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Practice Problem2004

The document provides background information on a proposed office development that is being revised to include serviced apartments. It includes a cost plan for the original office development and requests the candidate to list design changes and associated costs for the revision, and suggest potential cost savings without changing functions.

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Jasmine Tso
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We take content rights seriously. If you suspect this is your content, claim it here.
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0% found this document useful (0 votes)
22 views17 pages

Practice Problem2004

The document provides background information on a proposed office development that is being revised to include serviced apartments. It includes a cost plan for the original office development and requests the candidate to list design changes and associated costs for the revision, and suggest potential cost savings without changing functions.

Uploaded by

Jasmine Tso
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 17

THE HONG KONG INSTITUTE OF SURVEYORS

QUANTITY SURVEYING DIVISION

ASSESSMENT OF PROFESSIONAL COMPETENCE

FINAL ASSESSMENT – AUTUMN 2004

PRACTICE PROBLEM

Monday, 27th September, 2004

Page 1 of 12
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – AUTUMN 2004
PRACTICE PROBLEM
th
QUESTIONS FOR THE FIRST DAY - 10:00 am to 2:00 pm, Monday, 27 September, 2004

NOTES TO CANDIDATES

A. Headings to questions are for ease of identification only and do not form part of
the questions.

B. The number of main questions is as follows:

(1) First day – Two main questions worth 25 marks each.

(2) Second day – Two main questions worth 25 marks each.

C. All Main Questions and Sub-Questions are compulsory.

D. The total mark is 100. The overall pass mark is 60. Marks will be assessed to
fractions of one unit.

E. Refer also to INSTRUCTIONS TO CANDIDATES which were issued to you in


advance.

FIVE COMMON CRITERIA

Candidates are expected to illustrate a reasonable level of professional competence


against five common criteria outlined below, sufficient for the Assessors to answer the
question “Would I employ this person as a qualified Professional Surveyor?”.
However, it should be recognized that not all these criteria apply to every problem, nor
do they carry equal weight.

1. Perception: A full understanding of the problem posed, evidenced by a


response to each item in the question. Candidates should also
show foresight by anticipating additional problems not
specifically mentioned.

2. Imagination: The assumption of essential supplementary information so as to


provide a full response, also the use of imaginary telephone
inquiries, quotations, notes, etc.

3. Technical skills: The correct use of measurement principles, prices, discount


factors, etc. The use of appropriate short cuts, rounding off of
figures, etc. to suit the scale of the problem. The provision of
analysis to a depth appropriate to the stage reached by
Candidates and the time constraints imposed on Candidates.

4. Judgment: The provision of sound professional advice indicative of


professional knowledge and experience gained by Candidates.
The advice should be firm and unhesitating, except where
suitable caveats are essential.
5. Communication: Free of ambiguity, clear expression and an absence of
irrelevant or inappropriate technical details, particularly when
provided to a lay client. Correct syntax and good professional
style in letters and reports are important. Candidates should
clearly convey their interpretations and proposals.

Page 2 of 12
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – AUTUMN 2004
PRACTICE PROBLEM
th
QUESTIONS FOR THE FIRST DAY - 10:00 am to 2:00 pm, Monday, 27 September, 2004

QUESTION 1 ESTIMATING (total 25 marks)

You are employed in a Quantity Surveying Consultancy company and you are the
Project Surveyor for a proposed office development. In a meeting with the Architect,
you have been advised that the Client has decided to change the high zone levels of
the development into serviced apartments for rental purpose.

Part A

The Architect requested a revised Cost Plan in response to the Client’s instruction. The
Director-in-charge of this project requests you, as the project quantity surveyor, to list
the probable changes to the original design for this instructed revision and prepare the
associated indicative costs for discussion with the Architect. (A copy of the cost plan for
the originally proposed office development is attached to this Question 1)

Background Information

Originally proposed office development

(i) Grade A Commercial Development with a Construction Floor Area of 96,960m2


(ii) Total number of levels = 50 levels (Levels 1 to 4 as Building Lobby and Shopping
Arcade / Catering Area; Levels 5 to 20 as Low Zone rental offices; Levels 21 to
35 as Mid Zone rental offices and Levels 36 to 50 as High Zone rental offices)
(iii) A reinforced concrete structure with glazed curtain wall as external façade
(16 marks)

Part B

After a preliminary discussion with you, the Architect wishes to include the following
further changes in discussions with the Client in a meeting tomorrow.

(i) To change the floor height of Levels 48 and 50 from the typical 4.0m to 5.0m.
The Architect confirmed that the change would not have any effect on the height
restriction of the proposed building development.

(ii) To further add an indoor leisure swimming pool of irregular shape (of
approximately overall size 20m x 15m) at Level 50 for the enjoyment of the
tenants of the serviced apartments.

You are required to list all probable design changes which are considered cost
significant, and provide the associated indicative costs, with your build-up, for these
two changes for discussion in tomorrow’s meeting.
(6 marks)

Question 1 (Cont’d)
Page 3 of 12
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – AUTUMN 2004
PRACTICE PROBLEM
th
QUESTIONS FOR THE FIRST DAY - 10:00 am to 2:00 pm, Monday, 27 September, 2004

Part C

In the meeting, the Client was pleased with the idea of adding a leisure swimming pool
but commented that the total estimated construction cost was too high and has
requested the Architect to propose changes to save cost.

The Architect has requested you to advise him of any likely cost savings that could be
made but without changing the functions of the building. In the form of a letter, please
suggest some changes to the Architect, with rough indications of cost, for his
consideration.
(3 marks)

Question 1 (Cont’d)

Page 4 of 12
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – AUTUMN 2004
PRACTICE PROBLEM
th
QUESTIONS FOR THE FIRST DAY - 10:00 am to 2:00 pm, Monday, 27 September, 2004

COST PLAN FOR THE ORIGINAL PROPOSED OFFICE DEVELOPMENT

1.0 DESCRIPTION OF THE ORIGINAL PROPOSED PROJECT

1.1 The proposed project is the construction of a new Grade A Office Building at
Land Lot No. ABC123, Hong Kong.

1.2 The existing site is a vacant site with no adjoining buildings at the time of
preparing this cost estimate.

1.3 The following is the list of storey heights, construction floor areas and the
proposed functions of the building:

Level Storey Height Construction Floor Area Main


(each floor) Function

Level 1 5.0m 1,920m2 Lobby + Shops

Level 2 4.5m 1,920m2 Shopping Arcade +


Catering Area

Level 3 4.5m 1,920m2 Ditto

Level 4 4.5m 1,920m2 Ditto

Levels 5 to 34 4.0m 1,920m2 Office

Level 35 4.5m 1,920m2 Mechanical Floor

Levels 36 to 50 4.0m 1,920m2 Office

Roof 3.0m 960m2 Plant Rooms

1.4 The total building height is 206m and the site area is 12,800m2.

1.5 Construction floor areas for estimating purposes are measured to the outside
face of external walls (or in the absence of such walls, the external perimeter)
of the building and include all stair wells, lift shaft voids, covered M/E areas but
exclude roof watertanks and canopies.

Question 1 (Cont’d)

Page 5 of 12
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – AUTUMN 2004
PRACTICE PROBLEM
th
QUESTIONS FOR THE FIRST DAY - 10:00 am to 2:00 pm, Monday, 27 September, 2004

COST PLAN FOR THE ORIGINAL PROPOSED OFFICE DEVELOPMENT


(Cont’d)
2.0 SCOPE OF ESTIMATE

2.1 This cost estimate is for all works normally included in a building contract and
includes:

2.1.1 Foundation and Sub-structure

2.1.2 Superstructure construction and general finishes

2.1.3 M&E installations comprising plumbing & drainage, electrical, heating,


ventilation, air-conditioning, fire services, telephone, CABD, PABX,
building management system, and ELV installations.

2.1.4 Lifts and escalators installation

2.1.5 Building maintenance unit for external facade

2.2 This cost estimate, however, excludes:

2.2.1 Diversion of underground services, if any

2.2.2 Works outside site boundary

2.2.3 Utility connection fees

2.2.4 Finance and legal expenses

2.2.5 Consultants' fees and reimbursables

2.2.6 Rates, taxes, government premiums and other outgoings

2.2.7 Value of land

2.3 The estimate is based on prices current at January 2004 obtained by


competitive tendering for lump sum fixed price contracts with a normal contract
period. No provision has been made for possible future fluctuations in tender
prices occurring between the time of preparing the estimate and the time of
calling tenders.

2.4 Allowances for foundations, structural frame and slab and building services
installations are based on the Engineer's preliminary advice and are subject to
further change as the design development proceeds.

Question 1 (Cont’d)
COST PLAN FOR THE ORIGINAL PROPOSED OFFICE DEVELOPMENT

Page 6 of 12
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – AUTUMN 2004
PRACTICE PROBLEM
th
QUESTIONS FOR THE FIRST DAY - 10:00 am to 2:00 pm, Monday, 27 September, 2004

(Cont’d)
3.0 PRELIMINARY COST ESTIMATE (at January 2004 prices)

Item Element Elemental Cost (HK$) Cost per CFA (HK$)

1.0 Sub-structure 110,530,000 1139.95

2.0 Superstructure 192,850,000 1988.96

3.0 Roof covering 1,290,000 13.30

4.0 Staircase 6,500,000 67.03

5.0 Reinforced concrete sundries 8,250,000 85.08

6.0 Elevation 121,500,000 1253.09

7.0 Internal walls and partitions 17,490,000 180.38

8.0 Doors and ironmongery 14,380,000 148.30

9.0 Floor finishes 41,130,000 424.19

10.0 Ceiling finishes 34,370,000 354.47

11.0 Internal wall finishes 19,460,000 200.70

12.0 Fittings and sundries 13,600,000 140.26

13.0 M&E Installations 180,850,000 1865.20


- Plumbing & drainage installation
- Electrical installation
- HVAC installation
- Fire services installation
- Telephone installation
- PABX & CABD installation
- BMS installation
- ELV installations

14.0 Lifts 56,000,000 577.55

15.0 Builder’s works in connection 4,730,000 48.78


with building services installations

16.0 Sub-Total 822,930,000 8487.31

17.0 Preliminaries (12% of items 2 to 85,488,000 881.68


15)

18.0 Total 908,418,000 9368.99

Question 1 (Cont’d)
COST PLAN FOR THE ORIGINAL PROPOSED OFFICE DEVELOPMENT
Page 7 of 12
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – AUTUMN 2004
PRACTICE PROBLEM
th
QUESTIONS FOR THE FIRST DAY - 10:00 am to 2:00 pm, Monday, 27 September, 2004

(Cont’d)
4.0 OUTLINE SPECIFICATION

4.1 Piling and substructure

Allowance for piling system and concrete ground beam and on-grade ground
slab.

4.2 Structural frame and slab

Generally in-situ reinforced concrete loadbearing walls, column and beam


framing with 150mm thick suspended slabs of conventional construction.

4.3 Roof coverings

Generally cement tiles and screed on insulation on 3 ply bitumen felt roofing
and roof screeds to falls.

4.4 Escape staircases

Generally reinforced concrete staircases finished with mosaic tile (P.C.


$50/m2), non-slip nosing, galvanized steel balustrades and handrails with
plastic handrail covers.

4.5 External Facade

Generally fully glazed (both vision and spandrel portions) curtain wall (P.C.
$4,000/m2) to all floors except weatherproof type aluminium louvres to
mechanical floor.

4.6 Internal walls and partitions

Generally 100mm solid concrete block walls and reinforced concrete walls are
provided for toilets, staircase, E&M plant rooms and office. Sub-dividing walls
into four office spaces and lift lobby allowed for each typical office floor.

Proprietary W.C. cubicles including doors

Shopfronts with tempered glass.

(Note: Loadbearing walls included in "Structural frame and slab" element)

4.7 Door and ironmongery

Generally timber doors, metal doors or fire rated doors where appropriate.

Average quality ironmongery.

Question 1 (Cont’d)
COST PLAN FOR THE ORIGINAL PROPOSED OFFICE DEVELOPMENT
Page 8 of 12
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – AUTUMN 2004
PRACTICE PROBLEM
th
QUESTIONS FOR THE FIRST DAY - 10:00 am to 2:00 pm, Monday, 27 September, 2004

(Cont’d)
4.0 OUTLINE SPECIFICATION (Cont’d)

4.8 Internal finishes

4.8.1 Floor finishes

Generally granite flooring to ground floor lobby & corridors in shopping arcade,
ceramic tiles to toilets, cement and sand paving to staircases and E&M plant
and pump rooms, raised floor with carpet tiles to office.

4.8.2 Ceiling finishes

Special feature false ceiling to ground floor lobby and corridors in shopping
arcade, acoustic aluminium tiles false ceiling to lift lobbies, corridor and office,
moisture proof acoustic mineral tiles false ceiling to toilets

4.8.3 Internal wall finishes

Granite wall lining to ground floor lobby and corridors in shopping arcade,
ceramic tile to toilets and pantry, lime cement plaster with paint to transformer,
staircases, E&M plant and pump rooms and office.

4.9 Fittings and sundries

Allowance only.

4.10 Building services installations


(Based on Building Services Engineer’s advice)

4.10.1 Plumbing and drainage including potable water supply, flushing water supply,
sanitary fittings, rainwater disposal system, underground drainage and
manholes (hot water system excluded).

4.10.2 Electrical installation including power supply and distribution system


(combination of floor units in raised floor system and skirting duct), emergency
generator sets, power outlets, lighting installation, emergency lighting,
lightning protection and earthing system, telephone installation, PABX and
CABD systems, security system, CCTV system, building management system.
(Satellite TV system and structured cabling excluded)

4.10.3 Fire services installation including sprinkler system, smoke detectors, fire
alarms, hose reel system, fire hydrants and hand operated fire fighting
appliances.

4.10.4 Central air-conditioning system including heating, mechanical ventilation and


air-conditioning installation.

Question 1 (Cont’d)
COST PLAN FOR THE ORIGINAL PROPOSED OFFICE DEVELOPMENT
Page 9 of 12
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – AUTUMN 2004
PRACTICE PROBLEM
th
QUESTIONS FOR THE FIRST DAY - 10:00 am to 2:00 pm, Monday, 27 September, 2004

(Cont’d)

4.0 OUTLINE SPECIFICATION (Cont’d)

4.11 Lifts installation including 24 No. passenger lifts and 2 No. firemen's lift and 16
escalators.

4.12 Gondola

Allowance only.

QUESTION 2 MEASUREMENT PRINCIPLES AND DOCUMENTATION (total 25


marks)

Page 10 of 12
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – AUTUMN 2004
PRACTICE PROBLEM
th
QUESTIONS FOR THE FIRST DAY - 10:00 am to 2:00 pm, Monday, 27 September, 2004

A) You are a quantity surveyor in a property development company and you are
assisting the Senior Project Manager in looking after aspects of tender
documentation and procurement issues for a high-rise residential project with a
two-level basement carpark occupying around 50% of the site area. The
professional consultant quantity surveyor employed by your company has just
submitted a draft of the firm Bills of Quantities which are ready for issue to the
tenderers for tendering purposes. This set of Bills of Quantities has also been
priced by the professional consultant quantity surveyor, based on market rates, to
provide a pre-tender estimate.

You note that the Bills of Quantities contain a number of departures from the
Hong Kong Standard Method of Measurement of Building Works (Third Edition
1979), with special preambles drafted to cover these departures. Upon raising the
same to the attention of the Senior Project Manager, he now wants to have your
comments on the following before deciding whether or not to adopt the Bills of
Quantities as measured for tendering:

i) How the measured items deviate from the Standard Method?


ii) Any reasons for the consultant quantity surveyor making such departures,
apart from saving time in the BQ preparation?
iii) What are the possible concerns of the Employer?
iv) Any suggested improvements to address the concerns of the Employer
given in iii) above?

The departures which you have noticed are:-

1.1 Timber doors including frames, painting and door ironmongery, etc., are all
given as a composite item and ENUMERATED and reference is made to the
tender drawings. (3 marks)

1.2 All plumbing pipes of various pipe diameters are each separately measured
RUN on plan and the rates for the plumbing pipes are to include for all bends,
tees and other fittings. Such rates shall also include for any additional service
runs and/or fittings required to route locally around beams, columns or
change in levels etc., to suit the building structure or architectural details.
(3 marks)

1.3 Man-holes are ENUMERATED and the rates are to include excavation and
backfilling, concrete, formwork, reinforcement, benching, finishes, step irons,
manhole covers and sleeves, etc. (3 marks)

1.4 External wall tiles, screeds, bedding mortar and jointing and pointing with tile
adhesive system are all measured SUPER as a single composite item.
(3 marks)

Question 2 (Cont’d)

Page 11 of 12
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – AUTUMN 2004
PRACTICE PROBLEM
th
QUESTIONS FOR THE FIRST DAY - 10:00 am to 2:00 pm, Monday, 27 September, 2004

B) After giving your comments on the above, the Senior Project Manager now asks
you to compile a list of criteria to be considered when streamlining and simplifying
the measurement rules in the Standard Method of Measurement for your in-house
quantity surveyors to follow when preparing Bills of Quantities.
(4 marks)

C) Your Senior Project Manager has written a memo to you enquiring about the
possible reasons why in the draft Bills of Quantities the temporary works for
structural steel shoring, sheet piling and other earthwork support items for the
construction of the two-level basement are measured as a lump sum ITEM for the
Contractor to design and construct, notwithstanding there is a design and a set of
detailed drawings produced by the consultant structural engineer for such works.
He also seeks your advice on the essential issues to be included in the draft tender
documents in conjunction with such documentation method.

He also noted that the size and exact location of the basement are still subject to
the final decision of his top management, which would not likely be finalized before
tender return. In light of this, he asked for your advice on the appropriateness of the
above method of documentation and any suggested alternatives to deal with this
situation.
(5 marks)

D) You are the consultant quantity surveyor preparing the tender for the proposed high
rise residential development described in A) above. The Architect for the project
has designed the external façade of the podium to be fully clad with bevelled edge
granite cladding, and has, during a project meeting, presented a sample of the
proposed cladding from a particular European quarry to the Employer for approval.
The Architect informed the Employer that the indicative supply rate would be about
$1,200/m2. The Employer has approved the sample but enquired whether the hue
and pattern of the sample would be commonly found in the quarry. This is
something the Architect has yet to check.

In a recent letter to your office, the Employer’s Senior Project Manager asked for
your advice as to the prime cost rate to be used for tendering purposes, and
enquired what information would need to be obtained from the supplier for such
purpose..
(4 marks)

** END OF PAPER **

Page 12 of 12
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION

ASSESSMENT OF PROFESSIONAL COMPETENCE

FINAL ASSESSMENT – AUTUMN 2004

PRACTICE PROBLEM

Tuesday, 28th September, 2004

Page 1 of 5
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – AUTUMN 2004
PRACTICE PROBLEM
th
QUESTIONS FOR THE SECOND DAY - 10:00 am to 2:00 pm, Tuesday, 28 September, 2004

NOTES TO CANDIDATES

A. Headings to questions are for ease of identification only and do not form part of
the questions.

B. The number of main questions is as follows:

(1) First day – Two main questions worth 25 marks each.

(2) Second day – Two main questions worth 25 marks each.

C. All Main Questions and Sub-Questions are compulsory.

D. The total mark is 100. The overall pass mark is 60. Marks will be assessed to
fractions of one unit.

E. Refer also to INSTRUCTIONS TO CANDIDATES which were issued to you in


advance.

FIVE COMMON CRITERIA

Candidates are expected to illustrate a reasonable level of professional competence


against five common criteria outlined below, sufficient for the Assessors to answer the
question “Would I employ this person as a qualified Professional Surveyor?”.
However, it should be recognized that not all these criteria apply to every problem, nor
do they carry equal weight.

1. Perception: A full understanding of the problem posed, evidenced by a


response to each item in the question. Candidates should also
show foresight by anticipating additional problems not
specifically mentioned.

2. Imagination: The assumption of essential supplementary information so as to


provide a full response, also the use of imaginary telephone
inquiries, quotations, notes, etc.

3. Technical skills: The correct use of measurement principles, prices, discount


factors, etc. The use of appropriate short cuts, rounding off of
figures, etc. to suit the scale of the problem. The provision of
analysis to a depth appropriate to the stage reached by
Candidates and the time constraints imposed on Candidates.

4. Judgment: The provision of sound professional advice indicative of


professional knowledge and experience gained by Candidates.
The advice should be firm and unhesitating, except where
suitable caveats are essential.

Page 2 of 5
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – AUTUMN 2004
PRACTICE PROBLEM
th
QUESTIONS FOR THE SECOND DAY - 10:00 am to 2:00 pm, Tuesday, 28 September, 2004

5. Communication: Free of ambiguity, clear expression and an absence of


irrelevant or inappropriate technical details, particularly when
provided to a lay client. Correct syntax and good professional
style in letters and reports are important. Candidates should
clearly convey their interpretations and proposals.

QUESTION 3 SUB-CONTRACTING SYSTEMS (total 25 marks)

The economic recession has been hanging over Hong Kong for the past several years.
The financial difficulties faced by Main Contractors, Sub-contractors and even workers
have made news often enough to catch the attention of your lay client, who has
commissioned you as the consultant Q.S. for a privately funded exhibition centre with a
strong aesthetic appeal. While the project is at its planning stage, your client is keen to
know the different types of Sub-contracting systems and how they can be put to
beneficial use in light of the recovering economy in Hong Kong. He is confused with the
different Sub-contracting systems in use in the current forms of construction contract
which contains terminology such as “domestic Sub-contractors”, “specialist Sub-
contractors”, “named Sub-contractors”, “nominated Sub-contractors” and “nominated
suppliers”.

a. Explain to your client the pros and cons of adopting the different types of Sub-
contractor/supplier systems. (5 marks)

b. Your client is very concerned about the tight construction programme and the high
aesthetic appeal required for this project. The project manager has advised the
use of domestic Sub-contractors for the whole of the project so that the Main
Contractor will take full responsibility for the performance of all of his Sub-
contractor’s. Your client requests your comments on the project manager’s advice.
(7 marks)

c. Due to the requirement of high aesthetic appeal for this project, it was decided
that named Sub-contractors would be included in the tender documents for the
exterior façade. The Main Contractor has confirmed the use of a named Sub-
contractor at the tender stage. However, during the construction period, the
named Sub-contractor went into liquidation halfway through the construction of the
exterior façade. No other named Sub-contractor was willing to complete the
remaining works.

The only option that appears to be feasible at this time is to complete the
remaining work by employing the labour-only Sub-contractor who used to work for
the named Sub-contractor and using the materials that were all delivered to the
site. As a client’s Q.S. (or as the Contractor’s Q.S.) prepare a report on the current
situation, state the considerations which are required to adopt the above option
with the purpose of minimizing future disputes and exposure to excessive cost
and describe the steps to be taken if it were to be implemented.
(7 marks)

QUESTION 3 (Cont’d)

Page 3 of 5
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – AUTUMN 2004
PRACTICE PROBLEM
th
QUESTIONS FOR THE SECOND DAY - 10:00 am to 2:00 pm, Tuesday, 28 September, 2004

d. Your client is planning the second phase of this exhibition centre, which will be
tendered as a separate contract. Since a specially made glass façade was
constructed by company ‘A” in phase one of the project, your client has requested
your advice on the appropriate contract arrangement to ensure that the second
phase of the exhibition centre will be constructed without compromising the
consistency of the exterior glass wall but avoiding the down side of adopting a
nominated Sub-contract system. (6 marks)

QUESTION 4 PROFESSIONAL PRACTICE (total 25 marks)

(a) During the last stage of the construction contract of a 36 storey residential building,
and in response to the sign of an up-swing in the property market, the Employer
intends to launch the sale of the property 3 months from now, and, to suit his sales
programme, to have four flats on the 23rd floor fitted out as show flats by a fitting
out specialist contractor. The current status of completion of the Main Contract
works is as follows:

Structure 100% completed


Finishing works to flats Completion from G/F up to 20/F
Finishing works to corridors 30% completed and up to 10/F
M&E installation 100% completed except for minor improvement works

The Date for Completion under the Contract was 2 months ago, and according to
the Main Contractor’s latest programme, the remaining works will take another 3 to
4 months to complete. The Employer is eager to commence the show flat fitting out
works as soon as possible, and has raised the following in a letter for your advice
as the consultant QS:

i/ Upon preliminary discussion with the Main Contractor, the Architect reported that
the Main Contractor was very reluctant to accept the introduction of another
contractor on site. Can the Main Contractor reject entry into the site of a
separate contractor? (2 marks)

ii/ What possible contractual risks and/or claims would arise as a result of the
introduction of the fitting out works? (4 marks)

iii/ What would be the suggested alternative arrangement(s) that could on the one
hand minimize disturbance to the Main Contractor and on the other have the
fitting out specialist contractor start work soonest? (3 marks)

iv/ What issues should be considered if the Employer intends to open the show flats
to the public upon their completion, while the Main Contract works have still not
been completed? (4 marks)

QUESTION 4 (Cont’d)

Page 4 of 5
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
FINAL ASSESSMENT – AUTUMN 2004
PRACTICE PROBLEM
th
QUESTIONS FOR THE SECOND DAY - 10:00 am to 2:00 pm, Tuesday, 28 September, 2004

(b) Your office was appointed by the newly elected Committee of the Incorporated
Owners (IO) of a large residential estate as the Consultant QS to handle issues in
relation to certain A&A works on the estate.

i/ The IO intends to arrange a tender for the upgrading of floor and wall finishes to
typical lift lobbies in the residential towers, and asked for your early advice on
matters relating to contractual issues and preliminaries which need to be
addressed in the tender documents and the subsequent contract in connection
with the works. No particular form of contract has been decided on yet, but it is
expected that the usual essential clauses of the traditional forms of contract will
prevail.
(6 marks)

ii/ the IO chairman noted from the attestation of the Articles of Agreement in the
HKIA/HKIS Form the wording “ As witness the hands of the said parties …”, and
was not sure of its meaning and purpose. He also enquired if there is any other
mode of contract execution and the pros and cons of each mode.
(3 marks)

iii/ It was finally decided to execute the contract as a deed. Before such execution
you are required by your Director to draft certain guidelines and a checklist for
your team members as a reference to deal with the different modes of execution
by the contracting parties to ensure the execution of the contract is legally binding.
(3 marks)

** END OF PAPER **

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