RICS

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Corporate Professional Local
RICS The Royal Institution of Chartered
Surveyors London Quantity Surveying
Construction Faculty The Built Environment Group
CityRail 2007 Shanghai, Peoples Republic of
China 11th September 2007 Estimating Bidding
for Rail Infrastructure Projects a Whole Life
Cycle approach Michael Byng FRICS, AAIQS,
ACIArb, MPWI Chairman Quantity Surveying
Construction Faculty
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Corporate Professional Local
RICS The Royal Institution of Chartered
Surveyors London

• RICS, Built Environment Group - Who are we?
• Building Surveyors - 25,000 Members
• Building Control Surveyors - 2,500 Members
• Project Management Surveyors - 30,000 Members
• Quantity Surveyors - 40,000 Members
• Some members belong to one or more of these
  faculties the total number of members in the BEG
  is 75,000 (57 of whole membership)

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Corporate Professional Local
RICS The Royal Institution of Chartered
Surveyors London
2. Built Environment Group What do we
do? Quantity Surveyors - Costing of Construction
works - Life Cycle costing - Construction
procurement - Construction payment and
dispute resolution Project Management - Client
Management Surveyors - Programme
Management - Contract Administration -
Project Monitoring Building Surveyors - Building
Pathology - Neighborly Issues - Design
and Specification - Property
Management Building Control - Development of
Building codes Surveyors - Design Audits -
Construction Inspections and Approvals
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Corporate Professional Local
RICS The Royal Institution of Chartered
Surveyors London

• Built Environment Group What the RICS Does?
• Regulates the profession
• Develops the profession
• Develops members
• Sets standards
• Represents the Members Interests
• Promotes member services

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RICS The Royal Institution of Chartered
Surveyors London
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Corporate Professional Local
Rail infrastructure projects issues to be
addressed (1)
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Corporate Professional Local
Rail infrastructure projects issues to be
addressed (2)
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Corporate Professional Local
Rail infrastructure projects a Whole Life
Cost procurement strategy

• Estimating and bidding should include
• Design, construct and delivery of capital
  projects
• Extended maintenance obligations set against
  tendered Whole Life Cycle cost targets
• The suppliers obligations to maintain
• Supplier to be responsible for maintenance of the
  assets for an agreed period of operation
• The annual cost of maintenance to be agreed at
  tender stages
• Benchmarked against asset performance Key
  Performance Indicators (KPIs) with Variation of
  Price (VOP) adjustments
• Adjustable against purchasers future decisions
  to upgrade or improve assets

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Corporate Professional Local
Rail infrastructure projects a Whole Life
Cost procurement strategy

• Design decisions should take into account
• Labour skills, plant equipment available to
  maintain the assets
• The impact of construction on sustainable
  development
• Health Safety requirements to protect the work
  force
• Strategic asset management experience
• Proposals for effective Planned, Preventative
  Maintenance
• The provision of modern maintenance and track
  renewals plant to minimise disruption to revenue
  earning operations.

The Suppliers obligations to maintain must
include
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Corporate Professional Local
Rail infrastructure projects procurement
solutions (1)

• The Business Case/CAPEX and OPEX
• Procurement and delivery must be seamless
• Design decisions should consider maintenance and
  operating requirements
• Team working supplier and purchasers design
  team should work together
• Choice of supplier should reflect the operating
  and maintenance costs of his capital proposal

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Corporate Professional Local
Rail infrastructure projects procurement
solutions (2)
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Corporate Professional Local
Rail infrastructure projects Whole Life Cycle
Cost approach the Quantity Surveyors
involvement

• Measurement management software from inception to
  completion
• Creating the business case approximate
  estimating on a Whole Life Cycle Cost basis
• Procurement and evaluation of tenders
  reconciling suppliers offers for CAPX and OPEX
  with business case
• Commercial management of design, construction
  and maintenance
• Project monitoring of supplier performance
  monitored against agreed benchmarks (KPIs)

For details of the tools used by Quantity
Surveyors and the range of services offered, see
the next two slides
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Corporate Professional Local
Rail infrastructure projects tools used by the
Quantity Surveyor to deliver these services
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Corporate Professional Local
Rail infrastructure projects Whole Life Cycle
Cost approach the Quantity Surveyors
involvement in diagrammatic form

• Project monitoring at each stage of the process
  5 levels
• Estimates
• Cost plans
• Composite Quantities for tendering
• Full Bills of Quantities for detailed
  negotiations of individual work sections
• Whole Life Cycle Cost planning
• These techniques are applied by both purchaser
  and supplier

Co-ordinated projects controls through an
integrated process
Estimating
Cost Planning
Composite Quantities
Full Quantities
Whole Life Costing
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Corporate Professional Local
Estimating Bidding for Rail Infrastructure
Projects a Whole Life Cycle approach

• Summary
• The purpose of the process is to create for
  purchasers and suppliers alike-
• The Bankable Proposition.
• For further information please contact Michael
  Byng at michael.byng_at_michaelbyng.com

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