a contracting organisation as an estimator

You have recently been employed by a contracting organisation as an estimator, whose main office is located in the centre of Oxford City. The organisation has been invited to tender for the construction of two semi-detached houses in the outskirts of the town of Stratford Upon Avon. The proposed site is approximately 50 miles from Oxford City and is located on the same road as a Primary school and Nursery. The area experiences busy times between 08.00 to 09.30 in the morning and 15.00 and 18.00 in the afternoon, due to these being drop off and pick up times. Apart from the busy times associated with children being dropped off and picked up, the location is known to be a quiet residential area. Access on to and around the site is very tight, with only sufficient space for three porta cabins and two storage containers. The project has been procured using a traditional JCT SBC/Q 2016 and therefore part of the tender documentation is a Bill of Quantities.

The contracting organisation has not had previous experience with housing projects, but has mainly operated in the small community projects, health care and the education sector. The organisation’s senior management has recently developed a tender strategy, which includes bidding for work in the housing market, due to evidence of the rise in the number of government funded projects. The proposed project, therefore presents an ideal opportunity to not only enter and build experience within the market, but work with a new client.

Task:

a. Complete the pricing of the Finishes Section of the Bill of Quantities provided in Appendix C.

Pricing of the finishes section of the bill of quantities will require you to calculate the:

– ‘all-in labour’ rate for a craftsman and labourer Appendix A.
– ‘unit rates’ of supplying and fitting the finishes items noted in Appendix B making use of the information provided in this appendix.

The build ups can be presented on either traditional dimension paper or ordinary paper.

All your calculations should clearly show the following:

– The all-in labour and tradesman rates. Complete the table to provide the ‘all in labour’ rate that can then be inserted into the unit rate calculations for the Bills of Quantities;
– Labour, plant and material elements of your calculations on estimating paper.

b. Reflecting on the work you have done above (part a), write a report for your chief estimator outlining the processes that need to be put in place in preparation for the tender submission and how this will be of benefit to the company.

You are required to focus your report on the following:

– The successful procurement of the subcontract works;
– How the preliminaries could be priced with supporting examples of specific rate calculations to support your discussion taking into consideration the possible site issues;
– How overheads and profit and tender adjudication process could be approached with supporting examples.

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