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Debs Harding
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Table of Contents
Declaration
Contents
Abstract
Acknowledgments
Glossary of Abbreviations
11
Chapter 1
Introduction
12
1.1
Introduction
12
1.2
Rationale
13
1.3
Research Proposal
15
1.4
15
1.5
Research Methodology
16
1.6
Research Structure
18
2.1
Introduction
18
2.2
18
2.3
19
2.4
Chapter 2
2.5
Industry
20
2.4.1 Contracting
20
2.4.2 Services
21
2.4.3 Products
22
23
2.6
2.7
24
24
25
25
25
27
28
30
30
31
32
32
33
2.8
34
2.9
38
41
2.11.1 NRM 1
41
2.11.2 NRM 2
45
4
2.11.3 NRM 3
Chapter 3
47
48
49
2.14 Summary
49
Data Analysis
50
3.1
Introduction
50
3.2
Research Aims
50
3.3
50
51
51
3.4
51
3.5
Research Methods
51
3.6
Questionnaire 1
52
52
Questionnaire 2
52
53
3.8
Interviews
53
3.9
Telephone Interviews
54
3.7
54
Chapter 4
Chapter 5
Analysis of Data
55
4.1
Introduction
55
4.2
The Questionnaire
55
4.3
Interview Results
73
4.4
Software
81
4.5
Education
83
Evaluation of Data
84
5.01 Introduction
84
Chapter 6
84
86
87
Conclusion
89
6.01 Introduction
89
6.02 Objective 1
89
6.03 Objective 2
90
6.04 Objective 3
91
6.05 Objective 4
92
6.06 Objective 5
93
93
Abstract
The Role of the Quantity Surveyor is very complex and involves many disciplines and
personal traits. As a result of changes, within the Economy and the Construction
Industry, the role is constantly being adapted and changed. Following a period of
review and discussion, The Royal Institution of Chartered Surveyors introduced the
New Rules of Measurement to assist in the preparation of cost plans and measurements.
Measurement is still an important part of the Quantity Surveyors role, however, the
preparation of cost advice is equally as important. Over the past 10 years or so, a new
breed of Quantity Surveyor has emerged who is commercially aware and plays an
essential role in day-to-day running of construction project. The Contractors Quantity
Surveyor is now a key member of the Project Team.
Acknowledgements
I would firstly like to thank my late mum and dad for their love support and
encouragement that has lead me along this path, may you both rest in peace. I would
also like to thank God for giving me the inner strength to take the path that has finally
enabled me to complete my studies.
neighbours for their support and encouragement, friends are the family that we chose
for ourselves and without good friends I would not have achieved my ultimate aim to
complete this dissertation.
Figure 2
Figure 3
Figure 4
Figure 5
Figure 6
Figure 7
Figure 8
Figure 9
Figure 10
Figure 11
Figure 12
Logic and arrangement of cost data structure used by NRM1 and the
updated BCIS SFCA Level 1 and 2.
Figure 13
The RICS formal cost estimating and cost planning stages in context
with the RIBA Plan of Work and OGC Gateways.
Figure 14
Figure 15
Figure 16
Figure 17
Figure 18
Figure 19
Figure 20
Figure 21
Figure 22
Figure 23
Figure 24
Figure 25
Figure 26
Figure 27
Figure 28
Figure 29
Figure 30
Figure 31
10
Glossary of Abbreviations
QS
Quantity Surveyor
CI
Construction Industry
RICS
CIOB
NRM
NRM 1
NRM 2
NRM 3
SMM
SMM7
SMM6
BIM
CDM
UK
United Kingdom
BCIS
SFCA
M&E
OGC
11
1.1
Introduction
The purpose of this chapter is to give an overview of the dissertation. The rationale is
detailed, followed by the research proposal, the aims and objectives set out, research
methodology given and finally a breakdown of the chapters detailed.
12
1.2
Rationale
The role of the Quantity Surveyor (QS) and the Construction Industry (CI) have both
been through significant change over the past 30 years.
recession, and as far back as the recession of the early eighties, it was widely known
that the CI had been labelled by Clients, The Government and the Public as having a
poor image with many projects over running in both cost and time. In an attempt to
resolve this, several industry reports were commissioned namely: The Latham Report
Constructing the Team (1994), The Egan Report Rethinking Construction (1998),
Modernising Construction (2001) National Audit Office, Egan Report Accelerating
Change (2002) and The Wolstenholme Report (2009). In the late 1960s and early
1970s, The Royal Institution of Chartered Surveyors (RICS) noticed that Quantity
Surveying as a profession was suffering from a Crisis of Identity, so much so that it was
predicted that Quantity Surveying would soon become redundant. The RICS, therefore,
identified that there was a potential problem and commissioned several reports. The
main ones being: RICS (1971) The Future Role of the Quantity Surveyor, RICS (1983)
The Future Role of the Chartered Quantity Surveyor, RICS (1991) Quantity Surveying
2000 The Future Role of the Quantity Surveyor, RICS (1998) and The Challenge of
Change QS Think Tank: Questioning the Future of the Profession.
role in ensuring that construction projects are delivered both on time and within budget.
As a result of the Industry and the RICS reports, the role of the QS has been reinvented
several times from its initial role as Measurer. The current role of the QS is to
manage costs on building projects from early conception to completion and as a result
enhancing value for money.
Following the collapse of the World Banking system in 2008, the World Economy has
been in a fragile state and in an attempt to survive top Construction corporations were
forced to adapt. Unfortunately as a result of change there was also an element of
collateral damage. Due to the recent recession the CI has been in a severe state of
decline, with the number of large commercial, residential and infrastructure projects
being vastly reduced. The Economic downturn during 2008 and 2013 has, had a severe
detrimental effect on the CI, and apart from there being a vast number of redundancies,
13
tender margins have also been slashed and several Companies have been operating at
break-even and also negative margins in an attempt to remain in business. On a more
positive note, the recent financial indicators show that the economy is showing signs of
improvement. It has been hinted that 2014 will be the biggest growth year since the
recession. Mair (2014) recently reported that the CI is currently in a period of growth
rising for the first time in five years with employment in the CI being required in all
areas of the United Kingdom. It is however of paramount importance that lessons are
learnt from the recent period of austerity and that tight financial controls are maintained.
QSs are responsible for controlling costs on a project from the initial cost plan stage to
the final completion stage. It was identified that the information completed at cost plan
stage was of paramount significance to a project as this was used by Clients when
establishing their construction budget. Benge (2009) highlighted that there was a need
to change in the way that Cost Plans were prepared. Ashworth (2010) identified how
during 2008 The RICS and the Construction Faculty set up a Steering Group, The
Measurement Initiative Steering Group, identified issues associated with the
measurement of building works at all stages of the design and construction process and
as defined by Benge (2010) to develop a suite of measurement rules to support the cost
management and procurement of construction projects from cradle to grave dealing
with cost estimating and cost planning.
was The New Rules of Measurement (NRM) a suite of documents developed by the
(RICS) to set out a standard set of measurements rules that can be understood by all
parties involved in a project.
14
1.3
The purpose of this dissertation is to analyse the journey of the QS from Standard
Method of Measurement of Building Works Seventh Edition (SMM7) to New Rules of
Measurement (NRM) the associated Black Book and the implications of Building
Information Modelling (BIM) and to establish whether or not any of these changes will
assist the QS in recreating their identity within the CI and whether or not their
implementation will assist in projects becoming more efficient.
1.4
Analyse the findings of the RICS and Industry reports and establish how the role
of the QS has had to change due to current market trends and changes in
legislation.
Review current academic literature and establish why the role of the QS has been
in crisis for a number of years and to identify the ways in which the role of the QS
has been vastly diversified over the last few years and therefore identify the
current role of the QS.
Analyse the background to and the introduction of the New Rules of Measurement
within the Industry and how it can be implemented to ensure that the role of the
QS can be reinvented.
Carry out a brief overview of SMM7 versus the New Rules of Measurement and
to establish why the RICS felt that it was time for change.
Identify how the NRM is being filtered into student syllabus and what training
companies need to implement.
15
1.5
Research Methodology
In order to reach the objectives the following research will be carried out:
In order to research the impact of NRM it will be necessary to carry out both a
Questionnaire based study and a series of Interviews.
Research will also need to be carried out on how Universities are filtering the
New Rules of Measurement into their Syllabus. This will be done by collecting
information from Course Descriptors of various Universities.
There will also be a requirement to analyse the impact that the NRM has had in
Estimating Software.
16
1.6
Research Structure
Chapter 1
Introduction
Chapter 2
Literature Review
An overview of the Construction Industry
The Role of the Quantity Surveyor
The New Rules of Measurement
Chapter 3
Data Gathering
Chapter 4
Chapter 5
Evaluation of Data
Chapter 6
Conclusions
17
2.1
Introduction
The aim of this chapter is to carry out a literature review relating to the role of the QS
and their future position within the CI (CI). The chapter provides an insight into the CI
followed by a review of the role of the QS, in particular in relation to the findings of the
Reports carried out by the RICS between the periods of 1967 1998. There will be also
be an overview of the NRM along with, the Black Book and a brief review on how
Building Information Modelling (BIM) can support the New Rules of Measurement.
2.2
This Dissertation is concerned in particular with the future role of the QS, it is should
however be noted that the QS is part of a team of Professionals. Construction Projects
involve several different professionals and parties such as Architects; Structural
Engineers; Main Contractors; Services Engineers and Construction Design and
Management (CDM) Co-ordinators who all play an active part in the Construction
Project at differing stages. These professionals all work independently, either directly
for the Client, or the Contractor, they all make decisions that ultimately affect each
other and the construction project. All parties to a project are important as they are all
links in the chain.
18
2.3
As highlighted in The Department for Business Innovation and Skills Report (July
2013), the supply chain within the CI is large with most of the resources being sourced
within the UK, and approximately 90% of the monies spent on construction projects
staying within the UK.
it undertakes works, the range of companies carrying out the works and the complex
nature of its structure. Morledge et.al (2006) developed this theory and noted that the
fragmentation of the industry means that it tends to be a diverse supply markets from
which Clients may source their specific needs. The Industry does have a number of
large organisations, however, it is made up predominantly of a high number of small to
medium sized enterprises and a vast amount of works are carried out by subcontractors.
The CI has a high amount of people working on a Freelance basis whom work with
several different Private Practices, Consultants and Contractors.
Refer to diagram
below:
19
2.4
The CI has been defined by Towey (2012) as being a generic term for the service
industry that forms part of the nations economy, carrying out the planning, design,
construction, alteration, refurbishment, maintenance, repair and demolition of
structures. Whereas Cartlidge (2013) identified the CI as a unique, complex and often
fragmented industry.
Great Britain.
Works are undertaken for both Public and Private Clients and are
therefore, a major part of the Economic make-up of the United Kingdoms Economy.
Construction is an extremely valuable source of employment for a variety of individuals
involved in many different and variable roles from the field of Main Contracting,
Developing, All Trades Sub-contracting, and Self-Employment in both the Private and
Public Sector and Consultancies.
work in a Freelance basis for a variety of Client, Private Practice, Consultancies and
Contractors. There are also the fringe workers such as those who operate the plant
machinery on construction sites, haulage companies who deliver and take away
materials and of course catering companies. This makes for employment and a healthy
economy.
1. Contracting
2. Services
3. Products.
2.4.1
Contracting
Contracting is by far the largest of the three sectors as identified in The Department for
Business Innovation and Skills Report (July 2013),it can be apportioned as covering
70% of the sector. Contracting includes all aspects of Construction works from the
20
2.4.2
Services
The Services Sector is the second largest sector and as identified in The Department for
Business Innovation and Skills Report (July 2013), can be apportioned as covering
15.5% of the sector.
21
2.4.3
Products
The Products Sector is smallest sector and, as identified in The Department for Business
Innovation and Skills Report (July 2013), can be apportioned as covering 14.5% of the
sector. The Products Sector includes the manufacture of construction products and
materials. The manufacture of construction products and materials are an important part
of the construction process.
Suppliers to ensure that they can supply the materials that the suppliers demand. The
Products Sector will also be in close communication with Architects to ensure that they
are aware of all of the latest materials.
Source: Department for Business Innovation and Skills Report UK Construction: An economic analysis of the
Sector (July 2013)
22
2.5
The CI is not just an important part of the UK Economy, the industry has worldwide
importance.
organisations and it must be said some of the smaller organisations are now involved in
working internationally. Harvey et.al (1997) identified the importance of the CI as
being a result of rapid growth in the late 1980s. Cartlidge (2013) noted that the CI is a
major player in the Gross Domestic Product (GDP) and that the CI in 2011 had a
turnover of almost 100 billion which equates to almost 8.5% of the GDP. Hillebrant
(1984) noted the net contribution of the industry in 1981 as being 6.4 percent. Harvey
et.al (1997) note the GDP as 6%. The Department for Business Innovation and Skills
Report (July 2013) identified that Construction is one of the largest sectors in the UK
economy and comprises almost 90 billion to the UK Economy. The CI is therefore an
extremely important commodity made up of a range of products, services and
technologies. As shown in the diagram below the UK GDP improved following a long
period of decline.
23
2.6
During the nineteen eighties and early nineteen nineties, the CI had an extremely poor
image. Due to this poor image and in an attempt to deliver value for money, several
reports have been written namely:
1.
2.
3.
4.
5.
6.
Each of these reports highlighted ways of making improvements within the industry.
2.6.1
Following a period of lapse in the CI and several controversial issues, The Latham
Report was commissioned jointly by the Government and the CI, with invaluable
participation of Clients. The report was aimed at reviewed procurement and contractual
arrangements.
24
2.6.2
Following on from Latham the Levene Report was commissioned by the Cabinet
Office to review Procurement and Best Practice in relation to Government Contracts.
2.6.3
The Egan Report Rethinking Construction (1998) was commissioned by John Prescott
on scope for improving quality and efficiency in UK Construction. The Report
identified five key drivers of change that should set the agenda for the CI at large. The
Report proposed that if the UK CI was to improve there needed to be radical change in
the way we build. The Report set objectives that within a 5 year period the CI delivers
its products to its customers in the same way as the best consumer-lead manufacturing
and service industries.
2.6.4
This Report was ordered by the House of Commons. The report was split into three
sections
Procuring.
25
The Report also noted in order to achieve a better construction performance there would
be a requirement to ensure that Better Construction is fit for purpose for a specific
purpose and that it meets the requirements of its end user. This information was
collated by analysing the findings of the Latham, Levene and Eugene.
26
2.6.5
This Report was an extension of Rethinking Construction. The Report covered topics
such as Strategic Direction and Targets, Client Leadership, Supply side Integration and
Integrated Teams. The Report made 21 key recommendations.
27
2.6.6
The Wolstenholme Report reviewed the findings of the reports since Egan and
identified that the need for change was still as strong today as it was in 1998.
A factor
that needs to be considered is that, at the time of publication of the previous reports, the
economy was buoyant whereas 2009 was during a long period of recession.
The Report analysed the blockers to change as Business and Economic Models,
Capability, Delivery Model, and Industry Structure. The Report carried out a
review to establish the benefits to the Industry since Egan 1998.
benefits are shown in the following figure 8.
28
The main
The Report identified key 8 requirements. The report highlighted the key elements for
change in the Industry for Suppliers, The Government and Client as being a new vision
for the Industry based on the concept of the built Environment.
This means
understanding how value is created over the whole life cycle of an asset, rather than
simply looking at the building cost which is only part of the total equation.
29
2.7
During a thirty year period, spanning from the late nineteen sixties to the late nineteen
nineties, the RICS wrote a number of reports each analysing the role of the QS and how
it could adapted and further developed.
1.
2.
3.
4.
RICS (1991) Quantity Surveying 2000 The Future Role of the Quantity
Surveyor
5.
2.7.1
The Research for this Report was carried out by the Quantity Surveying Research and
Information Group (QSRIG) as a result of their research the role of the QS was defined
as working from initial measurement after it had been executed then measuring and
valuing building works before work commenced.
30
2.7.2
The research in RICS (1971) indicated that there was a need for change and that the
profession was becoming concerned with the economic and financial aspects of
construction projects and, as well as carrying out its duties relating to tendering and
contracts along with measurement, it should ensure that necessary control measures are
put in place to protect the client. The results highlighted a need to concentrate on
factors such as population growth, economic measures, political activities, and
increasing abilities of clients and design. Additionally, due consideration should be
given also to technological changes such as the computer and the need for industrialised
buildings. The QS needed to become more familiar with Mechanical and Electrical
Services and Civil Engineering along with diversification into the field of contracting.
There was also a requirement for the QS to become more acquainted with project coordination, environmental economics, cost engineering and production and resources
control.
2.7.3
The research within RICS (1983) was carried out by four study groups set up by The
Quantity Surveyors Divisional Council. Each group was responsible for reflecting on
how the role of the QS should be developed. As a result research, it was identified that
following the previous reports, the role of the QS had further developed into the fields
of manpower planning, resource controls and analysing the effect of time on
construction projects.
However it also emerged that the role needs to be further developed in the areas of
policy making, numerate skills, strategic planning and contracting. The changing role
in relation to political and economic policies is another essential part of the QSs role.
The building procurement function and how the QS should become more involved in
Construction Management, multi-disciplinary working, diversity in procurement total
costs which encompasses the area of life cycle costs were also considered. The Report
indicated that the traditional Bills of Quantities prepared using SMM7 may be side
stepped for a more abbreviated and streamlined document. This was therefore one of
31
the first indications that there was a need for change in the way that Bills of Quantities
are prepared and that SMM7 was outdated.
2.7.4
RICS (1991) comprises of four main areas: changing markets, a changing industry, the
profession in transition and challenges in the 1990s. Research results revealed that the
services the QS would need to be increasingly developed to meet efficient standards.
With the advancement of technology it was widely expected that computer technology
would soon stream line the role of the QS. The introduction of computer assisted
billing and estimating packages signposted Information technology as the way ahead.
During this period there was an increased requirement for Industrialised Building and
the associated processes which would ultimately result in a greater use of performance
specifications the QS would be required to consider and understand the costing of
these buildings.
Mechanical and Electrical Services, Civil Engineering and Contracting, was considered
and it was noted that as this was a particular specialised area, Clients were not
necessarily receiving the best cost advice. Therefore, there was a requirement for the
development of knowledge and specialism in this area. It was suggested that QSs were
given the appropriate additional training to ensure that they could be appointed into
managerial roles with high levels of responsibility.
It highlighted that during the 1980s there was a vast change in the pattern of
construction investment with a change from public to private funded construction work
and as a result QSs had to adapt to changes in both the procurement and organisation of
construction work. In contrast to this, it was noted that Construction companies were
using Specialist Sub-Contractors and that Main Contractors were becoming increasingly
involved in the Design process.
32
2.7.5
RICS (1998) investigated the future role of the QS in relation to changing markets, a
changing industry, and the profession in transition and the challenges in the 1990s. It
was forecasted that there would be key developments in private commercial
development, retail developments, public building, private house building, industrial
building, repair, maintenance and improvements and major infrastructure works. The
report highlighted that the CI was on the brink of major change and therefore there
would be the opportunity of new challenges for the Quantity Surveying profession as a
whole. It was envisaged that the QS would have a much more involved role in housing,
civil engineering and repair and maintenance.
A need for QSs to become more involved in the new geographical markets was
considered in RICS (1998).
requirement for the services of QSs who would evolve in the existing market or
diversify into the new work areas.
Technology were also reviewed and it was identified that several Software programmes
were currently being developed that would be able to replace some of the duties
currently carried out by the QS.
The report focused on the future role of the Contractors Quantity Surveyor (CQS) and
highlighted skills that candidates would be required to have. The tasks that would be
carried out by the CQS included, project strategy work, procurement advice, initial and
detailed cost planning, Bills of Quantities, preparing tender and contract documents,
cost management, final accounts, monitoring work, project auditing / analysis,
employers agent, construction management, dispute resolution specialist, information
manager and facilities management.
33
2.8
The role of the QS is as noted by Towey (2012), unfamiliar to the public. This could
be a result of the various activities carried out by a QS, thus making the role difficult to
define.
The role of the QS is however a role that is familiar within the CI. Towey
(2012) defined the initial role of the QS in the 17th Century as that of measurer,
whilst during the 19th Century the role had evolved whereby the QS was responsible for
the production of schedules which quantified building materials along with plant and
labour. These schedules were forwarded to builders for pricing: the theory behind this
was that all builders when pricing the information based their prices on the same
information thus enabling the tenders to be easily analysed. Morton (2008) confirmed
that the construction of the Houses of Parliament in the 1830s was a great landmark in
the history of the QS, as it was one of the first buildings to be approved of detailed
drawings and a bill of quantities based on them. Traditionally the role of the QS was
to work with the Client preparing tender documents and valuing building works carried
out by the Main Contractor on a development. The QS who carried out this role was
usually heavily involved in measurement known as a Private Quantity Surveyor (PQS).
As a result of improvements in the CI and a need for the Client to achieve value for
money, Main Contractors are more commercially aware than they used to be and, as a
result, the role of the Contractors QS has evolved. The Contractors Quantity Surveyor
(CQS) is responsible for all aspects associated with the running of a building project
from Cost Planning, Estimating, Contract Administration and sometimes Project
Management. Contractors QSs are often called Commercial Managers, and they are
responsible for all aspects of procurement and cost control.
34
2.9
Towey (2012) and Walker and Wilkie (2002) identified that Commercial Managers
within Main Contracting Organisations are responsible for budgets and forecasting;
interim valuations for both the Client and the various Subcontractors; Cost Value
Comparisons; Contracts, certificates and Notices and the preparation of contracts for
subcontractors. The Commercial Manager will also be involved in working with supply
chain procurement, running the project in conjunction with the Project Manager,
Measurement and Quantities, Project Commencement and Project Completion. The
current role of the QS in both the Private Practice and Main Contracting are now more
complex and far removed from the initial role of measurer.
QSs are becoming increasingly involved in the areas as noted in the table below:
Procurement
Routes
Construction
Management
35
Cost Planning
Cost
Preparation of
tender and contract
documents and
appraisals are all key elements associated with the day to day
appraisals
Project
Management
Mechanical and
Electrical
Engineering
36
Construction
Design and
Management
(CDM)
responsibilities
Value Engineering
Estimating
37
2.10
The Standard Method of Measurement (SMM) was first published by The Royal
Institution of Chartered Surveyors in 1922 as a means of providing a uniform basis for
measuring building works and embodying the essentials of good practice. Over the
years this document has been updated and reissued several times. The Seventh Edition Standard Method of Measurement 7 (SMM7) was published originally in 1988 and
revised in 1998. Benge (2009) pointed out that documents, prepared using the Standard
Method of Measurement documents, were aimed at preparing Bill of Quantities to
obtain tender prices.
preparing Cost Plans and Cost Estimates and therefore QSs tried to adapt the principles
of the SMM which invariably lead to inconsistencies. For this reason, Clients were not
entirely confident that the costs produced were accurate. Benge (2012), pointed out that
SMM has served the industry since 1922 and over the years has been revised 7 times,
the last major revision being in 1998. Since then construction methods have changed
and coupled with the Clients increased requirements for best value have suggested that
it is time for change.
On 1st January 2013 SMM7 was superseded by NRM2 and all future documents should
now be prepared using NRM2.
SMM7 has 22 items noted for splitting up measurements whereas NRM2 has 41.
NRM2 should allow a more detailed breakdown of the respective elements of the
building.
The following table compares the contents of SMM7 with NRM2. From this table it is
apparent that SMM7 can no longer meet the requirements that QSs require when billing
current buildings.
38
39
As noted by Earl (2006), during the initial development stage of NRM, the Steering
Group identified that Quantities are, without doubt, the best control of cost on a
project. The group also identified that Somebody has to quantify the building works
and the best person to do this is the QS. During the early stages of the development of
the NRM suite it was noted that members continue to use SMM7 and also nobody uses
measurement anymore.
40
2.11
The NRM Suite of Documents showing the interaction between the RICS New Rules of
Measurement and the BCIS Standard Form of Cost Analysis
The New Rules of Measurement is a suite of documents set up by the RICS and a
Construction Steering Group. These documents are made up of three volumes:
Volume 1: Order of Cost Estimating and Elemental Cost Planning First Edition
Published March 2009. Amended to Order of Cost Estimating and Cost Planning
for Capital Building Works - Second Edition Published 2012.
Volume 2: Construction Quantities and Works Procurement Published 2012.
Volume 3: Maintenance and Operation Cost Planning and Procurement. Expected to be published January 2015.
41
2.11.1 New Rules of Measurement Volume 1 Order of Cost Estimating and Cost
Planning for Capital Building Works NRM1
This document provides rules of measurement for the preparation of order of cost
estimates and elemental cost plans. The following diagram shows how the cost plan
can be broken down into the respective Five elements of Substructure, Superstructure,
Internal Finishes, Fittings, furnishings and equipment and Services. Each element can
be further broken down into sub elements thus providing a fully detailed breakdown of
costs.
Group element
0 Facilitating works
Element
0.1 Toxic/hazardous material removal
0.2 Major demolition works
0.3 Temporary supports to adjacent structures
0.4 Specialist
und ks
0.5 Temporary diversion works
0.6 Extraordinary site investigation works
1 Substructure
1.1 Substructure
2 Superstructure
2.1 Frame
2.2 Upper floors
2.3 Roof
2.4 Stairs and ramps
2.5 External walls
2.6 Windows and external doors
2.7 Internal walls and partitions
2.8 Internal doors
3 Internal finishes
3.1 Wall finishes
3.2 Floor finishes
3.3 Ceiling finishes
4 Fittings, furnishings and equipment 4.1 Fittings, furnishings and equipment
5 Services
5.1 Sanitary installations
5.2 Services equipment
5.3 Disposal installations
5.4 Water installations
5.5 Heat source
5.6 Space heating and air conditioning
5.7 Ventilation systems
5.8 Electrical installations
5.9 Fuel installations/systems
5.10 Lift and conveyor installations
5.11 Fire and lightning protection
5.12 Communication, security and control systems
5.13 Specialist installations/systems
5.14 Builde s work in connection with services
Figure 12: Logic and arrangement of the cost data structure used by NRM1
and the updated BCIS SFCA Levels 1 and 2 Extracted from RM1 Source
Construction Journal April-May 2012.
42
As noted in Earl (2012) NRM1 has been recently been updated in line with comments
from practitioners. Eight key changes were made Benge (2012) highlights these key
changes. These changes were made to simplify and augment certain aspects of the rules.
Changes were also made to strengthen the link between the method of measurement and
how contractors procure works.
Information Services (BCIS) Standard Form of Cost Analysis (SFCA) was updated in
line with the NRM Suite.
43
Figure 13: The RICs formal cost estimating and cost planning stages in context
with the RIBA Plan of Work and OGC Gateways (adapted for the RIBA Outline
Plan of Work 2007.
44
The main difference between SMM7 and NRM2 according to Benge (2012)
that NRM2 rules for quantifying building works items now reflect current construction
practices.
including defining the information requirements and dealing with the quantification of
non-measureable work items, contractor-designed works and risks. Benge (2012) also
gives a review of how NRM2 deals with Preliminaries; non-measureable works such as
provisional sums and Contractor-designed works; risks works to be carried out by
statutory undertakers; overheads and profits; credits and other pricing considerations
such as price fluctuations; directors adjustment; day works; VAT. Benge (2012) further
reviews how NRM2 has been devised to consider the implications of BIM. NRM2 can
be utilised and developed when preparing a bill of quantities which includes bespoke
items.
An overview of NRM2 was detailed by Davidson (2012) and it was highlighted how it
should satisfy the needs of different parties within the CI. Davidson (2012) also points
out that a firm understanding of construction technology and an ability to measure
construction works are two core skills that QSs need if they are to properly provide
construction cost advice to clients.
comments that SMM was vastly out of date and did not suit the requirements needed
today by QSs if they are to offer a best value service to their Clients. It was also
highlighted how the QS and Construction Professional Group that were set up in 2003
to review Construction Measurement.
throughout the document for extra over items which meant that a QS had to trawl
through the drawings and tediously all of the items, whereas in NRM2 these items are
all deemed to be included. Davidson (2012) describes the main benefit of NRMs that
should allow any QS to measure any type of construction work. There is also an
example of how the NRM2 sets out bill items under five main columns.
45
Davidson (2012) details several main comparisons between NRM2 and SMM7. The
main changes detailed include: - NRM2 has a list of items within the rules section
which are detailed as being Mandatory in preparing a Bill of Quantities the QS must
fully describe the work element so that the tenderer can fully price the work item.
NRM2 allows for composite descriptions to be included.
provisional work is more clearly defined. A Works Section for off-site manufacturing is
included. Working space is now deemed to be included when measuring excavations.
Earthwork support is no longer measurable unless the use is not left to the discretion of
the contractor. In-situ concrete is now categorised into vertical and sloping. Common
rules apply to types of masonry. In essence, the works items have all been up dated to
reflect current working methods on site. The Estimator when pricing a BOQ prepared
using NRM2 should, in theory, be able to prepare a more cost effective tender as the
descriptions of works within the BOQ should include much more detailed breakdowns
and descriptions of works.
Davidson (2012) notes that M&E services are still described by their differing systems
but the measurement is simplified, concentrating in principal elements. This change
makes it much easier for M&E Services works to be both billed and priced. Using
SMM7, if a QS was billing a heating installation, they would be required to measure
and quantify every metre of copper pipe, bends, tees, insulation etc. along with each
individual radiator and valve to be measured and the Estimator would be required to rate
these accordingly.
46
NRM3 is currently being developed and is due for publication early in January 2015.
The prime function of the NRM suite of documents is defined by Green (2013) as to
provide consistent rules and guidelines for the quantification and measurement of
capital, maintenance and renewal works.
Klein (2007) highlighted how the construction sector has the reputation of making
lowest initial costs the basis of investment decisions, but future procurers of buildings
cannot afford to ignore sustainability requirements. Whole life cycle costing is a
phenomenon that needs to be considered when costing a building. Ashworth et. al
(2007) defines whole life cycle cost plans as a combination of initial, maintenance,
replacement, energy, cleaning and management costs.
Green (2013) pointed out how links from costs plans produced using NRM1, can be
made to the maintainable elements of a building in NRM3. Blackburn (2013) Reviews
the potential political impact of NRM3 on the built asset cost maintenance. The paper
notes how, due to the current economic climate, the Government has reduced budgets
for both Public Construction and Repair and Maintenance. There are strong indications
that the Economy is finally in a state of recovery and therefore the Government should
hopefully be in a position to review budgets and for construction works to commence.
The whole life cycle cost of these buildings could be reviewed and implemented thus
ensuring that the projects are cost effective.
47
2.12
The RICS define the The RICS Quantity Surveyor and Construction Standards as a
comprehensive suite of documents that defines good technical standards for QS and
Construction Professionals. The documents are written as RICS guidance notes and are
aimed at providing advice to RICS members on aspects of their work.
Where
procedures are recommended, they are intended to represent best practice. These
documents are an invaluable source of reference for QSs, particularly for Students
preparing for their Assessment of Professional Competence when read in conjunction
with RICS Pathway to qualifying in Quantity Surveying and Construction (2008) would
be an invaluable source of material.
2.13
When considering the future role of the QS, it is necessary to briefly mention Building
Information Modelling. According to the RICS (2014) greater automation of quantity
surveying functions would actually increase the relevance of the profession. Withers
(2014) stated that BIM will enhance rather than damage.
prepared by the RICS to establish How Building Information Modelling (BIM) can
support the New Rules of Measurement (NRM1). The report analysed two main areas:
BIM and its application in cost estimating and cost planning and NRM1 for cost
estimating and element cost planning. The report also includes a Technical review for
BIM based estimating tool to support NRM.
measurement and cost estimating is still at its early stages and that supporting the
NRM1 format through BIM based estimating is the way forward. QSs need to consider
how the quantity of information in the BIM model can be used in cost estimating and
planning.
48
2.14
Summary
This chapter has reviewed current literature in the form of Journals, Industry Reports
and Textbooks relating to the future role of the QS and their future position within the
CI. It is apparent from the reports that, since the publication of the first RICS report in
1967 the role of the QS has been vastly developed from that of Measurer. The QS is
involved in a wide variety of roles and specialisms thus making the role one that is
extremely interesting and highly adaptable.
Cartlidge (2013) noted that the principle message behind the Industry reports is that the
CI, as a whole, needs to concentrate on modernisation, innovation and mass
production. For a construction project to be a complete success, there needs to be
greater co-operation between all parties, As previously noted, they are all links in the
chain and therefore need to work together to ensure the ultimate aim of Client
satisfaction and Value for Money are achieved. The nature of the Client has also
changed as they now expect value for money.
commercially aware.
Although it is still in its early stages, it would appear that if utilised correctly, The New
Rules of Measurement should have a positive effect on not just the role of the QS, but
on the industry as a whole. The documents should assist in greater cost control in all
areas of the building as more accurate cost plans can be prepared following guidelines
set out within the rules something that was not available in SMM7. There is also
greater scope for measurement and the whole life of the building from inception to
demolition can now be considered.
literature reviews have been carried out by parties either associated with its
implementation or those closely associated to it and therefore the findings from
Industrial research could put a completely different perspective on this.
49
3.1
Introduction
The aim of this chapter is to identify the data gathering methods carried out in order to
research the objectives of this dissertation as set out in chapter 1. This chapter will
describe all methods of research carried out, and the reasons for using each method.
3.2
Research Aims
In order to analyse the objectives effectively it was necessary to carry out research
within both the Construction Industry and Education.
3.3
There are two main types of data collection these being qualitative and quantitative.
The type of data selected depends on the information that the researcher is trying to
obtain as a result of their research. Although these data collections types are different
they can be linked as a result of research and then the data collection can sometimes fall
into both categories.
50
3.3.1
Qualitative Data
Qualitative Data is data that does not present itself in numerical format and is obtained
from real life experiences.
subjective in nature.
categories during the process of the study. Qualitative data is in theory harder to obtain
as it involves carrying out a series of studies.
3.3.2
Quantitative Data
Quantitative Data is data that is calculated in the form of statistical analysis. Naoum
(2009) describes quantitative data as being objective in nature, defined as an inquiry
into a social or human problem, based on testing a hypothesis or a theory composed of
variable, measured with numbers, and analysed with statistical procedures, in order to
determine whether the hypothesis or the theory hold true.
3.4
Primary Data is raw data that has been sourced by the researcher whereas Secondary
Data that has been sourced by others.
3.5
Research Methods
Research was carried out in the form of a series of Questionnaires, and Interviews. Two
separate questionnaires were carried out, to test the findings within the Industry in
relation to the main objectives of this dissertation. The first questionnaire was aimed at
the Quantity Surveying Profession and the second at Software Companies.
51
3.6
Questionnaire 1
The questions contained within the first questionnaire were aimed at obtaining and
finding the views of the Quantity Surveying Profession relating to the main objectives
of this dissertation.
The questions were all closed questions and the responses required
were chosen from a list of several options. The questions were structured in this way
so that specific areas could be analysed. The questionnaire comprised of 16 questions,
with 1 question having 3 parts and 1 question having 2 parts, there was 20 participants.
The first 3 questions in the questionnaire were aimed mainly at obtaining further
information on the participants. These questions cover topics such as which sector of
the industry they belong, what professional bodies that they belong to and how long
they have been a QS. The next 8 questions are all associated with SMM7 and NRM.
These questions were all included in order to establish the Professionals opinions
relative to measurements, SMM7 and NRM2.
3.6.1
The Parties involved in the Quantity Surveying questionnaire were carefully chosen in
order for there to be a wide spectrum of responses. The parties who carried out the
questionnaires comprised of eight candidates who are currently employed by Main
Contractors, four candidates who are currently employed as Consultants and finally
eight candidates who are currently employed in Private Practice. The number of years
experience of the parties was also an important factor as the dissertation is looking at
the roles of the QS over a 40 year period it was prudent that a number of the participants
had as much experience as possible, 45% of the participants have over 25 years
experience with 30% having 40 years. The least experienced candidate had 1 years
experience.
52
3.7
Questionnaire 2
The questions contained within the second questionnaire were aimed at clarifying
whether or not the respective software companies have implemented changes, to ensure
that the professionals can achieve the required objectives, there were 4 participants.
3.7.1
The Parties involved in the software questionnaire were chosen from what is currently
thought to be the most popular Quantity Surveying and Estimating Packages. The
questions again were open ended. There was initially 6 questions, however if parties
could answer questions 1 4 then there was no requirement to complete questions 5 and
6. All parties fell into this category.
3.8
Interviews
After analysing the results of the questionnaires it was apparent that further research
was required in certain areas. Two interviews were carried out with the view of further
exploration of some of the questions asked within the Questionnaire.
The interviews
would enable the participants to give their viewpoints on the topics. The interviewees
did not take part in the Questionnaire.
3.8.1
Interview Participants
The Participants both had 20 years experience and they were specifically chosen so that
they could offer their particular viewpoint on the research aims and objectives. The
Participants were from different sectors of the Industry.
approximately 30 minutes and both parties were given a copy of the questions that they
would be asked a week before the interviews took place. Both parties wished to remain
anonymous. The analysis of the results notes only the main points taken from the
53
interview the items noted in the results are therefore not purely a transcript of the
interviews.
3.9
Telephone Interviews
In order to establish what the Educational Establishments are doing in relation to the
implementation of NRM it was necessary to carry out short telephone conversations
with the Quantity Surveying Faculty Course Leaders to establish what changes to the
structure of the BSc Quantity Surveying Degree Course.
3.9.1
In choosing the participants to take part in the telephone interviews, it was decided that
the best person to speak to would be the Quantity Surveying Faculty Course Leader as
they would have the best insight into the content of the BSc QS Course. There were 2
participants in these interviews. 1 participant was based in Edinburgh the other was
based in Reading.
54
4.1
Introduction
The aim of this chapter is to analyse the data collected and to relate it to the key aims
and objectives of this dissertation.
4.2
The Questionnaire
The findings of each of the following questions are detailed below. There were a total
of 20 participants all parties answered all questions.
55
4.2.1
Question 1
Question 1:
Which sector of the Industry do you belong?
40%
40%
20%
Private Practice
Consultant
56
Main Contractor
4.2.2
Question 2
Question 2 was set up in 2 parts and aimed at establishing the mix of participants in
relation to their memberships of Professional Bodies, the participants were given a list
of the main bodies and a section to complete any others not noted. The first part of the
question highlighted that The Professional Bodies that participants belongs to were The
Royal Institution of Chartered Surveyors (RICS), The Chartered Institute of Builders
(CIOB) and the Association of Project Safety RMaPS), the results show that 60% (12
people) were members of the RICS, 15% (3 people) were from the CIOB, 5% (1
person) was from the RMaPS and the remaining 20% (4 people) do not belong to any
Professional Bodies. The second part of this question asked the participants to confirm
what level of membership that they currently had the results showed that from the
60% (12 people) of RICS members 15% (3 people) were student members, 30% (6
people) were Full members and 15% (3 people) were Fellow members of the RICS.
From the 15% (3 people) who were members of the CIOB, 5% (1 person) was an
incorporated member and 10% (2 people) were Full members. From this it can be seen
that the participants taking part in the Questionnaire are all highly qualified in their
chosen area.
57
T he R oy a l
Ins ti tuti on of
Cha rtered
S u r v e y o r s ( R IC S )
5%
5%
5%
10%
15%
15%
15%
20%
30%
60%
T h e C h a r t e r e d T h e A s s o c i a t io n o f
Ins ti tute of
Project S a f ety B ui l ders ( CIOB )
R Ma PS
Professional Bodies and membership levels.
58
N one
4.2.3
Question 3
Question 3 was aimed at establishing the experience of the participants in relation to the
number of years that they have worked as a QS. The results show that 5% (1 person)
had under 5 years experience, 15% (3 people) had between 6 and 10 years experience,
15% (3 people) had between 11 and 15 years experience, 20% (4 people) had between
16 and 20 years experience, 5% (1 person) had between 26 and 30 years experience,
10% (2 people) had between 30 and 35 years experience and 30% (6 people) had 36-40
years experience. From this it can be seen that the parties taking part all have a vast
amount of experience.
59
4.2.4
Question 4
Question 4 was aimed at establishing whether or not the participants were familiar with
SMM7. The results of this question show that 100% (20 People) all confirmed that they
are familiar with SMM7.
60
4.2.5
Question 5
This question was included to establish how often the participants use SMM7. The
result of this question is that 5% (1 person) uses SMM7 on a daily basis, 20% (4 people)
use SMM7 on a weekly basis, 15% (3 people) use SMM7 on a monthly basis, 55% (11
people) use SMM7 occasionally and 5% (1 person) never uses it.
61
4.2.6
Question 6
This question was included to establish whether or not participants were familiar with
NRM. The results of this question was that 55% (11 people) were familiar with NRM
and 45% (9 people) were not familiar with NRM.
62
4.2.7
Question 7
This question was asked to find out the participants opinion on the promotion of NRM.
25% (5 people) said yes, 75% (15 people) said no.
63
4.2.8
Question 8
This question was asked to establish how often the parties use NRM1. 5% (1 person)
responded weekly, 15% (3 people) responded occasionally, and 80% (16 people)
responded never.
4.2.9
Question 9
This question was asked to establish how often the parties use NRM2. 5% (1 person)
responded monthly, and 95% (19 people) responded never.
The results to question 8 and 9 have been entered into the same bar chart to show the
comparison between use of NRM1 and NRM2.
4.2.10 Question 10
This question was asked to ascertain what method of measurement that participants
prefer.
chose The Civil Engineering Method of Measurement (CESMM), and 20% (4 People)
chose Standard Method of Measurement 6 (SMM6).
65
4.2.11 Question 11
This question was asked to establish the Professions viewpoint as to whether or not they
though that NRM would re-invent the role of the QS. Interestingly this question was
the only question for which there was not a 100% decisive response. 5% (1 person)
responded no, 60% (12 people) responded no, 25% (5 people) didnt know and 10% (2
people) said that they didnt know.
66
4.2.12 Question 12
This question was asked to obtain participants opinions on BIM and whether it would
detract from the importance of NRM. 30% (6 people) said yes and 70% (14 people)
said no.
67
4.2.13 Question 13
This question set up in 3 parts and was aimed at establishing the activities of the
participants in relation to cost planning, measurement and whole life cycle costing and
how often they carry them out.
Part 1 Costing Planning 75% (15 people) answered yes and 25% (5 people)
answered no. In relation to how often cost planning is carried out 15% (3 People)
responded daily, 35% (7 people) responded weekly, 20% (4 people) responded monthly.
Part 2 Measurement 100% (20 people) answered yes. In relation to how often cost
planning is carried out 40% (8 people) responded daily, 30% (6 people) answered
weekly, 15% (3 people) answered monthly, and 10% (2 people) answered rarely.
Part 3 Whole Life Cycle Costing - 40% (8 people) answered yes, 60% (12 people)
answered yes. In relation to how often whole life cycle costing is carried out 5% (1
person) answered daily, 5% (1 person) answered weekly.
Question 13: Does your brief include for carrying out the
following activities?
120%
100%
100%
80%
75%
60%
60%
60%
40%
40%
40%
35%
30%
25%
20%
0
10% 25%
20%
15%
15%
5%
5%
5%
15%
10%
0%
10%
0%
0%
Yes
No
Cost Planning
Daily
Weekly
Measurement
Monthly Occasional
Rarely
Never
4.2.14 Question 14
This question was asked to establish participants viewpoint on whether they thought
that there was still a requirement for a traditional bill of quantities in construction
projects. 5% (1 person) answered no and 95% (19 people) answered no.
69
4.2.15 Question 15
This question was asked to establish participants viewpoint on whether they thought
that the role of the QS had changed in recent years. 20% (1 people) answered no and
80% (16 people) answered yes.
70
4.2.16 Question 16
The first part of this question was asked to ascertain the use of computer technology.
Participants were asked whether or not the used any computer software in their daily
activities. 25% (5 People) answered no and 75% (15 people) answered yes.
The second part of this question was asked to relating to which software programmes
are currently being used.
participants use several programmes. 5% (1 person) uses Conquest, 15% (3 people) use
Word, 10% (2 people) use Masterbill, 5% (1 person) uses QS Elite, 5% (1 person) uses
Candy, 75% (15 people) use excel, 5% (1 person) uses Sage, 15% (3 people) use
Vector, 5% (1 person) use Auto Cad, 5% (1 person) use Ripac, 10% (2 people) use True
View, 5% (1 person) uses Blue beam, 5% (1 person) uses Cato and 10% (2 people) use
QS Script.
71
80%
60%
40%
20%
15%
5%
10%
15%
5%
5%
5%
5%
5%
10%
5%
10%
5%
10%
0%
Programmes
The third part of this question was aimed at identifying which of the programmes
noted in 16b include software specifically for the use of NRM. The result of this
questions can be summarised thus out of 15 programmes 79% (12 Programmes)
did not include NRM, 21% (3 programmes) included NRM. Out of these 3
programmes and equating back to the 21% figure Conquest, Masterbill and Vector
all account for 7% each.
72
73
4.3
Interview Results
4.3.1
Question 1
Interviewee 1
Responded that they had been a QS for 20 years and that they had decided to become a
QS more by accident than anything else. They had been employed within a Company in
the late 80s, working as a Civil Engineering Technician, and as result of the Recession,
their work had dried up so they started to help the QSs out by to start with filling out
day works sheets and as they were familiar with construction and drawings carrying out
a few measures. From this they obtained a job with a Contractor and started a distance
learning course in order to obtain their BSc.
Interviewee 2
Responded that they had been a QS for 20 years and that they had become a QS as their
father was a Partner in a large QS Practice and they always thought that his work
sounded very interesting so they followed in his footsteps and after leaving school
enrolled in a University and obtained their degree.
74
4.3.2
Question 2
Interviewee 1
Responded that they working for a Main Contractor and that they had always worked in
this Sector. They also added that it was the nature of the Beast as to what sector a QS
worked in. If you enjoyed working on the coalface and getting your feet dirty then
Contracting was for you.
booted then Private Practice was for you. They added that they found Contracting, a
very challenging and rewarding role and that they have found that the role of the CQS
has been vastly developed over the last 10 or so years.
Interviewee 2
Responded that they worked in Private Practice for a total of 19 years out of the 20 that
they had been working. They had a short spell of 1 year working for a Ground works
subcontractor. They had 5 years experience working for a Private Practice when a
Groundworks Contractor approached them and asked them to work with their
Company. They gave it due consideration and decided to give it a bash, however, they
soon realised that they were a bit out their depth and opted to go back to Private
Practice.
75
4.3.3
Question 3
Interviewee 1
Responded that they preferred SMM7, however, the Method of Measurement used
depended on the type of Contract that they were working on and the way that it was
billed.
The majority of their works were carried out using SMM7, however if they
were working on a Contract that was Civil Engineering orientated then they use
CESMM. They further added that their organisation had recently priced and secured a
contract that was measured and priced using NRM 2.
Interviewee 2
Responded that they preferred SMM7 but this was solely because it was the document
that they were most familiar with. They used CESMM on a very rare occasion. The
Trainees in their office were starting to ask if they could use NRM as the Universities
were implementing this in their measurement studies. They added that the Partners all
felt that it was possibly time for change but stated that as humans we are all slightly
scared on change but sometimes change is for the better.
76
4.3.4
Question 4
Interviewee 1
Responded by confirming that interestingly enough they have recently prepared a tender
and had the Contract awarded for a project based entirely on NRM.
When the
document arrived in the office it was treated with a great deal of scepticism, however on
further scrutiny it was noticed that the layout of the document made it much easier to
submit separate trade sections to both Suppliers and Subcontractors. We found that all
parties that we asked to price returned their tenders. Also when it got to the pre-tender
award meeting with the Client and the Design Team is was easier to find respective
sections that the Client was asking for clarity on as all the elements were grouped
together so we were not jumping from one section of the bill to another. When it came
to procurement it was relatively easy to again split up all the items into the various
packages. The package that we found the best improvement in was the Mechanical and
Electrical Installations we usually have problems getting returns for these packages
when the document is based on SMM7 due the vast number of pages that are required to
be filled in however, the NRM bill made this much easier. We would therefore say
with regards to the NRM dont mock until you try.
Interviewee 2
Responded that they had used NRM 1 for cost plan purposes on several occasions but
unfortunately they had not used NRM 2 for any measurement. The main reason being
that the documents that they had prepared recently were all based around the use of
Architects drawings and a National Building Services (NBS) Specification. The layout
of the NBS is currently not conducive with NRM it is geared up for SMM7, a situation
that is obviously are NRM2 is now supposed to be implemented in practice.
77
4.3.5
Question 5
included within cost advice. Do you think that information given to Clients could
be improved and if yes how would you make improvements?
Interviewee 1
Responded that accurate cost advice is very important. Market testing helps provide
accurate cost information. However it depends on the information available at the time
that they do the cost plan. Cost advice in the form of an estimate or feasibility study is
generally carried out according to the QSs experience. In terms of the unit costs, there
is no set way of assessing items due to the fact that cost books are often not in date and
the largest factor is often the economy. The human factor of a QS will not be replaced
by BIM or other automated ways of carrying out the duties.
Interviewee 2
tailored to the Clients needs and understanding. It is imperative that clients, are made
fully aware of information on which costs are based. Clients often feel that costs given
are totally accurate, and if not given the full basis on which they are calculated may not
fully understand the risk of cost changes. A range of prices should be given reflecting
the quality of information available.
78
4.3.6
Question 6
Interviewee 1
Responded that all parties need to be more cost aware both in construction costs and
cost in use. Engineers and Architects need to get off the fence when they over specify
and expect the contractor to sort it all out with no cost adjustment. There should be a
greater emphasis on value engineering and value management techniques along with
early contractor involvement. Their needs to be more apprenticeships. Standardisation
reduction of VAT to encourage growth.
Interviewee 2
Responded that the abolishment of fees scales has made the industry too competitive in
terms of hours spent on jobs. This has reduced the amount the time and care spent by
consultants in carrying out their duties. Consultants often work to a set number of hours
rather than work until the job is carried out competently. The Consultant QS also needs
to improve at dismissing tenders which are not feasible and put the client at risk of their
contractor going into liquidation. Many public bodies award tenders on price alone, this
is not conducive to value for money in many cases. Clients need to be better educated
to appreciate that cut price fees are not in their best interest.
79
4.3.7
years?
Interviewee 1
Responded that the role is more collaborative and we tend to do all the leg work, the old
skills of doing a full bill of quantities and done to a high standard has been lost, this
means that clients are less likely to see the benefit of using a QS. There are not enough
traditional methods in use now, and this has led to poorer cost control and the resultant
poor opinion of the general public at construction cost control. The role of the QS has
swung to serving Contracting organisation. Need to make sure that basic functions are
properly handled more site visits and less desk top exercises with much more involved
co-ordinating design team information to establish information for Contractors to price.
Interviewee 2
Responded that it is now a much more varied role. Emphasis on the QS measuring a
full bill of quantities, preparing cost reports and finalising a final account are gone.
Nowadays, QSs are required to diversify into project management, contracts
management, CDM co-ordination and contract administration.
conditions over the last 5 years QSs are not involved in carrying out due diligence
roles. There is also much more emphasis on managing costs rather than recording costs.
80
4.4
Software
A questionnaire was submitted to several software companies the results of which are
noted below.
4.4.1
SMM7?
4.4.2
using NRM?
81
4.4.3
introducing NRM?
The result of this question showed that 25% (1 Company) said yes, and 75% (3
Companies) said no.
4.4.4
82
4.5
Education
Two brief telephone conversations took place with Quantity Surveying Faculty Course
Leaders within two Universities one in England and one in Scotland
Both of the Universities confirmed that from the start of teaching year 2014-2015 they
will be teaching NRM2 as there method of method. They will both provide examples of
the CESMM and SMM7 but they would no longer be taught as part of either the BSc or
the MSc courses. The Universities both confirmed that there staff had all been on
courses to familiarise themselves with the new method of measurement.
83
Introduction
The aim of this chapter is to evaluate the findings of research carried out in the literature
review, the questionnaire and the interviews. This evaluation will cover the same
headings as those utilised within the literature review.
5.02
The Construction Industry, the various Industry Reports and the RICS
Reports.
The literature review identified several industry reports such as The Latham Report
Constructing the Team (1994), The Egan Report Rethinking Construction (1998),
Modernising Construction (2001) National Audit Office, Egan Report Accelerating
Change (2002) and The Wolstenholme Report (2009). Each of these reports were
reviewed and the main recommendations established. It was clear from reviewing these
reports that the Construction Industry was fragmented.
importance of the team. Closer working relationships between all parties from within
the Design Team, and the Main Contractor should have a positive impact on the
outcome of construction projects. Many Contractors are specialists in certain building
types, construction methods etc., and it would be useful to have their input early on in
the project to collaborate with the designers for build ability and value engineering.
However, without the Client there would be no Construction Product. The Client is an
important part of the Construction process, however, it could be argued that all of the
construction professionals involved in the project both before construction and during
and the Contractor carrying out the works are of equal importance.
However, it has is evident that, legislation has overridden cost savings by Latham i.e.
the integration of environmental regulations in the Building Regulations, requirements
for Life Cycle Costing, European Union Procurement rules etc. have all driven costs
upwards. Legislation will continue to introduce uncertainty regarding price into the
construction industry.
84
2014. This coupled with the emergence from recession will make costs difficult to
predict. Reduction of Government interference would help to stabilise costs, making
costs more predictable. However, the reality is that the Government will continue to
interfere with markets and legislation. It was noted that the questionnaires did not
include any questions relative to the CI therefore the interviews included a question that
specifically asked for their opinion on what changes needed to be made within the CI.
Interviewee 1 mentioned cost awareness, over designing, value engineering, value
management,
and
earlier
contractor
involvement,
more
apprenticeships
and
The reports carried out by the RICS all highlighted factors which would influence
change. The literature pointed out that population growth was expected to have a vast
impact on the role of the QS as it predicted that the population would increase to 70
million, and as a result, there would be a requirement for new infrastructure. With the
prospect of the United Kingdom joining the common market, there was an expectation
that there would be considerable economic growth, not just within the United Kingdom,
but also form other European Countries. Political intervention, resulting from selfregulation by professional bodies, could also have a profound effect on the role of the
QS as there was an expectation that there was about to be an emergence of more
sophisticated Clients.
It was predicted that Clients would become more knowledgeable, expecting value for
money and greater efficiency. Clients would therefore expect an enhanced service and
therefore the QS would have a greater role in ensuring that the Client expectations are
met. Design was identified as a factor that it was expected would soon need to be
covered by the QS. From the viewpoint of design it could be that equal and approved
products would need to be considered from a cost point and, if the QS was unfamiliar
with design and alternative products, then they would soon be at a disadvantage. In
85
essence, this could have a detrimental impact on cost consideration and at a time when
increasingly clients were insisting on value for money. The questionnaires and the
interviews highlighted that most of the participants had extensive working knowledge of
the industry. The questionnaires included a question relating to whether or not the role
of the QS had changed in recent years 80% of the participants answered yes. These
changes could be as a result of changes within the CI and the RICS Reports which
regularly review the role of the QS.
5.03
The literature review detailed the role of the QS to be one covering a wide spectrum of
activities. Within the questionnaire there was an opportunity to investigate this situation
further, points could also be taken from the outcome of the questionnaire and developed
further in the interview. Interviewee 1 had worked for a Contractor for 20 years, it was
noted that their role had evolved considerably over the last 10 years. The role of the
CQS is an extremely commercial one.
The role of the Private Practice QS has also changed considerably, clients are now more
commercially aware along with the CQS with whom the Private Practice QS has to
negotiate with on several commercial aspect of the construction project.
Computer technology has had a considerable impact on the role of the QS. New IT
hardware and software make the QSs job easier and as a result become more efficient.
The questionaries identified that the participants used a variety of software packages to
assist them with their daily activities. The software companies that took place in their
own questionnaire all confirmed that they have made the necessary changes to their
programmes to ensure that NRM can be implemented. Computers make the QSs role
much quicker and accurate the QS no longer has to add up long lists of nos on a
calculator.
The literature, questionnaires and interviews have all identified that measurements and
cost advice are two of the key roles of the QS. Cost advice covers a wide variety of
areas.
It is has become ever more apparent that the QS has to fit in when and wherever
86
they are needed, as a result this changes the type of things that they do but they adapt to
survive.
5.04
The literature reviewed in relation to the methods of measurements both SMM7 and
NRM both steered the writer into thinking that the best way forward was to use NRM.
The questionnaires highlighted that NRM was not really a very welcome addition for
the QS to have to put into practice. It must be noted that one of the interviewees stated
that their Organisation had received a tender to price using NRM2. The project was
consequently awarded. The interviewee confirmed that the works sections for NRM2
made it much easier to split up the various work packages. The interviewee was
extremely surprised as to how much easier their role was on their new contract.
As per the
literature review NRM 1 was implemented to assist in the preparation of cost effective
cost plans. 75% of the participants noted that cost planning is part of their work
activities. However, when asked how often NRM1 was used the result was 5% weekly
and 15% occasionally, therefore 55% of the cost planning activities are not calculated
using NRM1. If cost plans are not being used to prepare cost plans it has to be
considered as to why NRM2 would be used to measure the building if it becomes a live
contract.
The results of the questionnaire showed that all participants were familiar with SMM7,
as the document has been in use for a considerable amount of years, then this result was
not surprising. What was surprising that when asked if measurement was part of the
participants activities, there was a 100% yes response, 40% of which carried out this
activity on a daily basis with 30% on a weekly basis and 5% on a monthly basis thus
showing that 75% of the participants carry out measurement within a monthly period,
however, when asked how often they use SMM7 only 5% carried this out on a daily
basis, 20% on a weekly basis and 15% on a weekly basis thus equating for 40% of the
participants. Therefore the same question was asked in relation to NRM 2 and only 5%
87
of the participants claimed to use NRM 2 on a monthly basis. Calculating the results of
SMM7 and NRM2 shows that a total of 45% of participants use a combination of
SMM7 and NRM2. The question therefore that needs to be asked is what method of
measurement is used to equate for the other 30% of measurement that was claimed as
being carried out. The participants were asked which method of measurement had they
preferred again, the results were interesting. 5% noted CESMM, 70% noted SMM7,
5% noted NRM2 and 20% noted SMM6. SMM6 has not been the recognised method of
measurement since 1988. It could be said that if QSs are still using a method of
measurement that was supposed to go out of practice in 1988 then the question needs to
be asked, what is the possibility of these parties changing to NRM2?.
It has been noted previously that the participants in the questionnaires were all highly
qualified individuals, 60% of which are members of the RICS.
It is therefore
concerning that 55% of participants claim not to be familiar with NRM and 75% noted
that the RICS have not done enough to introduce the NRM. The RICS Journals all
include articles on NRM, these members will all receive a copy of these journals, it is
apparent that they appear to be not reading them.
When asked if the New Rules of Measurement will assist in the re-invention of the role
of the QS 60% stated yes and 5% stated no, 25% stated dont know and 10% stated no
comment. This indicates that there is an element of doubt in the minds of 35% of the
participants.
In relation to NRM3 the literature notes this as being relative to the measurement of
capital, maintenance and renewal works.
identified that 40% of the participants currently undertaken Whole Life Cycle cost
exercises.
88
Chapter 6 Conclusion
6.01
Introduction
The aim of this chapter is to review the main objectives set out in Chapter 1, the
research gathered in the literature review, and evaluation of the data and summarise
whether the main objectives have been achieved.
6.02
Objective 1
Analyse the findings of the RICS and Industry reports and establish how the role of
the QS has had to change due to current market trends and changes in legislation.
It is apparent from the research that the Construction Industry is in need of change,
however, reports such as Latham, Egan, Levene and Wolstenholme have taken years to
integrate and have really only had limited impact. The RICS are regularly reviewing
the role of the QS as change within the industry as a whole is happening all the time.
The QS as a professional has had to, and will need to continue to adapt with these
changes and new construction methods are being developed all the time.
Decisions with interviewee No 1 clearly demonstrated that the role of the CQS has been
developed into one that is of extreme value and importance to the Main Contractor.
Clients and Contractors both strive for greater value for money.
89
6.03
Objective 2
Review current academic literature and establish why the role of the QS has been in
crisis for a number of years and to identify the ways in which the role of the QS has
been vastly diversified over the last few years and therefore identify the current role of
the QS.
The Research highlighted that the role of the QS has been in crisis for a number of years
due to changes in legislation, construction methods, population growth, economic
measures, political activities, market trends, and advancement of client knowledge,
changes within the industry and continual changes in construction methods.
From the research carried out it is apparent that the recession has had an impact on the
QSs role, as Cost Planning and the cost consultant role aspect seems to be getting
greater. The need to save money and value engineering is becoming more prominent on
each project and the QS is expected to have the knowledge of various methods of
construction and the costs for each. As a result of this, QSs may need to deal with
more cost consultant matters in the future and spend less time with traditional
measuring. With the introduction of BIM this will cut the QSs time for billing and
measuring approximately in half, this the role will need to deviate towards a cost
consultant role in order for the QS to expand.
The QS should gain cross sector expertise in order to understand more fully all the
aspects of the construction process. Continual Professional Development is an excellent
vehicle doing this and should be considered more on a cross-sector basis.
90
6.04
Objective 3
Analyse the background to and the introduction of the New Rules of Measurement
within the Industry and how it can be implemented to ensure that the role of the QS
can be reinvented.
The literature and data analysis, highlight that NRM alone will not re-invent the role of
the QS, as the role will primarily be the same. The research identified that NRM
should if implemented correctly, make it easier for QSs to prepare Cost Plans and Bills,
given that NRM is better explained than SMM7. There is a strong opinion that the
traditional Bill of Quantities will still have a place in todays construction projects, as it
allows the employer and design team full control over the specification of each project,
whereas other procurement routes may not have this. NRM2 should help to improve
measurement and thus ensure a more detailed document is prepared.
The literature
review indicates that NRM will be of benefit to the QS. It should be highlighted that
NRM as a suite of documents was developed by a group of QSs in this case, it could be
said that the document should be fit for purpose. In reality there was never going to
be a smooth transition. The main problem in this area seems to be the reluctance within
the Industry to change. People are human and are therefore reluctant to change and
stick to the motto if its not broken dont fix it. QSs are always looking to improve
cost advice, and are often asked to advise on events that have not yet taken place i.e.
predict the future based on historic information. QSs have to weigh historic cost data
with current and future trends in the context of the unique nature and variable conditions
of each building project. NRM1 should help with this. Clients are given the best cost
advice available to the QS at that moment in time with the design information that they
have. Problems may arise if the design information is not fully sufficient and this tends
to be the case at the cost plan stage of the project. There should be a change in the way
that people and trades are employed in actually carrying out the works. The Client
should be paying a fair price for the works bringing an end to cut price tender bidding as
no other industry works at such low margins.
91
6.05
Objective 4
Carry out a brief overview of SMM7 versus the New Rules of Measurement 2
(NRM2) and to establish why the RICS felt that it was time for change.
The Research highlighted that SMM7, as a measurement tool was no longer working
and therefore QSs did not measure works as often as they would have if SMM7 had
been structured differently. The layout of the SMM7 measurement rules were very
often a barrier to QSs not carrying out as much measurement. If items of works were
not measured then they could not be quantified, with a knock-on effect that they would
not be accurately costed.
The research highlighted that SMM7 has 22 items noted for splitting up measurements
whereas NRM2 has 41.
Carcassing metal / timber covers both steelwork and certain elements of Carpentry
works, whereas NRM2 has Section 15 Structural Metalwork and Section 16 for
Carpentry.
necessary to break the respective items in Section G into Steel and Carpentry NRM2
details these separately and therefore allows for a more detailed breakdown. Granted,
the overall cost may be the same but in terms of analysing the cost of respective sections
is gives a much more detailed breakdown this information can then easily be extracted
when preparing future cost plans. Another example of a benefit of NRM2 over SMM7
is that within NRM2, there is now an item for Heating Installations that the Estimator
can include for the pricing of all the respective elements within the one particular item
since the Estimator no longer has to tediously price every single fitting. This is a more
efficient system.
92
6.06
Objective 5
Identify how the NRM is being filtered into student syllabus and what training
companies need to implement.
The data analysis highlights that Universities have begun to heavily implement NRM
into their course. This can only be good for the future and this will lead to a new breed
of QSs who are trained to use the NRM suite of documents so this should result in a
wider use of the document in the next few years. SMM7 is no longer going to be a part
of the QS students course, so if they want to put what they have learnt at University
into practice they will need to use NRM2.
forced to adapt if they want to develop their companies and employ Graduates and
Trainees.
6.07
Research Gap
As The New Rules of Measurement is relatively new to the Industry and with The New
Rules of Measurement 2 only being put into practice in 2012 and New Rules of
Measurement 3 still to be released, it has to be noted that there is currently a research
gap in the topic of the New Rules of Measurement in particular NRM3.
93
7.0
References
Ashworth, A. and Hogg, K (2007), Willis Practice and Procedure for the Quantity
Surveyor, 12th Edition, Blackwell Publishing, Oxford.
Ashworth, A (2010), Cost Studies of Buildings, 5th Edition, Pearson Edition, Essex.
Benge, D (2009), The Cornerstone of Cost Control, Student Construction Journal 2009.
94
95
Mair (2014). Rapid return to growth requires 182,000 jobs. Construction News 31
January 2014.
Royal Institute of Chartered Surveyors, (1967) The Evolving Role of the Quantity
Surveyor, London, RICS.
Royal Institute of Chartered Surveyors, (1971) The Future Role of the Quantity
Surveyor, London, RICS.
Royal Institute of Chartered Surveyors, (1983) The Future Role of the Chartered
Quantity Surveyor, London, RICS.
Royal Institute of Chartered Surveyors, (1991), Quantity Surveying 2000 The
future role of the Chartered Surveyor, London, RICS.
Royal Institute of Chartered Surveyors, (1998) and The Challenge of Change QS
Think Tank: Questioning the Future of the Profession, London, RICS.
96
Royal Institute of Chartered Surveyors (2009) NRM New Rules of Measurement Volume
1: Order of Cost Estimating and Elemental Cost Planning London, RICS
Royal Institute of Chartered Surveyors (2009) NRM New Rules of Measurement Volume
1: Order of Cost Estimating and Cost Planning for Capital Building Works - Second
Edition, London, RICS
Royal Institute of Chartered Surveyors (2009) NRM New Rules of Measurement Volume
2: Construction Quantities and Works Procurement - Second Edition, London, RICS
97
8.0
Appendix
8.1
Industry Questionnaire
8.2
Software Questionnaire
8.3
8.4
98
Questionnaire.
INDUSTRY BASED SURVEY
The following questionnaire has been prepared as part of an MSC based Dissertation
Titled The Future Role of the Quantity Surveyor and the impact of the New Rules of
Measurement on it.
Could you please answer the following questions?
1.
Please indicate which sector of the industry you are involved with:
Private Practice
Consultant
Main Contractor
Subcontractor
Other
2.
Are you a member of any of the following Professional Bodies? Please tick as
appropriate.
3.
99
4.
Yes
No
5.
6.
Yes
No
7.
Do you think that the RICS have done enough to introduce the NRM
Yes
No
8.
9.
10.
11.
Do you think that the New Rules of Measurement will assist in the re-invention
of the role of the Quantity Surveyor?
Yes
No
12
Do you think that BIM will detract from the importance of NRM?
Yes
No
If yes can you please give your brief reasons?
101
13a
Does your brief include for carrying out the following activity?
Cost Panning
Yes
No
How Often
13b
Does your brief include for carrying out the following activity?
Measurement
Yes
No
How Often:
13c
Does your brief include for carrying out the following activity?
Life Cycle Costing
Yes
No
How Often:
14
Do you think that there is still a requirements for a Traditional Bill of Quantities
in Construction Projects?
Yes
No
If No What form of document should be used in its place?
102
15
Do you think that the role of the Quantity Surveyor has changed in recent years?
Yes
No
16a
Do you use any computer software to assist with your daily duties?
Yes
No
16b
16c
103
Questionnaire.
SOFTWARE COMPANIES BASED SURVEY
The following questionnaire has been prepared as part of an MSC based Dissertation
Titled The Future Role of the Quantity Surveyor and the impact of the New Rules of
Measurement on it.
Could you please answer the following questions?
1.
Does your programme include a library for bill preparation using SMM7?
Yes
No
2.
Does your programme include a library for bill preparation using NRM?
Yes
No
If yes proceed to Question 3
If no proceed to Question 4
3.
4.
Please detail what changes have been made to your programme to implement
NRM?
104
5.
Do you think that your Company has lost sales as a result of not implementing
NRM?
Yes
No
6.
GENERAL:
Do you wish to add any further comments?
105