Business Proposal for Quantity Surveying in the UK - Essay Example

Background & Introduction LPS is a private practicing firm in UK, which brings forward consultancy services for construction firms. The company offers different services to clients that may include cost planning, procurement analysis, value engineering, risk analysis or contract management etc. These services aim to strengthen construction projects, their proceedings making them viable for effective completion. For me, being hired as a Senior Quantity Surveyor is about to propose opportunities for LPS in the UK market. Bringing a proposal report, I would elaborate areas of where LPS could expand and could make its business more competitive. The aim of this report is to identify and highlight key opportunities in the UK market. There will be two sections in the report where the first section will detail the analysis of the market, and the second will propose QS services important from the market point of view. LPS profile- Who we are and What we do? LPS is a private owned firm that provides services in quantity surveying to construction clients. With countable experience of thirty years, LPS upholds great name and reputation in quantity surveying practices. For UK clients, LPS has been a great support. With professional knowledge and expertise, LPS has able to make several construction projects a success. With mission to serve clients with trust, LPS has also made its name in corporate social responsibility. There are several professional services, which LPS provides to its clients. From cost estimation to cost planning, and from information control to risk management LPS provides everything that could turn a construction project into revenue. It inputs everything that could make a construction project viable for completion. Presently, LPS is in a transition state, a change that is important for making organization improve its position. The need is to understand that what opportunities are waiting and should be tried off by LPS professionals. As there are plans of expansion these opportunities should be extracted out, which could possibly improve LPS business position and so as customer prospect respectively. Defining Quantity Surveying- Its Need and Importance From the nature of work, quantity surveying can be defined as a professional practice applied in construction for deliberate planning and organization. This practice deals with two major segments, cost management and contract management. At times when construction projects are faced by different challenges a quantity surveyor tends to counter these challenges. These may include regulatory contractual challenges, or challenges related with cost and cost measures. The objective in quantity surveying is to avoid any type of hindrance, which could affect the process of an on going project. Addressing two of the segments (cost and contract) professionally, with experience and knowledge, a quantity surveyor able to achieve this objective. He or she might appear as a mediator in any construction project. When crises of the global economy are prevalent and competition is on the skies, there are different panics created for businesses worldwide. A construction business, which already carries much of the risk and chances of failure, requires specialized scientific practices like quantity surveying. It is not just that quantity surveying assures the good start of a project, but it provides total guidance from start till end to make the project gets successful. Cost effective and time effective completion of the project is on minds of the quantity surveyors. With experimental knowledge and scientific expertise, a quantity surveyor is like a specialized driver of a construction project. This identifies that how much important and useful the role of quantity surveyor is for construction businesses. Important not just for contractors but also for companies and agencies involved in mega construction deals. Recognizing the need and importance, the governments has also started supporting quantity-surveying professionals. There are significant positions, which governments have taken to promote QS practice in numerous civil and urban projects. To resolve conflicts and to assure quality of the projects, governments have taken initiatives to involve QS professionals. In UK, there is a large support, which authorities have brought for quantity surveying teams and professionals. The authorities have understood that without including such specialized group of people, a civil project could not be assured with its safety. In this way, there is a vital need and importance identified in today’s world for quantity surveying techniques and practices. Analysis of the UK market In the last decade, there is a potential change noted in the construction industry in which there is adoption of new innovative techniques like quantity surveying. With major share of construction industry in UK’s GDP, this abrupt change has been facilitated quite firmly (Department for Business Innovation, 2013). This is to raise the performance of the industry itself relatively to improve the economy and its dynamics. Actually, the construction industry in hour of accepting change and improving the economy has given origin to a sub-industry named quantity surveying. This industry is working for the improvement of the main industry “the construction industry” which eventually is adding and contributing to the status of the economy. In this way there is a great connection and relation we find in between UK economy, UK construction sector and quantity surveying practice (Department for Business Innovation, 2013). According to Royal Institution of Chartered Surveyors, there is a great amount of acceptation of quantity surveying programs within UK (Burnside & Westcott, 1999). The trend is there where quantity surveyors are encouraged to become part of different urban and civil projects. With IT revolution the trend is of adaptation of new techniques either than the older or conventional ones. RICS asserts that consideration is of the new inventions, which are powerful, strong and compatible to become part of quantity surveying practice. Fundamentally, there is a change persistent within QS practice where knowledge has a key role and so as the experience to make practice more sharp and competitive. Actually, there is vertical extraction of the knowledge within quantity surveying programs, which is a good thing to improve the implications of the programs (Burnside & Westcott, 1999). The contemporary surveys assert that adoption of new techniques is because of the structural changes found in UK construction industry. The industry is going with a recurrent institutional change, which is also affecting and changing the practice of quantity surveying. To cope up with this abrupt changing situation, the quantity surveyors are getting aware of the new specialized techniques. It is important because as the industry is moving and evolving, the practice needs to evolve that way and in that particular manner. This is a relative change we find today in between the UK industry and the QS practice (Rahmani, 2014). The contained financial recession of 2008 is calling the need of quantity surveyors in UK. Both private and public sector firms are looking QS professionals for bringing stability in their businesses. A crisis, which has actually caught up both private and public limited firms, is calling tremendous opportunity for QS professionals (Rahmani, 2014). This is the time when QS agencies should expand and build up their motion for productive growth. There is inflation, a stock market decline, rise of the interest rates, and a banking panic, which is calling the need of the QS organizations to come forward. In this time, there are more conflicts to be resolved, more costs are to be managed, and more assets are to be organization in the construction sector, which is entirely the practice of QS professionals. In this time, the QS professionals can bring their specialized support to the firms, support which is convincing and attracted to the market clients. This is the time, when QS organizations can develop, can make their name and reputation in the construction market (Rahmani, 2014). The composition of the UK market tells another great story, that quantity surveying is growing along with the productive industrial growth. The construction industry is growing in two segments, commercial and non-commercial segment, which is bringing tremendous opportunities for both the private and public limited firms (Rahmani, 2014). Commercial segment, which involves the construction of the buildings, hotels, residential plots, and offices, is inviting major opportunity for QS practice. Similarly, non-commercial segment, which includes the construction of the bridges, roads, tunnels and utilities, is inviting prospective opportunity for QS contractors. There is creation of 2,000,000 jobs with 230,000 new businesses in UK, and it is because of the industrial rise relative to the rise of the highly innovative QS practice. All this is knocking doors of opportunity for QS professionals and QS practicing firms. For major shareholders like LPS, there is opportunity of expansion at this time. LPS should recognize this timely opportunity and should avail it by incorporating new innovative ways of quantity surveying (RICS, 2012). The Competitors Analysis- A Direction for the Board Committee To propose effective expansion strategy, the need is to understand what competitors are up onto and what they are doing. This section is analyzing competitors’ situation, their strategic moves and approaches. The QS firms are trying competitive approaches to stay in the market competition (Department for Business Innovation, 2013). Again the firms are adopting innovative methods to bring effective service for their respective clients. The market is being influenced by dominant players, like those who are on the hold of the market and the market situation. The need is to develop competencies with respect to the market situation, which is tight and risk-oriented. By building practical knowledge and skill in the QS, these competencies could be attained. Players, which are competent, are those that are bringing client-oriented solutions. They are able to sustain in the present oligopoly just because of their practical and apprehensive client solutions. Mostly the competitors are up on vertical expansion, which means that they are expanding in the specialized means and directions. The competitors are focusing on their strong areas, rather than switching to the weaker areas. This is how competency is being developed where client-orientation is the basis of competition (RICS, 2012). UK market is a high rivalry market owned and comprised by multiple competitive players. At the top is Stepnell with 10.7% profit margin in 2013. Other prominent players are Bechtel and Dawnus with profit margins 9% and 9.8% in 2013 respectively (Burnside & Westcott, 1999). Amey and Interserve are other significant players in the market, which are offering special IT solutions such as Building Information Modeling (BIM). These organizations are keen in bringing direct and comprehensive solutions such as project life cycle cost planning, conflict resolution, risk management and IT management. It is because the demands of clients are instinctive, these firms are moving to comprehensive client solutions. Solutions, which could address client needs and client problems, are in the priority of these competitive firms (Department for Business Innovation, 2013). Situation is tight as only competent QS practice is being survived in the UK context. The need is to understand the client perception, of what clients are demanding and what are their situational needs. Only by meeting client needs could enable LPS rise for its growth. A situational assessment is a must by LPS strategists, especially by the governing board of directors who understand the market situation more closely and professionally. They should bring forward their expertise and market knowledge to see of where the space is open and can be filled with opportunity (The Construction Index, 2013). Specific Opportunities in the Market Making assessment of the market, it can be said that there are several opportunities waiting LPS. The important thing is to sort out specific opportunities in the field of quantity surveying. A deliberate approach is required to identify these core opportunities. In the broader sense, there are opportunities in risk management, in cost management and in IT where LPS have to choose the specific and the important ones (Department for Business Innovation, 2013). This section is identifying specific opportunities with respect to the market, and with respect to what LPS could bear and could manage. Below are specific opportunities in the UK market: Building Information Modeling (BIM) The origin of quantity surveying practice “BIM” goes back to 1970s when it first got adopted by small UK construction firms (Yan & Damian, 2008). With BIM popular success, the government started to bring consideration to this practice. After successful adoption of the technique in 1980, BIM got described as a method of information exchange and information modeling. It was the first ever method to facilitate information exchange in the digital format. The BIM modules facilitate the systematic exchange of information. With this specialized practice, the interoperability of information is made possible. In cost planning and management, BIM serves the purpose of documentation and record keeping. The systematic record kept by BIM modules is brought in the use of cost estimation and cost planning. The BIM systems keep the record of every operation that is being carried out or facilitated in a life cycle project. This adds to the value of the project, value in terms of planning and organization (Yan & Damian, 2008). Information related to assets, to materials, to certain cost transactions and to wage payments are recorded day to day by the BIM programmed modules (Yan & Damian, 2008). BIM mainly records and transfers two types of information, project information and asset information, which further guide managers in risk planning and cost calculation. BIM actually assures the efficient information exchange in between the departments, in between groups and various segments of a particular construction project. For all these various reasons, BIM remains important for UK construction firms. The firms admit and understand that BIM leaves a collaborative impact on their real time projects. With adoption of this viable technique, they are able to meet their abrupt deadlines. With effective information management through BIM, the other activities are planned out well like materials handling, inventory and asset management. Actually, BIM gives the cover to entire life cycle projects. It brings the handy support to the life cycle project from start till ending (Scullion, 2013). In contemporary researchers’ view, BIM holds certain direct benefits in life cycle projects. Primarily, BIM improves the process of design and building in a real time project. The main benefit is that BIM reduces the time and effort in the documentation process, which eventually reduces the cost as well. With effective systematic design, BIM integrates various disciplines affirming the soothing way of completing a life cycle project. Last but not the least is that BIT establishes competitive decision-making. Decisions, which come with support of BIM, are handy, proactive and can be brought to effective implementation. If LPS expands with BIM could really appeal to its loyal customers. Actually, BIM is the need of the clients, it is something which clients desire for and expect from LPS in UK (Scullion, 2013). Dispute Resolution- Avoiding Negligence and Tort Dispute arises at the top corporate level in between two parties, which are fallen under a contract. It can be described as a consequence led by tort, professional negligence or flaw full completion of a contract (Shen & Chung, 2003). In UK, most of the contracts get into question when they are hit by disputes based on tort and negligence. There are several firms that sign litigation and go into courts just because they face dispute with their contractors. Dispute resolution is a required practice in quantity surveying within the UK perspective. Construction firms are always looking for good dispute resolvers for mitigators who could resolve the conflicts in good aspect of time. This practice of quantity surveying is also offering opportunity to LPS to come forward (Towey, 2012). There are several cases within UK, when construction companies are brought to question due to their professional negligence. Professional negligence is one of the major causes of dispute. If negligence is avoided at the prime level, there is no reason that dispute arises. Experience and knowledge is really what matters in this manner, as an experienced professional always look for resolving conflicts and corporate level of disputes (Towey, 2012). Disputes are resolved at the top level. It is the leadership that has to come forward for resolving corporate level disputes. For LPS there is a chance in this practice that they look for clients, which are arrested in high level of disputes. Definitely, such clients would anticipate any service, which could resolve their big time disputes, possibly the ones that lead them to litigation, questioning and unwanted liability (Shen & Chung, 2003). Project Management Over the decades, the practice in UK for quantity surveying has been changed. As discussed earlier new services are added to the quantity surveying practice. In UK, quantity surveying is more than simply a “measurement” practice as today it includes value added practices like project management. Project management has become one major side of quantity surveying. Today without project management, a quantity surveyor is not complete with his or her service. Project management is a significant planning approach, that not only manages time but also controls cost at each operational level (Luu & Kim, 2007). Project management is a designed decision making approach, an approach that times activities on day to day basis and regulates them with complete efficiency and quality. It is basically a decision empowering approach tried and tested by several top quantity surveyors in UK. LPS should go for this effective practice. It should add project management in its value added services, which will increase the repute of the company and so as to its profitability (Luu & Kim, 2007). Proposition Context and Requirement In last two years LPS has shown decline in its growth capability. The profit margins are downed and the company’s annual return on investment is up on the question. The company has repute in quantity surveying as it offers multiple quality solutions with experience and high professional knowledge (Towey, 2012). There are worries that how come the company regain its position, when it is going with a consistent decline since last two years. The need is of strong and compatible expansion strategy, which could regain company’s lost position and competitive state (Towey, 2012). Proposition and Benefits Understanding the market scenario, the first proposed solution for LPS is Building Information Modeling (BIM). It is a specified proposition where LPS should start working on. Building Information Modeling is a diverse planning technique in quantity surveying (Paton & McCalman, 2008). The technique manages the most important asset of a life cycle project and that is “information”. As discussed earlier, there are two types of information, which BIM manages and that are project information and asset information respectively. It is a value added technique that will improve LPS position in the market. When LPS will deploy its professional knowledge in BIM, it would have a reason to come out different and innovative in the market. It is to be noted that BIM not just simply manages information but it is a complete systematic process for bringing sound and competitive decisions. It is actually a decision-making and execution tool. There are majority of clients who want to see this special quantity surveying service. There are clients who want to complete their projects with cost and time effectiveness, for which they seek handy solutions like BIM. It is highly proposed to LPS board of directors that they invest and expand to this innovative practice (Towey, 2012). Disputes are common in construction contracts; this is what my experience in UK as a senior quantity surveyor tells (Scullion, 2013). Clients within the country are looking a way out in these unresolvable disputes, which appear in the result of litigation, high penalties and unwanted liabilities. Definitely, the clients seek professional solution for resolving their corporate level of disputes. LPS could come out with this special service of dispute resolution. The reputed LPS could appear as a mediator in between conflicted contractual parties. With trust and association LPS could turn big time disputes into big resolutions, which will save cost, time and effort of the respected clients. This will bring attention of the clients towards LPS high valued services (Towey, 2012). LPS has a reputed board committee, which the company should take advantage off. The committee can work out in dispute resolution, by offering their wide knowledge and experience in resolving corporate level of disputes. It is nothing to be lost, but something to be gained from and therefore I am proposing this comprehensive solution (Paton & McCalman, 2008). Since last ten persistent years, LPS has seen that the practice of quantity surveying has been changed. It is not only the measurement but also value added services are also involved in the quantity surveying practice. Project management is one value added service, which could bring a change required by LPS in its position. Adopting project management approach could change the dynamics for the organization, in terms of prospect and in terms of competitiveness. Project management is a systematic planning approach, applied to manage cost, time and resources in a life-cycle project. It is actually an approach to manage the entire life cycle of a project. From start till end, project management adds value, efficiency and quality in the life-cycle project. It not only just plans the project but also enables the successful and profitable completion of the project. This is my last and most important proposition to board of directors, that they incorporate project management techniques in LPS. This will bring competitive advantage to LPS and also add value to its customers (Towey, 2012). Steps for Implementing Change 1 Incorporating the new building information modeling system for constructive information management. 2 Bringing BIM system in the culture of the company by communicating it from top to bottom in the organization. Testing the system for its positive outcomes and implications. 3 Introducing dispute resolution as a new service offer by LPS. Leadership has to own this responsible service offer. With a purposive vision and a bright leadership, LPS could appear as a good dispute resolver. 4 Incorporating project management facility in the culture of LPS. This may require qualified training of professionals dealing with project management tools, system and practices. Challenges A BIM system takes €900 to get installed and incorporate in the organization. It takes high professional knowledge of the workers to collaborate with the system. Moreover, BIM will take time to adjust to the culture and practices of LPS. Dispute resolution and project management will be new things for LPS professionals but if the company is successful to adjust this change, there are chances for desired outcomes. I see more benefits than restrictions of these solutions for which I am bringing forward these propositions directly to the board committee (RICS, 2012). Future Recommendations for LPS The competitors’ position is important to be understood by LPS strategists. What other players are doing is relatively important for LPS progress and motion. This is benchmarking, identifying top players in the market and recognizing their top and ideal practices. To build competencies LPS need to recognize these top practices. The company will have to match to these practices to build its place and position in the market. For incorporating change “the solutions proposed so far”, it is important that LPS comes out with the benchmarking approach. Benchmarking is always important for LPS, at the time when it is inviting change and when establishing it for the future (Paton & McCalman, 2008). Innovation is another suggested thing to LPS that the company remains relative to the market change and evolution. It is important that LPS remains familiar with the market trend as that is how it could compete and could build its prospect. For driving competition, innovation is a must thing to capture (Shen & Chung, 2003). Change is phenomenal and it requires a strong position from the leadership to get it established. The above propositions are a suggested change for LPS, a change that will strengthen the company with its prospect and its business capability. This change could not be endorsed or established until the leadership comes forward and brings its pivotal role. The first level of change in LPS is unfreezing, the second is inviting and the third is freezing the change within organization and its system (Paton & McCalman, 2008). List of References Burnside, K. & Westcott, A.J., 1999. Market Trends and Developments in QS Services. Research Report. London: RICS. Department for Business Innovation, 2013. UK Construction: An Economic Analysis of the Sector. Research Report. London: Department for Business Innovation & Skills. Luu, V.T. & Kim, S.Y., 2007. Improving project management performance of large contractors using benchmarking approach. International Journal of Project Management, 26, pp.758-69. Paton, P.R.A. & McCalman, J., 2008. Change Management: A Guide to Effective Implementation. London: SAGE. Rahmani, F., 2014. Importance of Quantity Surveyors for public sector organisations in the prevaling recession. Research Report. London: Academia. RICS, 2012. Building Contracts in the UK. [Online] Viewed at: [Accessed 14 May 2014]. Scullion, J.M., 2013. Implementing service development within a SME. Case Report. Liverpool: Todd & Ledson. Shen, Q. & Chung, J., 2003. Benchmarking the use of information technology by the quantity surveying profession. Benchmarking: An International Journal, 10(6), pp.581-96. The Construction Index, 2013. Top 100 Construction Companies 2013. Research Report. London: The Construction Index. Towey, D., 2012. Construction Quantity Surveying: A Practical Guide for the Contractor's QS. New York: John Wiley & Sons. Yan, H. & Damian, P., 2008. Benefits and Barriers of Building Information Modelling. Case Report. London: Department of Civil and Building Engineering Loughborough University. Read More