Quantity Surveying and Cost Consulting Services by James Mitchell

Quantity Surveying & Cost Consulting Services Schedule of Services and Recommended Charges

First Edition

Asset Sure quantity surveyors ltd Asset Sure Quantity Surveyors Ltd 96E Disraeli St, Sydenham, Christchurch Tel: (03) 281 7703 Website: www.asqs.co.nz Email: info@asqs.co.nz

Prepared, Copyrighted and Published by ASSET SURE QUANTITY SURVEYORS LIMITED

A Foreword by the author A discussion on improving Construction Efficiency in New Zealand Concerns about the cost of construction are becoming more common within New Zealand. This has escalated to the point where it is a major concern of the New Zealand government. They have spoken on this issue on many occasions and at a political level they believe significant improvements could be made. We agree. This is no more pronounced than in Christchurch where the additional geotechnical engineering requirements that are now required for construction have made certain forms of building prohibitive. Developers and insurers are looking to speed their efforts but in many cases the economics are not achievable. The effect of this, is that the speed of rebuilding and rejuvenating New Zealandâ&#x20AC;&#x2122;s second biggest city is not occurring at the pace that most civic leaders would desire. The absence of a pan trade agenda on this issue means that the current methods of construction, and modes of thinking about construction, are not bringing about the quantum improvements the current government desires. It appears that marginal improvements are occurring, but there does not appear to be any immediate or significant solution to this dilemma. My conclusion is that we must now explore some forms of disruptive technology if we are to elevate New Zealand to a leading player in construction economics. To this end we are currently working on initiatives that will speed the evolution of better construction economics, and technologies in construction, by changing how Quantity Surveyors engage with clients. For our part we have created the CIM (Cost Information Model p4) that dramatically changes the engagement of professionals to enhance the build efficiency by 20% and more. We see this as a starting point and we would like to see some significant changes bought about in other construction sector thinking. What follows is a document that will help funders, developers, architects, builders and property owners within New Zealand seize the opportunity for change. Beyond this we are involved with suppliers who are demonstrating material cost savings by better than 20%. And other suppliers who are introducing new construction methods that can simplify other costs by more than 10%. I encourage anyone who is involved with investments in construction to rethink their business model and move in a similar direction, as it will benefit building and development owners, and the wider community at large. Yours faithfully

Lester Bryant Managing Director Asset Sure Quantity Surveyors Ltd

PREFACE This book has been prepared by Asset Sure Quantity Surveyors as a guide for the engagement of services of a Professional Quantity Surveyor (PQS). The PQS is a vital member of, and brings added value to, the design and construction team. In this team, just as in any other, success is achieved by skill and cooperation. The skills of the PQS emanates from their training, experience and expertise in the field of construction costs, enabling them to perform duties combining the functions of an economist, an estimator, an accountant and contracts manager. The PQS is specifically focused on the management of construction cost and value. Depending upon the sophistication of the client in design and construction, the PQS can be retained to provide input and advice from inception, to total completion, or for specific tasks therein. Experience has shown that clients who include the PQS as part of their team from inception to completion, tend to maximize their return on this investment in professional expertise. When you embark on a construction program, you are making a commitment to what may be a major investment in an unknown quantity. While defining the proposed building or facility broadly in terms of size and function is possible, there are significant variables that need attention such as: • How well and how long will the building serve its intended purpose? • Will it be responsive to the needs of its users and the community? • What will it say about your image? • Will it be financially feasible? The PQS you select can work with you and the design team to establish the program budget. As the design progresses through the various design stages, the PQS will prepare elemental cost plans which will be used to report changes and variations in the anticipated cost, allowing for timely decisions on additions or deletions to the design, while maintaining the initial program budget. Prior to any tender, the elemental cost plan will again be reviewed and this pre-tender estimate will be used to evaluate bids received. During the design and construction of your project, the PQS effectively becomes a major contributor to your organisation, serving as advisor and technical manager and in large measure, he or she will determine the financial success of the project. Obviously, selecting the right PQS should not be a casual or offhand process. You will want to find a PQS whose experience, interests and capabilities fit your requirements best, and with whom you can work well.

The Professional Quantity Surveyor (PQS) The PQS is a professional who has dedicated his or her career to the practice of construction economics and the management of construction through effective cost control. To become a PQS, an individual must successfully complete the appropriate education requirements which is followed by several years of monitored experience in all aspects of practice. The designation Registered QS can only be granted by the NZIQS. Any breach of established ethical standards by a NZIQS member can result in disciplinary action, suspension or cancellation of membership.

Asset Sure Quantity Surveyors First Edition 2015

contents 1.0 Cost Information Model (CIM)

1.1 Back Costing

1.2 Improving Construction Efficiency

1.3 How to Reduce Construction Costs

1.5 Available Services

2.0 Available Options

Cost Planning Services

2.1 Feasibility Study - Class A Estimate(s)

2.2 Feasibility Study - Class A Estimate(s) continued

2.3 Schematic Design - Class B Estimate(s) (Documents 5%-25% complete)

2.4 Design Development - Class C Estimate (Documents 25%-33% complete)

2.5 Working Documents - Class D Estimate (Documents 50%-66% complete)

2.6 Pre Tender Contract Documents - Class E Estimate (Documents 90%-100% complete)

2.7 Tender Package

2.8 Tender Review & Contractor Selection

2.9 Reconciliation

2.10 Value Management

2.11 Functional Cost Analysis

2.12 Post-Tender Services

2.13 Services Relating to Fixed Price or Stipulated Sum Contracts

A. Schedule of Values

B. Progress Advance Approvals

C. Contract Changes

D. Contract Status

E. Final Account

F. Bank Claim Services

3.0 Other Contract Types

3.1 Services Relating to Cost Plus Contracts

3.2 Services Relating to Management Contracts

4.0 Recommended Charges

4.1 Hourly Charges

4.2 Court Hearings

4.3 Feasibility Studies

4.4 Functional Program

4.5 Project Design (Schematic Design to Tender Review) - 7 Estimates

Asset Sure Quantity Surveyors First Edition 2015

5.0 Fee Tables

5.1 Recommended Fee Table for Builders Doing Residential Work

5.2 Recommended Fee Table - Commercial Work

5.3 Categories of Buildings

5.4 The Advantages of BIM

5.5 Functional Cost Analysis

5.6 Multi-Building Projects

5.7 Alteration Work

5.8 Post Tender Services

5.9 Other Services

5.10 Fees for Mechanical, Electrical, FIRE Quantity Surveyors

5.11 Disbursements

5.12 Payment of Accounts, Penalties & Interest

5.13 Variations

5.14 Cost Engineering

6.0 Client Responsibilities

6.1 Recommended Request Formats

7.0 Recommended Standard Form of Agreement

A1 The Clientâ&#x20AC;&#x2122;s Responsibilities

A2 Variation of Fee

A3 Additional Hourly Charges

A4 Payment of Accounts & Interest

A5 Copyright

A6 Ownership of Documents

A7 Termination

A8 Arbitration & Jurisdiction

A9 Insurance

A10 Confidentiality

A11 Cost Accuracy

A12 Addresses for Notice

What Does a Quantity Surveyor Do?

Certificate of Insurance

What Does It Take to Become a Registered Quantity Surveyor?

Asset Sure Quantity Surveyors First Edition 2015

cim cost information

1.0 cost information model (Cim) The CIM model stages A-E are explained through sections 2.1-2.6 (p14-23). LEGEND A. Predesign feasibility. B. Concept design feasibility. C. Initiate Specification and Detailing (options feasibility). D. Detailing above 50% and engineering defined (draft completion). E. Detail and specification finalised, supplier details finalised >90%, final price. PEAK = Construction Contract finalised. At this point you go to contract. F. Construction Planning and organising. Critical to efficiency. G. Construction of the building (spending). TROUGH = Handover occurs.* H. Whole of life usage costs. These may be calculated as part of the sustainability model.**

Asset Sure Quantity Surveyors First Edition 2015

DIAGRAM 1.0 - CIM

1.1 back costing

cim cost information

On the left side of the curve we make decisions on the anticipated work and costs involved. On the right side of the curve we conduct spending that matches the decisions made earlier. Theoretically no more margin can be made except for variation beyond this point. Back-costing should be done by comparing purchase/works orders arrived at during E. Cost + cost + cost should match spend + spend + spend.

* Note: the trough (point of handover) may go below the line which indicates a loss has been made. ** The Sustainability Cost Model (H) considers product choices such as lift and elevator selections. More expensive lifts may be more durable and reduce maintenance over the buildings life. More efficient air-conditioning may save on electricity consumption. And end of life demolition costs can be calculated. Modelling product decisions on the left of the curve with the H phase, whole of life usage can be done by Quantity Surveyors and may include depreciation and appreciation figures required for accounting. This is more cost effective than utilising a chattels valuer in a part life calculation. And it can help satisfy any need to define sustainability.

Asset Sure Quantity Surveyors First Edition 2015

cim cost information 1.2 improving Construction Efficiency A lot of focus has been put into the CAD and drawing aspects of a job, with a belief that within this extra information lies the full benefit of a BIM model (refer to 5.4 p54). It can be appreciated that a 3D model can help avoid clashes between contractors, by planning on site delivery through visually staging each part of a job. Losses made due to poor planning are avoidable and a certain partial saving can be made. But we believe that the significant improvement in construction cost modelling actually occurs between the estimating and the project management disciplines. By creating the pricing data in a way that it is used by the Project Managers, the transparency between the disciplines produces a far more effective outcome. This requires the production of detail and not just the use of global rates. For example, rather than having a global rate of $18.50/m2 fitted for plasterboard, the Quantity Surveyor calculates the amount of plasterboard with hardware, labour, wastage and rounding up requirements. You cannot order half a unit (sheet) of plasterboard, glue or screws. And the labour time is definable. So if the costing data is groomed for usage by the project management team, a lot of time in organising the program (section F, Diagram 1.0 - p4) is saved. And all accounting and back-costing functions become synchronous. As an example, if the Quantity Surveyor calculates 200 sheets of plasterboard with 400 man hours to fix the plasterboard, this information should flow through to produce the purchase orders, site deliveries and the Bill of Labour that the Project Manager uses. The Bill of Labour will help the Project Manager assign the work. If he assigns 4 men to do the fitting, then that becomes 100 work hours in the program on a certain start date with a baseline and float also defined. By using the costing data on the left side of the curve, to run the construction program on the right side, a significant advantage is attained. International examples are showing 20-30% time savings on some jobs.

Asset Sure Quantity Surveyors First Edition 2015

ARCHITECT

cim cost information

Quantity Surveyor Controls Cost

BUILDER

CLIENT

1.3 How To reduce construction costs Evolving the BIM (p54) model to become an integrated CIM (p4) model produces some attractive cost savings. By improving the quality of the data that is created, the value of the data becomes more immediate. The CIM model relies on the transference of numeric and pricing data between the disciplines. The BIM model uses 2D and 3D drawings to avoid physical conflicts and delays, but does not address the costs of decisions made. The CIM model works to evolve data more and more so it becomes a highly evolved compilation of facts. This simple step decreases the risk of a project start failure by

90%

Improves the on-site efficiency and build time by

20%

The certainty of occupancy deadlines being met is improved by more than

and greater

75%

• The cost savings are large but will vary project by project. • Funding costs are reduced because of the compressed timeline. • Funders confidence to approve projects is enhanced. They have better detail to scrutinise. • Funders are more willing to back developers who perform in this way. • The details for a sustainability model are on hand if required (section H, Diagram 1.0 - p4).

Asset Sure Quantity Surveyors First Edition 2015

AVAILABLE SERVICES

1.5 available services

Asset Sure Quantity Surveyors First Edition 2015

The following lists identify services that may be provided by ASQS Ltd, however, it should be noted that not all members of NZIQS will be able to provide all of the services listed. The enquirer should ensure that the Quantity Surveyor they are about to engage has an adequate background to undertake the work. For a comprehensive list of our services please refer to Cost Planning Services (p13).

Value Management and Progress Reporting

Cost Consulting Services • Feasibility Studies • Conceptual Estimating

• Review of Project Program • Design and Cost Studies; Service Provider for Value Management Workshops • Evaluating Processes and Components • Preparation of Recommendations

• Project Budgeting • Cost Planning / Cost Control Estimates (in either elemental or trade format) • Assembly of Tender Packages • Tender Review and Contractor Selection

Life Cycle Costing, Including • BIM cost management and information integration • Life Cycle Cost Plans • Discounted Cash Flows • Sensitivity Analysis

• Functional Cost Analysis; Review and Recommendation of Project Progress Payments • Review and Negotiation of Variation Orders and Contractual Claims

Other Services

Mortgage and Loan Draw Down Monitoring

• Insurance Replacement Cost Assessment • Project Management • Project Scheduling

• Review and verification that the Project Budget is adequate to complete the project

• Construction Management

• Progress Draw Review and monitoring of costs incurred

• Property Condition Reports

• Verification of borrower payments by way of payment certifier actions

• Construction and Project Cash Flows

• Cost to Complete Reports • Risk Analysis • Mediation and Arbitration • Expert Witness • Bills of Quantities and/or Materials • Material Take-offs • Reserve Fund Studies

Asset Sure Quantity Surveyors First Edition 2015

AVAILABLE SERVICES

Quantity Surveyors operate in all areas of construction including private consulting firms, contractors, architectural firms, government departments and municipal, provincial and educational facilities. Sometimes they are members of institutes such as RICS, AIQS and in New Zealand NZIQS.

AVAILABLE options

2.0 available options

Asset Sure Quantity Surveyors First Edition 2015

Full architectural involvement - The options What follows is a more detailed explanation of how you may best utilise our services and indications as to the likely costs.

To help you with your clients we have a comprehensive list of Service Levels, Product Types and Solutions. In typical accounting ways the list is large and detailed. This list may seem exhaustive but it is designed to offer clarity to everyone involved and to help you chose the right product for your project. When you are just exploring options (Feasibility Study â&#x20AC;&#x201C; Class A) with the help of our knowledge the cost is relatively low. As you climb the scale each stage involves more cost. Aligned with that is the complexity and size of the building project itself, which we detail in Recommended Fee Tables 5.1 (p33) and 5.2 (p37), so you can get a gauge of what is required. What is not detailed are the benefits of using our services which can be large (see Benefits, Omissions, Efficiency on the side of this page).

What is not immediately apparent are the savings that we bring to many jobs. Typically these savings are far in excess of any fee we may charge. We can act as the early sounding board for most proposals and save every professional involved a lot of unnecessary time.

Fro m Fe a s i b i l i t y (C l a s s A) t hrough t o f u ll c o s t i n g s ( C l a s s E ) our fees a nd c o st st ru c t u re s w i l l o n l y i ncrea se a s t he w o rk l o a d a n d d e t a i l i ncrea ses.

Benefits

Omissions Anyone who has used a PQS on a job is well aware of the large savings that can be achieved because of the early discovery of design and construction omissions that would have affected the cost.

Efficiency 100 75 50 25 0

Site build times and job efficiencies are greatly enhanced by using full service Quantity Surveying. These gains can vary from 10-20% in residential and as high as 30% in commercial and industrial work.

Asset Sure Quantity Surveyors First Edition 2015

AVAILABLE options

The services that a PQS provides vary considerably. It can be difficult to know what the exact price and outcome of a job will be. In principle we are trying to achieve an average hourly rate of billing. Size, scale and complexity all play a part in determining the overall cost of construction. They also have an effect on what our billing will be, as we use our knowledge in combination with time, to solve the cost engineering issues.

AVAILABLE options

Cost Planning Services The following services are identified at specific stages in the work for ease of reference . The client will only recognise the full benefit of engaging us if we are active in participating in the design teams efforts and we are able to provide costing advice on an ongoing and continuous basis. The following lists set out some of the cost planning services we may provide.

Concept Phase - 1st Feasibility Concept and Site Provision Costs - 2nd Feasibility Specification & Detail Above 25% - 3rd Feasibility Specification & Detail Above 50% - 3rd Feasibility Finalised Costs >90% Detail - Contract Phase Construction Planning Phase Construction Phase Whole of life usage including plant & equipment maintenance and end of life demolition

Asset Sure Quantity Surveyors First Edition 2015

COST PHASES A B

AVAILABLE options

AVAILABLE SERVICES Strategic Design build evaluation Cost-Benefit Analysis Project strategy Risk management analysis and support Development programming Value management Assistance in site selection Comparative evaluations Benchmarking Prioritisation and decision support Sustainability strategies Procurement strategy Procurement structuring and refinement Peer reviews and budget validation Preliminary Construction economics advice Preliminary contract advice Assistance in establishing building envelopes Preliminary budget estimates Documentation Schedules / bills of materials Schedules / bills of labour Schedules / bills of quantities Provisional / re-measured quantities Specification schedules / bills of quantities Trade package schedules / bills of quantities Price schedules / bills of quantities Cost Planning Elemental estimates Trade based estimates Resource based estimates Functional estimates Design modification advice / Cost reduction program Budgetary restraint recommendations Cost projections Cost planning process implementation Cost studies Cashflow forecasts Budgetary cost checks Final project estimate Coordinate specialist estimates Cost allocation and cost centre establishment Assistance in material selection Evaluation of alternative materials Funding Application Reports Risk assessment Contingency Assessment and Establishment Life cycle costing Discounted cashflow analysis Evaluation Administration of tender process Evaluation of tenders and proposals Contractor and Consultant Pre-Qualification Letting Recommendations Letting Documentation Letting Processes Contract Administration Progress valuations Pricing and negotiating variation management and control Adjustment of monetary sums Payment Strategy - Advances / Unfixed Material / Retention / Bonding Re-measure support Financial statements Cashflow forecasts / Reserve Fund Report Cost audit services Claim evaluation Final account negotiation Other Project Services Limit of cost / cost audit Cost to complete studies Drawdown certification for financial institutions Litigation / Dispute Resolution assistance Expert Witnesses Secondment of staff Post Construction Life Cycle Management (including demolition) Replacement cost (sum insured) estimates (including demolition) Depreciation schedules Maintenance scheduling Operational budgeting Make good / end of lease cost estimates Maintenance procurement and auditing

Asset Sure Quantity Surveyors First Edition 2015

AVAILABLE options

2.1 Feasibility Study - Class a Estimate(s) At the earliest stages of a project, a Feasibility Study may be requested by the client as a means to develop the project requirements and identify a range of solutions that meet those requirements. The first Feasibility Study provides the information base to be used to evaluate solutions and determine the optimum project solution. Its level of detail will depend on the nature, complexity and sensitivities of the project. Since it is common to evaluate more than one project solution and the level of evaluation may vary depending on nature, complexity and sensitivities of the project, fee proposals will vary depending on the services requested by the client.

During this stage, the Client may request us to develop Class A estimates of the:

We may also, working with other market specialists, provide advice on:

I. construction cost

I. feasibility studies

II. operating and maintenance costs

II. analysing commercial returns

III. cash flows for one or any of the solutions that are to be evaluated

III. profitability IV. financing arrangements V. land acquisition VI. revenue forecasts VII. market analysis

Asset Sure Quantity Surveyors First Edition 2015

For public, institutional and commercial construction projects, the PQS typically prepares a study which will consist of an: I. analysis of budget requirements II. analysis of possible building size within a fixed budget III. preparation of cost studies including operating and maintenance cost evaluations

class

A Design Brief is a well thought out, realistic, and well-articulated statement of project objectives and requirements. This is the basic purpose of a Design Brief and its primary output. Such a document, also referred to as a needs statement, functional plan, functional program, or architectural program, serves to define the design and planning problem and to demonstrate its rational basis to potential funding. During the early stages of a project, the Client may request us to develop Class A estimates based on a Design Brief. A Design Brief is a pre-design document describing the functional requirements or user requirements of a building or renovation in sufficient detail to initiate preliminary costing. It may include space types and sizes, space finishes, space adjacencies, special mechanical or electrical services, and any equipment.

We will draw upon accumulated experience and recorded cost data to prepare an estimate(s) of the probable cost consistent with the known requirements. Clearly this early assessment of cost will involve a number of basic assumptions as to the nature and construction of the project. It is common for the client to request more than one cost option at the Design Brief stage if a site has not been selected, method of procurement has not been chosen, or the client may request options for different building sizes and configurations. Fee proposals will vary depending on the services requested by the client. The more complex projects, generally larger developments, may also be costed at this stage based on a Facilities Program. It is also advisable to initiate the BIM/CIM model definitions at this stage.

To prepare a Class A estimate for a Design Brief, the following recommended minimum requirements are to be provided: • Project plan detailing the project function, purpose and characteristics including information relating to the gross floor area of prime building spaces, equipment, and building systems • Functional Program or User Requirements document • Floor-to-floor heights and general information about the exterior building elements • Geographical location, site configuration, planning limitations, known soil and rock information, availability of utility services to the building, as-found drawings and intrusive investigations for existing building (if applicable) • Procurement methodology and notional timing • Cost limitations and allowances

Asset Sure Quantity Surveyors First Edition 2015

AVAILABLE options

2.2 Feasibility study - Class A Estimate(s) continueD

AVAILABLE options

2.3 Schematic Design Class B Estimate(s) (Documents 5%-25% complete) At the Schematic Design stage, the Project Team establishes the general scope and provides schematic drawings showing scale and relationships among the components of the project. The outcome of Schematic Design is to analyse alternative design solutions and to arrive at a clearly defined, concept design while meeting the project requirements. Based on the client approved schematic design documents, we will meet with the Project Team, review the nature and scope of the entire project, and prepare for the clientâ&#x20AC;&#x2122;s review, a Budget Cost Estimate(s) and cost plan that reflects the size and character of the entire project, including the architectural, structural, mechanical fire and electrical systems, and such other elements as may be appropriate. This Budget Cost Estimate(s) and cost plan will be presented as

a Class B Estimate, including backup sheets showing quantities, unit rates and amounts for composite or individual items of work, as well as an Elemental Cost Summary. If required we will meet with the client and/or Project Team for the purposes of reviewing the submitted Budget Cost Estimate(s), and making any subsequent revisions. At the Schematic Design phase, the client may request from the designers, more than one conceptual design, and therefore more than one Class B Estimate to assist in the decision to move forward with one design option. Fee proposals will vary depending on the services requested by the client. The agreed-upon Budget Cost Estimate will become the cost plan, and will form the basis for Cost Control in the subsequent Design Phases.

Asset Sure Quantity Surveyors First Edition 2015

class

To prepare a Class B estimate, the following recommended minimum requirements are to be provided: • Principal floor plans • Structural foundation system and typical framing system • Principal exterior wall sections and roof system selections • Preliminary finish schedule by rooms • Mechanical, fire and electrical systems outline (suggested equipment requirements) • Outline specification • Basic site plans and original site drawings and investigations • Finish grades with paving and parking requirements • Storm drainage solution and existing utility locations • As-found drawings for existing building (if applicable) • Demolition drawings (renovation work), including clear indication of existing materials to remain

Asset Sure Quantity Surveyors First Edition 2015

AVAILABLE options

2.4 Design Development Class C Estimate (Documents 25%-33% complete) Based on the clientâ&#x20AC;&#x2122;s approved design development documents, we will prepare, for the clientâ&#x20AC;&#x2122;s review, a Project Cost Estimate or Construction Cost Estimate as applicable that reflects the size and character of the entire project, including the architectural, structural, mechanical, fire and electrical systems, and such other elements as may be appropriate. This Estimate will be presented as a Class C Estimate, including backup sheets showing quantities, unit rates and amounts for composite or individual items of work, as well as an Elemental Cost Summary. This Estimate will be accompanied by a report explaining the basis on which the estimate has been prepared (including documentation list), outlining the scope of work, any limitations or qualifications, and including an elemental cost comparison highlighting any deviations from the cost plan. The report will also include any recommendations for cost reduction if this is required to adhere to the cost plan. If any major deviation from the cost plan is apparent, a formal cost reduction program may be offered to the client. During the course of Design Development, we will review the design documentation from time-to-time, and will participate in evaluating and analysing alternative configurations, materials and systems. Such input will be on the basis of milestones agreed to with the client at the outset.

Asset Sure Quantity Surveyors First Edition 2015

class

To prepare a Design Development Class C Estimate, the following recommended minimum requirements are to be provided: • Developed ( >25%) floor plans, reflected ceiling plans, roof plans • Structural foundation design, typical structural framing • Developed ( >25%) building elevations and sections • Typical interior wall types and acoustical guidelines • Preliminary finish schedule with material selections • Developed ( >25%) mechanical plans indicating: main branch piping and ductwork; major equipment types and layouts; fire protection requirements; and basic controls system description

• Developed ( >25%) electrical plans indicating: single line riser/distribution layout; basic panel information; lighting requirements and layout; basic communications, fire alarm, and security requirements • Outline specification with selected equipment, sizes, and performance requirements • Site plans, indicating building locations and site improvements (including all paved areas, site utilities, and building or vertical structure locations)

• Topographical information (current and engineered topographical information) • Utility location (showing all underground structures and lines) • Demolition/removal plans and information • Sustainable design requirements • Geotechnical requirements • Subterranean and dewatering requirements • Perimeter and boundary requirements • Special client-requested requirements

• Additional site investigations, as required

Asset Sure Quantity Surveyors First Edition 2015

AVAILABLE options

2.5 Working Documents- Class D Estimate (Documents 50%-66% complete) Based on the client’s approved 50%-66% contract drawings and specifications, we will prepare for the client’s review, a Project Cost Estimate or Construction Cost Estimate as applicable, that reflects the size and character of the entire project, including the architectural, structural, civil, mechanical, fire and electrical systems, and such other elements as may be appropriate. This Estimate will be presented as a Class D Estimate, including backup sheets showing quantities, unit rates and amounts for each item of work, as well as an Elemental Cost Summary. If requested by the client, a Trade Summary format estimate may be provided suitable for comparison with contractors’ tenders or proposals. This Estimate will be accompanied by a report explaining the basis on which the Estimate has been prepared (including documentation list), outlining the scope of work, and any limitations or qualifications. The report will also include any recommendations for cost reduction if this is required to adhere to the cost plan. If any major deviation from the cost plan prepared in the Working Drawings Phase is apparent, and was not corrected in the Design Development Phase, a formal cost reduction program may be offered to the client as an additional service and fee.

Asset Sure Quantity Surveyors First Edition 2015

class

To prepare a Working Drawings (50%-66%) Class D Estimate, the following recommended minimum requirements are to be provided: • Developed (>50%) floor plans, reflected ceiling plans, roof plans

• Developed (>50%) finish schedule with material selections

• Structural foundation design, typical structural framing

• Developed (>50%) mechanical plans

• Developed (>50%) building elevations and sections • Typical interior wall types and acoustical guidelines

• Developed (>50%) electrical plans • Developed (>50%) specifications

• Developed (>50%) site/ civil/landscape plans • Demolition/removal plans and information • Sustainable design requirements • Special client-requested requirements

Asset Sure Quantity Surveyors First Edition 2015

AVAILABLE options

AVAILABLE options 2.6 Pre-Tender Contract Documents Class E Estimate (Documents 90%-100% complete) Based on the client’s approved pre-tender contract drawings and specifications, we will prepare for the client’s review, a Project Cost Estimate or Construction Cost Estimate as applicable, that reflects the size and character of the entire project, including the architectural, structural, civil, mechanical and electrical systems, and such other elements as may be appropriate. This Estimate will be presented as a Class E Estimate, including backup sheets showing quantities, unit rates and amounts for each item of work, as well as an Elemental Cost Summary and a Trade Summary suitable for comparison with contractors’ tenders or proposals. This Estimate will be accompanied by a report explaining the basis on which the Estimate has been prepared (including documentation list), outlining the scope of work, and any limitations, disclaimers or qualifications. The report will also include any recommendations for cost reduction if this is required to adhere to the cost plan. If any major deviation from the cost plan prepared in the Pre-Tender Phase is apparent, and was not corrected in the Working Drawing Phase, a formal cost reduction program may be offered to the client as an additional service and fee.

In total two Class A Estimates, two Class B Estimates, one Class C Estimate, one Class D Estimate, and one Class E estimate apply to fee table 5.2 (p37). For project design work including a schematic design through to tender review E inclusive, the QS’s Base Fees should be calculated in accordance with the following sections fee tables. Where not all 7 Estimates are provided, the fees should be apportioned, based on the services to be provided on p37.

Asset Sure Quantity Surveyors First Edition 2015

class

To prepare a Pre-Tender Class E Estimate, the following recommended minimum requirements are to be provided: • Detailed (>90%) floor plans, reflected ceiling plans, roof plans • Detailed (>90%) demolition drawings (if renovation), including clear indication of existing materials to remain • Detailed (>90%) structural plans, notes, sections, and details fully describing the structural building requirements • Building elevations and building sections • Exterior wall sections • Details of exterior walls, stairs, toilet rooms, etc. • Finish schedule and notes • Special details and conditions (louvres, handrails, etc.)

• Conveyance plans, specifications and sections fully describing elevators, escalators and lifts • Detailed (>90%) mechanical plans, notes, sections and details fully describing the plumbing, HVAC and fire protection, controls, equipment requirements • Detailed (>90%) electrical plans, notes, sections and details fully describing the electrical, communication, security, and equipment requirements

• Final site drawings showing current and engineered topical information • Utility locations and design showing all underground structures and utility lines • Landscaping - all landscape layout and materials, grading and drainage, planting and construction detail drawings • Details, schedules and notes to be used in the construction of the project

• Project specifications, completely describing materials and performance requirements

Asset Sure Quantity Surveyors First Edition 2015

AVAILABLE options

tender packages

2.7 tender package As the tender package is being assembled, we should be made aware of all changes from the documents used to prepare the Pre-Tender update. It is not uncommon for the final details to significantly alter costs of the work. We can consider these changes and advise the client and design team to take appropriate action. During the tender period, questions often arise that result in addenda being issued by the design consultants. As an additional value-added service and charge, we may receive all of the addenda for review and report on any cost impact to the client prior to tender closing. This will enable proper appraisal of the tender results.

2.8 Tender Review & Contractor Selection In the case of competitively tendered prices, we may examine the bids together with alternative prices and the various unit prices, analyse the particulars and report to the client and design team with a recommendation as to the most satisfactory tender. In the event that the tendered prices are unacceptable, we may assist the client and the design team in the negotiations and recommend an equitable price. Such negotiations are facilitated by reference to the QSâ&#x20AC;&#x2122;s estimates. Where a cost plus contract is to be used, we may advise on the selection of a suitable contractor and on the form of the contract.

2.10 Value Management Value Management services may be required at any estimating phase and is charged as an additional value-added service.

2.11 Functional Cost Analysis When required, and as an additional valueadded service and charge, we may prepare a functional cost analysis of the project, based on the accepted tender. A functional cost analysis shows the cost of various functions contained within a project, for instance, the cost of classrooms in schools or patient areas in hospitals, offices, circulation space, mechanical rooms, and the like.

2.9 Reconciliation Reconciliation services between the QS and an owner, client or Construction Manager may occur at any estimating phase and is charged as an additional value-added service that falls outside of the original scope/brief.

Asset Sure Quantity Surveyors First Edition 2015

While many client/QS agreements are completed at the successful conclusion of a tender, the client, by utilising the services of a QS after the contract has been awarded, can benefit greatly from the detailed cost information the QS has compiled and their knowledge of the quantities of the work. With all of the pre-contract information at hand, the QS is ideally equipped to deal with the administrative issues that arise during the construction of a project. The following sets out some of the post tender services we may provide as a value-added additional service.

2.13 Services Relating to Fixed Price or Stipulated Sum Contracts

A. Schedule of Values

D. Contract Status

We may review the schedule of values submitted by the contractor, and in consultation with the client and design team make recommendations for changes, adjustments and acceptance.

During the course of the construction work, we may prepare at regular intervals, statements showing the current expenditures to date incorporating all change orders authorised and contemplated indicating the anticipated final cost.

B. Progress Advance Approvals We may examine the various applications from the contractor for progress payments, verify them against the work actually performed, evaluate the work in accordance with the contract, including the balance to complete, advise on the amount of Retention, and make recommendations as to the amount of such payments.

C. Contract Changes We may, in conjunction with the design team, also initiate and maintain procedures for evaluating variation orders and may negotiate with the contractor and recommend adjustments to the contract sum and project schedule.

E. Final Account On completion of the work a full and detailed final account incorporating all change orders and cash allowances adjustments may be prepared.

F. Bank Claim Services We are trained in the administration of contracts and we are knowledgeable of the provisions of the Construction Contracts Act 2002. As such the QS is an appropriate choice to provide the payment certifier functions that you may require.

Asset Sure Quantity Surveyors First Edition 2015

tender packages

2.12 Post-Tender Services

3.0 other contract types 26

Asset Sure Quantity Surveyors First Edition 2015

3.1 Services Relating to Cost Plus Contracts

3.2 Services Relating to Management Contracts

Cost Reporting We may set up proper accounting procedures for checking the contractor’s labour and material costs, and for reporting the same against the target budget.

Contract Changes We may also initiate and maintain procedures for evaluating variation orders or alterations and we will negotiate with the contractor and recommend adjustments to the contract sum (Refer to 5.13 “Variations” p57).

Contract Status During the course of the construction work, we may prepare at regular intervals, statements showing the current expenditures to date incorporating all variation orders authorised, and indicating the anticipated final cost.

Final Account On completion of the work, a full and detailed final account incorporating all change orders and cash allowances adjustments may be prepared.

Payment Certifier Services Our QS’s are trained in the administration of contracts and are aware of the provisions of the Construction Contracts Act 2002. As such we are a natural choice to provide the payment certifier function for your cost to completion reports.

a. Provide a breakdown of the elemental estimate to conform with the BIM, CIM or other estimating formats such as Masterspec and to enable a budget target cost to be agreed with the Project or Construction Manager. b. Provide a breakdown of the elemental estimate to conform with trade packages identified by the Project or Construction Manager, to assist in calling tenders. c. Examine the various applications from the contractor for progress payments, verify them against the work actually performed, evaluate the work in accordance with the contract, and make recommendations for the amount of such payments. d. Evaluate variation orders, negotiate costs and make recommendations on changes to the contract amount and progress schedule. e. Prepare a final account of all the trade contracts, incorporating all changes and adjustments to cash allowances etc.

We can also help you with a significant BIM capability offering that includes the linking of design, cost, project management and sustainability components with a centralised Project Management layout (Refer to 5.4 p54).

Asset Sure Quantity Surveyors First Edition 2015

recommended charges

4.0 recommended charges

Asset Sure Quantity Surveyors First Edition 2015

4.2 court hearings

The actual hourly rates vary according to the project and by the level of experience and seniority of the QS. The following rates are recommended rates to be used as a guide when determining time based fees. Staff engaged on work will be charged at preagreed hourly billing rates. For any other work performed on an hourly basis, refer to Article 3.0 (“Additional Hourly Charges,” p59).

4.3 Feasibility Studies

For Fully Qualified and for Fully Registered professional Quantity Surveyor services in connection with court hearings, arbitration or contractual disputes, subsequent to completion of an expert report when required, when consulting with council, reviewing and commenting on reports from other parties, preparing for and appearing in court or at an arbitration hearing whether formal or informal, the PQS’s fee will be $450.00 per hour, with a 4 hour minimum per day, or as otherwise set out in our Form of Agreement.

4.4 Functional Program

For providing studies into the overall feasibility of construction projects during the feasibility study stage, the QS’s fee should be charged in accordance with Article 3.0 (“Additional Hourly Charges,” p59).

For services at the functional program stage as described in section 2.5 (p20), the QS’s fee should be charged in accordance with Article 3.0 (“Additional Hourly Charges,” p59).

4.5 Project Design (Schematic Design to Tender Review - 7 Estimates in total [two Class A Estimates, two Class B Estimates, one Class C Estimate, one Class D Estimate, and one Class E estimate]. For project design work including schematic design through to tender review inclusive, the QS’s Base Fees should be calculated in accordance with the following sections fee tables in section 5. Where not all 7 Estimates are provided, the fees should be apportioned, based on the services to be provided.

Asset Sure Quantity Surveyors First Edition 2015

recommended charges

4.1 Hourly Charges

fee tables

5.0 fee tables The following Tables are designed to help inform you of the likely fee structures for: 5.1 â&#x20AC;&#x201C; Professional Service Options for Builders doing Residential and Simple Commercial Work.

Asset Sure Quantity Surveyors First Edition 2015

In circumstances where you already have the plans you may ask us for an Estimate. If you would like a Fee Proposal or Estimate please request one.

Asset Sure Quantity Surveyors First Edition 2015

fee tables

You Already Have The Plans

fee tables

5.1 Recommended Fee Table for Builders Doing Residential Work

BUILDERS If you are a Builder involved in quoting a job, or in providing a competitive Tender we can offer you the following options; (assuming the plans already exist). 1. We can give you a fee proposal based on our standard hourly billing rate. 2. We can give you a fee proposal to do a part of the work. 3. We can give you an estimate to do the Quantity Surveying work. 4. We can give you an estimate to do the Quantity Surveying work using only a Senior PQS.

Shared Risk/Reward Option 5. Shared Risk/Reward â&#x20AC;&#x201C; this offering is designed to help you bid for work at a set lower risk fee. In these circumstances someone has brought you the job and you are unsure whether you will get the work. So we will minimise our expense to you. As our work forms a substantial part of your bid, if you are awarded the job you agree that your success is then shared with us. For this we attract a reward based on a percentage of the total contract price should you be awarded the job.

Shared Risk/Reward Option with Project Management 6. Project Management â&#x20AC;&#x201D; a further service level is also offered that may simplify your running of the job. In this offering we agree to help you create the Project Management Program and to assemble your claims for each stage in the work you conduct. This leaves you free to pursue more sales and to simplify your operation. 7. The total offering above is made up of 3 x parts. For example, by using the Fee table you can see a Full Architecturally designed property worth $7-8 million would incur the fee structure below.

0.45%

prior to contract (a)

1.7% on awarding of contract (b)

2.0%

for Project Management and Claim Support (c) (this is optional)

A further option exists that enables you to enhance your sales pedigree by marketing yourself as BIM capable. (Refer to 5.4 p54 ) BIM and CIM (p4) capability are becoming a new standard in delivering construction cost efficiency, and building sustainability modeling. At the upper levels of Architectural design this is becoming a necessity and when the opportunities to be involved in this type of work are presented to you we can assist in your delivery of this option. All percentages exclude GST.

Asset Sure Quantity Surveyors First Edition 2015

FEE TABLE 5.1 - SHARED RISK/REWARD OPTIONS Housing Corp Standard

Simple Build/light Commercial

Simple + Upspec

Executive

Less than < $0.5M

hourly rate, request an Estimate

$0.5M to < $1M

a) 0.50% b) 2.5% c) 2.0%

a) 0.65% b) 2.4% c) 2.0%

a) 0.85% b) 2.3% c) 2.0%

$1M to < $1.5M

a) 0.50% b) 2.4% c) 2.0%

a) 0.65% b) 2.45% c) 2.0%

a) 0.85% b) 2.45% c) 2.0%

$1.5M to < $2.0M

a) 0.50% b) 2.3% c) 2.0%

a) 0.65% b) 2.3% c) 2.0%

a) 0.85% b) 2.35% c) 2.0%

$2.0M to < $2.5M

a) 0.50% b) 2.1% c) 2.0%

a) 0.65% b) 2.15% c) 2.0%

a) 0.85% b) 2.3% c) 2.0%

$2.5M to < $3.0M

a) 0.45% b) 2.0% c) 2.0%

a) 0.48% b) 2.0% c) 2.0%

a) 0.50% b) 2.0% c) 2.0%

a) 0.65% b) 2.2% c) 2.0%

$3.0M to < $4.0M

a) 0.4% b) 1.8% c) 2.0%

a) 0.43% b) 1.8% c) 2.0%

a) 0.43% b) 1.85% c) 2.0%

a) 0.44% b) 1.85% c) 2.0%

a) 0.45% b) 1.9% c) 2.0%

$4.0M to < $5.0M

a) 0.4% b) 1.8% c) 2.0%

a) 0.43% b) 1.8% c) 2.0%

a) 0.43% b) 1.85% c) 2.0%

a) 0.44% b) 1.85% c) 2.0%

a) 0.45% b) 1.9% c) 2.0%

$5.0M to < $7.0M

a) 0.4% b) 1.7% c) 2.0%

a) 0.43% b) 1.7% c) 2.0%

a) 0.43% b) 1.75% c) 2.0%

a) 0.44% b) 1.75% c) 2.0%

a) 0.45% b) 1.89% c) 2.0%

$7.0M to < $8.0M

a) 0.4% b) 1.5% c) 2.0%

a) 0.43% b) 1.5% c) 2.0%

a) 0.43% b) 1. 5% c) 2.0%

a) 0.44% b) 1.55% c) 2.0%

a) 0.45% b) 1.7% c) 2.0%

$8.0M to < $9.0M

a) 0.39% b) 1.3% c) 2.0%

a) 0.41% b) 1.3% c) 2.0%

a) 0.41% b) 1. 3% c) 2.0%

a) 0.43% b) 1.35% c) 2.0%

a) 0.44% b) 1.45% c) 2.0%

$9.0m to < $10m

a) 0.39% b) 1.2% c) 1.8%

a) 0.39% b) 1. 2% c) 1.8%

a) 0.41% b) 1.25% c) 1.85%

a) 0.42% b) 1.35% c) 1.90%

$10M to < $20M

a) 0.32% b) 1.05% c) 1.5%

a) 0.32% b) 1. 09% c) 1.5%

a) 0.38% b) 1.15% c) 1.55%

a) 0.40% b) 1.20% c) 1.65%

> $20M

a) 0.25% b) 0.05% c) 1.0%

a) 0.28% b) 0. 09% c) 1.2%

a) 0.29% b) 0.15% c) 1.25%

a) 0.30% b) 0.20% c) 1.45%

Note: Executive Level assumes standard construction with a higher amenity level (not full architectural design). INSTRUCTIONS Step 1 - Refer to Fee Table for Budget Range (left column). Step 2 - Refer to Building Categories (top row).

Full Architectural

a) - Indicates prior to contract. b) - Indicates on awarding of contract. c) - For Project Management Claim Support.

Asset Sure Quantity Surveyors First Edition 2015

fee tables

Building Category

fee tables

You are working on a plan

Asset Sure Quantity Surveyors First Edition 2015

fee tables 5.2 â&#x20AC;&#x201C; Professional Services for PQS work on Complex Work or Larger Scale Commercial work.

Asset Sure Quantity Surveyors First Edition 2015

fee tables

5.2 Recommended Fee Table - Commercial Work (Building Categories Follow)

DEVELOPERS If you are a Developer we can offer you and your architect support to ensure that the concepts and plans for your project are created more efficiently. By utilising the Class E feasabilities (Refer to 2.1 p14) we can help with budget guidance from an early stage. This can also be dovetailed with Early Contractor Involvements (Engagements) so that other key contractors can produce a much faster construction outcome. The risk of rework of the architectural design and specifications to meet your budget can be greatly reduced and many of the more complex build considerations can be anticipated ahead of time. Refer to 5.14 “Cost Engineering” p57.

ARCHITECTS If you are an Architect you may be looking for a consulting firm to partner with to secure your bidwork. We would like to help you with your design cost engineering decisions from the earliest stages. Our involvement will help you minimise the rework of design elements from the feasibility stage forward (Refer to Class A-E p14-p23). As each stage of the documentation evolves through Class B to Class E we will ratify the costs and provide commercial certainty to your clients project. This value added proposition can be extended. We can also help with: 1. Early Contractor Engagements that may be required to expedite a faster design and build time. 2. First Stage pricing for site considerations. 3. Project Management Formatting. 4. Project Management Assistance. 5. Claims Management. 6. Variations Management. 7. Back-costing.

In total two Class A Estimates, two Class B Estimates, one Class C Estimate, one Class D Estimate, and one Class E estimate apply to fee table 5.2. For project design work including schematic design through to tender review inclusive, the QS’s Base Fees should be calculated in accordance with the following sections fee tables. Where not all 7 Estimates are provided, the fees should be apportioned using the fee table percentages above and based on the services to be provided on page 37. All figures exclude GST.

Asset Sure Quantity Surveyors First Edition 2015

FEE TABLE 5.2 1

hourly rate

hourly rates

$1M to < $2M

$12,000 plus 0.675% over $1M

$12,800 plus 0.72% over $1M

$13,600 plus 0.765% over $1M

$14,400 plus 0.81% over $1M

$16,000 plus 0.90% over $1M

$17,600 plus 0.99% over $1M

$19,200 plus 1.08% over $1M

$2M to < $5M

$18,750 plus 0.525% over $2M

$20,000 plus 0.56% over $2M

$21,250 plus 0.595% over $2M

$22,500 plus 0.63% over $2M

$25,000 plus 0.70% over $2M

$27,500 plus 0.77% over $2M

$30,000 plus 0.84% over $2M

$5M to < $10M

$34,500 plus 0.375% over $5M

$36,800 plus 0.40% over $5M

$39,100 plus 0.425% over $5M

$41,400 plus 0.45% over $5M

$46,000 plus 0.50% over $5M

$50,600 plus 0.55% over $5M

$55,200 plus 0.60% over $5M

$10M to < $20M

$53,250 plus 0.30% over $10M

$56,800 plus 0.32% over $10M

$60,350 plus 0.34% over $10M

$63,900 plus 0.36% over $10M

$71,000 plus 0.40% over $10M

$78,100 plus 0.44% over $10M

$85,300 plus 0.48% over $10M

$20M to < $30M

$83,250 plus 0.263% over $20M

$88,000 plus 0.28% over $20M

$94,350 plus 0.298% over $20M

$99,900 plus 0.315% over $20M

$111,000 plus 0.35% over $20M

$122,100 plus 0.385% over $20M

$133,200 plus 0.42% over $20M

$30m to < $40M

$109,500 plus 0.225% over $30M

$116,800 plus 0.24% over $30M

$124,100 plus 0.255% over $30M

$131,400 plus 0.27% over $30M

$146,000 plus 0.30% over $30M

$160,600 plus 0.33% over $30M

$175,200 plus 0.36% over $30M

$40M to < $60M

$132,000 plus 0.188% over $40M

$140,800 plus 0.20% over $40M

$149,600 plus 0.213% over $40M

$158,400 plus 0.225% over $40M

$176,000 plus 0.25% over $40M

$193,600 plus 0.275% over $40M

$211,200 plus 0.30% over $40M

$60M to < $80M

$169,500 plus 0.165% over $60M

$180,800 plus 0.176% over $60M

$192,100 plus 0.187% over $60M

$203,400 plus 0.198% over $60M

$226,000 plus 0.22% over $60M

$248,600 plus 0.242% over $60M

$271,200 plus 0.264% over $60M

$202,500 plus 0.15% over $80M

$216,000 plus 0.16% over $80M

$229,500 plus 0.17% over $80M

$243,000 plus 0.18% over $80M

$270,000 plus 0.20% over $80M

$297,000 plus 0.22% over $80M

$324,000 plus 0.24% over $80M

$233,250 plus 0.135% over $100M

$248,800 plus 0.144% over $100M

$264,350 plus 0.153% over $100M

$279,900 plus 0.162% over $100M

$311,000 plus 0.18% over $100M

$342,100 plus 0.198% over $100M

$373,200 plus 0.216% over $100M

$273,000 plus 0.128% over $130M

$291,200 plus 0.136% over $130M

$309,400 plus 0.145% over $130M

$327,600 plus 0.153% over $130M

$364,000 plus 0.17% over $130M

$400,400 plus 0.187% over $130M

$436,800 plus 0.204% over $130M

$311,250 plus 0.12% over $160M

$332,000 plus 0.128% over $160M

$352,750 plus 0.136% over $160M

$373,500 plus 0.144% over $160M

$415,000 plus 0.16% over $160M

$456,500 plus 0.176% over $160M

$498,000 plus 0.192% over $160M

$359,350 plus 0.113% over $200M

$383,200 plus 0.12% over $200M

$407,150 plus 0.128% over $200M

$431,100 plus 0.135% over $200M

$479,000 plus 0.15% over $200M

$526,900 plus 0.165% over $200M

$574,800 plus 0.18% over $200M

Less than < $1M

$80M to < $100M

$100M to < $130M $130M to < $160M $160M to < $200m > $200M

Step 1 - Refer to Fee Table 5.2 for Budget Range. Step 2 - Refer to Building Categories p40-53 for Fee Table 5.2 reference Step 3 - Refer to diagram opposite to anticipate billing at each phase. Step 4 - Refer to 4.5 â&#x20AC;&#x153;Project Designâ&#x20AC;? p29 for the number of attempts per feasibility estimate

Asset Sure Quantity Surveyors First Edition 2015

fee tables

Building Category

building categories

5.3 categories of buildings A building generally will fall into one of the categories on this list, according to its type and complexity. Buildings not listed in any of these categories belong in the category to which they most closely relate.

Asset Sure Quantity Surveyors First Edition 2015

building categories

Asset Sure Quantity Surveyors First Edition 2015

building categories

Asset Sure Quantity Surveyors First Edition 2015

category

building categories

Category 1 1.1 Warehouse (10 percent maximum office area, but not exceeding 600 sq. m) 1.2 Barn, Stable, Storage, Kennels, Shed 1.3 Parking Garage (free-standing) 1.4 Shopping Centre, Large Mercantile Store, Factory (excluding tenant fit-out) 1.5 Carpark

Asset Sure Quantity Surveyors First Edition 2015

building categories Category 2 2.1 General Purpose Office Building 2.2 Government Facility such as a Military Base and Yard, Aircraft Hangar 2.3 Resort and Camping Buildings, Park Amenities, Marina 2.4 Schools, Day Care Centres 2.5 Specialised Airport Facility, e.g., Security Control, Garbage Incinerator 2.6 Electronic Maintenance Building 2.7 Freight Handling Facility 2.8 Entertainment facility such as a Bowling Alley

Asset Sure Quantity Surveyors First Edition 2015

category

Asset Sure Quantity Surveyors First Edition 2015

building categories

Category 3 3.1 Multiple Housing, e.g.Srata Title, Co-operative and Rental Apartment Building 3.2 Institutional Residence, e.g., Dormitory, Parks, Bunkhouses 3.3 Motel, Motor Inn

44 Asset Sure Quantity Surveyors First Edition 2015

category

Asset Sure Quantity Surveyors First Edition 2015

building categories

building categories Category 4 4.1 Defined Purpose Office Building 4.2 Ambulance Station, Fire Station, Post Office 4.3 Restaurant, Bar, Lounge 4.4 Minimum Security Correctional Institution 4.5 Swimming Pool (indoor), Gymnasium, Covered Ice Rink 4.6 Sports and Fitness Facility, Recreational Building 4.7 Grandstand, Stadium, Arena 4.8 Convention Hall, Exhibition Building, Hotel 4.9 Manufacturing, Processing or Specialised Storage Plant, Postal Plant, Abattoir, Distillery 4.10 Club Building, Country Club, Community Centre, Golf Club House 4.11 Tenant Fit-out, Space Planning 4.12 Maintenance Building, Service Garage, Gas and Fuel Station, Car Dealership 4.13 Place of Worship, Monastery, Convent 4.14 Central Utility Plant 4.15 Junior and Senior High School 4.16 Bank, Stock Exchange

Asset Sure Quantity Surveyors First Edition 2015

category

Asset Sure Quantity Surveyors First Edition 2015

building categories

building categories Category 5 5.1 Terminal Building or Station, e.g., Air, Bus, Ferry, Rail 5.2 Police Station, Customs and Immigration Building 5.3 Cemetery Chapel, Mausoleum, Crematorium, Funeral Home, Undertaking Establishment 5.4 Concert Halls, Performing Arts Facilities, Theatre 5.5 City Hall, Town Hall, Chancery 5.6 Parliament Building, Treasury 5.7 Courthouse, Archives Building, Library 5.8 Medium Security and Multi-level Security Correctional Institution 5.9 Casinos and Gaming Facilities 5.10 Extended Care, Convalescent, Geriatrics Nursing Facility 5.11 Amusement Park Building, Zoo, Botanical Garden 5.12 University and College Teaching Buildings 5.13 Specialised Agricultural Building, e.g. Dairy Shed, Swine Operation, Poultry House

Asset Sure Quantity Surveyors First Edition 2015

category

Asset Sure Quantity Surveyors First Edition 2015

building categories

Category 6 6.1 Hospital, Chronic Care Facility, Psychiatric Facility, Medical Research Facility, Dental Building, Clinics e.g., Veterinary Health, Radiology 6.2 Communications Building, Radio or TV Facility 6.3 Art Gallery, Museum, Observatory, Planetarium, Aquarium 6.4 Science Building, Laboratory Building, Weather Station 6.5 Combined Flight Services/Passenger Services Building 6.6 Radar Building, Air Traffic Services School, Meteorological Services Building 6.7 Specialised Parks Building, e.g., Park Administration Building, Beach Change House and Washrooms, Amphitheatre, Park Warden Station, Commercial Kitchen 6.8 Official Government Residence, Consulate, Embassy, Custom Residence, Custom Swimming Pool

Asset Sure Quantity Surveyors First Edition 2015

category

Asset Sure Quantity Surveyors First Edition 2015

building categories

Asset Sure Quantity Surveyors First Edition 2015

category

Category 7

7.2 Decorative Work, Exhibition Display, Public Garden, Promenade, Fountain, Commemorative and Funeral Monument, Fortifications & Complicated Rock Walls

building categories

7.1 Emergency Operations Centre

7.3 Air Traffic Control Tower 7.4 Opera House 7.5 Critical Care Facility 7.6 Data Centre and Computer Centre 7.7 Maximum Security Correctional Institution

Asset Sure Quantity Surveyors First Edition 2015

building categories 5.4 The Advantages of BIM

Building Information Modeling (BIM) BIM is the digital representation of physical functional and cost characteristics of a facility. A BIM is a shared knowledge resource for information about a building forming a reliable basis for decisions during its design, preparation, build, and occupation life-cycles. BIM construction models have been succesfully achieved in residential, commercial and industrial construction projects

BIM in construction management Participants in the building process are constantly challenged to deliver successful projects despite tight budgets, limited manpower, accelerated schedules, and limited or conflicting information. The significant disciplines such as architectural and structural engineering designs should be well coordinated, as two things canâ&#x20AC;&#x2122;t take place at the same place and time. Building Information Modeling aids in collision detection at the initial stage, identifying the exact location of discrepancies. The BIM format also enables the integration and sharing of data between disciplines. Costs are far easier to control because the shared data between the designer (Architects), the cost engineers (Quantity Surveyors) and the builders (Project Managers) are common and translatable. To complete this integration it is advised that a CIM (Cost Information Model p4) and project management plan are also completed. The BIM concept can envisage virtual construction of a facility prior to its actual physical construction, in order to reduce uncertainty, improve safety, work out problems, and simulate and analyse potential impacts. Sub-contractors from every trade can input critical information into the model before beginning construction, with opportunities to pre-fabricate or pre-assemble some systems off-site. Waste can be minimised on-site and products delivered on a just-in-time basis rather than being stock-piled on-site.

Asset Sure Quantity Surveyors First Edition 2015

building categories

Quantities and shared properties of materials can be extracted easily. Scopes of work can be isolated and defined. Systems, assemblies and sequences can be shown in a relative scale with the entire facility or group of facilities. BIM also prevents errors by enabling conflict or ‘clash detection’ whereby the computer model visually highlights to the team where parts of the building (e.g. structural frame and building services pipes or ducts) may wrongly intersect.

Why Isn’t BIM Used More Often? BIM and CIM (p4) require more upfront planning to achieve. And on larger projects early contractor involvement may incur upfront costs. The cost of uniting the professionals at the early stages appears to be unecessary. However the benefits of this additional input far exceeds the costs.

Do You Want To Exceed All Common Forms Of Construction Efficiency? BIM & CIM can lead the way in cost and time savings. Results such as 20% faster construction times in Top End Architectural Homes & 37% Faster Times in Commercial Fit-out have been achieved. BIM and CIM (p4) are not just about sustainability, they are about efficiency and cost savings.

BIM and CIM also offer an incredible amount of certainty as to deadline and cost management. In many cases the additional cost savings achieved with BIM management can help enhance the property value and the return on investment.

Asset Sure Quantity Surveyors First Edition 2015

building categories 5.5 Functional Cost Analysis For functional cost analysis services described in section 2.11 (p24), the QS’s fee will be charged in accordance with Article 3 “Additional Hourly Charges” (p59).

5.7 Alteration Work All foregoing Fee Schedules will apply only to new work. The costs for projects involving alterations, renovations or heritage designated building may be subject to additional fees.

5.6 Multi-Building Projects On projects comprising two or more separate buildings in a complex, the foregoing Fee Schedule will apply to each building as if on separate projects.

5.8 Post Tender Services For post tender services described in section 2.12 (p25), the QS’s fee should be charged in accordance with section 4.1 “Hourly Charges” (p29).

5.9 Other Services Fees for other services should be negotiated, or charged in accordance with section 4.1 “Hourly Charges” (p29) and Article 3 “Additional Hourly Charges” (p59).

5.10 Fees for Mechanical, Electrical, FIRE Quantity Surveyors a. Mechanical PQS fees should be proportional to the value of the mechanical value of the construction budget. A fee proposal should be requested by the client b. Electrical PQS fees should be proportional to the value of the electrical value of the construction budget. A fee proposal should be requested by the client c. Fire PQS fees should be proportional to the value of the fire systems value of the construction budget. A fee proposal should be requested by the client

Asset Sure Quantity Surveyors First Edition 2015

5.11 Disbursements

• Travelling and living expenses • Long distance telephone calls, facsimile, electronic transmission or electronic storage costs • Photocopying and/or printing • Courier services • Any other agreed disbursements • Record storage and archiving costs.

5.12 Payment of Accounts, Penalties & Interest The QS’s fees will be paid weekly, monthly or at agreed milestones in direct proportion to the amount of work done, or as otherwise set out in the Terms of Trade (p65) as laid out in the Account Application Form “Application To Open Credit Account.” The QS’s account for fees and disbursements is due when presented. Accounts that are overdue may incur penalties. Accounts that are overdue by 30 days or more will be subject to interest charges as set out in the Terms of Trade.

5.13 Variations Variations often appear as a job progresses. The calculating and handling of variation details can be expidited better by using our Quantity Surveyors.

5.14 Cost Engineering When considering the different professionals involved in a construction project the role that the Quantity Surveyors play is that of the Cost Engineers. A regular occurrence on more complex jobs is the need to re-engineer the specification because the current design elements place the project over the allowable budget. This is sometimes called Cost Engineering. If this happens large delays and re-design work will become costly. It can even destroy pre-sales and put at jeopardy the funding necessary to start the project. To avoid the design not meeting budget the Quantity Surveyor should be engaged as early as possible to work alongside the Architects and builders. By involving Quantity Surveyors earlier in the process this expensive procedure can be greatly mitigated and even avoided.

Asset Sure Quantity Surveyors First Edition 2015

building categories

Disbursements normally include, but are not limited to, the following, and should be charged at cost plus an allowance for overheads, or as otherwise set out in Article 2.5 of the Form of Agreement.

client responsibilities

6.0 CLIENT RESPONSIBILITIES 6.1 Recommended REQUEST FormatS If you are an Architect, Developer or Project Manager the following information should be provided. When requesting proposals, the following information should be provided to ASQS for the submission of our proposals.

Recommended Format 1. Heading: i.e. Request for Expressions of Interest for Professional Quantity Surveying and Cost Consulting Services. 2. The name of the project and its location. 3. A brief description of the project and the scope of quantity surveying services required. i.e. Consultant services to establish project budget and cost control during design and construction for new Commercial Building. 4. The name of your organisation. 5. Contact: name, address, phone, fax, e-mail and/or dropbox.

The PQS may also • Review the documents as issued for tender • Review and price accordingly all addenda during the tender period • Prepare a written post tender analysis of the bids received, and; • Prepare a functional cost analysis

Larger Proposals When requesting proposals for larger work the following information should be provided to us: 1. Heading: i.e. Request for Proposals for Professional Quantity Surveying and Cost Consulting Services. 2. The name of the project and its location. 3. As detailed a description of the project as is possible, including, i.e. New 10,000m2 four storey multi-tenant office building or Renovations and Alterations to existing 25,000m2 Building. 4. As detailed a breakdown of the project budget as possible. 5. The project client/sponsor. 6. The number of copies required of the proposal and the time, date and location for receipt of proposals. 7. The requirements of the project to QS. i.e. ASQS will provide written elemental cost estimates in accordance with the current elemental format/s, at the following stages of project development (see 8 below). 8. An indication of desired options; • Feasibility Study - Class A Estimate(s) - 2.1 (p14). • Functional Program - Class A Estimate(s) - 2.2 (p15). • Schematic Design - Class B Estimate(s) - 2.3 (p16). • Design Development - Class C Estimate - 2.4 (p18) • 50%-66% Contract Documents - Class D Estimate - (p20). • Pre-Tender Contract Documents - Class E Estimate - (p22).

Asset Sure Quantity Surveyors First Edition 2015

form of agreement form of agreement

7.0 recommended Standard form of agreement article 1.0 THE CLIENTâ&#x20AC;&#x2122;S RESPONSIBILITIES The client will provide the information required by the QS to perform his services. Such information will be provided in sufficient time for the QS to meet any scheduled date for the completion of his work. Any and all changes to the information will be forwarded to the QS. The client agrees that the QS will be entitled to rely upon the accuracy and correctness of the documentation provided and any additional work required due to inaccuracies in the documentation will be paid for at the rates set out in Article 4.1 (p29). The client will pay to the QS, in addition to the undernoted fees and hourly rates, all applicable Value Added Taxes (GST), which are excluded from all undernoted fees and hourly rates. The client will pay to the PQS a fee for the services specified in their request 6.0 in accordance with the following terms.

ARTICLE 2.0 VARIATION OF FEE 2.1 If, after the QS has commenced the services described in Article 6.0 of this agreement the construction budget is revised to a sum which is 10% or more above the approved budget, the PQS will be paid an additional fee based on the time spent. The agreed rates will be as noted in Section 7, Article 4.0.

ARTICLE 3.0 Additional hourly CHARGES 3.1 For additional services requested on the project but not identified in Article 6.0, the following rates will be charged: Senior Quantity Surveyor

$ 180

per hour/day

Senior Quantity Surveyor performing

$ 350

per hour/day

Quantity Surveyor

$ 180

per hour/day

Intermediate Quantity Surveyor

$ 170

per hour/day

Junior Quantity Surveyor

$ 140

per hour/day

$ 85

per hour/day

other work

Technical Assistant

Additional Charges All charges may change without notification please request current rates

Asset Sure Quantity Surveyors First Edition 2015

form of agreement

ARTICLE 4.0 PAYMENT OF ACCOUNTS & INTEREST 4.1 The QS’s fees will be paid in compliance with the contractural arrangements or the Terms and Conditions of Trade as laid our in our ‘Application To Open Credit Account’ p65. Where payment terms are not complied with, ASQS reserves the right to charge interest and penalties on the outstanding balance as laid out in the terms.

Article 5.0 Copyright 5.1 Payment of the QS’s fees gives the client the right to use, for their intended purpose only, the documents prepared by ASQS Ltd as instruments of service. The copyright and ownership of these instruments of service remains with ASQS and may not be used for any other project, or sold, or offered for sale (or as part of a sale of property) by the client, unless the ASQS Ltd has given written consent accordingly. 5.2 Should the client purposely or inadvertently allow access to the copyright to internal unauthorised persons who then use the information without authorisation, the client indemnifies ASQS against unauthorised usage at the copyright material.

ARTICLE 7.0 TERMINATION 7.1 Either party may terminate this agreement at any time upon giving notice in writing at least thirty days prior to the date of termination. In the event of such termination, ASQS Ltd will be paid for its services to the date of termination and for the work that is required to finalise affairs.

ARTICLE 6.0 OWNERSHIP OF DOCUMENTS 6.1 All estimates, budgets, reports, and similar documents prepared by ASQS will remain the property of the ASQS. The client will have access to all documents and worksheets related to the project and they will be made available upon request. Should copies be required, they will be prepared by ASQS. The cost of research or reproduction will be borne by the client. 6.2 All documentation provided to the ASQS in the provision of services will remain in the hands of the QS. The QS acknowledges that this is for record only and ownership of the documents so provided does not transfer to the ASQS.

ARTICLE 8.0 ARBITRATION & jurisdiction 8.1 All matters in dispute between the parties under this agreement will be submitted to arbitration by a single arbitrator in accordance with the terms. All arbitration shall be conducted in the court/offices of our local jurisdiction.

Asset Sure Quantity Surveyors First Edition 2015

Article 10.0 CONFIDENTIALITY

9.1 ASQS Ltd will, during the term of this agreement, provide, maintain and pay for the following insurance: Comprehensive General Liability Insurance in an amount not less than $2,000,000 inclusive per occurrence, insuring against bodily injury, personal injury and property damage. Professional Indemnity of the QS in the amount not less than $2,000,000. Refer to p63 for copy of Certificate of Insurance at date of publication.

10.1 ASQS will not divulge any information that has been given or acquired by on a confidential basis in the course of carrying out services as provided herein.

ARTICLE 11.0 COST ACCURACY 11.1 Pricing by the QS reflects probable construction costs obtainable in the location of the project as of the date of the report and is a determination of fair market value for the construction of this project and should not be taken as a prediction of low bid. 11.2 This pricing assumes competitive bidding for every portion of the construction work including all subcontractors as well as the general contractor, and assumes a minimum of five (5) general bidders. If fewer bids are received, the bid results can be expected to be higher.

11.3 It is recognised, however, that the QS does not have control over the cost of labour, materials or equipment, over a contractorâ&#x20AC;&#x2122;s methods of determining bid prices, or over competitive bidding, market or negotiation conditions. 11.4 Accordingly, the QS cannot and does not warrant or represent that bids or negotiated prices will not vary from this nor any subsequent estimate of construction cost or evaluation prepared by, or agreed to, by the ASQS Ltd.

ARTICLE 12.0 ADDRESSES FOR NOTICE 12.1 Notices in writing between the Client and the ASQS should be addressed as follows: To the Client at: To the QS at: Asset Sure Quantity Surveyors Ltd P.O. Box 12-295 Beckenham 8023 Christchurch info@asqs.co.nz

Asset Sure Quantity Surveyors First Edition 2015

form of agreement

ARTICLE 9.0 INSURANCE

What tasks does a Quantity surveyor do? Some people think that the role of a quantity surveyor can be a boring one. This is far from the truth. As a quantity surveyor gains experience his responsibilities and variety of work increase enormously. This brings about a large variety of work as can be seen in the list that follows. A quantity surveyor is specifically focused on the management of construction cost and value. No other professional has a firmer grasp on what all of the cost outcomes will become. This will include a QS performing all of, or parts of, or supporting roles in the following: • A estimator • A quantity surveyor • A cost engineer • A construction economist • A requisitions officer • A construction accountant • A contracts manager • A project manager • A construction valuer • A specification valuer • A chattels valuer • A disputes arbitrator • A professional witness • A tender manager • A technical advisor. Everyone wants to know what the costs of their project will be. And if the costs on a project escalate, how they can apportion the costs fairly. When composing a team of professionals to achieve a construction project there will always be the necessity to accurately define the cost implications of any decisions. Amenity, utility and service all come at a price. By including this particular multi-discipline professional in your project the economic certainty of your project improves dramatically.

As a footnote, if you are a person that likes to do highly detailed work that gains respect and pleases clients, I would encourage you to seek a career in Quantity Surveying. It is a difficult qualification to achieve but the job is highly rewarding and offers an interesting career path.

Asset Sure Quantity Surveyors First Edition 2015

QBE Insurance (International) Limited ACN 000 000 948 AMP Centre, 29 Customs Street West, PO Box 44, Auckland 1140 T: 64 9 366 9920 F: 64 9 366 9930 www.qbe.co.nz

Certificate of Insurance QBE Insurance (International) Ltd confirms insurance cover is in force as follows: Insured

Asset Sure Quantity Surveyors Limited

Policy Number

P000059486PUR

QBE Line

100%

Period of Insurance

22 September 2015 at 4pm to 30 July 2016 at 4pm

Risk Type

PURPL

Wording

PURPL Combined Liability PUR0311

Cover

Type

Limit

Territory

General Liability

NZD 5,000,000

Worldwide excluding North American Countries

Professional Indemnity

NZD 5,000,000

New Zealand

Cover is subject to the terms and conditions of the policy as issued. For a full description of the coverage please refer to the policy document. Issued and signed by QBE's authorised representative

Dated: 22 September 2015

Asset Sure Quantity Surveyors First Edition 2015

What Does It Takes To Become A Registered Quantity Surveyor? Profile of Aaron Dalton Aaron has been involved within the construction industry for over 29 years starting as a trade qualified builder and moving onto quantity surveying tendering and project management. He has been working within Christchurch since 2010 and has built up an invaluable amount of experience in job costing and job analysing in properties that require expertise in earthquake engineered costing. His background includes assessment work in residential and commercial projects. He also trains younger quantity surveyors and peer reviews the work of other building professionals. Its Aaron’s considerable building experience and skills as an advanced quantity surveyor that sets him apart. “When explaining to people what I do something I read a very long time ago comes to mind. Luke 14: 28-30 Suppose one of you wants to build a Tower. Won’t you first sit down and estimate the cost to see if you have enough money to complete it? For if you lay the foundation and are not able to finish it everyone who sees it will ridicule you.” “I signed up for a double major in a Bachelor of Construction, Construction Management and Quantity Surveying. During the four years of study, reduced by one year because of my time served as a Carpenter, Joiner and Cabinet Maker and my National Certificate in Carpentry, not only did I start to understand the management side of the construction industry but I started to realise the power and possibilities of technology in estimating and planning which is what still intrigues and inspires me today. A necessary part of proving the highest level of competency in Quantity Surveying is to surround yourself with fellow Quantity Surveyors who promote Professional ethics and work practices. Together we all commit to develop our expertise by continued professional training. We all put ourselves in a position to be peer reviewed by these other senior Quantity Surveyors at any given time. To be in this position you must have the necessary formal qualifications, be interviewed by the NZIQS panel, conduct two years as a NZIQS graduate member, then a further three years as a NZIQS member and undertake continued professional development every three years. This is mandatory and it is also why so few Registered Quantity Surveyors exist. In its own right a formal qualification doesn’t set you apart as a fully competent Quantity Surveyor, the competency comes from the qualifications combined with years of experience. I initially wanted to become a Project Manager so I sought after these types of jobs. Because I had the Quantity Surveying qualification and especially because I was a qualified Carpenter, I kept getting jobs as the Project Manager who did the Quantity Surveying. This made me responsible for ensuring the project was done, on time, on budget, without defects and safely. Quite a challenge for anyone, but a fortunate position to be in because I saw the results from the choices I had made both as a QS and as a PM. Another major factor that I encourage clients to realise is our level of professionalism carries a hefty insurance coverage. This amount of coverage is only given to true professionals and it will satisfy the bank and funding requirements you may need for lending” Yours faithfully

Aaron Dalton Aaron Dalton Reg. QS Senior Quantity Surveyor B.Const (Construction Management & Quantity Surveying), MNZIQS, LBP

Asset Sure Quantity Surveyors First Edition 2015

ASQS Limited - TERMS OF TRADE The following terms and conditions shall apply in respect of all work carried out by ASQS Limited, except to the extent otherwise agreed with you in writing. This is an application to attain ongoing credit with ASQS and the following terms apply for such work. SCOPE OF WORKS: We will provide you with a Bill of Quantities report for the purposes of quantifying the building, renovation or repair of your property. This can be used for establishing material quantities and labour required to repair your property. This will include one site inspection. ACCESS TO THE SITE: Where our work requires site visits, taking dimensions, reviewing the floor plan and existing construction details, you agree to provide ASQS Limited with access to the building and the building site during working hours being 8am to 5pm, Monday to Friday. FEE: We may supply a fee/quote as outlined in our LETTER OR EMAIL of offer under the heading ‘Quantity Surveying Estimate‘ which would be separate to the signing of this application. If the engagement specifies a fixed fee we will charge up to the parameters of that fee for the agreed scope of works. Acceptance of the ‘Quantity Surveying Estimate’ will confirm our offer as accepted. Other work or work which falls outside a ‘Quantity Surveying Estimate’ as outlined above will be charged on an hourly rate basis following notification and acceptance by you. We will advise you as soon as reasonably practical if it becomes necessary for us to provide services outside the agreed scope, and where possible provide you with an estimate of the likely amount of the further costs. If no quotation is included or the scope is exceeded then our fee will be charged at the applicable per hour rate plus GST for our additional services. All services required in addition to those outlined or in the Scope of Works will be charged at $250.00 per hour plus GST. We also charge a 5% Job Management, Processing & Administration Charge on top of each invoice for internal services other than Quantity Surveying. Unless otherwise specified any quoted amount excludes: • • • • •

the time and cost of organizing or paying any external consultants. the time and cost of any formal negotiations/meetings with third parties. any additional unknown resources that could be required and which were not foreseen at the time of supplying the quotation. our fees are payable within 7 days of the date of the invoice. unless otherwise pre-arranged.

IMMEDIATE PAYMENT: All payments shall become due to in the event that a receiver is appointed over any of your assets or undertaking, a liquidator is appointed or you go into voluntary liquidation, you make or attempt to make an arrangement or composition with creditors, or you become insolvent within the meaning of the Insolvency Act 2006 or the Companies Act 1993, or commit any act of bankruptcy, or personal insolvency. You agree that you will not set off any amount against any invoice issued by ASQS Limited. If you dispute an invoice issued by ASQS Limited (in whole or in part) you must notify us of the dispute in writing before the due date for payment and you agree to pay the undisputed portion of the invoice on the original due date for payment. DEFAULT & CONSEQUENCES OF DEFAULT: If for any reason monies or fees are not paid on the due date for payment, then ASQS Limited reserves the right to withhold action and subsequently extended deadlines on further goods or services until the account is paid in full, and to charge interest and other costs for those delays. If you do not comply with ASQS Limited’s terms of payment, ASQS Limited reserves the right to cancel any outstanding goods or services in your name. Should a dispute arise between you and ASQS Limited, you waive the right to withhold any payments that are due. You must and shall make payment on time regardless of any pending actions or decisions. INTEREST AND OTHER COSTS: If payment is not made in full within 7 days of the date of the invoice, ASQS Ltd is entitled to charge you interest on the unpaid overdue balance from the due date for payment at the rate of 2% per month, compounding monthly on the unpaid balance owing on the first day of each month until payment in full is received. If you default in payment of any amount due, you agree to indemnify from and against all costs and disbursements including legal costs (on a solicitor and own client basis) and all costs of collection, and such sum shall become immediately due and payable in addition to the interest payable. JURISDICTION: All arbitration or legal action shall be conducted in the court/offices of our local jurisdiction. DUTY OF CARE: Draft reports will be issued for acceptance. Any need for corrections will be reasonably and swiftly dealt with by both parties. On acceptance of a ‘Job Completion Acknowledgement’ form from the client, transfer of rights for the report/s occurs. Our duty of care is to you and not to any other person. Before any other person may rely on our report or findings, we must expressly agree to this. Our Services may or may not be undertaken using a Quantity Surveyor who has Quantity Surveying Qualifications (however all of our staff have construction industry experience and use a common system and all work is reviewed). LIABILITY: ASQS Limited’s liability is limited to the value of the services outlined in the Scope of Works. The maximum aggregate amount payable, whether in contract, tort or otherwise, in relation to claims, damages, liabilities, losses or expenses, shall be two times the fee (exclusive of GST and disbursements) with a maximum limit of $100,000.00. You agree that ASQS Limited bears no responsibility or liability as to any further works identified by inspections or investigations that go further than the services outlined in the Scope of Works. ASQS Limited shall not be liable for: Any loss or damage arising by reason of any delay in completion of the project; Any loss of profits; or Any indirect or consequential loss of whatever nature. The provision of our services bears no responsibility or liability with the outcomes of negotiation between the property owner and another party. This condition also applies to a Territorial Authority or any other regulatory body. Once construction work is in progress we have no on-going liability or responsibility for structural variation required by engineers or the Territorial Authority, ability or lack of ability of any subsequent building contractor. GENERAL: These Terms apply to only the current engagement and may not apply to any future engagement, whether or not we send you another copy of them. We are entitled, in our sole discretion, to change these Terms from time to time, in which case we will send you amended Terms.These Terms are not perpetual and may be changed from time to time. Any such change will be notified with 1 x Months notice or may be supplied on request.