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Estimating

y Aim: explore the issues surrounding subletting work and

materials

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The Student Will Be Expectedto Be

Able To:

y Explain why subletting occurs

y List methods of subletting

y Indicate level of information required

y Discuss the impact upon the construction industry

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Business Transactionsy Cost

y Labour

y Plant

y Materials

y Management

y Finance costs

y Profit

y Competition

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Why

y Materials

y Labour

y Plant

y Client requesty Structure of the industry

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Code ofEstimatingPractice

y The contractors success in obtaining a contract can depend

upon the quality of the quotations received

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Subcontract Packages

y Complete service

y Labour only

y Labour and plant only

y Suppliers

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Structure ofContracting

y Even under traditional

y Subcontractor and suppliers =72%

y Contractor = 28%

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TypesofSubcontractors

y Domestic

y Nomination

y Named

y Novation

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Enquiries

y Why

y When

y Who

y How

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Why

y Technical experience

y Specialisation

y Market changes

y Shortage of experiencey Training and experience reduced

y Culture

y Risk

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When

y ASAP

y 10 days minimum

y Types of works/ supplies influence

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Who

y Trade bodies

y Experience

y Recommendation

y Market survey( trawl notice boards)y Local paper

y Yellow pages

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Howy Preliminary enquiry(usually a telephone call)

y Photocopy sections of BoQ

y Abstract materials

y C

ross referencingy CPI co ordinated project information

y SMM7 standard method of measurement

y NBS national building specification

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Review Information

y Willingness to tender

y Full tender documents

y Sufficient time for tender preparation

y Feedback about performance

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Informationfor Supplier

y Title and location of works

y Description of materials and specification

y Approximate quantities

y Date information requiredy Name of person to contact

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Informationfor Supplier Cont

y Contract period and delivery dates

y Price firm or fluctuations

y Discount terms

y Limitations to site access

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Informationfor Sub Contractor

y Site address and location

y Name of employer and professional team

y Relevant details of main contract and subcontract

y Any amendments to contract conditions

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Informationfor Sub Contractor

y Information for sub contractorInformation for sub contractor

y Daywork rate information

y Date for return of quotations

y General description of works

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Informationfor Sub Contractor

y Details of access, site plant,and other facilities available

y Where full contract documents can be inspected

y Contract period , phasing, programme

y Discounts

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Informationfor Sub Contractor

y Copies of the relevant sections of BoQ

y Copies of drawings and schedules

y Services and attendance provided

y Fluctuations

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Nominated Sub Contractor

y Prime cost sum

y Attendance

y Main contractor %

y Special attendances required

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ReturnofSub Contractor Tenders

y All items priced

y Realistic rates

y Consistency

y No amendments to contract conditionsy Any changes may indicate an error which all sub contractors

need to know

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Spreadsheet

y Enable tenders to be compared

y Indicates average price to insert blanks

y Changes can be made instaneously

yAttendances

y Overheads and profit

y Builders work

y Plant

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Buzz Group

y What are the positive reasons for subcontracting works?

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Summary

y Analysed commercial aspects

y Explored why subletting occurs

y Investigated how subletting is structured

y Identified good practice