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07-Str-B2 · May 2014

Question 1 of 6: Estimating and Bidding — RS Means unit costs and crew-based duration

Nivaar worked solution (AI-drafted; not reviewed by a licensed engineer)

Notes on this paper

National Examinations — May 2014 — 07-Str-B2 Management of Construction. Three hours, closed book; candidates may use one of the two approved calculators (Casio or Sharp). The paper prints six questions of equal value (20 marks each) and states that any five questions constitute a complete paper, only the first five appearing in the answer book being marked. Candidates are urged to submit a clear statement of any interpretive assumptions with their answers. All six questions are worked below, because this set is intended as a study resource rather than as a single exam sitting.

Reference texts: RSMeans, Building Construction Cost Data — the "How to Use the Cost Data" front matter, which defines daily output, labour-hours, bare costs and the Total Incl. O&P column used in Question 1; Halpin, D.W. & Senior, B.A., Construction Management (4th ed., Wiley) — unit-price estimating, crew balancing, labour relations and construction safety; Hegazy, T., Computer-Based Construction Project Management (Prentice Hall) — precedence networks with SS/FS/FF relationships and lags, which is exactly the notation of Question 2; Hendrickson, C. & Au, T., Project Management for Construction (2nd ed., Carnegie Mellon) — scheduling and cost control; Sullivan, W.G., Wicks, E.M. & Koelling, C.P., Engineering Economy (17th ed., Pearson) — present-worth analysis and the maximum-justified-investment problem of Question 4; Canadian Construction Documents Committee, CCDC 2 — Stipulated Price Contract (2020), General Conditions 6.5 (delays) and 6.6 (claims for a change in Contract Price); Goldsmith, I. & Heintzman, T.G., Goldsmith on Canadian Building Contracts (5th ed., Thomson Reuters) — delay and notice law in Canada; AACE International, Recommended Practice 29R-03: Forensic Schedule Analysis — the but-for and windows methods named in Question 5; British Columbia Labour Relations Code, RSBC 1996 c. 244 — certification, bargaining units and the construction-industry provisions behind Question 3; WorkSafeBC, Occupational Health and Safety Regulation (Parts 4, 8, 11, 18 and 20) and the BC Workers Compensation Act — the prime-contractor duty and the traffic-control, fall-protection and hazardous-substance rules behind Question 6.

Check — two readings taken from the printed page. The RS Means extract in Question 1 prints two cells as question marks; both are recovered below from the crew table, and the recovered labour-hour figure is checked against the printed $27 labour column before it is used. Two arrows leave the right-hand edge of activity D and turn vertically to reach E and C; they are read here as ordinary finish-to-start links, which is the only reading consistent with the drawing and with the fact that every unlabelled arrow on the sheet carries no lag.

Question 1: Estimating and Bidding — RS Means unit costs and crew-based duration (20 marks)

Question text not reproduced: the examination questions are © Engineers and Geoscientists BC. Open the official past paper (linked at the top of this page) to read the question, then follow the worked solution below.

Given.

QuantitySymbolValue
Daily output of crew D-7$Q_d$13.94 m2/day
Crew D-7 composition—1 tile layer + 1 helper
Crew labour-hours per day$H_c$16 L.H./day (2 workers × 8 h)
Bare material cost$c_m$$48.50 / m2
Bare labour cost (printed)$c_L$$27.00 / m2
Bare total (printed)—$75.50 / m2
Bare cost per labour-hour$r_b$$23.55 / L.H.
Cost per labour-hour incl. O&P$r_o$$34.83 / L.H.
New job quantity$Q$1250 m2
Local bare wage, tile layer$w_1$$30.00 / h
Local bare wage, helper$w_2$$23.00 / h
Planned local crew—3 tile layers + 2 helpers

Find. (a) The two cells printed as question marks — the labour-hours per square metre and the Total Incl. O&P unit price; (b) the construction cost and the calendar duration of 1250 m2 of the same work executed by a five-worker local crew paid at local bare rates.

Approach. Recover the productivity constant that ties the RS Means line together — labour-hours per unit — from the crew's daily labour-hours and its daily output, check it against the printed labour column, use it to rebuild the Total Incl. O&P price, and then carry the same constant across to the new job, where only the crew size and the wage rates have changed.

  1. Recover the missing labour-hours per unit. The RS Means labour-hours column reports the crew hours consumed per unit of finished work, which is simply the crew's daily labour-hour content divided by what the crew produces in that day: $$H_u=\frac{H_c}{Q_d}=\frac{16\ \text{L.H./day}}{13.94\ \text{m}^2\text{/day}}=\boxed{1.148\ \text{L.H./m}^2}$$ The crew table confirms the numerator directly: it is footed “16 L.H., Daily Totals”, which is one tile layer plus one helper, each for an eight-hour shift.
  2. Check the recovered value against a printed cell. A productivity figure recovered from one part of the table must reproduce the rest of it. Multiplying the labour-hours per unit by the bare cost per labour-hour must return the printed bare labour column: $$c_L=H_u\,r_b=1.1478\times 23.55=\$27.03\ \text{/m}^2\approx\$27\ \checkmark$$ and the printed bare total agrees as well, since $48.50+27.00=\$75.50$ per square metre. The recovered 1.148 L.H./m2 is therefore the number RS Means used.
  3. Rebuild the Total Incl. O&P unit price. RS Means loads the two cost components differently. Bare material is marked up 10 % for handling and profit, while labour is carried at the crew's own incl.-O&P rate, which already contains payroll burden, workers' compensation, overhead and profit. Taking the two in turn, $$c_{m,o}=1.10\,c_m=1.10\times 48.50=\$53.35\ \text{/m}^2$$ $$c_{L,o}=H_u\,r_o=1.1478\times 34.83=\$39.98\ \text{/m}^2$$ There is no equipment in this line, so the two components are the whole price: $$\text{Total Incl. O\&P}=53.35+39.98=\boxed{\$93.33\ \text{/m}^2}$$ which RS Means would print as roughly $93.50 after its own rounding.
  4. Carry the productivity constant to the new job. Labour-hours per unit is a property of the work and the method, not of how many workers are sent to do it. Enlarging the crew therefore multiplies the daily output but leaves $H_u$ alone. The total labour content of the new job is $$W=Q\,H_u=1250\times 1.1478=1434.7\ \text{L.H.}$$
  5. Size the local crew and get the duration. Three tile layers and two helpers are five workers, each working an eight-hour shift, so $$H_c'=5\times 8=40\ \text{L.H./day}$$ $$T=\frac{W}{H_c'}=\frac{1434.7}{40}=35.87\ \text{days}\ \Rightarrow\ \boxed{36\ \text{working days}}$$ The same answer follows from the output side, which is a useful independent check: the crew is 2.5 times the size of D-7, so its daily output is $13.94\times 2.5=34.85$ m2/day, and $1250/34.85=35.87$ days.
  6. Price the local labour. The $23.55 and $34.83 rates belong to the RS Means national crew and must not be used here; the question supplies the local bare wages instead. The mixed crew costs $$C_d=(3\times 30+2\times 23)\times 8=(90+46)\times 8=\$1{,}088\ \text{/day}$$ which is an average bare rate of $1088/40=\$27.20$ per labour-hour — noticeably richer than the RS Means $23.55 because the local crew is weighted three-to-two toward journeymen rather than one-to-one. The labour bill is then $$C_L=W\times 27.20=1434.7\times 27.20=\$39{,}024$$
  7. Add the material and total the estimate. Material is unaffected by who installs it, so it is carried at the RS Means bare rate: $$C_M=Q\,c_m=1250\times 48.50=\$60{,}625$$ $$C=C_M+C_L=60{,}625+39{,}024=\boxed{\$99{,}649\ \text{bare construction cost}}$$ If the estimate is to be reported on the same basis as the Total Incl. O&P column, the material is marked up 10 % and the labour is loaded by the factor the crew table itself implies, $34.83/23.55=1.479$, giving $\$66{,}688+\$57{,}716=\$124{,}404$. That loaded figure, not the bare one, is what would go into a bid.
ResultValue
(a) Missing labour-hours per unit1.148 L.H./m2
(a) Missing Total Incl. O&P unit price$93.33 / m2
(b) Total labour content of the 1250 m2 job1434.7 L.H.
(b) Daily output of the five-worker crew34.85 m2/day
(b) Duration35.9 days, i.e. 36 working days
(b) Local bare labour cost$39,024
(b) Material cost$60,625
(b) Bare construction cost$99,649
(b) Same estimate loaded to an incl.-O&P basis$124,404
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