MODULE 1 – Introduction to Quantity Surveying

Description:
This module introduces the course Quantity Surveying and its importance in Engineering Projects.

Learning Objective:
At the end of this module, the learner should be able to:
1. Gain knowledge on terminologies and principles of quantity surveying in Engineering Project.
2. Understand the importance in understanding specifications and plans/details in Engineering Project
3. Understand the role and task of a Quantity Surveyor in an Engineering Project

Contents:

I. QUANTITY SURVEYING
Quantity Surveying is broadly concerned with the estimation, planning and control of the cost on
construction projects. It covers a wide range of activities including cost estimation, cost planning, value
engineering, feasibility studies, cost benefit analysis, lifecycle costing and valuation.

• Cost Estimation
Cost estimation in project management is the process of forecasting the cost and other
resources needed to complete a project within a defined scope. Cost estimation accounts for each
element required for the project – from materials to labor - and calculates a total amount that
determines a project’s budget.

• Cost Planning and Control

Cost planning and control is the estimation of costs, the settling of an agreed budget, and
management of actual and forecast costs against that budget
Cost planning is an essential part of the project management process. Project managers need
to understand where cost fall in their schedule to manage demand for resources.

• Value Engineering
Value engineering is a systematic, organized approach to providing necessary functions in a
project at the lowest cost. Value engineering promotes the substitution of materials and methods
with less expensive alternatives without sacrificing functionality. It is focused solely on the functions
of various components and materials, rather than their physical attributes.

• Feasibility Study
Feasibility study is an assessment of the practicality of a proposed plan or project. A feasibility
study analyzes the viability of a project to determine whether the project or venture is likely to
succeed. The study is also designed to identify potential issues and problems that could arise while
pursuing the project.

• Cost-Benefit Analysis
Cost-benefit analysis is a way to compare the costs and benefits of an intervention, where
both are expressed in monetary units. The output of cost benefit analysis will show the net benefit
(benefit minus cost) of a project decision.

• Life Cycle Cost Analysis

Life Cycle Cost Analysis is an economic evaluation technique that determines the total cost of
owning and operating a facility over a period of time.
 • Valuation
Valuation is a quantitative process of determining the fair value of an asset, investment, or
firm.

II. Importance of Quantity Surveying

Quantity surveying plays an essential role in ensuring that the project is built efficiently while
keeping a close eye on the project’s finances and contractual relationships, making sure everything is
accurate and controlled effectively throughout the project’s timeline. As a result, it’s critical to understand
how it can affect the project and its overall costs.

Quantity Surveying puts order in the complicated procurement process. A quantity surveyor will
analyze the quantities, measurements, and cost of material altogether with the cost of labor and the
machinery required for the execution of the project.

III. Quantity Surveyor

Quantity surveyors estimate and control costs for large construction projects. They make sure
that structures meet legal and quality standards. Quantity surveyors are involved at every stage of a
project. Other names for quantity surveyor are Cost Engineer, Cost Manager, Estimator, Cost Analyst, Cost
Planner.

The main objective of a quantity surveyor is the efficient and effective utilization of resources
(materials, manpower, money). It also requires him to have an up-to-date information of market, tools
and equipment to help in planning and scheduling of construction activities and resource allocation.

Risk analysis is an area which should be thoroughly studied to become a successful quantity
surveyor. The quantity surveyor should be able to assess the risk involved and be able to decide whether
it should be retained or transferred.

Quantity surveyors plays an important role in contract procurement, tender evaluation and
dispute resolution. Good knowledge of construction technology is very much required for a quantity
surveyor.

Quantity Surveyor at:

Pre-construction Stage in Projects (Tendering and Contracts)
A. Design Stage
1. Conducting Design Coordination Meetings with Consultants along with client
2. Collection of all Drawings and review the drawings.
3. Value Engineering
a. Review by Relevant Experts
b. Study on Construction ability and Feasibility
c. Suggestion on sourcing and alternate material & agency
d. Foresee the real requirement of details proactively
e. Optimization of cost and time
4. Collecting the technical description and BOQ with estimate from the entire consultant.
5. Reviewing and making consolidated budget and get it approved from the client
6. Preparation of Tender Document and get it approved from the client.

B. Tendering Stage
1. Shortlisting of Vendors for Various work
 2. Issue of Tender document for short listed Vendors
3. Conducting Pre-bid meeting with consultants on the queries raised by vendors
4. Collecting filled tender documents and making comparative statements.
5. Attending negotiation meetings and giving guidance on selecting of correct vendor to the client

C. Contract Award Stage

1. Preparing contract document along with drawings and get it approved from the client
2. Collecting all necessary documents from the finalized vendor like project schedule, cash flow
statement, resource deployment schedule and quality and safety policies along statutory
requirements like CAR policy, labor license, bank guarantee, etc.
3. After collecting all documents, Issue of contract document to the finalized vendor.
4. Based on the finalized contract values preparing 2nd cut budget
5. Conducting kick-off meeting at site and start the work at site

Construction Stage in Projects (EPC – Engineering, Procurement, Construction)

a. Making the schedule as per the requirement of Client and Practical applicability
b. Projecting the cash flow statements to the client and review periodically
c. Review of Drawings and inform consultants regarding any additional/changes required in the
drawings.
d. Conducting Progress review meetings in regular intervals
e. Implementing & maintaining the checklists for all the works
f. Providing technical and experienced team to the site for effective execution of project in time
and quality
g. Check and approve material quality
h. Involve & discuss with all the consultants regarding the shortfalls in the detailing and sort out all
issues including service integration
i. Providing work methodology for all work before they start.
j. Tracking the project as per the schedule and also recording the delays in project due to
unexpected issues like strike, weather conditions, material short supply, etc.
k. Plan for accommodating the delays in the project schedule and completing the project in initial
planned time
l. To equip the execution team by providing formats, check lists & reports
m. Submitting Monthly Progress, Quality and EHS report to the client
n. Check and certifying of all contractors/Agencies Bills
o. Keep a track of executed quantity against budgeted quantity. Any escalation in quantity &
financial implications in budget to be highlighted to the client in time and getting approval.
p. Check & approve the rates for NT items before execution.
q. Reconciliation of Materials.
r. Implementing and insisting to follow safety.
s. Responsible to provide the required d
t. Maintaining Bills and Reports in proper filing system.

Post-construction Stage in Projects

(Project Closeout – Commissioning, Handover, Operations and Maintenance)
a. Collection all as built drawings from vendors and consultants and approved by architect.
b. Collection of warranty manuals, maintenance manuals.
c. Certifying all vendor bills after collecting all documents and attending snags.
d. Preparing detailed statement of all vendor details with contacts of key persons for approaching
client for any kind defects created during the defect liability period.
e. Preparation of Completion certificate based on all documents & Drawings.
f. Assist in finding suitable facility Manager.
 g. Handing over all documents and giving basic guidelines about the project to facility manager.

IV. Invitation to Bid

The Invitation to Bid (IB) provides information that enables interested bidders to decide whether
to participate in the procurement of the particular contract at hand. (Annex II-1.1A)

These clearly and adequately define, among others:

1. The objectives, scope and expected outputs and/or results of the proposed contract;
2. The expected contract duration;
3. The obligations, duties and /or functions of the winning bidder; and
4. The minimum eligibility requirements of bidders, such as track record to be determined by the
Head of thee Procuring Entity.

V. Contents of Bidding Documents

The Philippine Bidding Documents (PBDs) contain the following:

1. Invitation to Apply for Eligibility and to Bid (IAEB)
2. Eligibility Documents
3. Eligibility Data Sheet
4. Instructions to Bidders (ITB)
5. Bid Data Sheet (BDS)
6. General Conditions of Contract (GCC)
7. Special Conditions of Contract (SCC)
8. Specifications
9. Drawings
10. Bill of Quantities (BOQ)
11. Forms and Qualification Information

Eligibility Requirements

Advertise and Post an Invitation to Appy for Eligibility and to Bid (IAEB)
- provides the information necessary for prospective bidders to prepare responsive applications for
eligibiity to bid for the contract in accordance with the requirements of the Procuring Entity

Technical Requirements for Eligibility

(1) PCAB License
- For this particular contract to bid, the prospective bidder must possess a valid license issued by the
Philippine Contractor Accreditation Board (PCAB) in accrodance with the provisions of RA 4566, for
the specific category indicated in the Eligibility Data Sheet (EDS), out of the following PCAB
categories

Table 1. PCAB License Categories

Singe Largest Project/Required Allowable Range of
Size Range License Category
Track Record Contract Cost (ARCC)

Large B AAA Above Php 150M No limit

Large A AA Above Php 100M up to Php 150M Up to Php 300M

Medium B A Above Php 50M up to Php 100M Up to Php 200M

 Medium A B Above Php 10M up to Php 100M Up to Php 100M

Small B C&D Above P500,000 up to Php 10M Up to Php 15M

Small A Trade Up to Php 500,000 Up to Php 500,00

- For this particular contract to be procured, the Approved Budget for the Contract (ABC) is indicated
in the EDS. The required PCAB license for this project, based on Table 1 above, is also specified in
the EDS.

(2) Work Experience in Similar Contracts

- The prospective bidder must possess the experience of having a Single Largest Competed Contract
(SLCC) “similar” to the contract to be procured, and whose value, adjusted to current prices using
consumer price indices of the Philippine Statistics Authority (PSA), is at least fifty percent (50%) of
the ABC to be bid. Small A and Small B contractors without similar experience on the contract to be
bid, however, may be allowed to bid if the cost of such contract is not more than the Allowable
Range of Contract Cost (ARCC) corresponding to their PCAB license as shown in Table 1.

Accept LOIs, Issue Eligibility Documents, and Conduct Eligibility Check

- provides the information necessary for prospective bidders to prepare responsive applications for
eligibility to bid for the Contract in accordance with the requirements of the Procuring Entity
Prospective bidders should submit their written Letter of Intent (LOIs) and Applications for Eligibility
to the Bids and Awards Committee (BAC) and have these received not later than seven (7) calendar
days from last date of posting of the IAEB. Upon receipt of these documents, the BAC must give the
prospective bidders the list of eligibility requirements, and inform them in writing of the date, time,
and venue for the submission of such requirements.

INSTRUCTION TO BIDDERS (ITB)

- provides the information necessary for Bidders to prepare responsive Bids in accordance with the
requirements of the Procuring Entity. It also provides information on the Bid submission, opening,
and evaluation, post-qualification, and award of contract.

BID DATA SHEET (BDS)

- consists of provisions that supplement, amend, or specify in detail information or requirements
included in ITB, and that are specific to each particular contract to be procured.

GENERAL CONDITIONS OF CONTRACT (GCC)

- Matters governing the performance of the Contractor, payments under the Contract, or matters
affecting the risks, rights, and obligations of the parties under the Contract are included in General
Conditions of Contract (GCC), and/or Special Conditions of Contract (SCC).

SPECIAL CONDITIONS OF CONTRACT (SCC)

- To supplement the GCC, the Special Conditions of Contract (SCC) in ANNEX II-1.1G provide detailed
information or requirements on particular provisions of the GCC that are specific to the contract at
hand.

SPECIFICATIONS
- The DPWH Standard Specifications for Public Works and Highways (“Blue Book”) shall be the main
basis for the standards and codes to be met by the goods and materials to be furnished and work
performed or tested for the Contract. In particular,
 a. Volume II of the Blue Book shall be used if the Contract pertains to Highways, Bridges and
Airports.
b. Volume III of the Blue Book shall be used if the Contract pertains to Buildings, Flood Control
and Drainage, or Water Supply.

- The Blue Book incorporates standards of the American Association of State Highway and
Transportation Officials (AASHTO), American Society for Testing and Materials (ASTM), and
American Concrete Institute (ACI), among others, pertaining to construction.

- The Procuring Entity shall use the Standard Pay Items in the Project and Contract Management
Application (PCMA) in drawing up the Specifications.

DRAWINGS
- list of approved Drawings for the Contract. The actual Drawings, including Site plans, shall be
attached or annexed in a separate folder
BILL OF QUANTITIES
- The Bill of Quantities (BOQ) contains the following parts:
a. BOQ for each Part of the Contract, using Form DPWH-INFR-17.
b. Summary of Bid Prices for all Parts of the Contract, using Form DPWH-INFR-18. In the ITB,
under Preparation of Bids, item 14.2 (b)

- Financial Component
This shall include all of the following documents:
(1) Bid Form using Form DPWH-INFR-09.
(2) Bill of Quantities (BOQ) indicating the bid prices, using Forms DPWH-INFR-17 and Form DPWH-
INFR-18. The bid prices may be in terms of (a) bid unit prices for different work items under the
BOQ, or (b) fixed total lump-sum price for the entire contract, based on the type and complexity
of the project.
(3) Detailed estimates, including a summary sheet indicating the unit prices of construction materials,
labor rates an equipment rentals used in coming up with the Bid.
(4) Cash flow by quarter (Use Form DPWH-INFR-19)

BIDDING FORMS
The Bidder shall use the Bidding Forms (BFs) listed below in preparing its Bid and, in case it is
awarded the contract, in preparing the documents required to perfect the contract.
VI. Competitive Bidding
Competitive or Public Bidding is a method of procurement that is open to any interested and
qualified party. A Procuring Entity should, therefore, see to it that its procurement program allows enough
time to conduct such Public Bidding.

Competitive Bidding consists of the following processes: advertisement, eligibility check

/screening of prospective bidders, pre-bid conference, receipt of bids, opening and examination of bids,
evaluation of bids, post-qualification, and award of contract.

The procurement process from the opening of bids up to the award of contract should not exceed
three (3) months, or a shorter period to be determined by the Procuring Entity concerned.

In case the deadline for each activity falls on a non-working day (i.e. Saturday and Sunday), legal
holiday, or special non-working holiday, the deadline shall be the next working day.

ESTIMATE
An estimate for any construction work may be defined as the process of calculating the quantities
and cost of various items required in connection with the work.

It is prepared by calculation the quantities from the dimensions on the drawings for the various
items required to complete the project and multiplied by unit cost of the item concerned.

To prepare an estimate, drawing consisting of the plan, elevation and the sections through
important points, along with a detailed specification giving specific description of workmanship,
properties and proportion of materials are required.

Construction estimating is the process of forecasting a project’s costs. However, true project costs
are only known once the project is completed.

Below shows an example of architectural plan consisting of floor plans, elevation and sections
Purpose of Estimate

Following are the main purposes of estimate:

1. To ascertain the necessary amount of money required by the owner to complete the proposed
work. For public construction work, estimates are required in order to obtain administrative
approval, allotment of funds and technical sanction.
2. To ascertain quantities of materials required in order to program their timely procurement. To
procure controlled materials, if any, like cement, steel, etc.
3. To calculate the numbers of different categories of workers those are to be employed to complete
the work within the scheduled time of completion.
4. To assess the requirement of tools, plants and equipment required to complete the work
according to the program.
5. To fix up the completion period from the volume of works involved in the estimate.
6. To draw up a construction schedule and program and also to arrange the funds required according
to the program.
7. To invite tenders and prepare bills for payment.
8. An estimate for an existing property is required for valuation.

The purpose of an estimate has different meaning to different people involved in the process. To
the owner, it provides a reasonable, accurate idea of the costs. This will help him or her decide whether
the work can be undertaken as proposed, needs to be modified, or should be abandoned. To the
contractor, it must provide the cost of materials and labor to install the project as well as make a profit.

Components of Estimate
1. Quantity
The measurement of something by stating how much of it there is. It is shown as a figure and a
unit of measurement behind it. Unit of measurement could be in terms of area (m2 or sq.m.),
length (m), volume (cu.m.) , weight (kg.), etc.
Example:

quantity Unit of measurement

300 m

2. Rate
A fixed charge, payment or value. Rate is the cost built up of material cost, wastages, labor cost,
plant/equipment cost and profit and overhead.

3. Cost
An estimate how much money will be needed or price to be charged for something.

quantity rate Amount

x =
(Cost)

Types of Estimates
1. Approximate Estimate
Approximate estimate, also called preliminary estimate, abstract cost estimate, or budget
estimate, is used in the early phases of a project, usually before design documents have been completed.
This is made to find out an approximate cost in a short time and thus enable the responsible authority
concerned to consider the financial aspect of the scheme. During preparation of the approximate estimate
detailed surveying, design, drawings, etc. are not required.
 Approximate Quantities

Items of Major
Estimated
= Cost Importance X
Cost Unit Rate
Measured only

Build up on a basis from cost

database price book or priced
BQ from previous project

a. Unit method – in this method all cost of a unit quantity such as per km for a highway, per meter
of span for a bridge, per classroom for school building, per bed for hospital, per liter for water
tank, etc. are considered first and the estimate is prepared by multiplying the cost per
corresponding unit by the number of units in the structure

Unit Method

Estimated Standard Unit of Appropriate Cost

= X
Cost Accommodation per Unit

b. Superficial or Square method is a type of approximate estimates wherein plinth area of a building
shall be determined first. Estimate of building is worked out and multiplied by the area of the
building with area rate of the locality for similar buildings constructed recently.

Superficial Method

Estimated Cost per square

Cost = Area of floors X
meter

2. Detailed Estimates
Detailed estimate involves breaking down the project scope into smaller unit prices that can be
priced individually. This includes the detailed particulars for the quantities, rates and costs of all
the items involved for satisfactory completion of project. Quantities of all items of work are
calculated from their respective dimensions on the drawings. Multiplying these quantities by their
respective rates in a separate sheet, the cost of all items are worked out individually and
summarized. All other expenses required for satisfactory completion of the work are added to
above cost.

Bill of Quantities

Estimated Measured
Cost = X Unit Rate
Quantities

3. Revised Estimate
Revised estimate is a detailed estimate for the revised quantities and rates of items of work
originally provided in the estimate without material deviations of a structural nature from the
design originally approved for the project. It is prepared and submitted for fresh technical
sanction.
 4. Supplementary Estimate
While work is in progress, some changes or additional works due to material deviation of a
structural nature from the design originally approved may be thought necessary for the
development of a project.

5. Maintenance or Repair Estimate

After completion of a work it is necessary to maintain the same for its proper function and for the
same as estimate is prepared for the items which require renewal, replacement, repairs, etc.

SPECIFICATION
Specification is defined as a short or detail description of different parts of the work specifying
materials, proportions, quantities, etc. Specification specifies the nature and the class of the work,
materials to be used in the work, workmanship etc. is very important for the execution of the work. The
cost of a work depends much on specification.

Two types of Specifications:

1. General or Brief Specification
General Specifications are also known as Brief Specifications. They are used to show aspect,
standard, and type of constructional work. They would depict the general classifications of the
constructional work of the project. These specifications are used to establish the standards of the
constructional work that will help in establishing Detailed Estimate.
2. Detailed Specification Detailed Specifications depict characteristics, quantity, ratio, and formation
method of the material used in construction work in the detailed description. Each component of
the constructional work is detailed separately with the help of Detailed Specifications. Therefore,
all aspects establishing standards and quality of the constructional work are disclosed. Hence, it will
assist in Detailed Estimate. Detailed Specifications of the items employed in ordinary projects are
printed that are used for contracts.