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Quantity Surveying Division Assessment of Professional Competence Final Assessment 2018 Practice Problems

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QUANTITY SURVEYING DIVISION

ASSESSMENT OF PROFESSIONAL COMPETENCE

FINAL ASSESSMENT 2018

PRACTICE PROBLEMS

Tuesday, 18th September, 2018


THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 18 SEPTEMBER 2018
PRACTICE PROBLEMS

1.0 NOTES TO CANDIDATES

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

1.2 The number of main questions is as follows:

(a) First day – Questions with varying marks totalling 50 marks


(b) Second day – Questions with varying marks but totalling 50 marks

DAY 1

Question No. 1 Cost Estimate 15 marks


Question No. 2 Cost Analysis 15 marks
Question No. 3 Bills of Quantities Editing 10 marks
Question No. 4 Contract Procurement 10 marks
---------------
50 marks
---------------

1.3 All Main Questions and Sub-Questions are compulsory.

1.4 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.

1.5 Refer also to INSTRUCTIONS TO CANDIDATES, which were issued to you


in advance.

Page 2
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 18 SEPTEMBER 2018
PRACTICE PROBLEMS

2.0 FIVE COMMON CRITERIA

2.1 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.

(a) 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.

(b) Imagination: The assumption of essential supplementary


information so as to provide a full response; also the use of
imaginary telephone inquiries, quotations, notes, etc.

(c) 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.

(d) 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.

(e) 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
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 18 SEPTEMBER 2018
PRACTICE PROBLEMS

Abbreviations

The following abbreviations used in the Notes to Assessors mean:

SFBC 2005 Agreement & Schedule of Conditions of Building Contract for


use in the Hong Kong Special Administrative Region, Private
Edition - With Quantities 2005 Edition

SFBC 2006 Agreement & Schedule of Conditions of Building Contract for


use in the Hong Kong Special Administrative Region, Private
Edition - Without Quantities 2006 Edition

GCC 1999 General Conditions of Contract for Building Works 1999 Edition
published by the Government of the Hong Kong Special
Administrative Region.

Candidates should clearly state the standard form of contract upon which their
answers are based.

Page 4
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 18 SEPTEMBER 2018
PRACTICE PROBLEMS

Question No. 1 – Cost Estimate

You are the in-house quantity surveyor of property owner Hubbo. Hubbo is
planning to refurbish its existing industrial building in Kowloon Bay to attract more
affordable tenants. The whole building will be vacated before refurbishment.

The schematic design of G/F, 1/F and 2/F was reviewed this morning between
Hubbo and the designer. The following two proposals i.e. P1 and P2 have been
identified for further study:

P1. Add two pairs of escalators connecting G/F, 1/F and 2/F to attract F&B
tenants and convert the areas around the escalators to public foyers on the
three floors. Refer to Attachment A showing the proposed changes. The
storey height is 6.5m for G/F and 5m for 1/F and 2/F. There is no basement.

Further upgrade to the building services main equipment or service mains is


not required. Modern but not extravagant finishes are to be used. New
building services installations are to be installed there. Refurbishment costs
beyond the public foyers or on the façade can be excluded.

You are required to estimate the cost implication of this proposal. You may
need to talk to the designer for further details. Record any backup
discussions or assumptions.
[10 marks]

P2. Build a footbridge 15m long x 4m wide on 2/F across road to connect to an
existing commercial development also owned by Hubbo and having a
connectable lobby also on 2/F. You are required to prepare a query list of 10
items to clarify the choices of design and scope of work which may affect the
costs very differently, and deserve attention for discussion with the Project
Director and the designer. Cost estimate is not required at this moment. It
would be premature to ask for structural member sizes.
[5 marks]

Please write an email to your Project Director furnishing your advice.

[total 15 marks]

Page 5
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 18 SEPTEMBER 2018
PRACTICE PROBLEMS

Question No. 1 – Cost Estimate (Cont’d)

Attachment A - Proposed Changes (layout not changed except as indicated)

Page 6
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 18 SEPTEMBER 2018
PRACTICE PROBLEMS

Question No. 2 – Cost Analysis

Developer Bumba recently won a land bid for a commercial site. Bumba is going
to develop it into an office building – Project X. Bumba has just appointed your
firm as the consultant QS.

Project X particulars:
 Site area = 2,000m2
 No. of storeys = 40 (no basement)
 Typical floor-to-floor height = 4.2m
 Typical floor area = 1,500m2

You are required to respond to the email below from Bumba’s Commercial
Manager.

Dear QS,

The design team is studying two structural frame options: A) In-situ reinforced
concrete frame; and B) Composite steel frame i.e. steel columns and beams with
in-situ reinforced concrete core. Pre-stressing or post-tensioning is not considered
at this moment.

1. Please estimate the structural cost difference between these two options.
Please show your build-up of the elemental cost per m2 construction floor area
(CFA) with assumptions in the absence of structural design information. The
effects on the substructure and foundations can be excluded.

Project S is another project which is a reinforced concrete office building.


Project S and Project X are very similar in terms of CFA, no. of storeys, typical
floor area and floor height.

Attachment S is the BQ extracted from the Main Contract of Project S for your
estimation of structural option A. The BQ quantities have no error but the rates
would need careful review.
[10 marks]

2. Apart from the structural frame, please advise on the very different impacts of
using composite steel frame instead of reinforced concrete frame on the rest of
the construction costs and procurement.
[5 marks]

Thanks.

CM Lee

[total 15 marks]

Page 7
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 18 SEPTEMBER 2018
PRACTICE PROBLEMS

Page 8
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 18 SEPTEMBER 2018
PRACTICE PROBLEMS

Page 9
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 18 SEPTEMBER 2018
PRACTICE PROBLEMS

Page 10
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 18 SEPTEMBER 2018
PRACTICE PROBLEMS

Page 11
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 18 SEPTEMBER 2018
PRACTICE PROBLEMS

Question No. 3 – Bills of Quantities Editing

You are the consultant QS of a project for the construction of a proposed


landscaped walkway over 4,800 m2 site area in Kwun Tong. The Tender
Documents are to be issued on 21 September 2018. The tender shall be “Lump
Sum” with BQ for executing the Works in accordance with the Contract.

Your subordinates have completed the attached draft Bill No. 3. The piling and
excavation works are subject to remeasurement. Please edit and bulk check the
bill with reference to HKSMM4 (without amendments by Preambles) and give the
marked copy and/or separate notes to your subordinates for discussion.

[10 marks]

Page 12
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 18 SEPTEMBER 2018
PRACTICE PROBLEMS

BILL NO. 3
LANDSCAPED WALKWAY

Item Description Quantity Unit Rate Amount

BILL NO. 3
LANDSCAPED WALKWAY

Notes
1. Finishes and waterproofing to walkway
are measured under Bill No. 4;
2. Electrical and fire services installations
(except external lighting pole
and fittings) are measured separately.

PILING

PRE-BORED SOCKETED STEEL H-PILES

Plant

Providing and assembling on the Site and


the subsequent dismantling and removal

A Piling equipment - Set

Boring

Boring the pile holes

B Steel H-piles; 305 x 305 x 323 kg/m; 140 m


not exceeding 10.00 m long
(In 14 No.)

C Steel H-piles; 305 x 305 x 223 kg/m; raking 20 m


total length in stages of 10.00 - 15.00 m
long (In 4 No.)

Permanent steel casings

Supply and install steel casings for

D Steel H-piles; 305 x 305 x 323 kg/m; 35 m


(In 4 No.)

E Steel H-piles; 305 x 305 x 223 kg/m; raking 145 m


(In 4 No.)

Page 13
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 18 SEPTEMBER 2018
PRACTICE PROBLEMS

BILL NO. 3
LANDSCAPED WALKWAY

Item Description Quantity Unit Rate Amount

Supplying, handling, transporting, pitching,


driving and withdrawing steel casings;
boring or excavation; including removal of
underground obstructions; removal of bored
or excavated materials

A Steel H-piles; 305 x 305 x 223 kg/m; 906 m


(In 14 No.)

B Steel H-piles; 305 x 305 x 223 kg/m; raking 175 m


not exceeding 15 degrees from vertical
(In 4 No.)

Grouting

Grouting to pile holes for

C Steel H-piles; 305 x 305 x 223 kg/m; 194 m


(In 14 No.)

D Steel H-piles; 305 x 305 x 223 kg/m; raking 69 m


not exceeding 15 degrees from vertical
(In 4 No.)

Capping plates to pile heads

Steel plates

E Size 600 x 600 x 60 mm thick (In 8 No.) 1,355 kg

Reinforcing starter bars to pile heads

Ribbed steel reinforcing bars;


general reinforcement

F 45 mm diameter 6,591 kg

Pile head treatments


Cutting off heads of pile; straightening or
bending and cleaning projecting
reinforcement; removing debris from site

G 219 mm diameter 18 nr

Page 14
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 18 SEPTEMBER 2018
PRACTICE PROBLEMS

BILL NO. 3
LANDSCAPED WALKWAY

Item Description Quantity Unit Rate Amount

PILE CAPS

EXCAVATION (ALL PROVISIONAL)

Excavating

Excavation for pile caps; commencing at


existing ground level; including temporary
shoring and supports

3
A 1.50 - 3.00 m deep 143 m

Filling

Excavated material

B backfilling to excavation; depositing


3
and compacting in 300mm thick layers 73 m

Disposal

Surplus excavated material

C removing from site to approved


3
dumping area 80 m

CONCRETE WORKS

IN-SITU CONCRETE

Concrete; grade 20/20

Blinding under foundations and beams

2
D 75 mm thick 10 m

Page 15
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 18 SEPTEMBER 2018
PRACTICE PROBLEMS

BILL NO. 3
LANDSCAPED WALKWAY

Item Description Quantity Unit Rate Amount

Reinforced concrete; grade 25/20

3
A pile caps 157 m

3
B tie beams 76 m

3
C suspended slabs; 300mm thick 1,440 m

REINFORCEMENT

Ribbed steel reinforcing bars

General reinforcement

D 32 mm diameter in pile caps 4,512 kg

bar diameter of any size in tie beams


E 68,373 kg
and slabs

FORMWORK

Fair-faced formwork

Vertical surfaces

2
F pile caps 84 m

2
G sides of tie beams and slabs 73 m

Flat surfaces

2
H soffits of suspended slabs 9,600 m

Page 16
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 18 SEPTEMBER 2018
PRACTICE PROBLEMS

BILL NO. 3
LANDSCAPED WALKWAY

Item Description Quantity Unit Rate Amount

PLASTERING AND PAVING (INTERNALLY)

Spatterdash

2
A concrete floor surfaces 4,800 m

Worked surface finishes on concrete

2
B finished with steel trowelled floor 4,800 m

STEEL AND METAL WORKS

Sundries

C External lighting fittings "SF2" with 4 nr


stainless steel mounting poles;
4.5m high; including excavating
trenches for pipe ducts, footing,
concrete beds, armoured cables
and backfilling

To Summary HK$

[10 marks]

Page 17
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 18 SEPTEMBER 2018
PRACTICE PROBLEMS

Question No. 4 – Contract Procurement

You are the consultant QS of a 2-storey warehouse development in Tai Po. The
procurement approach is intended to be lump sum contract based on drawings
and specification, with payment to the Contractor on a milestone basis. Tender
documents have been prepared and are ready for tendering.

The Employer has set a tight time frame for completing the development.
Furthermore, the budget for the development is tight and it is difficult for the
Employer to raise additional finance if the budget is exceeded. Accordingly, the
design consultants and you have already worked together to arrive at a completed
and cost-effective design for the development.

In order to ensure the development be completed within the tight budget and on
time, the Project Manager has just recommended the Employer to change the
current contractual arrangement by adopting target cost contract with a pre-
determined pain/gain share arrangement.

The Project Manager believes that cost savings and early completion can be
achieved if target cost contract is adopted, and accordingly the development can
be completed within the tight budget and timeframe.

Having said that, the Employer is unsure whether the said benefits of using target
cost contract is applicable to the warehouse development and would like you to
advise on the following in the form of a letter:

(a) Additional requirements to be included under the current tender documents if


target cost contract is adopted; and
[5 marks]

(b) Your recommendation on whether target cost contract should be adopted for
this warehouse development.
[5 marks]

[total 10 marks]

END OF PAPER

Page 18
QUANTITY SURVEYING DIVISION

ASSESSMENT OF PROFESSIONAL COMPETENCE

FINAL ASSESSMENT 2018

PRACTICE PROBLEMS

Wednesday, 19th September, 2018


THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 19 SEPTEMBER 2018
PRACTICE PROBLEMS

1.0 NOTES TO CANDIDATES

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

1.2 The number of main questions is as follows:

(a) First day – Questions with varying marks totalling 50 marks


(b) Second day – Questions with varying marks but totalling 50 marks

DAY 2

Question No. 1 Valuation of Variations 12 marks


Question No. 2 Disruption Claims 15 marks
Question No. 3 Site Possession 10 marks
Question No. 4 Nominated Sub-Contract 13 marks
---------------
50 marks
---------------

1.3 All Main Questions and Sub-Questions are compulsory.

1.4 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.

1.5 Refer also to INSTRUCTIONS TO CANDIDATES, which were issued to you


in advance.

Page 2
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 19 SEPTEMBER 2018
PRACTICE PROBLEMS

2.0 FIVE COMMON CRITERIA

2.1 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.

(a) 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.

(b) Imagination: The assumption of essential supplementary


information so as to provide a full response; also the use of
imaginary telephone inquiries, quotations, notes, etc.

(c) 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.

(d) 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.

(e) 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
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 19 SEPTEMBER 2018
PRACTICE PROBLEMS

Abbreviations

The following abbreviations used in the Notes to Assessors mean:

SFBC 2005 Agreement & Schedule of Conditions of Building Contract for


use in the Hong Kong Special Administrative Region, Private
Edition - With Quantities 2005 Edition

SFBC 2006 Agreement & Schedule of Conditions of Building Contract for


use in the Hong Kong Special Administrative Region, Private
Edition - Without Quantities 2006 Edition

GCC 1999 General Conditions of Contract for Building Works 1999 Edition
published by the Government of the Hong Kong Special
Administrative Region.

Candidates should clearly state the standard form of contract upon which their
answers are based.

Page 4
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 19 SEPTEMBER 2018
PRACTICE PROBLEMS

Question No. 1 – Valuation of Variations

You are the consultant QS of a sports centre project. The Employer has awarded
the piling and superstructure works under a single contract where the Works
(except the foundation works) are to be designed by the Architect while the
foundation works are to be designed by the Contractor. The Contract included a
set of Bills of Quantities for the superstructure part while the Contractor was
required to submit a lump sum price with quantity and rate breakdown for the
foundation works in the tender (refer to Attachment A for part of the breakdown).

At the tender stage, apart from the provision of a loading schedule for the piles to
support, the Project Structural Engineer has prepared a design for the piling and
incorporated the same as part of the Tender Booklet for tenderers' reference. The
piling design was marked “for reference only”, which comprised 200 No. 305 x 305
x 180 kg/m driven steel H piles with an average length of 35m.

One week after the Commencement of the Works, the Project Structural Engineer
issued a Site Instruction No. SE-002 to revise the loading schedule. The
Contractor, based on the revised loading schedule, prepared and submitted a
revised piling schedule.

At the following site meeting, the Contractor reported that the revised piling
schedule came up with 190 No. 305 x 305 x 180kg/m driven steel H piles with an
average length of 35m, and submitted a quotation for a net addition of $700,000 to
the Contract Sum (refer also to Attachment A).

The Project Structural Engineer subsequently carried out a check and agreed to
the Contractor's submitted revised design but has query about the cost implication
of the variation. In his opinion, the variation should result in a cost reduction for 10
No. of piles, when compared with the original design.

The Project Manager asks for your opinion on the above. You are required to
provide a contractual analysis and advise on the proper fact finding approach to
deal with the issue. The Project Manager is a meticulous person and would not be
satisfied with a simple broad-brush answer.

[12 marks]

Page 5
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 19 SEPTEMBER 2018
PRACTICE PROBLEMS

Question No. 1 – Valuation of Variations (Cont’d)

Attachment A

Extract from the Contractor’s quantity and rate breakdown for foundation works in
the accepted tender:

Item Description Quantity Unit Rate ($) Total ($)


A 305 x 305 x 180 kg/m 7,000 m 4,000 28,000,000
Piles No. 1-200

Quotation for Site Instruction No. SE-002

Item Description Quantity Uni Rate ($) Total ($)


t
Omissions
A Driven steel H piles (305 x 6,475 m 4,000 (25,900,000)
305 x 180 kg/m)
= 185No. x 35m
Additions
B Driven steel H piles (305 x 6,650 m 4,000 26,600,000
305 x 180 kg/m)
= 190No. x 35m
C Nett addition 700,000

Page 6
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 19 SEPTEMBER 2018
PRACTICE PROBLEMS

Question No. 2 – Disruption Claims

You are the consultant QS of a commercial redevelopment project. Your Client’s


Project Manager, Mr. Chan has just received a claim for extension of time of 15
days and monetary compensation amounting to HK$500,000 for a series of
disruptions to the regular progress of the Contractor’s works. Mr. Chan considers
the claim unreasonable and superfluous and has written to you for your advice.
Mr. Chan’s email is given below: -

Hi,

I refer to the Contractor’s claim submitted last week claiming extension of time of
15 days and an extravagant amount of HK$500,000. Having studied the
Contractor’s submission, I am of the view that the claim is unjustifiable under the
Contract and shall be struck out at once for the following reasons: -

1. Although there is no dispute that the disruptions were caused by the late
release of information by the Architect, most of such disruptions indeed ran
parallel with the Contractor’s own delay. The Contractor would still have
been in delay had there been no late release of information causing the
said disruptions. As such, no extension of time shall be granted.
[5 marks]

2. By the same token, the Contractor shall not be entitled to any monetary
compensation for disruptions which run concurrently with the Contractor’s
own delay.
[5 marks]

3. Although the Contractor has served an extension of time and loss &
expense claim in accordance with the Contract, the particulars submitted by
the Contractor, though appearing to be comprehensive in terms of volume,
are not satisfactory as they do not cover the FULL details of each of the
particulars of the claim.
[5 marks]

Could you please look into this and give me your advice for my further discussion
with our Finance Director?

In your reply to Mr. Chan, you should analyze the contractual position with
reference to the relevant clauses of the Contract and advise whether there are
sufficient grounds to strike out the Contractor’s claim.

[total 15 marks]

Page 7
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 19 SEPTEMBER 2018
PRACTICE PROBLEMS

Question No. 3 – Site Possession

A building development comprises one Foundation Contract and one


Superstructure Contract. The works of the Foundation Contract are in progress
whereas the Superstructure Contract has been awarded two weeks ago and the
possession date of the Site has been confirmed to be one month from the date of
the award of the Superstructure Contract (i.e. two weeks from now) according to
the Employer’s letter of acceptance.

In the Superstructure Contract, the Particular Specification contains the following


Clause 1.20 and Clause 1.21:

“Clause 1.20 - The possession date of the Site as stated elsewhere in the
Contract is for indication only. No monetary claim in connection
therewith will be entertained.”

“Clause 1.21 - Notwithstanding any provisions provided to the contrary, the


Architect shall have the right to issue an instruction for the addition
of foundation works to the Contract. The Contractor shall comply
with such instruction and complete the Works to the satisfaction of
the Architect. No monetary claim in connection therewith will be
entertained.”

Now two weeks later after the award of the Superstructure Contract, the Structural
Engineer just reported today that the foundation works were in serious trouble. A
number of critical footings without piles had been found to have been constructed
incorrectly and would require complete removal. It is expected that, with due
diligence, the foundation works can only be completed in 6 weeks, i.e. about 4
weeks later than the one month anticipated in the letter of acceptance. Another
big trouble is that the Foundation Contractor has already been in financial
difficulties. He may not be able to bear the costs of rectification of the footings and
may slow down or go bankrupt.

Page 8
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 19 SEPTEMBER 2018
PRACTICE PROBLEMS

Question No. 3 – Site Possession (Cont’d)

You are not related to the project at all. The Employer has just called you after
hearing the report by the Structural Engineer, and requested you to act as a devil’s
advocate to critically see whether Particular Specification Clause 1.20 and Clause
1.21 are able to protect him from monetary claims that may be submitted by the
Superstructure Contractor when either of the following situations occurs:

(i) The Foundation Contractor still survives with financial support by the
Employer and the remaining foundation works can be completed in 6 weeks
from now for handover to the Superstructure Contractor.

(ii) The Foundation Contractor becomes bankrupt and the Superstructure


Contractor is then instructed to finish the remaining foundation works under
the Superstructure Contract.

Please provide your advice in a letter and explain your reasons with reference to
relevant contract provisions.
[10 marks]

Page 9
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 19 SEPTEMBER 2018
PRACTICE PROBLEMS

Question No. 4 – Nominated Sub-Contract

You are the consultant QS of a residential development project.

6 weeks after the award of the Main Contract to Smart Build Construction Co. Ltd.
(“Smart Build”), the Architect issued an instruction to Smart Build which requires
Smart Build to enter into a Nominated Sub-Contract with Bravo Engineering Co.
Ltd. (“Bravo”) for the Supply and Installation of MVAC Works.

Within 3 days from the receipt of the Architect’s instruction, Smart Build wrote to
the Architect rejecting the nomination of Bravo as the MVAC Nominated Sub-
Contractor on the following grounds: -

1. As shown in Bravo’s submitted programme, the delivery of the chiller at


Basement Level 1 is two months later than the scheduled date as per Smart
Build’s master programme which has been approved by the Architect last
week. The late delivery of the chiller will affect the completion of the ground
slab which falls on the critical path on the approved master programme.

2. Smart Build noted that the Prime Cost Sum for MVAC provided in the Bills of
Quantities is HK$50 million while Bravo’s tender sum is HK$45 million only.
Bravo’s financial capability of completing the MVAC works is therefore
questionable. Furthermore, Smart Build considers that he has suffered a loss
of profit due to the difference between the Prime Cost Sum and the awarded
Sub-Contract Sum.

3. In one piece of the tender correspondence exchanged between the Employer


and Bravo, Bravo qualified that the liquidated damages for the delayed
completion of the MVAC Nominated Sub-Contract shall be HK$50,000 per
day. However, the liquidated damages stipulated in the Main Contract for
delayed completion is HK$100,000 per day. Smart Build does not accept such
a qualification.

The Architect has just called you to request you to send him an email advising the
relevant contract provisions by noon tomorrow.

Page 10
THE HONG KONG INSTITUTE OF SURVEYORS
QUANTITY SURVEYING DIVISION
ASSESSMENT OF PROFESSIONAL COMPETENCE
TH
FINAL ASSESSMENT – 19 SEPTEMBER 2018
PRACTICE PROBLEMS

Question No. 4 – Nominated Sub-Contract (Cont’d)

You know that: -

1. In the Letter of Nomination issued by the Employer to Bravo, no method


statement and programme submitted during the tendering period shall
form part of the MVAC Sub-Contract.

2. As stated in the Appendix to the MVAC Nominated Sub-Contract


Conditions, the Sub-Contract Works are to be carried out at the same time
as the Main Contract Works with no separate completion date.

3. There is no qualification, other than that on liquidated damages, spotted in


Bravo’s tender.

[13 marks]

END OF PAPER

Page 11

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