1. The Nigerian Institute of Quantity Surveyors PRICING TENDER DOCUMENT BASED ON BESMM4 By Dr. GANIYU AMUDA YUSUF (FNIQS, RQS) Department of Quantity Surveying Faculty of Environmental Sciences, University of Ilorin, Ilorin, Kwara State 2- Day National Workshop on the Relevance of BESMM4 in Total Cost Management of Construction works Date: 6 th – 7 th April, 2016 Venue: Barcelona Hotels, Wuse, Abuja

2. Again, making reference to the provision contained in clause 1.1 of the general rules of BESMM4 (pg 1), which states that: “Bills of quantities shall fully describe and accurately represent the quantity and quality of the work to be carried out. More detailed information than is required by the rules shall be given where necessary in order to define the precise nature and extent of the work required” PRICING TENDER DOCUMENT BASED ON BESMM4

3. Composition of a Bills of Quantities Pg.12:  Form of Tender;  Main Summary  Preliminaries:  Information & requirements  Pricing schedule  Measured Work (incorporating contractor designed portions)  Risk;  Provisional Sums (see paragraph 2.6.7, 2.91 & 2.11 pg 14,16,17)  Dayworks (provisional); and  Annexes PRICING TENDER DOCUMENT BASED ON BESMM4

4.  Bill items properly framed under the BESMM4 have standard inclusions automatically considered to be included which tendering contractors should take account of while estimating their rates.  These “deemed included items” requires estimators to be conversant with the rules of BESMM4 because the underestimation of deemed to be included items could lead to under-pricing, similarly, overestimation of ‘deemed to be included items’ could lead to overpricing of work items (Oforeh and Alufohai, 1998). PRICING TENDER DOCUMENT BASED ON BESMM4

5. For instance, section 1.6.6 under general rules (pg2) states that: “Unless otherwise stated in the bill or herein, the following shall be deemed to be included with all items”:  Labour and all costs in connection therewith  Materials, goods and all costs in connection therewith such as conveyance, delivery, unloading, storing, returning packing, handling, hoisting, lowering, etc.  Assembling, fitting and fixing materials and goods in position.  Plant and all costs in connection therewith.  Waste of materials  Square cutting  Establishment charges, overhead charges and profit.”  Consumable stores including jointing materials (but excluding gaskets and bolts and nuts and washers) PRICING TENDER DOCUMENT BASED ON BESMM4

6. IMPACT OF BESMM4 QUANTIFICATION RULES ON ESTIMATING VARIABLES Where ETC represent total project cost/price, q and r, the item quantities and rates respectively, and subscripts (i = 1, 2,……..,n (i.e. 1.1 -1.40 of BESMM4) denotes the items involved. The calculation of ETC depends on two main factors: Identification of the items, i and Estimation of the parameter values, q and r. However, the reliability of estimate generated by the above estimating model is dependent on: the reliability of each quantity; q The reliability of each rate value; r The number of items‘ involved.

7. IMPACT OF BESMM4 QUANTIFICATION RULES ON ESTIMATING VARIABLES

8.  Functional: - what purpose is the component serving?  Material:- what material or materials make up the component?  Location:- where in the building is the component located?  Installation:- what methods are used to install or construct the component?  Dimensional:- what are the physical dimensions of the component?  Quantitative: - how many of the components exist within the building, and how much of the material making up the component are used?  Qualitative: - what are the qualitative and performance properties of the component, including physical form, appearance, and capacity and so on. PRICING TENDER DOCUMENT BASED ON BESMM4

9. BENEFITS OF ADOPTING BESMM4 FOR TENDER BOQ:  Enables the clients and cost consultants to understand what the minimum requirements are when compiling bills of quantities  Establish basis for distribution of the cost risks between clients, consultants and contractors involved in a project  Aid the effectiveness of project control and contract administration.  Minimise the tendency of disputes arising from misinterpretation of measured items.  Establish realistic basis for comparison of tender documents  Aid in establishing a basis for more competitive tendering  The resulting unit rates can be used as comparative measures between different projects. PRICING TENDER DOCUMENT BASED ON BESMM4

10. STATUS OF BESMM4  The status of the BESMM4 is the same with other rules of measurement; as such it is not mandatory for QS to use it.  However, if an allegation of professional negligence is made against QS, a court is likely to take accounts of the contents of any relevant guidance note is likely to take account of the contents of any relevant guidance notes published by the NIQS in deciding whether or not the QS has acted with reasonable competence (RICS,1998, 2012).

11. THANK YOU for your kind attention