QUANTITY SURVEYING DIVISION

ASSESSMENT OF PROFESSIONAL COMPETENCE

FINAL ASSESSMENT 2019

PRACTICE PROBLEMS

Wednesday, 11th September, 2019

THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 11 SEPTEMBER 2019
PRACTICE PROBLEMS

1.0 NOTES TO CANDIDATES

1.1 Headings to questions are for ease of identification only and do not form
part of the questions.

1.2 The number of main questions is as follows:

(a) First day – Questions with varying marks totalling 50 marks

(b) Second day – Questions with varying marks but totalling 50 marks

DAY 1

Question No. 1 Cost Comparison 14 marks

Question No. 2 Modular Integrated Construction 12 marks
Question No. 3 Contract Drafting 12 marks
Question No. 4 Stage Payment / Activity Schedule 12 marks
---------------
50 marks
---------------

1.3 All Main Questions and Sub-Questions are compulsory.

1.4 The total mark of each day’s paper is 50. The passing mark of each day’s
paper is 55% of the total mark of that paper. Candidates who have
passed both days’ papers will be considered as having passed the APC
Practice Problems.

1.5 Refer also to INSTRUCTIONS TO CANDIDATES, which were issued to you

in advance.

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THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 11 SEPTEMBER 2019
PRACTICE PROBLEMS

2.0 FIVE COMMON CRITERIA

2.1 Candidates are expected to demonstrate a reasonable level of professional

competence against five common criteria outlined below, sufficient for the
Assessors to answer the question “Would I employ the Candidate to
work as a qualified Quantity Surveyor with the ability to resolve
problems in a professional manner?” However, it should be recognized
that not all these criteria apply to every problem, nor do they carry equal
weight.

(a) Perception: A full understanding of the problem posed, evidenced

by a response to each item in the question. Candidates should also
show foresight by anticipating additional problems not specifically
mentioned.

(b) Imagination: The assumption of essential supplementary

information so as to provide a full response; also the use of
imaginary telephone inquiries, quotations, notes, etc.

(c) Technical skills: The correct use of measurement principles, prices,

discount factors, etc. The use of appropriate short cuts, rounding off
of figures, etc. to suit the scale of the problem. The provision of
analysis to a depth appropriate to the stage reached by Candidates
and the time constraints imposed on Candidates.

(d) Judgement: The provision of sound professional advice indicative of

professional knowledge and experience gained by Candidates. The
advice should be firm and unhesitating, except where suitable
caveats are essential.

(e) Communication: Free of ambiguity, with clear expression and an

absence of irrelevant or inappropriate technical details, particularly
when provided to a lay Employer. Correct syntax and good
professional style in letters and reports are important. Candidates
should clearly convey their interpretations and proposals.

Page 3
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 11 SEPTEMBER 2019
PRACTICE PROBLEMS

Abbreviations

The following abbreviations used in the Question Paper mean:

SFBC 2005 Agreement & Schedule of Conditions of Building Contract for

use in the Hong Kong Special Administrative Region, Private
Edition - With Quantities 2005 Edition

SFBC 2006 Agreement & Schedule of Conditions of Building Contract for

use in the Hong Kong Special Administrative Region, Private
Edition - Without Quantities 2006 Edition

GCC 1999 General Conditions of Contract for Building Works 1999 Edition
published by the Government of the Hong Kong Special
Administrative Region.

Candidates should clearly state the standard form of contract upon which their
answers are based.

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THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 11 SEPTEMBER 2019
PRACTICE PROBLEMS

Question No. 1 – Cost Comparison

You are the newly recruited Assistant QS Manager of Good Investment Ltd. Good
is going to develop a new-build 5-star hotel “Project T”. Good’s Project Manager
wrote you an email below. Please reply to the Project Manager by an email.

Dear AQS Manager,

I know that you have reviewed the Scheme Design Cost Plan for Project T
prepared by our Consultant QS and you consider it in order. However, I have
found that the unit construction cost in $/m2 GFA is approximately 15% higher
than that of our first hotel “Project W” completed a few years ago. Given the
time, I can only recall some key information about Project W below for
comparison. I understand you may need more information about Project W for a
detailed comparison, but, for the time being, please advise on the probable
reasons for the difference based only on the information available.

Description Project W Project T

Overall Unit Construction HK$48,000/m2 HK$55,000/m2
Cost in HK$/m2 GFA at *Contract Sum adjusted by
1Q2019 price level TPI to 1Q2019 price level

Project location Tsuen Wan Repulse Bay

Completion Date July 2014 November 2024 (planned)
CFA (m2) Guestroom floor 16,000m2 Guestroom floor 18,200m2
Front of House 4,500m2 Front of House 7,000m2
Back of House 3,500m2 Back of House 4,500m2
Carpark 1,000m2 Carpark 1,000m2
---------------------------------- ----------------------------------
Total 25,000m2 Total 30,700m2
No. of levels Guestrooms: 10 levels Guestrooms: 12 levels
Podium: 4 levels Podium: 4 levels
Basement: 1 level Basement: 1 level
No of guestrooms 200 280
Designer AB Design Ltd AB Design Ltd

[14 marks]

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THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 11 SEPTEMBER 2019
PRACTICE PROBLEMS

Question No. 2 – Modular Integrated Construction

You are the Consultant QS for the construction of the superstructure of five 28-
storey residential blocks on a site in Kowloon Bay. The number of residential flats
is 8 per storey. The Employer would like to change the flats from in-situ reinforced
concrete construction to Modular Integrated Construction (MiC), where the
structure, finishes, building services and equipment of the modules are
manufactured and assembled in the factories before transportation to the site for
installation. He wishes to enhance quality control, site safety, environmental
performance (construction waste, noise and air nuisance reduction), and
productivity, in a shorter construction time.

The Architect asks you apart from the perceived benefits what problems and
issues should be considered before adopting MiC. Please reply by an email. Give
18 points preferably grouped under different aspects for easy understanding.

[12 marks]

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THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 11 SEPTEMBER 2019
PRACTICE PROBLEMS

Question No. 3 – Contract Drafting

You are the Consultant QS for a proposed new school project now in the early
stage of tender documentation for the foundations and superstructure works.
Demolition works are being done on site. The Client has expressed his concern
about the timely completion of the project in order to suit the programme for school
opening. At a project meeting, the Project Manager has suggested the following
possible ways to secure the timely completion of the project:

(a) Change the foundation works from Engineer’s design to Contractor’s design;

(b) Shorten the period for notifying delays by the Contractor to eliminate those
delays; and

(c) Add requirements for notifying delays as conditions precedent to granting

extension of time.

Please reply by an email advising on the contractual feasibility, possible benefits,

possible problems and issues, and effectiveness to achieve the goal.
[9 marks]

Suggest concisely 6 other suggestions to achieve the goal.

[3 marks]

[Total 12 marks]

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THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 11 SEPTEMBER 2019
PRACTICE PROBLEMS

Question No. 4 – Stage Payment / Activity Schedule

You are the in-house Quantity Surveyor of a Developer and are responsible for the
procurement of a proposed 10-storey carpark in Shum Shui Po (“the Project”).

The tender drawings and specification for the Project have been completed. In the
absence of external Consultant QS, your company accepts to invite tenders based
on drawings and specification without bills of quantities.

Your Project Manager would like to use stage payment method to simplify the
payment process, and has also heard about the use of activity schedule in lieu of
bills of quantities in some modern forms of contract.

Your Project Manager would like you to advise him via a memo:

(a) The features, mechanism and advantages of stage payment method, and
the possible drawbacks and preventive actions; and
[7 marks]

(b) The special differences between using activity schedule and using stage
payment method.
[5 marks]

[Total 12 marks]

END OF PAPER

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 QUANTITY SURVEYING DIVISION

ASSESSMENT OF PROFESSIONAL COMPETENCE

FINAL ASSESSMENT 2019

PRACTICE PROBLEMS

Thursday, 12th September, 2019

THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 12 SEPTEMBER 2019
PRACTICE PROBLEMS

1.0 NOTES TO CANDIDATES

1.1 Headings to questions are for ease of identification only and do not form
part of the questions.

1.2 The number of main questions is as follows:

(a) First day – Questions with varying marks totalling 50 marks

(b) Second day – Questions with varying marks but totalling 50 marks

DAY 2

Question No. 1 Payment Valuation 12 marks

Question No. 2 Valuation of Variations 16 marks
Question No. 3 Extension of Time 10 marks
Question No. 4 Phased Completion 12 marks
---------------
50 marks
---------------

1.3 All Main Questions and Sub-Questions are compulsory.

1.4 The total mark of each day’s paper is 50. The passing mark of each day’s
paper is 55% of the total mark of that paper. Candidates who have
passed both days’ papers will be considered as having passed the APC
Practice Problems.

1.5 Refer also to INSTRUCTIONS TO CANDIDATES, which were issued to you

in advance.

Page 2
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 12 SEPTEMBER 2019
PRACTICE PROBLEMS

2.0 FIVE COMMON CRITERIA

2.1 Candidates are expected to demonstrate a reasonable level of professional

competence against five common criteria outlined below, sufficient for the
Assessors to answer the question “Would I employ the Candidate to
work as a qualified Quantity Surveyor with the ability to resolve
problems in a professional manner?” However, it should be recognized
that not all these criteria apply to every problem, nor do they carry equal
weight.

(a) Perception: A full understanding of the problem posed, evidenced

by a response to each item in the question. Candidates should also
show foresight by anticipating additional problems not specifically
mentioned.

(b) Imagination: The assumption of essential supplementary

information so as to provide a full response; also the use of
imaginary telephone inquiries, quotations, notes, etc.

(c) Technical skills: The correct use of measurement principles, prices,

discount factors, etc. The use of appropriate short cuts, rounding off
of figures, etc. to suit the scale of the problem. The provision of
analysis to a depth appropriate to the stage reached by Candidates
and the time constraints imposed on Candidates.

(d) Judgement: The provision of sound professional advice indicative of

professional knowledge and experience gained by Candidates. The
advice should be firm and unhesitating, except where suitable
caveats are essential.

(e) Communication: Free of ambiguity, with clear expression and an

absence of irrelevant or inappropriate technical details, particularly
when provided to a lay Employer. Correct syntax and good
professional style in letters and reports are important. Candidates
should clearly convey their interpretations and proposals.

Page 3
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 12 SEPTEMBER 2019
PRACTICE PROBLEMS

Abbreviations

The following abbreviations used in the Question Paper mean:

SFBC 2005 Agreement & Schedule of Conditions of Building Contract for

use in the Hong Kong Special Administrative Region, Private
Edition - With Quantities 2005 Edition

SFBC 2006 Agreement & Schedule of Conditions of Building Contract for

use in the Hong Kong Special Administrative Region, Private
Edition - Without Quantities 2006 Edition

GCC 1999 General Conditions of Contract for Building Works 1999 Edition
published by the Government of the Hong Kong Special
Administrative Region.

Candidates should clearly state the standard form of contract upon which their
answers are based.

Page 4
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 12 SEPTEMBER 2019
PRACTICE PROBLEMS

Question No. 1 – Payment Valuation

You are the Consultant QS for the following project.

Project Residential Development in Tuen Mun

Scope of works 2 no. 30-storey residential towers with a 3-level podium
commercial centre and car park
Contractor Fada Co. Ltd.
Main Contract Sum HK$1.5 Billion
Main Contract Period 40 months
Form of Contract Lump sum with BQ
Payment Terms Monthly progress payment

This morning, the Architect sent you the email below:

Dear PQS,

I refer to Fada’s interim payment application no. 28 submitted this morning for a
net payment due of approximately HK$60M. Here are my comments on Fada’s
application:

1. Fada applies for 90% work done for the podium exterior cladding. I accept
that the site work is actually 90% done. However, Fada’s latest submitted
shop drawings have not incorporated all my comments. Please value 50%
instead of 90%. Also, I will instruct Fada to uninstall randomly a few panels
for my inspection to ensure he followed the approved shop drawings.

2. One major item – AI No. 25 – Revised reinforcement details to ground floor

beam B1-20 to B1-38 is missing from Fada’s application. All structural works
have been completed.

3. The electrical nominated subcontractor is now arguing with Fada about Fada
withholding HK$1,000,000 from his payment. The Employer is considering
direct payment to this subcontractor to avoid any delay to the subcontract
works caused by the unresolved payment dispute. I will update you as soon
as possible the Employer’s decision and the amount of direct payment to the
subcontractor. Please then adjust your valuation accordingly.

(Cont’d)

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THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 12 SEPTEMBER 2019
PRACTICE PROBLEMS

Question No. 1 – Payment Valuation (Cont’d)

(Cont’d)

4. Last week, a worker fell from height and was seriously injured. I suggest a
notional sum of say HK$1,000,000 should be held back until Fada’s report
with prevention measures about the accident is submitted and approved by
me. Please feel free to propose the sum you consider appropriate.

5. During the regular site meeting yesterday, Fada presented his latest
construction programme which shows a delay of 1 month. No doubt, Fada
will pursue extension of time. Meanwhile, please draft a statement to be
stated on your valuation of this interim payment to clearly inform Fada the
Employer’s right to deduct liquidated and ascertained damages from any
payment due to Fada.

6. The children play equipment has been delivered to site. However, the
equipment won’t be installed until the 34th month according to the
Contractor’s programme. Should we pay now?

I would be grateful if you could respond to my comments.

Regards,

Architect

Please respond. Citation of contract clauses is not required.

[12 marks]

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THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 12 SEPTEMBER 2019
PRACTICE PROBLEMS

Question No. 2 – Valuation of Variations

The contract completion date of the Main Contract of a smart building project in
Central is 31 March 2019. The project is a part of the bigger entire development.
After the award of the Contract, the Employer has engaged a direct contractor for
the supply and installation of intelligent building management systems (“IBMS”)
and the IBMS equipment was to be delivered to the Employer’s temporary storage
yard in the rural area on 1 March 2019 for subsequent installation after the Main
Contract works are completed.

In view of the extremely high value of the IBMS equipment and the remoteness of
the temporary storage yard, the Architect upon request of the Employer issued an
instruction (A.I. No. 33) to the Contractor (known as “ABC Contractor”) to state that:

“Please provide additional security guards at the Employer’s temporary storage

yard from 1 March 2019 to the completion of the Main Contract works to watch
over the IBMS equipment on 24-hour full time basis.”

After increasing the security guards as required in A.I. No. 33, the progress of the
Works was delayed by 60 days due to the following reasons:

Delay Reason
(a) 20 days Additional signal cable instructed by the Architect for
which 20 days’ EOT was granted; and
(b) 40 days Use of non-compliant switch box by the Contractor for
which no EOT was granted

As a consequence of the above delays, the deployment period of additional

security guards was extended by 60 days accordingly.

You are the Consultant QS of the project. The Contractor has submitted a
proposed valuation of A.I. No. 33 (see Appendix A). The Architect has requested
you to provide comments on the proposed valuation, in particular, the validity of the
following aspects:

(a) Provision of standby security guards;

(b) Use of star rates after 31 March 2019; and
(c) Payment for the security guards deployed during different delayed periods.

Please advise the Architect in a letter and explain your reasons with reference to
relevant contract provisions. Detailed assessment is not required.
[16 marks]

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THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 12 SEPTEMBER 2019
PRACTICE PROBLEMS

Question No. 2 – Valuation of Variations (Cont’d)

APPENDIX A

ABC Contractor
Proposed Valuation of A.I. No. 33

Item Description Qty Unit Rate Amount (HK$)

(HK$)
Additional security guards
Provision of additional
security guards on or before
31/3/2019
A Day shift (Principal) – 1 No. 31 day 600 18,600
B Day shift (Standby) – 1 No. 31 day 600 18,600
(Ref: BQ 1.5/6D -
$600/day)

C Night shift (Principal) – 1 31 day 800 24,800

No.
D Night shift (Standby) – 1 31 day 800 24,800
No.
(Ref: BQ 1.5/6E -
$800/day)

Provision of additional
security guards after
31/3/2019
E Day shift (Principal) – 1 No. 60 day 900 54,000
F Day shift (Standby) – 1 No. 60 day 900 54,000
(Star rate)

G Night shift (Principal) – 1 60 day 1,200 72,000

No.
H Night shift (Standby) – 1 60 day 1,200 72,000
No.
(Star rate)

I Overheads and profit (15%) 50,820

Total 389,620

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THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 12 SEPTEMBER 2019
PRACTICE PROBLEMS

Question No. 3 – Extension of Time

You are the Consultant QS for a minor works contract for the construction of a rain
shelter beside the running track of a sportsground. On Day 40 of construction, the
Architect issued an instruction requiring a variation to the substructure works which
necessitated 10 extra days for the construction of the substructure works.

On the other hand, the Contractor has encountered technical issues on Day 60 on
the transportation of the fabricated rain shelter to the site which also delayed the
completion of the Works.

The Architect approached you and would like your advice on the Contractor’s
entitlement to extension of time, if any. The requirements for notice of delays and
claims can be ignored.

The Baseline Programme and the As-built Programme are given below: -

Duration Day
(day) 10 20 30 40 50 60 70 80 90 100

Baseline

Excavation 10
Plate load test 30
Substructure 30
Shelter erection 15
Fabrication of rain shelter 60

As-built

Excavation 10
Plate load test 30
Substructure 40
Shelter erection 15
Fabrication of rain shelter 85

Please respond with a letter with reasoned explanations supported by diagrams.

[10 marks]

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THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 12 SEPTEMBER 2019
PRACTICE PROBLEMS

Question No. 4 – Phased Completion

You are the QS of Jufu Contracting Ltd. Jufu is the Contractor for the renovation of
a 2-level shopping mall. The area of renovation is 1500m2 x 2 levels. The
Commencement Date is 1 June 2019. Sectional Completion is stated in the
Contract as follows:

 Completion of Section 1: Ground floor, 1 September 2019

 Completion of Section 2: First floor, 31 October 2019
 Section 1 was completed on time and is now in operation.

At the weekly progress meeting on 6 September 2019:

(a) The Employer requested Jufu to repair the wooden floor on Ground Floor
damaged by bursting of an existing cold water pipe the night before.

(b) The Employer said he was considering to split Section 2 into two phases i.e.
Section 2A to complete on 30 September 2019 and Section 2B to complete
on 31 October 2019. Section 2A will then be opened for early operation.
Jufu’s construction manager considers the arrangement feasible without
causing delay to the overall completion.
Jufu’s construction manager asks for your contractual advice regarding the
Employer’s request and any cost implication that Jufu needs to consider.

Please write a memo to the construction manager with your advice.

[12 marks]

END OF PAPER

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