RICS Assessment of Professional Competence (APC) Quantity Surveying and Construction Syllabus

Quantity Surveying and Construction syllabus — full chapter and topic list

Expand any chapter to see its topics and sub-topics. This is the whole examinable outline for Quantity Surveying and Construction in RICS Assessment of Professional Competence (APC), not a summary of it.

1. 1

   Design Economics and Cost Planning

   4 topics

   • Order of cost estimating techniques
     • Functional unit, element unit and superficial methods
   • Elemental cost planning and the NRM framework
     • NRM1: order of cost estimating and cost planning
     • Cost analysis and BCIS data
   • Value engineering and whole-life costing
   • Cost control and reporting during design development
2. 2

   Quantification and Costing of Works

   4 topics

   • Measurement rules and NRM2 (detailed measurement)
     • Taking off quantities and bills of quantities
   • Pricing, rates build-up and preliminaries
   • Tender documentation and pricing schedules
   • Bills of quantities versus activity schedules
3. 3

   Procurement and Tendering

   3 topics

   • Procurement routes and selection criteria
     • Traditional, design and build, management contracting
     • Two-stage tendering and framework agreements
   • Tendering procedures and probity
     • Open, selective and negotiated tendering
     • Tender evaluation and reporting
   • Supply chain management and risk allocation
4. 4

   Contract Practice and Administration

   5 topics

   • Standard forms of contract
     • JCT suite of contracts
     • NEC4 Engineering and Construction Contract
   • Interim valuations, payment and the Construction Act
     • Payment notices, pay less notices and timescales
   • Variations, change control and loss and expense
   • Extensions of time and delay analysis
   • Final accounts and contract close-out
5. 5

   Project Financial Control and Reporting

   4 topics

   • Cost value reconciliation and cash flow forecasting
   • Cost reporting and earned value awareness
   • Risk and contingency management
   • Insolvency and the recovery of monies

Quantity Surveying and Construction flashcards for RICS Assessment of Professional Competence (APC)

25 of 78 cards from the Quantity Surveying and Construction deck — real questions with worked answers.

1. What is an order of cost estimate in the RICS context, and at what stage is it typically prepared?

   An order of cost estimate is the determination of the possible cost of a building early in the design process, prepared during RIBA Stages 0-2 (strategic definition to concept design) before detailed design information is available. It establishes an affordable budget and is governed by NRM1.

2. List the main order of cost estimating techniques used in early-stage cost advice.

   1) Functional unit method (cost per functional unit, e.g. per bed, per pupil); 2) Floor area method / superficial method (cost per $m^{2}$ of GIFA); 3) Elemental method; 4) Comparative/approximate quantities (cost per $m^{2}$ of GIFA).

3. In the floor area (superficial) method, how is the estimated building cost calculated?

   $$\text{Estimated cost} = \text{GIFA} \times \text{cost per } m^{2}$$ where GIFA is the gross internal floor area and the rate is derived from analysed comparable projects, adjusted for time, location, size and specification.

4. What does GIFA stand for and how is it measured under NRM1?

   GIFA is Gross Internal Floor Area: the total floor area measured to the internal face of the perimeter/external walls, taken on every floor, including internal walls, columns, lift wells and stairwells, but excluding the thickness of external walls.

5. What is the functional unit method of estimating, and give two examples of functional units?

   It expresses cost as a rate per unit of accommodation that represents the building's purpose. Examples: cost per hospital bed, cost per school pupil place, cost per hotel bedroom, or cost per car parking space.

6. What is NRM1 and what is its purpose?

   NRM1 is the RICS New Rules of Measurement Volume 1: Order of cost estimating and cost planning for capital building works. It provides a standard, consistent basis for measuring and describing building works for order of cost estimates and elemental cost plans.

7. What is the difference between an order of cost estimate and a cost plan under NRM1?

   An order of cost estimate is a single-figure budget prepared early (RIBA 0-2) using approximate methods. A cost plan is the elemental breakdown of that budget into a structured list of elements, developed and refined as the design progresses (Formal Cost Plans 1, 2 and 3 across RIBA Stages 2-4).

8. What is elemental cost planning?

   Elemental cost planning is the technique of dividing a building's cost into functional elements (e.g. substructure, frame, roof), allocating a cost target to each element, and controlling the design so the sum of element costs stays within the approved budget.

9. What is an 'element' in elemental cost planning?

   An element is a component of a building that performs the same function irrespective of its construction or specification (e.g. external walls, roof, internal doors). Costing by element allows comparison between projects of differing design.

10. What are the three NRM1 Formal Cost Plans and which RIBA stages do they align with?

    Formal Cost Plan 1 (end of RIBA Stage 2, Concept Design); Formal Cost Plan 2 (end of RIBA Stage 3, Spatial Coordination/Developed Design); Formal Cost Plan 3 (end of RIBA Stage 4, Technical Design).

11. What is an 'element unit rate' (EUR) in elemental cost planning?

    An element unit rate is the cost of an element expressed per unit of its element unit quantity (EUQ), e.g. cost per $m^{2}$ of external wall area. $$\text{Element cost} = \text{EUQ} \times \text{EUR}$$

12. In NRM1, what are the main groups added on top of the works cost to reach the total estimate?

    Building works estimate + main contractor's preliminaries + main contractor's overheads and profit (= works cost estimate), then project/design team fees, other development costs, risk allowances, and inflation (and VAT separately).

13. Define value engineering and distinguish it from cost cutting.

    Value engineering is a structured, function-based process to improve the value (function relative to cost) of a project by eliminating unnecessary cost while retaining required function and quality. Cost cutting simply reduces cost, often sacrificing function or quality; value engineering preserves or enhances function.

14. State the value relationship that underpins value engineering and value management.

    $$\text{Value} = \frac{\text{Function}}{\text{Cost}}$$ Value is increased by improving function, reducing cost, or both, without reducing required performance.

15. What is whole-life costing (WLC) and what standard governs it?

    Whole-life costing is the systematic consideration of all costs and revenues associated with an asset over its life. It includes life cycle costs (construction, operation, maintenance, end of life) plus non-construction costs, externalities and income. It is governed by ISO 15686-5 and the RICS Life Cycle Costing standard.

16. Distinguish life cycle costing (LCC) from whole-life costing (WLC).

    Life cycle costing covers construction, operation, maintenance and disposal/end-of-life costs of the asset. Whole-life costing is broader, adding non-construction costs, income, externalities and other business costs. LCC is a subset of WLC.

17. What is Net Present Value (NPV) and why is it used in whole-life costing?

    NPV discounts all future cash flows to a present value so options with different cost-timing profiles can be compared. $$NPV = \sum_{t=0}^{n} \frac{C_{t}}{(1+r)^{t}}$$ where $C_{t}$ is the net cash flow in year $t$ and $r$ is the discount rate.

18. Write the discount factor formula used to convert a future cost to present value.

    $$DF = \frac{1}{(1+r)^{t}}$$ where $r$ is the real discount rate and $t$ is the number of years until the cost occurs. Present value = future cost $\times DF$.

19. What is the purpose of cost control during design development?

    To ensure the evolving design can be built within the client's approved budget by monitoring the cost effects of design decisions, keeping each element within its cost target, reporting deviations, and advising on corrective action before commitments are made.

20. What is a cost report, and what key information should it contain?

    A cost report is a regular statement of the project's financial status. It typically shows the current cost plan/contract sum, instructed and anticipated variations, agreed and forecast final account, risk/contingency status, cash flow, and a comparison against the approved budget.

21. What is the difference between a budget, a cost target and a cost check?

    The budget is the approved total the client will spend. A cost target is the allocated cost for an individual element within that budget. A cost check is the act of measuring/pricing emerging design detail to confirm it remains within its cost target.

22. What is NRM2 and what is its scope?

    NRM2 is the RICS New Rules of Measurement Volume 2: Detailed measurement for building works. It provides detailed measurement rules and a standard structure for preparing bills of quantities and quantified schedules of works for tendering.

23. What are the two ways of measuring quantities, and which does NRM2 use?

    Net measurement (measuring the actual finished quantity in place) and gross measurement. NRM2 uses net measurement of finished work, with no allowance for waste or laps included in the dimension (waste/laps are reflected in the rate).

24. In NRM2 a measured item description has a standard structure. What information must a fully described item convey?

    It must convey the work to be done, including the work classification, the descriptive features (per the rules), the unit of measurement, and sufficient detail (with any 'mandatory' information) for the contractor to price it, supported by drawings and specification.

25. What is the difference between 'measured works' and 'preliminaries' in a bill of quantities?

    Measured works are the quantified physical building items priced at unit rates (e.g. concrete per $m^{3}$). Preliminaries are project-wide/site-wide costs not specific to a measured item (e.g. site management, scaffolding, welfare, insurances) covering management and method-related costs.

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