesscommonnowadayshowever,itisstillusedinpractice(Lee&Trench&Willis,2005).

TheTakingOfflistissymbioticwithRICSNewRulesofMeasurement.TheRICSNewRulesofMeasurementThisdocumentprovidesfundamentalguidanceonthequantificationofbuildingworksforthepurposeofpreparingcostestimatesandcostplans(www.rics.org/uk).TheRICSNewRulesofMeasurementisacodebookwhichdetailsthespecificationandalsomethodofhoweachitemintheconstructionindustryistobemeasured.Itcoversabsolutelyallphasesofaproposedbuildingproject.Thepresentationoftheinformationisdoneinclassificationtableswhichprovideinformationonthegivenitemtobetakenoff.TheuseoftheRICSNewRulesofMeasurementmeansthatallconstructionprojectsaretakenoffinthesamestandardorderandensuresconsistencyacrosstheindustry.QuantitysurveyinghasbecomeincreasinglyinvolvedwithprojectFINANCING ,thustakingoffisavaluableprocesstounderstandwhenestablishingprojectfeasibility.FromagoodTakingOfflistaquantitysurveyorcanquantifydimensionsandlatercreateabillofquantities.(Seeley,1999)

Ifthedrawingsareunclear,thenaquantitysurveyorwillenteranyqueriesonaquerysheetforthearchitect.Atypicalquerysheethasthequantitysurveyorsquestionsononesideandthearchitectsanswersontheother.

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WillissElementsofQuantitySurveying.ByS.Lee,W.Trench&A.Willis.

PreparationoftheBill

ThissectionwilldescribethesecondsectionoftheBillofQuantitieswhichisthepreparationofthebill.Thisisalsosometimesknownasworkingup.Thisissplitintothreesections.

1.Calculationofvolumes,areasetc.(Squaringanddimensions)Squaringthedimensionsand

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enteringtheresultinglengths,areas,andvolumesinthethird(orsquaring)columnofthedimensionpaper.

2.Enteringthedescriptionsandsquareddimensionsonanabstract(Abstracting)Transferringthesquareddimensionstotheabstract,wheretheyarewritteninarecognisedorder,readyforbillingunderthecorrectworkheading.

3.Collectingitemstogetherandpresentinginarecognisedbillorder(Billing)Theitemsofworkwhichmakeupthetotalbuildingarelistedintheappropriateworksectionheadingwhichgivesthedescriptionoftheitemandtherecognisedunitsofmeasurement,asperthelayoutinRICSNewRulesofMeasurement.Thebillalsocontainsanemptyrateandpricecolumn.TheclientgivestheBillofQuantitiestothecontractor,andthecontractorthencanaddshisrateandpricewhentenderingfortheproject.(Lee&Trench&Willis,2005)

Themostrecognisedpurposeofthebillisthatitcanbesenttocontractorswhomaywanttotenderfortheconstructioncontract,andenablesthemtobasetheirpriceonthesameinformation.Takingoffisveryimportantbecauseitprovidesanaccuratemeasurementoftheconstructionworkneededtobecarriedout.

Constructioncosts

TheTakingOffprocesscanbeveryusefulinestimatingtheconstructioncostsofaprojectbecauseasmentionedpreviouslythecontractorbasesthepricingoftheworkontheBillofQuantities.Thebilliscreatedbytheclientsquantitysurveyor,whoistraditionallyreferredtoasaProfessionalQuantitySurveyororPrivatePracticeQuantitysurveyor,andcompletedbythecontractorsquantitysurveyor.Partofthebillisthetakingoffprocesswhichneedstobeaccurate,sothecorrectpricingcantakeplace.TheBillofQuantitiesisusedtoassistthecontractorwhenpreparinganestimateforthetender.Thepricedbillthenbecomespartofthecontractdocuments,providingthebasisforthevaluationofthework.

TheTakingOfflistisaveryimportantpartoftheBillofQuantitiesbecauseitallowsthequantitysurveyortousethebillforthevaluationoftheworkcompleted,whichallowshimtoworkoutthestagepaymentsneededinagivencontract.Thecontractorsquantitysurveyorcanalsoworkoutthepriceforeachstagepaymentofaprojectforeachindividualsubcontractor.

Clientsperspective

Theclientsmainconcernistoseetheprojectcompletedontime,onbudget,andtotherequiredquality.However,theclientalsowantsbetterinformationontheprojectandthiscanbeprovidedbythetakingoffprocess.ThefinancialinformationintheBillsofQuantitycanbetranslatedintootherinformationsuchascashflows,periodicprojectaccounts,andcostvariations.Theinformationcanthenbeeasilycommunicatedtotheclienttokeephiminformedoftheprogressandfinancialstatusoftheproject(Rashid&Mustapa&Wahid,2006).

Consultantsperspective

Theconsultantrepresentstheclienthehastoensuretheclientgetsvalueformoney.Theconsultantconcentratesonmakingsuretheclientreceiveahighqualityproduct,abuildingwhichiscompletedontime,andmoreimportantly,withintheestimatedbudget.Thepricedbillbythecontractorprovidesusefulinformationtoaconsultantbecauseitidentifiesthetotalcostoftheprojectandalsothemarketconditions.Qualitativeandquantitative(includingfinancial)informationpresentedinthetakingoff

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processandthustheBillofQuantitiesprovidestheconsultancywithusefultenderevaluationandselectionofcontractorforagivenproject.Thepricedbillcanbetranslatedintoaworkprogramme,costplanandprojectcashflowandbudget.Thiscanhelptomakemoreeffectiveprojectsupervisionandcostcontrolling.Thebillalsoprovideseffectivelyashoppinglistofitemsrequired(Rashid&Mustapa&Wahid,2006).

Contractorsperspective

WhentenderingforaconstructionprojectthecontractorisgiventheBillofQuantitiesbytheclient.ThisincludestheTakingOfflist,whichisassociatedwithestimatingasittakesplacepriortotheconstructionprocess.Theestimatingdepartmentofthecontractorthencalculatesasaccuratelyaspossiblethecostsofthegivenconstructionproject.Theestimatorusescurrentpricinginformationfordifferentaspectsoftheproposedconstruction(Ashworth,2002).

TheTakingOfflistisofmostimportancetothecontractorwhenestimatingcosts,becauseitcanbeusedtocalculatethecostsforpreparationofthetender.ThebillisbasedontheTakingOfflist.Eachcompanyusesitsowntablesofstandardworkoutputsfordifferenttypesofconstructionoperationwork,whichtheyenterintotheunpricedbill.Whenthisiscompletedthebillcanbesaidtohavebeenpriced,andcanbesentbacktotheclient.TheTakingOfflistintheBillofQuantitiescanbeusedbythecontractorwhenpreparingpricingfornewprojectsasanestimateoftheconstructioncosts.Thisshouldbereviewedoftenwhenconstructionstarts(Ashworth,2002).

TheTakingOfflistisessentialinworkingoutthetargetcosts.Theestimatedcostsareadoptedasabasisoftheconstructionoperationscostsonsite.Thetargetorbudgetcoststrytorelatetotheactualtaskshappeningonsite.Inthebilltheestimatorusesanaverageoutputforthewholeofagivenitem.Thesecostsarethenanalysedseparately,dependingonthetypeorworkandthedifficultly.Thetargetcostsusetheaverageestimatorsrateasbasisbutwillvarythisinrelationtotheactualachievementexpected.Targetcostsareoftenslightlylowerthantheestimatedcostbecauseofacontractorsincentiveschemeandtheunforeseenriskwhichisinvolved(Ashworth,2002).

ThefinaltypeofcostistheactualcostpreviouslythebasisofworkingouttheestimatedcostsandtargetcostwastheTakingOfflistandthebillintheBillofQuantities.Theactualcostuserecordeddataonsite.Actuallabouroutputsfromthesitearecomparedwiththebudgetoutputs.Whencomparingtheestimatedcostsandactualcosts,thismayshowahugedifferencehowever,comparingtheactualandtargetcostsshouldshowonlyasmallamountofdifference(Ashworth,2002).

Subcontractors

ThemaincontractorcanusetheTakingOffprocesstoassistwiththeseparationoftheBillofQuantitiesintotradesectionsfordifferentsubcontractors.Theseparatedestimatedpricedsectionswillbesentofftoseveralsubcontractorsfortheirownpricing,andthensentbacktothemaincontractorforcomparison.Notjustthelowestpricewinstheworkthemaincontractorwilltakeintoaccountitemssuchaspreviousexperience,reputation,flexibility,time,qualityofworketc(Ashworth,2002).

Materials

Whenobtainingquotationsformaterialstobeusedonsite,theTakingOffprocesscanbeused.Thebillsaresenttosuppliersandtheysendbackapriceforthematerials.Commonmaterialsthatthecontractormayrequirecanbepurchasedthrougharegularlocalsupplier.Thepricingofthematerialcanbeaffectedbyanumberoffactorssuchasordersize,deliverycostsandexchangerates.TheBillofQuantitiesissplitintoorderedsectionsaccordingtoRICSNewRulesofMeasurement.Thisallowsthematerial

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orderingtobeeasilyidentifiedandcarriedout(Ashworth,2002).

Informationsenttothesupplierwillinclude:

1. Specificationofthematerial(whichisusuallyfoundinthepreambleoftheBillofQuantities).2. Quantityofthematerialrequired(whichisusuallyfoundinthebillsectionoftheBillof

Quantities.)3. Theaddressofthesite.4. Thedeliverydatesrequiredbythecontractor.Thisisveryimportanttoallowstoragespaceonsite,

storagecosts,extraspacefordeliveriesandaforemantobepresentwhenunloadingthematerials,ifrequired.

(Ashworth,2002)

Plant

TheTakingOffProcesscanbeveryusefulinaproposeddevelopmentprojectwhenobtainingquotationsforhire,lease,orpurchaseofplantandequipment.Thechoicebetweenrentingandpurchasingplantisnormallycalculatedfinanciallytoseeifitisviable.Thisisbasedupontheexpecteduseofthegivenplant.TheTakingOffprocesshastobecorrect,andthecorrectinformationhastobesent.

Labour

TheTakingOffprocesscanalsohelpwithforecastingthelabourcosts.Thesecostsareusuallycalculatedusinganallinlabourrate,includesthebasicrateandguaranteedbonusplusitemssuchasweather,sickpay,tradesupervisions,andextrapayments(forexampleskillorresponsibilityforrisk).

ThemostcommonmethodofestimatingthecostsoftheconstructionworkisunitratesthiscanbeusedtomeasuretheBillofQuantitiesbythecontractor.Suchitemsaslabour,materials,subcontractors,andplantcanallbemeasuredthisway.

BreakdownofMainParties

Belowisabreakdownofwhattheclient(representedbyaconsultancy)andacontractorofferinthetenderingprocess.

Providedbytheconsultants:

TheworktobeperformedThequalityandstandardsorworkrequiredThecontractualconditionstobeapplied

Providedbythecontractor:

ThecostofthefinishedworksTheconstructionprogramme

(Ashworth,2002)

OperationalWorkandProjectManagement

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NotonlyistheTakingOffprocessavaluablesourceofinformationinthetenderingprocessbutitcanalsobeusedthroughouttheoperationalworkofaconstructionproject.TheaccuracyandthewaytheTakingOfflistisdrawnupisveryimportantinthemanagementoftheproject.IfthesiteteamunderstandexactlywhattheTakingOffprocesssaysitcanleadtomoreeffectivemanagementoftheprojectandthegiventrades.Thelistofworkitemsandtheirquantitiesinthebill,givesthecontractoradetailedWorkBreakdownStructure(WBS)oftheproject.Thisisextremelyusefulinformationbecauseithelpsinprojectplanningandpreparationoftheworkplanandprogramme.Itcanbeusedtoorganiseactivitiesinalogicalsequencefordifferentsubcontractorsandcanbeusedtoestimatetheactivityduration.Theestimatedcostsinthebillarealsousefultomonitorandcontroltheprojectfinances(Rashid&Mustapa&Wahid,2006).

ProjectCostManagement,whichisabalancingofdemands,isanessentialpartofprojectmanagement.Garrison(1998)believedthatinformationisvitaltothesuccessoffinancialmanagement.Intheabsenceofadequate,accurate,andreliablecostinformation,aprojectcostmanagementexercisewouldbeineffective.ThisshowsthattheTakingOffprocessisveryimportant.TheTakingOffprocesscanalsohelpwiththeprojectdevelopmenthoweverthisalldependsonthetypesandemphasisoftheproject,egifthecostisthebiggestemphasisoftheprojectandthefundislimiteditisappropriatetousethebillbecauseitcontainshighlevelsofdetailofprojectcostitems.Thiscanthenbeusedfordetailedprojectaccountingandfinancialreporting(Rashid&Mustapa&Wahid,2006).

(Ashworth,2002)

TheabovediagramshowshowtheTakingOffprocesscanbeusedtohelpwithprojectrelatedcosts.AnestimatorestimatesthecostoftheworktobeperformedwhichisbasedonthebillintheBillofQuantities.Ifthecontractorissuccessfulinwinningthetenderthentheworkcanbeputintopractice.TheprojectcostscanbemonitoredbythesitemanagementteamwhichcanthenbecomparedtotheTakingOffprocess.Finallythecomparisonofthecostcanbesentbackasfeedback,whichcangiveinformationontheworkandthetimeexpendedonalltheoperations.Thiscanberecordedandusedthroughouttheproject(Rashid&Mustapa&Wahid,2006).

Law

TheTakingOffprocessispartofthecontractdocumentsinaconstructionproject.Thuswhensigningthecontractdocumentyouarewillingtoacceptthatitiscorrectandyouwillbeheld(liable)toeverythinginit.TherearemanystandardformcontractswhichcanbefollowedsuchastheJCT(Joint

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ContractsTribunal)2005whichhasasectionfortheBillofQuantitiesandhasitslegalobligationsallsetout.(JCT,2010)

Conclusion

Asshown,theTakingOffprocesscanbeusedinmanyadministrationstagesofaproposeddevelopment/constructionproject.BecausetheBillofQuantitiesisacontractdocumentitisalsoveryusefulforthelegalsideofaproject.However,thebillisnotnecessarilyusefulineverytypeofprocurementmethod.IhavespokenabouttheTakingOffprocessinthetraditionalsensehowever,modernmethodsofprocurement,(forexamplefasttrackingprocurement,whichinvolvesdesign,documentationandconstruction)tendtoruninparallel,thusrequiringnoBillofQuantities.Howeverthecontractorstillmustprepareapropercostdocumentforthebidding.

Despitetheemergenceofnewgenreofprocurementsintheglobalconstructionindustry,theTakingOffprocessisstillviabletobeusedasakeycostdocument.(Rashid&Mustapa&Wahid,2006)

References

Seeley,I&Winfield,R1999,BuildingQuantitiesExplained,Edition5,PalgraveMacmillan,UK

Lee,Sandra&TrenchWilliam&WillisAndrew2005,WillisselementsofQuantitySurveying,Edition10,BlackwellPublishing,UK

Ashworth,A2002.Precontractstudies,developingeconomics,TenderingandEstimating,2ndEdition,BlackwellPublishing,UK

Websites

RICS2013,RICSUK,availableat

Journals

Rashid,R&Mustapa,MandWahid,S.(2006).BillsofQuantitiesAreTheyStillUsefulandRelevantToday?InternationalConferenceonConstructionIndustry.1(1),19.

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AsjathKhanSOTHANKS/.,/,/.ReplyLikeFollowPost21Aprilat23:03

KristianHammondOwner/DirectoratPriestleyandTaffsLtdThisisveryinteresting,however,Imustadmit,inallmyexperienceinconstructionasaQuantitySurveyor,CostManagerandnowOwnerIhaveneveractuallyhadtoprepare,norreceivedfromasubcontractoratakeoffinthisformat.Thisisanextremelytimeconsumingexercise,whichisdifficulttounderstandwithoutanytraining.Anaccuratetakeoffcanbepreparedinamuchmoresimplisticwayasanexpansionofascopeofworks.Ihavetoadmit,Ifindthismethodveryoutdated.ReplyLike FollowPost6Februaryat17:541

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