1. Chartered Quantity Surveyors
Construction Cost Consultants / Economists
Project Managers
CQS Warsaw Presentation

2. CQS GROUP
Founded in 1998 by Matthew Creagh ( 22 years experience in both Ireland & the UK)
Staff of 20 Professionals within the group
Three Separate Divisions
Ireland
Head office in Mullingar, 15 professionals
Poland
Office in Krakow, 5 professionals
International
1 professional who is dedicated to our business development abroad

3. CQS Ireland Cathal Scott - Practice Manager
Chartered Quantity Surveying & Construction Cost Consultancy
All surveyors have gained degree qualification
Professional Accreditation from R.I.C.S and S.C.S
ISO 9001 Quality Assurance Accrediation

4. Services Offered: Pre-Contract
Option Appraisals
Design Team Co-Ordination
Bill of Quantities Production
Tender Document Production
Contractor Selection
Contractor Appointment
Site Selection
Feasibility Studies
Due Diligence
Value Engineering
Procurement Advice / Suitable Contracts
Environmental Consultancy
Detailed Cost Planning

5. Services Offered: Post-Contract
Contract Administration
Project Management
Construction Management
Cost Management
Cost Reports
Agreeing Variations
Site Inspections
Project Supervision
Dispute Resolution
Final Account Agreement

6. Specialist Services Life Cycle Costing Planned Maintenance Reports
Schedule of Dilapidations
Insurance Claims
Tax Planning
Capital Allowances
Advice on Tax Designated Areas
Funder's Representative
Risk Management
Bank Monitoring
Liquidation Advice / Corporate Recovery
Mergers & Acquisitions
Consortium Formation For Developers & Design teams

7. Project Sectors Residential Infrastructure Commercial
Hotel & Catering
Services Stations & Car Showrooms
Educational
Health Care
Infrastructure
Civil Engineering
Pharmaceutical
Government Bodies
Churches
Demolition & Dismantling

8. Clients - Developers Residential Developments Business Parks
Mixed Use Developments
Medical Centres
Nursing Homes / Retirement Villages

9. Clients - Commercial Hotels Restaurants Supermarkets Boutiques
Petrol Stations

10. Clients - Manufacturing
Factory Extensions
New Build Headquarters
Refurbishment / Remodelling

11. Clients - Government Agencies
Department of Education
Vocational Education Committee
County Councils
Office of Public Works
National Roads Authority

12. Clients -Major Contractors
Preparing Tender Bids
Advice on Public Sector Tenders
Contractual Advice

13. Consultants Collaborated With

14. Government Projects

15. High Rise Social Housing - London

16. High Rise Social Housing - London
Winterton House, East London ( 25 storey )
Contract Value of €11m
Client was London Borough tower of hamlets
Client's Quantity Surveyor
Dismantling, re-strengthen works, piling and forming 100No. Apartments.
Form of Contract was JCT 80 with Quantities

17. Commercial Projects

18. BBC Offices - London 1. BBC Offices London ( White City One )
2. Contract Value €25m
3. Total GIFA of new offices was 25,000 m2
4. Clients Cost Consultant
5. Fast Track office Fit Out
6. JCT Management Contract
7. Site of 1908 Olympics ( 100 years ago )

19. BBC Offices

20. Commercial Ganly’s Homevalue Hardware Store, Athlone
Contract Value of €9.5m
Client was Michael Ganly
Clients Cost Consultant
RIAI contract (with quantities)
New Hardware & Associated Stores 10,000 m2

21. Heathrow Airport Heathrow Airport, Engine x-ray building
Contract Value €2.5m
Fast Track contract of works
Contract was JCT 80 with Design Supplements
Concrete bunker inside aircraft carrier. High radiation protection construction (e.g. 1m thick concrete walls etc). External & internal inbuilt cranes within structure

22. Civil Engineering

23. Civil Engineering Dundrum Shopping Centre, Dublin
Contract Value of €14m
Client was PSK Construction / John Sisk & Co
Contractors Cost Consultant
RIAI contract (with quantities)
Insitu Suspended Box Culvert & Stair Cores

24. Educational Projects

25. School - Primary Grange Educate Together Primary School, Mullingar
Contract Value €7m
Our Client was Western Building Systems
Project Cost Consultants and Project Managers
RIAI form of contract (without quantities)
Construction of new 16 classroom school, culvert and external works in 19 weeks

26. Health Care Projects

27. Nursing Home Thomond Hall Nursing Home (48 Bedroom), Ballymahon
Project Value of €2.53m
Our Client Sean Kelly Builders Ltd
Clients Project Cost Consultants
RIAI form of contract (with quantities)

28. Retirement Village
Thomond Hall Nursing Home (61 Housing Units), Ballymahon
Project Value of €7.6m
Our Client Sean Kelly Builders Ltd
Clients Project Cost Consultants
RIAI form of contract (with quantities)

29. Hotel Projects

30. Annebrook House Hotel Annebrook House Hotel, Mullingar
Project Value of € 20m
Our Client Vincent Dunne Development
Clients Project Cost Consultants, Project Managers & Procurement Managers
Construction of 36 bedrooms, Apartments, Function room, Bars & Restaurants

31. The Bush Hotel The Bush Hotel in Carrrick on Shannon
Contract Value of €3m
Our Client was The Bush Hotel
Clients Project Cost Consultants & Project Managers
RIAI form of contract (with quantities)
Construction of Two storey extension over existing Function Room

32. Infrastructure Projects

33. Luas Line Luas Light Rail Line, Dublin Contract Value €23m
Our Client was William Kenny & Sons
Contractors Project Cost Consultants
RIAI form of contract (with quantities)
Civil Works to Luas Line throughout Dublin city

34. Luas Line

35. Street Reconstruction
Haggard St. Reconstruction, Trim, Co Meath
Contract Value €1.2m
The Client Trim Town Council
Contractors Project Cost Consultants
Civil Engineering form of contract
Complete Reconstruction of Street Landscape and New Services, Street Furniture & New Road Construction

36. Residential Projects

37. Market Point Market Point, Mullingar Contract Value of €45m
Our Client was FK Construction
Clients Project Cost Consultant, Project Managers & Procurement Managers
Investigated new methods of construction in order to reduce costs and life cycle costs and reduce programme
Construction of 274 Residential & 27 Commercial Units

38. Grand Canal Square Grand Canal Square, Docklands, Dublin
Contract Value of €70m
Our Client was Pierse Contracting
Contractors Pre-contract Cost Consultant
RIAI form of contract (without quantities)
Construction of Hotel & Apartments

39. Grand Canal Square

40. Knockanally Golf Village
Knockanally Golf Village, Knockanally, Co. Kildare
Contract Value €4m
Our Client was Tom Cuffe & Sons Ltd
Contractors Project Cost Consultants
RIAI form of contract (with Quantities)
New & Refurbished Houses & Apartments

41. Service Stations & Car Showroom Projects

42. Service Station & Restaurant
Applegreen New Service Stations & Restaurants (throughout Ireland & UK)
Contract Values each approx €1m
Our Client Petrogas Group Ltd
Clients Project Cost Consultants
Client agreement to complete approx 25 stations within Ireland & the UK
Locations: Ashbourne, Newbridge, Osberstown, Balbriggan, Kinsealy, Trim and many others

43. CQS Poland -The Company
CQS Polska Sp. z o.o.
First Irish Chartered Quantity Surveying & Construction Cost Consultancy Practice in Poland
Established in 2007
Matthew Creagh – Managing Director
Stanislaw Harezga – Director in Poland
Head Office Krakow
Staff of 5 Professionals

44. CQS Poland - Background
Extensive research into the economies & the construction industry in emerging markets in Europe in 2006
On a long term plan we choose Poland as its base for first overseas office
Long term investment
Own office was purchased
2.5m pln invested in the company
Established alliances with Universities & Krakow University of Technology to develop the Business & have access to highly qualified graduates
Looking at projects in Warsaw, Lodz, Wroclaw, Rzeszow and other cities with a view to establish regional offices

45. My experience Masters Degree in Construction Degree in Engineering
7 years Hochtief - Commercial Manager
1 year KPB Cracovia ( Main Contractor ) – Commercial Manager

46. Krakow New Build Apartments 9,870m2 including basement
( 181 No. units )
Krakow
€36m

47. Rzeszow

48. Rzeszow New Build Offices & Apartments
28,000m2 Offices & 8,000m2 Apartments
Rzeszow
€48m

49. Wroclaw New Build Offices 6,000m2 Offices &
6,000m2 Offices &
1,500m2 Basement Car Parking
Wroclaw
€10m

50. Wroclaw

51. Wroclaw

52. Wroclaw

53. Poland - An Overview

54. Regions - Voivodships

55. Comparing : Poland to Ireland about 5 times bigger

56. Poland has a population of 38 million
Comparing : Poland to Ireland has about 9 times more people

57. Higher Education in Poland
More than 5% of population in Poland are students

58. Growth of graduates between 2001 and 2007 is about 35%

59. GDP in Poland

60. GDP per capita in Poland
In Ireland which was on the second place in the world in 2007 GDP per capita is about 3 times higher

61. Economical growth in Poland in 2000 – 2008 (2008 forecast)

62. Unemployment in Poland
In 2009 unemployment in Poland will probably be less than in Ireland ( Taking Ireland as 8-9% and Poland as 7-8% )

63. Foreign Investment In Poland

64. Why Invest in Poland Size of Polish Market
There are many reasons why Poland is so attractive to investors:
Size of Polish Market
Location in Central Europe with Eastern Europe & Russia close by
Availability of low cost labour
Amount of skilled people & professional graduates
Perspectives for economic growth
Direct Grants – SEZ
Availability of funding through EU structural funds

65. Direct Foreign Investment in 2007 to new members of EU
Direct Foreign Investment in 2007 to new members of EU in mln Euros
Investment in Poland at €12bn was double that of the Czech Republic

66. Foreign direct investment in Poland
The inflow of capital between 2002 and 2008 (in mln Euro)

67. Foreign direct investment in Poland in 2007:  geographical structure of inflow

68. European funds in Poland in the years 2007 – 2013
Over €67 bln of EU funds in

69. Special Economic Zones

70. In a SEZ the entrepreneur can obtain the following privileges;
tax exemption (CIT or PIT) 
fully prepared for development for the investor at a competitive price
free assistance in dealing with formalities in connection with the investment
exemption from property tax (on the territory of certain Gminas)

71. The level of regional aid available to the entrepreneur depends on ;
location of the investment ( each SEZ is administrated separately )
level of capital input, or
costs of employing new workers
size of the business seeking tax relief

72. Special Economic Zones in Poland
Location of the 14 No. of Special Economic Zones throughout Poland
 1 No. per Voivodship - the brightest
 10 No. and more per Voivodship - the darkest

73. Sectors of building in Poland

74. Type of construction sectors ;
Residential buildings
Non-residential buildings
Civil engineering works

75. Value of construction in mln pln, 2005-2007

76. Value of construction by type of construction ( PLN m ), in Q1 2008 ( 11,840 mln PLN in Q1 2008 )

77. Residential Construction in 2005 – Q1 2008

78. Non-residential buildings
Hotels and similar buildings
Office buildings
Wholesale and retail trade buildings
Traffic and communication buildings
Industrial buildings and warehouses
Public entertainment, education, hospital or institutional care buildings
Other non residential buildings

79. Hotels and similar buildings Value of construction by type of construction ( PLN m), Q1-Q to Q1-Q3 2007

80. Office Buildings Value of construction by type of construction ( PLN m), Q1-Q3 2005 to Q1-Q3 2007

81. Warehouses / Logistic Parks Growth of the Warehouses/ Logistic Parks from 1,2 mln of sq m in 2004 to 4,1 mln of sq m divided by sectors

82. Civil Engineering Works
Highways, streets and roads
Railways
Airfield runways
Bridges, elevated highways, tunnels, and subways
Harbors, waterways, dams and other waterworks
Long-distance pipelines, communication and electricity lines
Local pipelines and cables (including water treatment works
Sport and recreations constructions

83. Highways, streets and roads Programme of Road Development for 2008 – 2012; in total 121 bln PLN

84. Implementation of Programme of Road Development for 2008 - 2012 should result in ;
632 km of new motorways
473 km of motorways in Public Private Partnership ( additional funding )
1,980 km of expressways
54 No. ring roads; total length about 428 km
Reinforcement and reconstruction of national roads; total length 1,560 km

85. Sport and recreational constructions Euro 2012 Football Cup:
Warszawa – new stadium
Poznań – new stadium
Wrocław – new stadium
Gdańsk – new stadium
Kraków – reserve – modernization and development of existing stadium
Chorzów – reserve - modernization and development of existing stadium

86. Construction Process

87. Construction Process – legal regulations
The construction process in Poland is regulated mainly in:
the Construction Law of 7 July 1994 with more than sixty decrees of proper Minister,
the Master Planning Law of 27 March 2003,
the Civil Code of 23 April 1964,
the Administration Proceeding Code of 14 June 1960,
the Public Procurement Law of 29 January 2004,
the Author’s Right Law of 4 February 1994.

88. The construction process in general ;
Site purchase
Local master plan or Planning Decisions
Design for Building Permit
Obtaining a Building Permit
Technical Supervision, Designer Supervision
Construction Design
Construction work Contract / FIDIC
Occupancy Certificate

89. Local master plan or Planning Decisions
In accordance with the Master Planning Law a local master plan should describe ;
the function of the land
general public areas requirements
planning ratios and planning conditions, including all limitations required by law
If there is no master plan for the area where the investment is planned (which happens frequently at present), Planning Decisions must be obtained

90. Design for Building Permit
Building permit design is attached to the building permit application
This design, drawn up by a licensed professional, is to be approved in the building permit decision
The detailed requirements for Design for Building Permit are presented in the separate decree to the Construction Law (dated 3rd July 2003)

91. Technical Supervision
On the basis of the Building Permit the Client is obliged to employ Technical Supervisors who:
Represent the Client on Construction Site
Confirming correctness of construction works with the Design for Building Permit
Confirming quality of Construction works

92. Designer Supervision
On the basis of the Building Permit the Client is obliged to employ design supervisors for the construction period ;
Confirming correctness of construction works with the Design for Building Permit
Presenting opinion about changes suggested by Technical Supervisor or Site Manager

93. Construction work Contract
The parties are generally allowed to shape the contract freely
In the construction work contract, the investor and the contractor agree upon the detailed scope of work to be performed by the contractor and the work to be subcontracted
Contractor must not execute an agreement with a subcontractor without investor’s consent
Investor and the contractor are jointly and severally liable for paying the subcontractor
No standard form of contract in Poland
To adopt / amend existing standard contracts from other countries ( RIAI Contracts )
It is possible to use FIDIC model contracts in Poland

94. FIDIC the French International Federation of Engineers
In 1999 FIDIC published four standard forms of contracts:
Conditions of Contract for Construction
for building and engineering works designed by the Employer
Conditions of Contract for Plant and Design-Build
for electrical and mechanical works and for building and engineering works designed by the Contractor
Conditions of Contract for EPC/Turnkey Projects
for Engineering, Procurement and Construction (EPC): providing a fully-equipped facility, ready for operation
Short form of Contract
for building or engineering works of relatively small capital value

95. CQS International Division of the CQS Group
Established in 2007 to target projects outside Ireland
Matthew Creagh is the Divisional Manager
Based in Mullingar, Ireland

96. How can we offer such a Service ?
CQS have established Professional alliances in various countries with similar Professionals and work closely with them to ensure that the Client receives correct advice

97. Network with local professionals
It is essential to establish professional relationships with local Professionals to establish :
Methods of procurement to be used
Contractors to use / not to use
Local Politics

98. The Project
When a Project is presented to us it is reviewed as follows:
Clients requirements are reviewed and analysed using the requirement matrix
Why establish in this Country / location
Is there a market for the end product
Is the project a Commercial Development or for the clients own end use

99. Consider External Factors
What is the county’s economy like
likely to get state funding / tax relief or benefits from the state agencies
Is there Political stability / change of Government imminent
Changes in the law or taxes which effect this project immanent
Is it stable or on an upward / downward trend
What is the construction industry like
Is there a shortage of labour or an abundance of cheap skilled labour
Is there a ready supply of materials
Is materials expensive / cheap

100. Employ a Local Design Team
They may not even be the Lead Consultant however they may be beneficial in the following ways:
Knowing particular details regarding ground conditions / existing structures
Be familiar with planning issues and the personalities involved
Types of Construction to use, a particular material may be suitable but in short supply

101. Get client’s own Designers / Project Managers involved
Client may need to have a watching brief from their own designers to liaise between them and the local designers
To ensure the Design programme is being met
To ensure their exact requirements are included in the design
To ensure that they are constantly updated on planning issues and all financial issues to enable them to work around delays / financial problems
That the Client is not being fed information on a need to know basis

102. Establish early Cost Control Measures
An initial Budget must be established for the entire project
This may be very basic however it should include:
Land Purchase
Legal Fees & Planning Fees
Other Contributions Required ( local amenities )
Construction Costs
Construction Inflation
Design Team Fees
Financing
Clients Internal Costs
Sales / Advertising Costs

103. Projects Undertaken

104. CQS International - Clients
Bosicor Oil Pakistan Limited

105. CANADA
Hotel & Residential Development / Ski Resort, Newfoundland, Canada
Contract Value of $ 40m
Our Client was FK Developments & Pacrim Group
Client Project Cost Consultant and Feasibility Adviser
Construction of Hotel, basement, Apartments, Chalets and external works under a mountain

106. WALES Dismantling of Oil Refinery, Wales Contract Value of £17m
Our Client was Bosicor Oil Pakistan Ltd
Client Project Cost Consultant
Bar coding, dismantling, packaging and shipping to Pakistan for re-erection by others of a disused Oil Refinery in Wales

107. Oil Refinery in Wales

112. CQS International Projects CQS have Secured Projects CQS are Reviewing
Hotel & Residential Development – Canada
Oil Refinery – Wales
Oil Refinery – Italy
Projects CQS are Reviewing
Residential Development – Bulgaria
Oil Refinery – Cyprus
Petrol Stations – UK

113. In Summary
When conducting business in areas that are unfamiliar some key points to be considered are:
Establish Local Network of Professionals
Know the Local Politics
Know local planning constraints
Don’t assume that the local professionals can grasp your requirements as quickly as your own professionals would
The end product is what is important and often the design and procurement of the product may vary to what we are familiar with, however it is the control and monitoring measures that are implemented that are important

115. CQS Target Market Developers
Large Consultancies, Architects, Engineering Practices & Project Management
Government Agencies
Contractors
Manufacturing Companies

116. FOR CQS PRESENTATION PLEASE VISIT -
Do widzenia!