Quantity Surveyors career potential as construction project managers

Quantity Surveyors’ career potential as construction

project managers

Michelle Burger

Department of Construction Economics University of Pretoria

Pretoria, South Africa michelle.burger@up.ac.za

Roelof Jonkers

Abstract— The main focus of a quantity surveyor is that of cost and contractual specialist. However, the knowledge gained through quantity surveying studies offers the potential to pursue a further service delivery that can be offered to clients – that of construction project manager. This paper is a literature review of quantity surveying and the quantity surveying knowledge base investigating the current and future services of the quantity surveyor. Attention is paid to the technical knowledge required for construction project management and whether quantity surveying knowledge will qualify individuals to work as project managers. It offers a literature review and a review of the identification of works for both quantity surveying and project management. Through this it becomes clear that the knowledge base of quantity surveyors make them suited candidates for construction project management.

Keywords- Quantity surveying, construction project management, career

I. INTRODUCTION

The quantity surveyor was once under threat for the professions demand for services due to the recession in Europe around the 1980’s. But times changed and the profession is still in operation on a wide basis around the world. The profession does however suffer under trends of fee cuttings and enormous amounts of discounts offered due to high fee competition amongst the professionals.

This trend is detrimental to the industry and therefore the quantity surveyor has to evolve constantly and possibly explore areas of interest within their definition and knowledge base. This trend makes for opportunists to come forward with better ideas and face the challenges of making the opportunities a success.

This study will therefore explore the possibility of quantity surveyors offering a combination of services within their knowledge areas. The specific area studied is project management. Due to the high influence that cost has on the decision making process, the research will try to indicate how important the holistic approach in quantity surveying is and cost budgeting in containing a project within it’s said deliverables.

II. BACKGROUND

Quantity surveying is a specialized field that primary lends itself to financial and contractual management of construction projects offering a distinct service in the built environment.

However, in addition to this it also has a broad spectrum of services that can be offered by the individual going into this field of study [1]. A competent quantity surveyor must have a range of skills, knowledge and understanding which can be applied in a range of contexts.

Furthermore the work environment is not static but changing. As the Royal institute of charted surveyors (RICS) would suggest, continued change in the nature of client demand and the competitive environment for construction services requires change in the knowledge base at the core of the professional practice [2]. This is essential as the primary aim should be to satisfy the clients’ needs [3]. Clients want readily purchasable design, procurement and management of construction. They question the relevance of some professional services and knowledge and they tend to challenge the worth of many of their functions, this includes quantity surveyors [4].

Quantity surveying goes through periods of higher or lower demand. This is influenced by a countries economic position. Thus companies need to be proactive [5] and explore additional consultancy services such as project management. This will offer extra contract possibilities to a quantity surveying firm.

III. QUANTITY SURVEYING KNOWLEDGE

The most important core functions for a quantity surveyor is to deliver a Professional service in [6]:

 Cost advice and planning;

 Project procurement and documentation;  Tendering and contractual relationships;  Contract services;

 Specialist skills related to quantity surveying services;  Quantity surveying related to engineering services; and  Building and construction/property development The traditional services offered are cost advice, procurement and management and cost control.

IV. CLIENT NEEDS & EXPECTATIONS FROM QUANTITY SURVEYORS TRADITIONAL SERVICES

Clients want readily purchasable design, procurement and management of construction. They question the relevance of some professional services and knowledge and they tend to

challenge the worth of many of their functions, this includes quantity surveyors [4].

A. Cost advice:

“Clients need early and accurate cost advice…”. This relates back to one of the important factors that one of the quantity surveyors first objectives is to be a first point of contact rather than the sole one. This does of course not relate to project management if seen from a purist view of quantity surveying perspectives, but viewed from a project managers view with a background of quantity surveying this might be very beneficial as explained hereunder being appointed early on regarding feasibility studies of the project at the design phase.

Cost advice is to be provided at a stage well in advance of site acquisition and before the commitment to build arises [4], hence the quantity surveyors need to be involved at an early stage. In helping to define the clients’ financial requirements, quantity surveyors are exerting a big influence on any resulting design. This requires as previously stated for the aspects of construction project management to not only have knowledge of construction costs, but also knowledge of the property market and the ability to anticipate and visualize the clients need and requirements. Seen in the context above, cost estimation is considered a highly professional service, requiring the exercise of a high level of expert discretion and judgment in an industry where conditions vary considerably at the cost of no time.

B. Procurement:

As RICS state; provisions made for independent procurement advice together with the co-ordination and management of the procurement process is a highly valued service, much in demand as one of the project management knowledge areas. A quantity surveyors strong presence in its origins of quantification: part of the compiling of the Bills of Quantities is to procure competitively priced construction works. But the more recent consultant quantity surveyor has expanded their services to include professional advice on appropriate procurement methods and the management of the process. This service has deviated much from the basically technical approach that the quantity surveyor is appraised to do, to a more pro-active approach of current and future value for quantity surveying and project management services.

Quantity surveyors are experts in the procurement of building works [4]. Indeed many quantity surveyors suggest that they are procurement managers rather than quantity surveyors. During the procurement process the quantity surveyor adds extra value due to writing specifications for this process.

C. Management and cost control:

The financial management of the construction industry has been widely questioned on who carries the responsibility. Clients want companies and professionals involved in the construction process to accurately commit to the costs they expect for the delivering of their services and products. Additionally to this the client likes to have a bit of flexibility to add value to their business should the opportunity arise to do so by requesting changes in the design and construction, a

process many quantity surveyors knows of and duly anticipates for in the cost estimates by making use of but not restricted to contingency amounts.

Clients look to many construction professionals including the quantity surveyors for the providing of services for project management in this regard. Generally however the quantity surveyors expertise regarding cost advice and planning attracts a client to use their services for the project management role, more so than the reputation for multi-disciplinary knowledge and skills. In particular, knowledge of construction combined with site experience is important for effective project management and needs to be acquired by the quantity surveyor [4].

V. POSSIBLE FUTURE SERVICES

Clients in the construction industry needs will change as such to accommodate the shifts in the economy. These shifts may include various professions rethinking their main aim with regards to their services delivered, the cost thereof, efficiency of the delivery of such services and needs for those services in an increased demand for new innovative methods of providing services at a lower cost.

The current trend for professional services costs in the construction is fluctuating heavily the last decade or so. The economy is not on a definitive rise with the industry varying, profitable outlooks for the building and construction industries are rather very speculative. This drives the needs for clients in an already difficult market to invest in personnel, be it professionals or a tradesman or technician whose fees are not as high as the standard rates would indicate in the fee scales as published by the SACQSP. This statutory body provides for the legislation with regards to these fees and currently we experience the practice of discounts being offered by quantity surveyors on a wide scale to accommodate clients but they still have to cover their own expenses at these reduced rates. This practice has led to unease under professionals and other non-professionals who offer their clients ridiculous prices and in reward the client gets a defective building or project delivered. This malpractice will only end if the needs for professional services rendered are evidential in the successful delivery of projects within the industry. This means that quantity surveyors must provide a service of exceptional standards to their respective clients through delivery of traditional services, but also broaden the services delivered by incorporating services such as project management very much underutilized by the average quantity surveying company. The client will get more out of the quantity surveyor whilst the quantity surveyor widens his field of expertise at a lower cost in relation to the appointment of a project manager and quantity surveyor who will definitely miss communicate items more frequently. A one point of responsibility is therefore a valid consideration, bringing the spectrum of services and cooperation of the many professionals on a project more.

VI. PROFESSIONAL KNOWLEDGE AND SKILL BASE OF THE QUANTITY SURVEYOR

What industry specific knowledge does the Quantity Surveyor have? The identification of work (a very distinct problem in the industry for various professions) indicates the type of knowledge a quantity surveyor should have to produce the works indicated, the IDoW is unfortunately still in draft stage (at the time of writing this paper) due to the difficulties in compiling and standardizing all the industries professions and their overlaps, but this document does present some clear facts on what the services provided for the scope of works for the quantity surveyor entails.

The quantity surveyors services which are attributable to most of the projects of the professional in the built environment, for example the generic services provided by the quantity surveyor specific to the built environment will be looked at in this paper firstly and secondly additional services. This document used to provide the information (still in the development phase) is the Identification of work to be performed by persons registered in terms of the Act of 2000.

As the paper suggests in the IDoW for the SACQSP [7] there can and there is a lack of comprehensiveness of the work that quantity surveyors perform, these can be seen as grey areas, all to the general detriment of the construction industry and or economy, be it with regards to the clients or the projects respectively.

The identification of work for persons registered in terms of section 18 of Act 49 of 2000 is formed for the following reasons:

 Optimizes the application of scarce, highly skilled human resources

 Minimizes a client’s financial risks  Promotes best value for money spent  And protects the public

The IDoW states that “Section 26 of the Act requires SACQSP to make recommendations to the Council for the Built Environment (CBE), regarding the work identified in terms of subsection (2) and prohibits a person not registered in terms of this Act to perform any kind of work identified for any category of professional registered in terms of this Act”

General competencies of the quantity surveyor by project work stages. Typically a construction project will consist of the following project work stages [7]:

A. Inception:

Project initiation and briefing: establishing the client’s requirements and preferences, assessing user needs and options, appointments of consultants, establishing the project brief including project objectives, priorities, constraints, assumptions, aspirations and strategies.

B. Concept and Viability:

Preparing and finalizing the project concept in accordance with the brief including the scope, scale, character, form,

function and preliminary programme and viability of the project.

C. Design Development:

Developing the approved concept to finalize the design, outline specifications, cost plan, financial viability and programme for the project.

D. Documentation and Procurement

Preparing the construction and procurement documentation, confirm and implement the procurement strategies and procedures for effective and timeous procurement of necessary resources for the execution of the project.

E. Construction

Preparation and co-ordination of the procedures and documentation to facilitate practical completion of the works; managing, administering and monitoring the contracts and processes, including the preparation and co-ordination of the procedures and documentation to facilitate practical completion of the works.

F. Close-out

Fulfilling and completion the project close-out, including the preparation of the necessary documentation to facilitate effective completion, handover and operation of the project.

The above stages are reflecting the outcomes to be achieved for the successful handover of a project to a client in the construction industry to be performed by various consultants in the industry. These consultants include but are not limited to the quantity surveyor and the project manager. Herewith a generic list of the services to be provided by the quantity surveyor in covering for the scope of works to be executed efficiently under the professions tasks set out by the SACQSP. This paper will limit the generic services to those that are required partly or wholly by the Construction Project Management Profession as in the SACPCMP. Recently the SACQSP have started to work with a standard form of contract for the services agreed upon between the client and the quantity surveyor. This form is the Professional Service Agreement, or in short the PROCSA agreement.

Furthers to the above is the fact that the IDoW document went into even more detail for establishing work overlaps set within the quantity surveying profession and the agreement of overlaps (still to be approved) to recognize the skills, competencies and knowledge bases of different professions that might include work to be done under the quantity surveying. Additional services for the fulfillment of duties under the scope of works for the Construction Project Manager regulated under the SACPCMP can be done by the quantity surveyor. These services are to be provided for the above identified stages in the project works, and are outlined in Annexure A here-in, as taken from the IDoW document.

Additional services provided by the quantity surveyor specific to Principal Agent duties, or that which inversely relates to project management as stipulated in the IDoW [7]:

Stage 1 services

 Establish the procurement policy for the project  Assist the client in the procurement of necessary and

appropriate other consultants including the clear definition of their roles and responsibilities

 Establish in conjunction with the client, other consultants and all relevant authorities, the site characteristics, rights and constraints for the proper design of the intended project

 Define the consultant’s scope of work and services  Conclude the terms of the agreement with the client  Facilitate a schedule of the required consents and

approvals

 Prepare, co-ordinate and monitor a project initiation programme

 Facilitate client approval of all Stage 1 documentation Stage 2 services

 Assist the client in procurement of other consultants  Advise the client on the requirement to appoint a

health and safety consultant

 Communicate the project brief to other consultants and monitor the development of the concept and viability  Agree format and procedure for cost control and

reporting by other consultants

 Prepare a documentation programme and indicative construction programme

 Co-ordinate concept and viability documentation for presentation to the client for approval

 Facilitate approval of the concept and viability by the client

 Facilitate approval of the concept and viability by statutory authorities

Stage 3 services

 Agree and implement communication processes and procedures for the design development of the project  Assist the client in the procurement of the necessary

other consultants including the clear definition of their roles and responsibilities

 Prepare, co-ordinate, agree and monitor a detailed design and documentation program

 Conduct and record consultants’ and management meetings

 Facilitate input required by health and safety consultant

 Facilitate design reviews for compliance and cost control

 Facilitate timeous technical co-ordination

 Facilitate client approval of all Stage 3 documentation Stage 4 services

 Recommend and agree procurement strategy for contractors, subcontractors and suppliers with the client and other consultants

 Prepare and agree the procurement programme  Advise the client, in conjunction with the other

consultants on the appropriate insurances

 Co-ordinate and monitor preparation of procurement documentation by consultants in accordance with the project procurement programme

 Manage procurement process and recommend contractors for approval by the client

 Co-ordinate the assembly of the contract documentation for signature

Stage 5 services

 Arrange site handover to the contractor

 Establish the construction documentation issue process  Agree and monitor issue and distribution of

construction documentation

 Instruct the contractor on behalf of the client to appoint subcontractors

 Conduct and record regular site meetings

 Monitor, review and approve the preparation of the construction programme by the contractor

 Regularly monitor performance of the contractor against construction programme

 Adjudicate entitlements that arise from changes required to the construction programme

 Receive, co-ordinate and monitor approval of all contract documentation provided by the contractor(s)  Agree quality assurance procedures and monitor

implementation thereof by the other consultants and the contractor

 Monitor preparation and auditing of the contractor’s health and safety plan and approval thereof by the health and safety consultant

 Monitor preparation of the environmental management plan by the environmental consultant

 Establish procedures for monitoring scope and cost variations

 Monitor, review, approve and issue certificates  Receive, review and adjudicate any contractual claims  Monitor preparation of financial control reports by the

other consultants

 Prepare and submit progress reports

 Co-ordinate, monitor and issue practical completion lists and the certificate of practical completion

 Facilitate and expedite receipt of occupation certificates

Stage 6 services

 Co-ordinate and monitor rectification of defects  Manage procurement of operations and maintenance

manuals, guarantees and warrantees

 Manage preparation of as-built drawings and documentation

 Manage procurement of outstanding statutory certificates

 Monitor, review and issue payment certificates  Issue completion certificates

 Manage agreement of final account(s)  Prepare and present a project close-out report

For this abovementioned set-out it can be recognized that the project management functions duly incorporated into the quantity surveyors functions without being registered under the SACPCMP. Therefore the quantity surveyor very effectively accommodates the skills and knowledge to efficiently produce services relating to the project scope of the everyday construction project.

VII. PROJECT MANAGEMENT AS A PROFESSION RELATED TO QUANTITY SURVEYING

Project management is the application of knowledge, skills, tools and techniques to project activities to satisfy the goals and objectives of the project. Project Management is accomplished through the appropriate application and integration of the 42 logically grouped project management processes comprising the five (5) process groups, these groups are [8]; initiating, planning, executing, monitoring and controlling and closing.

The managing of a project includes but is not limited to:  Identifying requirements,

 Addressing the various needs, concerns and expectations of stakeholders as the project is planned and carried out,

 Balancing the competing project constraints including some of the most important aspects namely; scope, quality, schedule, budget, resources and risk.

As the PMI [8] states, the role of the project manager is to achieve the objectives set out. Many of the tools and techniques used for managing projects are specific to project management. As in one of the very vexed areas of who should manage a project is the question on who has the right knowledge base and skills appropriate for effective management of the construction project. This as described in the RICS [4] is somewhat clearer due to the requirements for effective project management being that the clients requirements is very definite in that it requires a project manager very firm in their management style regarding the time, quality and cost criteria of the project.

Project management skills:

The rise of project management as a separate profession and the decline of the use of an Architect as the project leader have indefinitely produced strict competition in the market for project management services to be provided. Quantity surveyors now include project management as the services provided under their scope of works whilst some cover it in such depth as to only provide project management services. Additionally other professionals outside the construction industry have tried to enter the market, but this was highly criticized due to obvious reasons that construction project managers should have industry specific knowledge [9].

This indicates the need but also the capability of the quantity surveyors skills to effectively provide project management services. Although quantity surveyors have a unique understanding of construction costs as one of the nine knowledge areas in project management vital to successful project management, this needs also to be combined with the management skills related to decision making and communication.

Herewith below the nine project management knowledge areas that are of utmost importance to project management. Quantity surveyors should indefinitely relate directly to these areas of knowledge so as to provide for the need that exists in the project management field. The closer the quantity surveyor can relate to these, the better equipped he or she will be for the functions to be performed [8].

The Project management knowledge areas:  Project integration management  Project scope management  Project time management  Project cost management  Project quality management

 Project human resource management  Project communications management  Project risk management

The above nine knowledge areas can be subdivided into four core elements which determine the deliverable objectives of the project namely; scope, time, cost and quality [10].

From the above one of the four core elements are vital to the quantity surveyors functions. As the RICS [4] suggests for the future role of the quantity surveyor it is vital that the development need is catered for with regards to the client, because three areas are influenced where quantity surveyors importance are key to the success of the project. These are the greatest in areas of early cost advice, cost market forecasting and cost control.

The nine knowledge areas will also be discussed herewith as to how appropriate quantity surveyors knowledge bases are and their importance to the client’s current and future value in the services of quantity surveying.

The effective project manager also has to conform to the following technical skills if the individual sets out to do project management work. These technical aspects and knowledge areas have to be incorporated into possible studies and or training through courses or the relevant site experience. The required technical knowledge areas a construction project manager should have are [7]:

 Knowledge of construction science. This requires understanding of structures, building science, construction and building finishes and knowledge of building material.

 Knowledge of construction processes. This requires knowledge about site, plant and equipment, formwork systems, quality management, health and safety management, environmental management, organizational structures, general building sequences, general output and production factors and basic knowledge of building trades.

 Knowledge of the design process. This requires knowledge of the sequence of design processes and also the time needed for design processes

 Knowledge of financial and cost factors. This requires knowledge of financial processes and cost of construction.

By investigating the identification of works set out by the South African Council for Quantity Surveying (SACQS) and the technical knowledge areas identified by (SACPCMP) it becomes clear that the quantity surveyor, as cost specialist, has in-depth knowledge of various of the of the SACPCMP construction project management knowledge areas.

VIII. QUALIFICATIONS AND COUNCILS IN SOUTH AFRICA

A. The Quantity surveyor

In South Africa, the qualifications required to register as a professional quantity surveyor is a BSc and an Honours degree in Quantity surveying. The registration procedure can be done by studying towards becoming a quantity surveyor through various Universities and Technikons accredited or non-accredited for these studies by the SAQA.

B. Project manager

The SACPCMP (2013) states that for a student to be eligible to register under the student chapter he or she must:

 Be enrolled full/part time in an undergraduate/post graduate program with a major in building science or construction management.

 The student must be undertaking studies at a recognized university or tertiary institution.

An applicant who wishes to apply for registration as Candidate Construction Project Manager (C.CPM) shall possess one (1) of the following [7];

 An accredited Honors’ Degree in the Built Environment field of study

 An accredited B-Tech qualification in the Built Environment field of study with a minimum of one (1) years’ relevant post-graduate practical experience  An accredited National Higher Diploma in the Built

Environment field of study with a minimum of two (2) years’ relevant post-graduate practical experience  An accredited National Diploma in the Built

Environment field of study with a minimum of three (3) years’ relevant post-graduate practical experience  An applicant who wishes to apply for registration as a

Professional Construction Project Manager (Pr.CPM) shall possess one of the following;

 An accredited honours degree in the Built Environment field of study with a minimum of four (4) years’ relevant post-graduate practical experience.

 An accredited B-Tech qualification in the Built Environment field of study with a minimum of five (5) years’ relevant post-graduate practical experience.  An accredited National Higher Diploma in the Built

Environment field of study with a minimum of six (6) years’ relevant post-graduate practical experience.  An accredited National Diploma in the Built

Environment field of study with a minimum of seven (7) years’ relevant post-graduate practical experience. The South African Council for Project and Construction management professionals indicated that in order to register as a candidate project manager an accredited Honours degree in the built environment will be sufficient. When expecting the requirements an applicant needs in order to register as candidate construction project manager, it can be seen that a quantity surveyor will be able to register based on their qualifications. Thereby the quantity surveyors qualification opens up an easy entrance to construction project management. In addition to this, a quantity surveyors’ specialist cost knowledge may be well received in project management.

IX. CONCLUSION

As seen above a quantity surveyor can register for both a project management and quantity surveying professional membership as to perform the duties of both professions effectively, with the difference of the SACQSP trying to integrate the functions of a project manager into the existing functions for a fully registered quantity surveyor to be eligible to practice both quantity surveying and project management functions effectively at once.

As described it is of importance to recognize the broad functions of the quantity surveyor with regards to the field of project management. Also, how the two fields overlap with the potential of the quantity surveyor to be proficient in project management and providing for the current need of clients. By using the quantity surveyors existing knowledge base and in addition to provide services not rendered by the average quantity surveying company. This provides the much needed first point of contact and even more to their advantage the sole point or single responsibility. All the above is utilized to revolutionize the traditional quantity surveyor to be one who adds value to future construction projects. Further empirical research needs to be conducted to explore the knowledge overlapping between quantity surveying curriculum and the technical knowledge areas of a construction project manager.

The investigation into the benefit of specialist cost knowledge for project management is encouraged.

REFERENCES

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