TRADITIONAL & MODERNQUANTITY SURVEYING PRACTICE Lecture by Upul S. Ranaweera PG Cert. in Arb., BSc. (Hons) QS, Dip. in Eng., IEng., MIIES, MAIQS, MRICS Chartered Quantity Surveyor Contract Manager RICS - Assessor/Counsellor AIQS - Assessor/Counsellor 4 April 2015 Origin of Quantity Surveying Origin of Quantity Surveying dated back to ancient Egyptian civilization who used to dedicate personnel to carry out estimates and costing for their magnificent structures and buildings (such as pyramids). Quantity Surveying developed in to a occupation during 17th century for the restoration of London after the Great Fire. In 1836 the Quantity Surveying profession received a recognition when the new Houses of Parliament of Great Britain, designed by Sir Charles Barry, became the first major public contract to be fully measured and tendered using detailed bill of quantities for financial accountability TRADITIONAL QUANTITY SURVEYING PRACTICE In olden days the duties of a Quantity Surveyor were limited to:a) measuring quantities or surveying quantities for proposed construction works to arrive the value of the proposed works and b) measuring quantities or surveying quantities to arrive the value of the completed works. TRADITIONAL QUANTITY SURVEYING PRACTICE This scope has been extensively evolved and currently the Quantity Surveyor has to undertake not only the above conventional Quantity Surveying works but to perform overall cost management role in the Construction Industry. Now the term Quantity Survey is evolving as Construction Cost Directors/Construction Cost Managers in the Construction Industry. The history of the Quantity surveyor from the middle of the seventeenth century. TRADITIONAL QUANTITY SURVEYING PRACTICE This traditional role, that is still practiced by some and especially by small to medium sized projects can be briefly described a measure and value system. Approximate estimates of the initial cost of building are prepared using a single price method of estimating, and where this cost was acceptable to the client then the design was developed by the architect. 1for Traditional Quantity Surveying activities) .TRADITIONAL QUANTITY SURVEYING PRACTICE Subsequently the Quantity surveyor would produce bills of quantities for tendering purposes. the work would be measured for progress payments and a final account prepared on the basis of the tender documentation (see Fig. 1. 5.Discharge and Final Accounts 10. Tendering and Estimating 7. Financial statements . 6. Cost planning/cost controlling during planning 3 . Interim valuations and payments 9. Preliminary cost advice (approximate estimates) 2. Measurement and quantification leading to preparation of Bill of Quantities.Traditional Quantity Surveying activities 1.TRADITIONAL QUANTITY SURVEYING PRACTICE . Cost control during construction 8. Procurement /Standard Form advice 4.Figure 1 . Preparation/compilation of Tender/Contract documents. Settlements of contractual claims and dispute resolution . to get a decision. whether to go ahead or to amend the scope or to post phone or cancel the project. Preliminary cost advise(approximate estimates). . the prospective Employer required know to what will be the budget/approximate estimate of the prospective project and other cost impacts.Life Cycle Cost. Cost Benefit analysis. Cost moduling etc. At the very inception of a construction project.1. The Quantity Surveyor with his vast knowledge in construction cost and considering the present day market conditions and changes in social . political and economic conditions he will give his cost prediction. Preliminary cost Cond…. Refer module COST STUDIES for details .1. .2 Cost planning and Pre contract cost controlling If the predicted approximate estimate is within the limit of his purse and considering other factors the Employer will requested the Engineer/Architect to proceed with the developing of required drawings and other tender documents. The following techniques are used when performing cost planning 1) Elemental cost planning 2) Comparative cost planning 3) Cost plan in use.2 Cost planning and Pre contract Cond… During this period the Quantity Surveyor has to a another vital duty called cost planning and pre contract cost controlling. Refer module COST STUDIES for details . SBD/02(Contract over 100million)SBD/03 (Contract up to 10million). * FIDIC form (International form)(Federation Internationale Dse Ingenieurs Counseils. The following are some of the Standard leading form of contracts * JCT form (Joint Contract Tribunal).SBD/01( Contract 10million to 100 million).SBD/04(For Design & Build Contracts) . Advice on suitable Form of Contract and suitable Procurement Method. * NEC form (New Engineering Contacts) * ICTAD form (Institute for Construction Training and Developments Sri Lanka) (SCA/1.3. T) (Financial Arrangement) ...3.O.suitable Procurement Method. The following are some of the leading procurement methods * Traditional methods * Design and build * Management contracting * Construction management * Build. operate and transfer (B.1. POMI etc. . SMM7.CESSM3. Measurement and quantification leading to preparation of Bill of Quantities The Bill of Quantities is a document which consisting of list of adequately described work items along with the accurate quantities with related units or money allocations displayed under different trades in accepted sequence to indicate the entire scope of works of a project and will have to be prepared by a Quantity Surveyor in accordance with the rules and recommendations laid down in one of the reputed Standard Method of Measurements.4. and to use as a based in valuing any future varied Works.The objects a) To provide the uniform information of the quantities of work as to enable tenders to be prepared efficiently and accurately. …… Bill of Quantities . to provide for use of the priced Bill of Quantities in the valuation of work executed under original scope. b) Help Employers/ Consultants for Apple to apple comparison of the Tender.4. . c) When a Contract has been entered into. .5. Preparation/Compilation of Tender/Contract documents/ Tender (Bid) Documents Tender(Bid) Documents * Form of Tender( Bid) with Appendix * Form of Agreement (Agreement) * Information and Instructions to Tenderers * Particular Conditions (Part 2)(Contract Data) * General Conditions of Contract (part 1) CONTD…. . Contract documents. Preparation(Compilation) of Tender. Tender (Bid) Documents –Cond… * Particular Specifications * General Specifications * Drawings * Bill of Quantities/Schedule of rates * Specimen Standard Forms (Bonds & Guarantees) .5. 5. Tender (Bid) Documents –Cond… * Duly filled and signed above mentioned Tender Documents PLUS * Memorandum of Understanding/Letter of Intent (If any) * Letter of Acceptance (ACCEPT) * All pre-tender and post-tender correspondence (Prior to issuing Letter of Acceptance.) (Note : optional. Contract documents. Preparation(Compilation) of Tender.explain) . . Tendering & Estimating All Quantity Surveyors are essential to be Estimators .6.But all Estimators are not essential to be Quantity Surveyors. capacity . Tendering & Estimating Cond… Calling tenders . .amount of provisional sums . Preparing reports on tenders are to be done by the architect’s/contract administrator’s quantity surveyor where estimating and converting scientifically prepared estimate to tender after considering various factor’s (site visits reports .6.Opening tenders .) by the contractor’s quantity surveyor.tender evaluation based on predetermined estimate.professional team etc. before issuing the Variation Orders by preparing the variation accounts to predict the cost changes due to prospective variation orders and other required cost controlling works such as cost reports . Cost control during construction During the construction period the Quantity Surveyor should advise the Architect/Contract Administrator .comparative cost options etc.7. (Cost Report to the Employer by predicting the anticipated final account) . During the construction period the Contractor’s Quantity Surveyor should advise the Contractor by preparing cost proposals. cost/value comparisons .7.loss /profit predictions .. anticipated final value and anticipated final cost (Cost Reports to the Contractor) . Cost control during construction Cond. Liquidated damages as stipulated in the Contract. Interim valuations and payments After establishing the Contract the Contractors’ are entitled to claim the value of work executed and other values such as Materials on Site. Cost fluctuations . .Recovery of Advance Payments . Variations .Adjustments of Provisional Sums. Claims .8. Hence the Contractor’s Quantity Surveyor has to prepare and the Architect’s /Contract Administrator’s Quantity Surveyor has to certify. . provisional sums.9.variation orders. fluctuation claims (if any) and other all general claims the quantity surveyor is completing the final accounts and obtain the Contractor’s agreement and the statement of discharge .Discharge and Final Accounts Providing financial statement as various stages during the construction period as specified in the contract and agreeing all work done under original scope . Financial statements . 10. contemporary records. disruption claims. amicable settlements to be done . Settlements of contractual claims and dispute resolution Giving notices. Extension of Time claims. Dispute resolution activities also to be handled . Advice on contractual disputes 13. Cost engineering services 8. Investment appraisal 2. . Insolvency services 7.Facilities management 12. Whole life costing 4.Employers agent CONTD……. Advice on cost limits and budgets 3. Technical auditing 10. Modern Quantity Surveying Practice 1. Sub contract administration 9.1.Project management 11. Value Engineering 5. Risk analysis 6. the degree of risk attached and the cost of obtaining funds. the lifespan of the investment. In order to handle these decisions.1. Investment Appraisal One of the key areas of long-term decisionmaking that firms must tackle is that of investment .the need to commit funds by purchasing land. . in anticipation of being able to earn an income greater than the funds committed. firms have to make an assessment of the size of the outflows and inflows of funds. buildings. machinery and so on. * Selecting the best alternatives. * Monitoring project(s).The main stages in the capital budgeting cycle can be summarized as follows: * Forecasting investment needs. * Appraising the alternatives. * Making the expenditure. * Identifying project(s) to meet needs. . Advice on cost limits and budgets. if you are entering into a realty investment that involves construction. you need a well defined budget.2. There is one thing that is definite. You do not want to be ball parking the figures particularly if you are going to be arranging financing to carry out the construction. . Refer module COST STUDIES . with no money to carry on. If you don’t then you could end up with a building partially finished. and end up in a most disastrous financial situation.It is imperative that you know your construction budgets limits. Also commonly referred to as "cradle to grave" or "womb to tomb" costs. refers to the total cost of ownership over the life of an asset. Whole life costing Whole-life cost.3. or Life-cycle cost (LCC). Refer module COST STUDIES . 4. Value Engineering Value Engineering can be defined as an organized approach to providing the necessary functions at the lowest cost From the beginning the concept of value engineering was seen to be cost validation exercise. Refer module COST STUDIES . The straight omission of an enhancement or finish would not be considered as value engineering. which did not affect the quality of the product. Refer Module on Production Organisation . shared. minimized. It cannot be ignored –Sir Micheal Lathem The Quantity Surveyor should advice on risk in construction and take steps to manage the risk at minimum cost. Risk analysis No construction project is risk free. transferred or accepted.5. Risk can be managed. Insolvency services The construction industry is responsible for more than its fair share of bankruptcies and liquidations. he will help to perform the insolvency services.6. Limited liability companies become insolvent and then go into liquidation. The Quantity Surveyor’s expert knowledge in cost. . project management." . business planning and management science. profitability analysis.7. and planning and scheduling. Cost engineering services Cost engineering is an area of engineering practice concerned with the "application of scientific principles and techniques to problems of cost estimating. cost control. . etc.g.).. software.g.. cost estimating. manufacturing.). chemical process. etc. or asset type (e.g. information technology. focused on either the asset management or project control side of the process.Cost engineering practitioners tend to be: specialized in function (e. buildings. engineering and construction. planning and scheduling. etc. and focused on a particular industry (e.).. 8. and manage its subcontractors. Sub contract administration The Contractors’ Quantity Surveyor should have ability to select. Making a proper letter of invitation to obtain proper quotation Evaluation Sub-contract agreement Certifying valuations Final accounts Discharge . control. Technical auditing Compare the final account with contract bills Examine the records available Discuss aspects with relevant staff Examine the procedure used Prepare a report on the findings .9. QUALITY. potential investors prefer to have Quantity Surveyors to handle project management services since cost factor is more prominent among the factors.10. Project Management Currently. TIME and COST . . Facility Management One of the simplest and most direct definition of facilities management is that given by the Royal Institution of Chartered Quantity Surveyors .which states that FM involves the total management of all services that support the business of an organization and identifies the opportunity that this relatively new discipline provides to the Quantity Surveying profession.11. 12. . Advice on contractual disputes Due to the specialist knowledge in contract conditions his advices are requested to solve contractual disputes. 13. Employer’s Agent Services of quantity surveyors are requested by the Employers to act as the Employer’s `Agent considering quantity surveyors knowledge in various disciplines related to construction industry specially with related to construction cost. . RICS Professional Regulation and Consumer Protection department February 2000 Professional ethics guidance note . You must base all your actions and judgments on these core values: . Following this set of values is one of the key features that defines the professionalism of all chartered and technical surveyors.ETHICS & VALUES OF A QUANTITY SURVEYOR RICS has a set of central values it expects members to apply in their work. Never put your own gain above the welfare of your clients or others to whom you have a professional responsibility. Act with integrity. Respect their confidentiality at all times and always consider the wider interests of society in your judgments.1. . Be trustworthy in all that you do – never deliberately mislead.2. whether by withholding or distorting information . Always be honest. 4. making things as plain and intelligible as possible. Be open and transparent. Share the full facts with your clients. and don’t blame others if things go wrong .3. Be accountable. Take full responsibility for your actions. Be objective at all times. 6. Never commit to more than you can deliver.5. Never let sentiment or your own interests cloud your judgement . Be aware of the limits of your competence and don’t be tempted to work beyond these. Give clear and appropriate advice. Act within your limitations. RICS’ and other members’ reputations . Never discriminate against others. Always treat others with respect. 8.7. Remember both your public and private behavior could affect your own. Set a good example. Be prepared to act if you suspect a risk to safety or malpractice of any sort .9. Have the courage to make a stand. Any Questions in QS Practice? .
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