QUANTITY SURVEYING DIVISION ASSESSMENT OF PROFESSIONAL COMPETENCE FINAL ASSESSMENT 2014 PRACTICE PROBLEMS / PART II WRITTEN TEST DAY 1

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1 FINAL ASSESSMENT 2014 DAY 1 Wednesday, 17 th September, 2014

2 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 Questions with varying marks but the aggregate mark is 50 marks (2) Second day Questions with varying marks but the aggregate mark is 50 marks DAY 1 Question No. 1 Cost Estimate 22 marks Question No. 2 Bulk-checking of Quantities 13 marks Question No. 3 Editing of BQ Descriptions 10 marks Question No. 4 Insurance 5 marks marks C. All Main Questions and Sub-Questions are compulsory. D. The total mark of each day s paper is 50. The passing mark of each day s paper is 55% of the total mark of that paper. Candidates who have passed both days papers will be considered as having passed the APC Practice Problems. E. Refer also to INSTRUCTIONS TO CANDIDATES, which were issued to you in advance. Page 2

3 FIVE COMMON CRITERIA Candidates are expected to demonstrate a reasonable level of professional competence against five common criteria outlined below, sufficient for the Assessors to answer the question Would I employ the Candidate to work as a qualified Quantity Surveyor with the ability to resolve problems in a professional manner? 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. Judgement: 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, with clear expression and an absence of irrelevant or inappropriate technical details, particularly when provided to a lay Employer. Correct syntax and good professional style in letters and reports are important. Candidates should clearly convey their interpretations and proposals. Page 3

4 DAY 1 17 th SEPTEMBER 2014 Page 4

5 Question No. 1 Cost Estimate Venus Ltd. is the Owner of Sunny Serviced Apartments ( SSA ) at Tsim Sha Tsui. Since SSA was built 20 years ago, it is the first time that major renovation works are to be carried out to SSA. During the project meeting yesterday, Venus requested the design consultant team to review whether it would be feasible to incorporate the following additional work as part of the renovation works: a. Adding an additional passenger lift travelling between G/F and 2/F of the podium; b. Upgrading the podium facades by replacing all existing wall tiles (approximate facade area 1,000 m2); and c. Upgrading the interior of all existing 150 no. apartment units (100 no. studio units, 40 no. 1-bedroom suites and 10 no. 2-bedroom suites). Venus is particularly interested in knowing the rough indication of costs of the additional work. The Architect has confirmed that it is technically feasible to carry out the additional work without the need for major MEP equipment upgrading and foundation modification. As per Venus requirement, the serviced apartments and all common areas will still be in operation during the course of the renovation works. Page 5

6 You are the Project QS of the QS consultant in charge of the renovation works and you have just received the below from Venus financial controller. Please respond to his request. Dear Project QS, a. Additional passenger lift and b. Upgrading the podium facade by replacing the existing external wall tiles Please find attached draft cost estimates prepared by our project coordinator for your comment. Feel free to point out any potential deficiencies in the draft estimates of items (a) and (b). Please also provide your cost estimate of item (b). c. Upgrading of the interior of all existing 150 no. apartment units (100 no. studio units, 40 no. 1-bedroom suites and 10 no. 2-bedroom suites). Please use the fitting out costs of a new-build serviced apartment (also owned by our company) in the same district as the base because we would like to negotiate with the same Contractor to carry out the renovation works of the apartment units. Attached are the elemental costs analysed from the fitting out contract for that serviced apartment. That serviced apartment has 100 no. 1-bedroom suites. The size, layout and fitting out standard of the 1-bedroom unit are the same as those in SSA. The fitting out contract was tendered 3 years ago. I also attach the floor plan of each room type of SSA for your reference. The Architect has advised that the associated building services installation and their ancillary builder s works are being investigated and are not required to be included in the cost estimate at this stage. Please provide your cost estimate of item (c). I also need to know the renovation cost per room type for my financial modelling. Please prepare your reply for discussion later today. Regards, Donny Chan Financial Controller [22 Marks] Page 6

7 Attachment to Question No. 1 DRAFT COST ESTIMATE (a) Adding an additional passenger lift between G/F and 2/F HK$ Supply and install a passenger lift (based on lift contractor's recent quotation HK$1,000,000 for similar) 1,000,000 (b) Podium facades upgrading by replacing all existing wall tiles (approximate total façade area 1,000 m2) Supply and install new external wall tiles (supply only $300/m2 as suggested by the Architect) 1,000m2 x $360/m2 = 360,000 (c) Fitting out costs of 1-bedroom suites of another serviced apartment HK$/unit Doors 20,000 Partitions 20,000 Floor finishes Bedroom, living room 40,000 Floor finishes Bathroom 10,000 Wall finishes Bedroom, living room 30,000 Wall finishes Bathroom 30,000 Ceiling finishes Bedroom, living room 25,000 Ceiling finishes Bathroom 5,000 Kitchen cabinet 25,000 Furniture 60,000 Sanitary fittings 30,000 Lighting fittings 20,000 AV equipment 30,000 Miscellaneous e.g. curtains, signage, decoration, etc. 20,000 Preliminaries 37,000 Total HK$ 402,000 Page 7

8 Attachment to Question No. 1 (Cont d) Page 8

9 Attachment to Question No. 1 (Cont d) Page 9

10 Attachment to Question No. 1 (Cont d) Page 10

11 Question No. 2 Bulk-checking of Quantities You are a Consultant QS working on a building project. You are asked to carry out a bulk-check exercise on measurement prepared by your assistants. A copy of the draft BQ is attached (Attachment A ). You should provide all working details in your answer and summarize your findings in a logical manner. (Note: You are not required to identify any missing items, if any, from Attachment A ) [13 marks] Page 11

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17 Question No. 3 Editing of BQ Descriptions You are a Consultant QS currently preparing the tender documents for piling works. Your assistant QS, John, has completed a draft BQ (Attachment B ) for your review and editing. You should write notes of comments with reasons for his attention. You are not required to make any adjustment to the quantities. Background information: Type of piles No. of Piles Type of tests Method of measurement : 1.50 m diameter bored piles without lining or bell-out : 10 No. piles : Pending Engineer s specification and items to be added later : In accordance with HKSMM4 Section V(e) Bored Piles (a copy of Pages 33 to 35 is attached) [10 marks] Page 17

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22 Question No. 4 Insurances You are the Consultant QS for a residential building project. The tender documents for the Superstructure Main Contract is scheduled to be issued to the tenderers by the end of the coming month and you have just submitted a draft of the front parts of the tender documents to the Project Manager for comment. It comes to the Project Manager s attention that the Contractors All Risks Insurance of the Works and the Third Party Liability Insurance to be procured by the Contractor as required by your proposed front parts are for different Periods of Insurance. The former is to last till 14 days after Substantial Completion while the latter is to last till the issuance of the Defects Rectification Certificate. The Project Manager doubted if such a variance in the required Periods of Insurances is appropriate. He is thinking of extending the Period of Insurance of the Contractors All Risks Insurance of the Works to cover the entire Defects Liability Period. You are required to draft a letter to advise the Project Manager in this connection. [5 marks] Page 22