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Quantity Surveying Practice

Assessment 01 |



Modern Quantity Surveying Practices, Claims, Proper Procurement System
Selection & Alternative Dispute Resolution System in the Construction Industry
Ulfath Bary Ab.
Shu Ref No: 23044990
ICBT No: 13/S/SL/BSc/45
SHU SL Batch 06
13
th
of July 2014



Quantity Surveying Practice (77-6966-00S)

Module Lecturer: Ms. Indra Rajapakse/
Mr. Upali Fernando
Quantity Surveying Practice
Assessment 01 | i

Executive Summary
The program BSc (Hons) Quantity Surveying and Construction Management conduct by
Sheffield Hallam University connecting this assessment tasks through the module of Quantity
Surveying Practice. Expected learning outcomes from this assessment are develop an
understanding the services of Quantity Surveyors in the construction market, evaluate the
critical issues related to project procurement, analyzing construction procedures within the
design, production and maintenance stages, identify issues on contractual claims and articulate
ideas in an appropriate format, to the Quantity surveyors role.
In section one task one illustrates, Quantity Surveyor as a Measurer, Economist, Accountant
and Lawyer in Modern, traditional and future construction industry.
Second task talking about the importance of the construction programme to Quantity Surveyor
to succeed the project.
Third task introducing the EOT claims, Final claims and other comprehensive report of the
projects.
Fourth tasks stands to explain the Disruption Claims and EOT Claims with related delay
analysis.
Section two tasks are completely describes the selection of suitable construction procurement
method and Dispute resolution.
Understanding roles of Quantity surveyor, concerning the importance of the construction
programme, gaining knowledge of EOT and final claims, understanding the construction
procurement systems and selecting method of dispute resolution are important to the Quantity
Surveyor to succeed the project within the allocated budget and time consist of quality of the
product.












Quantity Surveying Practice
Assessment 01 | ii

Table of Contents
Executive Summary ............................................................................................................................... i
Table of Contents .................................................................................................................................. ii
List of Figures ....................................................................................................................................... iii
List of Abbreviations ........................................................................................................................... iv
1. Introduction ................................................................................................................................... 1
2. Task 1.1 .......................................................................................................................................... 2
2.1. Traditional Stage ....................................................................................................................... 2
2.1.1. As a Measurer ....................................................................................................................... 2
2.1.2. As an Economist/ an Accountant ......................................................................................... 2
2.1.3. As Lawyer .............................................................................................................................. 3
2.2. Modern Stage ............................................................................................................................ 3
2.2.1. As a Measurer ....................................................................................................................... 3
2.2.2. As an Economist/ an Accountant ......................................................................................... 3
2.2.3. As a Lawyer ........................................................................................................................... 3
2.3. Future Stage .............................................................................................................................. 4
3. Task 1.2 .......................................................................................................................................... 5
4. Task 1.3 .......................................................................................................................................... 6
4.1. EOT Claims ............................................................................................................................... 7
4.1.1. Project Summary .................................................................................................................. 7
4.2. Delay Event Details and Delay Analysis ................................................................................. 7
4.3. Delay Notice ............................................................................................................................... 8
4.4. Mitigation Action ...................................................................................................................... 8
4.5. Contemporary Records ............................................................................................................ 9
4.6. EOT Claims for Preliminaries ................................................................................................. 9
4.7. EOT Claims for Head office overhead charges ...................................................................... 9
5. Task 1.4 ........................................................................................................................................ 10
5.1. Disruption Claims ................................................................................................................... 10
5.2. EOT Claims ............................................................................................................................. 11
6. Task 2.1 ........................................................................................................................................ 12
6.1. Procurement Methods ............................................................................................................ 12
6.2. 1. Traditional .......................................................................................................................... 12
6.2.1.1. Advantages ....................................................................................................................... 13
6.2.1.2. Disadvantages .................................................................................................................. 13
6.3. 1. Design and Build ................................................................................................................ 13
6.3.1.1. Advantages ....................................................................................................................... 14
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Assessment 01 | iii

6.3.1.2. Disadvantages .................................................................................................................. 14
6.4. 1. Management Contracting .................................................................................................. 14
6.4.1.1. Management Contracting ............................................................................................... 14
6.4.1.2. Construction Management ............................................................................................. 14
7. Task 2.2 ........................................................................................................................................ 15
7.1. Dispute Resolution .................................................................................................................. 15
7.2. Alternative dispute resolution (ADR).................................................................................... 15
7.2.1. Arbitration ........................................................................................................................... 16
7.2.2. Advantages of Arbitration compare to litigation ............................................................. 17
8. Conclusion ................................................................................................................................... 18
9. References .................................................................................................................................... 19




List of Figures
Figure 6.2.1.1 Contractual Procedure in Traditional Procurement Method..12
Figure 6.3.1.1 Contractual Procedure in Design & Build Procurement Method..13
Figure 6.4.1.1 Contractual Procedure in Management Contracting Procurement Method...14















Quantity Surveying Practice
Assessment 01 | iv


List of Abbreviations
EOT Extension of Time
MS Office Microsoft Office
MS Project Microsoft Project
QS Quantity Surveyor
BIM Building Information Modelling
RICS Royal institute of Charted Surveyors
FIDIC Fdration Internationale Des Ingnieurs-Conseils
CAD Computer Aid Design
ADR Alternative Dispute Resolutions

















Quantity Surveying Practice

Assessment 01 | 1
1. Introduction
The assignment explains the role of Quantity Surveyor in traditional, modern and future
construction industry. In that role how far he familiarize with the construction programme
and how much he analyze the project details, event details, delay, mitigation actions,
contemporary records, extended site overheads and extended head office overheads. Also
he should thorough about Disruption claims and EOT claims.
Even to succeed the project, selecting construction procurement lead first. Each projects
differ from each. So the way of procurement should change to each. In this situation a
Quantity Surveyor should be guide to the client to select suitable procurement and in post
contract there must be disputes between two parties; at the moment a Quantity Surveyor
must know the way of resolutions and how to apply them in required time. These are the
best and important role of perfect Quantity Surveyor.
Assumption has been applied where it necessary. All the knowledge gathered in class has
been applied and connected to proper project to fulfill the report.
The limitation of this assessment will concerning with Sri Lankan construction
management practices and explained with the comprehensive examples and case studies.

















Quantity Surveying Practice
Assessment 01 | 2

2. Task 1.1
Poon (2003) states that Quantity surveyors are ubiquitous in the construction industry. In
early the Quantity Surveyor is a professional working with building cost. Nowadays the
involvement of Quantity Surveyor spread to diverse department involve in the construction
industry. According to RICS Assessment of Professional Competence (APC), Quantity
Surveyor can be define,
Quantity surveyors are the cost managers of construction. They are initially involved with
the capital expenditure phase of a building or facility, which is the feasibility, design and
construction phases, but they can also be involved with the extension, refurbishment,
maintenance and demolition of a facility.
According to phrase above mentioned, Quantity Surveyors duty is related to cost of
building or facility. Day by day it has been change, because the need of Quantity Surveyor
is increased to succeed the perfect project.
Later on, according to RICS (1971), the quantity surveyors roll is to ensure that the
resources of the construction industry are utilized to the best advantage of society
by providing the financial management for projects and a cost consultancy service to the
client and designer during the whole construction process
QS Involved advising clients as an Economist, they involved taking off measurements and
Material take off as a measurer, preparing interim payment certificate as an accountant and
lawyer for construction disputes. It can be vary in traditional, modern and future stages.
2.1.Traditional Stage
Early days QS role is limited up to pricing and preparing BOQ. QS Perform on estimating
and tendering the projects, also QS involves on preparation of BOQ in consultant party.
Also involved in pre advising on cost to the client.
2.1.1. As a Measurer
Taking of Measurements, estimation, taking off material and resource quantity and
preparation of BOQ from paper printed drawings using manual scales are the roles as a
measurer at the traditional Stage. Reading and calculating had took long duration. Tender
and preparation of BOQ process were take a long time. Everything has to be documented
in the paper. Poor documentation leaded to rise arithmetical mistakes on estimations.
Measurements were took by manual tools like scales and other measuring tools.
2.1.2. As an Economist/ an Accountant
An investor or client can be employ a Quantity surveyor as an economist to advice on cost
of investment or a project. Here in traditional stage the limitation of economist is up to
advising cost only. Advising client whether budget is enough to complete the project or
not. And pre advising on cost control system.
Traditional Quantity surveyor take a responsible person as an accountant to claim money
from the client. For this he need to prepare interim valuation certificate for work done. And
he should thorough about scope of the project. Also he should attend to prepare sub-
contractor bills and supplier payments.
Quantity Surveying Practice
Assessment 01 | 3

2.1.3. As Lawyer
Disputes in construction industry are most probably related to time, cost and claims.
Quantity Surveyor is the most preferred and thorough person to handle this disputes perfect.
QS Knows what the best resolution way to solve this problems are. QS Can be an arbitrator
when problem leads to arbitration. Preparation of Contemporary reports, EOT claims,
Disruption Claims and dispute notices can be done by QS.
2.2.Modern Stage
In 19
th
century the demand to Quantity Surveyor has been touched the peak. Day to day the
role and responsibilities of QS has been modernized to catchup the speed of construction
industry. Though the new technologies and strategies applied in Quantity Surveying
practices. And more software entered to the construction market to make construction
procedures easy and accuracy. And role of QS extends to diverse activity in construction
industry and QSs are dominates the construction industry vastly.
2.2.1. As a Measurer
As traditional measurer modern measurer also play same role. Here the difference is speed
up process on taking off measurements, estimation process and other measuring ways are
simplified by modern software. Digital drawings to taking off measurements and quantity
take off as like CAD software. Preparation of BOQ and documentation are simplified by
MS Office. The time taking to the required process what has been taken by traditional
measure had reduced by half.
2.2.2. As an Economist/ an Accountant
Advising to the client regarding procurement selection, estimated and targeted budget, life
cycle cost, cost controlling system, cost scheduling, cost planning, resource sharing,
material allocating, man power recruiting, selection of machineries and etc. Here the QS
rules the construction industry. 70% of management in construction industry is handling
by QS. As an accountant side, Quantity Surveyor should thorough with value engineering,
final accounts, variations, extra works and etc. In modern stage applying management
software is simplifying the works of QS. MS office and other account software speedup the
process more than traditional ways and also accuracy and security.
2.2.3. As a Lawyer
As a lawyer QS is playing very important role in modern stage construction. QS is involving
like preparation of bid documents, legal documents of every contracts, preparation of
contract agreement and sub-contractor agreement, identifying disputes, solving disputes by
legal way, preparation of condition of contracts, analyzing standard bid clauses, selecting
suitable standard bid document for construction and etc.





Quantity Surveying Practice
Assessment 01 | 4

2.3.Future Stage
Navigation of Information Technology in to the construction industry effected very much
of all traditional professionals. Quantity surveying practices also modernized to catchup
the speed of building demand. Involvement of modern Quantity Surveyor is increasing day
by day. Demand of traditional practices and traditional Quantity surveyors scaring to take
over the complex contracts, because of lake of modern knowledge on Quantity Surveying
practices.
A single software can deliver whole detailing, estimating, planning and other scheduling
works in micro moment. BIM (Building Information Modelling) is an innovative example
in the flourishing construction industry. There will be fears that innovation of BIM could
challenge the survival of Quantity Surveying professionals. Nevertheless QS cant
survive until he ready to face the future construction innovation innovations.
As measurer, QS should know how to operate latest software to taking off measurements,
taking of quantity and other measuring works. QS Cant survive in future construction
industry until he learn how to use CAD software, MS Office and other necessary software.
As an accountant/economist, QS should thorough with cost planning software and other
scheduling software. Calculating cash flow factors, Value engineering and other controlling
systems are adopted to new innovation. Familiarizing with those innovation can be survive
the QS profession in future. Using MS projects and Primavera software will be the basic
requirement for the future QSs.
As a lawyer, QS should familiarize with emailing and internet to communicate two parties
while disputes rising between the contract. Proper communication can reduce 50% of
disputes. QS must be ready to act as an arbitrator when disputes are rising. All the
information should be collect in the fingertips of QS.
Influence of information technology has been rise a big question mark for survival of
Quantity surveyor profession in modern construction. Everything computerized and
digitalized in to the small electronic machines. Though the demand of traditional QS
flopped to the base. Now it is threatening to the modern QS profession also. Innovative
software need only data and a single operator to deliver whole Quantity Surveying process
what done by QS in tradition stages. Updating their technology and the knowledge of
innovations can lead to survive the QS professions in future.








Quantity Surveying Practice
Assessment 01 | 5

3. Task 1.2
Programming is the best strategy in every industries to succeed the goal. As we know
construction industry is very tough and complex than other industry. Though the concern
of construction programme is very important to the whole project team. Fathi, M. S.,
Anumba, C. J., Carrillo, P. & Aziz, Z. (2007) states that,
Construction Programme Management is the coordinated management of a group of
related or unrelated construction projects that together provide a certain elements that assist
the organization to achieve a define business goals, objectives and benefits.
Construction programme means a list of activities for a project presenting the dates for
starting and finishing them. And it can be called Schedule.
In modern construction contracts necessitate the contractor to provide a construction
programme. Normally when the contractor entering to the contract, contractor should
provide a construction programme to the required scope of works. It must support the
parties to plan, control and manage the Contract between the Employer and the Contractor
besides of other sub-contractors.
All the activities related to the project must be scheduled on this programme. It shows their
start date and finishing date clearly. And it shows what are the activities going parallel to
other activities, what are the critical paths, what are the dependent and independent
activities. Even it shows the resource sharing and allocation very thorough. The
construction programme has two likely roles, Monitor Role and Dynamic Role.
The Monitor Role
It allows the degree of compliance with the parties' requirements as to time to be measured
at specific phases.
The Dynamic Role
Here it allows an investigation of progress to control the remedial schedules to be taken to
catchup with the specific requirement.
Be a good Quantity Surveyor understanding and evaluating construction programme is
important. Because QS is responsible person to resource allocating to the project. QS must
know how much the project is progressing and how much resources and how much time
we required to finish the project as per original schedule. When an activity delay from
actual planned activity, QS must proposed a suggestion to remedial action to cover the
delay. It must protect the project from cost and time over run.
By using construction programme QS can identify what are the delayed items and what are
the reasons behind that. If it is possible to EOT claims project can be applied for extension
of completion date. Allocation of resources can be effect the cost of project, because actual
allocated resources can be varied than planned. In this situation QS must be thorough with
the construction programme to cover the loss in another activity. In critical activities QS
must be concern and ready to face risk in future. So a good Quantity Surveyor should
concerned construction programme to succeed the project. As a recommendation it can be
suggest Quantity Surveyor is preferred person to prepare construction programme.
Quantity Surveying Practice
Assessment 01 | 6

4. Task 1.3
Time overrun or delay of construction is very common in construction projects due to so
many reasons. Lake of communication between the engineer and the contractor is rising
major delay in construction projects. Delays can be occur in two sides either contractor or
employer. Khaled A., Ayman H., Gamal E. (2014) states that delay of construction project
in contractors side are given below
a) Wrong assumptions;
b) Poor planning;
c) Unrealistic activity duration or interrelationships;
d) Low productivity of resources;
e) Lack of manpower and machinery resources;
f) Poor quality of work; (extensive remedies)
g) Commitment to HSE requirement;
h) Financial issues; and
i) Late delivery of the required materials.
If any construction delays which can befall due to any above events, they are wont excuse
or wont compensable. Those delays should be bear by contractor. And contractor is
accountable to recover such delays. Otherwise the contractor will be applicable to the
penalties or liquidated damage.
In other sides Khaled A., Ayman H., Gamal E. (2014) states that Employers are taking
higher risk in delay of construction due following
a) Delay in handing over the job site;
b) Use or occupation by the employer of any part of the permanent works, except as
may be specified in the Contract;
c) Different physical conditions from those provided during the tender stage;
d) Changes to the original contract scope;
e) Late engineering deliverable;
f) Late procurement deliverables;
g) Frequent revisions for engineering deliverable;
h) Delay in approval above the contractual allowance;
i) Delay in payment,
j) Out of sequence for engineering and procurement deliverables;
k) Suspension of the work;
l) Adverse weather conditions;
m) Changes to project specifications;
n) Force Majeure (War, hostilities, invasion, act of foreign enemies revolution,
terrorism, sabotage by persons other than the contractors personnel, or civil war
within the country, etc.); and
o) Existing underground utilities which are not shown in the as-built drawing received
by the contractor during the tender stage.
If any construction delays befalling due to above events can be excusable and compensable.
But the contractor at moment is accountable to mitigate totally or partially the effect of
above delays. In case contractor shall applicable to EOT claims.
Quantity Surveying Practice
Assessment 01 | 7

4.1.EOT Claims
There is vast chances to claim extension while the delay occurring by Employer as
mentioned above. At the situation contractor shall be claim EOT. The assumption has been
taken to below project that there are four events occurred and it effect the duration of the
project.
4.1.1. Project Summary
Project : Proposed Head-Office Building for the Department Of Census & Statistics
Client : Department Of Census and Statistics
Consultant : Engineering Consultants (Pvt) Ltd.
Contractor : VVK-LHP Joint Venture
Contract Value : RS. 728,000,000.00
Contract Duration : 24 Months
Commencement Date: 31
st
January 2012
Completion Date: 31
st
January 2014
Subject : Extension of Time Claim
4.2.Delay Event Details and Delay Analysis

# EVENT START DATE FINISH DATE
DELAYED
(DAYS)
EFECTIVE
DELAY
(DAYS)
01 Delay of finalizing
ceiling Type. Whether
Metal Ceiling or
Mineral Fiber Ceiling
20/10/2013 03/12/2013 44 Days
TOTAL EFFECTIVE DELAY PERIOD (DAYS) 44 Days

According to the above table total effective delay period is 44 calendar days. Adjustments
should be made to Head office overhead and preliminaries.







Quantity Surveying Practice
Assessment 01 | 8

4.3.Delay Notice

VVK-LHP Joint Venture
2014.07.13

Engineering Consultants (Pvt) Ltd.
Attention: The Engineer
Dear Sir,
Project: Proposed Head-Office Building for the Department Of Census & Statistics

Subject: DELAY EVENT NO 1 Not finalized Ceiling type whether is it Metal Ceiling
or Mineral Fiber Ceiling. Notice of the Delay event No 01

In pursuant to Clause 8.4 (e), we give our notice that above delay event has occurred within
the last 28 days which is such as fairly entitle us to an extension of time for the completion
of the works or a section or part of thereof.
Further we inform you that the above delay is occurred with related the clause 8.4 (e)

Thank you,
Yours faithfully,

.
Ulfat Bari Ab,
Quantity Surveyor,
VVK-LHP Joint Venture

Copies 01) the Employer
02) The Engineers Representative

4.4.Mitigation Action
Due to the delay of sample approval whole installation of ceiling works delayed. Frequently
emails and letters sent to consultant to give approval for type of ceiling to be installed.
Original scope was laying Mineral fiber ceiling, the client likely to install Metal ceiling
instead of mineral fiber ceiling. Cost variation and rate analysis has been submitted to the
employer and the engineer. In progress meeting also questions raised by contractor but the
decision is still pending.

Quantity Surveying Practice
Assessment 01 | 9

4.5.Contemporary Records
Due to this delay the delay notice submitted attached with baseline programme and affected
programme. And related documents given to the engineer and the client as proving
documents. Meeting minutes can be big evidence to make sure of our EOT claim.
4.6.EOT Claims for Preliminaries
EOT claims for preliminaries can be calculate for above project as shown below.
Assumption are following.
Total Preliminaries of above project is: LKR 4, 225, 000.00 (A)
Overhead and Profit: 20%
Contract period: 24 Months (C.)
Cost of Fixed items & Progress related items: LKR 2,990, 000.00 (B)
Delayed Days: 60 Calendar days (G)

Time related cost with overhead & profit = A B
= LKR (4, 225, 000.00 - 2,990, 000.00)
= LKR 1,235,000.00 (D)
Deduct 20% overhead & profit from D = LKR 1,235,000.00 X 0.8
= LKR 988,000.00 (E.)

Day Rate (E/C) = LKR 1,353.42 (F)

Amount of exceeded site establishment cost = F x G
= 60 x 1,353.42
= LKR 81,205.48 (Y)

4.7.EOT Claims for Head office overhead charges
HUDSON formula has been applied for calculating Head office overhead charges. Below
calculation explain how to apply HUDSON formula with related example.
Contract Value : RS. 728,000,000.00 (A)
Contract Duration : 730 Calendar Days (B)
Overhead Percentage: 5% (C.)
Day Rate = (C x A) / B
= LKR (728,000,000.00 x 5%)/ 730 Days
= LKR 49,863.01

Delayed number of Dates = 60 x 49,863.01
= LKR 2,991,780.82 (X)

So Total EOT claims = X + Y
= LKR 3,072,986.30
Quantity Surveying Practice
Assessment 01 | 10

5. Task 1.4
5.1.Disruption Claims
Disruption claim is usually stand to define a monetary claim in situations where portion of
the works has been disturbed, except disturbing the ultimate completion date of the
construction project. According to Gibbs & Hunt (2009) Disruption claims can be defined
as the lawful or justifiable request for more reimbursement or payment to cover the extra
cost and or time required to complete a project as a result of disruption, a change in the
terms of the contract, or as a result of unforeseen conditions and circumstances arising
In construction projects most commonly disruption can be rise by a variation change order.
Utmost disruption claims are dealt with the applicant is enforced to depend on
contemporary records to effort and create a fundamental connection for recognized
damages that are insufficient for supporting a loss of output claim.
Patrick W (2005) states that The manifestation of disruption costs can occur in two ways.
The project workforce (including plant and equipment) can be engaged on the site
for longer than originally allowed in the project estimates. The work itself takes
longer to complete and the project suffers the cost of its workforce being engaged
for a longer period.
Additional workers, staff and equipment are deployed on the project to
overcome the effect of the delay by increasing production.
Disruption claim calculations are more complex than EOT claims. It consists the extra time
productive workers, plant, machineries, staff and equipment what engaged on the project.
These costs need to be moderated to allow for normal inefficiencies and nonworking times.
According to the Excell Consulting International (2014) Disruption Claims include, but
are not limited to:
Efficiency decreased due to re-sequencing work or additional work activities in
progress at a given time
Performance extended into a period of adverse weather
Dilution of supervision due to additional work activities to be manages
Overcrowding of trades, and
Acceleration premium time/increases in manpower










Quantity Surveying Practice
Assessment 01 | 11

5.2.EOT Claims
EOT claim is commonly stand for define a monetary claim that monitors on from a delay
to the work as a whole. FIDIC Red (2005) describes in clause 8.4 (Extension of Time for
Completion) as follow
The Contractor shall be entitled subject to Sub-Clause 20.1 [Contractors Claims] to an
extension of the Time for Completion if and to the extent that completion for the purposes
of Sub-Clause 10.1 [Taking-Over of the Works and Sections] is or will be delayed by any
of the following causes:
a) a Variation (unless an adjustment to the Time for Completion has been agreed under
Sub-Clause 13.3 [Variation Procedure]) or other substantial change in the quantity
of an item of work included in the Contract,
b) a cause of delay giving an entitlement to extension of time under a Sub-Clause of
these Conditions,
c) exceptionally adverse climatic conditions,
d) Unforeseeable shortages in the availability of personnel or Goods caused by
epidemic or governmental actions, or
e) Any delay, impediment or prevention caused by or attributable to the Employer the
Employers Personnel, or the Employers other contractors.
If the Contractor considers himself to be entitled to an extension of the Time for
Completion, the Contractor shall give notice to the Engineer in accordance with Sub Clause
20.1 [Contractors Claims]. When determining each extension of time under Sub-Clause
20.1, the Engineer shall review previous determinations and may increase, but shall not
decrease, the total extension of time.
EOT Claims have the easiest to calculations, it is a modest summation consist of the costs
of all (preliminaries) equipment, machineries, non-productive plant and staff plus a daily
charge for all related overheads of the head office for the actual contract period of the
delay.
According to the Excell Consulting International (2014) Delay Claims include, but are not
limited to:
Extended project management support
Extended engineering staff
Extended project and home office overhead, and general conditions costs
Idle tools and equipment, and
Direct costs of the change work directly affected by the delay
Contractors may maximize their recovery of EOT claims and disruption claims by applying
following ethics:
Reporting the client and reserving contractual rights to reclaim
Recognizing effects relative to delay and disruption as they befall
Understanding the suitable contract clauses which allow recovery in general
conditions
Verifying damages with reliable and acceptable schedule and cost data.
Quantity Surveying Practice
Assessment 01 | 12

Figure 6.2.1.1 Contractual Procedure in Traditional Procurement Method
Source: UNMESH D (2012)

6. Task 2.1
Procurement is a procedure of finding goods and services. Every industry has following
procurement system to obtain the goods and services/ facilities. There are so many
procurement system available in current industry. The selection of suitable procurement
method for proper situation is compulsory. Because the procurement methods are playing
a major role in defining contractual parties involved in the project.
As the data given in task is saying, A client has approached you (author), seeking advice
regarding suitability of Construction Management for the procurement of a new research
laboratory complex building located in a main city center. As a data the client is
inexperienced and the project is technically complex. Assumption has to apply to advise
the client is fair detail given by client related to the project.
Alan. F (2012) states that Procurement types cover various aspects including below.
How are the funds to be obtained
How is design to be carried out
How is construction/production to be arranged
Who is to have the managerial role to oversee or supervise the project
Who is to use the finished building/product
Before choosing suitable procurement system the employer necessity to study their
project scope and objectives grounded on their requirements, the procurement selection
can be vary. Task data summary are given below.
Technically Complex
Inexperienced client
Laboratory complex at City center
6.1.Procurement Methods
Common procurement methods what uses in construction market are explained below.
6.2.1. Traditional
Traditional method can be define, the Employer hires the Contractor to deliver a required
scope of works for a fixed price lump sum. And the responsibility for the design and the
consultant team is suggested by the Client. Figure 6.2.1.1 shows the contractual procedure
of traditional procurement method.







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Assessment 01 | 13

6.2.1.1.Advantages
Completely pre designed and specified
Estimation risk are very low
Easier to control
Early commitment to maximum prices
Certainty of project cost
Several Readymade contracts available for varied construction

6.2.1.2.Disadvantages
Length of time from inception through to completion
Limitation on the procurement advice
Mismatch between design and construction
This procurement method most suitable for: All clients, including inexperienced clients,
Complex projects and Quality design development. And not suitable for fast track
construction.
6.3.1. Design and Build
This type of procurement stands, Contractor provides a completed building to an
established cost and programme. Responsibility for design and construction should take by
contractor. Following three types of design and build preparations,
The Employer-led design,
Contractor-led design and
Other design and build options.
In this method the major threat is, Client doesnt specify clear requirement of the project
and contractors will use their own way to complete the project. This can be cheapest
procurement method rather than others. This procurement method is most suitable for fast
track construction and not suitable for complex buildings. . Figure 6.3.1.1 shows the
contractual procedure of design and build procurement method.









Figure 6.3.1.1 Contractual Procedure in Design & Build Procurement Method
Source: UNMESH D (2012)
Quantity Surveying Practice
Assessment 01 | 14

Figure 6.4.1.1 Contractual Procedure in Management Contracting Procurement Method
Source: UNMESH D (2012)

6.3.1.1.Advantages
Can choose Familiarized contractor to be done the job
One party responsibility (contractor responsible for everything)
Client can deal with contractor directly
Design is in completion
Less construction information required from client

6.3.1.2.Disadvantages
Variations are much more expensive
Client doesnt know whether he is getting his value of money
Tendering expenses to contractors
Design liability can be limited
Best designer cant be best builder and vice-versa

6.4.1. Management Contracting
6.4.1.1.Management Contracting
Most widely this procurement is a fast track approach where some components of
construction procedure starts before completing the design of the project. Management
Contractor is providing charge of complete project comprising the design and build ability
in return of a fee. Here the management Contractor assigns individual sub-contractor to be
work done by dividing work packages.
6.4.1.2.Construction Management
Mostly similar to the Management contracting but here sub-contractor assign by the client
directly.
Figure 6.4.1.1 shows the contractual procedure of Management Contracting procurement
method.










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And there are so many procurement method in business market since above three
procurement are most famous rather than others. For an information following
procurements little likely in the industry
Package Deal
Turnkey
Project Management
Management Fee
Design and Manage
Develop and construct
Measured term contract
For this task, the client want a laboratory complex in city center and he is inexperienced
with procurement also. Even the data says the project should be technically complex. As
Quantity Surveyor author can suggest Traditional Procurement system to carry out the work
successfully. Traditional procurement always deals with the complex project as laboratory
projects. Client can certain about the cost. Design and all specification must be ready before
commencing the work. Though the traditional procurement is the perfect procurement for
above required project.

7. Task 2.2
7.1.Dispute Resolution
From the beginning Quantity Surveyor is acting as a lawyer between the two construction
parties while disputes arising. In earlier litigation applied for courts to resolving disputes
among the construction industry. Meanwhile it was eat the money and time. All the parties
struggle to complete their projects in required time. Some disputes judgment take few
months and some more took year to year. Though the construction industry has to find
ultimate way to resolve this kind of disputes in house. Ultimately Alternative dispute
resolution (ADR) techniques rise among the construction industry.
7.2.Alternative dispute resolution (ADR)
Alternative dispute resolution (ADR) methods are gradually being applied instead of
litigation to resolve even the toughest of construction disputes. Selecting ADR can
assistance to avoid extensive and costly litigation. It can be speedup the conclusion of
disputes with flexibility and low cost. There are five famous ADR system shown below,
Arbitration
Negotiation
Mediation
Adjudication
Conciliation


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7.2.1. Arbitration
RICS (2012) states that Arbitration involves the parties agreeing to refer the dispute to a
third party (the arbitrator) and agree to be bound by the arbitrators decision. Arbitration
is an alternative dispute resolution system and the parties will appeared together in front of
an arbitrator or panel of Arbitrators.
Its the greatest intrusive form of third party intervention. Arbitrator infrequently efforts to
simplify settlement, but is commonly engaged to resolve the dispute for all. It can be as
confrontational like litigation, but it has more advantages of being low cost, and it delivers
faster result.
FIDIC (1999) includes the arbitration clauses to refer construction parties as below,
Clause 20.6 Arbitration
Unless settled amicably, any dispute in respect of which the DBs decision (if any) has not
become final and binding shall be finally settled by international arbitration. Unless
otherwise agreed by both Parties:
a) arbitration proceedings shall be conducted as stated in the Particular Conditions,
b) if no arbitration proceedings are so stated, the dispute shall be finally settled by
institutional arbitration under the Rules of Arbitration of the International Chamber
of Commerce,
c) the dispute shall be settled by three arbitrators, and
d) The arbitration shall be conducted in the language for communications defined in
Sub-Clause 1.4 [Law and Language]. The arbitrators shall have full power to open
up, review and revise any certificate, determination, instruction, opinion or
valuation of the Engineer, and any decision of the DB, relevant to the dispute.
Nothing shall disqualify the Engineer from being called as a witness and giving
evidence before the arbitrators on any matter whatsoever relevant to the dispute.
Neither Party shall be limited in the proceedings before the arbitrators to the
evidence nor did arguments previously put before the DB to obtain its decision, or
to the reasons for dissatisfaction given in its notice of dissatisfaction. Any decision
of the DB shall be admissible in evidence in the arbitration.
Arbitration may be commenced prior to or after completion of the Works. The
obligations of the Parties, the Engineer and the DB shall not be altered by reason of
any arbitration being conducted during the progress of the Works






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ICDAD SBD 2 (2007) includes the arbitration clauses to refer construction parties as
below,
Clause 19.7 Arbitration
a) Any dispute of whatever nature arising from, out of or in connection with
agreement, and interpretation thereof, or the rights, duties, obligations or
liabilities of any Party, or the operation, breach, termination, abandonment,
foreclosure or invalidity thereof, shall be referred to by either Party to
arbitration for final settlement, in accordance with the Arbitration act no11
of 1995, or any amendments thereof,
b) Pending the award in any arbitration proceedings hereunder,
I. This Contract and the rights and obligation of the Parties shall
remain in full force and effect and
II. Each of the Parties shall continue to perform their respective
obligation under this Contract. The termination of this Contract shall
not result in the termination of any arbitration proceedings pending
at the time of such termination nor otherwise affect the rights and
obligation of the Parties under or with respect to such pending
arbitration.
c) Any award rendered by the arbitral tribunal shall determine the extent to
which the cost of arbitration is to be borne by each Party. The arbitrator
center charges (if any) and the compensation to the arbitrator shall be
equally shared by the Parties initially.

7.2.2. Advantages of Arbitration compare to litigation
Flexibility - Most flexible than litigation. The parties can choose their arbitrator
where arbitration is held. It can complete politely and very soon, and having
minimum trouble to ordinary Business.

Speed & Low Cost -The litigation eat as much time and money. In litigation,
payments for Attorneys/solicitors are very high and should pay several times. In
other hand the arbitration is preferred low cost and faster than court procedure.
Nevertheless charges for Arbitrator quite expensive, but it can save time.
Privacy This always happening at back to the door. So media or public couldnt
recognize the disputes. Privacy and security for all information regarding disputes
protect from public. In other hand litigation happening in public courts though the
privacy damage on the spot.





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8. Conclusion
Quantity Surveyor is playing major role in construction industry. As a measurer he taking
of measurements and material take off. As an accountant he is preparing final accounts,
value engineering, life cycle costing, cost controlling and other cost control planning. As
economist he advises client regarding budget, life cycle cost and selecting procurement. As
a lawyer he resolve the disputes between two parties, preparation of contract legal
documents and etc. It can be vary at traditional stage, modern stage and future practices.
Understanding the construction programme is important to the modern Quantity surveyor.
Analyzing critical path in programme, take remedy action to catchup the scheduled
programme and allocating resources at required time are strategies to be good Quantity
Surveyor.
Preparation and understanding about Delay Claims and Disruption claims is very important
process in construction industry. Quantity Surveyor should thorough about using formula
to settle out claim. QS should understand what delays can be apply to EOT claims are.
Selecting of contract procurement is effect the construction project vastly. Project by
project procurement can be change. Understanding about procurement methods is very
important to every QS professionals. Because he is the person who need to advise the
investor or client on selecting suitable procurement.
Disputes are common think in construction industry. There are so many ways to resolve
the disputes. Litigation and ADR methods are the most famous system to resolve the
disputes. Quantity Surveyor is the key role in dispute resolution, though QS must thorough
with those system and he should know which system must effectiveness and efficiency in
construction industry. ADR methods most flexible, speed and low cost way in dispute
resolution compare to the litigation.












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9. References
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