Assignment - Report

SCHOOL OF ARCHITECTURE · BUILDING · DESIGN
Centre for Modern Architecture Studies in Southeast Asia
Bachelor of Quantity Surveying (Honours)
PROFESSIONAL PRACTICE [QSB 3614]
1. This assignment shall make up 15% weightage of the final marks.
2. This is a group assignment and shall be submitted in groups of 7 students.
3. Dateline for submission of this Coursework No. 2 is on or before 14th May 2018.
Coursework No. 2 – Preparation of Final Account.
You are appointed as the consulting Quantity Surveyor for a apartment project based on PAM
Form of Contract 2006 (With Quantities). The summary of the Contract Sum is as follows:
Bill No. 1 – Preliminaries RM 5,250,000.00
Bill No. 2 – Building Works RM 50,450,000.00
Bill No. 3 – Local Infrastructure Works RM 6,500,000.00
Bill No. 4 – P.C. and Provisional Sums RM 9,600,000.00
Contract Sum RM 71,800,000.00
Question 1.
You are required to prepare a report to your director, explaining briefly the adjustments of the
essential elements in your preparation of this project’s final account.
(15 marks)
Question 2.
The tender drawings shows that the apartment has an entrance porch on the layout but no
details were provided sufficiently for measurement of quantities. The Quantity Surveyor then
had suggested that these items be listed as Provisional Sum. However you have forgot about
this item and did not include it in your tender document. The contract was awarded without
it. Your director would also like to know the significance and contractual implications of this
omission.
(10 marks)
Question 3.
In accordance with clause 30.10 of the contract, the contractor duly submitted his Final Accounts
within 6 months after the issuance of the Certificate of Practical Completion. You are then
required to assess this application and prepare the Final Account for the apartment project
based of the following valuations and adjustments made to the Contract Sum:
(35 marks)
1

Information provided (For question 3) are as follows:
a. The Architect had granted the Contractor’s first application for extension of time and
approved additional insurance premium amounting to RM 10,000.00 in accordance with
clause 24 of the contract due to the delay in the completion of the works caused by the
Employer’s late decision on the toilet design.  
 
In his second application for extension of time, the Contractor submitted an an
application for extension of time due to exceptionally inclement weather and a loss and
expense claim for RM200,000.00 in his Final Accounts to you. The Architect approved
the extension of time as per Clause 23.8 but not the Contractor’s loss & expense claims.
b. There are four variation orders carried out by the Contractor:
Addition Omission
i. Variation Order No. 1: RM 500,000.00 RM 300,000.00
Changes of entrance lobby from
floor tiles to granite floor
ii. Variation Order No. 2: RM 300,000.00 -
New Guard house.
iii. Variation Order No. 3:
Changes from concrete block RM 400,000.00 RM 200,000.00
drains to precast concrete culverts
iv. Variation Order No. 4:
Omission of hand railings to yard. - RM 86,000.00
c. The following are the nominated sub-contractor’s accounts:
Original P.C. & NSC’s
Provisional Sums final account
i. Lift Services: RM 1,500,000.00 RM 1,700,000.00
Profit @ 2% RM 30,000.00
Attendance as item RM 30,000.00
ii. Air Conditioning Services: RM 2,200,000.00 RM 2,000,000.00
Profit @ 2% RM 44,000.00
iii. Electrical Services: RM 2,600,000.00 RM 2,700,000.00
Profit @ 2% RM 52,000.00
iv. Provisional Sums: Entrance Porch RM 1,000,000.00 RM 1,250,000.00
v. Contingency Sum RM RM 2,048,000.00
RM 9,600,000.00 
2

Question 4.
On a different project, you were asked to explain the basis on how the following variations may
be finalised and priced during the Final Account stage:
a. The Contractor had priced RM 160,000.00 for the Contractor All Risk Insurance policy in
the Preliminaries Bills. The Contractor failed to purchase this insurance when the works
commence. The Employer, then, bought and paid for the said insurance for RM
180,000.00 on behalf of the Contractor.
(10 marks)
b. Contractor is required to provide a desktop computer in the Preliminaries section for the
Resident Engineer’s use but this item was left unpriced, i.e. BQ item was left blank in the
rate/amount column in the contract document. However the Architect instructed the
Contractor to provide a laptop computer costing RM10,000.00 for the Resident Engineer
instead of the desktop computer as specified in the Preliminaries.
(10 marks)
c. A wash trough as required and priced in the Preliminaries section was not constructed
due to site constraints imposed later by the Employer. However, the vehicles leaving the
site during construction were always kept clean including the public roads using water jet
washing and full-timed workers.
(10 marks)
d. Mistake was made in the price for excavation through rocks at RM 50 per m3. Item was
not rationalised during contract documentation. However, original quantity in BQ is 100
m3 but re-measured as-built quantity was 20,000 m3. The Contractor submitted a claim
for revised rates of RM 150 per m3 for the total quantity of 20,000 m3.
(10 marks)
3

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