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Thursday, June 16, 2016

Who is Quantity Surveyor

A Quantity Surveyor (QS) is a professional working within the construction field concerned with construction costs and contracts. There can be seen differences between past and future role of QS. In olden days the duties of a Quantity Surveyor were limited to; measuring quantities or surveying quantities for proposed construction works to arrive the value of the proposed works, and; measuring quantities or surveying quantities to arrive the value of the completed works. But currently the Quantity Surveyor has to perform the entire Construction Cost Management services in addition to above mentioned conventional duties.

Traditional role of Quantity Surveyor can be described as a measure and value system. Quantity Surveyor should prepared using a single price method of estimating, produce bills of quantities for tendering, measure the progress payments base on the work and prepare final account on the basis of the tender documentation. The following listed the traditional role of Quantity Surveyor:

ü Single rate approximate estimates
ü Cost planning
ü Procurement advice
ü Measurement and quantification
ü Document preparation, especially bills of quantities
ü Cost control during construction
ü Interim valuations and payments
ü Financial statements
ü Final account preparation and agreement
ü Settlement of contractual claims         
ü Approximate estimates
ü Earned value reporting
ü Budget estimating
ü Advice on tendering procedures and contract arrangements
ü Preparing tendering documents for main contract and specialist sub-contractor
ü Examining tenders received and reporting thereon or negotiating tenders
ü Pricing with a selected contractor and/or sub-contractors
ü Preparing recommendations for interim payments on account to the contractor
ü Preparing periodic assessments of anticipated final cost and reporting thereon
ü Measuring work and adjusting variations in accordance with the terms of the contract
ü Preparing final account, pricing same and agreeing totals with the contractor
ü Providing a reasonable number of copies of bills of quantities and other documents

More than traditional role it can be seen skills and knowledge of quantity surveyor in the past...here listed,

ü Planning, estimating and controlling costs, evaluating alternative designs, undertaking feasibility studies,
ü Measuring and describing construction work,
ü Analyzing complex projects into manageable work packages,
ü Producing contract documents, especially bills of quantities,
ü Advising on appropriate methods of procurement; selecting, organizing and evaluating tender bids and contractual arrangements,
ü Valuing work in progress, and exercising cost control during construction, undertaking the valuing of variations and potential variations,
ü Preparing valuations for insurance purposes and advising on insurance claims,
Sub-contract administration,
ü Settlement of final accounts,
ü Advice and settlement of contractual disputes and claims,
ü Use of computer technology and developing computer aided design techniques,
ü Advising on taxation, grant and financial matters and forecasting expenditure flows,
ü Advising on cost-limits and preparing budgets,
ü Advising on cash flow forecasting,
ü Advising on life-cycle costs,
ü Cost-analysis,
ü Cost benefit analysis,
ü Scheduling resources,
ü Planning and programming design and construction work, use of network analysis techniques, project and construction management,
ü Preparing and administering maintenance programmed.

Besides the above skills and knowledge, Quantity Surveyor had skills and knowledge such as construction economics, design and construction management technology, resource control, mathematical modeling, policy decisions, strategic planning, risk analysis, network analysis, other programming techniques, and to suit for the changing of working environment and economics.

In traditional Quantity Surveyor has a skill in measurement and valuation in the field of construction in order that such work can be described and the cost and price can be forecast analyzed, planned, controlled and accounted for. Most of their traditional roles are related to the cost, and most of their evolved roles are related to management and the cost. That means the roles of Quantity Surveyor would not leave the link to the cost and it would develop to the direction of management. Quantity Surveyor after gained the knowledge and experience in construction economics, management and resource control, he will evolve his role. These roles are policy making, numerate skills, strategic planning, contracting, work in construction management, multi-disciplinary working, diversity in procurement, life cycle costing and building procurement adviser. Encourage Quantity Surveyors use more new technology can get more benefit and experience. Additional and more specialist courses should be provide an education and training to people who want to become a professional Quantity Surveyor. Make more occupy in different company to Quantity Surveyor for their practice. Individual Quantity Surveyors, profession, the institution, in education and training, all parties should know their role to develop the field of Quantity Surveyor.

When summarized the changing scene in client requirement, economic and political. There is decline in new building and engineering work and an increase in repair, maintenance, energy conservation and rehabilitation work. Changing technology will affect the construction industry’s ability to design, erect and internally re-plan buildings more efficiently and economically. In the private sector, returns are low, Clients are becoming more critical and demanding in terms of both time-scale and cost for money and the profession must react accordingly. More Quantity Surveyors are being employed in resource and manpower planning, construction and project management and allied areas. Quantity Surveyor act as project and construction managers to perform wider management and co-ordination functions. They are employed by contractors, sub-contractors, building owners, property developers and others with a major input in management, resource planning and manpower control.
There are some changing of the roles of Quantity Surveyor between the past and the current. Some roles and responsibilities of Quantity Surveyor are same as the past. It is because some are the main roles and responsibilities of Quantity Surveyor such as measurement of works. Some roles and responsibilities are developed from time to time for the Quantity Surveyor to adapt the changing environment and keep the competitive. Thus, they need learn more knowledge and skills to achieve this objective. Here are some core services of Quantity Surveying are listed in the following...

ü Cost planning
ü Life cycle costing
ü Value management
ü Facilities management
ü Project management
ü Preliminary cost advice
ü Procurement methods
ü Contractual advice
ü Tendering
ü Valuation of construction work
ü Cost control & financial management
ü Financial claims & programmed analysis
ü Dispute resolution and insurance advice

Quantity Surveyors are cost management professional. Practiced surveyors can be appointed to act as experts in property rent review to discover the facts and relevant transactions. They can act as business adviser, property advisers, management consultancy and sole trader to work in the industry.

Financial Management, Computing, Project Management, Professional Practice/ Contracts, Communications, Languages, Law, Management, Value Engineering become more important, on the contrary, Land Surveying, Mathematics, Statistics, Structures will become less important for the Quantity Surveyor.                               
      
The Quantity Surveyor can design and produce new standard form of contract. The Quantity Surveyor also needs to communicate with other countries’ surveyor to get more chance and opportunities in the world.

Prepare contract and provide suitable procurement method, evaluate the cost and value of project or company, management different parties in the project or company are the some of responsibly of Quantity Surveyor. In the different stages of the project, Quantity Surveyor has different duties.

More than this, future role of quantity surveyors is expected following...

ü Investment appraisal
ü Advice on cost limits and budgets
ü Whole life cycle costing
ü Value management
ü Risk analysis
ü Insolvency services.
ü Subcontract administration
ü Environmental services measurement and costing.
ü Technical auditing
ü Planning and supervision
ü Valuation for insurance purposes
ü Project management
ü Administering maintenance programmed
ü Advice on contractual disputes.

Quantity Surveyor still acts as an important role in the construction industry in the current. Their skills and knowledge help them to bear the responsibilities and make many effects to the time, cost, quality and management of company in construction industry.

Chartered quantity surveyors are well placed to develop a construction management service and well on the way towards realizing this potential to adapt the changing of environment.

The professions are continued to exploit a wide range of employment opportunities. Quantity Surveyors are employed by clients, developers and contractors increasingly. Quantity Surveyors should satisfy client’s requirements by provides independent professional advice such as provide procurement advice for construction. Unique skill-base which combines procurement and cost management can provide a clear practice identity for Quantity Surveyors to develop in their direction.

Continue to develop Quantity Surveyors’ skills and knowledge particularly in strategic management, policy decisions, mathematical modeling and information technology can ensure that clients can have the best advice in selecting procurement techniques and management procedures for construction projects. Make more use of specialists in economics, statistics and construction management can seek to occupy senior management posts in major contracting organizations, other commercial firms and public sector.

Client demand for management-orientated valued-added services; the growing emphasis on value and the management of cost in the context of value criteria; the emergence of alternative procurement systems; increasing competition both within the profession and from outside are the responsibilities and liabilities of Quantity Surveyor.

As Quantity Surveyors, they should have the following skills include personal qualities, core skills and process skills. For example, they should included the personal qualities such as independence, adaptability, initiative taking, willingness to learn and ability to reflect on what has and what has not been achieved. For the core skills, Quantity Surveyor should included the ability to present clear information when in a group, self-management, critical analysis and the ability to listen to others. Computer literacy, commercial awareness, prioritizing, negotiating, acting morally and ethically, coping with ambiguity and complexity are the process skills of Quantity Surveyor should include.


Tuesday, June 14, 2016

Scientists to develop flying robots that can print buildings in disaster zones


UK researchers have been given more than $3m to try and develop robots that can swarm into disaster zones and print emergency shelters.

Universities and companies including BuroHappold and Dyson have four years to combine a suite of technologies – including autonomous drones, miniaturised 3D printing and artificial “swarm intelligence” – that would allow the robots to build life-saving structures in places that are too dangerous or difficult for construction teams to get to.

The concept sees swarms of drones scanning and modelling the landscape and using building information modelling (BIM) systems to print structures on the spot from scratch.

The researchers say that the world’s first “Aerial Additive Building Manufacturing System” (Aerial ABM) could even revolutionise conventional construction by miniaturising 3D print capability, giving it autonomy, and putting it in the air.

“In the first instance the drones would fly to the site and just observe what is happening,” explained Dr. Mirko Kovac, research leader and director of the Aerial Robotics Laboratory at Imperial College London in a podcast this week.

“Once the site has been identified where for example shelters would be needed, then we can create the virtual model on the computer offsite, away in a safe zone, then send the drones with those materials on board to, in swarms, construct those types of shelters.”

Kovac said the geometries of the buildings would most likely be domes or other self-supporting types of structures.

Swarms working together

The four-year project, which has received a $3.3m (£2.3m) grant from the UK’s Engineering and Physical Sciences Research Council, involves researchers from Imperial College, the University of Bath and University College London.

Industry partners include the innovative vacuum cleaner maker Dyson, engineering consultancy BuroHappold, contractor Skanska, Dutch 3D print firm Ultimaker, and the UK’s BRE Trust.

In a research brief, Imperial College London said it had already flown drones that can extrude 3D print material in the air, and had also simulated swarms of drones planning and making things autonomously and collaboratively.

With the grant, the team will now develop a real Aerial ABM system that will build walls and a freeform pavilion building. That will require breakthroughs in hardware, autonomy, materials science and structural engineering.

As well as being used in disasters, the team believes that Aerial ABM systems could eventually be used to cut time and cost in normal construction scenarios – by getting flying printers to repair or build where it would be awkward and expensive to put humans and equipment.

Kovac also believes Aerial ABM holds an important key to the notion of smart cities.
“If you think of the future smart city the question arises, what is smart about it?” Kovac said.

“One aspect of this smartness in the city is the sensing, the distributed knowledge, information, and intelligence. But it is also the reaction to that information. So in that context the drones can help to gather the information, to sense the environment, inspect structures, inspect buildings, for example, and then be used to repair or maintain those buildings, and eventually also to construct those buildings.”

Photograph: Drones are used for complex tasks today, but could they revolutionise construction by miniaturising 3D print capability, giving it autonomy, and putting it in the air? (Heidi Jong Baw/Getty)

Source: http://www.globalconstructionreview.com/innovation/scientists-develop-flying-rob7ots-ca7n-pri7nt/

Monday, June 13, 2016

Dubai’s ports giant to build Ecuador’s first deep-water harbour


Dubai based port operator has awarded $1.2bn contract to build a deep-water port on the site of the fishing village of Posorja near the mouth of the Guayas River by government of Ecuador.

DP World has agreed to construct the port on a build, operate, transfer (BOT) basis. The company will make an initial investment of $500m to buy land, dredge an access channel and build a 20km highway between Posorja and Guayaquil, the largest city in Ecuador.

When complete, the port will have a depth of 15m and an initial capacity of 750,000 containers a year. When fully built, this will increase to 2.5 million.

In return for its investment, DP World will run it on a 50-year concession. Construction is expected to begin in six to nine months and take 24 months to complete.

The decision has been controversial in Ecuador, as the government awarded the contract by direct hire, rather than going through a competitive bidding process.

Contencon, the company that has run the neighbouring container terminal at Guayaquil since 2007, has threatened to take legal action against DP World for unfair competition. Contencon is a subsidiary of Philippine port operator International Container Terminal Services.

Ahmed Bin Sulayem, the chief executive of DP World Group, said: “We’re delighted to extend our South American footprint with a major investment in Ecuador. The additional value it will bring to the economy is compelling, increasing competitiveness through the provision of modern container terminal services in central Ecuador.”

One of the principal exports of the new port is likely to be bananas: Ecuador is the largest exporter of that fruit in the world.

The presence of the port is likely to benefit the population of Posorja, where the fishing industry has declined as a result of pollution and the use of factory trawlers. Unemployment in the area is running at 60%.


Photograph: The site of the future deepwater port (Ecuador Defence Ministry)
Source: http://www.globalconstructionreview.com/news/dubais-ports-gi9ant-buil5d-ecuad5ors-deepwater/

Saturday, June 11, 2016

How S-curve help to Contractor

(Figure 01)

In many contracts, the owner requires the contractor to provide an S-curve of his estimated progress and costs across the life of the project. This S-shaped of the curve results because early in the project, activities are mobilizing and the expenditure curve is relatively flat. As many other activities come on-line, the level of expenditures increases and the curve has a steeper middle section. Toward the end of a project, activities are winding down and expenditures flatten again (Figure 01). The S-Curve is one of the most commonly techniques to control the project costs.

An S-curve can be useful as a means through which control of work can be affected. The minimum necessary information for this purpose id illustrated in figure 01. The cumulative budgeted expenditure that is the cost to be incurred by a contractor in construction is represented by the full-time of S-curve. The actual expenditure curves show the current cumulative cost at any point in time up until the present or time now.

The actual expenditure just exceeds the budgets time now in the figure 01. However, it may or not represent better progress than that expected. From the figure 01, the conclusion is that over budget has been incurred than was budgeted at time now. The progress is behind the budget. Cost is expended at a faster rate than budget and may cause cash flow problems.

Thus, overall attention needs to be paid to the efficiency of the work methods, productivity and financing. From figure 01, it will be seen that a forecast of expenditure to complete the work shows a likely final overrun, but will cause delay in completion of the project. The vertical axis of the S-curve graph is usually expressed in units of money. However, it is also can be expressed in terms of work content, for example, cubic meters of excavation, tones of structural steel erected, or man hours of work content for a particular operation or a group of activities.


For a project with a number of activities, it is much easier to use an S-curve for each one, to ensure that progress advances as require. It is practicable and useful to use a scale of percentages, the whole of the particular work under consideration expressed as 100 percent in addition to using units of work on the vertical scale. These types of scales obviate the need to change the total quantity of work involved when variation to it is scope occur.

Sunday, June 5, 2016

Why Cash Flow is important to Contractors?

The highly volatile construction market, the financial structure of contractors and the irregular peaking of demands for finance make building companies very vulnerable to temporary shortages of cash. The problem facing companies is therefore one of convincing the financier, usually a bank, of the fact that the shortage is only temporary. The bank would prefer to see a cash flow forecast of the type illustrated for each project and an aggregated forecast for the company as a whole.

Benefits of Cash Flow
Having a Cash flow is given numerous benefits to the contractor as follows. 
  • One of the important advantages is that cash flow can be used for taking initial decision on tendering.
  • Also it can be used as a basis for cost control of a particular project as well as for a specific organization.
  • Furthermore funds can be arranged for the project by means of a cash flow.
  • To get an idea regarding the profit flow during the construction.
  • Also it provides facilities to negotiate the payment terms with the client as well as to negotiate credit facilities with the supplier.
  • In addition to that by using a cash flow the amount of negative working capital against the time period can be known.

Thursday, June 2, 2016

How to do a cost-benefit analysis and how to interpret it for practical use

Data Given (Example)


  Lettable area – 80%           Estimated Rent - £ 85 per m² per month
  Construction period           - 18 months
  Short term Finance            - 17%
  Developer’s Profit             - 15% of GDV
  Land cost                           - £ 145,000
  Assumptions                      - Construction cost - £ 540 per m²
  GDV                                  - 15 Times of the land Cost


Analysis


a)     Estimated rent of £ 85 per square meter per month appears reasonable and assume that there is a greater demand for shop space in the location considered.
b)    According to the desired return of the Developer, the minimum gross floor area recommended is 2033 square meters. But, assume that the demand is more than the recommended area.
c)     Extent of land is unknown. Thus, it is not possible to comment on the possibility of increasing the ground floor area of the complex. As such, if additional floor space is required the only possibility is to increase the height of this building to achieve the necessary floor space.
d)    Let-table area of 80% appears satisfactory due to the fact that a shopping complex requires a greater circulation space.
e)     Interest on short term finance is said to be 17% per annum and it is assumed that the entire development will be implemented on borrowed funds.
f)      If the interest on loan is 17%, the same lending institution would pay around 12-14% for fixed deposits. Considering this point, 15% profit on GDV expected by the Developer appears fairly low. He can deposit this money and still earn the 15% interest without going through the struggle of constructing the shopping complex, selecting tenants, and attending to the legal requirements of renting the shops and maintaining it. He must at least target earning twice the amount of interest on deposits.
His current profit is estimated to be £ 326,250 over a period of one year.

There are many risk factors such as Cost, Time and Quality which can be badly affected to a project. Hence required precautions must be taken to minimize the impact on the project. To minimize risk in cost factor, the investor can go through strategic partner/s or investor/s for financing, Project to be developed phase by phase, and also by design and built procurement method investor can minimize his responsibility and cost as well as time and quality risk.

From this kind of project there are many cost benefits such as generate more job opportunities, Increase good will of the investor, many relationships can be created. Investor will get more opportunities in the future due to that good will and relationships.

Tuesday, May 31, 2016

Valuation Methods - Residual and Contractors Methods

Residual Method

The residual principle has been referred to in the context of rental values of shops and
agricultural land, where the analysis of land price appears fairly consistent with the economic theory of rent as a surplus. This concept is employed in valuing building land, where a logical approach to land value is to estimate the ‘output’ value in terms of the price which can be expected for completed buildings, and to deduct ‘input’ costs, such as site preparation, building costs, fees and finance charges. If there is then a surplus, it can be expected that the entrepreneur (developer) will make a bid for the land, subject first to an allowance for profit and risk.

Contractors Method

The Contractors method of valuation can be used for buildings are designed to be used by Town Councils or public sector/healthcare/military workers, and are therefore quite unique and it’s simply not appropriate or possible to value it for a commercial use.  These properties very rarely change hands and because of this, almost no comparable evidence is available.

The contractor's method works on the basis that a property's value can be equated to its cost. That is, the cost of the land plus the cost of the buildings upon it equals the value of the property as a whole. Moving to a different site and having a similar building constructed would have little change on the value of the property. This is because no significant market forces exist for the building so its value is likely to be similar whichever comparably sized site is used. In other words, the value of the property is based on its use which intrinsically has no commercial application. Examples of this are fire stations, hospitals and bus depots.

The basic equation for the contractor's method of valuation is:

Value of existing property = cost of building + cost of site - depreciation and obsolescence allowances