The Taking Off Process - Coursework Example

Introduction The taking off process is an integral part of the process of estimating the cost in the construction industry. Personnel who are tasked with the estimation of the cost of the materials and other concerned works normally make use of blueprints both manual and electronic and the process of take off starts as the quantities of the items are extracted from the blueprints in order to prepare an overall estimate (Seeley & Winfield, 2009). The taking off process can be realized in a number of ways including use of field sketches, on screen take off and use of digitizers that are capable of working on hard copy plans and drawings of structures. The taking off lists is normally composed of all the elements of the buildings in the order of the largest to the smallest components required in building (Sandra et al, 2005). The traditional methods of the taking off process that have been existent over time have become less prevalent as a result of the development of computerized methods of taking measurements and administering bills (Ashworth, 2002). From history, quantity surveying has been carried out in a number of years since the year 1785 when the first quantity surveying task was carried out. Basically, quantity surveyors are mandated with the estimation of costs and the contracts of the construction works. Quantity surveyors are registered under professional bodies that govern the manner in which they operate and also set the standards to be followed by the professionals (Ashworth, 2002). An example of the professional bodies is The Royal Institution of Chartered Surveyors (RICS) in the United Kingdom which is represented in more than 146 countries worldwide and has a membership of over 159,000 registered professionals (RICS, 2013). In this paper, we are going to explore the process of the take off process and the main components of the entire process. The bill of quantities The bill of quantities can be defined as a document that used in the tendering process in a given construction project. In this document, the materials, the parts and the labor are itemized. The terms and conditions of the contract and all the tasks that need to be done by the client are also detailed in the document (Ashworth, 2002). The bills of quantities are usually crated by quantity surveyors and the process of preparation is implemented in two unique stages. The first stage involves the measurement of the dimensions and a compilation of the description from the blue prints and the drawings. The following stage involves the preparation of the document including the calculation of the volumes and the areas of the structures. This is followed by the entry of the description and the dimensions in a process referred to as abstracting (Rashid et al, 2006). Finally, the items are collected together and then presented in a bill order. Figure 1: An example of a bill of quantities Example of the bill of quantities Qty unit Rate £ p A Masonry F10 BRICK BLOCKING WALLING Common bricks BS3921 category 0 215 x 65 compressive strength not less than 5.2 N.mm2: in cement line motor (1:1:6) 30 M2 16.32 489 60 Preparation of the bill of quantities The process of preparing the bill of quantities can be cut down to three fundamental sections as described in the sections that follow. The initial stage involves the computation of the volume of the structures, the areas and other measurable quantities done by squaring and dimensions (Ashworth, 2002). The results obtained are then entered in the appropriate columns on the dimension paper. The descriptions of the components and the squared dimensions are then entered in the abstract. In this process, the values are entered in such a manner that they can be recognized and ready for billing under the right work heads (Ashworth, 2002). The components are then put together and presented in a bill order that is recognizable. The components that comprise the total number of components required in the construction works are then listed in their right work sections headings giving the accepted units and description. Also in the bill of quantities is an empty rate and a column for the prices. The client offering the work gives the bill of quantities to the contractor and then the contractor is able to quote his prices and rates during the tendering process (Rashid et al, 2006). The bill of quantities can be sent to the contractors who may be interesting in bidding the construction contract and this enables them to base their charges on the information that is given. The taking off process is of great importance since it is able to provide accurate estimations and measurement of the construction works that are required in a given project (Seeley & Winfield, 2009). The cost of construction The taking off process is crucial in the estimation of the cost of construction in a given project since the contractor is required to base his pricing on the on the prepared bill of quantities. The quantity surveyor who prepares the bill of quantities is hired by the client who then hands over his work to the contractor for implementation (Seeley & Winfield, 2009). For the cost of construction to be precise, the bill of quantities must be accurate so that the correct pricing can be done. The bill of quantities helps the contractors in the preparation of tender documents and the priced bill ends up being part of the contract documents. This forms a basis for the valuation of the construction work after it has been completed (Rashid et al, 2006). The valuation exercise carried out by the quantity surveyor allows for the stage payments to be done to the contractor as per the terms of the contract. Importance of the taking off process to the clients The client is mainly concerned with overseeing the completion of the project in a timely manner, cost effective incurrence and high quality finished product (Ashworth, 2002). The client is supposed to be given information about the project and this can only be achieved through the taking off process. The financial details extracted from the bill of quantity can enable the valuators to transform the information into other details such as cash flows, variation of costs and the periodic project accounts (Ashworth, 2002). This information can be relayed to the client so that he remains informed about the progress of the project and the current financial status of the project. Importance of the taking off process to the consultants Consultants on the other hand are tasked with the representation of the client so that he gets value for his money. The main work of the contractor is concentrated around ensuring that the product given to the client is of high quality, completed in time and falls within the estimated budget (Rashid et al, 2006). The priced bill that is provided by the contractors usually provides information that is very useful to the consultant in the identification of the total cost of the cost of construction and the prevailing market conditions. The qualititative and quantitative information that is presented in the taking off process and also included in the bill of quantity helps the consulting firms to prepare proper tender evaluation approaches and the selection of the most qualified contractor for the projects (Ashworth, 2002). The priced bill is then translated into a work programme, a cost plan and a project budget. This helps in ensuring that the supervision and control of the cost of the project remain effective and the contractor also has a shopping list of the items necessary for the work to be completed effectively (Seeley & Winfield, 2009). Importance of the taking off process to the contractors During the tendering process of construction projects, the clients give a bill of quantities to the contractor. The document also includes the take off list which is an integral part of the building process. The contractor is then able to calculate the total cost of a given project accurately using the prevailing prices in the market (Seeley & Winfield, 2009). The taking off list is very important to the contractors in the estimation of the costs since it can be used to calculate the costs for the preparation of the tender. The bill of quantities is normally based on taking off list that is provided by the quantity surveyor. Each and every company has its own unique standard working tables that they use for the preparation of the un-priced works (Ashworth, 2002). When this task has been completed and properly priced, it is then sent to the client. The taking off list that is part of the bill of quantities is useful to the contractors in the preparation of pricings for other new projects using the estimated costs of construction. The taking off list is also very important when working out the target cost of the project (Ashworth, 2002). The costs that have been estimated are then adopted and used as the basis of the construction operations on the project sites. The target costs normally try to provide a relationship between the cost and the actual work being done at the sites. Analysis is then done on these costs separately and this is dependent on the actual level of achievement that is expected in each particular task. The target cost is often lower than the estimated cost. Finally the actual cost of the project is also determined from the bill of quantities (Sandra et al, 2005). The actual uses the actual data that is recorded at the construction site and gives the actual budget of the total cost of the project. Subcontractors The main contractor of the project can make use of the taking off process to help him sub divide the bill of quantities into different trade sections to be awarded to various sub contractors (Sandra et al, 2005). The separate sections that are already have estimated prices are then distributed to different sub contractors who are given a chance to do their own pricing of the components and then return the priced document too the main contractor. While choosing the most qualified candidate, the contractor takes into account the pricing, the experience, time, quality of the work and the reputation of the sub contractor (Ashworth, 2002). Materials The taking off process can be used to obtain the quotations for the materials that are to be used on construction sites. The bill of quantities is sent to the suppliers and they in return send back a pricing of the materials quoted in the document. Materials that are commonly available are purchased by the contractor through the locally available channels while those that need to be imported are purchased through the most cost friendly supplier in compliance with the local regulations in regard to exports and imports (Ashworth, 2002). The pricing that is put on the materials is usually affected by a number of factors which include: The size of the order, the cost of delivery and the rate of exchange (Sandra et al, 2005). The information that is communicated to the suppliers of the materials includes: materials specification, the quantity of the materials necessary for the project, the site address and the expected date of delivery as required by the contactor or the sub contractor (Ashworth, 2002). The plant The taking off process can be very crucial while proposing and obtaining the necessary quotations for hire, purchase or lease of the equipment necessary for setting up a plant. The contractor can either hire or lease the plant depending on the budgeting done and the expected use of the plant (Sandra et al, 2005). For this to be done correctly, the taking off process must be done in an accurate and precise manner. Labour The taking off process also comes in handy in the estimation of the cost of labour. The labour costs are normally estimated using the current labour rates including the basic rates and the bonus that must be guaranteed to the workers including factors such weather allowances, sick pays and any other extra payments (Sandra et al, 2005). The most commonly used method of estimating the total cost of labour is the unit rates method. This method can be used to measure the bill of quantities by both the contractor and the sub contractor. Importance of the taking off process to the operation works and management of the project The taking off process is not only important in the provision of information necessary for the tendering process but also becomes very useful in operation activities carried out during the construction process. The accuracy and the manner in which the taking off list is drawn is very crucial in the management and construction project (Ashworth, 2002). If the teams operating at the site are able to have a better understanding of the taking off process, the result can be the realization of very effective project management and the trades required in the project. A work breakdown structure (WBS) can be prepared for the project outlining the list of items and the tasks required in the project (Ashworth, 2002). This information will help in the planning operations and the preparation of work programmes. This helps to organize the activities in a logical manner for the various sub contractors and this helps to estimate the duration of each activity. The estimated costs for the project are necessary in monitoring the finances of the project. The taking off process is very important in project development depending on the type and the focus of the project (Seeley & Winfield, 2009). Projects that are large in magnitude and require a high level of detail make use of the taking off process in reporting for their finances and accounts. Figure 2: The relationship between the events occurring in the taking off process The relationship between law and the taking off process The taking off process is an integral part of the documents necessary for the preparation of a contract. When a contractor signs a contract document, he bids himself to the terms of the contract and accepts that the details contained within are true and correct (Seeley & Winfield, 2009). For any breach of the terms and conditions, they are held responsible for the failure. A number of standard forms contracts are available for this purpose such as the Joint Contracts Tribunal (JCT) of 2005 which comes with a section for the bill of quantities (RCS, 2015). Conclusion From the discussions carried out in the research paper, it is evident that the taking off process is very important in quite a number of administrative stages of a given development project. Since the bill of quantities is a document that creates a contract between the client and the contactor, it becomes very crucial for the legal works related to the project. The modern methods of procurement such as fast tracking procurement do not need the use of bills of quantities since no design work is necessary. However, in all projects, the contractor is obliged to prepare the proper documentation for the estimation of cost while placing a bid for a particular tender. Despite the advancement in technology and the emergency of a new class of procurements in the construction sector, the taking off process will always remain to be a viable tool for use in the documentation of the cost of the project. References Seeley, I. & Winfield, R. 2009, Building Quantities Explained, Edition 5, Palgrave Macmillan, United Kingdom. Lee Sandra & Trench William & Willis Andrew 2005, Willis’s elements of Quantity Surveying, Edition 10, Blackwell Publishing, United Kingdom. Ashworth, A 2002. Pre-contract studies, developing economics, Tendering and Estimating, 2nd Edition, Blackwell Publishing, United Kingdom. RICS 2013, RICS UK, available at < http://www.rics.org/uk>. Accessed on 20th April 2015. Rashid R. , Mustapa, M and Wahid, S. (2006). Bills of Quantities – Are They Still Useful and Relevant Today? International Conference on Construction Industry. 1 (1), 1-9. Read More