Dissertation

Engineering and Environment

MSc Distance Learning Programmes

“The evolving role of the Quantity Surveyor in the post recession economy”

BE1275

Dissertation

Prepared by Scott Gibb (12034714)

Word Limit Counting 18,981

Scott Gibb The evolving role of the Quantity Surveyor in the post recession economy Page 1

Table of Contents

Abstract Page 4

1.1 Introduction Page 5

1.2 Rationale Page 6

1.3 Hypothesis Page 6

1.4 Aim of Dissertation Page 6

1.4.1 Specific Objectives Page 7

1.4.2 Measureable Objectives Page 7

1.4.3 Attainable Objectives Page 7

1.4.4 Realistic Objectives Page 7

1.4.5 Time Based Objectives Page 7

1.5 Outline Methodology Page 8

1.5.1 Primary Research Page 8

1.5.2 Case Studies Page 8

1.5.3 PESTEL Analysis Page 8

1.5.4 Analysis of Data Page 9

1.5.5 Project Conclusion Page 9

2.1 Literature Review Page 10

2.2 Banking Sector contribution towards Recession Page 10

2.3 Government Intervention towards the Recession Page 10

2.4 Safeguarding the Construction Industry Page 11

2.4.1 People and Skills Page 11

2.4.2 Access to Finance Page 12

2.5 Quantity Surveyor Overview Page 12

2.6 Evolving Role of the Quantity Surveyor Page 12

2.7 Reasons for Change within the Construction Industry Page 14

2.8 New Method of Measurement Page 15

2.8.1 Impact on Organisations within the Construction Industry Page 16

2.8.2 NRM Approach Impact on the Construction Industry Page 16

2.8.3 NRM Approach Impact on the role of the Quantity Surveyor Page 16

2.9 Quantity Surveying Role Post Recession Page 16

2.9.1 Employment Opportunities Post Recession Page 18


3.1 Methodology Design Page 19

3.2 Scullion Case Study Page 19

3.2.1 Viable Systems Model (VSM) Page 19

3.2.2 Whole Life Costing Page 19

3.3 Kalmar Construction Page 20

3.4 Innovation and Evolution Page 21

3.4.1 E-tendering Innovation Page 21

3.4.2 Building Information Modelling Process (BIM) Innovation Page 21

3.4.3 Organisational Learning Page 21

3.4.4 Sustainability Page 22

3.5 Evolution of the Construction Industry Page 22

4.1 PESTEL Analysis Page 24

4.2 Political Factors Page 24

4.3 Economic Factors Page 25

4.4 Social Factors Page 25

4.5 Technological Factors Page 26

4.6 Environmental Factors Page 27

4.7 Legal Factors Page 27

5.1. Primary Research Page 29

5.1.1 Research Limitations Page 29

5.1.2 Interview Research Questions Page 29

5.2 Interview Analysis Page 30

5.2.1 Sustainability Page 30

5.2.2 Increased Responsibility within the Job Role Page 30

5.2.3 Advances in Technology Page 31

5.2.4 Due Diligence Page 31

5.2.5 Competition within the Construction Industry Page 31

6.1 Conclusion Page33

6.1.1 Changes in the Construction Industry Page 33

6.1.2 Evolution of the Role of the Quantity Surveyor Page 33

6.1.1 Employment Opportunities Post Recession Page 34

7.1 Recommendations Page 35

8.1 References Page 36

9.1 Working Plan Page 37


“The evolving role of the Quantity Surveyor in the post recession economy.”

Abstract

The aim of this report is to determine the impact that the economic recession has had upon the evolving role of the Quantity Surveyor in the post recession economy, and what measures have been implemented to strengthen the pivotal role the Quantity Surveyor delivers towards the overall success of projects within the construction industry.

To determine the impact that the economic recession has had upon the evolving role of the Quantity Surveyor the following task will be carried out;

Detailed Literature Review to gain a knowledge repository of the topic area, and gain an understanding of the role of the Quantity Surveyor for the research of the report to be formulated.

Secondary research in the form of a Pestel analysis to highlight the areas that are affecting the construction industry and how they have impacted the role of the Quantity Surveyor. The contributing factors that have shaped the evolving role of the Quantity Surveyor and its current position.

Case studies will be highlighted of innovative strategies that are being adopted by construction companies to help to towards growth within the industry. The role of Quantity Surveyor will be scrutinised to identify how this has evolved towards implementing innovative strategies.

Collating all data to understand if there are any trends that are emerging in relation to successfully answering the research questions that have been set.

Conclusion of the report detailing the findings of the research that has been performed and how they relate to the hypothesis of the report, also providing recommendations where applicable.


1.1 Introduction

The United Kingdom experienced in 2008 the deepest recession in terms of lost output, since quarterly data was first published in 1955. The impact of which affected all areas of the economy, however the manufacturing and construction areas were particularly affected. The recession also impacted many of the G7 countries; however the United Kingdom was in recession the longest and was the last to exit recession, this highlights the extent to which the UK was affected. The UK exited the recession in

In terms of the construction industry it is one of the largest sectors within the UK economy, it contributes to almost £90 billion to the economy in value added, with an estimated 10% of total UK employment. Therefore it plays a pivotal part in trying to revitalise the UK economy and provide a platform for economic growth to be achieved.

The topic area was chosen due to its prominence within the construction industry in the current climate, therefore it will provide an informative insight into future employment opportunities within the construction industry. The impact of the recession upon the construction industry was severe, therefore being able to highlight the severity of the recession will allow for it to be gauged the employment opportunities that exist within construction industry, and to highlight its ability for growth in the coming years

Therefore this report has been assembled to try and gauge the overall impact of the economic recession upon the construction industry with the primary focus on the role of the Quantity Surveyor. Understanding the current position of the construction industry will provide a platform for the evolving role of the Quantity Surveyor to be identified. The ultimate objective will be to assess the criterion that is now needed to become a successful candidate as a Quantity Surveyor, and the employment opportunities within the industry post recession.

In order to fully address the topic area, “The evolving role of Quantity Surveyor and the impact of the Economic Recession towards this,” a systematic process will be used to cover all areas and provide a comprehensive conclusion. The process will include carrying out a literature review, to provide a knowledge repository of the subject area; this knowledge will then be used to carry out the interview stage and obtain the necessary primary data to successfully conclude the report.


1.2 Rationale

The rationale for the chosen topic area was due to the prominence of the economic recession within the construction industry, also alongside industries affiliated with the construction industry, understanding the impact that the recession has had, will allow for it be identified the measures that have been taken to ensure the Quantity Surveyor has important role to play in strengthening the position of the construction industry post recession.

The report therefore seeks to understand the affects of the economic recession upon the construction industry, with the primary focus upon the role of the Quantity Surveyor. The purpose of this is to assess if quantity surveying is a viable option for employment within the United Kingdom, and if there are increased employment opportunities within the industry since the recent economic recession. The report will look at areas that were predominantly affected by the recession to gauge if the skills sets required to become a Quantity Surveyor have evolved, and what skills and competences are required for an individual to become a viable candidate in the role of a Quantity Surveyor.

Also understanding the current position of the construction industry will allow for it to be forecasted the demand for employment and how construction companies have successfully negated the recession to allow a strong foundation post recession. It will be poignant to highlight construction companies that have adopted innovative approaches to allow for growth to be stimulated, in an industry that has been severely affected by the recent financial crisis. This will allow for it to be identified what companies are looking for when recruiting individuals to work within their dynamic organisation, and the skills that are necessary to succeed.

Finally, it will important to understand whether the construction industry has learned from previous mistakes, and has implemented the appropriate safeguards to ensure the industry is protected against future financial failings. These safeguards relate to successfully planning for the future, integrating contingency plans, and encouraging sustainable growth. How these safeguards have been implemented, and how they enable for industry to flourish and to allow the construction industry to remain as one of the UK’s most valuable industries, contributing towards revitalising the UK economy. Identifying the safeguards that have been implemented will allow for increased knowledge of the role the Quantity Surveyor and the parameters that they work within, therefore this ties back into the rationale of the report to gain an understanding of the criteria required to become a successful candidate as a Quantity Surveyor, and maximise the opportunities of gaining future employment within the United Kingdom construction industry.

1.3 Hypothesis

How has the role of the Quantity Surveyor evolved post the recent economic recession in the United Kingdom?

Have there been any enforced changes within the Construction industry due to the recent economic recession, and have they had an impact upon the evolving role of the Quantity Surveyor?

Has the role of the Quantity Surveyor evolved as by-product of the economic recession, in terms of being more complex in nature and the competences that are now required to become a Quantity Surveyor?

The employment opportunities now within the construction industry post recession, in particular within the role of the Quantity Surveyor?

1.4 Aim of Dissertation

The overall aim of the dissertation is to identify the elvolving role of the Quantity Surveyor, post the economic recession, and its function to allow the construction industry to be revitalised. In order to identify the current role of the Quantity Surveyor, it will be important to understand if any enforced changes have been implemented within the construction industry, to allow safeguards to be implemented to combat against any future threats towards the sustainability of the industry. Also how the Quantity Surveyor’s position has changed to react to the industry’s position and the skills now required in becoming a successful candidate within the Quantity Surveying field. Also as a by-product it will be possible to gauge if there is renewed prosperity within the construction industry and if there is a demand for employment as a Quantity Surveyor.


In order to achieve the ultimate aim of the dissertation the SMART approach has been adopted in setting the parameters for the objectives of the report. SMART translates to specific, measureable, attainable, relevant, and time based. This approach will provide a framework to be created, allowing for the ultimate aim to be achieved in an efficient and concise manner.

1.4.1 Specific Objectives

Specific objectives are to be defined, these are detailed below;

Performing a PESTEL analysis on the construction industry in order to establish the key factors that have impacted the industry and as a result of the role of the Quantity Surveyor.

Performance of both primary and secondary research to highlight innovative strategies that have been adopted to stimulate growth in both the United Kingdom and internationally based construction companies. Pinpointing these companies to provide a blueprint of how growth can be stimulated and the Quantity Surveyors role within this process, and try and establish the internal controls they have implemented to combat any future threats.

Interviewing individual’s within the Quantity Surveying role as part of the primary research of the report to highlight their perspectives into the evolving role of the Quantity Surveyor, and how their core competences have evolved post the economic recession. (Hannagan, 2004)

1.4.2 Measureable Objectives

The measureable aspect of the objectives will be in the form of performing the primary research effectively, with the dissertation based around qualitative information; the primary research has taken place in the form of semi-structured interviews technique. Therefore to ensure the interviews were measureable the following steps have been taken. Firstly the interviews have been recorded concisely, achieving this by structuring the interviews into a format that allowed for fluent flow, allowing appropriate notes to be taken. Secondly the use a voice recording device to record the interviews, the use of which has allowed for all the relevant elements of the interview to identified, this will ensure any conclusions that are reached can be validated correctly. (Hannagan, 2004)

1.4.3 Attainable Objectives

When formulating the objectives it was considered if they were attainable, in terms of obtaining the relevant information from plausible sources, therefore I have been discussions with two construction companies within the North East to get an insight into their views of the impact of the recession, and their strategies and position post recession. This will also provide an opportunity to speak with the Quantity Surveyors of the two companies, to highlight if their job roles have changed, as a result of the economic recession towards the industry. Therefore with these arrangements it will be possible to successfully work towards completing the detailed objectives that are set, and will provide a platform to provide an informative insight into the industry, and most poignantly accurately assessing the evolving role of the Quantity Surveyor. (Hannagan, 2004)

1.4.4 Realistic Objectives

In terms of the objectives being realistic, the topic area is very prominent within the current climate; there is increased exposure of this within the media highlighting the growth of the economy post recession, this therefore allows for secondary information to be obtained without difficulty. Coupled with the primary research that has been arranged it will be possible for the objectives to be completed successfully and validated with reliable and empirical data.

1.4.5 Time Based Objectives

The time based aspect of the objectives is interlinked within the working plan, which provides a structured guide of how the deadlines of the research have been met. The deadlines that were set allowed sufficient time for the completion of the report in an efficient manner. (Hannagan, 2004)


1.5 Outline Methodology

The methodology of completing the report has been touched upon in establishing the relevant objectives, however it will be appropriate to provide a detailed structure of how the report has been constructed in order for all objectives to be completed successfully;

1.5.1 Primary Research

The primary research of the report will be in the form of a qualitative interview technique adopting a semi structured approach, with Quantity Surveying professionals, working within the Construction industry located in the North East of England being secured to participate. The interviews will be conducted with questions related to the impact of the recession and how this affected their current role, and the evolution of their skills and competences required to operate within the industry post recession. It has also been discussed the overall impact on the industry and its current position post recession. Also obtaining recommendations of how the industry can safeguard against future failings, to ensure employment with the industry is maintained. The aim of qualitative research is to provide detailed data, which is more subjective and provide validation to the conclusion of the report.

The qualitative approach was adopted for the primary research due to the topic area being very specific and specialised to a small demographic, therefore a quantitative approach would have been unrealistic with it being difficult to obtain a large amount of participants with the relevant knowledge of the topic area. This factor considered it was then deemed appropriate that a qualitative approach to be adopted, allowing for a high level of specialised data to be collected from the participants, as they have firsthand experience of the changing nature of the construction industry and how their roles and core competences have evolved.

The interview process has been established as being Semi-Structured with an agenda set prior to the interview, this allows the interviewees to be prepared within the necessary information required to effectively answer the formulated questions. The discussion will be primarily bases around the agenda; however the semi structured approach will allow for flexibility to allow the interviewees to raise points that are not directly related to the agenda, but provide insightful information into areas they feel will add validation to the overall report.

1.5.2 Case Studies

The second phase of the research of the report will be in the form of research into relevant case studies; this will try and reaffirm the findings from the primary. The case studies will provide detailed information regarding the objective of highlighting the changing nature of the construction industry and the innovative strategies and processes that have been adopted by construction companies, in order for stimulation of growth post recession, and how role the Quantity Surveyor has evolved within this model. Therefore this will allow for an insightful conclusion of the objective, and for it to be completed successfully with resourceful information.

The two main case studies that will be analysed within the report are Kalmar Construction, and Scullion produced case study. The Kalmar Construction case study will be concerned with identifying the necessary controls that have been implemented to combat against the affects of the recent economic recession, and how these changes have contributed in moulding the evolving role of the Quantity Surveyor. Secondly the case study produced by Scullion, which depicts the implementation of service development within an SME Quantity Surveying Practice, and examines the impact of developing as well as expanding new and innovative services within a SME. This case study will provide an understanding of the technologies that are now being adopted to spearhead the growth of the construction industry post recession, also gaining an understanding of the evolving attributes required by the modern day Quantity Surveyor to operate and co-ordinate these new technologies.

1.5.3 PESTEL Analysis

The final stage of the research will be through the performance of PESTEL analysis on the construction industry to understand the affects of the economic and how this has shaped the industry in terms of ensuring long term sustainable growth, how these factors can be utilised to create a competitive advantage, and allow for the industry to thrive post recession. The PESTEL analysis will be focused on the construction industry but will also deliver a perspective of the role of the Quantity Surveyor identifying how the role has been affected as a by-product of industry led factors and externalities.


The information obtained through the use of the Pestel analysis and the relevant case studies will add validation to the findings from the primary research to allow the objectives of the report to be concluded effectively recommendations.

1.5.4 Analysis of Data

After all data is collected from the interview process and the secondary research has been performed collected, they will be reviewed with all being data collated. This will allow for a strong knowledge repository to be obtained upon the subject, and at this stage it will then be possible conclude the report with strong evidence to provide empirical evidence and provide conviction to any recommendations.

1.5.5 Project Conclusion

The conclusion of the Project will be performed by providing detailed feedback upon the construction industry, highlighting how the role of the quantity has evolved post the economic recession. It will also be detailed any recommendations towards what safeguards and measures that can be implemented within the construction industry to protect against any future failings, and allow the construction industry to prosper to allow sustained growth, and employment opportunities.

This stage will allow for the detailed empirical data obtained in the research phase of the project to be applied, therefore this will allow for informative and plausible recommendations to be made, with both primary and secondary research being collated before making any conclusions.


2.1 Literature Review

In order to provide a knowledge base for the report it is appropriate for a literature review to be completed, this will allow for secondary research to be obtained through reviewing appropriate literature. This will provide an increased understanding of the topic area, which can then be used when conducting the interview process to gain the primary research for the project to be concluded;

2.2 Banking Sector contribution towards Recession

The United Kingdom experienced in 2008 the deepest recession in terms of lost output, since quarterly data was first published in 1955. The impact of which affected all areas of the economy, however the manufacturing and construction areas were particularly affected. The impact of the recession upon the construction was severe, therefore being able to highlight the severity of the recession will allow for it to be gauged if there are increased employment opportunities within the construction industry, and highlighting the industry’s ability for growth in the coming years. (www.parliament.co.uk)

To provide a basis of the report it will be important to understand the underlying factors that were attributed to the economic recession, In Vaitillingam’s report detailing his findings from economic and social research he highlights the extent to which the UK was affected by the economic recession. It is identified that the recession not only in Britain but also worldwide was attributed to the collapse of the financial sectors, most notably the banks, which invested their reserves in assets that turned out to be unsafe, illiquid, or even worthless. As this problem became more apparent, domestic and foreign holders of capital withdrew their deposits, confidence in the banking sector had been lost. This resulted in the banks reducing the amount of loans they distributed, therefore restricting companies and individuals financing projects to re-invest within the economy. (Vaitillingam, 2010)

In order to boost the money supply and try and to regenerate the economy, central banks responded to the financial crisis and the recession by cutting interest rates to unprecedentedly low levels. Between the dates October 2008 and March 2009 the bank of England reduced the base rate from five per cent to 0.5 per cent, which the lowest it had been since the central bank was founded in 1694. Also the banks introduced “Quantitative Easing”, which translates to assets being bought, mainly government bonds, and creating the money to do so. The overall aim of which is to increase the money supply within the economy and therefore encourage investment, which will allow for redistribution of wealth and generate increased employment opportunities within the UK.

Vaitillingam’s report highlights the banks culpability towards the economic recession in the UK, which was attributed to acquisition of unsafe assets. The main affect of which on the construction industry was that financing for projects became increasingly more difficult to secure, with the banks looking to minimise their risks due to their previous failings in terms of poor financial investments. (Vaitillingam, 2010)

2.3 Government Intervention towards the Recession

It has been considered the attributing factors that triggered the economic recession however the Rhodes report details the intervention that the government have made to combat against this The Rhodes report details the economic policy and statistics within the construction industry, he firstly highlights that the construction was particularly affected during the recession, with output in the sector falling faster than the whole economy in 2008. However 2009 saw the sector recover faster than the whole economy as a whole, this has subsequently followed by broadly flat growth and another contraction in 2012. The report identifies the policies that the government implemented in order to revitalise the sector. (Rhodes, 2012)

The labour government in power during the height of the recession in 2009 devised a policy to bring forward capital spending in order to support the construction industry. The November 2008 pre budget reported stated;

“as part of the Government’s fiscal stimulus package, bring forward £3 billion of capital spending from 2010-11 into 2009-10 and 2008-09 for housing, education, transport and other construction projects, supporting industries and jobs across the country.” (Rhodes, 2012)

The report then documents that the construction industry was disproportionately affected by the economic downturn and as a result existing spending programmes were brought forward as this could be done quickly, rather initiating new projects that would take time. This strategy was focused upon providing a temporary boost, however was acknowledged


that this boost would be offset in future years. Programmes that were introduced as a result were firstly the Kick-start programme, whereby £1 billion was targeted at stalled sites to support the development of high-quality mixed tenure developments. Secondly social housing new build programme provided £460 million funding for local authorities to deliver new social housing on land they already owned. (Rhodes, 2012)

Although this policy had the correct intentions to positively boost the construction industry, it was short sighted and did take into consideration controls that could have been implemented to ensure longevity within the Industry. This is indicated in the figures published in the Rhode’s report with a recovery in 2009, followed by broadly flat growth and contraction in 2012, this therefore leads to the current strategy adopted by the coalition government, to ensure the industry is safeguarded.

The policy that has been introduced in by the coalition government its “Plan for Growth”, which was published alongside the budget in March 2011. The document plan for growth highlights the importance of investment within the in infrastructure projects and house building for the UK economy. The government announced a number of actions to assist the construction industry in particular, alongside more general measures to reduce regulations and reform the planning system.

The main measures introduced by the government via the plan for growth were aimed to support house building. The First Buy programme was introduced to assist with the purchase of a new build properties, achieving this by providing equity loans, jointly funded with house-builders The Government have stated that this would help at least 10,000 first time buyers. The Government also announced that they would accelerate the release of public sector land, in order to encourage new homes being built. Reforms to stamp duty land tax rules applied to bulk purchases were announced to reduce a barrier to investment in residential property in order to promote the supply of private rented housing. (Rhodes, 2012)

These reforms implemented by the coalition government, highlighted within the report are informative and provide a clear and transparent direction of how the government plans to revitalise the construction industry. It appears there is a longer term plan in place to ensure that the construction industry is safeguarded and utilised to create a platform for the UK economy to sustain long term growth. The role of the Quantity Surveyor will play an integral part in contributing towards these programmes, and as by-product in activities within the construction industry, employment opportunities will become more accessible.

2.4 Safeguarding the Construction Industry

In the report compiled by Rees, An economic analysis of the sector, it reviews the latest evidence to highlight the key drivers and barriers to UK growth in the construction industry, to allow for sustained growth and safeguards to be implemented to ensure continued success. The report identifies that there are four factors that are going to affect the demand within the construction industry, these include: globalisation, demographic changes, and demand for green and sustainable construction.

The latter two markets, green and sustainable construction are highlighted as the ways in which the construction industry can exploit to allow for sustained growth to be achieved. To ensure these markets are exploited effectively the UK needs to ensure that the following factors are in place, People & Skills, Access to Finance, and Innovation Capabilities. If these areas are deployed effectively the UK construction industry will allow for a competitive advantage to be created and allow for growth to be stimulated. (Rees, 2013)

2.4.1 People and Skills

The Rees compiled report focuses upon how having a skilled and flexible workforce is imperative towards the construction industry’s ability to ensure long term success is achieved. Currently within the UK there is evidence that there are an increased percentage of individuals within the industry that have higher level qualifications. However there has been a fall in apprenticeship completions within the industry in the last three years. Therefore this suggests the industry has still a long way to go in order to produce the level of skilled individuals needed to sustain continued growth


2.4.2 Access to Finance

Access to finance was touched upon in Vaitillingam’ s report, however this is further discussed with the Rees compiled report, which establishes the main difficulties for a large proportion of companies within the construction industry. One of the main stumbling blocks for the construction industry as a whole in order to expand is the ability to access the right type of finance. This issue arises as many construction companies are considered to be high risks, and therefore finance packages are either refused or become too expensive. However there is aid available to construction companies, exposure of financial initiatives and existing government support programmes need be more actively promoted.

2.5 Quantity Surveyor Overview

After reviewing the impact of the economic recession upon the construction as a whole it is now important to focus primarily on the role of the Quantity Surveyor, and first of all assess its origins to then provide an overview of the evolving role of the Quantity Surveyor. To provide a grounding of the role of the Quantity Surveyor, the Royal Institute of Chartered Surveyors (Rics) published a report entitled “The future role of the Quantity Surveyor, which defined the work of the Quantity Surveyor;

“Ensuring that the resources of the construction industry are utililised correctly, to the best advantage of society by providing, inter alia, the financial management for projects and a cost consultancy services to the client and designer during the whole construction process.”

The report was sought to identify the distinctive competencies or skills of the Quantity Surveyor associated with the measurement and valuation in the wider aspects of the construction industry. This then provides the platform for the correct cost management of the project in the context of forecasting, analysing, planning, controlling, and accounting. The report highlights that this is no longer an accurate description of the Quantity Surveyor as it has rapidly evolved due market factors and changes in industry demands. (Ashworth, 2013)

This is further summarised in (Willis and Trench, 1999), “the prime role of the Quantity Surveyor pivots around the aspect of cost control of projects). From inception to completion necessitates a detailed knowledge of contractor’s prices, experience of the construction process and an ability to foresee the likely effect of economic trends.”

2.6 Evolving Role of the Quantity Surveyor

The Quantity Surveying role has evolved significantly over the decades, it has been identified that the original role of quantifying resources has expanded, and the scope of the works performed by the Quantity Surveyor have changed dramatically in recent times. The Quantity Surveyor is now expected to contribute throughout the project lifecycle, and to certain extent in a managerial capacity, overseeing the project to ensure the resources are allocated correctly, also performing a wider spectrum of duties, therefore in order to showcase the evolution of the role of the Quantity Surveyor the below table demonstrates the significant changes that the role of the Quantity Surveyor has undergone to become efficient within the current industry.

Table 1: Chronology of Developments in Building Economics (Ashworth, 2004)

Date Building Economics Other Developments PracticePre- 1960’s

Building Bulletin: Cost Study 1957Building price booksRICS Cost Research Panel

Post war building boom Approximate estimatingBill of Quantities Final accounts

1960’s Cost studies of elementsCost limits and allowancesValue for money in buildingBuilding Cost Information ServiceThe Wilderness Group

Cost benefit analysis Element billsOperational billsCut and shuffleCost planningStandard phraseology

1970’s Cost in useCost modellingContractors estimatingCost control

Measurement ConventionsData Co-ordinationBuilding maintenance informationBuild abilityValue- added tax/taxationBidding Strategies

Computer billsFormula methods of price adjustmentCash flow forecastingEngineering and construction


Computer applicationsUndergraduate surveying degrees

1980’s Lifecycle costingCost data explosionCost engineering techniquesAccuracy in forecastingValue engineering

Co-ordinated project informationProcurement systemsEuropean comparisonsConstruction industry analysisPost graduate educationSingle point responsibilityInformation technology

Project managementPost-contract cost controlContractual proceduresContractual claimsDesign and build

1990’s Value managementRisk AnalysisQuality systemsExpert systems

IT in ConstructionKnowledge Management

Fee competitionDiversificationBlurring of professional boundariesDevelopment appraisal

2000’s BenchmarkingAdded value in building and designWhole-life costing

Rethinking constructionLean constructionFacilities management

Within Fanous’s report he identifies 9 integral roles and responsibilities associated with a traditional Quantity Surveyor these are listed as;

1) Providing approximate cost estimates2) Advice on procurement3) Cost planning4) Measuring Items on site5) Preparing Bills of Quantities6) Preparing schedules of works7) Preparing Financial Statements8) Controlling Cost Throughout the Project Lifecycle9) Assessing and Negotiating Tenders

Fanous later identifies that the role of Quantity Surveyor has evolved rapidly over time, and it has been accelerated by the economic recession, with diversity in skills now essential to the modern day Quantity Surveyor. This is attributed to the financial crisis, with organisations assigning increased responsibility to the Quantity Surveyor in order to reduce costs in employing multiple individuals to carry out the necessary works. The greater the skills sets of the Quantity Surveyor will positively impact the organisation, which will in turn create increased employment opportunities. (Fanous, 2012 Page 5)

It is also identified by Fanous that the Quantity surveying profession has been able evolve and diversify into new areas of practicing, providing a wider range of services, with the modern Quantity Surveyor covering all aspects of project cost management, procurement and contract management. However despite the evolved roles that the Quantity Surveyor is now able to conduct, the traditional roles that have been highlighted are the foundation of the profession, and are essential to the success of the Quantity Surveyor. (Lee, Trench and Willis, 2011).

Fanous also details the most prominent changes which have occurred due to the evolution of the role of Quantity Surveyor and which have been accelerated due to the demands of the economic recession; (Fanous, 2012)

1. Investment Appraisal 2. Analysis of Financial Risks 3. Project Planning 4. Contractual Dispute Resolution 5. Facilities Management 6. Project Management 7. Insurance Valuations 8. Providing Insolvency Services 9. Measuring Environmental Impact and Costs 10. Managing Maintenance Programmes 11. Cash Flow Accounting Forecasts


These roles highlight the changing nature of the Quantity Surveyor and identify that there is diversifying skills that are now required to satisfy the requirements of the ever changing construction industry.

2.7 Reasons for Change within the Construction Industry

It has been discussed the Quantity Surveyors initial role and how it has evolved but it is also important to consider the reasons the role has changed, this is highlighted in Davis, Langdon, and Everest Consultancy Groups QS2000 report. The report focuses on four main areas that have impacted the role of the Quantity Surveyor which has necessitated a change to ensure role is fulfilling all requirements;

Changes in Markets- Evolving markets, reacting to changes internationally, and the impact of the European Union in terms of regulations.

Changes in the construction industry- The changing nature of the contracting process provided an emphasis upon management of construction, with other countries subcontracting to non-construction bases professionals to oversee the works.

Changes in clients needs- Emphasis towards delivering a successful package to meet the clients needs to add value, therefore flexibility is needed to meet this requirement.

Changes in profession- The report noted that employment patterns of growth in graduate members, the impact of fee competition, the way in which the Quantity Surveyor is appointed, has impacted the role of the Quantity Surveyor.

Although the report can now been considered obsolete to a certain extent, these factors can still be considered, and to ensure that the role of Quantity Surveyor continues to evolve in a proactive manner, these factors will need to be monitored to ensure that the client’s needs are met whilst new regulations are adhered too. (Ashworth, 2013)

These factors are also acknowledged in Thayapara’s paper study which identifies that the quantity surveying sector has transitioned significantly in the last decade, and although the quantity surveying role was considered to be quantifying construction works this has progressed into undertaking a variety of work ranging from performing investment appraisals to the construction management and risk assessments.

“In addition, changes in market, construction industry, client needs and profession posed threats and opportunities to the profession. Quantity Surveyors have, therefore, subsequently begun to explore new potential roles. Apart from the traditional roles, Quantity Surveyors are expected to perform evolving roles in the profession with increased importance and emphasis on meeting clients’ needs. The constant changes in the roles they perform in the industry pose a challenge for the quantity surveying professionals to be competitive in the construction labour market.” (Thayaparan, 2011, Page 2)

The literature that has been reviewed thus far indicates that there has been an industry driven evolution of the quantity surveying role, which has been triggered by market forces, changes in client’s needs, and changes in the construction industry. The role of the Quantity Surveyor has become allot more complex then quantifying the resources needed for construction projects to be completed, the Quantity Surveyor now plays an integral part in the dynamics of the construction process of a project.

It has been stated that the changes within the quantity surveying profession have evolved due to the increased options available for acquiring resources for building projects, the increased complexity in building projects and the large number of contractual and legal disputes which occur within the industry (Ashworth and Hogg, 2007)

These factors are considered by Cartlidge, analysing past events to understand the reasons change has occurred to allow for measures to be implemented to protect against future failings, it is reviewed the downturn in the period between 1990 and 1995. This recessionary period was catalyst was for many changes in the industry, and the attitudes that have been adopted by those who experienced the period within the industry. Cartlidge highlights that the lessons learned from the recession between 1990 and 1995 have been used towards weathering the most recent recession in 2009. This has resulted in the industry being able to implement provisions to stabilise the sector more easily than would have been the case. (Cartlidge, 2011)

Cartlidge highlights that the main reasons for change mirror Thayapara’s paper study, that client dissatisfaction, changes in technology within the construction industry and changes in regulations have been the catalyst for change. Therefore


controls need to be implemented for organisations to successfully react to these changes. Cartlidge however states that the boom and bust cycle will continue to occur, however in order for the construction to protect against future failings lessons need to be learned, therefore the industry can quickly adapt to changing conditions, ensuring that the industry can sustain growth. (Cartlidge, 2011)

There are five key drivers that Cartlidge identifies that need to be achieved to ensure that construction industry is maximising its potential, these are;

1) Committed Leadership2) Focus on customers3) Integration of process and team around the project4) Commitment to people5) A quality driven agenda

The four key projected processes that are needed for these drivers to be achieved are;

1) Partnering the supply chain- development of long term relationships based upon continuous improvement with a supply chain.

2) Components and part- a sustained programme of improvement for the production and the delivery of components.

3) Focus on the end product integration and focusing on the construction process on meeting the needs of the end user.

4) Construction process- the elimination of waste.

Cartlidge highlights that these factors were prominent within the recession in the 1990’s were factored into combating against the most economic recession with construction. Although simplistic to a certain extent these factors provide a platform for the construction industry to operate efficiently and ensure that foundations are in place to encourage growth. Therefore when experiencing change within the industry if these factors are instilled within an organisation they will be able to adapt successfully with strong leaderships and communication channels to co-ordinate the necessary changes. (Cartlidge, 2011)

Taking into account the changes that have been highlighted in order for the construction industry to sustain growth, in order to satisfy the criteria of reacting to changes within the industry, sustainability is a prominent factor. Cartlidge highlights the importance of the role of the Quantity Surveyor within this area;

“Given the importance of sustainability assessments and the state of the art in assessments protocol, we can discern three areas where the core skills of a Quantity Surveyor can maximise whole life sustainability of the construction sector; sustainability pioneering in design, achieving sustainability value in procurement, and valuing sustainability in properties.”(Cartlidge, 2011)

These skills are now essential to the modern day Quantity Surveyor, as their role plays a key function to ensuring projects are adhering to sustainability regulations, but also ensuring that wastage in materials is minimised to allow profit margins to be maximised, which in turn will contribute towards sustainability of growth.

2.8 New Method of Measurement

The method of measurement that has been used as a framework for Quantity Surveyors has evolved over the decades therefore it is important to review the current framework that is being adopted, and how this enables the Quantity Surveyor to perform their existing role efficiently

NRM Approach is a suite of documents issued by the RICS Quantity Surveying and Construction Professional Group, produced in order to provide a standard set of measurement tools that are understandable to all stakeholders involved within the construction project. The approach covers the full lifecycle of the project, and provides cost estimating, works procurement and post-construction procurement. (www.rics.org)


2.8.1 Impact on Organisations within the Construction Industry

The adoption of this approach by the organisations within the UK construction industry will be advantageous, as the approach is hoped to be accepted worldwide, therefore this will allow for the organisations to operate freely within the UK, but also consider projects abroad. With the approach being universal it will allow accessibility into different countries and allow opportunities for growth that are currently unavailable. The new approach is seen as being transparent and allows for an improved understanding by stakeholders, therefore projects to will be completed more efficiently.

It is highlighted that the main disadvantage of the approach is the expense of it being implemented, however based on the increased opportunities for growth and projects being completed more efficiently, the framework provides a platform for the industry as a whole to become more competitive. (Hannagan, 2004)

2.8.2 NRM Approach Impact on the Construction Industry

The framework is highlighted to have a positive impact on the construction industry; this is firstly due to the rationale of the approach to provide central governments, local governments and other public sector bodies with a value for money framework. This will allow for more accurate cost estimation, which will provide increased reassurances to the banks in funding projects. Secondly the approach aims to develop the standard methods of measurement and reporting for sustainability across the property, land and construction sectors.

In summary the approach provides a universally accepted and transparent framework, which promotes free trade between companies of all sizes, domestically and internationally. Banks are more encouraged to borrow to the construction industry with improved cost estimation; therefore increased revenue within the industry will stimulate growth, through the generation of increased construction projects, which in turn will create more jobs within the industry.

Finally there will be stricter controls in terms of sustainability through improved measurement and reporting, therefore companies will be more efficient in their use of materials. This will benefit construction companies financially as this will help reduce over estimations and materials being wasted. Also this will generate a positive image of the construction industry, actively looking at ways to be more sustainable, which will improve consumer confidence within the industry. (www.rics.org)

There are many advantages to the adoption of the NRM approach however the main downside is the difficulty for it to be applied universally as there are many varying approaches. However the main emphasis of the approach is to promote best practice, which will therefore only produce a positive impact on the construction industry as a whole.

2.8.3 NRM Approach Impact on the role of the Quantity Surveyor

It has been highlighted the introduction of the NRM framework will be advantageous to the construction, with this due to stricter controls, in terms of sustainability, being implemented through improved measurement and reporting tools. Therefore there will be an increased onus on the Quantity Surveyor in ensuring improved efficiency of projects, to work towards reducing wastage and adding value to the projects. (www.rics.org)

This aspect of the evolving role of the Quantity Surveyor has been previously summarised by Cartlidge identifying three key roles the Quantity Surveyor now plays, “sustainability pioneering in design, achieving sustainability value in procurement, and valuing sustainability in properties.”(Cartlidge, 2011)

The framework therefore provides a platform for the Quantity Surveyor to carry out their duties more efficiently, however with this there becomes more responsibility, with the role of the Quantity Surveyor continuing to be an integral part towards the project lifecycle.

2.9 Quantity Surveying Role Post Recession

It has been identified earlier within the literature review the causes for the economic recession, the safeguards that have been adopted and the evolution of the Quantity Surveyor over time, this has provided a knowledge repository to understand how the existing role the Quantity Surveyor has been shaped. Therefore Sonson’s (2013) report identifies the current position of the Quantity Surveyor post the economic recession, and the emerging roles that the Quantity Surveyor is now undertaking.


Sonson (2013) highlights the emerging roles of the Quantity Surveyor with the use of the Rics competencies required by Quantity Surveyors, the below table illustrates the competences required by a modern day Quantity Surveyor alongside the emerging competencies; Table 2.1: Competencies required by Quantity Surveyors for RICS APC

Competency AttributeMandatory Conduct rules, ethics and professional practice; Client care;

Communication and negotiation; Health and safety; Accounting principles and procedures; Business planning; Conflict avoidance, management and dispute resolution procedures; Data management; Sustainability; Team working.

Core Design economics and cost planning; Contract practice; Construction technology and environmental services; Procurement and tendering; Project financial control and reporting; Quantification and costing of construction works.

Optional BIM management; Capital allowances; Commercial management of construction; Conflict avoidance, management and dispute resolution procedures; Contract administration; Corporate recovery and insolvency; Due diligence; Insurance; Programming and planning; Project evaluation; Risk management; Sustainability

Source: RICS (2014)

RICS (2014) has considered the role of the QS in terms of competencies and described “competencies” as the capabilities, behaviours, knowledge, skills and attitudes required to perform a specific function with competence. It has grouped the competencies required of the Quantity Surveyor seeking assessment of professional competence (APC) into three distinct categories: mandatory or basic competencies, core competencies and optional competencies as shown in table 2.1 above. In this study, the role of Quantity Surveyor will be categorised as traditional and non-traditional (evolved and emerging) roles. The RICS core competencies encompass are traditional roles of Quantity Surveyor, while the optional competencies encompass mainly the evolved roles and some emerging roles.

Most of the evolved competencies shown in table 4.2 are emanated from the RICS optional competencies in table 2.1 above. According to Fanous (2012), the emerging roles in QS are areas which are being, or have recently been introduced into the QS profession and include Whole-life Costing (WLC) Assessments, Sustainability, and BIM management. Furthermore, strategic management and leadership competency is also currently emerging and enables the Quantity Surveyor to focus on the overall management and the strategic direction of their practice to achieve sustainable value creation and to assume strategic leadership roles in construction projects.

In order to meet the clients’ requirements in the 21st century, the Quantity Surveyor should possess a blend of three pillars of QS competencies: technical expertise, management and strategy competencies, in addition to the mandatory competencies. The Quantity Surveyors future role requires a deeper understanding of the strategic aspects of context relevant competencies. Examples include, inter alia, strategic cost management, strategic project management and strategic risk management. (Sonson, 2013)

Sonson (2013) therefore highlights that the role of the Quantity Surveyor is progressive to meet the demand of modern day business requirements, and the function of primarily being a cost accountant is now obsolete. The role is now more complex in its nature and requires a higher level of competences and understanding of the industry. Therefore this creates role which is essential to the construction lifecycle, and in turn ensures the Quantity Surveyor has a pivotal role post recession and beyond.


2.9.1 Employment Opportunities Post Recession

Employment in the property and construction industry is closely linked to the state of the economy and in times of recession jobs and wages decrease. However, according to the Construction Industry Training Board (CITB), looking ahead to 2015, almost 75% of employers in the sector intend to offer pay rises to their workers, reflecting rising activity levels within the UK construction industry. Contract and project managers, Quantity Surveyors and site managers are among those who are currently commanding the largest salary rises.

Similarly, the October 2014 Future Trends survey from the Royal Institute of British Architects (RIBA) shows overall confidence levels about future workload prospects are very positive, especially in medium to large architectural practices. In addition, government investment to address the lack of affordable housing should, in the long term, help support jobs in the construction industry.

Therefore this indicates the construction industry has managed to overcome the severity of the economic recession and now is in a positive position, which bodes well for future employment opportunities within the industry, with the quantity surveying role central to the industries revitalisation.


3.1 Methodology Design

It has been detailed earlier in the report of the project research will be procured, through the use of both primary and secondary data collection. The first area that will be focused upon is relevant case studies, to highlight the changing nature of the construction industry, and the innovative strategies and processes that have been adopted by construction companies, in order for stimulation of growth post recession, and how role the Quantity Surveyor has evolved within this model. The case studies will allow for an insight into answering the research questions that have been set and add validation to the findings from the primary which be highlighted in the report.

3.2 Scullion Case Study

The case study produced by Scullion, Implementing service development within an SME Quantity Surveying Practice examines the impact of developing as well as expanding new and innovative services within a SME - Quantity Surveying practice. The research undertaken investigates the growing trends and demands within the construction industry and main underpinning drivers for sustainable development.

3.2.1 Viable Systems Model (VSM)

The study focuses upon innovative strategies to improve efficiency within the organisation, this is summarised by the introduction of the Viable Systems Model (VSM);

The VSM helps to appreciate why an organisation may not be viable and how this problem can be rectified. It allows for control mechanisms to be introduced reducing the complexity and ensures that all functions are working effectively. This is referred to as the Management by Exception; the weak aspects are focused upon while strong points can work independently without management. This process promotes sustainability and the long term viability by being proactive. (Scullion, 2011)

3.2.2 Whole Life Costing

The study also focuses upon the introduction of whole life costing; WLCC is an investment appraisal tool which considers the value of a construction project over the selected assessment period. It facilitates the determination of the best value design solution; the provision of a functional and easily managed and flexible asset and long-term budgetary forecasts are calculated facilitating the generation of a sinking fund to cover whole-life cycle costing throughout the life of the facility (EFCA, 2003).

There are emerging drivers for the take up of whole life cycle costing. Initiatives within the industry, such as Latham Reports (1994) and the Egan Report (1998), have set the construction industry targets for cost savings which have to be set in the context of whole life cycle costing.

A whole life cycle costing approach encourages decision-making that takes account of durability, future running costs, and maintenance requirements. The WLC therefore is a tool for encouraging the design of assets that are more compatible with the concept of sustainable construction.

Drivers & Benefits of Whole Life Costing;

Aids with option appraisal of two or more building alternatives Aids with the building elemental decision making process The process can assist with Value Management In the public sector you need to demonstrate that WLC exercise has been completed Helps reduce costs in the long run Predicts a realistic budget for maintenance and replacement of elements Leads to a more sustainable building

Traditionally, cost in use has been calculated by using Life Cycle Costing models. These have been relatively static documents, used primarily to compare different options as a “snap shot” at the beginning of a project, and used as a decision making tool. The Cost in Use model forms part of a Whole Life Costing Manual, which is a dynamic document which can be used both at the outset of projects, and updated throughout the life time of the building. The system is used


to show the level of capital and revenue expenditure, in addition to being a cost management tool for the lifetime of the building.

The Whole Life Cost approach and system is also intended to provide an extra step in evaluating cost in use, by providing a “log-book” of activities, showing when maintenance should be carried out throughout the life time of the building. This type of proactive maintenance can greatly reduce the overall cost of building operations, and also provides the client with increased cost certainty.

The whole life costing model allows an elemental breakdown of the construction and operating costs to be produced. The system also includes a database of occupancy costs and life expectancy of various elements. This allows us to quickly produce a detailed breakdown of the whole life costs of a building. (Scullion, 2011)

This tool provides the Quantity Surveyor with improved data throughout the project lifecycle; therefore they have are in position to effectively oversee projects, and make value based decisions to ensure efficiency within the project is maximised and ensuring that project is within budget.

3.3 Kalmar Construction

The case study Kalmar Construction which is authored by Hayes Knight highlights the strategy that was adopted by the construction company Kalmar construction after affects of the 2008 downturn. The case study first of all highlight that the barometer for the health within the construction industry is the profits during boom times, but the industry is first to feel the effects when the market weakens, and it’s suffered significantly in the global financial crisis. Therefore it’s the organisations that can cope with demands of the weakened markets to sustain growth that will prosper; the case study identifies how Kalmar Construction stayed ahead of the recession. (Knight, 2010)

“Reacting quickly and cleverly when business began to drop off has helped Kalmar Construction stay ahead of the recession”.

Kalmar Construction has taken a multi-pronged approach, thinking outside of the box and being proactive in maximising their expertise and experience, to maintaining its profit margins during the recession, and it’s a strategy other businesses could learn from. Kalmar Construction first felt the first signs of a downturn in early 2008, therefore to combat this first of several strategies was initiated to help the company diversify, subtly shift its focus and offset lost opportunities from cancelled projects. An effective first step was to form strategic alliances with other contractors.

‘We aligned ourselves with bigger contractors or with those with different types of expertise so we could take on projects we normally wouldn’t,’ says Kay. ‘We have expertise in healthcare construction so we could lend that to others. On our own, we wouldn’t usually go for a $200 million job – this way we can.’ (Knight, 2010)

It is also highlighted that diversification was an important tool in Kalmar Construction’s arsenal. When Kalmar noticed the market easing, they made moves to acquire a concrete and formwork subcontractor with which they’d worked in the past. “We decided that if we could get Harbour Construction as part of our group, we could build these structures ourselves and cut out some of the margin. They have carpenters and expertise that we didn’t have, so that now allows us to build more efficiently and be more competitive.” (Knight, 2010)

Kalmar has identified that retaining its good staff as the company’s number one priority;

“If a client is happy at the end of the job, it means we’ve succeeded. To do that you have to perform, and that requires competent people. We have great staff and we want to look after them, especially during the recession so that when things pick up we still have that A team.” (Knight, 2010)

The study concludes by identifying that the tightening construction market means more jobs are being tendered so price is now increasingly important. While Kalmar Construction must remain competitive, Kay is adamant the company has to be able to make a profit. Rather than coming in with the lowest price, they prefer to differentiate themselves in terms of their service, quality and integrity. (Knight, 2010)

The case study highlights that in order to combat the affects of weakened markets, in this instance the recent economic recession it is necessary to be proactive and implement controls within the organisation to quickly to adapt to the changing environment. Diversification allows for the organisation to spread their risk in uncertain times, therefore this allows


increased opportunities to create a competitive advantage within the industry. The most poignant factor that was highlighted in the study is that the employee’s of Kalmar Construction, are identified as being integral to the successful operations of the organisation. Therefore this highlights that the component employees can be play a pivotal part in delivering success towards meeting the organisations objective.

In terms of this relating to the role of the Quantity Surveyor, the same principles can be applied to which Kalmar Construction have executed to sustain growth, being proactive and diversifying into different areas. The role of the Quantity Surveyor has evolved significantly over time, however it needs to be proactive and continue to diversify to the meet the demands of the industry, achieving this will ensure that the quantity surveying commodity will thrive, and be an integral part within the construction process.

Although this relates to the a period when the economy was in recession, the key fundamentals of Kalmar construction’s approach can be adopted at any stage, with it being an necessity for the industry to be proactive instead of reactive to ensure that technologies and resources are being utilised, to ensure the prosperity of the industry and encourage growth and job opportunities.

3.4 Innovation and EvolutionIt has been discussed ways in which the construction industry has tried to stimulate growth and the approaches that have been adopted, it is important to review other innovative methods within the industry. Innovation is the process that includes improvements in processes, products and or services. It involves incorporating new ideas which generates changes that help solve the needs of a company or industry, which will allow for a competitive advantage to be created. An organisation that has management culture that encourages innovation can provide significant rewards which include;

Improvement in organisation of activities Improvement in the company’s competitiveness in the medium and long term Better integration of the company’s management processes within the company’s overall strategy Efficient exploitation of the organisations knowledge Systematisation of the new process and product knowledge Client satisfaction

In order to generate an innovative change it is necessary to identify a need or opportunity for innovation, achieving this by analysing the industry and highlighting niche that can be exploited. This exploitation will work towards achieving the organisations objective and growth to be sustained. (www.designingbuildings.co.uk)3.4.1 E-tendering InnovationThe most revolutionary change within the industry was in relation to tendering, with the introduction of e-tendering, which has been used most notably on the multibillion pound development for the Olympic Games in London 2012. Innovation in tendering can offer many advantages as it provide substantial resource savings to a major part of the supply chain, with the key benefits being enhanced communication, time savings and reduced costs (Stephenson & Tinsley, 2008). IT has aided smaller companies in allowing them to compete with their larger counterparts in certain areas. Thorpe et.al (1998) argues that construction has yet to receive the full benefit of IT advancements compared to other industries.3.4.2 Building Information Modelling Process (BIM) InnovationBuilding Information Modelling Process has been a technological innovation within the construction industry; it can be described as a collaborative way of working, underpinned by the digital technologies which unlock efficient methods of designing, creating and maintaining assets. Building Information Modelling embeds key product and asset data and a 3 dimensional computer that can be used for effective management of information throughout the project lifecycle, from earliest concept through operation. Building Information modelling process will be discussed later within the report, highlighting the role it plays in improving efficiency. (HM Government, 2012, Page 14)

3.4.3 Organisational Learning

Due to the competitive culture in the construction industry, up until recently there has been a lack of "organisational learning" which promotes the sharing of knowledge and experiences between companies (Barlow & Jashapara, 1998). There has been very little research into organisational learning but Poyner and Powells (1995) report identifies its importance in providing competitive advantage which is particularly relevant in the current climate.


3.4.4 SustainabilityThe Gardiner and Theobald case study is focused upon sustainability as it plays an integral part in the current climate with the construction industry. The Quantity Surveyor therefore needs to be proactive in their role to ensure sustainability is maximised, Gardiner and Theobald have created what has been called the Ten Commandments, in order for sustainability in design and construction, for Quantity Surveyors to use as a framework; (Gardiner, A. Theobald)

Re-use existing buildings: Re-using existing buildings reduces costs and is quicker. Design For minimum waste: Make designs simple and with re-use in mind. Aim for lean construction: Avoid over specification and use pre-assembly and repetitive components wherever

possible. Minimise energy in construction: Use minimum quantities and avoid energy intensive materials like aluminium

and cement. Minimise energy in use: Make best use of the natural environment. For example, open and close windows,

rather than use air conditioning. Don’t pollute: Dispose of waste and discharges sensibly. Make efficient use of the existing transport

infrastructure. Preserve and enhance biodiversity: Protect the natural habitat. Conserve water resources: Recycle rain and waste water. Respect people: Build community relations and provide public information. Look after staff with regard to Health

and Safety. Set targets: Targets should be set for the reduction of energy used, embodied energy, transport and waste.

Setting targets is also a way of measuring achievements

Sustainability is a prominent factor in the construction with the government recent carbon targets, and sustainable construction solutions which have been set out in the Construction 2025 government policy; this will be touched upon later in the report. Therefore the role of Quantity Surveyor needs to adapt the changing nature of the industry, although not a direct consequence of the economic recession, sustainability is essential towards planning for the future, which will allow for affects of future recessions to be minimised, with controls in place to combat against future threats towards the industry.

3.5 Evolution of the Construction Industry

An article produced Kristen Ripmaster (2014) highlights the position of the construction post the recession and details the employment opportunities within the new era of construction;

The article highlights that there is a growing demand for work in the industry with the emphasis of a skilled, knowledgeable construction workforce. However due to industry changes triggered by the economic recession it has made it harder to recruit workers to fulfil the increased demand.

During the recession, many small companies went out of business or got purchased. Larger firms cut overhead costs. Across the board, projects were put on hold because financing did not come through. Many workers left the industry during this time, and the attrition rate is still climbing. Construction recruitment has also been made more challenging by innovations spurred by the recession that have contributed to an evolution of the industry overall. Here are a few of the changes that are altering the landscape of the construction labour market:

Many construction companies had to diversify in order to remain competitive. Some took on new types of projects, particularly in surging multifamily sector.

There is a new focus on energy efficiency and waste management in the industry because green construction has been driving growth.

Many constructions companies became lean during the recession and have stayed lean since the market started to rebound. Through restructuring and streamlining, many successful companies learned how to provide the same high level of customer service with the people they already have onboard. One outcome of this is that many employees are now wearing more than one hat.

A new interdisciplinary approach to construction is becoming widespread. More and more, teams of people from different disciplines are designing and building projects together as equal stakeholders. It is now common to find every phase of the construction process, including architecture, engineering, and construction, handled by a single company. Kristen Ripmaster (2014)


Therefore this indicates an upturn within the industry with employers looking for highly qualified employees that are able to perform multiple job roles, and therefore have a wider range of competences. The article also indicates that the industry will continue to grow and that employment opportunities within the sector will be more accessible.


4.1 PESTEL Analysis of the Construction Industry and the Evolving Role of the Quantity Surveyor

To meet the objective of establishing the key factors that have impacted the construction industry and as a result the evolving role of the Quantity Surveyor, PESTEL analysis will be performed;

Pestel analysis can be defined as being a framework or tool used to analyse and monitor the macro-environmental factors that have an impact on an industry or organisation. Pestel analysis is broken down into six categories, Political, Economical, Social, Technological, Legal, and Environmental; these factors all interlink and allow for a broad knowledge of the chosen industry to be obtained. In this instance it will be used highlight the key areas that are impacting the construction industry and how this will translate to the evolving role of the Quantity Surveyor. The ultimate aim is to identify the threats and opportunities of the evolving role of the Quantity Surveyor. (HM Government, 2014)

4.2 Political Factors

Political factors are concerned with how the government intervenes in the economy, which will include government policy, political stability or instability in overseas markets, foreign trade policy, tax policy, labour law, environmental law, trade restrictions. Therefore in order for organisations to sustain growth they need to be able to respond to the current and anticipated future legislation, adjusting their operations accordingly to be adherent whilst embracing these changes within their organisations.

The main political factors that are impacting the construction industry is the governments introduction of the 2025 Industrial Strategy for Construction, this is detailed below;

The Construction 2025 is a joint strategy which sets out how the industry and Government will work together to put Britain at the forefront of global construction over the coming years. The strategy has five key objectives where it believes the UK construction industry will be in 2025; this vision will provide the basis for the industry to exploit its strengths in the global market. (HM Government, 2014)

People - An industry that is known for its talented and diverse workforce

“Increase capability in the workforce, the industry faces a pressing need for a capable workforce that can deliver transformational change in the next decade. As the wider economy emerges from recession, construction firms must be able to recruit, retain and develop skilled, hard-working people in sufficient numbers to meet the increasing demand for construction.”(HM Government, 2014)

SMART - An industry that is efficient and technologically advanced;

“Bring forward more research and innovation, to meet the local and global opportunities presented by green construction, smart construction and digital design, UK construction must invest in people and technology.” (HM Government, 2014, Page 8)

Sustainable- An industry that leads the world in low-carbon and green construction exports;

“Build a low-carbon construction industry, developing greater clarity and certainty around sustainable and low-carbon construction opportunities which are emerging is essential to give businesses the confidence to invest in the potential of these new markets.” (HM Government, 2014)


Growth- An industry that drives growth across the entire economy

“Our commitments to enable us to realise the vision are to, Identify global trade opportunities for UK professional services, contracting and product manufacturing, develop partnerships and promote UK construction through the GREAT brand. Create conditions for construction supply chains to thrive by addressing access to finance and payment practices.” (HM Government, 2014)

Leadership- An industry with clear leadership from a Construction Leadership Council

“The Construction Leadership Council, the Construction Leadership Council will focus on the delivery of the joint industry and Government commitments. It will oversee the delivery of the Action Plan and the strategic priorities that will allow us to meet our vision for 2025.” (HM Government, 2014)

Alongside the Construction 2025 policy introduced by the government there is also reforms the planning system, which will ensure funding is available for key infrastructure projects. This will also support the housing market through key initiatives such as the Help-to-Buy Equity Loan Scheme and the Funding for Lending Scheme. These steps are a continuation from the coalition governments implementation of “Plan for Growth”, which was introduced in 2011 to combat the affects of the economic recession. This highlights that the government acknowledges that the construction industry plays an integral role in revitalising the UK economy, this factor bodes well for employment opportunities with the industry, in particular the Quantity Surveyor as they will be at the forefront of achieving the objectives that have been set, these factors impacting the Quantity Surveyor will be discussed further in the report.

4.3 Economic Factors

Economic factors have a significant impact on how organisation operate and the areas that impact their profit margins, the most synonymous economic factors that affect organisations are economic growth, interest rates, exchange rates, inflation, disposable income of consumers

The most prominent economic factors that are affecting the construction industry are in relation to the Governments management of demand, with the use of interest rate control, taxation policies and government expenditure, with these areas essential to providing a platform for the construction industry to stimulate growth.

The Government’s expenditure is focusing upon supporting infrastructure development and it has been detailed below the range of measures identified in the government’s Budget 2013, which includes increasing its capital spending plans by £3 billion per annum from 2015-16. This will mean £18 billion additional investment by 2020;

Supporting the £9.4 billion High Level output Specification (HLoS) – the largest programme of investment in the railways since Victorian times;

Providing Uk Guarantees for major infrastructure projects such as the northern Line extension to Battersea which will support the redevelopment of an area of central London;

Investment of £5.5 billion as part of a capital package unveiled at Autumn Statement 2012 to boost crucial investment in roads, schools and housing;

progressed work on the top 40 priority investments, including completing a programme of eight Highways Agency projects and the King’s Cross Station improvements later this year;

Supported the £14 billion Cross rail project, which has completed over 10 kilometres of tunnelling, as part of one of the most significant infrastructure projects ever undertaken in the UK; (HM Government, 2012, Page 30)

These factors once again highlight the government’s commitment to invest within the industry in order for growth in the construction industry to be stimulated, the government’s strategies, in terms of expenditure, will also be focused upon in the social factors section as the two areas interline. However to summarise the investment within the construction industry bodes well for the Quantity Surveyor with increased employment opportunities, as the Quantity Surveyor plays a pivotal part towards delivering the success of the planned projects.

4.4 Social Factors

Social or cultural factors are the areas that involve the shared belief and attitudes of the population. These factors include population growth, age distribution, health, and career orientation. These factors play a key significance towards the direct


of the construction, establishing social understanding will allow for the construction industry to invest within the correct projects that will fulfil the social demand with the United Kingdom.

The key factors that are affecting the construction industry or a shortage of affordable housing, also the United Kingdom has an ageing population therefore provisions need to be made for relevant housing for the older generation.

Affordable housing is one of the most prominent areas that need to be addressed in the UK, and the government have implemented a strategy to ensure that housing become more accessible. Firstly unlocking development, the government is investing a total of £1.8 billion, through the Growing Places Fund, the Local Infrastructure Fund and Get Britain Building, to provide infrastructure and development finance to stimulate economic development and get sites moving and homes built. This programme has seen investment of £76.7 million, to deliver 42,000 new homes. Surplus public land suitable for over 100,000 new homes has been identified and its release for development is being accelerated.

Also Investment in the rented sector is a key part of the government’s strategy, with it supporting the market for homes purpose built for private rent with the £1 billion builds to rent Fund which provides recoverable finance supporting the delivery of new private rented homes. The government have announced that, “In April 2013 a shortlist of 45 projects for the first round of the scheme was announced which are expected to deliver up to 10,000 new homes. The Build to rent fund is providing the platform for large-scale institutional investment in this sector, which will be further supported by a share of our Housing Guarantees schemes underwriting up to £10 billion of private debt, with a total investment, including from the private sector, of £19.5 billion.” (HM Government, 2012)

Government’s main Affordable Homes Programme remains on track to deliver 170,000 new affordable homes for rent and ownership by March 2015. up to a further 30,000 affordable homes will start on site by the same date, also supported by the Housing Guarantees scheme, as well as grant of up to £450 million. Supporting ownership; unlocking demand

At Budget 2013 a new Help-to-Buy: equity Loan scheme was launched – a £3.5 billion scheme to help homebuyers move up the housing ladder. The Home Builders Federation has reported over 4,000 reservations being placed by purchasers through the scheme. From January 2014 this will be complemented by the Help-to-Buy. This is coupled with the Mortgage Guarantee scheme which will offer up to £12 billion of Government-backed guarantees to lenders so that they can offer mortgages to those with smaller deposits. The Bank of England is crediting the Government’s £50 billion Funding for Lending Scheme for an increase in mortgage availability and for driving down the cost of loans for homeowners. (HM Government, 2012)

The government reforms in addressing social issues in the UK, in relation to affordable housing will act a massive boost towards the construction industry as the sector will be instrumental in executing objectives set by the government, an emphasis of which will be upon the Quantity Surveyor to ensure that that sustainability and efficiency is achieved in the construction process of affordable housing.

4.5 Technological Factors

Technological factors are associated with technological advances within the industry that enable processes to be become more efficient and minimise costs to improve profitability and sustain growth. The most recent advances within the construction industry that are relevant to the role of the Quantity Surveyor are the introduction of Business Information Modelling BIM. Therefore it will be examined the business benefits of BIM in allowing for greater collaborative working through design into construction.

Firstly it will be necessary to provide a brief understanding of the Building Information Modelling process, it can be described as a collaborative way of working, underpinned by the digital technologies which unlock efficient methods of designing, creating and maintaining assets. Building Information Modelling embeds key product and asset data and a 3 dimensional computer that can be used for effective management of information throughout the project lifecycle, from earliest concept through operation. (HM Government, 2012)

It is now important to understand how the role of the Quantity Surveyor could change or adapt in the future due to the introduction of BIM. Henry Riley, the project Quantity Surveyor who oversaw the development of BIM, took the approach to develop a number of themes associated with 5D BIM: (RICS, 2014)

Quantification from models, including automatic updated quantification once rules for sectors, clients and pricing methods have been established

The use of NRM standards in conjunction with BIM models (noting client-specific requirements where necessary)


Library management:– applying rate libraries to the quantified information; and– creating cost databases per sector or client

The ability to file share with design team and contractors alike

Improved benchmarking capability– moving away from detailed measurement and spending more time on improving value, and understanding where value can be improved and understanding this earlier in the project timeline, ensuring savings can be achieved through the design development. (RICS, 2014, Page 6)

Henry Riley highlights if these points can be attained, it enables a serious discussion about the Government Construction Strategy efficiency stretch of 20%. It is clear that 20% of waste can be saved during construction if the designs used do not contain inherent clashes that could be prevented. Also the opportunity exists for a more coordinated approach to the design work at pre-tender stage resulting in potential savings due to efficiencies in the design stage with more accurate designs. (RICS, 2014)

The future of quantity surveying in the short to medium term will continue providing detailed estimates and pricing documents based on design information. However there could be a shift away from detailed measurement by hand but this, at least in the short term, will be replaced by detailed quality assurance procedures to ensure the information is being interpreted correctly. The quality assurance role will become vital to the project team, as the Quantity Surveyor will be the first to use the information rather than calculate it will initially be time-consuming role. Finally, a bigger expectation for the Quantity Surveyor is to drive the value decisions within the design teams and client because, with better benchmarking and analysis, the Quantity Surveyor will have the data to lead these conversations. (RICS, 2014, Page 6)

Therefore the introduction of advanced technology is providing the tools necessary for the Quantity Surveyor to successfully complete their job role more efficiently, however in turn with technology processing elements of the Quantity Surveyors role, the Quantity Surveyor needs to adapt to new functions of their role. In this instance there will be increased autonomy to lead value decisions with the increased data at their disposal the technologies available.

4.6 Environmental Factors

Environmental factors are now considered to be a high priority for organisations as they have duty of care towards their stakeholders of improving energy efficiency and there carbon footprint. Environmental factors have become increasingly important due to the scarcity of raw materials, pollution targets, becoming an accepted ethical and sustainable organisation, and carbon footprint targets set by governments.

The most relevant environmental factors that are impacting construction companies are low, with best practice examples now being published by RICS to demonstrate how this can be achieved

Also the introduction of the NRM Suite of products can support the industry in meeting the Government’s target for a 33% reduction in the initial cost of construction and the whole life cost of built assets. The role of the Quantity Surveyor is pivotal in ensuring the NRM framework is adopted correctly, this will reduce wastage of resources, therefore this will improve sustainability, and also allow costs to be reduced whilst the overall time from inception to completion of UK infrastructure projects can be minimised. Therefore this indicates that the Quantity Surveyor plays an integral role in implementing and executing the appropriate measuring techniques to allow for correct level of materials to be purchase, which will minimise wastage and maximise profit margins, but also have the by-product of improving the image of the construction industry in term of becoming more socially conscious. (www.rics.org)

4.7 Legal Factors

Legal factors include - health and safety, equal opportunities, advertising standards, consumer rights and laws, product labelling and product safety. It is clear that companies need to know what is and what is not legal in order to trade successfully. If an organisation trades globally this becomes a very tricky area to get right as each country has its own set of rules and regulations.

Health and safety is a key area within the construction industry with there a commitment towards ensuring safe workplaces, which can be defined by providing the appropriate training and education, with all staff fully engaged and involved in improving safety in the workplace. The United Kingdom contractors group, UKCG is at the forefront of setting best practice in relation to health and safety and is continually looking to improve health and safety performance in the industry, it has the vision of enabling the collective members of the group, working with clients and supply chain, to attain a world class and industry lead position in health and safety and provide leadership within the construction industry. (www.ukcg.org.uk)


The objectives that UKCG have set in order to work towards their objective of attaining world class health and safety within the construction industry are set out below.

Analyse past and current performance to identify issues of concern and seek to identify future health and safety challenges for the industry;

Develop and drive a cultural change for the construction industry; Establish and promote what excellence looks like; In partnership with the HSE and other industry bodies set commitments for its members; Establish a clear and consistent approach for improving Health and Safety; Set the commitments for continual UKCG membership.

Alongside these objectives UKCG is committed towards establishing a health charter which demonstrates its commitment to a healthy workforce, it also has a health a safety plan that demonstrates best practice and brings together the charter and commitments. This allows for it to be identified the areas where members will be working collectively to improve the industry’s performance. Finally the UKCG has a training standard to ensure that employees have the necessary knowledge and skills to work, supervise and manage safely and effectively on sites. (www.ukcg.org.uk)

The health and safety best practice that UKCG demonstrates is essential towards the Quantity Surveyor carrying their role effectively, all the necessary tools are available in relation to the appropriate training and the environment is safe to allow freedom for tasks to be co-ordinated without any risk of injury in the workplace.


http://www.ukcg.org.uk/

5.1. Primary Research

The primary research has been conducted, this took the form of an semi-structured interview process, there was an agenda set prior to the interview, which detailed the topics that were to be discussed, this allowed for the two participants to be prepared with the necessary information required to effectively answer the formulated questions. The discussions were primarily based around the agenda; however the semi structured approach allowed for flexibility with the participants raising points that were not directly related to the agenda, but provided an insightful perspective into the industry and the evolving nature of their role, which will provide validation to the overall report.

Also within this initial stage of the primary research elements of the Delphi process were implemented. The Delphi process is a research method that involves putting forward an initial set of ideas, and distributing them to the relevant participants. This aspect of the Delphi process has been adopted with both participants forwarded the relevant research questions alongside putting forward my own evaluation and understanding of the evolving role of the Quantity Surveyor. This process will allow for the interview to flow concisely with the semi structured interview technique allowing for the subject areas to be defined, however encouraging proactive discussions based upon areas that are indirectly linked. This process of obtaining the relevant primary data will encourage freedom for participants to highlight their experiences and beliefs, whilst working within a flexible framework.

The participants that took part within the interview process were Michael Rivers and Thomas Little, both are fully qualified Quantity Surveyor working within the construction industry for an organisations based within the North east of England. Michael has a strong knowledge and understanding of the construction industry, and has operated as a Quantity Surveyor for the last 5 years. Michael has experienced the transition for recession to post recession, therefore was an ideal candidate to participate within interview process due to his tangible experiences within the industry and ability to identify the evolving role of the Quantity Surveyor. Thomas however has only recently graduated as a Quantity Surveyor and has limited experience within the construction industry. Therefore the two participants will provide different perspectives into the evolving role of the Quantity Surveyor; however it will be provided increased validation if trends emerge from the research findings. Although the participants have varied experience and knowledge, this will strengthen any conclusions that are made, due to underlying factors emerging from nature of the role of the Quantity Surveyor.

To be fully compliant with codes of best practice and ensuring that both interviewees were happy with their participation ethics form were completed prior to the interview process to ensure the validity of the research.

5.1.1 Research Limitations

The main limitation to the research study that has been adopted was securing the participants to conduct the interview stage of the report. It proved difficult to procure professionals with a background in the industry, and predominantly the role of the Quantity Surveyor, however through networking it was possible to secure two participants with relevant understanding of the topic area. Although the sample of participants is restricted to two interviewees, they provide diversity in terms of experience and perspectives; therefore provide a strong basis to conclude the report. In order to strengthen the validity of any findings, due to the small sample of participants, the secondary data performed will reaffirm and add justification to the conclusion and recommendations of the report.

5.1.2 Interview Research Questions

The below questions were formulated prior to the interview as part of the agenda, to provide the interviewee’s the opportunity to prepare appropriately and provide informative insight into the construction industry and the evolving role of the Quantity Surveyor;

How has your job role evolved post the economic recession? What were the main areas that were most affected within the construction industry due to the economic

recession? In what ways have the government intervened to try and aid the construction industry in terms of financial

support and incentives for increased activity within the industry? Has it been more difficult for companies within the construction industry to secure financing through banks and

investors due to the recession? Have there been any changes in regulations that have adversely affected the construction industry and how

these changes have been implemented within construction companies?


Have there been any technological advancements in the construction industry that will allow for the recent difficulties to be combated, and present a way for sustainable growth to be achieved.

How these areas impacted the role of the Quantity Surveyor, and has the role of the Quantity Surveyor evolved as a result in the improved technologies available?

What safeguards are being made to ensure that the construction industry is implementing controls that will ensure sustained growth and ensure that effects of future financial failings will be minimised?

Have you seen an increase in employment opportunities in recent times within the industry

5.2 Interview Analysis

Detailed analysis has been carried out to analyse the research that has been collated from the interviews that have been conducted with Michael Rivers and Thomas little, which were based on the research questions that have been previously highlighted. There were several key themes that emerged within the interview’s which interlinked with the secondary research that has been ascertained. The most prominent themes however were in relation to sustainability, increased responsibility, advances in technology, due diligence, and competition within the Industry. These were the five main trends that emerged from conducting the interview process, with these trends corresponding to the secondary research that has been performed. It will now been now appropriate to examine the trends further, detailing the insights obtained within the interview process;

5.2.1 Sustainability

The first theme that emerged within the interview process was that there is an increased focus upon sustainability. It was identified that that there is an increased emphasis upon this role, with the government introducing guidelines for increased sustainability to be achieved. Therefore the role of the Quantity Surveyor needs to adapt the demands of the industry. This theme corresponds with the research obtained from Cartlidge, highlighting that sustainability is an essential role within the modern day Quantity Surveyor

Michael highlights that since working within the industry there is now a bigger demand for sustainability in the projects that he has co-ordinated, this has been briefed as being one of the most important factors within his job role. This has become more prominent with the introduction of legislation and the construction 2025 government policy, to reduce carbon emissions and the efficiency of new build homes.

Thomas views are echoed, although he has been in the industry for a relatively short period in comparison, his approach is geared towards maximising sustainability in the projects that he completes. He has identified sustainability as a key area within the modern day construction industry and highlights that this stems from the demands of the clients, to provide sustainable construction.

The aspect of sustainability has been a feature of the Quantity Surveyor for some time; however the views of both participants indicate that this area is more prominent than ever. The sustainability of projects can now be achieved to higher standards with the introduction of new technologies, this will ensure that wastage in materials is minimised to allow profit margins to be maximised, which in turn will contribute towards sustainability of growth within the industry.

5.2.2 Increased Responsibility within the Job Role

Increased responsibility within the job role was one of the key trends that were highlighted within the interview, with it being identified that this has been heightened by the economic recession; this has been triggered by organisations becoming more conscious of their operations and expenditure. It has been identified that this resulted in the Quantity Surveyor performing increased tasks and taking on more responsibilities to cope with the demand of the industry.

Michael has experienced this first hand, and has highlighted that his workload has increased due to the impact of the economic recession, he indicated that after the recession had passed and his company had procured new projects there was insufficient resources in terms of staff to perform the necessary roles within the projects. Therefore he had to take on increased responsibilities to ensure that the projects were completed within the specified time frames.

Thomas’s lack of experience in the industry makes it difficult to highlight if there has been a change in dynamics of the quantity surveying role in terms of increased workload. He however highlighted that from his networking with senior quantity surveyors they have reiterated the sentiments of Michael, highlighting the workload has increased with it being


required for diversification into different areas to ensure projects are completed effectively. The key areas that have been identified as being essential to the evolving nature of the Quantity Surveyor are flexibility and diversification; these skills ensure that change can be adapted to quickly and therefore perform the necessary duties effectively.

5.2.3 Advances in Technology

The advances in technology were identified as pivotal part in the progression of the role of the Quantity Surveyor; it was highlighted that in particular Business Information Modelling (BIM) will play a key part in the progression of the role with it being highlighted that there is increased autonomy as a result of this. The advances in technology were acknowledged as a positive step for the development of the role, allowing for more time to be allocated towards improving value, oversee the project ensuring that savings can be maximised throughout the project lifecycle. It has been highlighted that the technology aspect of the industry is forcing people to change, and if embraced this improve efficiency within the industry.

Both participants have identified that BIM is in the process of being introduced within their respective companies and that they embrace the introduction of the advancement in technologies, they acknowledged that the introduction of BIM in particular would allow for efficiency to be maximised, which improve value and allow for a tighter control of costs to be managed throughout the project lifecycle. Thomas indicated that it was inevitable for BIM to be introduced within his company in the near future, and he is relishing the opportunity to be trained in this area, to add another competence to his skill set.

Michael on the other hand is slightly reluctant to be re-trained, he appreciates that this will benefit the company in the longer term, however in the short term the training required will take up valuable time for existing projects to be completed. Also once he is trained he will be expected to perform increased responsibilities and it will be inevitable for his workload to increase.

5.2.4 Due Diligence

Both participants highlighted that due diligence in the current climate is an essential role of the Quantity Surveyor. Michael has highlighted that this has become an essential role, which has become more prominent post economic recession due to the increased financial restraints and parameters that organisations within the construction industry operate within, this also interlinks with maximising efficiency of projects.

Thomas also shares the same views and indicates that due diligence acts as a foundation of his daily operations, he has indicated that it is important to build strong relationships and client bases to operate with reputable companies to ensure longevity and trust.

5.2.5 Competition within the Construction Industry

The final theme that was highlighted was the competition within the construction industry which interlinks with the first trend identified that the Quantity Surveyor is performing increased roles. The cause of the increased competition is highlighted as a result of the economic recession, this has led to a reduction of financial resources available in the industry; therefore there is increased amount of companies tendering for projects. This has resulted in companies significantly reducing their costs in order to gain employment; this factor has the by-product of expenditure being reduced, which forces the Quantity Surveyor to perform a diverse range of roles to ensure the project is completed successfully and within budget.

However the primary research obtained has highlighted that the industry has now got to a position whereby their the participants respective companies are now recruiting heavily to cope with client demands. They have also identified that their workloads were becoming difficult to manage due to the pressures imposes by the economic recession. However there has now been a transition in the industry which has led to a necessity of new resources in the form of recruiting new employment to take place. Therefore this indicates an upturn within the industry and which will allow for Quantity Surveying jobs to be become more accessible post recession.

It has been highlighted that there were five prominent themes to emerge from the interview process, Sustainability, increased responsibility, advances in technology, and competition within the industry, and due diligence. Therefore to summarise, the role of the Quantity Surveying has evolved significantly to keep up with the demands of the construction


industry. This has caused for more diverse range of roles and responsibilities to be performed, with an increased emphasis on sustainability to ensure that the project lifecycle is minimising wastage and costs.

In order to become a successful candidate within the industry, flexibility and diversification is required to ensure that the demands of the industry are met, with particular reference to the technological advances. The ability to be proactive and keep up date with changes within the industry will ensure that change can be embraced to improve efficiency and work towards achieving the organisations objectives.


6.1 Conclusion

How has the role of the Quantity Surveyor evolved post the recent economic recession in the United Kingdom?

Have there been any enforced changes within the Construction industry due to the recent economic recession, and have they had an impact upon the evolving role of the Quantity Surveyor?

Has the role of the Quantity Surveyor evolved as by-product of the economic recession, in terms of being more complex in nature and the competences that are now required to become a Quantity Surveyor?

The employment opportunities within the construction industry post recession, in particular within the role of the Quantity Surveyor?

In order to successfully answer the research questions that have been set extensive research have been performed, which has now been collated an analysed, therefore it is possible to conclude the report and successfully satisfy the objectives that have been set;

6.1.1 Changes in the Construction Industry

The changes that have been enforced due to the economic recession are in terms of planning for the future and ensuring the industry implements a sustainable strategy towards longevity and reinvigorating the industry. There is a continuing need to ensure investment in innovation and technology, alongside increased collaboration between businesses and research institutions to enable the UK to realise this potential. There is also scope for further progression, particularly with regard to addressing evident skills shortages, the limited awareness of financing options and of existing government support programmes. (Rees, 2013)

The Rees compiled report clearly defines the areas in which the UK need to focus upon in order to take advantage of the new opportunities presented towards sustainable construction. The report has an accompanying Strategy for Construction which sets out in detail the policies and actions that the Government and industry are jointly putting in place to address these issues. This report provides confidence that the construction industry is heading the right direct, with specific objectives being set and how these objectives are to be executed, to ensure the industry can achieved sustained growth and aid the revitalisation of the UK economy.

The introduction of the Construction 2025 government policy is a continuation of the government commitment to provide a platform for the construction to sustain growth, there are clear and transparent objectives set in order for thr industry to work towards, and there appears to dedication towards making the UK Construction Industry a leading example globally. The Introduction of BIM is highlighted as being the key to unlocking efficient methods of designing, creating and maintaining assets, with the Quantity Surveyor playing an integral role in its conception, and will contribute towards ensuring its successful implementation.

The primary research conducted also adds weight to the findings in the secondary research with both participants highlighting that advances of technology were being introduced, most notably BIM, which has been discussed. It also emerged from the primary research that the aspect of sustainability was becoming more prominent, with this interlinking with the Construction 2025 government policy of reducing carbon emissions. This factor has stemmed from client demands highlighting that companies within the industry are becoming more aware their social responsibility, and financial constraints.

6.1.2 Evolution of the Role of the Quantity Surveyor

Having detailed the overall impact upon the construction industry it is now appropriate to detail the impact upon the role of Quantity Surveyor. The research that has been performed has identified five key themes that were prominent in the research process which were, sustainability, increased responsibility, advances in technology, competition within the industry, and due diligence.

The primary research that was conducted with Michael and Thomas indicated that they believe that the industry is in a transitional period and as a by-product their jobs roles have assumed increased responsibilities to cope with the demands of clients needs. Therefore they feel diversification into different areas is essential to performing their role effectively, which will allow for tighter level of control of costs throughout the project lifecycle. The participants acknowledged advances in new technology would allow their roles to become more efficient, which would benefit the higher demands for sustainability and efficiency in resources they have been geared towards. It was clear with the primary research stage that


ensuring sustainability and efficiency are at the forefront of the primary role of the Quantity Surveyor, which leads on from the impact of the recession with clients becoming more socially aware and stringent in terms of their financials.

This has been summarised in the earlier secondary research that has been performed, according to Fanous (2012), the emerging roles in QS are areas which are being, or have recently been introduced into the QS profession and include Whole-life Costing (WLC) Assessments, Sustainability, and BIM management, which will improve efficiency and sustainability.

Therefore in order to be a suitable candidate as a Quantity Surveyor it is essential to be proactive and embrace change, through flexibility and diversification. The role of the Quantity surveyor is becoming more complex and the competences required are evolving, which has been accelerated due to the recent economic recession with companies reassessing their business strategies and objectives as a by-product of the financial crisis.

6.1.3 Employment Opportunities Post Recession

The economic recession had a negative impact on the employment opportunities within the construction industry; there was increased competition in the industry, which led to many instances of the organisations subcontracting. This caused Quantity Surveyors to have reduction in remuneration whilst working hours increased to cope with the demands of the increased responsibilities.

There is now however, increased prosperity within the construction industry with the role of the Quantity Surveyor playing a pivotal part in implementing the plans laid out in the government’s 2025 strategy. This therefore bodes well for the employment within the construction industry, in particular the role of the Quantity Surveyor. Having the ability to be proactive, in terms of diversification and flexibility will ensure sustained employment within the role of the Quantity Surveyor. This statement of increased prosperity within the industry is validated with the primary research that has been conducted with both participants highlighting that their respective companies are recruiting heavily to cope with client demands. They have also identified that their workloads were becoming difficult to manage, and therefore the necessity of new resources in the form of recruiting new employment was inevitable.

The sentiments of the two participants were also highlighted within the secondary research with Kristen Ripmaster (2014), indicating an upturn within the industry with employers looking for highly qualified employees. Therefore this highlights that there is a renewed optimism within the industry and that employment, in particular the role of the Quantity Surveyor is now accessible.

Therefore to conclude the report the role of the Quantity Surveyor will continue to evolve and react to market forces and client demands, this is nothing new, however this has been heightened post recession with organisations becoming more stringent with their finances, which has caused the Quantity Surveyors to assume increased responsibilities and roles, whilst having a focus upon maximising sustainability and efficiency to ensure that costs associated with the project lifecycle are minimised. The industry is also looking to utilise advances in technology, maximising the resources available, therefore it is necessary for the Quantity Surveyor to embrace these changes and become skilled in using technology such as BIM to improve their performance and contribution to the overall project.


7.1 Recommendations

It has been highlighted that the role of the Quantity Surveyor will continue to evolve to meet client demands and industry led changes. The ability to be proactive and embrace change will ensure the future success of the role; however it is important to highlight the areas that should be utilised effectively within the coming years to ensure the Quantity Surveying profession prospers.

The three key areas that should be focused upon and integrated as the foundations of progressively evolving the role of the Quantity Surveyor are BIM, E-Business, and Due Diligence. These three areas take on board the key elements highlighted within the report of embracing new technologies in the form of BIM and E-Business, but also going back to basics to a certain extent of building strong relationships with clients and contractors, to ensure that business operations are being completed diligently with trusted and reputable companies

Utilising these areas is essential to ensuring the prosperity of the Quantity Surveyor role and ensures that it evolves proactively to take advantage of the available technologies and resources, to ultimately safeguard the profession and ensure longevity in terms of employment opportunities within the construction industry.


8.1 References

Biggam, J. (2011) Succeeding with your Master’s Dissertation: A Step-by-Step Handbook, Open University Press Fellows, R. F. and Liu, A. (2008) Research Methods for Construction, 3rd Edition, Wiley-Blackwell Mason, J. (2002) Qualitative Researching, 2nd Edition, Sage Publications Ltd, London Ashworth, A. Hogg, K. Willis, C J. (2013) Willis’s Practice and Procedure for the Quantity Surveyor Cartlidge, D. (2011) New Aspects of Quantity Surveying Practice Thayaparan, M. Siriwardena, M. Amaratunga, D. Malalgoda, C, and Keraminiyage, K. (2011) School of the Built

Environment, the University of Salford, Uk, Lifelong Learning and the Changing role of the Quantity Surveyor Sonson, S, J (2013) Quantity Surveying Role and Environmental Influences in Saint Lucia Wengarf, T. (2001) Qualitative Research Interviewing, London, Sage Publications EFCA (2003) Project Financing-Sustainable Solutions. The European Federation of Engineering Consultancy Associations, Brussels Latham, M. (1994) Constructing the Team, HMSO, London Lee, S., Trench, W., and Willis, A. (2011) Willis’s Elements of Quantity Surveying 11th edn. West Sussex: Wiley-

Blackwell Knight, H. (2010) Case study: Kalmar Construction building an advantage Scullion, J. Ross, A. Crook, O. (2011) Implementing Service Development within an SME- Quantity Surveying Practice Latham, M. Sir (1994) ‘Constructing the Team’. Joint Review of Procurement and Contractual Arrangements in the United Kingdom Construction Industry Hannagan T (2004) Management Concepts and Practices Tindsley, G. & Stephenson, P. (2008). E-Tendering Process within Construction: A UK Perspective. Tsinghua Science

and Technology Rhodes, C. (2012) Economic Policy and statistics QSBC (2009) A Brief History of Quantity Surveyors of BC Vaitillingam,R (2010) Recession Britain, Findings from economic and social research Rees, A, (2013) UK Construction, An economic analysis on the sector HM Government, (2014) Industrial Strategy: government and industry in partnership Construction 2025, HM Government, (2012) Industrial Strategy: government and industry in partnership BREEAM (2012) The world’s leading design and assessment method for sustainable buildings [online] available from <www.breeam.org> [Accessed 28 March 2012] Hillebrandt, Patricia M; Cannon, Jacqueline; Lansley, Peter R (1995) The company in and out of recession Fanous, A. (2012) Surveying the new field: Changes in Quantity Surveying www.parliament.co.uk Ripmaster, K (2014) Life after the recession http://constructionjobs.com/jobseeker/IndustryArticles/article/28/

Life_after_the_recession/ Gardiner, A. Theobald case study, sustainable development in the construction industry

http://businesscasestudies.co.uk/gardiner-theobald/sustainable-development-in-the-construction-industry/the-role-of-the-quantity-surveyor-in-sustainable-construction.html#axzz3ELABtH3k

RICS, (2014) RICS Information paper Uk, Overview of a 5D BIM Project, 1st Edition http://www.designingbuildings.co.uk/ www.ukcg.org.uk www.bis.gov.co.uk (www.rics.org) http://www.professionalacademy.com/news/marketing-theories-pestel-analysis http://www.prospects.ac.uk/property_construction_sector_overview.htm


http://www.professionalacademy.com/news/marketing-theories-pestel-analysis

http://www.bis.gov.co.uk/



http://www.parliament.co.uk/

9.1 Working Plan

The working plan that has been adopted throughout the lifecycle of the report, this has provided a strong framework for the report to be completed successfully.

October 2013Continue literature review, following the initial review that has been included in the proposal.

Re-visit research methodology, after receiving feedback from supervisor, highlighting the best format in order to conduct the interview.

November 2013 Continuation of literature review.

Confirm with mentor the best form of primary research in order to collate PESTEL analysis on the construction industry.

December 2013Continuation of literature review.

Carrying out PESTEL analysis on the construction, highlighting the most affected areas due to the recession and also highlighting areas in which could be exploited to allow for sustainable growth to be achieved.

January 2014Arranging the Interviews with my chosen company, to allow for the primary data to be collected.

Structure of the interview to be produced, allowing for the most prominent questions to be asked within the interview process.

February 2014Completion of literature review, using, writing up all relevant information collected.

This will then be submitted to my supervisor to provide constructive feedback to ensure the project is heading the right direction.

March 2014Conducting Interviews that were organised in January. The interview will be recorded via a voice recording device. Also short hand notes will be taken, to allow for interview to be completed efficiently.

April 2014From the data collected in the interview stage of the process, all information will be collated and presented in a written format, providing an overview of the key points of the interview.

May 2014After the primary research is collated from the interview process it will be analysed, and applied to the questions that were set out in the proposal.

June 2014Write up the findings of both the primary and secondary research in a report format. Interlinking the findings with what has been set out in the proposal stage of the dissertation.

July 2014After all findings have been detailed it will be appropriate to provide a conclusion based on all the data acquired. Stating any assumptions that I have made, and also highlighting recommendations that I feel are valid.

August 2014Penultimate stage of the dissertation process will be bringing the project together, completing introductory chapters, references, and index.

September 2014Final discussions with my supervisor, to allow for any last minute changes. Final proof read of the dissertation before the submission of the project.

The working plan relates to the initial submission in September, however with the report being referred, this has been extended, throughout the months of November 2014 to April 2015, I have managed to take on board the feedback from the assessment of the original report and have amended where applicable and have added more depth to meet the requirements which were highlighted.


Mentoring Communication

Hi Lei,

Just received feedback for my dissertation proposal, with the main feedback relating to the proposal title being too long, and also wasn't specific enough in highlighting the areas to obtain primary research.

Just really need a bit guidance regarding these areas and if you have any general points that will aid towards completing the rest of the dissertation successfully?

Cheers

Scott

Hi Scott, Normally, the dissertation or WBP title should be short and concise, use some key words only, rather than a long question? For example you can write something as ‘the changing role of Quantity Surveyors after the recession’ or ‘the impact of recession to quantity surveying services. The main problem of your proposal is that it is too wide, you need focus on something, e.g. only investigate the impact of recession to QS rather than analyse the whole construction industry. Moreover, you can even down to only PQS or CQS, which one have affected more during the recession? If you want to talk the whole construction sector, then there are too many things to discuss, e.g. construction outputs, materials price, employment rate, government policies, UK financial system etc… which is too hard and not easy to cover all aspects. I suggested you focus on investigating the changes of QS practices and Quantity Surveyors’ attitudes (e.g. are they more confident about the industry, economy and their business, now or do they believe that the recession has already gone or not?) Kind Regards, Lei

Hi Lei,

I've received my grades for my dissertation which has been referred, been advised to contact you to discuss the referral work required and the deadline for this to be submitted. Therefore if you're able to advise of the next steps?

Thanks

Scott

Dear Scott,

Please find the attached marking forma for your dissertation. The main problem of your dissertation is that the research problem hasn’t been properly defined. As economic recession has passed in the UK, we are now in the post-recession stage. I suggested changing the topic changed to 'The evolving role of QS in the post recession economy'. For focusing on what should do for QS practice in the new era, for example any new skills/competences need to be developed, such as BIM, e-Business, due diligence, etc. Another weak point of your study is that there is lack of primary data and analysis. You need improve your methodology design and make sure that you choose one appropriate method for data collection and analysis.

Please make sure you address all comments written in both feedback forms and we could discuss further what you should do to improve your dissertation.

Best,

Lei


Dissertation

Documents

evolution page

sustainability page

literaturereview page

finance page

skills page

references page

hypothesis page

introduction page