Attachment II Guidelines for using the Unit Price Guide.pdf

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National Schedules

Building Works

Building Works

Mechanical Services

Electrical Services

Highways Maintenance

Access & Adaptations

Housing Maintenance

Painting and Decorating

MTCQS Software

Consultancy Services

NSR Management Ltd Ardenham Court Oxford Road Aylesbury

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©NSR 2020‐2021

©NSR 2020‐2021 i

Edition: Building Works August 2020-2021

Compiled and published annually by NSR Management Limited Ardenham Court Oxford Road Aylesbury

HP19 8HT

United Kingdom 01296 339966 www.nsrm.co.uk

Whilst all reasonable care has been taken in the compilation of the National Schedules, NSR Management Limited and the authors will not be under any legal liability of any kind in respect of any misstatement error or omission contained herein or for the reliance of any person, company or authority may place thereon.

ISBN 978-1-909967-81-6

© NSR Management Limited August 2020. All rights reserved. No part of any of the National Schedule of Rates may be reproduced, stored in a retrieval system or transmitted in any form or by means electronic mechanical photocopying recording or otherwise without the express and prior consent of the Copyright owners.

This publication is sold subject to the condition that it shall not, by way of trade or otherwise, be lent, resold, hired out or otherwise circulated without the publisher’s express and prior written consent in any form of cover or binding other than that in which it is published and without a similar condition including this condition, being imposed upon the subsequent purchaser.

Printed by: CPI Group (UK) Copland Way Ellough Beccles Suffolk

NR34 7TL

ACKNOWLEDGEMENTS

The National Schedules are updated each year based on data and procedures from the Chartered Institute of Building (CIOB), Construction Industry Joint Council (CIJC) and the Joint Industrial Boards (JIB) for Plumbing and Mechanical Engineering Services and for the Electrical Contracting Industry.

©NSR 2020‐2021 ii

Table of Contents Page

ACKNOWLEDGEMENTS i

HISTORY v

NSR USER GUIDANCE NOTES 1

1.0 INTRODUCTION 1

1.1 Updating the National Schedules 1

1.2 Using the National Schedules with Different Delivery Models 1

2.0 THE NATIONAL SCHEDULES 2

2.1 Library of Documents 2

2.2 Selecting the Appropriate Schedule(s) 2

2.2.1 Building Works 2

2.2.2 Mechanical Services in Buildings 2

2.2.3 Electrical Services in Buildings 2

2.2.4 Highways Maintenance 2

2.2.5 Housing Maintenance 2

2.2.6 Access and Adaptations 2

2.2.7 Painting and Decorating 2

2.3 Effective Date of Schedules 3

2.4 Quantities, Rates, Extensions and Totals 3

2.5 Library System for Descriptions and Rates 3

2.5.1 Understanding the Item Coding & headings in Schedule

of Description and Prices. 3

2.5.2 Amending Description and item codes/numbers for own use. 5

2.6 CDM / Landfill / Asbestos 5

2.6.1 CDM 5

2.6.2 Landfill 5

2.6.3 Asbestos 5

2.7 Forms of Contract 5

2.8 Pricing and Payment Mechanisms 6

2.9 The Basis of Prices 6

2.9.1 Labour Rates 6

2.9.1.1 Calculation of Listed Labour Rates 8

2.9.1.2 Trades Labour Cost Per Hour Calculations 8

2.9.1.3 Calculation of All-in Labour Rate Building Operatives 9

2.9.1.4 Calculation of All-in Labour Rate Plumbers 10

2.9.1.5 Calculation of All-in Labour Rate Electricians 10

2.9.2 Material Prices 11

2.9.2.1 Waste Allowances 11

2.9.2.2 Material Price Supplier List 12

2.9.3 Plant Prices 12

2.9.4 Disposal Prices 12

3.0 TENDERING USING THE NATIONAL SCHEDULES 12

3.1 The Benefits to the User 12

3.2 User Requirements 12

3.3 What Tendered Percentage Adjustment(s) Include 13

3.4 Tender Checklist (See Table G) 14

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4.0 POST CONTRACT GUIDANCE NOTES TO USERS 17

4.1 Specialist Goods and Work not specified within the National Schedules 17

4.1.1 Examples of Specialist Goods and Works Adjustment 17

4.2 Prime Cost Items Specified Within the National Schedules 18

4.2.1 Waste Factors 18

4.2.2 Examples of Prime Cost Sum Adjustment 18

4.3 Overtime Payments 20

4.3.1 Overtime Rules 20

4.3.2 Examples of Overtime Adjustment 20

4.4 Scaffolding 21

5.0 PRELIMINARIES (Provided by Client)

6.0 PREAMBLES/SPECIFICATION 23

6.1 Generally 23

6.2 Materials 23

6.3 Workmanship 23

6.4 Cost Items 23

A: Contractors General Cost Items 23-24 C: Demolition/Alteration/Renovation 24-26 D: Groundwork 27-31 E: Insitu Concrete/Large Precast Concrete 31-38 F: Masonry 39-49 G: Structural/Carcassing/Metal/Timber 50-56 H: Cladding/Covering 56-87 J: Waterproofing 87-98 K: Linings/Sheathing/Dry Partitioning 98-108 L: Windows/Doors/Stairs 108-115 M: Surface Finishes 116-143 N: Furniture/Equipment 143-147 P: Building Fabric Sundries 148-153 Q: Paving/Planting/Fencing/Site Furniture 153-173 R: Disposal Systems 173-184 S: Piped Supply Systems 185-190 V: Electrical Supply/Power/Lighting Systems 190-194 W: Communications/Security/Control Systems 194-197 Z: Building Fabric Reference Specification 197-201

7.0 SCHEDULE OF DESCRIPTION AND PRICES

For the full list of subject items and prices See Section 7 for Index.

BP: Basic Prices: (Back pages) Labour BP1 Plant BP2-BP16 Materials BP17-BP121

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TABLES

Table A: Forms of Contract Pricing Options 6 Table B: Basis of Labour Rate Calculations 7 Table C: Labour Total Hours Calculations 8 Table D: Labour Cost per Hour Calculations 8 Table E: Material Price Supplier List - See Appendix 3 Table F: Waste Allowances 11 Table G: Tender Checklist 14 Table H: Prime Cost Waste Factors 18 Table I: Overtime Rules 20

EXAMPLES

Example 1: How the Library System Works 3 Example 2: Build-up of All-in Labour Rate Building Operatives 9 Example 3: Build-up of all-in labour rate Plumbers 10 Example 4: Build-up of All-in Labour Rate Electricians 10 Example 5: Specialist Goods 17 Example 6: Specialist Work 17 Example 7: Quantity Based PC Sum Material Price Adjustment (+ %) 18 Example 8: Quantity Based PC Sum Material Price Adjustment (- %) 19 Example 9: PC Sum Material Price Adjustment (+ %) 19 Example 10: PC Sum Material Price Adjustment (- %) 19 Example 11: Schedule Item Labour Time-and-half Adjustment 20 Example 12: Schedule Item Labour Double-time Adjustment 20 Example 13: Dayworks Labour Time-and-half Adjustment 20 Example 14: Dayworks Labour Double-time Adjustment 20

APPENDICES

Appendix 1: New Items Index Appendix 2: Amended Items Index Appendix 3: Material Prices Suppliers List

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HISTORY

The genesis of the National Schedules dates back to 1982.

The need for a predetermined means of pricing was itself established in 1980 following the change in requirements governing Local Government direct labour accounting brought about by the Local Government Planning and Land Act 1980. In its own Accounting Code of Practice for Direct Labour Organisations, the Chartered Institute of Public Finance and Accountancy (CIPFA) had recommended the use of schedules.

Discussions were held with a number of other Local Authority organisations and with the Construction Confederation, formally Building Employers Confederation.

The first National Schedule for Building Works was developed jointly combining the Construction Confederation and SCQS schedules and released primarily for Local Authority maintenance and repair contracts.

Since then the National Schedule has developed into a comprehensive library of schedules and have been very successful. They have been widely adopted in both the Public and Private Sectors providing a trusted way for agreeing pricing and payment mechanisms within many facets of the industry, including, Facilities Management, Construction, Maintenance and Refurbishment works and Insurance.

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NSR USER GUIDANCE NOTES

1.0 INTRODUCTION

1.1 Updating the National Schedules

The National Schedules are now in their thirty-eighth year and this year's edition has been updated to continue to reflect the important changes that have been taking place in the built environment maintenance and repairs sector.

Central Government is continuing with their drive for efficiency and efficiency gain linked budget allocations. The austerity measures to reduce the national deficit, reforms in welfare and budget reductions, and its knock-on impact on the private sector is set to continue for the next few years.

The RICS launched the new rules of measurement in the early part of 2014 also to take effect as of January 2015.

A new edition of the National Schedules compiled in line with the New Rules of Measurement (NRM) is now available on line. (www.nsrm.co.uk)

The National Schedules provide a predetermined, transparent and accountable means of pricing that can be adapted to suit all of the common forms of Term Contract and several price and payment mechanisms including but not limited to:

a) Schedule of Rates with Percentage adjustment.

b) Schedule of Rates with Percentage adjustment fluctuating.

c) Lump Sum Contract – derived from nationally benchmarked prices and adjustments.

d) Target Price/Open Book – derived from nationally benchmarked prices and adjustments for establishing the Target Price.

e) Resource Based Pricing – derived from nationally benchmarked prices for Labour, Plant and Materials.

They can also be used by organisations that wish to have a price guide for managing established supply relationships in more traditional arrangements.

Our Access & Adaptions (DDA) (previously Access Audit) schedule has been specifically designed for ease of use and assisting users to comply with the Disability Discrimination Act, the Equality Act and Special Needs Adaptation. Considerable research and assistance from Organisations helped with the compilation.

1.2 Using the National Schedules with Different Delivery Models As principally designed for use on work with a maintenance or refurbishment bias, the Schedules provide both a flexible and a robust ‘pricing mechanism’ for the actual work performed taking into account the lower productivity and labour intensive nature of such work reflected in the minute values for all items and consequently the level of the unit rates.

They can provide managers with a powerful tool for assessing separately the cost of the works against the delivery model option, which can then be benchmarked against similar organisations adopting a different approach.

Therefore, they can be appropriate for use with any of the following delivery models:

a) Single or Multiple Source Private Service Provider.

b) Framework Agreement (Mini-competition or otherwise).

c) Direct Labour Organisation (In-house Service Provider).

d) Incorporated or Unincorporated Joint Venture.

e) Mixed Service Provision.

The establishment and on-going management costs would either form percentage adjustments or be priced and assessed separately during tender based on the Term Contract requirements and its size and complexity.

2.0 THE NATIONAL SCHEDULES

2.1 Library of Documents

NSR - Advice and recommendations Percentage adjustment/work priced separately/taking professional advice

NSR Management usually advises customer to use a ‘percentage adjustment’ on relatively simple service contracts.

Where the nature of the work requires substantial staff transfers, IT investment, taking over stores/depots and Client equipment, then we would recommend that these are priced separately.

Professional advice can assist in establishing the most appropriate arrangement based on a good understanding of the service requirements and relevant payment mechanism.

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2.0 THE NATIONAL SCHEDULES

2.1 Library of Documents

The National Schedules are available as publications, digitally and as bespoke cost management software (MTC QS). The current library consists of seven Schedules with alternative versions of Building, Mechanical and Electrical schedules using new NRM2

1. Building Works

2. Mechanical Services in Buildings

3. Electrical Services in Buildings

4. Highways Maintenance

5. Housing Maintenance

6. Access & Adaptions (DDA)

7. Painting and Decorating

Digital Services: The digital services NSR Management provide can be viewed online at www.nsrm.co.uk and include:

NSR Schedules by Section (Look-up) service - allows a cost effective way for the entire supply chain to subscribe and access relevant sections of the main Schedules for pricing their relevant trade or as a reference source. Available for a short period of time 14 day online access only.

(Please note - some schedules are excluded from this service, see our website for details) eBooks – available for all schedules - with search facility, online viewing only

MTC QS our Bespoke online software: provides a supported bespoke software package, which has been designed specifically for tracking costs against assets with the pre-loaded schedules, preambles, alerts and flags that allow surveyors to estimate, quote, track and raise invoices for works. (See our website, www.nsrm.co.uk, for full details and functionality).

This is an online package that allows access by the project team and greatly reduces the administration burden of maintenance and repairs contracts

2.2 Selecting the Appropriate Schedule(s) – brief outline of contents:

2.2.1 Building Works

Designed mainly for maintenance and repairs to the building fabric, (minor Mechanical and Electrical repairs and modifications are incorporated only), this Schedule can be used extensively across most conventional building types.

2.2.2 Mechanical Services in Buildings

Designed for mechanical services maintenance and repairs, with Builder’s Work in Connection (BWIC) only, this Schedule can be used across most conventional building types.

2.2.3 Electrical Services in Buildings

Designed for electrical services maintenance and repairs, with Builder’s Work in Connection (BWIC) only, this Schedule can be used across most conventional building types.

2.2.4 Highways Maintenance

Designed for highways maintenance and repair work, this Schedule can be used by both Local Authority Highways Departments and private sector Clients that may have substantial pavement maintenance and repair requirements such as Ports, Hauliers, Logistic Parks and so forth.

2.2.5 Housing Maintenance

Designed for ease of use and domestic works to Public and Private sector housing, this Schedule is made up of composite rates and can be used by Housing Managers across most conventional housing types.

2.2.6 Access & Adaptions (DDA)

Designed with the specific purpose of building and external public space works arising to comply with the Disability Discrimination Act 1995 and the later Equality Act 2010, this Schedule can be used across most conventional building types.

2.2.7 Painting and Decorating

Designed to meet the high Cyclical Maintenance demand requirements from the Public and Private sector for Painting and Decorating, this Schedule is suitable for most conventional building types.

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2.3 Effective Date of Schedules

The National Schedules are published annually in August of each year to include the latest promulgated wage rates and prices for materials and plant.

This Schedule is deemed to be effective as from: 1st August 2020

2.4 Quantities, Rates, Extensions and Totals

The National Schedules have been developed based on the Standard Method of Measurement of Building Works, 7th Edition Revised 1998 (SMM7R), NRM2 and Highways Department Method of Measurement

(MMHW)

It is possible therefore that any disputes over measurement could be directly related to the Method and any rulings on the Method would apply to the Schedules.

Certain minor departures from Standard Methods of Measurement have perforce been necessary, these are detailed at the beginning of the Preambles Section in the schedules, in order to keep the same item numbering in the relevant Standard Method of Measurement (See: Preambles/Specification Section 6)

2.5 Library System for Descriptions and Rates - How the Library system works;

The National Schedules have been produced so that the codes are identifiable in the Schedule and the coding is permanent, compact and, unless unavoidable, does not change with amendments or updates.

However, the User still has several possibilities for amending the Schedules for own use, these are described in:

2.5.2 “Amending Description and Item codes/numbers for own use”

2.5.1 Understanding the Item Coding and Headings in the Schedule of Description and Prices (Using SMM7 in the examples below but same methodology to be used with the new NRM versions)

The library/schedules description and prices are divided into Work Groups corresponding to SMM7.

Each of these is designated by its SMM7 Work Groups letter. I.e. A, D, E etc and Work Group Title.

Below is an example of how E-1010/010 from the Building Works schedule is made up and as shown in the schedules: - (cost are for example only and are not current)

E IN-SITU CONCRETE/LARGE PRECAST CONCRETE

Unit Material

Labour

Plant

Total

E10

E1010

In-situ concrete

Plain designed Mix 20

Foundations ne 150 mm thick poured on or against earth or unbended hardcore m3

137.50

38.75

176.25

E IN-SITU CONCRETE/LARGE PRECAST CONCRETE (Work Group) E10 In-situ concrete (Work Sections) E1010 Plain described mix C20 (Combined Heading) 010 Foundations ne 150 mm thick (etc) (Work Heads) Using E1010/010: (See Examples 1-4 below of how the NSR Codes are put together)

1. Work Group (Letter & Main title) is seen as:

Each Work Group (WG) is then made up of Work Sections and is defined by a code number next to the Work Group letter I.e E10 (to which the relevant SMM7 work section number is appended) by this method a ‘unique code’ is allocated to the Work Group and subsequent sub-section.

With prefix Letter E. (as SMM7) Work Group title - In-situ concrete/Large precast concrete

Example 1 ‐ How the Library system, coding, headings and sections work in the NSR

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2. Work Section looks like this: (WG Letter/Code and Heading)

The Work Section then contains ‘two sub-sections’ with unique code number, heading and item descriptive text, i.e.

Combined Headings (CH) - are numbered with two digits from 01-99 + Descriptive heading Work Heads (WHs) - are numbered with three digits from 001-999 + detailed Descriptive text

3. Combined Heading CH looks like this: (WG Letter/Code CH Code & Descriptive heading )

4. Work Heads WH look like this: (Code & Detailed Descriptive text):

Therefore: By combining the Work Group prefix letter and the code numbers from each Work Section, with the sub sections codes for (CH) & (WH’s), will give a unique fixed-length item part-code in the form A0000/00. In practice each separate part of a full description is identified in the schedule by its own part code.

Example layout of Description as seen in NSR for - E1010/010

Work Group code Letter/Title

E: IN-SITU CONCRETE/LARGE PRECAST CONCRETE

Work Section E + code 10 / heading Combined Head E10 + code 10 / Descriptive heading

Work Head E1010 + code

010 /Detailed Descriptive text

E10

E1010

In-situ concrete

Plain described mix C20

Foundations ne 150 mm thick on or against earth or unblinded hardcore

This fixed length item code format (i.e. A0000/000) is used throughout any of the Schedules to reference and identify an item.

Identical detailed descriptions throughout the schedules:

It will be noticed that there are identical detailed descriptions throughout the schedules and are produced (duplicated) by the same code (010) irrespective of the heading within which they lay.

For Example: E1010 Plain designed mix C20 – o 010 Foundations ne 150 mm thick on or against earth or unblinded

Is repeated under:

E1011 /010 Plain designed mix C20 ordered 3.00-5.00 m3 at one time (75% addition on material cost plain designed mix C20) o 010 Foundations ne 150 mm thick on or against earth or unblinded

If the codes are used with the NSR for tendering, estimating, pricing etc it offers a quick reference to identify an item and may reduce the amount of information entered on the documents

To find each workgroup, codes and item refer to the Index or in Section 7 - Schedule of Description and Prices.

Work Group letter E /Allocated code 10 (shown as code E10) Work Section Heading - In-situ concrete

Work Group letter E Allocated item code 10 (code E1010) Descriptive Text – Plain Described mix C20

Allocated item code 010 Detailed Descriptive text – ‘Foundations ne 150mm thick on or against earth or unblinded hardcore’

Please Note: The Library contains a number of headings and items that, for compactness, it has been decided not to call up for use in the National Schedules. These provide scope for future amendments.

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2.5.2 Amending Description and Item codes / numbers for own use Users, introducing their ‘own descriptions’ into the National Schedules for their own use, are advised not to use the ‘omitted numbers’ in the published Schedules since these missing numbers may well be taken up by the NSR Compilers in the future. This could lead to referencing conflict.

This can easily be avoided if Users introduce their own references in the form of suffix letters, I.e. if using NSR published item code - E1010/010.

To define a new item: (unique to the user organisation) which requires to be entered into the Schedule for that organisation, add a suffix letter immediately following the standard published NSR item code i.e. E1010/010A and so on.

2.6 CDM / Landfill / Asbestos

Note: Costs for these items may not be included in the schedule of rates please read below:

We recommend that all parties to the contract comply with all relevant legislation current at the time of execution of the Works. It is impossible for the rates contained in the Schedules to allow for legislation compliance costs as these are largely determined by local requirements. The cost of such compliance should be covered by the percentage adjustment, priced separately as part of the preliminaries or procured as a specialist package

2.6.1 CDM

The rates contained in this schedule do not include for any costs associated with ‘The Construction (Design and Management) Regulations 2015.

The User should establish which of the works undertaken will require compliance with the CDM regulations, particularly bearing in mind the changes which come into force on 6th April 2015. We would suggest that the Client familiarises themselves with the new regulations and appoints a “Principle Designer” if necessary.

The tendered percentage adjustment or priced preliminaries should include for complying with the CDM Regulations as detailed in the new guidance notes and the transitional provisions. This will ensure that a framework for complying with the CDM Regulations is in place and that the Contractor will be recompensed for his costs.

2.6.2 Landfill

The Users’ attention is particularly drawn to the ‘Landfill tax’ in force since 1 October 1996 and as amended, (Landfill Tax (Amendment) 2018), (Landfill Tax (Miscellaneous Provisions) Regulations 2018). The cost for disposal of active waste should be included in the tendered percentage adjustment or priced separately in the preliminaries.

2.6.3 Asbestos

The rates contained in the National Schedules do not include for any costs associated with working with asbestos.

When carrying out work on asbestos based materials the Contractor shall comply with the Control of Asbestos Regulations 2012 and any subsequent amendments, rules, Approved Code of Practice (ACOP) or guidance.

Where minor work with asbestos is encountered and which can be carried out by a Contractor who does not normally require an HSE license, as defined in the Approved Code of Practice and Guidance published by the Health and Safety Executive. The Contractor may carry out the work as requested by the Contract Administrator / Service Manager at agreed rates or on a Daywork basis.

We would recommend that the Client has a clear strategy and procedures in place which may include an Asbestos Register with type surveys and treatment strategies.

2.7 Forms of Contract

The National Schedules are suitable to be used with a variety of contract forms See: Table A. for Forms of Contracts

They can be used equally with Partnered / Collaborative contracts and traditional arrangements as they form a robust basis for establishing pricing and payment mechanisms irrespective of the contract form.

We always recommend that the Client should seek the necessary advice in incorporating any pricing and payment mechanism into the relevant forms of contract through experienced and professional advice given the often complex manner of high volume and relatively low value works that maintenance and repair contracts typically cover.

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Table A: Forms of Contract Pricing Options

Form of Contract Pricing Options (contract references)

JCT Measured Term Contract

See Contract Particulars: Section10 - Schedule of Rates (Clauses. 5.3,.6.1,5.6.2) .1 the National Schedule of Rates Or - identify the Schedule of Rates to be used

NEC3

Term Service Contract (TSC)

Main Option Clauses:

A. Priced contract with price list C. Target contract with price list

PSPC Option 1: Term Maintenance Measure and Value Option 2: Term Maintenance Target Price with Cost Reimbursable

Be Collaborative Contract Alternative A - Provisions relating to Target Costs Alternative B - Provisions relating to a Contract Sum

GC Works (various) Lump Sum Term or Annual Contracts

Various Minor Work Contracts* Lump Sum or Target Price

Please Note * Suitability of NSR for New Build Single Unit Projects We would suggest that the National Schedules are suitable for a new build single unit project of up to £500,000 for Buildings and £3,000,000 for Highways as long as the adjustments are assessed separately.

2.8 Pricing and Payment Mechanisms

Users are reminded that the National Schedules are not a ‘price book’ but a ‘pricing tool’ that is national in scope and provides the means for establishing prices for largely unspecified work across unspecified Sites, but they are flexible enough to be used for programmed works with the appropriate adjustments set out at tender.

The right payment mechanism for an organisation has to be defined at the outset based on the requirements.

In utilising the National Schedules, the potential Client is advised to think carefully about their procedures and staffing requirements now, and over the term of the contract, anticipating any likely changes that may be introduced at a later stage.

This also requires thought about: issuing works instructions / job tickets / task orders, priority coding, emergency work, basis of valuations, need for Dayworks, level of supervision, access, management reporting, performance criteria etc. and these will be specific to the individual Client. Clauses defining the requirements can be inserted in the preliminaries or within any relevant explanatory procedure document.

Though there may be some commonality, this can in practice only be done at a local level and is usually defined in the tender documentation. No national system can be devised to satisfy all requirements for all Users. Therefore, the National Schedules should form part of a well-considered procurement strategy and tender process.

The National Schedules can work well with a combination of strategies based on the service requirements and are adaptable for tendering either on a ‘percentage adjustment’ or fully priced preliminaries basis allowing for overheads and profit. The payment mechanisms should be worked out in advance, reflected in the contract and established in the administration procedures. Experienced professional advice may be necessary to ensure that the best procurement model and most practical payment structure is put in place assessing risks and risk transfer.

2.9 The Basis of Prices

The labour rates in this schedule include adjustments to the annual awards announced by the Construction Industry Joint Council (CIJC) and by the Joint Industrial Boards (JIB) for Plumbing & Mechanical Engineering Services and for the Electrical Contracting Industry. Detailed calculations of all allowances added to the basic rates of wages for craftsmen and labourers are given below.

2.9.1 Labour Rates

The labour rates have been calculated in accordance with the principles given in the Code of Estimating Procedure published by The Chartered Institute of Building, modified as necessary to suit the criteria set out in Table B: Basis of Labour Rates Calculations.

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Table B: Basis of Labour Rate Calculations

Reason Building Operatives Plumbers Electricians

a. Basis

Current wages and allowances as agreed by

CIJC

Current wages and allowances as agreed by

JIB for Plumbing & Mechanical Engineering

Services

Current wages and allowances as agreed by

JIB for Electrical Contracting Industry

b. Labour rate

Basic rate (Guaranteed) minimum earnings) + 16% Site determined bonus

Basic rate + 30% bonus

Basic rate + 30% bonus

c. Additional payments

Skills allowance and tool money as appropriate

Responsibility allowance included for advanced plumber tool money as appropriate

Nil

d. Gross hours worked

39 hour week

39 hour week

37½ hour week

e. Resultant non-productive overtime

75 hours per annum

75 hours per annum

f. Sickness

3 days per annum without pay see

'Annual Holidays with pay' see

'Annual Holidays with pay'

g. Inclement weather

2% of total hours

h. Public holidays per annum

8 days

i. Annual Holidays with pay

21 days duration Payments as annual holidays agreement

21 days duration Published payments for

HWP & sickness benefits

21 days duration Published payments for

HWP & sickness benefits

j. National Insurance

0% (on earnings up to and including £113.00 per week.)

13.8% on earnings above £113.00 per week

k. Industry pension /Statutory scheme

Builders / Electricians

3% of pensionable pay Between

£6,032 & £46,350

7.50%

6.5%

l. CITB levy

0.35% on earnings

m. Severance pay

2%

n. Employer's liability and third party insurance

o. Trade supervision

6%

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2.9.1.1 Calculation of Listed Labour Rates

The information that is given in Table C: Labour Total Hours Calculation can assist the User in making any adjustments that are deemed necessary to suit the particular circumstances that are applicable to their organisation.

Table C: Labour Total Hours Calculations

Trade / Skill Level Building

Operatives Plumbers *Electricians

Hours worked in full year 1802 1802 1732.50

Less inclement weather 2% (36) (36) (34.65)

Productive hours 1766 1766 1697.85

Non-productive overtime 75 75 Nil

Public Holidays (a) (7.8 x 8 = 63 )

* (b) (7.5 x 8 = 60*)

(a) 63

(a) 63

* (b) 60.00*

Hours for which payment is made 1940 1940 1792.50

Public Holiday Calculations examples are based on:

Weekly hours Divided by number of days in working week Multiplied by number of Public Holidays (PH) per year i.e 37.5 ÷ 5 = 7.5 hours x 8 (PH) = 60 hours

2.9.1.2 Trades Labour Cost Per Hour Calculations

Table D: Labour Cost Per Hour Calculations

General Labourer

Craftsman (Bricklayer)

Advanced Plumber

Trained Plumber

Electrician Electrician’s

Labourer

Basic rate per week or Per Hour

381.49 498.90 15.94 13.69 17.270 12.78

Additional payments for skills / responsibility

Nil Nil 0.56 N/A N/A N/A

Cost per week *381.49 *498.90 N/A N/A N/A N/A

Cost per hour (divide by 39*cost per week)

9.782 12.79 16.50 13.69 17.270 12.78

Add Site determined Bonus - 16%* Bonus - 30% #

1.565* 2.05* 4.95 4.107 5.181 3.834

Cost per hour (£) 11.347 14.84 21.450 17.797 22.451 16.614

NB: General Labourer and Craftsman Bricklayer Rate - as per employers offer from June 2019

Build-up of all in Labour Rates calculations - See Examples 2, 3, 4 based on the above data

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2.9.1.3 Calculation of All-in Labour Rate - Building Operatives

Example 2: Build-up of All-in Labour Rate - Building Operatives

Applicable Adjustments

General Labourer (a)

Craftsman (Bricklayer) (b)

Earnings: 1940 hrs

(Refer to Table C for Cost per hour rate) x £11.347 (a) x £14.84 (b)

22,013.18

28,789.60

Payment for sickness (7 days with pay) 171.50 171.50

Sub-total (A) 22,184.68 28,961.10

National Insurance: Secondary contribution (Employer)

0% on first £113.00 per week Calculation: 52 x 113 = £5876 - Sub-total (A)) 13.8% on remainder

2,250.60

3,185.74

CITB Levy - 0.35% on (A) 77.65 101.36

Pension 3% of pensionable pay between £6,032 and £46,350 (Calculation: Initial hours 1940 hrs (annual) Earnings - £6032 = Pensionable Pay x 3%)

479.43 682.72

Annual Holiday template payment - 176 hours (Payment hours 176 x initial Hourly Rate)

1,997.07

2,611.84

Sub-Total 26,989.43 35,542.76

Allowance for severance pay 2% 539.79 710.86

Employer’s liability 2% 539.79 710.86

Trade supervision 6% 1619.37 2132.57

Total cost per annum 29,688.38 39,097.05

Rate per hour (Divide by productive hours @1766) -Table C

£.ph 16.81 22.14

NOTES:

The foregoing calculations apply to General Labourers and Bricklayers.

Rates for other Tradesmen (e.g. Banksmen, Timbermen, Roofers, etc) are built up in a similar way by incorporating the appropriate allowances and extra payments with respect to the following:

(i) Continuous extra skill or responsibility, in accordance with Working Rule 1.2.2

(ii) As from 22 June 1995 the London addition has been abolished for craft operatives and adult labourers

(iii) As from June 1997 the tools and clothing allowance is now included in the Basic rate

CITB Levy - has been calculated as a percentage (0.35%) of payroll

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2.9.1.4 Calculation of All-in Labour Rate - Plumbers

Example 3: Build-up All in Labour Rate – Plumbers

Adjustments

Advanced Plumber (a) £

Trained Plumber (b) £

Earnings: 1940 hrs

(Refer to Table C for Cost per hour rate)

X £21.450 (a)

X £17.797 (b)

41.613.00

34,526.18

Sub-total (A) 41.613.00

34,526.18

National Insurance: Secondary contribution (Employer)

0% on first £113.00 per week

4,931.71 3,953.72

Industry Pension: 7.5% - ( Of Sub-total A) 3,120.98 2,589.46

Annual Holiday credit and sickness benefit stamp (x 52 Weeks)

(a) £35.10

(b) £31.21

1,825.20

1,622.92

Sub-total 51,490.88 42,692.29

Allowance for severance pay 2% 1,029.82 853.85

Employers Liability 2% 1,029.82 853.85

Trade supervision 6% 3,089.45 2,561.54

Total cost per annum 56,639.97 46,961.52

Rate per hour (Divide by productive hours @1766) – Table C £.ph 32.07 26.59

2.9.1.5 Calculation of All-in Labour Rate - Electricians

Example 4: Build-up of All-in Labour Rate Electricians

Adjustments

Electrician (a)

Electrician’s Labourer (b) £

Earnings: 1792.5 hrs

(Refer to Table C for Cost per hour rate) x (a) 22.451 x (b) 16.614

£40,243.42

29,780.60

Sub- total (A) 40,243.42 29,780.60

National Insurance: Secondary contribution (Employer)

0% on first £113.00 per week

4,742.70

3,298.83

Industry Pension 6.5% of Sub-Total (A)

2,615.82 1,935.74

Combined Benefit scheme 52 weeks

(a) Wks.- 3,4,5 & 6 @ £80 Wks.- 7-28 @ £160

(b) Wks.- 3,4,5 & 6 @ £75 Wks.- 7-28 @ £150

3,680.00

3,450.00

Sub-Total 51,281.94 38,465.17

Allowance for severance pay 2% 1,025.64 769.30

Employer’s liability 2% 1.025.64 769.30

Trade supervision 6% 3,076.92 2,307.91

Total cost per annum ---- 56,410.14 42,311.68

Rate per hour (Divide by productive hours @ 1698) – Table C ---- 33.22 24.92

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2.9.2 Material Prices

All material prices are sourced each year from the main suppliers in the industry. The list prices of materials, are then used in the calculation of the unit rates. (See Appendix 3 -Table E: Material Price Supplier List)

Users Note:

That material prices are subject to market changes and thus can only be indicative and the User should satisfy himself as to their validity.

Discounts: The National Schedules, do not allow for trade discounts however due to pricing of certain manufacturers certain discounts need to be applied. (Please see Appendix 3 for details)

Material Waste Allowances - have already been made for waste these allowances are set out in Table F: Waste Allowances

Delivery to site that there is an allowance (in the rates) for delivery to Site in fairly small quantities. The Contractor’s Percentage Adjustment should make allowances for extra costs incurred for additional transport, storage and waste of surplus taken from Site to the Contractor’s store for subsequent re-use.

2.9.2.1 Waste Allowances

Table F: Waste Allowances

Materials Waste Allowance

Timber 10%

Sheet Material 10%

Pipes, gutters etc 5%

Insulation 5%

Wood filler and the like 5%

Roofing tiles, slates etc. 5%

Nails, screws, bolts etc. 5%

Fencing materials 5%

Timber posts 10% (Where measured in ml)

Aggregates 5%

Reinforcement 5%

Plasterboards 5%

Plasters 10%

Angle beads etc 5%

Bricks/blocks 5%

DPC/Mortars/concrete 10%

Joint Fillers/mastics etc 5%

Paints 5%

Wallpapers 15%

Ceramic/quarry tiles 5%

Flooring 5%

Roofing felts 10%

Asphalt/liquid roofing products 5%

Glass 10%

Window sections 10% (Where measure in ml)

User please note - Items with No Wastage Allowance and items with wastage factors Generally all items of furniture or fittings etc. which are enumerated have no wastage allowance. Items which are machined, cut etc. or the full pack quantity is not used e.g. paint, adhesives etc, have wastage factors.

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2.9.2.2 Material Price Supplier List:

For a list of the Material Price Suppliers see: Appendix 3: Acknowledgements are extended to the firms who have supplied material and plant prices used in the calculation of the unit rates of which only a selection appears.

A full list is available upon request.

2.9.3 Plant Prices

As the main national providers to the industry, most of the Plant prices have been obtained from HSS or A-Plant 2019 directory of hire rates. The Plant rates include for delivery and return but not for any minimum period of hire except where explicitly stated.

2.9.4 Disposal Prices

Basic prices are included for the cost of disposal of “excavated material” off Site. Basic Prices for plant and equipment used for this works can be found at the back of the schedules under Basic Prices, Labour, Plant and Materials

Also see: D2050/005, D2052/005 and Q0525/150, Q0530/150, Q1025/100 and Q1027/100.

The cost of disposal of excavated material for these items ‘is not deemed to be included’ in Percentage adjustment and will be reimbursed at Schedule rates subject to percentage adjustment(s).

3.0 TENDERING USING THE NATIONAL SCHEDULES

3.1 The Benefits to the User

The use of pre-priced National Schedules together with appropriate Contract Conditions allows the User to issue a series of works orders, confident in the knowledge that the charges for the work when carried out will be made on a predetermined and agreed basis of measurement and pricing.

Furthermore, the Schedules can be used to make several types of pricing and payment mechanisms work.

Without the use of the National Schedules, the User either has to produce his own schedule, or invite a series of competitive quotations for the works before placing orders, or issue orders and subsequently be charged on a lump sum or Daywork basis without prior knowledge of the end cost. In the latter case there may be no clearly defined contract conditions covering such matters as insurance, payment, or standards of workmanship and materials.

The National Schedules are ideally suited for Term Contracts, and can be used for reactive or day-to-day maintenance, pre-planned repair and improvement works and programmed cyclical maintenance allowing the User to develop supplier relationships, monitor performance and track prices which is far more difficult to achieve with a fragmented and extensive supply chain chosen on an ad hoc and responsive basis.

Please Note: User Variants of Pricing and Payment Mechanisms: There are numerous variants of pricing and payment mechanisms that a User can employ. Each has its own pros and cons. ‘Users’ attention is drawn to ensure that the contract mechanisms that are specified integrate well with the organisational capabilities and resources, financial and accounting systems and practical administration of the contract based on volume and complexity.

Guidance of types of contracts: can be obtained direct from NSR.

3.2 User Requirements

The rates are designed to reflect the actual work that is undertaken and are based on direct labour, plant and materials national list prices.

Discounts / profits / overheads: Generally they do not include any discounts, profit and overheads and other costs which are usually noted in the Client Requirements or tender documents as preliminaries or contract conditions and thus provide a national baseline. There are two methods for adjusting the rates to allow for the associated costs, on-cost and profit requirements based on the local market conditions which are:

Straight tendered percentage adjustment(s) to the rates

Tendered percentage adjustment(s) to the rates and pre-pricing preliminaries, Overhead and Profit requirements separately

The National Schedules are divided into sections according to relevant Standard Method of Measurement and it makes it easier for the User to tender their requirements as:

complete Schedule(s) based on all work types e.g. Building, Mechanical and Electrical or, individual sections based on trades and selected work packages e.g. Painting and Decorating or, as groups of sections based on bundled work packages e.g. drainage and engineering works

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The Schedules have been designed so that they can be applied across:

frameworks, term contracts minor works orders nationally or any defined geographical area in any particular type of building or substantive external space with pavement works work on an estate, single or multiple buildings reactive, planned or cyclical maintenance against priority codes as part of a rolling programme for improvement works (with appropriate pricing adjustments) private Contractors, specialists Contractors, Direct Labour Organisations, Direct Labour Organisations, as part of their Service Level Agreements, can be required to use the National Schedules to provide cost targets after suitable adjustments to match the local market.

An Authority can test the competitiveness and viability of its Direct Labour Organisation through a competitive tender process and ability to match private sector Contractors.

This may lead to a mixed provision of services with in-house work packages and outsourced work packages.

Rates as a long-term project and ensure that they have adequate technical support services in their organisation.

Contract conditions are specifically designed for this type of work.

3.3 What Tendered Percentage Adjustments Include:

The tendered percentage adjustment to schedule rates is deemed to include but not limited to:

Complying with preliminaries particulars, conditions of contract and preambles

Trade discount adjustment Contractor’s overheads and profit

Management and staff

Disbursements arising from the employment of work people

Service and facilities

Travelling time where applicable

Permit to work

Any Site establishment costs necessary including temporary telephones

Client training

Compliance with Regulations / Safety Health and Welfare regulations and policies / CDM Regulations

All necessary security precautions

Control of noise

Landfill tax / Rubbish removal including tipping

Setting out and checking for dimensions

Off-loading, manhandling and transport and delivery of materials and plant

Square cutting and waste where different from allowance included in rates

Protection, drying and cleaning

Hand tools and mechanical plant where not included in Schedule of Description and Prices

Temporary works

Scaffolding - temporary staging up to 1.5 metres and ladders for access to buildings of not more than 2 stories in height

Adjustment to standard specification requirements notified to tenderers and/or variations for local conditions

Records and drawings

General bonding and earthing / Inspection testing and commissioning of the works

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3.4 Tender Checklist – Guide

There are some general principles that apply to most tenders, other requirements will be specific to the User and the regulatory or governance framework operated under.

Given the variety of possible combinations of tender requirements the following are considered as a guide as to the key questions to be addressed during tender. See Table G - Tender Check List

1. What type of work will be included in this contract?

The NSR Schedules do not define what information must be given at tender stage about the type of work involved and the range expected and it is up to the User to determine what is to be included or not. The NSR Schedules allow the User complete flexibility in specifying the likely type(s) of work but they should not be used for cherry picking rates.

As an indication of the anticipated scope of the work the following information is given as a guide:

* No. of properties / Asset List No. of orders per week / Annual Average value of order

Average classification of work in main trade groups e.g.:

Bricklaying and labouring ....% Joinery ....% Plumbing ....% Mechanical ....% Electrical ....%

*Define the area / site(s) - the tenderer must be advised of the location and conditions affecting his work.

For example, an area/site(s) could be an estate, a building or a geographical area.

2. What should the duration of the Contract be?

The simple answer is that there is no right answer.

The User should define the duration of the contract whether it is for 1 year or more.

The length may be determined by the type of organisation, standing orders or regulations.

Typically, an organisation may wish to have a minimum period of 3-5 years with a potential extension of 2-5 years.

Some complex organisations, where considerable set-up costs are involved, opt for 5+5+5 years based on performance where the contractor(s) may deliver a service effectively for fifteen years with break clause review points.

3. Should a single or multiple contractor(s) be used?

This largely depends on the type of procuring organisation and the size of the contract.

For a large organisation with many thousands of orders each year over a disparate geography, they may prefer to have multiple contractors awarded contracts on the basis of geography or trade.

Other organisations may prefer a single point of responsibility and desire a Contractor to manage all trades

Table G: Tender Check List ‐ Questions & Answers

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4. What pricing and payment mechanism is right for the User?

The User has to decide whether an inclusive percentage adjustment is better suited to their organisation or whether pre-pricing contract requirements through Preliminaries and OH/P is more effective. Whatever the choice, the tender requirements and contract conditions should accurately capture what the Contractor is required to do and based on what the organisation is effectively able to administrate. Some considerations will include:

- Fixed price or fluctuating: (for fixed price work it is only necessary to identify the rates which will apply by reference to a particular edition of the schedule. For fluctuating contracts, which are expected to be for periods over one year duration.

It is recommended that a fixed date be specified when the rates will be varied, (I.e. all work executed after 1st August will be priced at that schedule rate until 31st July the following year.)

- Dayworks and how these will be calculated, for example under clause 5.4 in the JCT MTC contract.

- Travelling (the cost of this item should be included in the tender percentage adjustment) Where the properties to be maintained are spread over a wide area this could be a significant overhead cost and relevant information should be given to tenderers. Some contracts provide for adjustments to the tendered percentage to allow for different distances travelled to jobs effectively creating zone based adjustments.

- Plant: the cost of plant such as mechanical excavators, mixers and small plant etc. is included where appropriate and identified in the breakdown of the rates. If the Client intends to make some plant available to the contractor it should be clearly identified in the preliminaries giving details of the terms under which it may be used.

- CDM Regulations: the Client should establish which of the works undertaken will require compliance with the CDM regulations, particularly bearing in mind the changes which come into force on 6th April 2015. We would suggest that the Client familiarises themselves with the new regulations and appoints a “Principle Designer” if necessary.

The cost to the Contractor in complying with the CDM Regulations should then be included in the tender.

- Emergency Work during normal working hour’s emergency work may be paid for under the provisions of clause 5.8 of the JCT MTC or specified in other forms of contract.

Such work outside normal working hours may be paid at Daywork rates and may involve a minimum call-out charge.

Whatever the User determines, the tender documents should give specific information on how such orders will be executed and paid for and what levels of priority will be used.

5. How is the work to be measured?

The work may be measured by the Contract Administrator or Service Manager; alternatively the contract can provide for the Contractor to carry out the appropriate measurement for subsequent verification of the account by the Contract Administrator or Service Manager.

6. What form of contract is appropriate?

Most standard forms require some amendments to make them useful for the User defined requirements

However, amendments should be drafted carefully and care should be taken so as to not impact any cross references or subsequent clauses.

The NSR Schedules can be used simply with the JCT MTC forms and with the required drafting changes, can be used with the NEC3 TSC as the pricing framework.

7. What about the Preliminaries, Preambles and specifications?

The NSR Schedules come with a standard set of preambles and specifications;

The preliminaries can be requested separately and are ordered based on the form of contract that is being used as stated above.

It is important that the User reviews these and defines the conditions and the character of work as carefully as possible at tender stage and the circumstances in which it is executed.

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8. What about Emergency Services?

(See 4. Pricing and Payment above). The contractor can be instructed during tender that he must provide and maintain an out-of-hours emergency service to avoid danger to the health and safety of residents and the public or serious damage to…