THE HISTORICAL DEVELOPMENT OF THE QUANTITY SURVEYING PROFESSION AND THE IMPORTANCE OF THE BILL OF QUANTITY IN MODERN DAY TRADITION BUILDING CONTRACT
1.0 INTRODUCTION From time immemorial, the splendor of construction can be traced to as early the Egyptian, Greeks, Romans and the Islamic civilization era. It has evolved and changed significantly as men became more civilized in expressing and portraying their ideas and vision in terms of architecture and structure, but the idea of cost finalization was still reluctantly considered at that time, (Wainwright and Whitrod 1980). However, it has all changed after the industrial revolution. Apart from modernizing construction practices, it has also brought momentous change of perception towards the importance of proper costing and cost documentation of construction projects. This led to the emergence of formalized Bills of Quantities or BOQs in 1859 and the establishment of the Quantity Surveying profession. This document is tracing the historical development of the quantity surveying profession and stressing why the bill of quantities is an important element in the modern day traditional buil ding contract. 2.0 THE MAIN ISSUE 2.1 THE HISTORICAL DEVELOPMENT OF THE QUANTITY SURVEYING PROFESSION The quantity surveying profession has developed over the last century and has grown to such an extent that it forms one of the largest single section in the membership of the Royal Institute of Chartered Surveyors, particularly since the amalgamation with the former institute of quantity surveyors in 1983, (Ashwoth, 1988). Ashworth and Seely (1988.) added that a quantity surveyor can be defined as “one who ensures that the resources of the construction industry are utilized to the best advantage of society by providing financial management and cost consultancy services during the whole process of construction, i.e. inception to completion”. The earliest quantity surveying firm of which records are available is a Reading firm which was operating in 1785. A number of Scottish quantity surveyors met in 1802 and produced the first method of measurement. Quantity surveyors measure and value the building th
work before it is constructed. Until up to the middle of the 19 century it was the practice to measure and value the building work after it has been completed and bills of quantities were not prepared. The need for quantity surveyors became evident as building works increased i n volume and building clients became dissatisfied with the method adopted for settling the cost of the work. th
In the 17 century, the architect was responsible for the erection of the building as well as the design, and he employed a number of master craftsmen who performed the work in each
trade. Drawings were of a very sketchy nature and much of the work was ordered during the course of the job. On completion each master craftsman submitted an account for the materials used and labour employed on the work. It later became the practice of many of the master craftsmen to engage ‘surveyors’ or ‘measurers ‘ to prepare these accounts. One of the major problems of this practice was the difficulty to reconcile amount of materials listed on invoice with the quantities measured on completion of the work. Some of the craftsmen surveyors made extravagant claims for waste of materials in executing the work on the site and the architects also engaged surveyors to contest these claims. General contractors became established during the industrial revolution and they submitted inclusive estimates covering the work of all trades. Furthermore, they engaged surveyors to prepare bills of quantities on which their estimates were based. As competitive tendering became more common, the general contractors had begun combining to appoint a single surveyor to prepare a bill of quantities which all the contractors priced. In addition, the architects on behalf of the building owner usually appointed a second surveyor who collaborated with surveyor for the contractor in preparing the bill of quantities, which was used for tendering purposes. In later years, it became the practice to employ one surveyor only who prepared an accurate bill of quantities and measured any variations that arose during the progress of the project. This was the development of the independent and impartial quantity surveyor as he operates today and his major works in modern day construction can be summarized as follows, (Ivor H. Seeley 1989):
Preliminary cost advice and approximate estimating
Cost planning including investment appraisal, life-circle cost and analysis
Contractual procurement and tendering procedure
Preparation of contract document
Cash flow foresting, financial reporting and interim management
Financial accounting and settlement of contractual disputes (et al, willis 1987)
Therefore, it is important for the quantity surveyor to be qualified in major areas of the profession which include: ECONOMICAL: Associated with assessment of the value of money and cost effectiveness in design, relying upon analysis and evaluation techniques necessary for costing, measuring and valuing in order that clients may be advised correctly. LEGAL:
Based upon a general knowledge of law and a specialist knowledge and
interpretation of the law of contract. This is used in producing contract documentation and in the advice and settlement of contractual matters, disputes and claims.
TECHNOLOGICAL: A knowledge of construction process and the methods used in the construction of buildings and other structures, together with an in depth knowledge of the industry. This provides the basis of developing other skills. MANAGERIAL: The ability to organize the work associated with the construction project and to influence others in the procurement of buildings and structures together with skills of an administration function. (Willis et al 1987) 2.2 IMPORTANCE OF THE BILL OF QUANTITIES IN THE MODERN DAY TRADITIONAL BUILDING CONTRACT
Frequently, one of the principal functions of the quantity surveyor is to produce the bill of quantities. The term ‘quantity’ refers to the amount of the different types of works fixed in
position which collectively give the total requirements of the building contract. These quantities are set down as a standard form on ‘billing paper’ which has been suitably ruled in columns so
that each item of work may be conveniently detailed with a suitable reference. The term ‘bill’ refers to a written statement of how much is owed for goods or services (Collins 2002). Therefore, a bill of quantities can be said to be a document which sets down various items of work in a logical sequence and recognized manner so that they may be readily priced by contractors. It explains the model of the building works in quantities and then values it. Evidently the bill of quantities should be considered as an important element in modern day traditional building contract in the construction industry. First and foremost it enables all contractors tendering for a contract to price on exactly the same information with a minimum of effort and limits the risk element borne by the contractor to the rates he enters in the bill. Furthermore, the bill of quantities is important in modern day traditional building contract as it prompts the client and the design team to finalise most project particulars before the bill can be prepared, ideally with full production drawings and project specifications. It also provides a basis for the valuation of variations which often occur during the progress of the work. This is achieved in a way that a bill of quantities gives an itemised list of the components parts of the building, with a full description and the quantity of each part and thus may assist the successful contractor in ordering materials and assessing his labour requirements of the contract. Bill of quantities also helps to choose the best contractor for the job because the architect or client can hire an independent quantity surveyor to prepare a bill of quantities which they will compare to the contractors bid. This makes it possible to prepare the final account. Finally, after the bill of quantities has been priced, it provides a good basis for a cost analysis, which subsequently will be of use on future contracts in cost planning. Moreover if prepared in annoted form, it will help in the locational identification of the work
and hence helping in settling disputes that may arise between contractor and client as a result of misunderstanding especially when it comes to finance (M. Randall 1988). 3.0 CONCLUSION It will be apparent that with the increasing size and complexity of building operations, it would be impossible for a contractor to price a medium to large sized project without a bill of quantities. Evidently, despite of the emergence of new ‘genre’ of procurement in the global construction industry, a bill of quantities is still viable to be used as an important cost document. Therefore, it is important and crucial for the quantity surveying profession to develop more and further improve their cost management competency so that they can produce more accurate and reliable cost information in the form of BOQs. Furthermore, it is important to note that with the advancement of ICT, the process of measurement, billing and extraction, translation and generation of projects and cost information can now be automated and carried out in more scientific manner.
4.0 REFERENCE Collins. Y. (2002). Pre-Qualification Structured Learning (PQSLs) Series-Schedule of Rates Vs Bills of Quantities. The Hong Kong Institute of Surveyors Randall M. (1988). Macmillian dictionary of building. London Macmillian press ltd. Seeley I. H. (1973). Building Economics. Great Britain: Macmillian Education Limited. Seeley I. H. (1988). Building Quantities Explained. London Macmillian Education Ltd. Willis C. J. and Ashworth A. (1933). Practice and Procedures for the quantity Surveyor. Great Britain. Wainwright W. H. and Whitrod R. J. (1980). Measurement of Building Work. London Hutchinson and Co.
