Essential Documents and Cost Factors in Building Projects

Question 1

Background: A complete set of cross-referenced and up-to-date contract documentation is essential to identifying, describing, and applying the requirements of a Building Contract and to allow the project scope to be accurately costed and materials sourced and ordered.

For a typical new, single-story, 3-bedroom house on a vacant sloping site:

List 15 relevant pieces of contract documentation, including those documents, which the PCA-Approving Authority and Safework NSW may require, that a builder’s estimator may/will need to assess when preparing ordering schedules and establishing associated costs for the project.

  • Development consent conditions
  • DA-approved plans, elevations, section details, specifications, and external finishes/color selection
  • Structural details/plans
  • Construction
  • Conditions of contract
  • Bill of Quantities
  • Basix Certificate
  • Materials selection schedule
  • Window & Door schedule
  • PC item schedule and Provisional sums schedule
  • Stormwater management
  • Management plan
  • Bal Certificate
  • Traffic management plans & site/locality plan
  • Geotechnical survey
  • Site survey-contours and levels
  • Landscaping plans
  • Nominated suppliers list
  • Asbestos register

Question 2

List/identify 5 additional types of schedules an estimator/ builder might refer to when costing and ordering materials for a low-rise building project.

  • Schedule of rates
  • Approved plans & specifications
  • Provisional sum
  • Windows and doors, rates and finishes
  • Prime cost items schedule

Cost plus

Question 3

List 15 cost items that an estimator would normally include in a schedule of “Preliminaries” costs for a new low-rise commercial building project.

  • Site fencing, supply erecting, hire, dismantling and return costs, lighting, and security cameras
  • Site toilet hire or temporary toilet facility including ongoing servicing and also delivery and pickup
  • Temporary water connection
  • Temporary power pole and connection, hire and removal costs
  • Temporary power line protection – tiger tails
  • Site signage
  • Site storage shed
  • Temporary access roads and mud control beds
  • Footpath protection
  • Scaffolding- supply erecting, hire, dismantling and return costs
  • Small tools- wheelbarrows, picks, brooms, and shovels
  • Management install and maintain costs
  • Concrete pumping
  • Crane hire
  • Traffic management and rubbish/debris removal, bin or tip fees
  • Dust control measures
  • Contingency sums (specified in contract)
  • Management and rubbish/debris removal, bin or tip fees
  • Dust control measures

Question 4

Name five Development Consent or Construction Certificate “operating conditions” imposed by the approving authority that may affect the cost of a builder’s work activities on a small residential house site.

  • Hours of work
  • Noise control
  • Dust controls
  • Traffic management – clearways etc.
  • Road weight limits and vehicle length turning limits
  • Silt management

Question 5

Explain the benefit(s) to the builder and client of having a Bill of Quantities as part of the contract documentation when undertaking project variations.

The benefits of having a BoQ are:

  • To help the post-contract control in a project.
  • Costs have been identified, measurements identified.
  • Schedule of rates have been identified and outlined.
  • Its benefit is to process the variations without ambiguity; can be resolved with ease.
  • The Bill of Quantities sets out a list of activities that are included in the contract, which forms a basis of adjustment.
  • Gives the courts a ‘tool’.
  • List of numbered items, description.
  • Risk of Quantities can record the quantities of the work on site clearly.
  • It helps the builder get progress payments from the client.
  • Check the type of contract regarding costing and payment in the contract.
  • Composition of building cost.