-
TRADITIONAL & MODERN QUANTITY SURVEYING
PRACTICE
Lecture by Upul S. Ranaweera PG Cert. in Arb., BSc. (Hons) QS,
Dip. in Eng., IEng., MIIES, MAIQS, MRICS Chartered Quantity
Surveyor Contract Manager RICS - Assessor/Counsellor AIQS -
Assessor/Counsellor
4 April 2015
-
Origin of Quantity Surveying
Origin of Quantity Surveying dated back to ancient Egyptian
civilization who used to dedicate personnel to carry out estimates
and costing for their magnificent structures and buildings (such as
pyramids).
Quantity Surveying developed in to a occupation during 17th
century for the restoration of London after the Great Fire.
In 1836 the Quantity Surveying profession received a recognition
when the new Houses of Parliament of Great Britain, designed by Sir
Charles Barry, became the first major public contract to be fully
measured and tendered using detailed bill of quantities for
financial accountability
-
TRADITIONAL QUANTITY SURVEYING PRACTICE
In olden days the duties of a Quantity Surveyor were limited
to:- a) measuring quantities or surveying quantities for proposed
construction works to arrive the value of the proposed works
and
b) measuring quantities or surveying quantities to arrive the
value of the completed works.
-
This scope has been extensively evolved and currently the
Quantity Surveyor has to undertake not only the above conventional
Quantity Surveying works but to perform overall cost management
role in the Construction Industry. Now the term Quantity Survey is
evolving as Construction Cost Directors/Construction Cost Managers
in the Construction Industry. The history of the Quantity surveyor
from the middle of the seventeenth century.
TRADITIONAL QUANTITY SURVEYING PRACTICE
-
This traditional role, that is still practiced by some and
especially by small to medium sized projects can be briefly
described a measure and value system. Approximate estimates of the
initial cost of building are prepared using a single price method
of estimating, and where this cost was acceptable to the client
then the design was developed by the architect.
TRADITIONAL QUANTITY SURVEYING PRACTICE
-
Subsequently the Quantity surveyor would produce bills of
quantities for tendering purposes, the work would be measured for
progress payments and a final account prepared on the basis of the
tender documentation (see Fig. 1.1for Traditional Quantity
Surveying activities)
TRADITIONAL QUANTITY SURVEYING PRACTICE
-
10. Settlements of contractual claims and dispute resolution
9. Financial statements ,Discharge and Final Accounts
8. Interim valuations and payments
7. Cost control during construction
6. Tendering and Estimating
5. Preparation/compilation of Tender/Contract documents.
4. Measurement and quantification leading to preparation of Bill
of Quantities.
3 . Procurement /Standard Form advice
2. Cost planning/cost controlling during planning
1. Preliminary cost advice (approximate estimates)
TRADITIONAL QUANTITY SURVEYING PRACTICE - Figure 1 - Traditional
Quantity Surveying activities
-
At the very inception of a construction project, the prospective
Employer required know to what will be the budget/approximate
estimate of the prospective project and other cost impacts;
1. Preliminary cost advise(approximate estimates),Life Cycle
Cost, Cost Benefit analysis, Cost moduling etc.
to get a decision, whether to go ahead or to amend the scope or
to post phone or cancel the project.
-
The Quantity Surveyor with his vast knowledge in construction
cost and considering the present day market conditions and changes
in social , political and economic conditions he will give his cost
prediction. Refer module COST STUDIES for details
1. Preliminary cost Cond.
-
If the predicted approximate estimate is within the limit of his
purse and considering other factors the Employer will requested the
Engineer/Architect to proceed with the developing of required
drawings and other tender documents.
2 Cost planning and Pre contract cost controlling
-
During this period the Quantity Surveyor has to a another vital
duty called cost planning and pre contract cost controlling. The
following techniques are used when performing cost planning 1)
Elemental cost planning 2) Comparative cost planning 3) Cost plan
in use. Refer module COST STUDIES for details
2 Cost planning and Pre contract Cond
-
The following are some of the Standard leading form of contracts
* JCT form (Joint Contract Tribunal). * FIDIC form (International
form)(Federation Internationale Dse Ingenieurs Counseils. * NEC
form (New Engineering Contacts) * ICTAD form (Institute for
Construction Training and Developments Sri Lanka) (SCA/1,SBD/01(
Contract 10million to 100 million),SBD/02(Contract over
100million)SBD/03 (Contract up to 10million),SBD/04(For Design
& Build Contracts)
3. Advice on suitable Form of Contract and suitable Procurement
Method.
-
The following are some of the leading procurement methods *
Traditional methods * Design and build * Management contracting *
Construction management * Build, operate and transfer (B.O.T)
(Financial Arrangement)
3.1...suitable Procurement Method.
-
The Bill of Quantities is a document which consisting of list of
adequately described work items along with the accurate quantities
with related units or money allocations displayed under different
trades in accepted sequence to indicate the entire scope of works
of a project and will have to be prepared by a Quantity Surveyor in
accordance with the rules and recommendations laid down in one of
the reputed Standard Method of Measurements. SMM7,CESSM3,POMI
etc.
4. Measurement and quantification leading to preparation of Bill
of Quantities
-
4. Bill of Quantities - The objects
a) To provide the uniform information of the quantities of work
as to enable tenders to be prepared efficiently and accurately.
b) Help Employers/ Consultants for Apple to apple comparison of
the Tender.
c) When a Contract has been entered into, to provide for use of
the priced Bill of Quantities in the valuation of work executed
under original scope, and to use as a based in valuing any future
varied Works.
-
Tender(Bid) Documents * Form of Tender( Bid) with Appendix
* Form of Agreement (Agreement)
* Information and Instructions to Tenderers * Particular
Conditions (Part 2)(Contract Data) * General Conditions of Contract
(part 1)
CONTD..
5. Preparation/Compilation of Tender/Contract documents/ Tender
(Bid) Documents
-
* Particular Specifications
* General Specifications
* Drawings
* Bill of Quantities/Schedule of rates
* Specimen Standard Forms (Bonds & Guarantees)
5. Preparation(Compilation) of Tender, Contract documents,
Tender (Bid) Documents Cond
-
* Duly filled and signed above mentioned Tender Documents
PLUS
* Memorandum of Understanding/Letter of Intent (If any)
* Letter of Acceptance (ACCEPT)
* All pre-tender and post-tender correspondence (Prior to
issuing Letter of Acceptance.) (Note : optional- explain)
5. Preparation(Compilation) of Tender, Contract documents,
Tender (Bid) Documents Cond
-
6. Tendering & Estimating All Quantity Surveyors are
essential to be Estimators .But all Estimators are not essential to
be Quantity Surveyors.
-
6. Tendering & Estimating Cond Calling tenders ,Opening
tenders ,tender evaluation based on predetermined estimate,
Preparing reports on tenders are to be done by the
architects/contract administrators quantity surveyor where
estimating and converting scientifically prepared estimate to
tender after considering various factors (site visits reports
,capacity ,amount of provisional sums ,professional team etc.) by
the contractors quantity surveyor.
-
7. Cost control during construction During the construction
period the Quantity Surveyor should advise the Architect/Contract
Administrator ,before issuing the Variation Orders by preparing the
variation accounts to predict the cost changes due to prospective
variation orders and other required cost controlling works such as
cost reports ,comparative cost options etc. (Cost Report to the
Employer by predicting the anticipated final account)
-
During the construction period the Contractors Quantity Surveyor
should advise the Contractor by preparing cost proposals,
cost/value comparisons ,loss /profit predictions , anticipated
final value and anticipated final cost (Cost Reports to the
Contractor)
7. Cost control during construction Cond..
-
8. Interim valuations and payments After establishing the
Contract the Contractors are entitled to claim the value of work
executed and other values such as Materials on Site, Variations
,Adjustments of Provisional Sums, Cost fluctuations , Claims
,Recovery of Advance Payments ,Liquidated damages as stipulated in
the Contract.
-
Hence the Contractors Quantity Surveyor has to prepare and the
Architects /Contract Administrators Quantity Surveyor has to
certify.
-
9. Financial statements ,Discharge and Final Accounts Providing
financial statement as various stages during the construction
period as specified in the contract and agreeing all work done
under original scope ,variation orders, provisional sums,
fluctuation claims (if any) and other all general claims the
quantity surveyor is completing the final accounts and obtain the
Contractors agreement and the statement of discharge
-
10. Settlements of contractual claims and dispute resolution
Giving notices, contemporary records, disruption claims, Extension
of Time claims, amicable settlements to be done . Dispute
resolution activities also to be handled
-
1. Modern Quantity Surveying Practice
CONTD.
1. Investment appraisal 2. Advice on cost limits and budgets 3.
Whole life costing 4. Value Engineering 5. Risk analysis 6.
Insolvency services 7. Cost engineering services 8. Sub contract
administration 9. Technical auditing 10.Project management
11.Facilities management 12.Advice on contractual disputes
13.Employers agent
-
1. Investment Appraisal
One of the key areas of long-term decision-making that firms
must tackle is that of investment - the need to commit funds by
purchasing land, buildings, machinery and so on, in anticipation of
being able to earn an income greater than the funds committed. In
order to handle these decisions, firms have to make an assessment
of the size of the outflows and inflows of funds, the lifespan of
the investment, the degree of risk attached and the cost of
obtaining funds.
-
The main stages in the capital budgeting cycle can be summarized
as follows: * Forecasting investment needs. * Identifying
project(s) to meet needs. * Appraising the alternatives. *
Selecting the best alternatives. * Making the expenditure. *
Monitoring project(s).
-
2. Advice on cost limits and budgets,
There is one thing that is definite, if you are entering into a
realty investment that involves construction, you need a well
defined budget. You do not want to be ball parking the figures
particularly if you are going to be arranging financing to carry
out the construction.
-
It is imperative that you know your construction budgets limits.
If you dont then you could end up with a building partially
finished, with no money to carry on, and end up in a most
disastrous financial situation. Refer module COST STUDIES
-
3. Whole life costing Whole-life cost, or Life-cycle cost (LCC),
refers to the total cost of ownership over the life of an asset.
Also commonly referred to as "cradle to grave" or "womb to tomb"
costs. Refer module COST STUDIES
-
4. Value Engineering
Value Engineering can be defined as an organized approach to
providing the necessary functions at the lowest cost From the
beginning the concept of value engineering was seen to be cost
validation exercise, which did not affect the quality of the
product. The straight omission of an enhancement or finish would
not be considered as value engineering.
Refer module COST STUDIES
-
5. Risk analysis No construction project is risk free. Risk can
be managed, minimized, shared, transferred or accepted. It cannot
be ignored Sir Micheal Lathem The Quantity Surveyor should advice
on risk in construction and take steps to manage the risk at
minimum cost. Refer Module on Production Organisation
-
6. Insolvency services The construction industry is responsible
for more than its fair share of bankruptcies and liquidations.
Limited liability companies become insolvent and then go into
liquidation. The Quantity Surveyors expert knowledge in cost, he
will help to perform the insolvency services.
-
7. Cost engineering services Cost engineering is an area of
engineering practice concerned with the "application of scientific
principles and techniques to problems of cost estimating, cost
control, business planning and management science, profitability
analysis, project management, and planning and scheduling."
-
Cost engineering practitioners tend to be: specialized in
function (e.g., cost estimating, planning and scheduling, etc.);
focused on either the asset management or project control side of
the process; and focused on a particular industry (e.g.,
engineering and construction, manufacturing, information
technology, etc.); or asset type (e.g., chemical process,
buildings, software, etc.).
-
8. Sub contract administration The Contractors Quantity Surveyor
should have ability to select, control, and manage its
subcontractors. Making a proper letter of invitation to obtain
proper quotation Evaluation Sub-contract agreement Certifying
valuations Final accounts Discharge
-
9. Technical auditing Compare the final account with contract
bills Examine the records available Discuss aspects with relevant
staff Examine the procedure used Prepare a report on the
findings
-
10. Project Management Currently, potential investors prefer to
have Quantity Surveyors to handle project management services since
cost factor is more prominent among the factors; QUALITY, TIME and
COST
-
11. Facility Management One of the simplest and most direct
definition of facilities management is that given by the Royal
Institution of Chartered Quantity Surveyors ,which states that FM
involves the total management of all services that support the
business of an organization and identifies the opportunity that
this relatively new discipline provides to the Quantity Surveying
profession.
-
12. Advice on contractual disputes Due to the specialist
knowledge in contract conditions his advices are requested to solve
contractual disputes.
-
13. Employers Agent Services of quantity surveyors are requested
by the Employers to act as the Employers `Agent considering
quantity surveyors knowledge in various disciplines related to
construction industry specially with related to construction
cost.
-
RICS Professional Regulation and Consumer Protection department
February 2000 Professional ethics guidance note
-
ETHICS & VALUES OF A QUANTITY SURVEYOR RICS has a set of
central values it expects members to apply in their work. Following
this set of values is one of the key features that defines the
professionalism of all chartered and technical surveyors. You must
base all your actions and judgments on these core values:
-
1. Act with integrity. Never put your own gain above the welfare
of your clients or others to whom you have a professional
responsibility. Respect their confidentiality at all times and
always consider the wider interests of society in your
judgments.
-
2. Always be honest. Be trustworthy in all that you do never
deliberately mislead, whether by withholding or distorting
information
-
3. Be open and transparent. Share the full facts with your
clients, making things as plain and intelligible as possible. 4. Be
accountable. Take full responsibility for your actions, and dont
blame others if things go wrong
-
5. Act within your limitations. Be aware of the limits of your
competence and dont be tempted to work beyond these. Never commit
to more than you can deliver. 6. Be objective at all times. Give
clear and appropriate advice. Never let sentiment or your own
interests cloud your judgement
-
7. Always treat others with respect. Never discriminate against
others. 8. Set a good example. Remember both your public and
private behavior could affect your own, RICS and other members
reputations
-
9. Have the courage to make a stand. Be prepared to act if you
suspect a risk to safety or malpractice of any sort
-
Any Questions in QS Practice?
Traditional & Modern Quantity Surveying PracticeOrigin of
Quantity SurveyingTRADITIONAL QUANTITY SURVEYING PRACTICEIn olden
days the duties of a Quantity Surveyor were limited to:-a)
measuring quantities or surveying quantities for proposed
construction works to arrive the value of the proposed works and b)
measuring quantities or surveying quantities to arrive the value of
the completed works. This scope has been extensively evolved and
currently the Quantity Surveyor has to undertake not only the above
conventional Quantity Surveying works but to perform overall cost
management role in the Construction Industry. Now the term Quantity
Survey is evolving as Construction Cost Directors/Construction Cost
Managers in the Construction Industry. The history of the Quantity
surveyor from the middle of the seventeenth century. This
traditional role, that is still practiced by some and especially by
small to medium sized projects can be briefly described a measure
and value system. Approximate estimates of the initial cost of
building are prepared using a single price method of estimating,
and where this cost was acceptable to the client then the design
was developed by the architect. Subsequently the Quantity surveyor
would produce bills of quantities for tendering purposes, the work
would be measured for progress payments and a final account
prepared on the basis of the tender documentation (see Fig. 1.1for
Traditional Quantity Surveying activities)Slide Number 7At the very
inception of a construction project, the prospective Employer
required know to what will be the budget/approximate estimate of
the prospective project and other cost impacts; The Quantity
Surveyor with his vast knowledge in construction cost and
considering the present day market conditions and changes in social
, political and economic conditions he will give his cost
prediction. Refer module COST STUDIES for detailsIf the predicted
approximate estimate is within the limit of his purse and
considering other factors the Employer will requested the
Engineer/Architect to proceed with the developing of required
drawings and other tender documents. During this period the
Quantity Surveyor has to a another vital duty called cost planning
and pre contract cost controlling. The following techniques are
used when performing cost planning1) Elemental cost planning2)
Comparative cost planning3) Cost plan in use. Refer module COST
STUDIES for detailsThe following are some of the Standard leading
form of contracts * JCT form (Joint Contract Tribunal). * FIDIC
form (International form)(Federation Internationale Dse Ingenieurs
Counseils. * NEC form (New Engineering Contacts) * ICTAD form
(Institute for Construction Training and Developments Sri Lanka)
(SCA/1,SBD/01( Contract 10million to 100 million),SBD/02(Contract
over 100million)SBD/03 (Contract up to 10million),SBD/04(For Design
& Build Contracts) The following are some of the leading
procurement methods * Traditional methods * Design and build *
Management contracting * Construction management * Build, operate
and transfer (B.O.T) (Financial Arrangement) The Bill of Quantities
is a document which consisting of list of adequately described work
items along with the accurate quantities with related units or
money allocations displayed under different trades in accepted
sequence to indicate the entire scope of works of a project and
will have to be prepared by a Quantity Surveyor in accordance with
the rules and recommendations laid down in one of the reputed
Standard Method of Measurements. SMM7,CESSM3,POMI etc.Slide Number
15Tender(Bid) Documents* Form of Tender( Bid) with Appendix* Form
of Agreement (Agreement) * Information and Instructions to
Tenderers* Particular Conditions (Part 2)(Contract Data) * General
Conditions of Contract (part 1) * Particular Specifications *
General Specifications * Drawings* Bill of Quantities/Schedule of
rates* Specimen Standard Forms (Bonds & Guarantees) * Duly
filled and signed above mentioned Tender Documents PLUS *
Memorandum of Understanding/Letter of Intent (If any) * Letter of
Acceptance (ACCEPT) * All pre-tender and post-tender correspondence
(Prior to issuing Letter of Acceptance.) (Note : optional-
explain)6. Tendering & Estimating All Quantity Surveyors are
essential to be Estimators .But all Estimators are not essential to
be Quantity Surveyors.6. Tendering & Estimating CondCalling
tenders ,Opening tenders ,tender evaluation based on predetermined
estimate, Preparing reports on tenders are to be done by the
architects/contract administrators quantity surveyor where
estimating and converting scientifically prepared estimate to
tender after considering various factors (site visits reports
,capacity ,amount of provisional sums ,professional team etc.) by
the contractors quantity surveyor.7. Cost control during
constructionDuring the construction period the Quantity Surveyor
should advise the Architect/Contract Administrator ,before issuing
the Variation Orders by preparing the variation accounts to predict
the cost changes due to prospective variation orders and other
required cost controlling works such as cost reports ,comparative
cost options etc. (Cost Report to the Employer by predicting the
anticipated final account) During the construction period the
Contractors Quantity Surveyor should advise the Contractor by
preparing cost proposals, cost/value comparisons ,loss /profit
predictions , anticipated final value and anticipated final cost
(Cost Reports to the Contractor)8. Interim valuations and
paymentsAfter establishing the Contract the Contractors are
entitled to claim the value of work executed and other values such
as Materials on Site, Variations ,Adjustments of Provisional Sums,
Cost fluctuations , Claims ,Recovery of Advance Payments
,Liquidated damages as stipulated in the Contract. Hence the
Contractors Quantity Surveyor has to prepare and the Architects
/Contract Administrators Quantity Surveyor has to certify. 9.
Financial statements ,Discharge and Final AccountsProviding
financial statement as various stages during the construction
period as specified in the contract and agreeing all work done
under original scope ,variation orders, provisional sums,
fluctuation claims (if any) and other all general claims the
quantity surveyor is completing the final accounts and obtain the
Contractors agreement and the statement of discharge10. Settlements
of contractual claims and dispute resolutionGiving notices,
contemporary records, disruption claims, Extension of Time claims,
amicable settlements to be done . Dispute resolution activities
also to be handledModern Quantity Surveying Practice1. Investment
AppraisalOne of the key areas of long-term decision-making that
firms must tackle is that of investment - the need to commit funds
by purchasing land, buildings, machinery and so on, in anticipation
of being able to earn an income greater than the funds committed.
In order to handle these decisions, firms have to make an
assessment of the size of the outflows and inflows of funds, the
lifespan of the investment, the degree of risk attached and the
cost of obtaining funds.The main stages in the capital budgeting
cycle can be summarized as follows:* Forecasting investment needs.*
Identifying project(s) to meet needs.* Appraising the
alternatives.* Selecting the best alternatives.* Making the
expenditure.* Monitoring project(s).2. Advice on cost limits and
budgets,There is one thing that is definite, if you are entering
into a realty investment that involves construction, you need a
well defined budget. You do not want to be ball parking the figures
particularly if you are going to be arranging financing to carry
out the construction. It is imperative that you know your
construction budgets limits. If you dont then you could end up with
a building partially finished, with no money to carry on, and end
up in a most disastrous financial situation. Refer module COST
STUDIES3. Whole life costing Whole-life cost, or Life-cycle cost
(LCC), refers to the total cost of ownership over the life of an
asset. Also commonly referred to as "cradle to grave" or "womb to
tomb" costs. Refer module COST STUDIES4. Value EngineeringValue
Engineering can be defined as an organized approach to providing
the necessary functions at the lowest costFrom the beginning the
concept of value engineering was seen to be cost validation
exercise, which did not affect the quality of the product. The
straight omission of an enhancement or finish would not be
considered as value engineering. Refer module COST STUDIES5. Risk
analysisNo construction project is risk free. Risk can be managed,
minimized, shared, transferred or accepted. It cannot be ignored
Sir Micheal LathemThe Quantity Surveyor should advice on risk in
construction and take steps to manage the risk at minimum
cost.Refer Module on Production Organisation 6. Insolvency
servicesThe construction industry is responsible for more than its
fair share of bankruptcies and liquidations. Limited liability
companies become insolvent and then go into liquidation. The
Quantity Surveyors expert knowledge in cost, he will help to
perform the insolvency services. 7. Cost engineering servicesCost
engineering is an area of engineering practice concerned with the
"application of scientific principles and techniques to problems of
cost estimating, cost control, business planning and management
science, profitability analysis, project management, and planning
and scheduling."Cost engineering practitioners tend to be:
specialized in function (e.g., cost estimating, planning and
scheduling, etc.); focused on either the asset management or
project control side of the process; and focused on a particular
industry (e.g., engineering and construction, manufacturing,
information technology, etc.); or asset type (e.g., chemical
process, buildings, software, etc.).8. Sub contract
administrationThe Contractors Quantity Surveyor should have ability
to select, control, and manage its subcontractors. Making a proper
letter of invitation to obtain proper
quotationEvaluationSub-contract agreementCertifying valuationsFinal
accountsDischarge9. Technical auditingCompare the final account
with contract billsExamine the records availableDiscuss aspects
with relevant staffExamine the procedure usedPrepare a report on
the findings10. Project ManagementCurrently, potential investors
prefer to have Quantity Surveyors to handle project management
services since cost factor is more prominent among the factors;
QUALITY, TIME and COST11. Facility ManagementOne of the simplest
and most direct definition of facilities management is that given
by the Royal Institution of Chartered Quantity Surveyors ,which
states that FM involves the total management of all services that
support the business of an organization and identifies the
opportunity that this relatively new discipline provides to the
Quantity Surveying profession.12. Advice on contractual disputesDue
to the specialist knowledge in contract conditions his advices are
requested to solve contractual disputes.13. Employers AgentServices
of quantity surveyors are requested by the Employers to act as the
Employers `Agent considering quantity surveyors knowledge in
various disciplines related to construction industry specially with
related to construction cost.RICS Professional Regulation and
Consumer Protection departmentFebruary 2000Professional ethics
guidance noteETHICS & VALUES OF A QUANTITY SURVEYOR RICS has a
set of central values it expects members to apply in their work.
Following this set of values is one of the key features that
defines the professionalism of all chartered and technical
surveyors. You must base all your actions and judgments on these
core values:1. Act with integrity. Never put your own gain above
the welfare of your clients or others to whom you have a
professional responsibility. Respect their confidentiality at all
times and always consider the wider interests of society in your
judgments.2. Always be honest. Be trustworthy in all that you do
never deliberately mislead, whether by withholding or distorting
information3. Be open and transparent. Share the full facts with
your clients, making things as plain and intelligibleas possible.4.
Be accountable. Take full responsibility for your actions, and dont
blame others if things go wrong5. Act within your limitations. Be
aware of the limits of your competence and dont be tempted to work
beyond these. Never commit to more than you can deliver.6. Be
objective at all times. Give clear and appropriate advice. Never
let sentiment or your own interests cloud your judgement7. Always
treat others with respect. Never discriminate against others.8. Set
a good example. Remember both your public and private behavior
could affect your own, RICS and other members reputations9. Have
the courage to make a stand. Be prepared to act if you suspect a
risk to safety or malpractice ofany sortAny Questions in QS
Practice?