TRADITIONAL & MODERN

QUANTITY SURVEYING
PRACTICE
Lecture by
Upul S. Ranaweera
PG Cert. in Arb., BSc. (Hons) QS, Dip. in Eng., IEng., MIIES, MAIQS, MRICS

Chartered Quantity Surveyor

Contract Manager
RICS - Assessor/Counsellor
AIQS - Assessor/Counsellor
4 April 2015

Origin of Quantity Surveying

Origin of Quantity Surveying dated back to ancient Egyptian

civilization who used to dedicate personnel to carry out
estimates and costing for their magnificent structures and
buildings (such as pyramids).
Quantity Surveying developed in to a occupation during 17th
century for the restoration of London after the Great Fire.
In 1836 the Quantity Surveying profession received a
recognition when the new Houses of Parliament of Great
Britain, designed by Sir Charles Barry, became the first major
public contract to be fully measured and tendered using
detailed bill of quantities for financial accountability

TRADITIONAL QUANTITY SURVEYING

PRACTICE
In olden days the duties of a Quantity
Surveyor were limited to:a) measuring quantities or surveying
quantities for proposed construction works to
arrive the value of the proposed works
and
b) measuring quantities or surveying
quantities to arrive the value of the
completed works.

TRADITIONAL QUANTITY SURVEYING

PRACTICE
This scope has been extensively evolved and
currently the Quantity Surveyor has to undertake
not only the above conventional Quantity
Surveying works but to perform overall cost
management role in the Construction Industry.
Now the term Quantity Survey is evolving as
Construction Cost Directors/Construction Cost
Managers in the Construction Industry. The
history of the Quantity surveyor from the middle
of the seventeenth century.

TRADITIONAL QUANTITY SURVEYING

PRACTICE
This traditional role, that is still practiced by
some and especially by small to medium
sized projects can be briefly described a
measure and value system. Approximate
estimates of the initial cost of building are
prepared using a single price method of
estimating, and where this cost was
acceptable to the client then the design was
developed by the architect.

TRADITIONAL QUANTITY SURVEYING

PRACTICE
Subsequently the Quantity surveyor would
produce bills of quantities for tendering
purposes, the work would be measured for
progress payments and a final account
prepared on the basis of the tender
documentation (see Fig. 1.1for Traditional
Quantity Surveying activities)

TRADITIONAL QUANTITY SURVEYING PRACTICE

- Figure 1 - Traditional Quantity Surveying activities
1. Preliminary cost advice (approximate estimates)
2. Cost planning/cost controlling during planning
3 . Procurement /Standard Form advice
4. Measurement and quantification leading to preparation of Bill of Quantities.
5. Preparation/compilation of Tender/Contract documents.
6. Tendering and Estimating
7. Cost control during construction
8. Interim valuations and payments
9. Financial statements ,Discharge and Final Accounts
10. Settlements of contractual claims and dispute resolution

1. Preliminary cost advise(approximate estimates),Life

Cycle Cost, Cost Benefit analysis, Cost moduling etc.

At the very inception of a construction project,

the prospective Employer required know to
what will be the budget/approximate
estimate of the prospective project and other
cost impacts;
to get a decision, whether to go ahead or to
amend the scope or to post phone or cancel
the project.

1. Preliminary cost Cond.

The Quantity Surveyor with his vast knowledge
in construction cost and considering the present
day market conditions and changes in social
, political and economic conditions he will give
his cost prediction.
Refer module COST STUDIES for details

2 Cost planning and Pre contract cost controlling

If the predicted approximate estimate is

within the limit of his purse and considering
other factors the Employer will requested
the Engineer/Architect to proceed with the
developing of required drawings and other
tender documents.

2 Cost planning and Pre contract Cond

During this period the Quantity Surveyor has

to a another vital duty called cost planning
and pre contract cost controlling.
The following techniques are used when
performing cost planning
1) Elemental cost planning
2) Comparative cost planning
3) Cost plan in use.
Refer module COST STUDIES for details

3. Advice on suitable Form of Contract and suitable

Procurement Method.
The following are some of the Standard leading form
of contracts
* JCT form (Joint Contract Tribunal).
* FIDIC form (International form)(Federation
Internationale Dse Ingenieurs Counseils.
* NEC form (New Engineering Contacts)
* ICTAD form (Institute for Construction Training and
Developments Sri Lanka) (SCA/1,SBD/01( Contract
10million to 100 million),SBD/02(Contract over
100million)SBD/03 (Contract up to
10million),SBD/04(For Design & Build Contracts)

3.1...suitable Procurement Method.

The following are some of the leading

procurement methods
* Traditional methods
* Design and build
* Management contracting
* Construction management
* Build, operate and transfer (B.O.T)
(Financial Arrangement)

4. Measurement and quantification leading to

preparation of Bill of Quantities
The Bill of Quantities is a document which consisting
of list of adequately described work items along
with the accurate quantities with related units or
money allocations displayed under different trades
in accepted sequence to indicate the entire scope of
works of a project and will have to be prepared by
a Quantity Surveyor in accordance with the rules
and recommendations laid down in one of the
reputed Standard Method of Measurements.
SMM7,CESSM3,POMI etc.

4. Bill of Quantities - The objects

a) To provide the uniform information of the quantities
of work as to enable tenders to be prepared
efficiently and accurately.
b) Help Employers/ Consultants for Apple to apple
comparison of the Tender.
c) When a Contract has been entered into, to provide
for use of the priced Bill of Quantities in the
valuation of work executed under original scope,
and to use as a based in valuing any future varied
Works.

5. Preparation/Compilation of Tender/Contract
documents/ Tender (Bid) Documents

Tender(Bid) Documents
* Form of Tender( Bid) with Appendix
* Form of Agreement (Agreement)
* Information and Instructions to Tenderers
* Particular Conditions (Part 2)(Contract Data)
* General Conditions of Contract (part 1)
CONTD..

5. Preparation(Compilation) of Tender, Contract

documents, Tender (Bid) Documents Cond

* Particular Specifications
* General Specifications
* Drawings
* Bill of Quantities/Schedule of rates
* Specimen Standard Forms (Bonds &
Guarantees)

5. Preparation(Compilation) of Tender, Contract

documents, Tender (Bid) Documents Cond

* Duly filled and signed above mentioned

Tender Documents PLUS
* Memorandum of Understanding/Letter of
Intent (If any)
* Letter of Acceptance (ACCEPT)
* All pre-tender and post-tender
correspondence (Prior to issuing Letter of
Acceptance.) (Note : optional- explain)

6. Tendering & Estimating

All Quantity Surveyors are essential to be
Estimators .But all Estimators are not essential
to be Quantity Surveyors.

6. Tendering & Estimating Cond

Calling tenders ,Opening tenders ,tender
evaluation based on predetermined estimate,
Preparing reports on tenders are to be done
by the architects/contract administrators
quantity surveyor where estimating and
converting scientifically prepared estimate to
tender after considering various factors (site
visits reports ,capacity ,amount of provisional
sums ,professional team etc.) by the
contractors quantity surveyor.

7. Cost control during construction

During the construction period the Quantity
Surveyor should advise the Architect/Contract
Administrator ,before issuing the Variation
Orders by preparing the variation accounts to
predict the cost changes due to prospective
variation orders and other required cost
controlling works such as cost reports
,comparative cost options etc. (Cost Report to
the Employer by predicting the anticipated
final account)

7. Cost control during construction Cond..

During the construction period the Contractors
Quantity Surveyor should advise the
Contractor by preparing cost proposals,
cost/value comparisons ,loss /profit
predictions , anticipated final value and
anticipated final cost (Cost Reports to the
Contractor)

8. Interim valuations and payments

After establishing the Contract the
Contractors are entitled to claim the value of
work executed and other values such as
Materials on Site, Variations ,Adjustments of
Provisional Sums, Cost fluctuations , Claims
,Recovery of Advance Payments ,Liquidated
damages as stipulated in the Contract.

Hence the Contractors Quantity Surveyor has

to prepare and the Architects /Contract
Administrators Quantity Surveyor has to
certify.

9. Financial statements ,Discharge and Final

Accounts
Providing financial statement as various
stages during the construction period as
specified in the contract and agreeing all work
done under original scope ,variation orders,
provisional sums, fluctuation claims (if any) and
other all general claims the quantity surveyor is
completing the final accounts and obtain the
Contractors agreement and the statement of
discharge

10. Settlements of contractual claims and

dispute resolution
Giving notices, contemporary records,
disruption claims, Extension of Time claims,
amicable settlements to be done . Dispute
resolution activities also to be handled

1. Modern Quantity Surveying Practice

1. Investment appraisal
2. Advice on cost limits and budgets
3. Whole life costing
4. Value Engineering
5. Risk analysis
6. Insolvency services
7. Cost engineering services
8. Sub contract administration
9. Technical auditing
10.Project management
11.Facilities management
12.Advice on contractual disputes
13.Employers agent
CONTD.

1. Investment Appraisal
One of the key areas of long-term decisionmaking that firms must tackle is that of
investment - the need to commit funds by
purchasing land, buildings, machinery and so
on, in anticipation of being able to earn an
income greater than the funds committed. In
order to handle these decisions, firms have to
make an assessment of the size of the outflows
and inflows of funds, the lifespan of the
investment, the degree of risk attached and the
cost of obtaining funds.

The main stages in the capital budgeting

cycle can be summarized as follows:
* Forecasting investment needs.
* Identifying project(s) to meet needs.
* Appraising the alternatives.
* Selecting the best alternatives.
* Making the expenditure.
* Monitoring project(s).

2. Advice on cost limits and budgets,

There is one thing that is definite, if you are
entering into a realty investment that
involves construction, you need a well
defined budget. You do not want to be ball
parking the figures particularly if you are
going to be arranging financing to carry
out the construction.

It is imperative that you know your

construction budgets limits. If you dont then
you could end up with a building partially
finished, with no money to carry on, and
end up in a most disastrous financial
situation.
Refer module COST STUDIES

3. Whole life costing

Whole-life cost, or Life-cycle cost (LCC),
refers to the total cost of ownership over the
life of an asset. Also commonly referred to as
"cradle to grave" or "womb to tomb" costs.
Refer module COST STUDIES

4. Value Engineering
Value Engineering can be defined as an
organized approach to providing the
necessary functions at the lowest cost
From the beginning the concept of value
engineering was seen to be cost validation
exercise, which did not affect the quality of
the product. The straight omission of an
enhancement or finish would not be
considered as value engineering.
Refer module COST STUDIES

5. Risk analysis
No construction project is risk free. Risk can be
managed, minimized, shared, transferred or
accepted. It cannot be ignored Sir Micheal
Lathem
The Quantity Surveyor should advice on risk in
construction and take steps to manage the risk
at minimum cost.
Refer Module on Production Organisation

6. Insolvency services
The construction industry is responsible for
more than its fair share of bankruptcies and
liquidations. Limited liability companies
become insolvent and then go into
liquidation. The Quantity Surveyors expert
knowledge in cost, he will help to perform the
insolvency services.

7. Cost engineering services

Cost engineering is an area of engineering
practice concerned with the "application of
scientific principles and techniques to
problems of cost estimating, cost control,
business planning and management science,
profitability analysis, project management,
and planning and scheduling."

Cost engineering practitioners tend to be:

specialized in function (e.g., cost estimating,
planning and scheduling, etc.); focused on either
the asset management or project control side of
the process; and focused on a particular industry
(e.g., engineering and construction,
manufacturing, information technology, etc.); or
asset type (e.g., chemical process, buildings,
software, etc.).

8. Sub contract administration

The Contractors Quantity Surveyor should
have ability to select, control, and manage its
subcontractors.
Making a proper letter of invitation to obtain
proper quotation
Evaluation
Sub-contract agreement
Certifying valuations
Final accounts
Discharge

9. Technical auditing
Compare the final account with contract bills
Examine the records available
Discuss aspects with relevant staff
Examine the procedure used
Prepare a report on the findings

10. Project Management

Currently, potential investors prefer to have
Quantity Surveyors to handle project
management services since cost factor is more
prominent among the factors; QUALITY, TIME
and COST

11. Facility Management

One of the simplest and most direct definition
of facilities management is that given by the
Royal Institution of Chartered Quantity
Surveyors ,which states that FM involves the
total management of all services that support
the business of an organization and identifies
the opportunity that this relatively new
discipline provides to the Quantity Surveying
profession.

12. Advice on contractual disputes

Due to the specialist knowledge in contract
conditions his advices are requested to solve
contractual disputes.

13. Employers Agent

Services of quantity surveyors are requested
by the Employers to act as the Employers
`Agent considering quantity surveyors
knowledge in various disciplines related to
construction industry specially with related to
construction cost.

RICS Professional Regulation and Consumer

Protection department
February 2000
Professional ethics guidance note

ETHICS & VALUES OF A QUANTITY SURVEYOR

RICS has a set of central values it expects
members to apply in their work. Following this set
of values is one of the key features that defines
the professionalism of all chartered and
technical surveyors. You must base all your
actions and judgments on these core values:

1. Act with integrity. Never put your own gain

above the welfare of your clients or others to
whom you have a professional responsibility.
Respect their confidentiality at all times and
always consider the wider interests of society in
your judgments.

2. Always be honest. Be trustworthy in all that

you do never deliberately mislead, whether by
withholding or distorting information

3. Be open and transparent. Share the full

facts with your clients, making things as plain
and intelligible
as possible.
4. Be accountable. Take full responsibility for
your actions, and dont blame others if things
go wrong

5. Act within your limitations. Be aware of the

limits of your competence and dont be tempted
to work beyond these. Never commit to more
than you can deliver.
6. Be objective at all times. Give clear and
appropriate advice. Never let sentiment or your
own interests cloud your judgement

7. Always treat others with respect. Never

discriminate against others.
8. Set a good example. Remember both your
public and private behavior could affect your
own, RICS and other members reputations

9. Have the courage to make a stand. Be

prepared to act if you suspect a risk to safety or
malpractice of
any sort

Any Questions in QS Practice?