A Profession Undergoing Rebirth -Transformations in the Quantity Surveyor's Role - Essay Example

A Profession undergoing Rebirth -Transformations in the Quantity Surveyor's Role Advancement and change have been seen to have an enduring influence upon the worldwide construction environment in the past few decades. This has increasingly affected the quantity surveying profession. Inevitably, technological improvements and persistent industry change will present the quantity surveying profession with many challenges, threats, as well as opportunities. Development of Quantity Surveying The quantity surveying surfaced in England as early as the eighteenth century. Cartlidge (2002) describes in his book those beginning years, where the quantity surveyor acted for the master tradesmen, measuring the work after completion and usually submitting final accounts to the building owner. As a consequence of these activities, it more and more became the habit of building owners to have work performed under contract and to call for bids before any work was undertaken. A process therefore developed whereby specifications and drawings were given out to selected master builders, who would then present proposals for the total price rather than a group of prices from master tradesmen. Builders soon realized that it would be more economical for them as a group to employ one surveyor to measure quantities for all of them. They could thus split the cost of the surveyor, acquire a similar bill of quantities which made sure that they would all be tendering on the same basis. Later on, the building owner realized that it would be to his own advantage to hire and pay the fees of the quantity surveyor (Willis and Ashworth, 1994). The quantity surveyor thus transformed to a consultant. Traditional Role of Quantity Surveyor The traditional function of the quantity surveyor has been defined by Cartlidge (2002) as a measure and value arrangement. Still practiced by some, the old, conventional role prepares estimated ballpark figures of the initial costs of the building using a single price method of valuation. The design would only then be developed by the architect when the cost was suitable to the client. Afterwards, bills of quantities for tendering purposes would be created, progress payments would be quantified, and a final account would be prepared on the basis of the tendered documentation. Although the process was essential and vital, it was obviously also mainly reactive. In the 1960s, cost planning services were included to the selection of tasks carried out by the quantity surveyor, in order to avoid tenders being received that were over the budget (Egan, 1998). The surveyor was in charge of looking after the financial interests of the contractor and worked on the formulation of provisional payments and ending accounts. At times, contractors felt that they were not being sufficiently compensated for under the stipulations of the contract and presented claims for additional payments (Cartlidge, 2002). Fearing the possible end of the bill of quantities, potentially new functions were examined by quantity surveyors. For instance, mainly because of the rising range of options that were available, procurement became a vital area of activity. As described by Boyd and Kerr (1998), design cost planning as a means to efficiently meet clients’ objectives was likewise being given value more and more. Together with whole life costing, value management and risk analysis, these were the instruments employed to give more benefits to the client. Not soon, growing importance was also being assigned on the measurement, costs and value of such services, as buildings became more service positioned (Ashworth, 1994). Construction Procurement Practice and Regulations Changes The quantity surveying profession encounters threats to its traditional functions and roles as a result of changing client needs in the construction industry, advances in technology and the particular needs of a developing economy. Bellassi and Tukel (1996) suggest that the profession’s continuing relevance and growth could require enhancing its knowledge domain so that it can move quickly into new areas of service as opportunities arise. At the same time, it should be prepared to move away from old methods when technology and competition make them redundant. For instance, fee rivalry was practically unheard of in the 1970s. All professional bodies advertised ranges of fees, and competition was strongly discouraged on the basis that a client engaging an architect, engineer or surveyors should base his or her judgment on the kind of service and not on the amount of fees (Torrance and Haron, 2005). Some twenty years ago it had become clear that one of the drawbacks in the construction arena was the passive role being played by the client. Thus, significant and specific research was accomplished to increase client involvement and improve client briefing. Today, things have indeed changed. The quantity surveying profession is also said to be giving away its portion of the shrinking market to others. Willis and Ashworth (1994) points out that surveying practices and industry players are now not only competing for the work. The big law, consultancy and accountancy firms are gradually penetrating the market for different forms of property management business (Matzdorf and Green, 2002), equipped with competitive strategies to challenge the existing players. Furthermore, fee rivalry is rapidly becoming a common phenomenon in the construction industries. The construction industry saw the forceful way in which many industry players now advertise and press for business to secure new clients, as a surplus of supply over demand for surveying services is apparent (Willis and Ashworth, 1994). Professional service firms in the construction industry are predominantly project based. Although much knowledge is gained by individuals or teams occupied in particular projects, for particular clients, this knowledge is not automatically adopted by the firm as a whole. In fact, project teams are conventionally competitive and may deliberately deny information from one another (Ashworth, 1994). This informal or implicit knowledge that is obtained by a firm’s personnel contribute to innovation activity and the firm’s internal business procedure needs to be organized in order to capture the knowledge and have it disseminated throughout the organization. Competent quantity surveyors must have a range of skills, knowledge and understanding which can be applied in a range of contexts and organizations (Cartlidge, 2002). Yet pressing issues which confront the quantity surveying profession today include increasing the relevance and level of awareness of the profession’s services in the built environment and increasing the range of business opportunities for continued growth. New methods of procurement and construction arrangements, the influence of information technology, and increasing client demand for the management of construction projects throughout their life cycle have meant that quantity surveyors have had to acquire new skills. In fact, because of their changing function, an increasing number of people working in the field no longer call themselves quantity surveyors (Chalkley, 1994). The Changing Role of Quantity Surveyor The role of the quantity surveyor is a quickly changing one, increasingly more than that of any construction professional. Less and less quantity surveyors today work in the public sector and nationalized industries, and more are being employed in building and civil engineering companies (Matzdorf and Green, 2002). Underscoring the importance of its role, quantity surveyors have realized the importance of working closely with engineers, architects, financiers, contractors, suppliers, project owners, accountants, insurance underwriters, solicitors and with all levels of government authorities. The quantity surveying profession is transforming and is inevitably changing further. Quantity surveyors must now understand that their success relies not only on their skills to contain cost and enhance efficiencies, but also to adjust to modifications in work arrangements, work out new markets and nurture superior advantages over their competitors in order to maintain and improve competitive advantage and profitability. Enduring industry change and technological advancements will present the quantity surveying profession with many threats, challenges as well as opportunities. Thus, innovation and change management have been observed to play a deciding role in predicting the long term survival of organizations. RICS and RIBA Effects The Quantity surveying practice assumes an essential role in any construction development project. The surroundings of quantity surveying practice have changed together with the world’s fast economic development. The functions of quantity surveyors have also developed along with the changes. Future development prospects and changes will have implications on the development of the profession. On the other hand, there have been apprehensions in the previous few years on the role and outlook of the quantity surveying profession (RICS, 1998). The Quantity Surveying Think Tank Report by the RICS has pointed out that many clients are expressing disapproval of traditional quantity surveying services and are demanding a different and more complete range of services (Ashworth, 1994). The Royal Institution of Chartered Surveyors (1998) emphasize that the distinctive competencies or skills of the quantity surveyor are connected with measurement and valuation, which provide the basis for the proper cost management of the construction project in the context of analyzing, planning, controlling, forecasting and accounting. Leveson (1996) indicates that quantity surveying skills depend on the financial and contractual control of the building project but counsels quantity surveyors to also pay attention to developing soft skills. Willis and Ashworth (1994) have labeled the body of knowledge of the quantity surveyor as encompassing the services of: preliminary cost advice; cost planning including investment appraisal, life-cycle costing and value analysis; procurement and tendering procedures; contract documentation; evaluation of tenders; cash-flow forecasting, financial reporting and interim payments; final accounting and the settlement of contractual disputes; cost advice during use by the client; project management; and specialist services. The RICS (1998) determines the competencies and requirements for the assessment of professional competence by enumerating the competencies demanded of quantity surveyors in three categories: basic competencies, core competencies and optional competencies. The basic competencies are customary to all construction professions under the RICS (1998) structure (land surveying and building surveying); the core competencies are uniquely required of quantity surveyors while the discretionary competencies reflect areas of specialization or future career diversification. Aside from competition from the new players in the industry, there is also rivalry between sub-professions and the institutions of professional bodies (e.g. who gets facilities management or project management in their divisions). To top it off, there is also increasing competition between different professional bodies (RICS, CIOB, ICEC, Institution of Civil Engineers, and Institution of Management Consultants) whose fields overlap, competing for memberships and professional status (Matzdorf and Green, 2002). As competition is high on the program, the consequent conflict between quantity surveying as a profession and quantity surveying as business is a critical concern for the profession. Effects of Advances in Internet and Technology In an increasingly dynamic industry environment the role played by the various professions is likely to swing and change. The application of new technology has the potential to transform the business beyond all recognition and could lead to the development of new services but more importantly to new ways of working. For example, global communication systems have brought certain benefits to the industry, which include rapid transfer of information, access to previously unknown data and the availability of an enlarged body of knowledge (Cartlidge, 2002). The quantity surveying business will need to focus on their value-adding and organizational abilities if it is to continue to thrive. Appropriate recognition of the role of quantity surveyors from other elements in the construction industry is important, if the advantages of their skills are not to be lost. Technology has had a fundamental influence upon businesses over the past decade. New technologies may make some customary functions obsolete and others may be hugely modified in range and responsibilities. In the course of advancement are computer programs which aspire to deliver automatic quantities and pricing from 3D computer drawings (Willis and Ashworth, 1994). While the usage problems are by no means trivial, it is probable that, in the future, programs will be available that will take over those parts of a quantity surveyor’s work that are monotonous and tedious. Effects of Globalization The withdrawal of communism since the late 1980s has had the biggest influence known in changing macro-economic activity. The free market economy keeps on expanding across the globe, further driving globalization. This propels progress in the global economy. Likewise, the decrease in the influence of centralized economic planning and the broadening of economic activity and commercialization has had large effects upon the way that business is now conducted. The attempts of international financial institutions have had very important influences on global economic growth, on globalization, foreign direct investment and the formation of wealth and better standards of living. The money supply has multiplied and the world is flooded with capital trying to find appropriate investments by which to achieve returns above the average bank fixed deposit rate (Ashworth, 1994). Similarly, governments are accessing these funds in many ways, including the bond market. But it is the Private Finance Initiative (P.F.I.) and the Public/Private Partnership (P.P.P.), which are having the greatest impact on the construction industry (Matzdorf and Green, 2002). Due to new improved practices initiated, the construction industry has made the most of the changing environment. This has brought in the banks and related financial institutions as major stakeholders in the industry. Partnering with the private sector and participation with the public sector, through P.P.P. and P.F.I. has lead captains of industry and senior government officers into a tighter connection with the industry. The professions of quantity surveying should also distinguish advancements with respect to new areas of influence, knowledge and the skills that would be required in the near future. Projects are themselves becoming larger, more intricate and potentially more risky. It is acknowledged that the quantity surveying had started to extend their scope, making a strong presence in arbitration, construction law, value management, construction management and project management. Additional new opportunities that are presenting themselves to the quantity surveyors in a rapidly evolving global construction industry include health and safety, e-commerce, financial risk management, sustainability, supply chain management, data/information management, life cycle costing and capital allowances consultancy and many others (Egan, 1998). Additional industries such as marine, manufacturing, petrochemical and transportation can present huge prospects for quantity surveyors to discover and improve their services to meet the requirements of the clients in such industries (Willis and Ashworth, 1994). Conclusion The construction industry has discovered itself in a new world. It needs to respond to new geographical locations; new opportunities and new ways of doing business that have come out globally. Other industries are collaborating and becoming more competitive in the expanding global market. Yet it has appeared that consolidation in the construction industry has been limited. Today, clients have a higher expectation of the service offered by quantity surveyors. This, together with increased competition both from the profession and externally, has resulted in a challenge to their professional standing. To face these challenges, quantity surveyors need to improve their professionalism and competence in order that practitioners can sustain a competitive advantage. The quantity surveying profession is now at a juncture in construction business. Past ways appear to be outdated and no longer work. The role of quantity surveyor has transformed and it is unlikely to return to the traditional role. Thus, the twenty-first century quantity surveyor is challenged to become a business manager, a strategist, a knowledge manager and a leader of change (Cartlidge, 1994). Lastly, the quantity surveyors who have the best chance of getting ahead today will have to remove the bureaucratic, risk averse attitudes and become instruments of change, much more risk managing, and entrepreneurial. The quantity surveying profession has to rethink its position of being generally reactive, responding to outside forces, to become more aggressive, more risk-taking and proactive and creating more opportunities for innovation. For example, quantity surveying today involves providing professional advice to the construction industry on the financial and legal aspects of new constructions, and operation of existing buildings (Torrance and Harun, 2005). Hence, quantity surveyors should be engaged in the construction process from the feasibility stage to after-completion. The quantity surveying profession is evolving and will continue to change. Quantity surveyors today must realize that their success depends not only on their abilities to control cost and improve efficiencies, but also to adapt to variations in work patterns, develop new markets and develop superior advantages over their competitors in order to maintain and enhance competitive advantages and profitability. References Ashworth, A. (1994). Education and training of quantity surveyors. Construction Papers. 37. Belassi, W. and Tukel, O. I.. (1996).A new framework for determining critical success/failure factors in projects. International Journal of Project Management, 14(3), 141-151. Boyd, D. and Kerr, E. (September 9-11, 1998). An Analysis of Developer-Clients Perception of Consultants. Proceedings of ARCOM: The University of Reading. UK, 88-97. Cartlidge, D. (2002). New Aspects of Quantity Surveying Practice. Heinemann: Oxford. Chalkley, R.. (1994). Professional Conduct: A Handbook for Chartered Surveyors, London: Surveyors Holdings Ltd. Egan, J. (1998). Rethinking Construction, H.M.S.O., London. Leveson, R. (August 1996).Can Professionals be Multi-skilled? People Management, Vol. 2 No.17. Matzdorf, F., Price, I. and Green, M.. (2002).Barriers to Organizational Learning in the Chartered Surveying Professions, Property Management, Vol. 18, No.2, 92-113. Royal Institution of Chartered Surveyors. The APC Requirements & Competencies. London: Royal Institution of Chartered Surveyors, 1998. Torrance, J.B.V. and Harun, H. (2005).The Changing Construction Industry and Its effects upon The Quantity Surveying Profession, Quantity Surveying Convention 10th- 11th August 2005, Kuala Lumpur. Willis, C J, Ashworth, A & Willis, J A. (1994). Practice and Procedure for the Quantity Surveyor, 10th Ed., Oxford: Blackwell Science. Read More