SBEQ 4512 PROFESSIONAL PRACTICE (MAHIRAH BINTI NAZLIM B13BE0011)

(2) CHALLENGES FACED AND THE FUTURE IN QUANTITY SURVEYING

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
technologies and new opportunities have enabled surveyors to broaden their skills and
competencies, such that they may be involved in such diverse activities as estate
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. Diversification of the services is an essential tool to suit with the increasing
demand from the market. On the other hand, since the construction industry is in unstable
condition which threatens the quantity surveying profession, there is a need for the QSs to
explore into other sectors. It is an ideal way to sustain and safeguard their long-term future.

A quantity surveyor (QS) is a construction professional, who is qualified and

adequately trained to advice on all aspects of construction costs, financial and contractual
administration. There have been considerable changes and challenges of emphasis in a
quantity 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 project keeps progressing and the following are feasible to happen such as
disputes in between the main contractor and the project owner (employer). Besides 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. When it comes to
project 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 Quantity Surveying Profession by Phase

a. Pre-contract
b. Construction
c. Post construction

a) Pre-Contract
1.

Tendering for & winning jobs that have sustainable returns in a highly
competitive market.
2. Estimating reliably when based on poorly documented design information.
3. Cost data integrity and reliability of cost advice
4. Accuracy of budgeting & cash flow forecasting
5. Effective contract negotiation
6. Appropriateness of contingency/ risk margins and allocations
7. Prediction of market trends and their impacts on proposed project.
8. Gaining and sustaining clients confidence.
9. Adequacy of tender & contract documentations.
10. Resolving tags in tender evaluation.
11. Keeping up with revisions in fast-paced design development.

The most critical pre-contract phase challenges are relating to the quality of
the design documentation and the employers preference for the lump sum fixed price
contract and lowest cost conforming bid. According to the quality of the design

SBEQ 4512 PROFESSIONAL PRACTICE (MAHIRAH BINTI NAZLIM B13BE0011)

documentation, the challenges are all about the poor quality of the design including
drawing and specifications.

i.

Quality of Design Documentation

Both drawings and specifications will cause to the poor quality of

design documentation. The concerns raised included:
a. Design 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. Buildability issues that shows the designs too complex or fraught with
constructability problems, arising mainly from a lack of understanding
of the way in which buildings are constructed in practice and
contractors approaches to construction.
c. Designs not complying with Building Code with the risks of noncompliance passed on to the contractors and tenderers.
d. Design and design assumptions not aligned with specific site
conditions and restrictions.
e. Designers are accused of often replicating designs without doing
adequate site investigations and ensuring that the designs fully address
unique site issues. Ultimately, 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 fixed 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 financiers preferences cause a lot of issue for the construction
industry and it is service providers including Quantity Surveyors.

Open or competitive tendering is very expensive that involves a lot of paper

works, time consuming and offers limited chances of tendering success. Other 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 project. For the contractor quantity

surveyor, the quandary

is margin that too much will likely means that the job will not

be won in the first

instance. So that the too little margin win the job could result in

cash flow problems

which if experienced on other projects can result in more

significant and terminal issues.

b) Construction
1.
2.
3.
4.
5.
6.
7.
8.

Scope change & variation management

Cash flow monitoring & reporting
Margin maintenance
Defective/ non-compliant work
Conflict management, negotiations & Dispute resolution
Contract administration
Cost -to-complete forecasts
Industry Capitalisation Overdraft/ credit facilities

SBEQ 4512 PROFESSIONAL PRACTICE (MAHIRAH BINTI NAZLIM B13BE0011)

9. Record keeping.
10. Communication & reporting
11. Management of information release in fast-tracked & complex projects
12. Cost accounting and control
13. Interim valuations & payments
14. Subcontract claim management
15. Insurance & bonding
16. Reconciling tendering & estimate assumptions with onsite cost realities.

The areas of the services / duties in the construction phase are:

a. Contract administration
b. Financial management of the project that including:
i.
Interim valuations and payments
ii.
Monitoring and cost control over the project
iii.
Forecasting costs to complete and preparing financial statements
iv.
Final account preparation and agreement
c. Evaluating and settling claims including subcontract claim management
d. Settlement of payment disputes and giving expert evidence in arbitrations and
disputes

c) Post Construction
1. Agreeing final accounts.
2. Obtaining practical/ final completions & Code Compliance Certificates.
3. Capturing and valuing costs associated with snagging requirements.
4. Management of Defects rectification liability.
5. Retentions release.
6. Cost analysis/ cost modelling.
7. Liquidated & ascertained damages.
8. Arbitration/dispute resolution.
9. Satisfying client - gaining repeat commissions.
10. Documenting and sharing lessons learnt for use in future jobs.

SBEQ 4512 PROFESSIONAL PRACTICE (MAHIRAH BINTI NAZLIM B13BE0011)

FUTURE CHALLENGES

i. Specialist services (facilities management, project management, adjudication)

ii. Keeping up-to-date with and adapting to rapid changes in the business landscape
iii. Competitiveness / continuing relevance

a)

Enhanced technical roles

a. Building Economist: concerned with the optimal use of construction
resources and the maximisation of value-for-money solutions;
b. Value Engineer: identification and costing of alternative design and
construction solutions with a view to recommending the most cost-effective
solutions;
c. Procurement Consultant: making recommendations for the most appropriate
contract procurement strategy arrangements that best meet the needs of the
client;
d. Cost Manager: responsibility for the forecasting/ budgeting, planning and
organising, implementing and monitoring, reporting and controlling project
financial spend to ensure that the agreed cost target is met;
e. Contracts Administrator: overseeing the contractual administration of the
project to ensure compliance with the terms and conditions of the contract,
and the wider statutory/ legislative requirements for the project;
f. Commercial Manager: management of the overarching commercial aims
and objectives of a business.

b)

External Challenges
i.
ii.
iii.
iv.
v.

Industry and market condition

Macro-micro economic
Technological advances
Statutory / legal
Socio-cultural

SBEQ 4512 PROFESSIONAL PRACTICE (MAHIRAH BINTI NAZLIM B13BE0011)

vi. Global dynamics

FUTURE IN QUANTITY SURVEYING PROFESSION

A quantity surveyor (QS) is a construction professional, who is qualified and

adequately 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
utilized to the best advantage of society by providing inter alia, the financial management for
the project and a cost consultancy service to the client and designer during the whole
construction process. Generally, the vast majority of QSs are employed in private or public
practice or in a contractors organization. Both banking and petroleum field are the new in
Quantity Surveying world. Banking sector is one of the most important sectors that contribute
to the National economy. The high level system in Malaysia was said to be at its strongest
position since the financial crisis. The high level of capital, improving asset quality and
strong profitability has also been reinforced by substantial enhancements in the areas of
corporate governance and risk management standard. Other than that, Bank Negara Malaysia
(BNM) 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. Being major funding most of the construction project in Malaysia, bank
played an important role. Thus, both bank and construction sector that create connection can
come out with opportunity to the QSs to expand their services in the banking sector.

Whereas in petroleum sector that involve large-scale international petrochemical

industry which exist 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. Moreover, petroleum mining is
a sector which falls naturally into divisions responsible for exploration, production,
manufacture, transport, finance, marketing and research. The diversification of expertise 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 projects. The potential

SBEQ 4512 PROFESSIONAL PRACTICE (MAHIRAH BINTI NAZLIM B13BE0011)

opportunities that created in the petroleum sector will enable the quantity surveying
profession to survive despite the decline in number and net value of construction contracts.

Building information modelling (BIM) is a process involving the generation and

management of digital representations of physical and functional characteristics of places.
Building information models (BIMs) are files (often but not always in proprietary formats
and containing proprietary data) which can be exchanged or networked to support decisionmaking about a place. Current BIM 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.

Building Information Modelling will enhance rather than damage the quantity
surveying profession and it could significantly improve the efficiency and accuracy of
quantity surveying functions, including cost estimating and planning processes. BIM can
automate measurement, speed up traditional estimating process and better capture, manage
and deliver project information.

For the conclusion, the future in Quantity Surveying will be enhanced with the software
that will help the QS in their scope of works. With 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

1)
2)
3)
4)
5)

http://www.clge.eu/documents/events/2/18_s_4_en.pdf
http://construction.massey.ac.nz/NZBERS-2014_proc_fp_OBrien-P_et-al.pd
http://www.watts.co.uk/bim-is-key-to-future-of-qs-profession-says-rics/
https://en.wikipedia.org/wiki/Building_information_modeling
http://www.building.co.uk/rics-bim-will-enhance-qs-role/5066168.article