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Update 15 published December 2003
Update 14 published September 2003
Update 13 published May 2003
Update 12 published January 2003
Update 11 published October 2002
Update 10 published August 2002
Update 9 published December 2001
Update 8 published October 2001
Update 7 published July 2001
Update 6 published December 2000
Update 5 published October 2000Update 4 published May 2000
Update 3 published December 1999
Update 2 published October 1999
Update 1 published April 1999
Please note:References to the masculine include, where appropriate, the feminine.
Extracts fromParrys Valuation and Conversion Tables, A W Davidson (1989),(Estates Gazette) reproduced by permission of the College of Estate Management
which owns the copyright.
Appendix A, Section 2.3 is reproduced from the Building Cost Information Service publication,
Standard Form of Cost Analysis: Principles, Instructions and Definitions(1969).
Published by RICS Business Services Limited
a wholly owned subsidiary of
The Royal Institution of Chartered Surveyors
under the RICS Books imprint
Surveyor Court
Westwood Business Park
Coventry CV4 8JE
UK
No responsibility for loss occasioned to any person acting or refraining from
action as a result of the material included in this publication can be accepted by the
author or publisher.
ISBN 0 85406 865 1
RICS Business Services Limited (RBS) December 2003. Copyright in all or part
of this publication rests with RBS, and save by prior consent of RBS, no part or parts
shall be reproduced by any means electronic, mechanical, photocopying, recording or
otherwise, now known or to be devised.
Typeset and printed by Q3 Print Project Management Ltd, Loughborough.
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1998 FOREWORD
Knowledge is of two kinds: we know a subject ourselves, or we know
where we can find information upon it.Samuel Johnson (17091784)
The fact that our profession serves a changing world increases the need for
it to rely on well thought-out and reliable practices and procedures. Events
move at an ever-increasing pace, imposing a requirement for quicker
response times. Modern communication methods such as facsimile and now
e-mail result in the need for information to be available almost instantly.
This is made more difficult by an industry growing in complexity and which
is subject to increasing customer expectations in terms of service and
quality.
The RICS has published this Surveyors Construction Handbook to help
surveyors meet these needs. It is intended to become an important source of
reliable information and guidance to all Chartered Surveyors who practise in
construction. Much of the excellent information produced by the divisions
in the past has now been updated for inclusion. Other material not yet
revised will be added. The whole will be regularly reviewed and updated as
necessary. RICS practice panels are continuing to produce information for
inclusion to make it a useful construction reference document.
We hope that this Handbook will become an invaluable aid to yourday-to-day activities.
Christopher Powell,FRICS
P RES IDENT, QUANTITY S URVEYORS DIVIS ION, 1 9 9 7 98
Trevor Mole, FRICS
P RES IDENT, BUILDING S URVEYORS DIVIS ION, 1 9 9 7 98
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ACKNOWLEDGEMENTS
Professor Roy Morledge, Professor of Construction Procurement at The
Nottingham Trent University, for contributing the text of Part 3, Section 1.
Major D.R. Bassett, Royal Engineers, for his contribution to the research
underpinning the construction time charts in Part 3, Section 1; Central Unit for
Procurement, HM Treasury (now Office for Government Commerce), for
permission to use CUP guides extensively in the drafting of Part 1, Section 1
and Part 3, Section 1.
Alan Turner, JP FRICS ACIArb, author of Building Procurement, for
permission to use a number of the diagrams from his text in Part 3, Section 1.
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Page 2 Contents (12/03) The Surveyors Construction Handbook
1Introduction 1
2.1.1 Pre-contract Cost Planning and Cost Management 2
2.1.2 Preliminary Cost Studies and Feasibility Studies 4
2.1.3 Budget 4
2.1.4 The Cost Plan at Outline Proposals Stage 8
2.1.5 The Cost Plan at Scheme Design Stage 11
2.1.6 Cost Checking 13
2.1.7 Action after Receipt of Tenders 14
Appendix A: Sources of Cost Information 1
Appendix B: Format of Budget and Cost Plans 1
Appendix C: Element Unit Quantities Generation for Hypothetical
Buildings 1
Appendix D: Further Reading 1
1Introduction 1
2.2.1 The Client Context 1
2.2.2 The Life Cycle Costing Calculation 5
2.2.3 Tax Allowances, Incentives and Business Rates 10
2.2.4 Data Sources 14
2.2.5 Worked Examples 15
Appendix A: Residual Values 1
Appendix B: Obsolescence 1
Appendix C: Costs And Values 1
Appendix D: Glossary of Terms for Taxation 1
Appendix E: Examples of Items of Expenditure Likely to Attract
Taxation Allowances 1
Appendix F: Further Reading 1
1Introduction 1
2.3.1 Elements 1
2.3.2 Elemental Cost Analysis 1
2.3.3 Other Uses 2
Appendix A: BCIS Standard Elements 1
1Introduction 1
2.4.1 Background 2
2.4.2 Contract Documentation 3
2.4.3 Additional Services 3
2.4.4 Employers Requirements and Contractors Proposals
(including contract sum analysis) 5
2.4.5 Design and Build Variants 6
2.4.6 Novation 8
Appendix A: Potential Services Associated with the Role
of Employers Agent 1
Appendix B: Employers Requirements/Contractors Proposal Checklist 1
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The Surveyors Construction Handbook Contents (12/03) Page 3
1Introduction 1
2.5.1 Definitions: The Difference Between a Project Manager and
Lead Consultant 1
2.5.2 Benefits of Appointing a Chartered Surveyor as Lead Consultant 22.5.3 Issues to Consider before Undertaking the Role 3
2.5.4 Schedule of Lead Consultant Duties 3
1Introduction 1
2.6.1 Technology Swaps 2
2.6.2 How Can the Environment and Sustainability be Valued? 3
2.6.3 How Does This Effect the Construction Industry? 4
2.6.4 Green Building Materials 7
2.6.5 Whole Building Sustainability 8
2.6.6 The Government Line 9
2.6.7 What Might the Future Hold 11Appendix A: Embodied Energy Content of Building Material 1
Appendix B: Useful Addresses 1
1Introduction 1
3.1.1 The Clients Role 2
3.1.2 Procurement Strategy 12
3.1.3 Selection of Most Appropriate Procurement Strategy 25
3.1.4 Implementation 29
Appendix A: Procurement Options 1
1Introduction 1
3.2.1 Appointing the Building Services Designer 3
3.2.2 Design Coordination 11
3.2.3 Appointing a Building Services Contractor 19
3.2.4 Tender Documents 34
Appendix A: Typical Example 1
1Introduction 1
4.1.1 What Happens in Practice 1
4.1.2 Standard Form Approaches 3
4.1.3 Effects of Practical Completion 13
4.1.4 Methods for Dealing with Practical Completion 14
4.1.5 Definitions 16
4.1.6 Subsidiary Issues 20
Appendix A: General Objectives to be Achieved at Practical
Completion for Small to Medium-sized Building Projects 1
Appendix B: Table of Cases 1
Appendix C: Further Reading 1
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Page 4 Contents (12/03) The Surveyors Construction Handbook
1Introduction 1
4.2.1 General Principles 1
4.2.2 Definitions 44.2.3 Entitlement 4
4.2.4 Ascertainment 7
4.2.5 Admissible Items 9
4.2.6 Inadmissible Items 13
Appendix A: Ascertaining the Cost of Running a Site 1
Appendix B: Disruption 1
Appendix C: Ascertaining the Cost of Head Office Overheads 1
Appendix D: Checklist of Items for which Loss and/or Expense are
Allowed 1
Appendix E: Checklist of Steps Required when Considering
Submissions by Contractor 1
Appendix F: Further Reading 1
1Introduction 1
4.3.1 Definitions 2
4.3.2 The Rationale for Risk Management in the Construction Process 2
4.3.3 The Risk Management Process 5
4.3.4 Summary 14
Appendix A: Further Reading 1
1Introduction 1
4.4.1 Valuations 1
4.4.2 Assumptions 2
4.4.3 Valuation Under a JCT Contract: Background 3
4.4.4 Recommended Action at the Start of a Contract 4
4.4.5 Communications 5
4.4.6 Approach 6
4.4.7 Content of a Valuation 8
4.4.8 Administration 15
4.4.9 Special Situations 16
4.4.10 Other Contract Terms (relative to valuations) 17
4.4.11 Valuations Under Other Forms of Contract 18
Appendix A: Further Reading 1
Appendix B: JCT Definition of Reasonable Proof 1Appendix C: Example of Priced Activity Schedule 1
1Introduction 1
4.5.1 Extension of Time Clauses 2
4.5.2
