Upfront Q&A

UPFRONT

JANE NORTHEY MAIQS, CQS

Technical Director, ANZ Cost Management Practice Director, AECOM

For a project to have the best opportunity to achieve a high degree of success in terms of time, cost and quality, it is important to involve built environment cost professionals in conceptual discussions as well as throughout the entire project. AIQS asked leading professionals to provide us with their insights as to why their input is so valuable from day one.

Every project decision has a cost impact. Those cost impacts can take effect at any stage of the project life span, from inception and construction, throughout operations and during decommissioning. The earlier a decision is considered and planned the better the outcome for project time, cost and quality. Cost professionals benefit from experience in all project phases across all project disciplines to bring lessons learned and add value day one. They provide advice to ensure decisions can be made in a timely manner to have the biggest impact and ensure project success. Cost professionals are one of the few consultants to consider the complete project including design, procurement, construction, operations and maintenance, land remediation and/ or acquisition, financial and funding implications, stakeholder involvement, and more. With a complete project scope in mind and a drive to enable project success a cost professional can track and mitigate risks by providing experiencebased advice to enable their clients to make decisions that have the greatest positive outcome. A cost professional's approach to cost management and risk assessment requires constant communication with all project stakeholders to ensure a complete understanding of the scope, operational impacts and end user requirements. As projects increasingly respond to human centred design and the standards and expectations improve, a cost professional can assist in planning to allow these requirements to be met without additional cost, time or impact on quality.

PHIL ADAMS MAIQS, CQS Director, Shared Vision Solutions

TRISH ENRIGHT MNZIQS

Senior Quantity Surveyor, Rawlinsons New Zealand Dispute avoidance and risk management are relatively modern terms, but quantity surveyors (QS) have been doing this for decades. An experienced QS appointed from day one can provide expert guidance in addressing the very important question - does the contract accurately reflect the deal between the parties? I’m not referring to the general terms and conditions, that is the domain of the lawyers. I’m referring to the scope of works, drawings, specifications, processes, procedures and standards. This is a process that QS’s continue throughout the precontract period. Let’s consider design. Most ‘construct only’ contracts rarely utilise such definitive wording, and more typical state ‘design to the extent described in the documents’. So, what if tucked away in the pages of a mechanical or electrical specification, is a specialist subcontractor’s proprietary

On this basis, I believe there are two major benefits to the early appointment of a QS to a project. The first and most obvious benefit is that a realistic budget can be set to inform a business case submission or secure funding before a significant amount of money is spent on professional design fees. Contrast this to being appointed at the preliminary design stage and the first estimate shows that the design exceeds the client’s budget. The client then has three suboptimal choices - to cancel the project, to proceed with a project that costs more than they had planned, but can still be completed on time, or to enter the universally depressing, time consuming and costly process of value engineering and redesign. Whilst

system? Are there ‘clouds’ on the drawings awaiting clarification via the shop drawing process? Remember shop drawings are supposed to be for the purposes of explaining the fabrication and/or installation process, prepared by a subcontractor on behalf of a contractor who has no design responsibility. Also, let’s not forget BIM and most importantly the Level of Development (LOD). I once encountered a ‘construct only’ contract which included a model at LOD 200 i.e. prior to clash detection. In my opinion clash detection is a design coordination function and does not work in coordination. Other examples include coordination/ interface management (especially associated with third parties) and latent conditions. All these occur with frustrating regularity and can lead to additional costs, delays, and formal disputes. So, call a QS!

this process may solve the cost issue it will probably result in a delay to the completion. Secondly, the question of quality. I think the definition in terms of this discussion should be the pursuit of the ‘best bang for your buck’, and depending on the project this could be measured by aesthetics, area, lettability, energy efficiency, or any combination of these, or other desirable outcomes. The early appointment of a QS will provide the ability to test various options with a rough order of cost estimates to enable the team to work through several schemes. This will provide the client with the best possible project concept for the available budget.

RICHARD SAMUELS MAIQS, CQS Director, Muller Partnership

STUART WATSON MNZIQS

Senior Quantity Surveyor, Holmes Wellington The quantity surveyor is an expert in quantifying and estimating the value of construction costs. They are also well versed with contracts, programs and cost control/monitoring and can apply this expertise across the delivery phase of a construction project. The benefit here is the quantity surveyor can bring this skill set to the forefront during project initiation. The genesis of a project usually involves an idea or concept. Attached to this idea in some form or another will be a budget, a finite value that will determine the viability of a project. The quantity surveyor can be crucial to this process, working in collaboration with the head consultant and client to realise a concept and budget before kickstarting a project. A quantity surveyor can provide valuable input from the start, initiating budget talks, feasibility studies, cost planning, and procurement advice whilst identifying tangible and the not so tangible risks that can impact on a project’s outcome or success. We can sometimes predict or see things others cannot ensuring there are contingencies in place to capture these. This is an art the quantity surveyor develops and hones over time. Our role is to ensure budgets are robust as clients tend to make important decisions based on our advice. We are integral to the decision-making process and whole-of-life approach to accomplishing a successful and sustainable outcome. I’d like to think cost management and control is a fundamental skill provided by the quantity surveying profession. Not just merely an estimating service.

Investing in cost advice early in the building phase, particularly in the form of a schedule of quantities (SOQ), will yield several returns which are not always apparent. A cost consultant can influence the design in the early stages. Often, the design is too far progressed to achieve the most economical solution for the building.

The measurement of a set of documents is a quality check on the documentation that goes to the tender market. If a QS can’t measure the drawings, then a builder will not be able to build it. Solving coordination issues up front reduces contractor variations during the construction phase. A measurement must be conducted to price a trade. To my mind, it is inefficient to have five different subtrades measuring the same set of documents. During construction, a SOQ explicitly defines the scope of works. Nobody wins when drawn out discussions take place regarding what is or is not included a lump sum price. A SOQ very quickly settles these issues. To complete the cycle, a priced SOQ will help the cost planning of future buildings. Too often clients use a contractors m2 rate from a previous project to cost plan the next building. In many cases, this approach produces incorrect feasibilities and in turn sets incorrect client expectations. Cost advice is essential to the feasibility and delivery of a construction project. It is essential to have the correct information up front, not only for the specific construction project, but in the accurate planning of future works.

STANLEY CHANG MAIQS, CQS Project Associate at Rider Levett Bucknall LLP Built environment cost professionals or rather quantity surveyors, play a crucial role in the built environment. During the kick start of the project, we provide clients with the rough cost estimate of the project based on the design intent. This first estimate will be the basis on which the design will be further developed. At each stage of the design process, we keep track and provide timely reporting to the client on cost changes. Furthermore, we offer valuable input on potential cost optimisation solutions to reduce the cost of the project should the client be faced with cost constraints.

Subsequently, during the construction stages of the project, we ensure all cost extras and changes are captured and recorded. This is done through being aware of changes, meetings, visits to the site and constant communication with the project team. This regular reporting of cost related changes enables the project team to be effective in decision-making and relevant corrective action can be quickly implemented. Finally, we ensure no surprises are found at the project close out phase, we will adopt the philosophy of agreement of all cost changes progressively with all parties and to discuss and resolve all cost and claim issues. In conclusion, managing cost at every stage of the project - in a regular and timely manner - is the key to achieve a high degree of success for the project.