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High value information in quantity surveyor organizations

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High value information in quantity surveyor organizations

Shen XU1 Llewellyn C. M. Tang2

Abstract: Throughout the construction project process, quantity surveyors make decisions based on various information sources. By
judging the value and quality of information subjectively, they still rarely find the key information to get the tasks done. Not only because
the value and quality of information are different in nature; information quality is context-independent while information value is content-
dependent that is very difficult to be quantified, there is also a lack of information assessment methodology. The research challenges to the
quantity surveyors are, "how can information be assessed as high value; is it possible to establish a filter mechanism to quantity the value
and quality of information within the context of quantity surveyor for future reuse?" This paper first reviews the urgent request on valuing
information in quantity surveying firms. A further investigation into how the quantity surveyor's work is conducted that identifies and
classifies the information generated from a construction project. The intrinsic characteristics of information for the quantity surveying
practice had been proposed and conduct a concept map of information in quantity surveying firm. An investigation on current information
valuing methodologies in construction, regarding proposed concept map of information, has been conducted but result in a suggestion on
implement statistical method in KM. A Bayesian-based information filtering mechanism is introduced for quantity surveyor’s evaluation on
information. Further researches should be carried on to test this model for multi-context evaluation in quantity surveying firms.

Keywords: quantity surveyor, information assessment methodology, Bayesian model, building information modeling (BIM), multi-
context evaluation.

1. INTRODUCTION technological needs of the organisation with people, business


1
model and processes.
Expenditure on Information Technology (IT) has grown The paper is organised as follows: Section 2 reviews the possible
significantly during the last 20 years. (Anon 2010) However much BIM’s influence on quantity surveying practice, and the urgent
of the emphasis has been on investing in the hardware and software request on information evaluation in quantity surveying firms.
that enables the acquisition, storage and processing of data. Value of information had been review in section 3; before the
Consequently, a gradual shift from paper-based working to CAD investigation on information management system in quantity
and towards 3D-prototyping and 4D (Building Information surveying firm in Section 5, Section 4 objectified information in
Modelling) is arising. (Higson & Waltho n.d.) BIM is not only a quantity surveying workflow, and identified major information
replacement of CAD but a new concept on communication and objects during the project process. Based on above analysis in
collaboration approach for construction sector. Together with the quantity surveying firm regarding information, section 6 illustrated
unwritten retention policy in organisations, which is retaining a concept map of information, and review current existing
every piece of documents, accelerating the ‘drowning in data but approach on information evaluation for selecting a sufficient
thirsting for insight’ syndrome. This syndrome can frustrate method for proposed information concept map. Statistical method
business users (Higson & Waltho n.d.) Various researchers had is suggested for KM, and Bayesian network is introduced for a
addressed information as the core element in construction future research, as well limitations on this concept map.
collaboration. (Higson & Waltho n.d.; Petrides 2004a; M. Conclusion can be made that there is a potential of supersede
Darlington et al. 2008; Yuyang Zhao et al. 2008; Barry 2002; quantity surveyor by building information modelling, retain high
Macauley 2005; Moffett & Hinds 2010; Llewellyn C.M. Tang et al. value information in quantity surveying practice is urgent and
2008) It is a critical component of construction effectiveness, to see necessary for future development on building information
how information is created, shared and sustained through its modelling. Statistical method, e.g. Bayesian, can be another kind of
lifecycle. technology to record and track the possibility of high value of
The services provided by consulting organisations are information- information.
and knowledge-based, and the ever-increasing amount of these
services has driven the way that teams within a company
collaborate. Thus, effectively managing information is crucial to 2. QUANTITY SURVEYING AND BIM
supporting collaborative working in construction consulting
organisations. This in turn shifts the emphasis from the
Quantity surveyors exist everywhere in the construction industry
management of information (storing information to exploit it) to
(Poon 2003). Conventionally, quantity surveyors’ services include
managing with information (harnessing information to gain
the preparation of preliminary estimates and feasibility studies, cost
competitive advantage across the organisation). Therefore a more
plans and schedules, and bills of quantities. Quantity surveyors
holistic approach is required which aligns the information and
draft and compile documentation for construction contracts, and
prepare and analyse construction contract tenders. They also
1 Ph.D. Candidate, School of Construction Management and
provide advice on contractor selection and financial management
Engineering, University of Reading, Reading, UK; RG6 6AW; Email:
s.xu@pgr.reading.ac.uk
of all construction works and allied reporting, including auditing,
2 Lecturer, School of Construction Management and Engineering, planning cost and indexing. They provide construction project
University of Reading, Reading, UK; RG6 6AW; Email: management services as well as value management, facilities
l.tang@reading.ac.uk management, management contracting, construction dispute
resolution, research, and other forms of consultancy services. makers may find it difficult to value a piece of information
(Nkado 2000) especially if it has no intrinsic value (Broady-Preston & Williams
Notwithstanding the roles quantity surveyor plays in different 2004) and is time- dependent. Methods have been devised to assess
services, the measurement and pricing are basic abilities of information value to a company, but are usually simple and ignored
quantity surveyor. (Hardie, Miller, Manley & McFallan 2005) the rationale of the decision-makers. ( Tang et al. 2008a)
Measurement ability can be described as an interpretation of
drawings, however, it can be superseded by building information 4 DEFINING INFORMATION IN QUANTITY
modelling (Aouad et al. 1993) BIM's potential of automatic SURVEYING FIRM
measurement may threaten the requirement for quantity surveyor's
service, and Olatunji et al. (2010) revealed that BIM is boosting the Before moving on to next section, it is important for us to define
eclipse of quantity surveyor's practice, and in next 10 years the information at first, as definition of information has a great
boundaries may have shifted. In addition, the chief challenges on diversity in usage and interpretation. Two fundamental theories of
automatic measurement and pricing recently are, regarding information are as below, first view knowledge/information as a
measurement, the BIM date should be filtered to comply with the verb, a process, and second view knowledge/information as a noun,
rules prescribed in relevant Standard Methods of Measurement as a thing. Brenda Dervin systematically proposed Sense-making
(SMM). Pricing requires cost information generated from previous Methodology, which viewed information as a verb, and can not be
similar construction project and quantity surveyor's experience on managed but only can be studied to improve the process of making
the price fluctuation in the real market. sense. (Dervin 1998) From this point of view, Dervin missed an
Concentration on technology leads to the development of building essential part of information that is a container is essential for the
information modelling, which building up a mega database of dissemination of information. On the other hand, (Buckland 1991)
construction project and integrate quality, time and cost viewed information as a thing, he categorized information into four
information together, may drown professions in data. Although aspects, which are information-as-knowledge, information-as-
BIM opens opportunities for multiple disciplines to share and process, information-as-process, and information processing. These
exchange data (Tse et al. 2005), threaten to all professions involved four aspects described the pattern of information when information
in construction is significant. Given above possibility and existing in the real world. Therefore, Dervin described information
challenges, it is prudent to evaluate information, not only of from individual's perspective, and Buckland described the existing
quality, but also value, in quantity surveyor's contexts for pattern of information. They are both correct in some extent, but an
consolidating the use of BIM. Information will not be necessarily integration of these two views can be illustrated as below.
scarce in building information modelling, though well-analysed, Information is both a verb and a non, it's pattern is interchangeable.
well presented, and well-disseminated information is not always When information is disseminating in the world, a container is
available. Thus a sufficient information evaluation methodology, to essential, consequently, it can be objectified into entity. When
filter high value information for reuse, retain, and accumulate, is individual attempt to interpret the 'information' to get being
urgently required in quantity surveying organisation. informed, it is a process, an 'act of thinking'. Regarding
information evaluation, author adopted a definition of information
3. VALUE OF INFORMATION within the context of the practice of quantity surveying.
Consequently, an analysis on project cost information can be
Construction companies are willing to pay for information conducted and clarify what sort of information we are talking about.
depending on how certain and uncertain they are, and on what are At first, author need to distinguishing information from date. Data
at stake. They are willing to pay for additional information, or represents a fact or statement of event without relation to other
value-added information, as long as the expected gain exceeds the things. Ex: 23456. Information embodies the understanding of a
cost of producing, processing and rendering the information. More relationship of some sort, possibly cause and effect. Ex: This house
specifically, the value of information largely depends on several area covers 23456 square meters. Based on this understanding of
factors: information, where information is the meaningful content of a
 The degree of uncertainty, description, it can 'informs' understanding and knowledge.
 The consequence of the decisions, Apparently, information, in this understanding, is 'abstract and
 The rationality of a decision maker, intangible, immaterial'. However, this definition of information
 The cost of acquiring information to make has a high level of abstractive, practicable speaking, it is difficult to
decisions, and be evaluated. Notwithstanding the abstractive understanding on
 The availability of the best substitute for the information, it also can be considered as a thing, where documents,
information. e.g. cost planning etc., are carrying 'information'. Thus information
VOI depends on the mean and spread of uncertainty surrounding can also be a tangible object. Information Object (IO) is being
the decision in question. For example, Evans et al. (1988) revealed introduced in this research, and this term had been used variously
that the value of information depends on the availability of actions. in information research. (CCSDS 2002; Currall & McKinney 2006;
In particular, if few actions are available, a piece of information Ziad & Kittredge 2005) Information Objects including mainly two
can then has little value even if it virtually eliminates the degree of parts, which are physical (e.g. a tendering document, a written
uncertainty. By contrast, if the costs of actions widely diverge, for report on cost planning) and digital object (e.g. web page etc.).
instance, the choice of material in variation, then information about Apparently, document does not exist along, it is composed by sub-
total cost of variation may be quite valuable even if it reduces part of information object, which can exist solely and still be
uncertainty very little. In this case, the value of information relates informative. This suggests a lesser part of information carrier,
to the accuracy of the estimation on total variation. In other words, which named 'Information Fragment'. (Darlington et al.2008).
the more specified information is the more value it can bring.
Furthermore, the authors also illustrated that VOI can be measured 4.1 Analysis of project cost information system
based on a given quality of information, or on how its value
changes with different attributes of information such as greater
frequency of collection or improved accuracy. However, decision-
fragment. By receiving the drawings of building, quantity surveyor
Project
interpret drawing into measurements according to standard
methods of measurement (SMM), which will be viewed as
information fragment. After being given a title, in other words, the
measurement has been categorised into documents, it has been
viewed as an information object, and is a tangible information
Individual project Including Unit project Including Work piece Including Item project Including Inspection lot
entity, e.g. bill of quantities.

Including
4.2 Information objects in QS
One of cost information objects had been identified, the rest of
them can also be identified throughout the construction project
Quantity Machine Material Labor Estimation
process. The major information objects can be illustrated as Figure
3 The outline of cost information management.

Cost estimation
Project
Project planning
responsibility
objective cost
Cost objective cost
information
Tendering
documents

Figure 1 The anatomy of project cost information

Figure 1 shows a typical construction project cost information


system, normally, construction project will be gradually divided Sub-contract payment
Certification of
payments
into smaller part until individual can handle it, which is the
inspection lot. For providing cost information, inspection lot will Material payment

be analysed with quantity, price (Machine, Material and Labour) Machine payment Final account

and estimation.
Management payment
In the view of information management, 'quantity' can be viewed
Financial
as an information object. The work flow of quantity can be Other payment statement

illustrated in figure 2, Objectify information in quantity surveying


work flow (Quantities).
According to the definition of data, represent a fact, quantity
surveyor reviews physical feature of building as raw data. The raw
data with meaningful context and relationship, normally
represented by drawings, can be categorised into information Variations
Responsibility
Actual cost Planning objective
objective cost
calculating cost calculating
Tangible container: calculating
Drawings
(with physical feature of building Cash flow analysis
And their meaningful relationship) Comparison of
three figures

Viewed as

Intangible
Information
Entity:
s Knowledge
rd
da
an Improving cost Cost information
st Standard Methods
ith management database
w of Measurement
o ng
Al

Quantity surveyor
interpretation on data
Data Figure 3 The outline of cost information management
Co
Viewed as nt
e
E. xt-b
Measurements on g.
Ti eari These major documents represent the information involved in
buildings tle n g
quantity surveying firm, which by revealing the characteristics of
these documents can represent the nature of the information and
Information
assist the measurement of information quality and value. At this
Fragment
Viewed as
stage, author proposed five common characteristics which widely
Tangilbe Information Entity:
E.g. Taking off used in information evaluation for the further discussion of this
Bill of quantities paper. (Yuyang Zhao, Tang, Mansur Darlington, S. Austin, et al.
2010; Tang, Yuyang Zhao, S. Austin, Mansur Darlington & Steve
Culley 2008b) Five characteristics are as below:
Information  Accuracy
Object
 Currency
 Trust
Figure 2 Objectify information in QS’s work flow  Usefulness
(Quantity)  Completeness
It is far beyond this research paper's topic to reveal and rank all the not as an individual. The key questions in the project level are:
characteristics, however, other characteristics should be what gaps are there in the information? Who else need this
investigated in another research paper. Nevertheless, it is still information without proper access? The value of this respect is the
sufficient to hold a discussion on information evaluation and draw capacity to support the work flow process within team. Project
a concept map for information. manager is dealing with information objects, which is a formal
activity within company, e.g. standards/regulations, guides, and
5. INFORMATION MANAGEMENT SYSTEM manuals etc.
Enterprise-level, as the hierarchy shows, the higher level it is,
After objectifying information in quantity surveying firm, the flow consideration will be focused on company as a whole. As a
of these pieces of information can be studied. Figure 3 illustrate the consulting quantity surveying firm, several projects are being
internal/external flow of information. carried on together. The main purpose of this level is to allocate
Begin with the discussion on the task items of managing resources between different projects, and make the company to act
information, this is important to understand the formal and profitably. Consequently, the information involved in this level is
informal activities within organization. The task items of managing strategically and long term. The key question for senior manager is
information activities in a Quantity Surveying organisation may how critical is this information to the operation of the business.
fall into two categories. One is the record-involved task, which The entity type of information concerned by this level is
needs a person to seek, analyse, and input some information, such information system, e.g. tools(CAD, EDMS, BIM, etc.) The value
as to make a plan for cost management. (Zhiliang & Liang 2004) senior manager addressing is that increasing company competitive.
This category of task is a formal activity that contains a series of Apart from internal information flow, the external flow of
stages, such as submission, auditing and approval of information. information is collaboration level. As figure 3 shows, generally
Another item is record-free task, which needs no input of speaking, this level in consulting quantity surveying firm involves
information but a further analysis on the result of certain activities, three participants in terms of context level, e.g. clients, enterprise
such as monitoring the efficiency of running an information level, and project level etc. In addition, more participants in terms
management system. These two tasks can be transmittable, which of organizations should be brought in, e.g. contractor, designer, and
means record-free task may turn to record-involved task under sub-contractor. The investigation on these participants is far
certain circumstances. Within quantity surveying organization,
information fragment can be regarded as a record-free task, mostly,
it is being monitored but rather than recorded. Information object is Key questions

through the formal process of submission, auditing and approval, What information is held?
External

and then finally recorded within organization.


Generally, information involved in a Quantity Surveying How it is held and managed?

Colloberation-Level
organisation can be categorised into three levels (See Figure 3: How it flows through
inter-organizations
w

Pr
flo

Information flow in quantity surveyor firm), the enterprise-level,


o

and systems
je
on

ct
ati

in
rm

fo
fo

rm
in

ati
s

the project-level, and the operational-level. The enterprise-level


on
es
in

flo
s
Bu

management activities include preparing objective costs for the Information Object Flow Information Fragment Flow

project team. This helps monitoring the progress of a project and Enterprise-Level Project-Level
Operational-Level
Activities
coordinating a project, while all the project-level management Management
Activities
Submission-Auditing-Approval
Record-involved task Management
Activities
Monitoring
Record-free task
Internal

Key questions Key questions


activities cover the rest of the necessary management activities Key questions

regarding to the same construction project. The operational-level How critical the
Information is to the
What gaps are there
What the information
is used for?
in the information?

covers more detailed activities involved in project, for instance Organizations'


strategic goals?

Who else need this information

including bill take off or quantity calculation.(Ashworth & Hogg Without proper access? Where information
And information resources
are being duplicated?

2007; Christabel & Vincent 2003) Is the information sufficient


for my gourp?

The questions regard information raised by different context


levels has a various focus. Based upon comprehensive literature Figure 4 Information flow in a QS firm
review, and personal observation, a comparison between three beyond this research paper.
levels on information evaluation process, impact horizon, role, key Based upon the investigation between different contexts within
question, value, and information entity type is being carried on. consulting quantity surveying firm, it is apparent that high value
(Darlington, et al. 2008) information for enterprise level may mean nothing to operational
Operational-level, as the name implies that individual is more level or project level and vice versa. Indeed, the definition of value
tasks driven, he holds the question regards information is more varies with the purpose, viewpoint and intent of the person who
specified on his task/works assigned by upper-level. Individual defines it (Miles 1972). Processing and interpreting data to make
evaluates information entity in respect of a current or predictable them usable can often be a major roadblock to realizing the value
need. Obviously, the impact of the information is current or near of data and information that at the same time, depends on the
future. This process is mostly a personal process. The key rationality and irrationality of a decision maker who judge the
questions raised by operational-level are e.g. what is the value and quality of it. Therefore, information value is context
information used for? Where could I achieve it? (See Figure 3) sensitive, the judgement criteria, the results, and the process is
Consequently, the value mean to this level is the capacity to fulfil context depended. In other words, the context has huge impact on
an information need, to solve a problem incurred in the task, or to the total value of information, and the information has a unique
support a decision. Regarding this level, the majority type of value in each contexts. High value information for project level
information entity is information fragments, e.g. facts and figures. may not remain high value to different context level.
Project-level, as a team leader, will predict information's
future capacity on satisfying employees' need. The impact of 6. THE CONCEPT MAP OF INFORMATION IN
information in this level is shorter term, but tactical. The manager QUANTITY SURVEYING FIRM
will regard the team as a whole, much consideration on team but
Information
Fragment

Including
Determines

Collaboration
Context Has Information Has Content

Level
Including

Determines Information
Has
Enterprise Project Object
Updates Has
Level Level

Affects
Impact
Influences
Value
Operational
Influences Purpose
Level Decisides
Influences
Influences
Influences Reflects
Decisides

Quality
Confidentiality Relevance

Influences
Actions Includs
Cause Determines

Accuracy Currency Trust Usefulness Can be To others


Decides

Can be Now
How I work Completeness
Is affected by
Can be
Is affected by Decides
In the future
Culture Souce

Figure 5 The concept map of information

After investigating information object, information system, and project management, and business management, no such
information value in quantity surveying firm, a concept map of assessment methodology is sufficient to conduct valuing
information can be drawn as above, Figure 5 The concept map of information in quantity surveying firm, especially in a multi-
information. context evaluation.
First, information has content. Information is composed by  In the domain of supply chain management, works are
information fragments, and information objects. After being focused on the information flow, by using a number of
objectified, the classification of information in quantity surveying mathematical models to make the consistency of
firm can be conducted. Though the Content of information affects downstream and upstream information flow, e.g. the
the classification, as it is the purpose of using information, the term inventory information and production plan information,
classification is replaced by Relevance. Apparently, Relevance and the sales information and demand forecasting
determines purpose, the purpose of using information, which information. The VOI lies on efficiency in information
influences the value of information. Furthermore, Content has flow.(Titus & Bröchner 2005; Ben-Haim 2001;
quality, which quality can be assessed by characteristics, e.g. Dominguez & Lashkari 2004)
Accuracy, Currency, Trust, Usefulness, and Completeness etc. In  In the risk management, VOI lies on reducing risk in the
addition, Relevance also determines Usefulness. decision making situation, it evaluate the cost and benefit
Second, information does not exist in a vacuum. Information flows on collecting additional information for eliminating
through different contexts, internally from Operational-level to uncertainty to decision makers. The applications are
Project-level and Enterprise-level. In addition, external flow of focusing on consequences of a decision, clarify any
information is named Collaboration-level, which compose of potential loss from an error decision in uncertainty to
Enterprise-level and Project-level. Context decides individual identify the valuable way collecting information. (Yokota
activities, which are formal and informal. These activities can & Thompson 2004)
update information within firm. Furthermore, context also  In the management domain industry, e.g. construction,
determines the purpose of using information, as well as impact of aerospace etc. Information quality is context-independent
information. Consequently, the Context is an explicit factor that while information value is content-dependent. As well
affects the value.(Zhao et al. 2008) Apparently, the concept map of there is no intrinsic value, decision maker struggling on
information shows that information quality is context-independent valuing information. Methods have been devised to
while information value is content-dependent. assess information value in relation to the profitability of
a company, e.g. SAS & Shark Finesse-'Unlocking the
6.1. An information evaluation approach Value of Information' , The National Archives-
Based on the comprehensive understanding on the linkage between 'Information Management Value Model', are simple and
information value and information quality, context, and relevance, ignore the rational of decision maker. (Zhao et al. 2008;
as well as the explicit barrier on valuing information, conclusion Higson & Waltho n.d.; EURIM 2009)
can be made that when information need to be valued, to calculate
out it's value, the commonly used methods are inadequate because 6.2. Limitations and future research
of its tangible and intangible characteristics. Literature review
throughout supply chain management, VOI for risk management,
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to the determination of information value. However, the terms, e.g. http://www.ncc.co.uk/article/?articleid=15902
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