<p>Foreword xi</p> <p>Glossary xiii</p> <p>Code of estimating and tendering practice – principles and procedures xxv</p> <p><b>Section One Principles – the theory and background 1</b></p> <p><b>1 Introduction 3</b></p> <p>1.1 An imprecise science 3</p> <p>1.2 Data, information, and knowledge in estimating 4</p> <p>1.3 Experience, instinct, gut feel, intuition and bias 5</p> <p>1.4 Optimism bias 6</p> <p><b>2 The Fundamentals 7</b></p> <p>2.1 Tender and bid 7</p> <p>2.2 Pricing 7</p> <p>2.3 Profitability 8</p> <p>2.4 Types of tender 9</p> <p>2.5 Tender award 10</p> <p>2.6 The difference between procurement and tendering 10</p> <p>2.7 Methods of procurement 11</p> <p><b>3 Changes driving estimating practice 13</b></p> <p>3.1 Digitisation 13</p> <p>3.2 E-Tendering 14</p> <p>3.3 Legislation and taxation 14</p> <p>3.4 Bureaucracy 14</p> <p>3.5 Competition and winning work 14</p> <p>3.6 Specialisation 15</p> <p>3.7 New technologies and off-site production 15</p> <p>3.8 New methods of procurement 15</p> <p>3.9 Best value 15</p> <p><b>4 The bid process 17</b></p> <p>4.1 Work breakdown structure 17</p> <p>4.2 Underlying principles 18</p> <p><b>5 Health and safety 25</b></p> <p>5.1 Introduction 25</p> <p>5.2 Estimating the cost of health and safety 25</p> <p><b>6 The pre-qualification process 31</b></p> <p>6.1 Introduction 31</p> <p>6.2 Bidding for public sector projects 32</p> <p><b>7 Procurement, selection, contractual arrangements and legal issues 37</b></p> <p>7.1 Methods of procurement 37</p> <p>7.2 Two-stage tendering 43</p> <p>7.3 Framework agreements 44</p> <p>7.4 Concession contracts 44</p> <p>7.5 Engineer Procure Construct (EPC) 46</p> <p>7.6 Prime contracting 46</p> <p>7.7 Early contractor involvement (ECI) 47</p> <p>7.8 Integrated Project Delivery (IPD) 47</p> <p>7.9 Selection processes 47</p> <p>7.10 Integrated design and construction 49</p> <p>7.11 E-procurement 49</p> <p>7.12 E-auctions 50</p> <p>7.13 Abnormally low tenders 50</p> <p><b>8 Preliminaries 51</b></p> <p>8.1 Site establishment 51</p> <p>8.2 Insurances, bonds and so on 58</p> <p>8.3 Site records 61</p> <p>8.4 Fees and charges 62</p> <p>8.5 Compliance 63</p> <p>8.6 Environmental management 65</p> <p>8.7 Wastewater treatment system 68</p> <p>8.8 Waste management 69</p> <p>8.9 Waste disposal, sorting and storage 71</p> <p>8.10 Setting out 74</p> <p>8.11 Control and protection 75</p> <p>8.12 Completion and post-completion requirements 76</p> <p>8.13 Contingencies 77</p> <p>8.14 Management and staff 78</p> <p><b>9 Temporary Works 81</b></p> <p>9.1 Introduction 81</p> <p>9.2 Temporary works management 83</p> <p>9.3 Temporary works co-ordinator (TWC) 83</p> <p>9.4 Temporary works supervisor 84</p> <p>9.5 Temporary works register 84</p> <p>9.6 Temporary works design brief 84</p> <p>9.7 Scaffolding 89</p> <p>9.8 Falsework 92</p> <p>9.9 Formwork 93</p> <p>9.10 Earthworks 94</p> <p>9.11 Temporary services 97</p> <p>9.12 Façade retention 98</p> <p>9.13 Structures – design and loading 99</p> <p>9.14 Plant foundations 100</p> <p>9.15 Protection on-site 100</p> <p>9.16 Traffic management 101</p> <p>9.17 Temporary access for vehicles and pedestrians 101</p> <p>9.18 Barriers for pedestrians and vehicles 101</p> <p>9.19 Haul roads 102</p> <p>9.20 Works associated with any ordnance uncovered 102</p> <p>9.21 Signage 102</p> <p>9.22 Protection of adjacent properties 102</p> <p><b>10 Cost-estimating techniques 103</b></p> <p>10.1 Approximate quantities 108</p> <p>10.2 Cost planning 110</p> <p><b>11 Private finance initiative/public–private partnerships/build, operate and transfer, and whole-life</b> <b>costing 113</b></p> <p><b>12 Risk management 115</b></p> <p>12.1 Background 115</p> <p>12.2 Risk analysis 118</p> <p>12.3 Cost estimating accuracy 118</p> <p><b>13 Logistics 121</b></p> <p>13.1 Materials logistics plan 122</p> <p>13.2 Materials management 124</p> <p>13.3 Personnel management and health and safety 124</p> <p>13.4 Plant, tools and equipment – maintenance and management 124</p> <p>13.5 Transportation 124</p> <p>13.6 Traffic management 127</p> <p><b>14 Resource and production planning 129</b></p> <p>14.1 Planning techniques 130</p> <p>14.2 Resource planning 130</p> <p>14.3 Time – its perception and impact on the estimating process 133</p> <p><b>15 Computer-aided cost estimating 135</b></p> <p><b>16 BIM and the estimating process 137</b></p> <p>16.1 Overview 137</p> <p>16.2 The challenges of using BIM in the estimating process 138</p> <p><b>Section Two Processes – the practice 139</b></p> <p><b>1 Consider and assess 141</b></p> <p>1.1 Receive preliminary enquiry 142</p> <p>1.2 Consider order backlog/new orders 143</p> <p>1.3 Decision to tender (bid or no bid) 143</p> <p>1.4 Project information, schedule and questionnaire 148</p> <p>1.5 Consider client and consultant team and project delivery availability 149</p> <p>1.6 Assessment criteria – lowest price/quality and so on 150</p> <p>1.7 The likely competition 151</p> <p><b>2 Information and time planning 153</b></p> <p>2.1 Works specialty/works contractor enquiries 154</p> <p>2.2 The bid team 157</p> <p>2.3 Produce bid timetable/strategy 158</p> <p>2.4 Examine documents – contract, design, bonds, warranties and insurance 160</p> <p>2.5 Site visit – utilities, ground conditions, adjacent properties and so on 162</p> <p>2.6 Method statement/logistics plan 164</p> <p><b>3 Contract terms and conditions 171</b></p> <p>3.1 Special employer requirements and modifications to standard clauses 173</p> <p><b>4 Resource planning and pricing 175</b></p> <p>4.1 Pricing the works 176</p> <p>4.2 Establish unit rates – labour and plant 178</p> <p>4.3 Establish unit rates – labour, materials and plant 180</p> <p>4.4 Labour cost issues – a summary 185</p> <p>4.5 Build-up unit rates 186</p> <p>4.6 Gang sizes for activities 189</p> <p>4.7 Allocation of costs 192</p> <p>4.8 All-in rates for plant and equipment 194</p> <p>4.9 Select materials and specialty contractors’ quotations 197</p> <p>4.10 Specialty contractor quotations 199</p> <p>4.11 Provisional sums – defined and undefined 200</p> <p>4.12 Incorporating provisional sums in an estimate 200</p> <p>4.13 Daywork 204</p> <p>4.14 Pricing the preliminaries 205</p> <p>4.15 Add allowances 206</p> <p><b>5 Prepare estimator’s report 211</b></p> <p><b>6 Examine and consider 215</b></p> <p>6.1 Examine preliminaries 216</p> <p>6.2 Requests for further information 216</p> <p>6.3 Examine method and tender programme 216</p> <p>6.4 Examine resource costs 217</p> <p>6.5 Consider the competition for the project in the market 217</p> <p>6.6 Consider cash flow and capital requirements for the project 217</p> <p><b>7 Bid assembly and adjudication 219</b></p> <p>7.1 Finalise the pricing 220</p> <p>7.2 Bid adjudication/final review 221</p> <p>7.3 Qualification of any special items of tender 222</p> <p><b>8 Pre-production planning and processes 225</b></p> <p>8.1 Develop a detailed method statement 226</p> <p>8.2 Develop production planning schedule 226</p> <p>8.3 Allocate resources 227</p> <p>8.4 Obtain licences and so on from local authority and utilities organisation 227</p> <p>8.5 Ordering of long lead-time materials, plant and equipment 228</p> <p>8.6 Request for further information from consultants and specialty contractors 229</p> <p>8.7 Pre-production schedule prior to work commencement 229</p> <p>8.8 Check conditions of contract award 229</p> <p><b>9 Site production 231</b></p> <p>9.1 Pricing change and variation orders 232</p> <p>9.2 Appointment of specialist contractors 232</p> <p>9.3 Estimating and pricing contractual claims 232</p> <p>9.4 Production of final account 233</p> <p>9.5 Cost–value reconciliation 234</p> <p>Bibliography and References 235</p> <p>Index 241</p>