QS Practice

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

13th of July 2014

Quantity Surveying Practice (77-6966-00S)

Module Lecturer: Ms. Indra Rajapakse/

Mr. Upali Fernando


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 surveyor’s 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.


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


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


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 – Fédération Internationale Des Ingénieurs-Conseils

CAD – Computer Aid Design

ADR – Alternative Dispute Resolutions


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.


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 Surveyor’s 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 surveyor’s 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.


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 19th 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 QS’s 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.


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 can’t

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 Can’t 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 QS’s.

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.


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.


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 won’t excuse

or won’t 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 contractor’s 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.


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: 31st January 2012

Completion Date: 31st 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.


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 Engineer’s 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.


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


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


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 [Contractor’s 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

Employer’s Personnel, or the Employer’s 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 [Contractor’s 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.


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.


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 doesn’t 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)


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 doesn’t know whether he is getting his value of money

Tendering expenses to contractors

Design liability can be limited

Best designer can’t 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.


Assessment 01 | 15

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


Assessment 01 | 16

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 arbitrator’s decision.” Arbitration

is an alternative dispute resolution system and the parties will appeared together in front of

an arbitrator or panel of Arbitrators.

It’s 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 DB’s 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


Assessment 01 | 17

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 couldn’t

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.


Assessment 01 | 18

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.


Assessment 01 | 19

9. References

Adjudication, Arbitration and Mediation by Atkinson-Law with Articles on Construction

law and Standard Forms by Daniel Atkinson. 2014. Adjudication, Arbitration and

Mediation by Atkinson-Law with Articles on Construction law and Standard Forms by

Daniel Atkinson. [ONLINE] Available at: http://www.atkinson-

law.com/library/article.php?id=152. [Accessed 13 July 2014].

Alternative Dispute Resolution Techniques Resolving Disputes Without “Going to War”:

Frost Brown Todd Law Firm. 2014. Alternative Dispute Resolution Techniques Resolving

Disputes Without “Going to War”: Frost Brown Todd Law Firm. [ONLINE] Available

at: http://www.frostbrowntodd.com/resources-01-22-20071.html. [Accessed 13 July

2014].

Alternative dispute resolution . 2014. Alternative dispute resolution . [ONLINE]

Available at: http://www.rics.org/lk/footer/glossary/alternative-dispute-resolution/.

[Accessed 13 July 2014].

Delay and Disruption. 2014. Delay and Disruption. [ONLINE] Available at:

http://www.fenwickelliott.com/files/docs/articles/html/delay_disruption.htm. [Accessed 13

July 2014].

Disruption claims in construction contracts. 2014. Disruption claims in construction

contracts. [ONLINE] Available at: http://www.ivoryresearch.com/samples/construction-

essay-example-disruption-claims-in-construction-contracts/. [Accessed 13 July 2014].

Distinguishing Between Delay and Disruption | excellconsulting.net. 2014.

Distinguishing Between Delay and Disruption | excellconsulting.net. [ONLINE]

Available at: http://excellconsulting.net/blog/distinguishing-between-delay-and-

disruption. [Accessed 13 July 2014].

FIDIC (2005), Conditions of Contract for Construction, Geneva, International

Federation of Consulting Engineers (FIDIC)

Fathi, M. S., Anum ba, C. J., Car r illo, P. & Aziz, Z. ( 2007) Constr uction Pr ogr am m e

Managem ent - Cur r ent Cont ext. In Gar vin, M., Edum- Fotwe, F. & Chinowsky, P. (

Eds. ) Pr oceedings of the 2007 ASCE/ CI B Constr uction Resear ch Congr ess. Gr and

Baham a I sland, Academ ic Event Planner s

ICTAD (2007), Standard Bidding Document 2,2nd Ed, Colombo 07, Institute for

Construction Training and Development

KHALED, A. A. A., AYMAN, H. H. K., Gamal, E. N. (2014). HBRC Journal. Guideline

for preparing comprehensive extension of time (EOT) claim, 1-9

Poon, J. (2003). Professional ethics for surveyors and construction project performance:

what we need to know. Proceedings of Construction and Building Research (COBRA)

Conference (pp. 124-132). UK: Royal Institution of Chattered Surveyors (RICS)

Foundation.


Assessment 01 | 20

RICS (No date), Quantity Surveying and Construction , Assessment of Professional

Competence. RICS Built Environment Group

The Specific Role Of The Quantity Surveyor. 2014. The Specific Role Of The Quantity

Surveyor. [ONLINE] Available at:

http://www.ukessays.com/dissertations/construction/role-of-the-quantity-surveyor.php.

[Accessed 13 July 2014].

UNMESH, DHANUSHKODI (2012). CONTRACT STRATEGY FOR CONSTRUCTION

PROJECTS, MSc Construction Project Management/ Faculty of Engineering and

Physical Sciences, SCHOOL OF MECHANICAL, AEROSPACE AND CIVIL

ENGINEERING (MACE)

What is a Quantity Surveyor in the construction industry? | Project Resource. 2014. What

is a Quantity Surveyor in the construction industry? | Project Resource. [ONLINE]

Available at: http://www.project-resource.co.uk/blog/article/what-is-a-quantity-surveyor-

in-the-construction-industry. [Accessed 13 July 2014].

What to consider when preparing a disruption claim | ConstructionWeekOnline.com.

2014. What to consider when preparing a disruption claim |

ConstructionWeekOnline.com. [ONLINE] Available at:

http://www.constructionweekonline.com/article-5798-what-to-consider-when-preparing-

a-disruption-claim/. [Accessed 13 July 2014].

Documents

QS Practice