The Formula Rules give a formula to be applied to each work category (Rule 9), a second formula has been prepared for use with
01 Demolitions
02 Excavation & disposal
03 Filling: Imported, hardcore & granular 04 Piling: Concrete 05 Piling: Steel 06 Concrete: In situ 07 Concrete: Formwork 08 Concrete: Reinforcement 09 Concrete: Precast 10 Brickwork & blockwork 11 Stonework
12 Softwood carcassing & structural members 13 Metal: Decking
14 Metal: Miscellaneous 15 Cladding & covering: Glazed 16 Cladding & covering: Fibre cement 17 Cladding & covering: Coated steel 18 Cladding & covering: Plastics
19 Cladding & covering: Glass reinforced plastics 20 Cladding & covering: Slate & tile
21 Cladding & covering: Lead 22 Cladding & covering: Aluminium 23 Cladding & covering: Cooper 24 Cladding & covering: Zinc 25 Waterproofing: Asphalt
26 Waterproofing: Built-up felt roofing 27 Waterproofing: Liquid applied coatings 28 Boards, fittings & trims: Softwood 29 Boards, fittings & trims: Hardwood 30 Boards, fittings & trims: Manufactured 31 Linings & partitions: Plasterboard 32 Linings & partitions: Self-finished 33 Suspended ceilings
34 Raised access floors 35 Windows & doors: Softwood 36 Windows & doors: Hardwood 37 Windows & doors: Steel 38 Windows & doors: Aluminium 39 Windows & doors: Plastics 40 Ironmongery
41 Glazing
42 Finishes: Screeds
43 Finishes: Bitumen, resin & rubber latex flooring 44 Finishes: Plaster
45 Finishes: Rigid tiles & terrazzo work 46 Finishes: Flexible tiles & sheet coverings 47 Finishes: Carpets
48 Finishes: Painting & decorating 49 Sanitary appliances
50 Insulation
51 Pavings: Coated macadam & asphalt 52 Pavings: Slab & block
53 Site planting 54 Fencing
55 Pipes & accessories: Spun & cast iron 56 Pipes & accessories: Steel
57 Pipes & accessories: Plastics 58 Pipes & accessories: Copper 59 Pipes & accessories: Aluminium 60 Pipes & accessories: Clay & concrete
the balance of adjustable work (i.e., work ranking for adjustment but which is not capable of allocation to any work category, Rule 26) and a third formula for use for valuations after Practical Completion and in the Final Certificate (Rule 28). After giving corresponding formulae for use with work groups (Rules 29 and 38), five formulae applicable to five types of specialist engineer- ing installations are given (Rules 50, 54, 58, 63 and 69). These for- mulae are for use where there are works of a specialist nature and the building formula would not truly reflect the nature of the works to be carried out and more importantly would not reflect the costs associated with this type of work. Formulae are pro- vided for the following categories of specialist work
● Electrical installations.
● Heating and ventilating and sprinkler installations. ● Lift installations.
● Catering equipment. ● Structural steelwork.
In order to apply the appropriate formula to each work category, all the measured work items in the bills of quantities must be allocated to work categories. This should be done before tenders are invited, either by annotating the bills or by preparing sched- ules. Then, when interim valuations are done, the value of work included in them must be allocated accordingly. Annotating bills may be done by giving the work category number against each item in a column next to the item reference column.
There will be some work or goods, the value of which is included in a valuation, which cannot easily (if at all) be allocated to work categories or which is excluded from adjustment and this is dealt with as discussed below.
Balance of adjustable work
This is the balance of main contractor’s work ‘which is properly subject to formula adjustment but which is neither allocated to a Work Category nor is Specialist Engineering Work’.9Some of the
items that would fall within this definition are preliminaries, water for the works, insurances. The amount of the adjustment to the balance of adjustable work for any valuation period is in the
same proportion as the total amount of adjustment of work allo- cated to work categories bears to the total value of work in all work categories (see Form D in the following worked example).
Multiple category items
Sometimes a bill item, such as an alterations item in a ‘Works on Site’ bill, may relate to work falling within more than one work category. Such an item is allocated to the work category to which the largest part of the item relates.
Provisional sums
Provisional sums for work which will be paid at current prices (e.g., dayworks, work carried out by statutory undertakers and other public bodies) are not allocated to work categories but are separately identified as not subject to adjustment.
Provisional sums for work to be carried out by the general con- tractor are not allocated to work categories in the bills, but when the work has been executed, the measured items set against the provisional sum will then be allocated to appropriate categories or, if relating to specialist work, will be adjusted using the appro- priate formula.
Fixing of items supplied by the Employer
‘Fix only’ items may be dealt with either by
(a) allocating the item to an appropriate work category; (b) including the item in the balance of adjustable work; or (c) applying an index specially created for the purpose.
Whichever method is to be used must have been previously speci- fied in the bills or agreed with the contractor in writing.
Variations
All additions items priced at bill rates or analogous rates or at rates current at the Base Date will rank for adjustment and should be
allocated to work categories. Variations valued on a daywork basis, as a Schedule 2 Quotation or otherwise valued at rates or prices current at the date of execution should be excluded from the oper- ation of the formulae.
Unfixed materials and goods
The value of unfixed materials and goods are normally excluded from adjustment. Only when they have been incorporated into the work will they become adjustable in one of the ways described above. However, this rule does not apply in the specialist engin- eering formulae for, catering equipment, structural steelwork and lift installations. Finally, under Rule 27 b, it does state that if an early delivery of materials is required, it is possible to consider them for fluctuations where such special arrangements have been set out in the tender documents and recorded in the contract documents.
Claims for loss and/or expense
Claims for extra payments under clauses 4.23 and 3.24 are simi- larly excluded, as they will be valued at their full value.