FAQ’s
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A Quantity Surveyor (QS) is a construction industry professional who focuses on managing the financial and contractual aspects of construction projects. They are vital in ensuring that projects are completed on time and within budget. With expertise in cost estimation, contract administration, and risk management, a QS adds value at every stage of a project.
Typically involved from the planning phase through to project completion, Quantity Surveyors collaborate closely with clients, architects, and contractors. However, they can be engaged at any project phase, whether during feasibility studies, design and development, or the final account stage. Their role ensures that construction projects meet deadlines, stay within budget, and adhere to contract terms.
A QS's main responsibility is preparing cost estimates and monitoring project expenses, ensuring costs are controlled and align with the initial budget. Beyond cost management, they also oversee contract administration and foster strong relationships between contractors, clients, and other stakeholders.
In short, a Quantity Surveyor is an essential partner in construction, ensuring financial clarity, managing risks, and contributing to the successful completion of a project.
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Cost Estimation and Budgeting
Prepare accurate cost estimates and develop project budgets, ensuring alignment with financial goals.
Tendering and Contract Administration
Assist with tender preparation and evaluation, and ensure compliance with contractual terms throughout the project.
Cost Control and Financial Monitoring
Monitor and control project costs, identifying and recommending cost-saving measures.
Risk Management
Identify potential financial risks and implement strategies to mitigate them.
Progress Reporting and Documentation
Track project progress and financial status, providing regular reports to clients and stakeholders.
Procurement and Supplier Management
Oversee material procurement and subcontractor negotiations to ensure value for money.
Final Account and Project Closeout
Prepare final accounts, resolve financial discrepancies, and ensure all contractual obligations are met.
Collaboration and Communication
Facilitate effective communication between all project stakeholders to ensure smooth execution.
Value Engineering
Recommend cost-effective solutions without compromising quality or project objectives.
In summary, a Quantity Surveyor ensures projects are completed on budget, on time, and in accordance with contractual agreements.
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Whether you need a quantity surveyor depends on the scale and complexity of your project. Engaging a professional quantity surveying consultant greatly enhances project success, improves profit margins, reduces risk, and prevents cost overruns. They provide cost-effective value engineering solutions for all types of projects and the quantity surveyor’s expertise in feasibility estimates, cost planning, tendering, variation assessments, and contract negotiations can lead to significant time and cost savings. A quantity surveyor can add significant value in several ways:
Cost Management: They help manage and control project costs, ensuring you stay within budget by providing accurate estimates, cost planning, and advice on cost-saving opportunities.
Risk Reduction: By managing contracts and identifying potential cost overruns or delays early, they reduce the risks associated with construction projects.
Tendering and Negotiations: If your project involves tendering, a quantity surveyor can assist with the preparation and evaluation of tenders, ensuring fair pricing and clear contract terms.
Contract Administration: They can help manage and assess variations to contracts, which ensures you are not caught off guard by unexpected costs.
Value Engineering: They can propose alternatives that deliver the same outcome at a reduced cost, optimizing the project’s value.
If your project is small and straightforward, you might not need a quantity surveyor. However, for larger, more complex, or high-risk projects, their expertise can significantly improve the financial outcomes and reduce the likelihood of surprises during construction.
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Purpose:
Used in the early stages of a project for preliminary cost planning and broad budget setting.
Approach:
Divides the project into major elements or components (e.g., foundations, superstructure, finishes, services).
Accuracy:
Provides a general overview of project costs, but is less accurate than a detailed estimate.
Data Required:
Requires concept plans or simple floor plans with some written notes.
Use Cases:
Helps determine project viability, informs design decisions, and allows for early cost control.
Example:
Estimating the cost of the entire roofing element, rather than the cost of each individual roofing material or trade.
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Purpose:
Provides a more accurate and detailed cost analysis, used for tender evaluation, budget adherence, and cost control throughout the project lifecycle.
Approach:
Breaks down the project into smaller components, considering individual trades, materials, and labor costs.
Accuracy:
More accurate and detailed than an elemental estimate, as it considers specific materials, labor, and equipment costs.
Data Required:
Requires detailed drawings, specifications, and supplier quotes.
Use Cases:
Used for preparing bills of quantities (BOQ), evaluating tenders, and managing project costs.
Example:
Estimating the cost of each individual roofing material, including labor and installation costs, rather than the cost of the entire roofing element.
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To summarise, the main difference is that a Provisional Sum includes both labour and materials, whereas a Prime Cost Sum will include the material only, with the labour component included as a fixed price elsewhere. It is essential to confirm with the contractor in writing that they have made sufficient allowance for installation elsewhere within the construction budget.
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an Elemental Estimate breaks down project costs into broad elements (like foundations, superstructure, finishes) for early cost planning, while a Detailed Cost Estimate provides a more precise analysis by considering individual trades and materials, used for tender evaluation and budget adherence.
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In New Zealand's construction industry, retentions (also known as retention money) are amounts withheld from a contractor's payment as security for the performance of their obligations under the contract, particularly to ensure defects are rectified.
Purpose:
Retentions serve as a financial safeguard for the principal (or contractor) to ensure the contractor (or subcontractor) fulfills their contractual obligations, including rectifying any defects in the work.
How it works:
A portion of each payment to the contractor is withheld, typically a percentage of the total contract value, until specific conditions are met, such as the completion of the project and the defects liability period.
Contractual Basis:
Retention money can only be withheld if a commercial construction contract explicitly allows it.
Defect Rectification:
The withheld money can be used to cover the cost of rectifying any defects that arise during the defects liability period.
Other uses:
Retentions can also be used to resolve outstanding disputes or incentivize contractors to deliver quality work.
Retention Instruments:
Complying instruments, such as a Retention Instrument, can be used to release cash retentions for use, but they also come with setup and administration costs.
Bank Account Requirements:
The bank account holding the retention money must be in the name of the company deducting the retentions, not any other party.
Guidance:
The Ministry of Business, Innovation and Employment (MBIE) provides guidance to help parties comply with the retention regime, including roles and responsibilities, reporting requirements, and what happens in the event of insolvency or receivership.