Whether it be assessing insurance claims, variation claims, or the remediation of defective works, a quantum expert is called upon to provide an independent subjective opinion to assist an insurer or a tribunal or, in some cases, to help parties settle a matter outside of formal proceedings.

Before any quantification can occur, a construction quantum expert needs to understand the full scope of work involved.

A detailed breakdown of the personnel, labour, plant, and materials for each portion of work activity needs to be provided by the quantum expert. Blended rates should not be used as they do not demonstrate the potential cost and can be viewed as subjective.

If rates from a price book are used, detailed reasoning should be provided as to why a first principal estimate cannot be provided. Activities such as scaffolding maybe difficult to price without a temporary works design, and the M2 rate for scaffolding from a price book may be useful as a guide.

The industry profit margins detailed in price books are a good reference point when applying profit if no other primary data is available. However, the quantum expert should use their own judgement and experience and investigate other sources when applying profit margins, and should not solely rely on price books.

If no primary data has been supplied to support the labour costs, a quantum expert can make a reasoned assessment on the cost of each type of trade by referring to primary data such as specific Enterprise Bargaining Agreements and modern awards to determine the salaries and oncosts. This approach is more subjective than simply stating the average rate of a painter is X or Y in the expert’s experience. Again, price books should not be relied upon as the sole source of data.

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