Terminologies associated with quantity surveying practice.

1. COST PLAN
Cost planning (ehow.com) is a key due diligence step in preparing for a construction project. Cost planning tells a property owner how much a proposed project will cost. Additionally, cost planning will tell when the expected expenses will most likely occur. This information is critical for obtaining project financing and for determining whether a project can be profitable. Without cost planning, property owners would enter blindly into construction projects and possibly into insolvency.

Cost planning typically involves two features. The first is an overall budget for the project. This is the total amount that the project is expected to cost. This amount is based on the current project scope and design and can be determined through various types of estimates. The second feature of cost planning is the allocation of costs over time. This involves predicting when along the project schedule costs will actually be incurred and paid.


Furthermore, cost plan (construction contract, huges; page 92) explains cost plan as a reaction to what is being produced by the designer i.e. the architect, services engineer, and structural engineer and so on. This are usually based on client needs and briefs, whatever the designer produces has a cost attached to it, so in these early stage cost planning can be said to be reactive.
Conclusively, according to (guidance notes on cost management in engineering construction projects) it briefly defined it as a cost model or plan of a proposed or anticipated expenditure phased over scheduled time periods.

2. CASH FLOW
Cash flow (guidance notes on cost management in engineering construction projects) stated it as projected cash balanced over a stated time period based in the net flow of actual or anticipated payments and receipts.
CASH FLOW (http://bivashsarker.hubpages.com/hub/Project-Management-Practices)deals with cash inflow by which money comes into the project and cash outflow by which money goes out of the project. Cash inflows are possible from 3 main areas.
• Receipts from client as per contract and works executed.
• Receipts from sale of good (mainly scrap).
• Funds raised in form of loans from financial institutions or other approved sources as working capital. Target shall be to keep funds raised in form of loans at minimum. Let us find out factors which contribute to a cash inflows and cash outflows in a project so that all persons concerned can at least attempt to keep the target. at any point of time, a project should have following condition to consider it as ‘project with healthy cashflow’.funds arranged as loans ≥ (cash out flows - receipts from client). Receipt from sale of goods has not been considered as its contribution towards cash inflow is meagre with respect to receipts from client. To keep 'fund arranged as loan' to minimum, 'receipts from client' should be on higher side and 'cash outflows' shall be on lower side at all times.
3. Financial Statements
Definition: Financial statements are a collection of reports about a project financial results and condition. They are useful for the following reasons:
• To determine the ability of a project to generate cash, and the sources and uses of that cash.
• To determine whether a project has the capability to pay back its debts.
• To track financial results on a trend line to spot any looming profitability issues.
• To derive financial ratios from the statements that can indicate the condition of the project.
• To investigate the details of certain business transactions, as outlined in the disclosures that accompany the statements.
The standard contents of a set of financial statements are:
• Balance sheet. Shows the entity's assets, liabilities, and stockholders' equity as of the report date.
• Income statement. Shows the results of the entity's operations and financial activities for the reporting period.
• Statement of cash flows. Shows changes in the entity's cash flows during the reporting period.
• Supplementary notes. Includes explanations of various activities, additional detail on some accounts,
4. Amortization
Amortization is payments of debt in equal instalments of principal and interest, rather than interest only payments. The deduction of capital expenses over a specific period of time (usually over the asset's life). More specifically, this method measures the consumption of the value of intangible assets, such as a patent or a copyright.
5. Repayment
The act of paying back money previously borrowed from a lender. Repayment usually takes the form of periodic payments that normally include part principal plus interest in each payment. The other common method of repayment is a lump sum with interest at maturity. Failure to keep up with repayments of debt can force you to declare bankruptcy and severely affect your credit rating. Before declaring bankruptcy, most people should explore every alternative such as earning additional income, refinancing and negotiating with creditors.
6. Fluctuations
It entails change in price of goods, materials and personnel variation during the contract period. Price guides are provided which take many month to prepare, published ahead of the year. So in periods of high inflation they can be very quickly out of date. So there is chance for price changes even at normal condition.
Price fluctuation
Time taken for award of contract
Delay in awarding contract causes many problems in the implementation stage in the following matter. Price fluctuation becomes very high creating lot of uncertainty, as the base index is generally calculated 28 days before the bid submission when there is a delay in awarding the contract on the first month after commencements of the work there is a fluctuation of price accounted.

Material
When there is sudden change in obtaining the materials; the cost of the project goes up.
Labour
Availability of skill trained Labour is a problem for the construction industry in Sri Lanka ,hence the contractor had to mobilize skill labour from faraway places & pay high salaries provide other facilities like lodging, food … etc which increase the Labour rate.
7. Preliminary
This is work deemed to be done before any building construction can proceed. They are items that facilitate progress of work on site. Construction projects are priced using a bill of quantities--a detailed description of the items needed to finish the product and their costs. The preliminaries of a bill of quantities are the section that provides a description of the project, the contractor's general obligations, general facilities, and setup and running costs. In the United States, the term "site overheads" is used instead of "preliminaries." In a bill of quantities, the preliminary costs are generally divided among initial cots, recurring cost and final costs. Initial and final costs are one-off expenses, while recurring costs continue throughout the life of the project. If work is disrupted for reasons out of the contractor's control, recurring costs are often used to calculate compensation for the extension on the contract period.
8. Contingencies
Contingency allowance is provided in construction contracts to allow for miscellaneous unforeseen costs which cannot be classified under any other head, but is necessary for successful completion of the project. In construction contracts usually 3 to 5 percent of contract value is provided as contingency allowance. An example of such unforeseen cost is price escalation. If there is a saving in the contingency allowance, then this amount can be used for execution of extra items of work. That means when variation claims are raised, it is common that the employer will cancel the contingency allowance against variation claims, and pay the contractor.
9. Provisional sum
According to section 10.3 of the standard method of measurement 3(BESMM3) it explains provisional sum for defined work as the a sum provided for work which is not completely designed but for which the following information shall be provided
a) The nature and construction of work
b) A statement of how and where the work is fixed to the building and what other work is fixed thereto
c) A quantity or quantities which indicate the scope and extent of the work
d) Any specific limitation and the identified in section A35.
Prior to the above explanation the contractor will be deemed to make any allowance in programming, planning and pricing preliminaries
While for undefined work the listed information are not provided and no allowance is deemed to be provided by the contractor
Furthermore, they are used when work has not been finalized or for cost which is unknown, at the time the bills are prepared they may be simply be contingency sums.
10. Prime cost
Prime cost (PC) sums are used for work under the building contract which is carried out under the direction of the main contractor by certain other persons, namely, norminated sub-contractor, nominated suppliers and statutory authorities.
Prime cost generally is an allowance for articles to be provided by the contractor, of which price cannot be fixed at the time of tender. It refers only to the supply of materials and not to the carrying out of works. A specific amount will be earmarked in the BOQ for execution of such items. Examples are fixtures and finishing works like ceramic tiles, sanitary fittings, water supply fittings etc. that can be decided only at the time of execution. Contractor is not entitled for any profit on prime cost items, but sometimes the cost of carriage will be provided if specified in contract. The FIDIC Conditions of Contract do not mention about prime cost.

Definition of Prime cost by ICE (Institution of Civil Engineers, Great Britain)
"Prime Cost (PC) Item" means an item in the Contract which contains (either wholly or in part) a sum referred to as Prime Cost (PC) which will be used for the execution of work or the supply of goods materials or services for the Works.

11.Nominated sub-contractor
(JCT) he is a trader, specialist appointed by the client; therefore there is only agreement between the parties as regard to payments and other conditions. In theory, at least, the appointment of a domestic contractor is default by the client or her consultants.
Conclusively, a Nominated subcontractor is chosen by the architect, client or engineer to carry out certain aspects of the work. They are appointed on the expenditure of a provisional sum or prime cost sum included in the contract bills. The nominated subcontractor enters into a contract with the main contractor but there may be a collateral warranty between the nominated subcontractor and the client. The main contractor has no responsibility to carry our work that is intended to be carried out by a nominated subcontractor. Nomination is not possible under the JCT 2005 Standard Building Contracts or the Engineering and Construction Contract. The main contractor is required to provide the general attendances for the subcontractor; any special attendances are the subcontractors’ responsibility. The main contractor will provide a profit margin for such attendance. A nominated sub-contractor is one that is selected by the client to carry out an element of the works. Nominated sub-contractors are imposed upon the main contractor after the main contractor has been appointed. The mechanism for nominating is an instruction in relation to a prime cost sum to which a main contractor is entitled to add its mark up and attendance costs. It allows the client to have direct separate negotiations with major suppliers of goods or services and feed their appointment and design input into the contract after works by the main contractor have commenced.
"Nominated Sub-contractor" means any merchant tradesman specialist or other person firm or company nominated in accordance with the Contract to be employed by the Contractor for the execution of work or supply of goods materials or services for which a Prime Cost has been inserted in the Contract or ordered by the Engineer to be employed by the Contractor to execute work or supply goods materials or services under a Provisional Sum.(ICE Conditions of Contract Definition)


12.Domestic sub-contractor
A Domestic Sub-contractor is selected and engaged directly by the main contractor to carry out a particular trade; this will mainly include standard trades such as bricklayers, roofers, ground workers, plumbers, electrical and plasterers. They may be labour only or supply and fix. In all cases they must be approved by the architect under JCT 2005 Standard Building Contracts. The architect has the full authority to reject any subcontractor requested by the contractor. The contract does not recognise the main contractors own subcontractors, any work carried out by these is taken as if it were carried out by the main contractor.

In the word there is a bond between him and the main contractor as regard to payment and other conditions. A domestic sub-contractor is any sub-contractor, other than a nominated-sub contractor, that the main contractor sub-contracts to carry out part of the works. The work of the sub-contractor is the responsibility of the main contractor as far as the contract between the main contractor and the client is concerned.
A sub-contractor can be considered domestic if:
• They were freely selected by the contractor.
13. Variations
JCT80; the basic definition includes any ‘alteration or modification of the design, quality or quantity of the work as shown on the contract drawings and described by or referred to in the contract bills.; the clauses clarifies this further by stating that such alteration or modification includes additions, omission or substitution i.e. variation to completed work item. These also go to the material and goods used for work.
ICE 6;it is the addition ,omission ,substitution ,alteration ,changes in quality, form, character, kind, position, dimension, level or line, and changes in any specific sequence, method or timing of construction .this list, which contain a number of synonyms, means in effect the engineer may issue variation about almost anything. The clause also makes it clear also that a variation order need not be issued merely foe the purposes of altering quantities in the bills, this is because the bills are not intended as a full description of the work, but only as a mechanism for selecting the contractor.
Variations to the scope of construction works are necessary because no project is impeccable and changes are required to meet unforeseen circumstances or changed requirements. Thus, variation can be in the form of additions, omissions or substitutions.
14. Suppliers
Suppliers are responsible in providing construction companies with the needed materials to establish their projects. Suppliers usually serve as middleman. These professionals act as liaison between the builders and the manufacturers. Like any other construction jobs, it is important that you will supply the suppliers on the right time. Most of the construction projects available out there should be done in a specific period of time. Any delay in the delivery of the supplies might cause problems between the project owner and the other construction professionals.
15.Preliminary
Day work. Day work is the working hours of trader, workers, and labours in a day. This is the work range achieved in a day by a particular worker. It is used to arrive at a prime cost day work rate. The latter are a guide for employers showing them how to work out the real cost of employment so that it can be factored into quotes for work.
They show the workings out for these calculations based on application of the current working rule agreement and pay rates. However, they do not cover other costs such as workers travel or accommodation, and do not cover any of the non employment costs that employers need to factor into quotes for work such as administration, supervision, materials etc.
Time related work. It is work done for a particular item of work of which it is to be considered as proportional to the length of time taken to execute the work.
Value related work.It is the work as related to the intended method of executing the works, the costs of which are not to be considered as proportional to the quantities of the other items and for which he has not allowed in the rates and price for the other items
Builders work. Builder's Work is usually an ancillary item connected with other work, for providing MINOR building work; for example a description "builder's work in connection with window installation" might include forming an opening in a wall, fixing a lintel, and making good the wall faces after installation of the window unit.
In respect of service building example, if a building is required I would expect it to be within the performance specification for the design and build project. If a building is not specified, the D&B bidder/contractor might offer entirely weather proof equipment.
Also in mechanical/electrical services builder works may include chiselling the wall, making good of the surface and all element in the m section of the BESMM3.
Programme of work; Programmes of work which show the sequence of activities are common in the construction industry, and their importance is growing rapidly. Managers, engineers, quantity surveyors and site managers now need to be able to read and interpret programmes as much as construction drawings. But the role of programmes is still unclear.
16. Value added tax
VAT is a tax on consumer spending. It is collected by VAT-registered traders on their supplies of goods and services affected within the State, for consideration, to their customers.
17. Withholding tax
It is a tax that is withheld from income payments for building and construction activities and consulting services. The person required to withhold may be the service recipient in some cases and in other cases it will be the service provider. The status of the service recipient determines who is responsible for withholding the tax. The service recipient is the party who pays and the service provider is the party who receives payment for the building and construction activities or consulting services.

18.Materials on site.
These include all type of appropriate and deemed supplied goods or services that are pending for use on an incumbent construction process within the hoarded site vicinity. Clause 4.16.1.2 of the JCT Form requires the inclusion in the amount of an interim certificate of materials and goods delivered to the site for incorporation in the Works. In order to value them, the surveyor will need to be satisfied that the materials and goods are actually on the site and to ascertain approximately how much of each material or good there is. It is not necessary to know the exact quantities because by the time the next valuation is done, most or all of the materials will have been incorporated into finished work which will then be valued as such.

19.Material offsite
The JCT Form includes a provision in clauses 4.16.1.3 and 4.17for the value of materials and goods intended for the Works but not yet delivered to the site to be included where certain criteria have been met. These include all type of appropriate and deemed supplied goods or services that are pending for use on an incumbent construction process outside the hoarded site vicinity. This is at the discretion of the main contractor. The architect and the client are also aware of the location.

20. Progress of work.
This is a report of the millstones attainable by a main contractor for a given project. It includes photograph. This can be used to prepare a work in progress.
21. Architect instruction
Construction contracts generally give the contract administrator the power to issue instructions to the contractor. These instructions can be called ‘contract administrator’s instructions’ or ‘architect’s instructions’. We have used the terms ‘architect’ and ‘architect’s instruction’ below, but they could easily be replaced with ‘contract administrator’ and ‘contract administrator’s instruction’.
Broadly, Instructions may be given:
• To vary the works.
• To postpone the works.
• To remedy workmanship, goods or materials which are no in accordance with the contract.
• To sanction a variation made by the contractor.
• In relation to the expenditure of provisional sums.
• To open up work for inspection.
• To carry out tests.
• To exclude persons from the site.
22.Claims
Construction projects rarely run entirely smoothly: additional works may be requested by the employer or become necessary when things are "discovered" on site; delays may mean the building takes longer to complete; or it may cost more than the parties originally contracted for.
Common claims include:
• A contractor may have a claim against the employer relating to a delay or a change in the works.
• A professional consultant may have a claim against the employer for non-payment of fees or breach of copyright.
• The employer may have a claim against:
o the contractor for a delay to the works or a defect in the works; and/or
o The professional consultant for failing to properly design or supervise the works.
What the contractor may claim from the employer
A contractor may claim against the employer for more time and money (loss and expense) and for the cost of changes to the works (as variations or as a quantum meruit).
A claim for an extension of time to the completion date
• The parties usually agree a completion date in their contract. If not, the contractor should complete its works within a reasonable time.
• Standard form contracts usually allow for the completion date to be adjusted, to award the contractor an extension of time. The contractor should comply with the contract procedure.
• It is not always easy to work out what caused the delay and whose fault it was; sometimes there are competing causes of delay. If the contractor caused the delay, the employer may have a right to claim liquidated damages from the contractor.
A claim for loss and expense
• A contractor often claims loss and expense at the same time as an extension of time. It is the "money" side of a contractor's claim for delay and disruption (that is, a claim for the cost of inefficient working and employing more resources).
• Standard form contracts usually allow the contractor to claim for delayed or disrupted work. The contractor should comply with the contract procedure.
• A contractor may roll-up all the unattributed costs and claim them from the employer as loss and expense. If the claim does not break down the sum claimed between the contractor's various complaints, it is called a "global claim" or, sometimes, a "total cost" claim.
• Common heads of loss and expense claimed include:
o prolongation costs;
o finance charges;
o loss of profits;
o general disruption; and
o Wasted management time.
A claim for the cost of variations
• Sometimes called additional work or extras, a contractor may claim for a variation when the employer changes the contractor's scope of work.
• Standard form contracts usually include a clause that defines what a variation is and provide a procedure to value the variation. If so, the contractor should comply with that procedure.
• Both parties may benefit from a clause permitting variations:
o the employer can make changes so that it gets the building it wants; and
o The contractor gets paid for providing extra or different work or materials.
• Claiming for variations often gives rise to disputes over whether:
o the additional work is outside the original scope of work; and/or
o The person who ordered the work was authorised to do so.
A claim for payment under a quantum meruit
• Under a quantum meruit claim, the contractor claims a reasonable sum for the work done and the materials it has supplied. The parties (or the courts) usually value a quantum meruit claim at a fair commercial rate.
• A contractor cannot claim a quantum meruit if the parties have a contract to pay an agreed sum, but it will be relevant if the parties have:
o not agreed a contract or not agreed all the terms, including the price for the work;
o an agreement to pay a reasonable sum for the work done; or
o Agreed a scope of work under the original contract and the work falls outside that scope (and the parties did not have or did not use a variation procedure in the contract).
• A contractor may claim a quantum meruit if it has worked under a letter of intent.
What the employer may claim from the contractor
The employer may have a claim against the contractor because the works are of a poor quality or are defective, or because the project is delayed.
A claim for poor workmanship and/or defects in the works
• Defective work frequently occurs in construction projects. Defects may range from de minimis items included within snagging lists at practical completion, to significant but undetected (or latent) problems. A defect is generally a breach of contract by the contractor, but could relate to design that the contractor did not carry out, in which case only a professional consultant or consultants might be liable.
• Standard form contracts usually contain a defects liability clause that obliges the contractor to return to site, at its own cost, during the defects liability period or rectification period (normally six or 12 months) and remedy any defects that arise.
• A contractor who is responsible for design and construction of the works may be liable for a defect that is caused by negligent design, by poor workmanship or by a mixture of both.
A claim for liquidated damages
• A liquidated damages clause (sometimes called liquidated and ascertained damages or LADs) compensates the employer if the contractor completes its work late. It requires a contractor to pay the employer a pre-determined rate of damages that must be a genuine pre-estimate of the employer's loss.
• A liquidated damages clause is a common feature of many standard form contracts. The employer must ensure that it meets any contractual notice requirements in the contract before it claims liquidated damages from the contractor.
• The clause may take effect as an exhaustive remedy (that is, the clause may be the employer's only remedy for the contractor's delay).
• The employer usually deducts or sets off the liquidated damages from sums it owes to the contractor.
What the employer may claim against the professional consultant
On construction projects, professional consultants often act as the contract administrator (valuing and certifying the works) as well as undertaking a design role. Generally, on building contracts, the professional consultant administering the contract is an architect; on engineering contracts, it is usually an engineer. Occasionally, the employer may appoint a project manager or quantity surveyor to administer a contract.
Professional consultants should perform their services in accordance with the implied or express duty of care in their professional appointment.
The professional consultant may be liable to the employer for failing to:
• Design the works in accordance with the professional appointment.
• Supervise the works in accordance with the professional appointment.
• Ensure the contractor built the works in accordance with the building contract.
• Certify the works properly (that is, it is alleged the professional consultant was negligent in certifying the works).
An employer claims its losses caused by a breach of contract or the negligence of a professional consultant as general (unliquidated) damages.
What the professional consultant may claim against the employer
• If the employer fails to make payment, the professional consultant may claim for non-payment of fees. The parties may dispute whether a particular professional service was included in the fee agreed at the outset, or whether it was extra work.
• The professional consultant will usually retain copyright in the design and its plans and drawings; the employer is typically granted a licence to use these. If the employer does not pay the professional consultant, the professional consultant may argue that the employer's use of the design is in breach of copyright.
23. Extension of time
Many construction contracts allow the construction period to be extended where there are delays that are not the contractor's fault. Some contracts allow an extension of time to be granted whether or not the completion date is likely to be affected by the delay, whereas others only allow an extension of time if the delay is likely to affect the completion date.
When it becomes reasonably apparent that there is a delay, or that there is likely to be a delay that could merit an extension of time, the contractor gives written notice to the contract administrator identifying the relevant event that has caused the delay. If the contract administrator accepts that the delay was caused by a relevant event, then they may grant an extension of time and the completion date is adjusted.
Relevant events may include:
• Variations.
• Exceptionally adverse weather.
• Civil commotion or terrorism.
• Failure to provide information.
• Delay on the part of a nominated sub-contractor.
• Statutory undertaker’s work.
• Delay in giving the contractor possession of the site.
• Force majeure (such as an epidemic or an 'act of God').
• Loss from a specified peril such as flood.
• The supply of materials and goods by the client.
• Strikes.
• Changes in statutory requirements.
• Delays in receiving permissions that the contractor has taken reasonable steps to avoid.
The contractor is required to prevent or mitigate the delay and any resulting loss, even where the fault is not their own.
Assessing claims for an extension of time can be complicated and controversial. There may be multiple or concurrent delays, some of which are the contractor's fault and some not. Crucial in assessing applications for extension of time is the quality of the information provided and records available.
The contract administrator may review extensions of time after practical completion and further adjust the completion date.
Mechanisms allowing extensions of time are not simply for the contractor's benefit. If there was no such mechanism and a delay occurred which was not the contractor’s fault, then the contractor would no longer be required to complete the works by the completion date and would only then have to complete the works in a 'reasonable' time. The client would lose any right to liquidated damages.
Claims for extension of time can run alongside claims for loss and expense however, one need not necessarily lead to the other.
Where extensions of time are caused solely by the action of the client or their agents, the contractor is entitled to reimbursement of the running costs of their preliminaries, such as staff costs and plant hire. This is reasonably easy to calculate. More subjective and contentious are claims for disruption and uneconomic working.
Some other considerations when assessing claims for extensions of time and/or loss and expense include:
• All claims should be judged against the progress of the works and not the programme.
• There are many occasions where contractors contribute to delay themselves by their performance during design periods, when producing drawings, mock ups and samples or in inter-facing with sub-contractors.
• Successful claims must demonstrate the link between the breach (cause) and the delay.
• Loss of profit claims can be challenged since there is an onus on the contractor to demonstrate it was prevented from making a profit elsewhere. Profits made from the variation account should be offset against any figure put forward.
• Claims for finance charges must show that the contractor operated under negative cash flow and was forced to borrow capital. Furthermore notice of such circumstances has to be given at the time of the client’s breach.
• Supplemental and wrap-up agreements previously agreed by both parties can weaken the contractor’s final entitlement.
24 Final account
final account is the process of calculating and agreeing any adjustments to the contract sum (the amount originally set out in the contract to be paid to the contractor for completion of the works) so that the amount of the final payment can be determined. The amount of the final payment is then set out in the final certificate (or final statement). It is possible for the final certificate to show that money is owed to the client, rather than due to the contractor.
Construction contracts may in fact not require the preparation of a final account, although they generally do require the contractor to provide all documents necessary for the adjustment of the contract sum within a specified time, and set out the time scale for and consequences of issuing the final certificate.
The contract sum may need to be adjusted for a number of reasons, including:
• Variations.
• Fluctuations.
• Prime cost sums.
• Provisional sums.
• Payments to nominated sub-contractors or nominated suppliers.
• Statutory fees.
• Payments relating to the opening-up and testing of the works.
• Loss and expense.
• Liquidated and ascertained damages.
• Contra claims imposed as a result of the contractor's operations (such as a third-party claim resulting from contractor negligence or contractual breach, for example, flooding a neighbour's property).
• The release of any remaining retention.
Agreeing the final account can be a complicated, time consuming and adversarial process, often resulting in disputes. The process can be made easier if adjustments to the contract sum are agreed as the project progresses rather than saving them up for the end. It is also beneficial if the client's quantity surveyor and the contractor's quantity surveyor work together on drafts of the final account before agreement it sought. It is preferable that a draft copy of the final account is signed off by the contractor as an 'in full and final settlement' prior to issue.
Agreement of the final account will allow the contract administrator to issue the final certificate. The final certificate is conclusive that all patent defects have been remedied, all adjustments to the contract sum have been agreed and all claims settled. Latent defects may still become apparent after completion of the contract and these may give rise to action for damages, for breach of contract or negligence.
Where proceedings have begun in relation to a dispute, the conclusiveness of the final certificate is subject to the findings of those proceedings.
In addition, the final certificate itself can be disputed (usually within 28 days). Adjudication, arbitration or other dispute resolution procedures may then be necessary to resolve the dispute. The final certificate is then only conclusive in relation to matters that are not disputed.
25. Attendance
is the main contractor’s mark up for specific services it has to provide for individual suppliers or sub-contractors. This might include items such as material handling, scaffolding and rubbish clearance.
Attendance can be ‘general’ or ‘special’.
General attendance is the description of main contractor attendance available site wide to all contractors/subcontractors such as:
• Welfare facilities.
• External scaffolding.
• Temporary power and lighting.
• Platform and passenger hoists.
• Tower crane lifts by prior arrangement.
• Site security.
• Waste disposal.
Special attendance is specific to a particular contractor/subcontractor if it requests it to be provided by the main contractor such as:
• Special hoisting.
• Builders work such as a concrete plinth.
• Special scaffolding.
It is important to establish within the contract documents whether items that the sub-contractor will require will constitute attendances that will be provided by the main contractor, or whether they will provide them themselves (such as their own specialist equipment).
Attendance should not be confused with general site preliminaries or builder’s work in connection with mechanical and electrical services. These items are separately priced.
26.Practical completion
The contract administrator certifies practical completion when all the works described in the contract have been carried out. Practical completion is referred to as 'substantial completion' on some forms of contract.
Certifying practical completion has the effect of:
• Releasing half of the retention (an amount retained from payments due to the contractor to ensure that they complete the works).
• Ending the contractor's liability for liquidated damages (damages that become payable to the client in the event that the contractor breaches the contract - generally by failing to complete the works by the completion date).
• Signifying the beginning of the defects liability period.
Documentation that should be issued to the client on certification of practical completion may include:
• A draft building owner's manual.
• A building user's guide.
• The health and safety file.
• The building log book.
• A construction stage report.
Once practical completion is certified, the client takes possession of the works for occupation.
There is no absolute definition of practical completion, and case law is very complex. There is some debate about when practical completion can be certified and whether it can be certified where there are very minor (de minimis) items 'not affecting beneficial occupancy' that remain incomplete.
It is important to note that the defects liability period is not a chance to correct problems apparent at practical completion; it is a period during which the contractor may be recalled to rectify defects which appear. If there are defects apparent before practical completion, then these should be rectified before a certificate of practical completion is issued.
This can put the contract administrator in a difficult position, where both the contractor and the client are keen to issue the certificate (so that the building can be handed over) and yet defects (more than a de minimis) are apparent in the works. Issuing the certificate however could render the contract administrator liable for problems that this causes for example in the calculation of liquidated damages, the position in relation to performance bonds and the release of retention when it is not certain that the works will be completed.
If the contract administrator is pressured to certify practical completion even though the works are not complete, they might consider informing the client in writing of the potential problems of doing so, obtaining written consent from the client to certify practical completion and obtaining agreement from the contractor that they will complete the works and rectify any defects. If the contract administrator is not confident about the potential problems, they may advise the client to seek legal advice.
On construction management contracts, a separate certificate of practical completion must be issued for each trade contract. Once all trade contracts (or all trade contracts for a particular section of the works) have been issued, the construction manager issues a certificate or project completion (or sectional completion). The same is true on management contracts, where each works contract must be certified individually.
Practical completion is not a term recognised in many recently developed contacts such as PPC 2000 and other partnering contracts which simply refer to 'completion'. This can put the contract administrator in a difficult position as to when the project becomes 'useable' by the client. Effectively, if the project reaches a stage when the intended use by the client, either immediate use, such as installing furniture or fitting-out (if it is a building project), or actual occupation by the end users, is possible safely and without affecting warranties etc then the project may be deemed 'complete'. The size and extent of the list of outstanding works and defects requiring rectification will be the measure on which the contract administrator judges whether completion has actually been achieved.
NB If practical completion is not certified by the most recently agreed completion date, then the contractor may be liable to pay liquidated and ascertained damages to the client. These are pre-determined damages set at the time that the contract is entered into, based on a calculation of the actual loss that the client is likely to incur if the contractor fails to meet the completion date. Some contracts require that a certificate of non-completion is issued as a pre-requisite to deducting liquidated and ascertained damages.
27. Adjustment to measurement
This is amendment to work section during the taking off process. After the overall section has been measured the necessary adjustment to this section is the adjustment to measurement.
ROLES PERFORMED BY VARIOUS PARTIES TO CONSTRUCTION PROJECT
The client
• Working with the Project Manager and other members of the program team to decide specifically what you want to do. Establishing your program for the project is the first and most basic step. If the program is not clear or not agreed upon, the project cannot proceed.
• Attending design meetings with the Project Manager, outside consultants and other parties to facilitate program, design, and budget decision-making. These meetings may occur as often as weekly during the early design phases on major projects.
• Working with the Project Manager to develop a schedule for the project.
• Providing prompt answers to questions related to the program requirements and the way in which the occupants function. The level of detail required increases as the design progresses. Whenever possible, provide program and other technical requirements in writing.
• the Project Manager.
The Consultants
Architects
The responsibilities of an Architect are many and varied during the construction process. When construction administration is part of the contract, the architect's ability to help create a successful project continues after the planning, design and construction documents are complete. All too frequently, the Architect-Owner relationship is terminated on completion of the construction documents. Some contractors wish to remove the architect from their operation, viewing their presence as both a nuisance and an unnecessary expense. However, an Architect has several critical roles yet to play during construction.
Performance Evaluation
It is up to the Architect to observe construction to ensure, through regular inspection, that the site work, when complete will meet the specifications of the construction documents. While the architects' scrutiny might appear to hinder progress, it will ultimately benefit all parties and the success of the project to arrange regular site reviews. The Architect should submit written evaluations of work at regular intervals during construction. By doing so, the contractor avoids any plan deviation which could become a liability should problems arise in the future.
Deviation and Adjustment
The Architect must submit modifications made to the design of a project during construction to the Contractor. These changes often occur to adapt a project to real-life site conditions, correct errors and remedy omissions to the construction documents. Departures from construction documents that are discovered after their finalization should be brought to the attention of the owner along with any necessary scheduling adjustments.
Costs
During design development, the Architect will usually provide an estimate for the cost of work. This estimate, however, is a target and is likely to change during construction. As the cost requirements change, it is the responsibility of the Architect to update and refine cost estimates and share that information with the Contractor and owner. Estimates should always take into account contingencies and potential price escalation. Should the cost requirements reach budgetary limits, it is the architect's duty to recommend alternative solutions to resolve any variations to the original budget.
Site Assessment
At an agreed upon time, after the completion of a project, the Architect is responsible for conducting an assessment of the site for the owner. Operations and performance of the facility should be considered and the architect should make recommendations for maintenance and improvement if any are required. Any deficiencies in construction are to be addressed by the contractor, making this assessment essential for the owner. Additionally, liability for any substandard work may fall in part to the architect, if the problem is in the design, highlighting the importance of the architect's presence during construction.
It is short sighted and creates added risk for all parties when the Architect has no contracted responsibilities during construction.
Quantity surveyors
Quantity Surveyors are involved at various stages of the construction process, typically prior to construction, during construction and following completion of the works.
Quantity Surveyors work with accountants, architects, engineers, builders, building owners, developers, financiers, government, insurance underwriters, loss adjusters, solicitors and subcontractors. The Quantity Surveyor’s detailed knowledge of construction costs allows them to perform the following tasks independently of whether they are working for the Client or the Contractor:

Prior to Construction:
• Preparation of Feasibility Studies
• Estimating to define project budgets
• Analysis of the effect of design changes on the project budget
• Cost planning to refine the budget as the design documents develop
• Preparation of Bills of Quantities to assist in the tender process
During Construction:
• Provision of cost control services during construction
• Assessment of the contractor’s progress claims
• Assessment of variation and delay claims
• Procurement of subcontractors and labour to carry out specialist trade works
• Negotiation and settlement of accounts
• Monthly forecasting and cost reporting
• Monthly negotiation and agreement of payments for works carried out
Post Construction:
• Determination of the final project cost
• Preparation of tax depreciation reports for investors and property owners
• Expert witness reports to assist in the settlement of building disputes
Structural and civil engineer
Civil Engineers are involved in the planning, designing, construction and maintenance of physical projects such as buildings, bridges, roads, canals, dams, pipelines, subdivisions, airports, water systems, and many other types of facilities. Their work is not limited to planning and designing, they also prepare property descriptions, deeds, final cost estimates and right-of-way maps.
Civil Engineers also visit fields mostly for surveying, site investigation, or construction inspection or supervision. They may also be involved in laboratory testing for the condition of soil and construction materials. Structural engineers specialize in the engineering of bridges, buildings, pipelines, industrial structures, or special mechanical structures such as aircraft or vehicles. Like civil engineers, structure engineers also make field visits mainly to check whether the work being done is according to the specifications or not. They also inspect existing structures that may need repair or replacement.
The role of structural and civil engineers in building and construction is to improve the environment we live in by designing and creating projects that provide safety to the general public since roads, bridges, buildings, etc are used by the masses worldwide. Many engineers use computer aided design and drawing facilities to provide high quality of service in a timely manner.
Mechanical engineer
Role of mechanical engineer in construction is to do design calculations, drawings, and do all the mechanical work in proper way
Definition and constituent of contract bill
The Bills of Quantities referred to in the First recital which have been priced by the Contractor and signed by or on behalf of the Parties to this Contract.
(JCT Conditions of Contract Definition)
The Construction Contracts Bill is a piece of legislation aimed at improving the process of payments within the construction industry. It seeks to remove the possibility of payments being withheld for extended periods of time.
The explanatory memorandum for the Bill describes the legislation as follows.
"The main purpose of this Bill is to provide for a mechanism whereby prior notice of an intention to withhold sums from payments otherwise due must be given. Otherwise, payments must be made in full and/or the payee may suspend the provision of works and/or services under the construction contract until payment is made in full. This provision is proposed in ease of persons along the chain in the construction sector who may suffer unduly where an entity under a superior contract would find itself withholding payment unilaterally without cause. This would bear unfairly upon the payee or others dependent upon the payee. Ideally this measure would be linked to wider provision in respect of construction contracts including a more rapid and effective means of dispute settlement. However, that could be considered at a later point in time."
Mechanical drawings
A mechanical drawing is defined as a scaled illustration of a subject machine or mechanical part, or construction drawing of a fixture, product, or furnishing. It is a precision drawing, produced with the help of instruments, such as compasses, triangles, T-squares, etc., on a drafting board, or entirely in a Computer Aided Drafting (CAD) program.
Electrical drawings
An electrical drawing, is a type of technical drawing that shows information about power, lighting, and communication for an engineering or architectural project. Any electrical working drawing consists of "lines, symbols, dimensions, and notations to accurately convey engineering’s design to the workers, who install the electrical system on the job
Structural drawing
The design and working drawings for structures such as buildings, bridges, dams, tanks, and highways

Shop drawing
This is the installer or fabricator’s drawing of their details presentation of the work done.it shows the exact procedure, position and clarification on how service works have been done

Constituent
• Instruction to tenderers
• Form of tender
• Article of agreement and condition of contract
• Trades preambles/specifications
• Preliminaries
• Bills of quantities

Procurement
Procurement describes the merging of activities undertaken by the client to obtain a building. There are many different methods of construction procurement; however the three most common types of procurement are:
1. Traditional (Design-bid-build)
2. Design and build
3. Management contracting
There is also a growing number of new forms of procurement that involve relationship contracting where the emphasis is on a co-operative relationship between the principal and contractor and other stakeholders within a construction project. New forms include partnering such as Public-Private Partnering (PPPs) aka private finance initiatives (PFIs) and alliances such as "pure" or "project" alliances and "impure" or "strategic" alliances. The focus on co-operation is to ameliorate the many problems that arise from the often highly competitive and adversarial practices within the construction industry.
Traditional
Main article: Design–bid–build
This is the most common method of construction procurement and is well established and recognized. In this arrangement, the architect or engineer acts as the project coordinator. His or her role is to design the works, prepare the specifications and produce construction drawings, administer the contract, tender the works, and manage the works from inception to completion. There are direct contractual links between the architect's client and the main contractor. Any subcontractor will have a direct contractual relationship with the main contractor.
Design and build
This approach has become more common in recent years and involves the client contracting a single entity to both provide a design and to build that design. In some cases, the Design and Build (D & B) package can also include finding the site, arranging funding and applying for all necessary statutory consents.
The owner produces a list of requirements for a project, giving an overall view of the project's goals. Several D&B contractors present different ideas about how to accomplish these goals. The owner selects the ideas he or she likes best and hires the appropriate contractor. Often, it is not just one contractor, but a consortium of several contractors working together. Once a contractor (or consortium/consortia) has been hired, they begin building the first phase of the project. As they build phase 1, they design phase 2. This is in contrast to a design-bid-build contract, where the project is completely designed by the owner, then bid on, then completed, design build contracts are usually used for very large projects.