BACHELOR OF QUANTITY
SURVEYING (HONS)
[ Professional Practice 1 ]
(QSB 60604)
Prepared By : Lee Jian Ru , Loh Pey Mun ,
Leong Karr Khei
INTRODUCTION TO ROLE OF
QUANTITY SURVEYOR
• A quantity surveyor (QS) is a professional
working within the construction
industry concerned with construction costs
(figuring out just what a construction project is
going to cost) and contracts.
• The role of a quantity surveyor can be split into 3
stages which are:
Quantity Surveyor
A) Planning Stage
B) Construction stage
C) Post-Construction stage
A) Planning Stage
• Quantity Surveyor plays a key role in assessing whether the project is
feasible economically.
• The QS may act in consulting role to engineers and architects
advising them on cost effective methodologies and procedures.
• Feasibility studies of client requests :
- Preliminary studies undertaken in the very early stage of a project. They
tend to be carried out when a project is large or complex, or where there
is some doubt or controversy regarding the proposed development.
- Analysis of the budget relative to client requirements.
- Advice on the viability and probable costs of construction.
- Accurate initial budget cost by reference to cost data derived from
previous projects.
- Advice on the most economical layout, size, materials, methods of
construction and quality of the work.
B) Construction stage
• While the project is underway , the Quantity Surveyor Ensures the
process runs smoothly and within budget limits.
• Conflict can arise and the Quantity Surveyor Steps in to act as a
liaison between conflicted members of the construction process.
• Interpersonal relationships among the construction team keep the
project moving.
• Attention to monitoring the costs and economics involved during the
construction. Keeping the project running without conflict.
Dispute resolution:
- Dispute means argument, a disagreement and debate
- It occurs due to uncertainty, contractual problems and
behaviour.
- There are several methods of resolving a dispute:
1. Change order review
2. Claim Review
1. Change order review
Changes can happen for any number of reasons: sometimes technical or
contractual documents are interpreted differently, the design changes, quality
change, schedules run over or get delayed because of permits or inadequate
schedule allowance, overtime or a change in the availability of labour or material.
Quantity Surveyors are experts at detail, contracts and construction costs, they
are in the perfect position to provide both the Owner and Contractor with a fair
review of the how the change impacts the cost. The detail provided in the review
leaves both parties with a clear, credible method to resolve how changes are
handled before they become bigger problems.
2. Claim Review
A contractor may submit a claim for greater payment than the original contract
called for after the work has already been complete. Unresolved claims can result
in construction liens so it is important to address the claims before they become
bigger issues. Similar to a Change Order review, the Quantity Surveyor evaluates
the details of the claim and provides an unbiased recommendation concerning
the cost. Using a third party to recommend a fair and reasonable settlement
keeps Owners and Contractors satisfied that the price being charged for changes
are appropriate.
• Site visits, assessments and projections for future work
- For the Client QS, he is there on site to ensure the Contractor's
cost control measures are efficient in order to keep the contract with
the budget, to also confirm the valuation of work done raised by the
contractor when the need arises and also to evaluates claims made
by the Contractor.
For the Contractor QS, he is there on site to help monitor the
Contractor cash flow in quest to make savings for the Contractor,
also to check the work done in order to raise valuations.
- “work done in order to raise valuations”- is a pre-cursor to the issue
of an interim certificate, which in turn allows an interim payment to be
made
- “cash flow”- lifeblood of the construction industry and relates to the
incoming or outgoing of money to or from a company over a given
period (usually monthly)
B) Construction stage (continue)
C) Post-Construction stage
• After the project is completed, responsibilities and function shift.
This objective now is to monitor the building and make sure that
operational costs are kept inside the budget.
• The responsibilities are to make sure the project adheres to local
and national tax laws.
• Insurance claims and cost of replacement are dealt with by the
Quantity Surveyor. Accurate estimates of damages and costs of
destroyed or damaged goods are also provided.
• When the owner of a special purpose property (or special use property)
appeals the value assessed by the relevant taxing authorities (MPAC in
Ontario), they are always seeking to reduce the assessment. If the taxing
authority wishes to defend themselves against the appeal, they need
expert support. Quantity Surveyors can prepare Reproduction Cost
Estimates or Replacement Cost New Estimates which are a detailed
calculation of the costs to rebuild the facility exactly as it stands at the
time. The QS can also assist in preparing depreciation schedules to
account for the age and condition of the facility. This Estimate provides a
thorough, detailed expert witness report which can be used in defence of
the appeal in legal proceedings.
C) Post-Construction stage (continue)
Traditional Role
• Quantity Surveying is a profession that dates
back to the 18th century in the United Kingdom,
when construction projects were measured and
valued after they were designed and built. The
“measurers” would quantify and assign a value to
the work after the building was constructed and
then negotiate with the client and architect on
behalf of the tradesmen.
• By the early 19th century, a new contractor
system resulted in price competition before
construction. Quantity Surveyors developed the
skill of pre-measuring quantities from drawings
and assembling them in “bills of quantities”
before construction began.
• To satisfy marketplace by filling the
gaps across diverse industries.
•As is reflected in industry changes,
title changes and education.
Reason
1
• Procurement became an important
area of activity.
• Largely because of the increase array
of options that were available.
Reason
2
Why Evolved ?
Evolved Role
1. Investment appraisal
To provide objective, impartial and unbiased
opinions about the value of real property
By providing assistance to those who own,
manage, sell, invest in, and/or lend money on the
security of real estate
2. Value management
To provide for all the required project functions but
at a lower cost
To provide additional functions without increasing
the cost
To provide additional functions and at the same
time to lower the cost
Evolved Role
3. Risk Management
• Essential to construction activities in minimizing
losses and enhancing profitability
• Able to estimate the occurrence probability and
the size of damage.
• Risks analysis is so important for project
selection and coordination of construction work.
4. Facility Management
• Make sure that buildings and their services meet
that needs of the people who work in them.
• Manage services such as cleaning , security and
parking.
• Manage building maintenance like heating and
air conditioning systems.
Evolved Role
5. Insolvency services
• Administer bankruptcies and debt relief orders.
• Look into the affairs of companies in liquidation,
making reports of any director misconduct.
• Contractor insolvency brings with it many risks
including:
• work not being completed on time
• work being carried out to a poor standard and
with no or minimal comeback if defective.
6. Technical auditing
Verify different costs and expenses of the project
to ensure their justified investment.
Check construction accounting functions with the
analysis of bills and records.
Controlling unnecessary expenses and ensure
quality standards and safety.
Evolved Role
• The future development of quantity surveying
services is likely to be influenced by the following
important factors :
Developing Role
Client Focus
Development and application of information and
communication technologies (ICTs)
Research and its dissemination
Sustainability Agenda
Client Focus
• Construction cost will always be the
important component for clients.
• Clients always be prepared to pay for the
services that are able to demonstrate
financial benefit.
• There are some basic requirements of
clients.
• And also the client needs.
• Focus on client satisfaction. Recognize that
clients want buildings and support after
completion, at the right price , to the
appropriate quality and standards, on time
and meeting their needs is important.
Reduced time scales
Practical completion must mean
total completion, not ‘nearly
ready’
Simplified process
Complete understanding of the
procurement process
Comprehensive service
including mechanical and
electrical installations
Excluding the exclusions
Effective change management
Solutions not projects
Choice
Co-investment and risk taking
Commitment
Credibility
Competence
Clarity and accountability
Consistency The seven C’s
Development and application of information and
communication technologies (ICTs)
• IT is clearly one of those areas that has impacted on
all of our lives indifferent way.
• From a social point of view, ICT has changed the way
in which we communicate, research and reach
decisions, manage our work and store information.
• For example: Microcomputers, telecommunication,
and associated equipment.
• Computers have also had a major impact upon the
profession of QS, in respect of the role and function
of the professional activities. Such as, Cost X, Build
soft and other software.
• ICT continues to develop at an exponential rate.
• Virtually everyone involved in the construction
industry now has extensive access to this
technology.
Research and its dissemination
• Several of the quantity surveying practices have now established research and
development sections as integral part of their practices.
• Research is therefore seen as being important for the following reasons:
o Improving the quality of the service provided to clients.
o Increasing the efficiency of work practice.
o Extending the services which can be provided.
o Developing a greater awareness of new technologies.
o Providing a fee earning capability from research and development contract.
o Enhancing public relations and practice promotion.
Research
Research Dissemination
• The publication of research papers is now a part of an academic’s role for those working
in universities.
• Disseminated through academic mediums of journals and conference proceedings.
Sustainability Agenda
• Strategies such as Strategy for Sustainable Construction (2008) and The Low Carbon
Construction Action Plan (2011) are key drivers informing the client’s sustainability
objectives.
• Nowadays, clients are becoming increasingly aware of the benefits and need to
consider whole life costs, environmental impact assessments and evaluation of carbon
emissions.
• The impact on the quantity surveying profession can read through at Page 412 of the
book Willis’s Practice and Procedure for Quantity Surveyor ; 13 edition.
• QS needs to be aware of sustainability drivers and how
they relate to the client’s key sustainability objective .
• It is now important that QS adopts a wider outlook and
provides advice mindful impact of the development on
the environment.
• The definition of sustainability is broad, so to
participate fully indecision making the surveyor needs
to be aware of aspects such as ecological concerns,
corporate responsibility, waste management and other
issues associated with environmental impact
assessments.
Value in
Quantity Surveyor
• The Royal Institution of Chartered Surveyors
published a report in 1992, titled The Core Skills and
Knowledge Base of the Quantity Surveyor.
• This studied the needs of quantity surveyors in respect
of their education, training and continuing professional
development.
• The RICS report identified a range of skills that the
profession would need to continue to develop if it
wished to maintain its role within the construction
industry.
Value in
Quantity Surveyor
• The RICS report identified a knowledge base that
includes:
o Construction Technology
o Measurement Rules and Conventions
o Construction Economics
o Financial Management
o Business Administration
o Construction Law
• Skill base that includes:
o Management
o Documentation
o Analysis
o Appraisal
o Quantification
o Synthesis
o Communication
Skills, Knowledge and Understanding
The Professional Bodies
Royal Institution of Surveyors Malaysia (RISM)
Board of Quantity Surveyors Malaysia (BQSM)
Royal Institution of Chartered Surveyors (RICS)
Australia Institution of Quantity Surveyors (AIQS)
Public Associations of Quantity Surveyors (PAQS)
• MALAYSIA
• INTERNATIONAL
Consultant QS vs Contractor QS
• Consultants QS are usually employed by a client
for their expertise, including cost management.
• They gets involved at an early stage of the project
and is consulted on costs at every stage, from
initial design through to the completion.
• They are largely responsible for the validation
and monitoring of costs. Initial tasks for a
consultant QS involve advising on procurement,
producing initial cost plans and hiring contractors.
• Once the project is up and running, the consultant
QS will liaise with the contractor’s QS to verify
and authorize monthly payments and to approve
any changes to the original price.
• They tend to be largely office based, typically
getting out on site about once a week.
• The role of a contractor’s QS is to ensure that the
project stays within the given budget and to maximize
profit for their employer.
• They are often based on site and are very much at the
Centre of the project, watching it progress from day to
day.
• A contractor’s QS gets an overview of the construction
process and hands-on technical experience.
• Among other things, they are involved in preparing and
reviewing subcontract tenders (finding the most
suitable subcontractors for particular sections of work),
managing the subcontractor’s work throughout,
reporting on the financial progress of the project,
generating valuations for the work done to date, and
overseeing the payment of the subcontractors.
Consultant QS vs Contractor QS
Questions
1) How long do arbitrations usually last?
Ans : Summary proceedings, on average, take between 7-8
months from start to finish. Oral hearings that involve large
claims, complex issues, and a number of parties may
take 12-15 months from start to finish.
2) What is cost planning ?
Ans : A means of controlling the design process to meet the
budgetary requirements of the client. It enables the quantity
surveyor, with the design team, to design a building to a cost,
rather than costing a design after it has been completed.
3. Why is working in a contractors office for over 10-
years as a QS not good enough to warrant being
registered as a PrQS ?
• Only the professional QS can be formally registered
• The contractor QS is trained to ensure that the keenest price is
calculated for tenders and minimal expenditure and wastage is
incurred to maximize profit for the contractor firm.
• Whilst the professional QS is engaged to ensure that primarily the
client's interests are looked after in a totally unbiased manner.
• The rules of behavior and ethics as set by the profession are very
onerous and the culture is totally different to that of a contractor QS.
• It is not impossible for a contractor firm trained QS to register as a
PrQS, but it very difficult unless they are exposed to the pure PrQS
ideology and methodology at the coalface for at least 12-months.
• Similarly, a PrQS who has not been exposed to the competitive,
dog-eat-dog micro cost management environment necessary to
survive in the contractor environment, will also battle to cope when
employed by contractors.
4. Can a PrQS work in the civil or other engineering
fields?
• YES.
• There is a very big market for knowledgeable PrQS who
are experienced in engineering fields, plus there are a
number PrQS practices that specialize in engineering
quantity surveying.
• If one looks at the formal education curriculum of any of
the engineering fields, they learn so little about costing,
quantification, tenders and contracting in their university
years.
• This is possibly why there are so many massive cost
over-runs and disputes on these projects that are run
solely by engineers
5. What are the differences between Consultant QS and
Contractor QS ?
• Refers to the slide 24 and 25.
6. In your opinion, why research and its dissemination
is important for QS at the future ?
• Improving the quality of the service provided to clients.
• Increasing the efficiency of work practice.
• Extending the services which can be provided.
• Developing a greater awareness of new technologies.
• Providing a fee earning capability from research and
development contract.
• Enhancing public relations and practice promotion