SBEQ 4512 – PROFESSIONAL PRACTICE (MAHIRAH BINTI NAZLIM B13BE0011)
(2) CH (2) CHAL ALLE LENG NGES ES FACE CED D AND TH THE E FU FUTU TURE RE IN QU QUAN ANTI TITY TY SU SURV RVEY EYIN ING G PROFESSION
INTRODUCTION
Quantity surveying is an essential part of the construction process, from inception to building completion and even new field such as oil and gas, banking. As the surveying profession growth positively, it does so facing a number of fundamental challenges. New techno technolog logies ies and new opport opportuni unities ties have have enable enabled d survey surveyors ors to broade broaden n their their skills skills and comp compet eten enci cies es,, such such that that they they may may be invo involv lved ed in such such dive divers rsee acti activi viti ties es as esta estate te management, digital image processing, boundary demarcation, engineering design, planning, and satellite orbit analysis.
The challenges consist of the changes of the demand of the market, unstable economic condition in the construction industry as well as competition from other professionals. In order to survive upon these challenges, the QSs should alter their own roles to adapt with the challenges. iversification of the services is an essential tool to suit with the increasing demand from the market. !n the other hand, since the construction industry is in unstable condition which threatens the "uantity surveying profession, there is a need for the QSs to e#plore into other sectors. It is an ideal way to sustain and safeguard their long$term future.
A "uan "uantit tity y surv survey eyor or %QS& %QS& is a cons constr truc ucti tion on prof profes essi sion onal, al, who who is "uali "ualifie fied d and and ade"uately trained to advice on all aspects of construction costs, financial and contractual admini administra stratio tion. n. There There have have been been consid considerab erable le change changess and challen challenges ges of emphasi emphasiss in a "uantity surveying profession during the last two decades and the QS does, in particular, offer an enlarged and more efficient service.
SBEQ 4512 – PROFESSIONAL PRACTICE (MAHIRAH BINTI NAZLIM B13BE0011)
As the pro'ect keeps progressing and the following are feasible to happen such as disputes in between the main contractor and the pro'ect owner %employer&. (esides that, the conflict of designs as a results of the human errors and also the missing components in the drawing that will be resulting to faulty implementation on site. Apart from that, the tough decisions that will be made are tremendously putting the situation more in tension if these are not properly imposed during the operation of a certain construction activity. )hen it comes to pro'ect cost, there are some scenarios that the parties %contractor and employer& are disagrees on the issue too. So there are the challenges in the Quantity Surveying profession.
Challenges in Qan!i!" S#$e"ing P#%&essi%n '" Phase
a. *re$contract b. +onstruction c. *ost construction
a) P#eC%n!#a!
.
Tendering for - winning 'obs that have sustainable returns in a highly competitive market. . /stimating reliably when based on poorly documented design information. 0. +ost data integrity and reliability of cost advice 1. Accuracy of budgeting - cash flow forecasting 2. /ffective contract negotiation 3. Appropriateness of contingency4 risk margins and allocations 5. *rediction of market trends and their impacts on proposed pro'ect. 6. 7aining and sustaining clients8 confidence. 9. Ade"uacy of tender - contract documentations. :. ;esolving tags in tender evaluation. .
The most critical pre$contract phase challenges are relating to the "uality of the design documentation and the employer8s preference for the lump sum fi#ed price contract and lowest cost conforming bid. According to the "uality of the design
SBEQ 4512 – PROFESSIONAL PRACTICE (MAHIRAH BINTI NAZLIM B13BE0011)
documentation, the challenges are all about the poor "uality of the design including drawing and specifications.
i*
Qali!" %& Design D%+en!a!i%n
(oth drawings and specifications will cause to the poor "uality of design documentation. The concerns raised included= a. esign drawings and specifications being in conflict, containing errors or lacking sufficient details for accurate cost advice to be provided, measurement and pricing to be carried out, and for realistic, bona fide tenders to submitted. b. (uildability issues that shows the designs too comple# or fraught with constructability problems, arising mainly from a lack of understanding of the way in which buildings are constructed in practice and contractor8s approaches to construction. c. esigns not complying with (uilding +ode with the risks of non$ compliance passed on to the contractors and tenderers. d. esign and design assumptions not aligned with specific site conditions and restrictions. e. esigners are accused of often replicating designs without doing ade"uate site investigations and ensuring that the designs fully address uni"ue site issues. >ltimately, risks are passed on to the contractors and tenderers with the usual caveat that ?the tenderer should visit the site to ascertain the site characteristic and any other issues that may affect cost and will be deemed to have allowed for the cost of dealing with these in the tender@, yet doing so may take the tender uncompetitive.
The view of the construction clients, especially in public sector clients that prefer lump sum fi#ed price contracts, an open and competitive tendering process and operate a lowest cost conforming bid procurement award process. Therefore, many employers seek to transfer as much risks as possible to the contractor, yet their
SBEQ 4512 – PROFESSIONAL PRACTICE (MAHIRAH BINTI NAZLIM B13BE0011)
preferred contract and procurement strategies arguably do not provide commensurate reward to the contractor for shouldering the bulk of the risks. It is perceived that these employers and their financier8s preferences cause a lot of issue for the construction industry and it is service providers including Quantity Surveyors.
!pen or competitive tendering is very e#pensive that involves a lot of paper works, time consuming and offers limited chances of tendering success. !ther than that,
the tenderers invest significant resource and effort in preparing and submitting
tenders,
which is wasted if they fail to win the tenders, often with no feedback as to
why they lost the tender. The successful contractor may not be successful in the true sense of the
word because nature of the contract and lowest cost conforming bid do
not allow room
for sustainable margins on a pro'ect. or the contractor "uantity
surveyor, the "uandary
is margin that too much will likely means that the 'ob will not
be won in the first
instance. So that the too little margin win the 'ob could result in
cash flow problems
which if e#perienced on other pro'ects can result in more
significant and terminal issues.
') C%ns!#!i%n
. . 0. 1. 2. 3. 5. 6.
Scope change - variation management +ash flow monitoring - reporting Bargin maintenance efective4 non$compliant work +onflict management, negotiations - ispute resolution +ontract administration +ost $to$complete forecasts Industry +apitalisation !verdraft4 credit facilities
SBEQ 4512 – PROFESSIONAL PRACTICE (MAHIRAH BINTI NAZLIM B13BE0011)
9. ;ecord keeping. :. +ommunication - reporting . Banagement of information release in fast$tracked - comple# pro'ects . +ost accounting and control 0. Interim valuations - payments 1. Subcontract claim management 2. Insurance - bonding 3. ;econciling tendering - estimate assumptions with onsite cost realities.
The areas of the services 4 duties in the construction phase are= a. +ontract administration b. inancial management of the pro'ect that including= i. Interim valuations and payments ii. Bonitoring and cost control over the pro'ect iii. orecasting costs to complete and preparing financial statements iv. inal account preparation and agreement c. /valuating and settling claims including subcontract claim management d. Settlement of payment disputes and giving e#pert evidence in arbitrations and disputes
) P%s! C%ns!#!i%n
. Agreeing final accounts. . !btaining practical4 final completions - +ode +ompliance +ertificates. 0. +apturing and valuing costs associated with snagging re"uirements. 1. Banagement of efects rectification liability. 2. ;etentions release. 3. +ost analysis4 cost modelling. 5. Ci"uidated - ascertained damages. 6. Arbitration4dispute resolution. 9. Satisfying client $ gaining repeat commissions. :. ocumenting and sharing lessons learnt for use in future 'obs.
SBEQ 4512 – PROFESSIONAL PRACTICE (MAHIRAH BINTI NAZLIM B13BE0011)
FUTURE CHALLENGES
i. Specialist services %facilities management, pro'ect management, ad'udication& ii.
a)
Enhane, !ehnial #%les
a. (uilding /conomist= concerned with the optimal use of construction resources and the ma#imisation of value$for$money solutionsD b. Ealue /ngineer= identification and costing of alternative design and construction solutions with a view to recommending the most cost$effective solutionsD c. *rocurement +onsultant= making recommendations for the most appropriate contract procurement strategy arrangements that best meet the needs of the clientD d. +ost Banager= responsibility for the forecasting4 budgeting, planning and organising, implementing and monitoring, reporting and controlling pro'ect financial spend to ensure that the agreed cost target is metD e. +ontracts Administrator= overseeing the contractual administration of the pro'ect to ensure compliance with the terms and conditions of the contract, and the wider statutory4 legislative re"uirements for the pro'ectD f. +ommercial Banager= management of the overarching commercial aims and ob'ectives of a business.
')
E-!e#nal Challenges
i. ii. iii. iv. v.
Industry and market condition Bacro$micro economic Technological advances Statutory 4 legal Socio$cultural
SBEQ 4512 – PROFESSIONAL PRACTICE (MAHIRAH BINTI NAZLIM B13BE0011)
vi. 7lobal dynamics
FUTURE IN QUANTITY SURVEYING PROFESSION
A "uantity surveyor %QS& is a construction professional, who is "ualified and ade"uately trained to advice on all aspects of construction costs, financial and contractual administration. The roles of QS is to ensure that the resources of the construction industry are utiliFed to the best advantage of society by providing
inter alia ,
the financial management for
the pro'ect and a cost consultancy service to the client and designer during the whole construction process. 7enerally, the vast ma'ority of QSs are employed in private or public practice or in a contractor8s organiFation. (oth banking and petroleum field are the new in Quantity Surveying world. (anking sector is one of the most important sectors that contribute to the National economy. The high level system in Balaysia was said to be at its strongest position since the financial crisis. The high level of capital, improving asset "uality and strong profitability has also been reinforced by substantial enhancements in the areas of corporate governance and risk management standard. !ther than that, (ank Negara Balaysia %(NB& promoted merger of commercial banking and finance company business in the group banking into one single entity in order to enables the commercial bank undertaking finance company business. (eing ma'or funding most of the construction pro'ect in Balaysia, bank played an important role. Thus, both bank and construction sector that create connection can come out with opportunity to the QSs to e#pand their services in the banking sector.
)hereas in petroleum sector that involve large$scale international petrochemical industry which e#ist in our country. As a large scale sector, they offer wide range of management and specialist skills for the activities and operations of the refineries, pipelines, ocean tankers, drilling rigs and also distribution of networks. Boreover, petroleum mining is a sector which falls naturally into divisions responsible for e#ploration, production, manufacture, transport, finance, marketing and research. The diversification of e#pertise of the modern QSs will enable them to involve in the petroleum sector by providing the services which similar to those that QSs traditionally gives on construction pro'ects. The potential
SBEQ 4512 – PROFESSIONAL PRACTICE (MAHIRAH BINTI NAZLIM B13BE0011)
opportunities that created in the petroleum sector will enable the "uantity surveying profession to survive despite the decline in number and net value of construction contracts.
(uilding information modelling %(IB& is a process involving the generation and management of digital representations of physical and functional characteristics of places. (uilding information models %(IBs& are files %often but not always in proprietary formats and containing proprietary data& which can be e#changed or networked to support decision$ making about a place. +urrent (IB software is used by individuals, businesses and government agencies who plan, design, construct, operate and maintain diverse physical infrastructures, such as water, wastewater, electricity, gas, refuse and communication utilities, roads, bridges and ports, houses, apartments, schools and shops, offices, factories, warehouses and prisons.
(uilding Information Bodelling will ?enhance rather than damage@ the "uantity surveying profession and it could ?significantly improve@ the efficiency and accuracy of "uantity surveying functions, including cost estimating and planning processes. (IB can automate measurement, speed up traditional estimating process and better capture, manage and deliver pro'ect information.
or the conclusion, the future in Quantity Surveying will be enhanced with the software that will help the QS in their scope of works. )ith the addition of field in future as mention above which is in banking and petroleum %oil and gas&, so this software will help and facilitate the work to be more efficient and effective.
SBEQ 4512 – PROFESSIONAL PRACTICE (MAHIRAH BINTI NAZLIM B13BE0011)
REFERENCES
& & 0& 1& 2&
http=44www.clge.eu4documents4events446GsG1Gen.pdf http=44construction.massey.ac.nF4NH(/;S$:1GprocGfpG!(rien$*Get$al.pd http=44www.watts.co.uk4bim$is$key$to$future$of$"s$profession$says$rics4 https=44en.wikipedia.org4wiki4(uildingGinformationGmodeling http=44www.building.co.uk4rics$bim$will$enhance$"s$role42:3336.article
