Importance of QS's in Public Project

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Topic: The Importance of Quantity Surveyors in Public Sectors 1.0. General Overview and Introduction Quantity surveyors have an essential part to play in increasing the efficiency of construction work and reducing confrontation by securing that the most appropriate procurement method is appointed, providing effective cost control procedure and ensuring value for money at all times. They minimise the potential omission by allocation risk and identifying the value-adding activities in the project. Quantity surveyors operate a wide range of competencies outside the traditional quantity surveying activities. The extended skills of quantity surveyors such as project management and value management also help clients to achieve their needs and expectations. (Seeley, 1997) in the current financial crisis which cash flow and credit are paramount factors for clients, an effective project management is essential, thus completion of project on stipulated time and within determined budget is important specially in the public sector which deal with the large scaled projects and intensive capital. Quantity surveyors have this capability to secure success of the projects by their effective technical and financial advices and thus have vital contribution in economic recovery. 1.1. The key role of quantity surveyors for public sector organisations In the previous section, a comprehensive description of quantity surveyor’s competencies in the both private and public sectors has been provided. As it was analysed the most important aspect in the financial crisis is cash flow and credit which are indispensable on the construction industry. It is essential to control and manage these key factors in order to recover the current crisis specially in the public sector because firstly, public sector deals with the public fund and governmental budget, secondly, mostly the public sector projects are the public vital needs such as hospitals, roads and schools; and finally, the public sector projects are often large scale ones and associated with the intensive

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Quantity Surveyors Role on Public Construction Projects

Transcript of Importance of QS's in Public Project

Topic: The Importance of Quantity Surveyors in Public Sectors1.0. General Overview and IntroductionQuantity surveyors have an essential part to play in increasing the efficiency of construction work and reducing confrontation by securing that the most appropriate procurement method is appointed, providing effective cost control procedure and ensuring value for money at all times. They minimise the potential omission by allocation risk and identifying the value-adding activities in the project. Quantity surveyors operate a wide range of competencies outside the traditional quantity surveying activities. The extended skills of quantity surveyors such as project management and value management also help clients to achieve their needs and expectations. (Seeley, 1997) in the current financial crisis which cash flow and credit are paramount factors for clients, an effective project management is essential, thus completion of project on stipulated time and within determined budget is important specially in the public sector which deal with the large scaled projects and intensive capital. Quantity surveyors have this capability to secure success of the projects by their effective technical and financial advices and thus have vital contribution in economic recovery.1.1. The key role of quantity surveyors for public sector organisationsIn the previous section, a comprehensive description of quantity surveyors competencies in the both private and public sectors has been provided. As it was analysed the most important aspect in the financial crisis is cash flow and credit which are indispensable on the construction industry. It is essential to control and manage these key factors in order to recover the current crisis specially in the public sector because firstly, public sector deals with the public fund and governmental budget, secondly, mostly the public sector projects are the public vital needs such as hospitals, roads and schools; and finally, the public sector projects are often large scale ones and associated with the intensive capital and budget. Therefore the quantity surveyors can play an important role with their knowledge and skills. It is unlikely that a project can be successful without effective reasoned advices and efficient consultancies of a quantity surveyor during the whole lifecycle of the project. The quantity surveyor influences on each stage of the public sector projects with his relevant core and extended competencies. These include the following stages:-A. Pre-design stage:At this stage, the client develops the concept, undertake a feasibility study and prepare an outline cost plan. An outline brief is then prepared after studying various options for the project. The brief is then developed which includes the clients requirements such as cost limits, time limits and functionality of the project. (Egbu, 2009)The knowledge and skills of the quantity surveyors that can be useful at this stage are:I. Project Evaluation: this competency is comprised development appraisal, investment appraisal, cost benefit analysis and financial aspects of feasibility study. The quantity surveyors have comprehensive knowledge of the various elements of the feasibility. Study and development appraisal and the factors that can affect them. Their understanding of techniques used to assess financial viability, enable them to advise the clients on the economics of design, on the use of value management and on how to consider risks associated with the project.

II. Design economics and cost planning: quantity surveyors can give strategic and reasoned advice to the clients on diversity of market factors and trends in construction cost. They have knowledge of the main parameters that affect design economics over the whole life cycle of projects and thus they can assist in the financial control of projects from feasibility to design completion by evaluating the efficiency of the design. They prepare preliminary estimate and cost plans at this stage; and analyse the accuracy of predicted cost.

III. Procurement advice: quantity surveyor is regarded as advisor or experts on selection of procurement methods and the advantages and disadvantages of each to the parties involved. They therefore have a clear knowledge of the main types of procurement used in the public sector and also ancillary processes such as partnering and framework agreements. They can evaluate the appropriateness of various procurement routs and implementing them. (RICS, 2008).

B. Design stage:During this stage, design team develop the brief into drawings and specifications. Client is informed of possible cost changes and can then change items of the design to reduce costs or accept the increased figure. (Egbu, 2009)The following competencies are used during this stage by quantity surveyors:I. Construction technology and environmental service: understanding and knowledge of different stage of design from inception to completion is one of the quantity surveyors competencies that can be used during the design stage. Quantity surveyors advise on the impact of different design solutions on cost and programme. They appreciate how design solutions vary for different types of buildings; thus can give effective advice on the choice of design solution for projects.

II. Contract management: This competency covers the role and responsibility of a surveyor managing the construction contracts. Quantity surveyors have detailed knowledge of the contractual provisions relating to the various standard forms of contracts. They can advise on the most appropriate contractual procedure at the various stages of a contract and then evaluate the appropriateness and implication of proposed contractual amendments. They assess entitlement for extension of time, loss and expenses; finally giving advice to clients of their contractual rights and obligations. (RICS, 2008).III. Value management: Employers are now looking for achieving improved value for money. Values of a project vary from perspective of each parties involved in the project. In the public sector projects, values are not only the cost and commercial aspects. Other factors such as aesthetic aspects, sustainability issues, extendibility and easy-remodelling capability should be taken into account and by considering of the fact that value is related to cost; quantity surveyors therefore are involved in the value management. Quantity Surveyors have the potential to act as the Value engineering coordinator, the key person in the team and also in their traditional role as cost consultant..... Value engineering provides a method of integration in the building process that no other management structure in construction can provide...Value engineering complements Project Management. (Kelly et al., 1998).

C. Construction StageAt this stage, execution and control of all site work and associated activities are carried out. Site supervisors monitor the project to ensure the project is constructed as per the contract documentation. The clients representative meanwhile is responsible for the management of all aspects of the construction stage, including monitoring the work of the design leader and supervisor. (Egbu, 2009). Presence of quantity surveyors has the significant effect on the project. The following skills and knowledge can lead the project to the best and optimal rout:I. Quantification and costing of construction works: this competency includes the measurement, valuation and definition of construction works in order to value and control costs which is another important part of quantity surveyors work. Surveyors carry out the quantifying and pricing construction works at various stages of projects; using their thorough knowledge of the various standard methods of measurement and also have this ability to advise clients on appropriate method of measurement and costing.II. Conflict avoidance, management and dispute resolution management: this skill is comprised the procedure and techniques for conflict avoidance, conflict management and dispute resolutions. The quantity surveyor has an in-depth knowledge of how various forms of contract deal with dispute avoidance and their provisions for resolving disputes. They can give advice on law governing conflict avoidance and management and can assist clients by their knowledge of dispute resolution procedure within construction process including: negotiation, mediation and conciliation, adjudication, arbitration, independent expert determination and litigation.(RICS,2008)III. Commercial management of construction: quantity surveyors have a thoroughly understanding of the financial processes used to achieve profitability and how these processes integrate with the overall delivery of the project. They are aware of techniques to reconcile the cost against income and therefore manage sub-contractors and suppliers financially. They evaluate and advise on the financial implications and appropriate management actions. Monitoring, analysing, reporting and advising on project cash flow and profitability are the other quantity surveyors competencies that clients can benefit from.

IV. Project management: The quantity surveyor is not only regarded as a building or a civil engineering estimator but he is also can be appointed as project manager, to take control of the project from inception to completion and to organise the work of the design team and the main contractor and subcontractors. (Seeley, 1997). Basically, management of project starts from design stage and continues through construction stage of project. Knowledge of risk management, planning and programming enable a quantity surveyor to be appointed as a project manager. Ability of a quantity surveyor to identify risks associated with the project and his knowledge of the strategies to eliminate or mitigate them are the key competencies for managing project. (RICS, 2008).

D. Post-construction (Use) stage:

At this stage, project is handed over and information for feedback is obtained. Although almost all design and construction parties are not involved in this stage, quantity surveyors still can play a key role during this stage by the following competencies:

I. Life-cycle cost advice: life cycle cost of a project is defined as the whole life cost of the project from the very beginning phase through post-construction and use phase including maintenance and service costs. However, the major part of life cycle cost is related to use phase when the project is commissioning and operating. It is wholly dependent on the functionality of that project, for example, life cycle cost of a dwelling house is completely different from a workshop even though their design and construction cost were the same. As the life cycle cost of a project does not appear before operation and use phase, it does not effect on the design and construction stage therefore usually it is not considered during these phases. However, as mentioned before, the major cost of a project is likely to be related to the post-construction cost and thus has a significant impact on projects; especially in the public sector due to the nature in which provides services to public such as schools, hospitals, health centres and so on. Hence it is essential for public sector projects to consider the maintenance and service and generally life cycle cost of them. Quantity surveyors have the competency to estimate and evaluate the lifecycle/whole life cost of a project. They carry out life cycle cost exercises which take account of value management, value engineering, risk management and sustainability issues.Finally, quantity surveyors have an important role in improving the effectiveness of managing the public projects by their knowledge of processes associated with project, information and knowledge management. Skills of quantity surveyors in the field of contractual policy, by the application of such techniques as serial tendering, early contractor selection, and statistical measurement of price movement and effective mechanisms of budgetary control, all play a large part in the survival of public sector from the current financial crisis. (RICS, 1973).