A Profession in Search of an Identity - Essay Example

27 October 2008 A Profession in Search of an Identity: Changes and Challenges in the Quantity Surveyors Role Innovation and change have been seen to have an impact upon the global construction environment in the last few decades. This has increasingly affected the quantity surveying profession. Inevitably, continuing industry change and technological developments will present the quantity surveying profession with many challenges, threats, as well as opportunities. Traditional Role of Quantity Surveyor It was not until the 17th century restoration of London after the Great Fire that Quantity Surveyors developed as an occupation but it is believed that the ancient Egyptians used a system of quantity surveying (Chalkley 3). Quantity Surveyors are employed predominantly on major building and construction projects as consultants to the owner, in both the public and private sectors. They may also work as academics in the building and construction disciplines and in financial institutions, with developers and as project managers (Willis and Ashworth 46). Quantity Surveyors work closely with architects, financiers, engineers, contractors, suppliers, project owners, accountants, insurance underwriters, solicitors and Courts and with all levels of government authorities. At feasibility stage quantity surveyors use their knowledge of construction methods and costs to advise the owner on the most economical way of achieving his requirements. Quantity surveyors may use techniques such as Cost Planning, Estimating, Cost Analysis, Cost-in-use Studies and Value Management to establish a project budget (Boyd and Kerr 34). During design, the quantity surveyor ensures that the design remains on budget through Cost Management. Essential additions are offset by other identified savings. On completion of design and drawings, the quantity surveyor may prepare a Bill of Quantities, which is issued with the specification, for use by contractors in submitting tenders. The contractor’s quantity surveyors generally prepare tenders, and may price alternatives for consideration. The quantity surveyor is usually involved in assessing tenders and may also be asked to advise on the type of contract or special clauses in it. During construction the quantity surveyors are called on to fairly value progress payments at regular intervals. They will also value changes to design or quantities which may arise by reference to appropriate Bill of Quantities rates. The contractor’s quantity surveyor/contract administrator will prepare claims for progress payments and additional work. When construction is complete the quantity surveyor can produce depreciation schedules of the various project components and advise on realistic insurance replacement costs. In the case of construction disputes the quantity surveyor is often called on as an expert witness, and some quantity surveyors act as arbitrators. Both the contractor’s and owner’s quantity surveyors will be involved in this (Ashworth 12). In addition to new projects, quantity surveyors also use their skills in refurbishment of old buildings, alterations to existing buildings and insurance replacement estimates. In public authorities they maintain cost statistics on a state or nation-wide basis, and there are opportunities for academic careers in the building disciplines. Quantity Surveyors likewise work on projects ranging from office blocks, schools, hospitals, factories to bridges, railways, oil and mining development, shipbuilding and large process engineering works such as oil refineries. Anywhere, in fact, that major construction work is carried out, Quantity Surveyors will be needed. Finally, the Quantity Surveyor, also known as a Construction Economist, or Cost Manager, is one of a team of professional advisers to the construction industry. As advisers they estimate and monitor construction costs, from the feasibility stage of a project through to the completion of the construction period. After construction they may be involved with tax depreciation schedules, replacement cost estimation for insurance purposes and, if necessary, mediation and arbitration.  Changes in Construction Procurement Practice and Regulations in the Last Decade The quantity surveying profession faces threats to its traditional roles and functions as a result of changing client needs in the construction industry (Matzdorf and Green 89), advances in technology and the particular needs of a developing economy. Bellassi and Tukel (143) 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. Competent quantity surveyors must have a range of skills, knowledge and understanding which can be applied in a range of contexts and organizations (Cartlidge 7). 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. Continuing industry change and technological developments will present the quantity surveying profession with many challenges, threats and opportunities. Meanwhile change management and innovation have being observed to play a critical role in predicting the long term survival of organizations. The Changing Role of Quantity Surveyor More than that of any other construction professional, the role of the quantity surveyor is a rapidly changing one. Fewer quantity surveyors now work in the public sector and nationalized industries, and more are employed in building and civil engineering companies. New forms of procurement and construction arrangements, the impact of information technology, and growing client demand for the management of construction projects throughout their life cycle have meant that quantity surveyors have had to acquire new skills. Indeed, many working in the field no longer call themselves quantity surveyors because of their changing role. The Quantity Surveying profession is changing and must change further. Quantity surveyors must realize that their success depends not only on their abilities to contain cost and improve efficiencies, but also to adapt to changes in work patterns, develop new markets and cultivate superior advantages over their competitors in order to maintain and enhance competitive advantage and profitability. Quantity Surveying in the 1970s and 1980s Some twenty years ago it had become clear that one of the drawbacks in the construction arena was the weak role being played by the client. Thus, serious efforts were made and particular research was carried out to increase client involvement and improve client briefing (Torrance and Haron 32). In the1970s, fee competition was virtually unheard of. All professional bodies published scales of fees, and competition was vigorously discouraged on the basis that a client engaging an architect, engineer or surveyors should based his or her judgment on the type of service and not on the level of fees. Now, things have certainly changed. At a time when faced by an excess of supply over demand for surveying services, the construction industry saw the aggressive way in which many industry players now advertise and press for business to secure new clients - fee competition is suddenly becoming a common phenomenon in the construction industries. Not only the surveying practices and industry players are competing for the work, the surveying profession is also said to be losing its share of the diminishing market to others. The large law, accountancy and consultancy firms are increasingly ‘infiltrating” the market for various forms of property management business, armed with competitive strategies to challenge the existing players. Professional service firms in the construction industry are project based. Much knowledge is acquired by individuals or teams involved in particular projects, for particular clients, but this knowledge is not necessarily assimilated by the firm as a whole; indeed project teams are traditionally competitive and may deliberately withhold information from one another. This informal or tacit knowledge that is acquired by a firm’s personnel contribute to innovation activity and the firm’s internal business process needs to be organized to capture the knowledge, capitalize upon it and disseminate it throughout the organization. Today, firms are increasingly using intra-firm Intranets to support this process. RICS and RIBA effects on the Quantity Surveyors Quantity surveying practice plays an important role in any construction development projects. The environments for quantity surveying practice have changed along with the country’s rapid economic development. The roles of quantity surveyors have also evolved 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 concerns in the past few years on the role and future of the quantity surveying profession (RICS 3). The Quantity Surveying Think Tank Report by the RICS has noted that many clients are critical of traditional quantity surveying services and are demanding a different and more comprehensive range of services (Ashworth 5). The Royal Institution of Chartered Surveyors (5) emphasize that the distinctive competencies or skills of the quantity surveyor are associated with measurement and valuation which provide the basis for the proper cost management of the construction project in the context of forecasting, analyzing, planning, controlling and accounting. Leveson (4) indicates that quantity surveying competencies lie in the financial and contractual control of the building project but advises quantity surveyors to pay attention to developing soft skills. Willis and Ashworth (94) have described that body of knowledge of the quantity surveyor as incorporating 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 (14) set out the requirements and competencies for the assessment of professional competence by listing the competencies required of quantity surveyors in three categories: basic competencies, core competencies and optional competencies. The basic competencies are common to all construction professions under the RICS structure (land surveying and building surveying); the core competencies are uniquely required of quantity surveyors while the optional competencies reflect areas of specialization or future career diversification. Not only is there competition from the new entrants into the industry, there is also competition between sub-professions with the institutions of professional bodies (e.g. who gets facilities management or project management in their divisions?). To complete the picture, there is also increasing competition between different professional bodies (RICS, CIOB, ICEC, Institution of Civil Engineers, and Institution of Management Consultants) whose areas overlap, competing for memberships and professional status (Matzdorf and Green 6). As competition is high on the agenda, the resultant conflict between Quantity Surveying as profession and Quantity Surveying as business is defining concern for the profession. Effects of Advances in Internet and Communications and Technology Technology has had a profound impact upon businesses over the last decade. The adoption of new technology has the potential to change the business beyond all recognition and could lead to the development of new services but more importantly to new ways of working. 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 89). In a complex and dynamic industry environment the role played by the various professions is likely to fluctuate and change. New technologies may make some traditional roles obsolete and others may be greatly altered in scope and responsibilities. Computer programs which aim to deliver automatic quantities and pricing from 3D computer drawings are in the process of development in several places (Willis and Ashworth 23). While the application problems are by no means small, it is possible that I future programs will be available that will take over those parts of a quantity surveyor’s work that are repetitive and routine. The profession will need to concentrate on their value-adding and organizational skills if it is to continue to prosper. Due and proper recognition of the role of quantity surveyors from other elements in the construction industry is needed, if the benefits of their expertise are not to be lost. Effects of Globalization The retreat of communism since the late 1980s has had the greatest impact ever known in changing macro economic activity. Also, the reduction in the control of centralized economic planning and the diversification of economic activity and commercialization has had huge impacts upon the way that business is now conducted. The free market economy continues to expand across the globe, further driving globalization. This drives the growth in the world economy. The efforts of international financial institutions have had very significant influences on world economic growth, on globalization, Foreign Direct Investment and the creation of wealth and higher standards of living. The money supply has burgeoned and the world is awash with capital trying to find suitable investments by which to gain returns anywhere above the average bank fixed deposit rate (Ashworth 37). Governments are tapping into 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. Due to Design Build and Partnering, the construction industry has taken advantage of the changing scenario. But this has brought in the banks and related financial institutions as major stakeholders in the industry. Partnering with the private sector and engaging with the public sector, through P.P.P. and P.F.I. have brought captains of industry and senior government officers into closer involvement with the industry. The quantity surveying professions should also recognize developments in respect of new areas of knowledge, influence and the skills that would be required in the near future. Projects are themselves becoming bigger, more complex and potentially more risky. It was accepted that the Quantity Surveying had begun to broaden their scope and making a strong presence in Arbitration, Construction Law, Value Management, Construction Management and Project Management. Other new opportunities that are presenting themselves to the quantity surveyors in a swiftly changing global construction market include E-commerce, Financial Risk Management, Health and Safety, Sustainability, Supply Chain Management, Data/Information management, Life Cycle Costing and Capital Allowances Consultancy and many others. Other industries such as petrochemical, marine, manufacturing and transportation can offer tremendous opportunities for quantity surveyors to explore and tailor their services to meet the clients’ requirements in such industries. Conclusion The construction industry has found itself in a new world – it needs to respond to new opportunities, new geographical locations and new ways of doing business that have emerged globally. Other industries are combining and becoming more competitive in the expanding global market. But consolidation in the construction industry has been modest – so far. However, it is changing the way that it does business. The Quantity Surveying Profession is now at a crossroads in construction business – the old ways no longer work. The role of quantity surveyor has changed and it is unlikely to revert to the traditional role. The 21st Century quantity surveyor is challenged to become a business manager, a strategist, a knowledge manager and a leader – not a follower – of change. The Quantity Surveying profession needs to change from being largely reactive, responding to external “pulls” and become much bolder, more entrepreneurial and proactive, creating more “pushes” for innovation (Torrance and Harun 45). Quantity Surveying involves providing professional advice to the construction industry on the financial and legal aspects of new constructions, and operation of existing buildings. As such, Quantity Surveyors should be involved in the construction process from the feasibility stage to post-completion. Lastly, the Quantity Surveyors who are most likely to succeed will shake off the bureaucratic, risk averse attitudes and become much more risk managing, entrepreneurial and agents of change. The Quantity Surveying profession is changing and must change further. Quantity surveyors must realize that their success depends not only on their abilities to contain cost and improve efficiencies, but also to adapt to changes in work patterns, develop new markets and cultivate superior advantages over their competitors in order to maintain and enhance competitive advantage and profitability. Works Cited Ashworth, A. Education and training of quantity surveyors. Construction Papers. 1994. 37. Belassi, W. and Tukel, O. I.. A new framework for determining critical success/failure factors in projects. International Journal of Project Management, 14(3), 1996. 141-151. Boyd, D. and Kerr, E.. An Analysis of Developer-Clients Perception of Consultants. Proceedings of ARCOM, September 9-11, 1998: The University of Reading, UK, 1998. 88-97. Cartlidge, D. New Aspects of Quantity Surveying Practice. Heinemann: Oxford, 2002. Chalkley, R.. Professional Conduct: A Handbook for Chartered Surveyors, London: Surveyors Holdings Ltd, 1994. Leveson, R. Can Professionals be Multi-skilled? People Management, Vol. 2 No. 17, August 1996. Matzdorf, F., Price, I. and Green, M.. Barriers to Organizational Learning in the Chartered Surveying Professions, Property Management, Vol. 18, No.2, 2002. 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.. The Changing Construction Industry and Its effects Upon the Quantity Surveying Profession, Quantity Surveying Convention 10th- 11th August 2005, Kuala Lumpur, 2005. Willis, C J, Ashworth, A & Willis, J A. Practice and Procedure for the Quantity Surveyor, 10th Ed., Oxford: Blackwell Science, 1994. Read More