Operational bill

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Operational bills are a tendering document for estimating costs prepared by architects that describes a construction project in terms of the operations (which include labour and plant) needed to build it. This form of document contrasts with that of bills of quantities in which such tendering and estimation is limited to the materials in the completed work. Operational bills have the advantages of enhancing communication between design and production, enabling realistic tender pricing, and making the preparation of critical-path analysis easy for the contractor. [1] [2] [3] [4]

Contents

Operational bills were proposed and developed by Edward Skoyles at Building Research Establishment in the 1960s. [1] [2] Priced-activity schedules of the NEC Engineering and Construction Contract are a modern related form, prepared by the contractor. [5]

Creation

An operation is defined as a piece of construction work which can be carried out by a gang of operatives without interruption from another gang. A procedure diagram is provided that shows the relationship of operations to each other and so which are done in sequence and which are done in parallel. This allows a critical-path analysis to be quickly created by the contractor. There are two sections: the first deals with site operations in terms of schedules of materials, labour and plant requirements, and the second, any work prefabricated adjacent or off site. At the end of the bill, management and plant resources are given so they are included. [1] [2] [6]

History

After operational bills were proposed, a second half-way house version with bills of quantities was suggested initially called "activity bills", but then as "Bills of quantities (operations)". In this, the operations are described in terms of the rules of the standard method of measurement rather than labour and materials. [5] [7] [8] [9] [10] A further development was the use of the principles of operational bills in the priced-activity schedules of the NEC Engineering and Construction Contract. [5]

Advantages and disadvantages

Advantages

Disadvantages

See also

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Edward Skoyles was the first quantity surveyor employed in the UK to research costs and practices in the construction industry. He did his research from 1960 until 1984 at the Building Research Establishment. Among his research projects was developing a new type of tendering for construction projects called operational bills. He also started the study of the actual amount of waste in the construction industry, and investigated the varying methods of cost estimation practices used in different countries. His contributions are still widely discussed in the academic literature particularly upon operational bills, and building waste

The following is a glossary of terms relating to construction cost estimating.

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References

  1. 1 2 3 Skoyles, E. R. (1966) Examples from operational bills OCLC   61861509
  2. 1 2 3 Skoyles, E. R. (1967) Preparation of an operational bill. Building Research Station ISBN   978-0-85125-019-9 OCLC   271085985
  3. ↑ Shanley LF. (1970). Report on pilot project on operational bills. An Foras Forbartha (Irish National Institute for Physical Planning and Construction Research) ISBN   978-0-9501356-0-1
  4. ↑ England Symposium on Operational Bills (1967). "Symposium on Operational Bills discussion. Report on a Symposium on Operational Bills held at the Building Research Station, 8th March." ASIN   B000X8332G
  5. 1 2 3 4 5 Potts, K. (2008). Construction Cost Management: Learning from Case Studies, Routledge. ISBN   978-0-415-44286-2
  6. ↑ Royal Institute of Surveyors (Republic of Ireland Branch) (1970). The bill of quantities and the operational bill: Seminar, Dublin, March. An Foras Forbartha (Irish National Institute for Physical Planning and Construction Research) ISBN   978-0-900115-01-1
  7. ↑ Skoyles, ER. (1970). Bills of quantities, or the operational bill? Architects' Journal (28 January) 233-240.
  8. ↑ Skoyles, ER. (1981). Production orientated tendering: a resume and re-examination for the early eighties of the issues involved. Quantity surveyor, 37, (6) 110-113.
  9. ↑ Skoyles, ER. (1968). Introducing bills of quantities : (Operational format). Building Research Station. OCLC   61864680
  10. ↑ Skoyles ER. (1969).Examples from bills of quantities (Operational format). Building Research Station. OCLC   43131569
  11. 1 2 3 4 Ashworth, A. (2002). Pre-contract studies: development economics, tendering and estimating. Edition: 2. Wiley-Blackwell. ISBN   978-0-632-06472-4 p.332.
  12. ↑ Lal H. (2002). Quantifying and Managing Disruption Claims. Thomas Telford. ISBN   978-0-7277-3165-4.
  13. 1 2 3 Dmaidi, N. (2003). The State of the Art in Integration of Cost and Time Models Archived 2010-05-29 at the Wayback Machine . An-Najah University Journal of Research. 17(1). 99-122. pp. 108-109
  14. 1 2 Jaggar D. Ross A. Smith J. Love P. (2002). Building Design Cost Management. Edition: 2. Wiley-Blackwell. ISBN   978-0-632-05805-1 pp147-148
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