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QUANTITY SURVEYING
PRACTICE
BSc. (Hons) in Quantity Surveying & Construction Management
RAJENDRA SASIRAJ
STUDENT ID: - 23047795
QUANTITY SURVEYING PRACTICE
BSc (Hons) in Quantity Surveying & Construction Management Page I
ACKNOWLEDGEMENT
First of all I would like to thank the Almighty Lord Shiva and I convey thanks to our Quantity
Surveying Practice Lecturer Ms. Indra Rajapakse who gave me enormous guidance and
support me continuously. It was really helpful to me to complete this assignment successfully
in a scheduled time.
Further extending my gratitude to ICBT for giving me a chance to study this degree program
offered by SHU (Sheffield Hallam University) and I express my sincere thanks to the Director,
Lecturers and Staffs of ICBT.
I express my gratitude to my senior students clearing my doubts and also I never forget my
beloved parents at this time for allowing me to study and participate in this degree program to
improve my status in the society. Finally, I would like to thank my friends for incorporating
with me to complete my assignment
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CONTENTS
Page Number
List of Figures IV
List of Tables IV
SECTION 1
Task 1.1 Fly Sheet 01
Executive Summary 02
Task 1.1
1.1.1. Introduction 03
1.1.2. History of Quantity Surveying 03
1.1.3. Role of Traditional Quantity Surveyors 03
1.1.4. Role of Modern Quantity Surveyors 04
1.1.5. Role of Future Quantity Surveyors 04
1.1.6. Introduction of Project Quantity Surveyor 08
1.1.7. Role of Project Quantity Surveyor Roles in Pre& Post Contract Stages 08
1.1.8. Conclusion and Recommendation 12
Task 1.2 Fly Sheet 13
Executive Summary 14
Task 1.2
1.2.1. Introduction 15
1.2.2. Extension of Time (EOT) Claim 15
1.2.3. EOT Calculation & Preparation for a Surface Water Disposal Project 16
1.2.4. Conclusion and Recommendation 22
SECTION 2
Task 2.1 Fly Sheet 24
Executive Summary 25
Task 2.1
2.1.1. Introduction 26
2.1.2. Construction Procurement 26
2.1.3. Types of Construction Procurement Systems 26
2.1.4. Procurement Selection Criteria 33
2.1.5. Conclusion and Recommendation 34
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Task 2.2 Fly Sheet 35
Executive Summary 36
Task 2.2
Task 2.2.1
2.2.1.1. Introduction 37
2.2.1.2. Basic Factors of Construction Disputes 37
2.2.1.3. Common Factors of Construction Disputes 38
2.2.1.4. Quantity Surveyors Roles to Avoid Disputes 39
2.2.1.5. Conclusion and Recommendation 41
Task 2.2.2
2.2.2.1. Introduction 42
2.2.2.2. Alternative Dispute Resolution (ADR) 42
2.2.2.3. Suggestion of Alternate Dispute Resolution (ADR) for Construction Disputes 45
2.2.2.4. Suggestions to Improve the Effectiveness of Mediation 48
2.2.2.5. Conclusion and Recommendation 49
Overall Conclusion and Recommendation 50
References 52
Appendices
ApeendixNo.01:- Case Study 54
ApeendixNo.02:- Progression Plan of Assignment 55
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List of Figures
Page Number
Figure No.01:- Base Line Program 18
Figure No.02:- Affected Program 18
Figure No.03:- Categorization of Construction Procurement Arrangements 26
Figure No.04:- Relationship of parties for Separated System 27
Figure No.05:- Relationship of Parties for Integrated System 29
Figure No.06:- Organization Structure for Management Contract 31
Figure No.07:- Organization Structure for Construction Management 31
List of Tables
Page Number
Table No.01:- Quantity Surveyors major roles in Construction Sector 07
Table No.02:- Project Quantity Surveyors major roles in Pre & Post Contract stage 11
Table No.03:- Advantages and Disadvantages of Separated System 28
Table No.04:- Advantages and Disadvantages of Integrated System 30
Table No.05:- Advantages and Disadvantages of Management Oriented Systems 31
Table No.06:- Advantages and Disadvantages of Collaborative Systems 32
Table No.07:- Factors affecting During Procurement Selection 33
Table No.08:- Basic Factors of Construction Dispute 37
Table No.09:- Common Factors of Construction Dispute 39
Table No.10:- Quantity Surveyors Job Role in Construction Phases to Avoid Disputes 40
Table No.11:- Advantages and Disadvantages of Negotiation 43
Table No.12:- Advantages and Disadvantages of Mediation 43
Table No.13:- Advantages and Disadvantages of Conciliation 44
Table No.14:- Advantages and Disadvantages of Arbitration 44
Table No.15:- Advantages and Disadvantages of Adjudication 45
Table No.16:- Advantages to Mediation over other forms of ADR or Civil Litigation 48
Section 1
General Quantity Surveying Practice
and Construction Claims
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Task 1.1
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Executive summary
This professional report contains answer for Task 1.1 which includes quantity surveying
practice which cover role of traditional quantity surveyors , modern quantity surveyors and
future role of quantity surveyors, Quantity surveyors are take part in with the most of the
essential portion of construction process as accountants, contract manager, economists,
lawyers, measurers, and etc. To become an expert in construction field.
A quantity surveyor (QS) is a construction professional in construction sector who is concerned
with project costs. There is two stages in the construction which is pre-contract and post-
contract. Quantity Surveyor should be more responsible for all the construction phases as per
the scenario, I assume myself as a Project Quantity Surveyor for “M/s Walter Consultants”
company for a middle scale building project. As Project Quantity Surveyor the major role in
Pre Contract & Post Contract Stages are explain in detail manner
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Task 1.1
1.1.1. Introduction
There is a high demand for Quantity Surveyors, they are playing a very important role similar
to other experts in the modern construction sector. In the past decades, QS job roles are limited
to take part in with the tender process, measurement works, and BOQ preparation, now days
these situations are improved with the development, complexity and practice of new
construction techniques & methods and also involvement information technology in the
industry.
These days, Quantity surveyors are take part in with the most of the essential portion of
construction process as accountants, contract manager, economists, lawyers, measurers, and
etc. To become an expert in construction field, QS should be familiar with those roles and also
need to be more responsive of construction program and claims associated to standard forms
of contract documents which used by the construction professional in all over the world.
1.1.2. History of Quantity Surveying
This profession developed in the period of 19th century from the earlier years it is well known
as "measurer", a construction specialist tradesman, who arranged and prepared standardized
schedules for a building project. Quantity surveying profession emerged around year 1820s
with one of the earliest QSs being Sir “Henry Arthur Hunt”, he was take part in work on the
Houses of Parliament (The Board of Quantity Surveyors Malaysia 2012). From the 1970
onwards, the profession began to develop quickly (Ashworth and Hogg 2007).
1.1.3. Role of Traditional Quantity Surveyors
Traditionally, QS are depend upon on to measure and calculate each and every elements of the
construction project, primary cost planning ,controlling all costs throughout construction
process, giving advice on procurement advice, planning budgetary archives, preparing financial
documents, maintaining the valuation and account records (Ashworth and Hogg 2007).
Majority of the utmost important tasks which are traditionally perform by quantity surveyors
are based upon the measuring, evaluating and pricing of construction works (Olatunji, Sher and
Gu 2010). Their roles is illustrated Table No.1
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1.1.4. Role of Modern Quantity Surveyors
In the modern construction Sector Industry, QS plays an essential part and the improvement
within their field have developed due to the broad selections available for procuring assets for
construction activities, the broad, complicated nature in construction activities and the wide-
ranging number of legal and contractual disputes which occur in the construction sector
(Ashworth and Hogg 2007). Their roles are illustrated Table No.1
1.1.5. Role of Future Quantity Surveyors
The construction sector is booming all around the world, new technologies and methods of
construction are developing so as the roles of the quantity surveyors is also changing as well
as other professional practice. Further quantity surveyors should update their knowledge and
skill according to new construction and information technologies. Especially the parts of
traditional practices, improved vividly in the perspective of value engineering, risk
management, Life cycle costing (LCC) and financial management of the construction project.
In the future Advanced CAD software, BIM modeling software, Project management software
and other required software will be operated quantity surveyors works (Ibironke 2011). Their
roles are illustrated Table No.1
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Table No.01:- Quantity Surveyors Major Roles in Construction Sector
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1.1.6. Introduction of Project Quantity Surveyor
A quantity surveyor (QS) is a construction professional in the construction sector who is
concerned with project costs. (The Board of Quantity Surveyors Malaysia, 2012). A Project
Quantity Surveyor is an expert in the art of costing a project at all its stages. Project Quantity
Surveyors are highly trained professionals delivering an expert guidance on construction
project cots. They are very important for life cycle costing (LCC), cost planning, procurement
and tendering process, contract administration and financial management. Sometimes project
Quantity Surveyor may be a Chartered Quantity Surveyor, may be take part in a project as a
specialist in particular area or generalize in several areas of a project (RICS 2012).
1.1.7. Role of Project Quantity Surveyor Roles in Pre Contract & Post Contract Stages
There is two stages in the construction which is pre-contract and post-contract. Quantity
Surveyor should be more responsible for all the construction phases as per the scenario, I
assume myself as a Project Quantity Surveyor for “M/s Walter Consultants” company for
a middle scale building project. As Project Quantity Surveyor the major role in Pre Contract &
Post Contract Stages are explain in detail manner in the Table No.02.
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Table No.02:- Project Quantity Surveyors major roles in Pre & Post Contract stage
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1.1.8. Conclusion & Recommendation
There are many QS firms assist clients to improve their approach in order to successfully
accomplish all of their construction projects. On the other hand, high risk is provided for
Quantity Surveying practices, Quantity surveyors are taking part in with the most of the
essential portion of the construction process as accountants, contract manager, economists,
lawyers, measurers, and etc. There will be so many changes and development in the
construction sector by the quantity surveyors in coming years. Construction sector embraces
IT in the construction process in all phases so the Quantity Surveyors can face many various
challenges in the future. IT is required essentially to operate and manage a great amount of
information and to direct complex projects. Therefore quantity surveyors need enough
capabilities to get extreme benefit from IT to be successful professional in future more than
today.
In these days there has been significant improvement & innovation in industries such as IT,
Construction, Commerce and etc. There are some positive improvements can be seen which
rose in many professional practices as well as quantity surveying profession, due to these
improvements there are some positive changes in education field such as; teaching, training
and learning styles which positively increase graduate's ability, further professional bodies
alike; AIQS, CIOB, IQSSL, RICS and etc. Support the graduates to uplift their ability.
Therefore, an effective training, education and CPD courses through well recognize
professional bodies will make a quantity surveyor to competitively work and face the
challenges efficiently throughout his life.
Construction projects are facing many risks and more disagreement with internal and external
stakeholders, which making a path for; complicated processes, long time period, abominable
surroundings and etc. Therefore as it is essential which gives significant role to Quantity
Surveyors to perform as dispute resolver as well as risk manager. Therefore Quantity Surveyors
must able to perform this well, because risk and dispute may be barricade to accomplish the
goal. Therefore Quantity Surveyors should concern more on this in future more than present
because number of risks and dispute are quickly increasing in process of construction.
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Task 1.2
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Executive summary
This professional report contains answers for Task 1.2 which includes Contractors’ Quantity
Surveyor’s Major duty and responsibility. Quantity Surveyor uses his or her capability to aid
the contractor to increase profits and reduce losses. There are many factors that can delay the
construction project subsequently, based on the delay contractor can entitled to claim the delay
event from the employer/client by authenticating the delay, or else contractor will face liquidity
damages. There are the major types of Construction Claims in the industry
A quantity surveyor (QS) is a construction professional in the construction sector who is
concerned with project costs. I assume myself as a Project Quantity Surveyor for “M/s.
Great Building Contractors Ltd.” For a Surface Water Disposal Project. The report
consists Interim Particulars Submission on acceptable format which consisting of Assumed
Project details, Delay event details, Delay notice, Delay analysis with the base line program
and affected program, Contemporary records, Mitigation actions, there will be a calculation of
the extended cost of Site Overheads and by using Hudson formula to find out the extended cost
of Head office overheads.
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Task 1.2
1.2.1. Introduction
Generally, the construction industry is very complicated and with high unknown risk.
Therefore, parties who are involved in the construction project have to make sure that the
construction progresses are in a correct track if not it can lead to delay the construction projects.
There are many factors that can delay the construction project such as; Government
regulations, Design errors or omissions, Planning errors, Accidents, Poorly written
contracts, Execution errors, Variations in quantities, Delay caused by owner, etc.
Subsequently, based on the delay contractor can entitled to claim the delay event from the
employer/client by authenticating the delay, or else contractor will face liquidity damages.
There are the major types of Construction Claims in the industry such as; Contract Ambiguity
Claims, Delay claims, Acceleration Claims, Changes Claims, Extra-Work Claims,
Different Site Conditions Claims, Damage Claims and Non-Performance Claims
(Zaneldin, 2005). According to the FIDIC 1999, Sub- clause 20.1, Contractor can submit his
claim within 28 days after the incident occurs or else engineer can cancel the claim (Practical
Law 2014).
1.2.2. Extension of Time (EOT) Claim
It is a very essential and commonly occurred in construction projects, particularly when a legal
standard form of contract is applied. These will provide clauses for an extension of time
because of allowable delay events in construction projects and it is practiced by contractors
broadly to prevent from upcoming liquidated damages (Norazian and Hamimah. 2012).
Standard contracts are a legal agreement which containing a lawful object entered into
voluntarily by the parties, established with firm start and completion date (Anon 2012). On the
off chance that the contractors couldn’t complete on time due to his own particular problems,
which will be deliberated as contractor’s delay. At the point pre agreed liquidated damage
amount should be compensated for delay of every day by the contractor to the client / employer.
Then again, sometimes contractor cannot be accountable when works get delayed because of
employers or unforeseen natural disasters occurs on the site. If something occurs besides
contractor’s mistake, ultimately without no doubt the responsibility goes under client/employer
liability. This kind of situation the contractor can entitle to go for EOT Claim (Norazian and
Hamimah. 2012).
World widely FIDIC form contract is well recognized and it is mostly used form of contract in
the construction sector. Below mentioned clauses are from some edition related to delay and
related cost.
1. In FIDIC 1987 Edition, Clauses 44 & 53
2. In FIDIC 1999 Edition Sub-Clauses 8.4 & 20.1
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1.2.3. EOT Calculation & Preparation for a Surface Water Disposal Project
1.2.3.1.Project details
 Project Name: - Surface Water Disposal Project
 Client Name: - Ministry of Irrigation & Water Resources Management Sri Lanka
 Consultant Name: - M/s. Central Engineering Consultancy Bureau
 Contractor Name: - M/s. Great Building Contractors Ltd.
 Project Duration: - Ten (10) Months
 Project Start Date: - 03 March 2014
 Project Completion Date: - 12 January 2015
 Contract Amount: - 168,000,000.00 Rs (168 Million)
 Contract Location – Lunavil East, Chavakachcheri, Jaffna, Sri Lanka.
1.2.3.2.Breakdown of Contract Price
Breakdown of Preliminaries
1.2.3.3.Delay event
In this Surface Water Disposal Project, according to baseline program, construction work for
pump house for concrete foundation activity is planned to complete within two weeks’ time
period. It is planned to start on fifth week of the construction project and planned to finish in
the end of sixth, because of the “unusual climate condition as heavy wind and rain” activity
is delayed by further three weeks and it is started on eighth week.
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1.2.3.4.Delay Notice
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1.2.3.5.Delay Analysis
Normally delay analysis is done by several methods, according to this Surface Water Disposal
Project, it is carried out by baseline program and affected program.
1.2.3.5.1. Base Line Program
Figure No.01:- Base Line Program
1.2.3.5.2. Affected Program
Figure No.02:- Affected Program
3 Weeks
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Because of heavy wind, rain, construction of concrete foundation activity is affected for Pump
House building in the Surface Water Disposal Project, according to the baseline program and
affected program, concrete foundation activity is planned to complete within two weeks time
period. It is planned to start on fifth week of the construction project and planned to finish in
the end of sixth, because of the “unusual climate condition as heavy wind and rain” activity
is delayed by further three weeks and it is started on eighth week and other chain of activities
also affected.
1.2.3.6. Mitigation action
Concrete foundation activity is affected for Pump House building gets delayed due to heavy
wind and rain, also the site is become flood, even though we minimized the effect water coming
to the excavation area especially for the foundation by doing dewatering function and
providing plastic sheets and other protection covers to cover to cover the particular area. As a
result, it helps to protect the excavated foundation area from collapse, but it was a large storm
rainfall and heavy force wind, was not able to manage and control the flooding over the next
days.
If the Engineer instructed to finish the works in planned time, below points are carried out to
mitigate the problem and help to finish works in planned time.
 Increase in number of workers
 Increase in machinery and plants
 Increase working hours
1.2.3.7.Contemporary Records
As a contemporary records the contractor has given data focused about the project method
statement, planned program (baseline program), built a program (affected program), rainfall
records (daily records and data from February 2014 to May 2014 from Sri Lankan
Meteorological Department and Evidence Photographs), Inspection records, Day work records,
Site Diary, and Minutes of Meeting.
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1.2.3.8. EOT claim
1.2.3.8.1. Extended Site Overhead Cost
1.2.3.8.2. Extended Head Office Charges (HUDSON FORMULA)
1.2.3.8.3. Final Claim
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1.2.3.9.Final Claim Letter
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1.2.4. Conclusion and Recommendation
Quantity Surveyors should be conscious of the construction process and extension of time
period through the project with cost control and time management for the construction works,
which helps to find out the affected programs and preparation of gain Extension of Time (EOT)
claim. This professional report the Extension of Time (EOT) claim by introducing and
including project details, evident detail, delay analysis, baseline program and affected program,
then mitigation action and contemporary records. Then final Extension of Time (EOT) claim
is calculated by calculating site overheads and office overheads. EOT is helpful to the
contractor to prevent from liquidated damages. Quantity Surveyors can face many various
challenges in the future. IT is required essentially to operate and manage a great amount of
information and to direct complex projects. Therefore quantity surveyors need enough
capabilities to get extreme benefit from IT to be successful professional in future more than
today.
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Section 2
Construction Procurement and
Dispute Resolution
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Task 2.1
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Executive summary
This professional report contains answers for Task 2.1 which includes Contractors’ Quantity
Surveyor’s Major duty and responsibility. Their responsibility is selecting a most appropriate
construction procurement method. According to the given scenario that I have been appointed
to conduct a research on construction procurement in Sri Lankan construction industry.
Basically construction procurement system mentions to the procedure of obtaining or acquiring
property or goods or services, and starts with the willpower of a necessity for a service or
property and finishes with the completion & closeout of a contract.
This report illustrates major four types of procurement system such as; traditional system,
separated system, management oriented system and collaborative system and their advantages
and disadvantages, their relationship with the parties, finally there will be a suggestion, and
recommendation, to improve the construction procurement in Sri Lanka
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Task 2.1
2.1.1. Introduction
A most important job role of quantity surveyor as a procurement manager is selecting a most
appropriate construction procurement method. According to the given scenario that I have been
appointed to conduct a research on construction procurement in Sri Lankan construction
industry. There are different construction procurement system in the construction industry.
Selecting a wrong construction procurement system usually leads to client dissatisfaction and
project failure. Therefore, to accomplish client target, Quantity Surveyors should select a best
and suitable construction procurement in a realistic and systematic methods. The
appropriateness of construction procurement system relies on the duration, size, quality,
complexity and other essential factors (Ratnasabapathy and Rameezdeen 2007).
2.1.2. Construction Procurement
Basically construction procurement system mentions to the procedure of obtaining or acquiring
property or goods or services, and starts with the willpower of a necessity for a service or
property and finishes with the completion & closeout of a contract (Palaneeswaran,
Kumaraswamy and Ng 2003). An organizational structure which organizes particular
authorities and responsibilities to participants and describes the connection of the various
components in the construction projects (Miller, Furneaux and Davis 2007).
2.1.3. Types of Construction Procurement Systems
Figure No.03:- Categorization of Construction Procurement Arrangements
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2.1.3.1.Separated System
Separated system also knows as “Traditional System”, in this approach, the procurement
traditional structure is viewed as a progressive method due to the employer. He takes his
arrangement to an advanced phase with his expert team before assigning a contractor. The
designer is hired to guide the employer/client. The designer will design and make sure that the
project is kept within the budget and fulfills the required standards. A QS can be engaged to
provide supervision on design costs and budgets, preparation of BOQ, tender evaluation,
preparation of interim valuations and advising on the variation values. The contract amount
generally relies on a BOQ issued by the QS that calculates, so far as possible, each and every
part of the works. Consultant structural and services engineers may be hired by the employer’s
advisors or directly by the employer to design the special components of the project. The
contractor only has responsibility for construction and not for design. (Semus Cooley Quantity
Surveyors 2007).
Figure No.04:- Relationship of Parties for Separated System
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There are three major contracts under this procurement such; Lump Sum Contract,
Measurement Contract and Cost Reimbursement Contract, which illustrated below:
1. Lump Sum Contract: - Here the contract amount/price is decided before starting the
construction, and the price / amount is stated in the agreement. The contracts “with
quantities” are priced according to firm bills of quantities and drawings. The contracts
“without quantities” are estimated according to drawings and other documents
(Rodriguez 2014).
2. Measurement Contract: - Here the contract amount/price is accurately recognized on
accomplishment and after re-measurement to do few on agreed basis. It provides a
smaller amount risk to client perhaps based on drawings, schedule of rates and rough
quantities (Designing Buildings 2014).
3. Cost Reimbursement Contract: - It is also known as cost plus contract, here contractor
can reimbursed the actual costs they gain in carrying out the works, plus an extra fee.
Contract amount/price is arrived based on actual costs of manpower, material and plant,
to which is added a fee to cover profit and overheads. The amount/costs for which the
contractor is permitted to be reimbursed should be set out in the contract very clearly
(Designing Buildings 2014).
Advantages and disadvantages of Separated System are illustrated in the Table No.03
Table No.03:- Advantages and Disadvantages of Separated System
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2.1.3.2.Integrated System
Integrated system also knows as “Design and Build”, in this approach, main contractor is
appointed to design and construct the works. The main contractor may possibly use their own
internal designers to design, the construction project or they can hire design consultants or the
client's design consultants can be hired by the main contractor to finish the project design. If
the contractor is employed at the inception of the construction project, so which they can
contribute their support to the improvement of the design from the commencement, they can
be employed through a two (2) phase procedure. In the initial phase, the contractor is carefully
chosen on the basis of a fee, preliminaries, profit and overhead. Then they work with the design
team, who might be hired either by the employer/client or by the contractor at this phase to
improve the design, on the basis of that a fixed amount is negotiated for the second phase;
construction, when the design team may substitute a new contract for an old one to the main
contractor if the main contractor does not already hire them. (Designing Buildings, 2014)
Figure No.05:- Relationship of Parties for Integrated System
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Advantages and disadvantages of Integrated System are illustrated in the Table No.04
Table No.04:- Advantages and Disadvantages of Integrated System
2.1.3.3.Management Oriented Systems
Management Oriented Systems which provide great importance of the management and the
combination of the design and construction of projects. Under this procurement system, the
management function from the design and construction of a project is contracted out to a
contractor who perform as a management consultant in support of the employer/client. The
construction itself is particularly made to many subcontractors or experts who enter into a
contract with the employer/ client or management contractor. This procurement method was
presented, based upon the outset which a contractor has more proficiency to manage and
control the design part and construction part of a project. As a management consultant, the
hired contractor does not itself, carry out the design part or construction part of the project. Its
key obligation is to manage the design and construction by the design consultants and the
several expert contractors, respectively (Anon 2010). This procurement system is
recommended for large scale and complex construction projects.
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Figure No.06:- Organization Structure for Management Contract
Figure No.07:- Organization Structure for Construction Management
Advantages and disadvantages of Management Oriented Systems are illustrated in the Table
No.05
Table No.05:- Advantages and Disadvantages of Management Oriented Systems
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2.1.3.4.Collaborative System
The collaboration among two or more than two parties to accomplish fruitful project goals by
mutual commitment, fair dealing and shared investments. Launching collaborative practices is
of certain significance in building design & construction projects, as they are to be expected to
involve getting together a huge number of various disciplines (Designing Buildings 2014).
Partnering and the joint venture is the example for collaborative systems. Advantages and
disadvantages of Collaborative Systems are illustrated in the Table No.06
Partnering
Collaborative partnerships are actions and agreements prepared by consenting organizations to
share resources to achieve a common objective. It relies on involvement by minimum two
parties who agree to share resources, knowledge, such as finances, and people. Organizations
in a collaborative partnership share mutual objectives. The spirit of collaborative partnership
is for all parties to commonly benefit from working together (Anon 2006).
Joint venture
A joint venture (JV) is a contractual agreement in that the parties mutually reach a decision to
improve, for a limited time, a new asset & entity by contributing equity. They isometrics control
over the enterprise and accordingly expenses, share revenues and assets. There are other
categories of companies such as JV limited by guarantee, joint ventures limited by guarantee
with associates obtaining shares. (Anon., 2014)
Table No.06:- Advantages and disadvantages of Collaborative Systems
QUANTITY SURVEYING PRACTICE
BSc (Hons) in Quantity Surveying & Construction Management Page 33
2.1.4. Procurement Selection Criteria
Selection of a most appropriate procurement system based upon the employer/client project
duration, cost and quality. It can make a clear path for the decision maker to basic
understanding to choose a most suitable procurement system and which helps to find out the
project complexity with client’s requirements. This procedure must be done in the primary
stage.
When choosing the most appropriate procurement system mentioned below as Table No.07
and these details should be kept in mind.
Table No.07:- Factors affecting During Procurement Selection
QUANTITY SURVEYING PRACTICE
BSc (Hons) in Quantity Surveying & Construction Management Page 34
2.1.5. Conclusion and Recommendation
The construction procurement system essentially encompasses with a selection of contractual
framework which classifies the structure of participants’ responsibilities and powers that be
within the project. It provides for complete satisfaction of the employer / client and project
success. Therefore, it is essential to develop effectiveness. Even though there are various
construction procurement system, each method delivers not the same contractual arrangements.
Generally the selection of construction procurement is influenced by the employer/client’s
desires, including time, cost, quality, responsibility, certainty of construction project goals and
market situations. Therefore, attention on these significant factors supports to develop
effectiveness. Though attention on an extensive range of influences more than
employer/client’s desires, which guides to develop the efficiency of construction procurement
greatly, to gain a better productivity through appropriate choice and use, because construction
procurement effectiveness is affected by many different factors. Therefore, proper attention
must be taken on the following factors in the selection and application to develop the
effectiveness of procurement system which making a clear path for success of the project.
Below mentioned are the ways to develop procurement system effective in the construction
sector.
 Seminars: - when seminars are conducted for people in the construction sector,
regarding the importance of construction procurement system, selection process, the
application process and etc., Ultimately, it will make a clear path people and it will
increase the effectiveness
 Publications: - it is another route for construction industry people and others to know
clearly about construction procurement system.
 CPD Courses: - Continuous Professional Development (CPD) it is another route and it
is important for construction experts, inclusion of lesson on construction procurement
system will develop effectiveness.
 Media methods: - it is another route and it is more effective as it can reach the people
within a short time period. When instruction and implication matters are specified about
construction procurement system, ultimately it will lead them to improve effectiveness.
QUANTITY SURVEYING PRACTICE
BSc (Hons) in Quantity Surveying & Construction Management Page 35
Task 2.2
QUANTITY SURVEYING PRACTICE
BSc (Hons) in Quantity Surveying & Construction Management Page 36
Executive summary
This professional report contains answers for Task 2.2 which includes the Quantity Surveyors
great contribution towards dispute resolution. For dispute resolution there should be a suitable
method to be applied on various types, based on its requirement. Generally Quantity Surveyor’s
role to act as an expert dispute resolver by having broad knowledge in the field, ability to take
part in various roles in dispute resolution. Quantity Surveyor should efficiently take part is a
dispute resolution process in many ways to make a settlement. Quantity Surveyor should take
part in a project from the initial stage to completion.
Alternate Dispute Resolution (ADR) methods can be used to avoid disputes, resolve them at
prior stages, or settle them prior to formal litigation ADR method includes Negotiation,
Mediation, Conciliation, Arbitration and Adjudication. This report illustrates their advantages
and disadvantages of these methods.
There will be a case study illustrating the applications of mediation as an ADR, which
encourage the Quantity Surveyors to improve and apply the new methods for resolving
disputes. According to the case study, this report is suggesting that Mediation is a Suitable
ADR method solve disputes in the construction sector. There are many benefits to mediation
over other forms of ADR or civil litigation such as; less costly, fast progress, more flexible,
allows the opportunity for parties to work together and reach a settlement, freedom to express
their own opinions, private process, etc.
Finally, this report is illustrating the reason to select ADR and suggestions to improve the
effectiveness with the support of case study.
QUANTITY SURVEYING PRACTICE
BSc (Hons) in Quantity Surveying & Construction Management Page 37
Task 2.2.1.
2.2.1.1. Introduction
A mixture of behavioral and environmental factors which can lead to construction disputes.
Transaction in projects is generally a long time period with high difficulty and uncertainty, and
it is tough to resolve each and every detail and predict each unforeseen event at the outset. As
an effect, situations frequently arise which are not clearly addressed by the contract. The basic
factors which drive the growth of construction disputes are behavior, contractual problem and
uncertainty (The College of Estate Management, 2014). Progressive dispute resolutions tend to
minimize uncertainty and improve working relationships. Ultimately, it leads towards success
of the project.
2.2.1.2. Basic Factors of Construction Disputes
The basic factors of construction disputes are behavior, contractual problem and uncertainty
which is detail illustrated in the below mentioned Tale No.08
Table No.08:- Basic factors of Construction Dispute
QUANTITY SURVEYING PRACTICE
BSc (Hons) in Quantity Surveying & Construction Management Page 38
2.2.1.3. Common Factors of Construction Disputes
Common factors of construction disputes are; Site conditions, Quality and workmanship,
Variations, Project complexity, Design, Delay, Differing Goals, Acceleration and
Incoordination which are detail illustrated in the below mentioned Tale No.09
QUANTITY SURVEYING PRACTICE
BSc (Hons) in Quantity Surveying & Construction Management Page 39
Table No.09:- Common Factors of Construction Disputes
2.2.1.4. Quantity Surveyors Roles to Avoid Disputes
As a competent Quantity Surveyor should take part in a project from the initial stage to
completion. When all the parties entered into a contract, sometimes they may face several
disputes by various circumstances. When a dispute arises Quantity Surveyor should have to
select a suitable Dispute Resolution method. In the construction industry Quantity Surveyors
work as consultant’s QS, contractor’s QS and client’s QS. However, generally Quantity
Surveyor’s role to act as an expert dispute resolver by having broad knowledge in the field,
ability to take part in various roles in dispute resolution.
Quantity Surveyor should efficiently take part is a dispute resolution process in many ways to
make a settlement. Therefore, roles of QS’s input throughout the project can be the facilitator
(Arbitrator or Adjudicator or Member of Arbitration Tribunal) or an expert (Advisor the
facilitators or Representing a party or Independent expert to dispute) or witness.
QUANTITY SURVEYING PRACTICE
BSc (Hons) in Quantity Surveying & Construction Management Page 40
Below mentioned table No.10 explaining the Quantity Surveyor’s common job roles of from
initial stage to completion of a project to manage the upcoming disputes among parties who
entered into the project.
Table No.10:- Quantity Surveyors job Role in Construction Phases to Avoid Disputes
QUANTITY SURVEYING PRACTICE
BSc (Hons) in Quantity Surveying & Construction Management Page 41
2.2.1.5. Conclusion and Recommendation
Quantity Surveyors have great contribution towards dispute resolution. For dispute resolution
there should be a suitable method to be applied on various types, based on its requirement.
Generally Quantity Surveyor’s role to act as an expert dispute resolver by having broad
knowledge in the field, ability to take part in various roles in dispute resolution. Quantity
Surveyor should efficiently take part is a dispute resolution process in many ways to make a
settlement. Quantity Surveyor should take part in a project from the initial stage to completion.
Based on design requirements & conditions and contract conditions, Quantity Surveyors should
give advice to the parties on risk factors to prevent from dispute. Maintaining all important
projects related records, if there any dispute arise these will help to solve the problem.
Applying effective risk management strategies to avoid from disputes.
QUANTITY SURVEYING PRACTICE
BSc (Hons) in Quantity Surveying & Construction Management Page 42
Task 2.2.2
2.2.2.1.Introduction
Generally construction projects are with high difficulty and uncertainty, disputes are commonly
occurred in the project between the stakeholders. Therefore, dispute resolution method is
essentially required to settle the dispute. At the inception stage of a project, project related
contract document should be created with the dispute resolution method with the related
contract forms. Progressive dispute resolutions tend to minimize uncertainty and improve
working relationships. Ultimately, it leads towards success of the project. Resolution is
commonly divided into Litigation and Alternative Dispute Resolution (ADR). ADR defines
the procedures of dispute settlement other than by litigation (Bvumbwe and Thwala 2011).
2.2.2.2.Alternative Dispute Resolution (ADR)
This method is mainly focusing on disputes resolved with no intention of finding for court’s
support. Therefore, it is an alternative to the system of court. It is needed for each and every
dispute to be resolved in an effective manner (RICS 2014). The ADR method includes non-
adversarial and adversarial dispute resolution methods by having more advantages than
Litigation, which mentioned below;
 Non- Adversarial Dispute Resolution Methods :- Negotiation, Mediation and
Conciliation
 Adversarial Dispute Resolution Methods :- Arbitration and Adjudication
2.2.2.2.1. Non- Adversarial Dispute Resolution Method
2.2.2.2.1.1.Negotiation
It is an informal method for resolving disputes. Participants in this e negotiation process are
the parties in the contract and their nominated negotiators. Once parties try to resolve a dispute
by negotiation, it is not sure that the procedure will affect in a resolution. The negotiators and
their parties should deal face to face with each other. In a successful negotiation, the negotiators
and their parties reach a resolution of the dispute, according to the parties’ benefits (Goodman
2005). Advantage and disadvantages of negotiation are illustrated in table No.11
QUANTITY SURVEYING PRACTICE
BSc (Hons) in Quantity Surveying & Construction Management Page 43
Table No.11:- Advantages and Disadvantages of Negotiation
2.2.2.2.1.2.Mediation
In this mediation process, the parties who involved in the contract select an independent third
party (Known as Mediator), to aid them to come to a settlement of the dispute. As the mediator
shouldn’t represent the favor of either party. The mediator act as facilitator, who supports the
parties find out the strengths and weaknesses of their cases and support them to frame and
transmit settlement offers. When the disputants fail in agreeable settlement, the mediator will
give non-binding recommendations (Goodman 2005). Advantage and disadvantages of
Mediation are illustrated in table No.12.
Table No.12:- Advantages and Disadvantages of Mediation
2.2.2.2.1.3.Conciliation
It is an informal method, which is similar to mediation, and it is accompanied with designated
a neutral third party (Known as conciliator) by contract parties to dispute. But conciliator has
active participation in the discussion process between contract parties, giving views on the
cases put ahead appropriately and there will be no private meetings are conducted between
individual parties and conciliator regarding to dispute cases (Jack and Simon 2006). Advantage
and disadvantages of conciliation are illustrated in table No.13.
QUANTITY SURVEYING PRACTICE
BSc (Hons) in Quantity Surveying & Construction Management Page 44
Table No.13:- Advantages and Disadvantages of Conciliation
2.2.2.2.2. Non- Adversarial Dispute Resolution Method
2.2.2.2.2.1.Arbitration
It is a formal method, it is the process where the parties brings up disputes arising in the
progression of a contract to a nominated third party (Known as Arbitrator) to be resolved.
Where reference to arbitration is in writing, the process is run by the several Arbitration Acts.
The Acts need arbitration to be supported in a legal manner, and at the decision of a hearing
the Arbitrator must deliver reasons for any award prepared. The conclusion of the Arbitrator in
relation to conclusions of fact is decisive; there is no way to appeal. On the other hand, appeals
can be through the courts on points of law, however, only with the approval of the court hearing
the appeal. (Jack and Simon 2006). Advantage and disadvantages of Arbitration are illustrated
in table No.14.
Table No.14:- Advantages and Disadvantages of Arbitration
2.2.2.2.2.2.Adjudication
It is most successful Alternative Dispute Resolution method. It is a form of time-limited fast-
track arbitration and legal process that targets to offer a fast dispute resolution with the
participation of the agreed neutral third party (Known as Adjudicator) who will offer chances
to obtain wide-ranging information and to participate in group discussions and creates a
QUANTITY SURVEYING PRACTICE
BSc (Hons) in Quantity Surveying & Construction Management Page 45
temporarily binding decision for disputes related to the contract. Any party in construction
contract has right to have a dispute resolution decided by adjudicator. The adjudicator is a
subject matter expert and may be single or panel and considers the opinions of both parties and
inspects facts to make a decision. It is established to allow disputes to be resolved on an interim
basis more quickly and more cost effectively. (Tamimi 2014). Advantage and disadvantages of
Adjudication are illustrated in table No.15.
Table No.15:- Advantages and Disadvantages of Adjudication
2.2.2.3.Suggestion of Alternate Dispute Resolution (ADR) for Construction Disputes
The case study encourages its managers and quantity surveyors, to improve and use new ways
of solving disputes. Alternate Dispute Resolution (ADR) methods can be used to avoid
disputes, resolve them at prior stages, or settle them prior to formal litigation. ADR is a new
field, and additional methods are being established all the time. Table No.16 is only a summary
of a case study for construction disputes of Sacramento District Corps and Brutoco Engineering
and Construction. Full Detailed Case Study attached as Appendix No.01
QUANTITY SURVEYING PRACTICE
BSc (Hons) in Quantity Surveying & Construction Management Page 46
QUANTITY SURVEYING PRACTICE
BSc (Hons) in Quantity Surveying & Construction Management Page 47
Table No.15:- Summary of Case Study
Above mentioned case study illustrating the applications of mediation as an ADR, which
encourage the Quantity Surveyors to improve and apply the new methods for resolving
disputes. The mediator’s responsibility is to assist the parties in settling their dispute and be
fair and equitable to all parties if it is a binding mediation. There are many benefits to mediation
over other forms of ADR or civil litigation, (Construction Dispute Resolution Service, 2012).
According to the case study, this report is suggesting that Mediation is a Suitable ADR
method solve disputes in the construction sector. Here table N0.16 is illustrating some of the
major benefits which mediation and it offers to the construction sector as an ADR option.
QUANTITY SURVEYING PRACTICE
BSc (Hons) in Quantity Surveying & Construction Management Page 48
Table No.16:- Advantages to Mediation over other forms of ADR or Civil Litigation
2.2.2.4.Suggestions to Improve the Effectiveness of Mediation
 Mediator shout get an agreement from both opponent parties about a basic willingness
to resolve the dispute and let each opponent party to say what is the actual problem is
for them and find out that each opponent party has really understood the situation of
the other opponent party.
 Mediation process should be steer process, not content, use wise questioning for parties
and encourage suggestions from them.
 The mediator should be objective and support both parties, even if privately you prefer
one point of view.
 Mediator resists advising. If his or her suggestions are truly required, suggest as options
not instructions.
 The mediator should be supportive and use caring language, offer a non-threatening
learning atmosphere, where people will feel free and safe to open up.
 The mediator should create a win-win situation and work in the direction of wins for
both parties and turn opponents into problem resolving associates.
 During the process mediator should guide discussions towards a shared dispute
resolving method and avoid from personal attack also inspire them to look for solutions
where everybody gets what they want.
QUANTITY SURVEYING PRACTICE
BSc (Hons) in Quantity Surveying & Construction Management Page 49
2.2.2.5.Conclusion and Recommendation
Generally construction projects are with high difficulty and uncertainty, disputes are commonly
occurred in the project between the stakeholders. Therefore, dispute resolution method is
essentially required to settle the dispute. At the inception stage of a project. Alternate Dispute
Resolution (ADR) methods can be used to avoid disputes, resolve them at prior stages, or settle
them prior to formal litigation ADR method includes Negotiation, Mediation, Conciliation,
Arbitration and Adjudication.
Case study illustrating the applications of mediation as an ADR, which encourage the Quantity
Surveyors to improve and apply the new methods for resolving disputes. According to the case
study, this report is suggesting that Mediation is a Suitable ADR method solve disputes in the
construction sector. There are many benefits to mediation over other forms of ADR or civil
litigation such as; less costly, fast progress, more flexible, allows the opportunity for parties to
work together and reach a settlement, freedom to express their own opinions, private process,
etc.
To improve the effectiveness on mediation Mediator should be objective and support both
parties; Mediator shout get an agreement from both opponent parties about a basic willingness
to resolve the dispute and let each opponent party to say what is the actual problem is for them
and find out that each opponent party has really understood the situation of the other opponent
party; During the process mediator should guide discussions towards a shared dispute resolving
method and avoid from personal attack also inspire them to look for solutions where everybody
gets what they want. The mediator should create a win-win situation and work in the direction
of wins for both parties and turn opponents into problem resolving associates.
QUANTITY SURVEYING PRACTICE
BSc (Hons) in Quantity Surveying & Construction Management Page 50
Overall Conclusion and Recommendation
There are many QS firms assist clients to improve their approach in order to successfully
accomplish all of their construction projects. On the other hand, high risk is provided for
Quantity Surveying practices, Quantity surveyors are taking part in with the most of the
essential portion of the construction process as accountants, contract manager, economists,
lawyers, measurers, and etc. There will be so many changes and development in the
construction sector by the quantity surveyors in coming years. Construction sector embraces
IT in the construction process in all phases. IT is required essentially to operate and manage a
great amount of information and to direct complex projects. Therefore quantity surveyors need
enough capabilities to get extreme benefit from IT to be successful professional in the future
Quantity Surveyors should be conscious of the construction process and extension of time
period through the project with cost control and time management for the construction works,
which helps to find out the affected programs and preparation of gain Extension of Time (EOT)
claim. This professional report the Extension of Time (EOT) claim by introducing and
including project details, evident detail, delay analysis, baseline program and affected program,
then mitigation action and contemporary records. Then final Extension of Time (EOT) claim
is calculated by calculating site overheads and office overheads. EOT is helpful to the
contractor to prevent from liquidated damages. Quantity Surveyors can face many various
challenges in the future.
The construction procurement system essentially encompasses with a selection of contractual
framework which classifies the structure of participants’ responsibilities and powers that be
within the project. It provides to complete satisfaction of employer/client and project success.
Therefore, it is essential to develop effectiveness. Even though there are various construction
procurement system, each method delivers not the same contractual arrangements. Generally
the selection of construction procurement is influenced by the various factors. Therefore,
attention on these significant factors supports to develop effectiveness. Though attention on an
extensive range of influences more than employer/client’s desires, which guides to develop the
efficiency of construction procurement greatly, to gain a better productivity through
appropriate choice and use, because construction procurement effectiveness is affected by
many different factors. Therefore, proper attention must be taken on the following factors in
the selection and application to develop the effectiveness of procurement system which making
a clear path for success of the project.
QUANTITY SURVEYING PRACTICE
BSc (Hons) in Quantity Surveying & Construction Management Page 51
Disputes commonly occur in the project between the stakeholders. Therefore, dispute
resolution method is essentially required to settle the dispute. At the inception stage of a project.
Alternate Dispute Resolution (ADR) methods can be used to avoid disputes, resolve them at
prior stages, or settle them prior to formal litigation ADR method includes Negotiation,
Mediation, Conciliation, Arbitration and Adjudication.
Case study illustrating the applications of mediation as an ADR, which encourage the Quantity
Surveyors to improve and apply the new methods for resolving disputes. According to the case
study, this report is suggesting that Mediation is a Suitable ADR method solve disputes in the
construction sector. There are many benefits to mediation over other forms of ADR or civil
litigation such as; less costly, fast progress, more flexible, allows the opportunity for parties to
work together and reach a settlement, freedom to express their own opinions, private process,
etc. To improve the effectiveness on mediation Mediator should be objective and support both
parties
QUANTITY SURVEYING PRACTICE
BSc (Hons) in Quantity Surveying & Construction Management Page 52
References
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ASHWORTH, Allan and HOGG, Keith (2007). Willis's Practice and Procedure for the
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BVUMBWE, C and THWALA, D.W (2011). An Exploratory Study of Dispute Resolution
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Information and Finance, Singapore, Singapore, IACSIT Press, 32-36
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Mediation. [Online]. Last accessed 30 September 2014 at: http://www.constructiondisputes-
cdrs.com/advantages_of_mediation.htm
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construction. [Online]. Last accessed 13 September 2014 at:
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DESIGNING BUILDINGS (2014). Cost reimbursable contract. [Online]. Last accessed 12
September 2014 at: http://www.designingbuildings.co.uk/wiki/Cost_reimbursable_contract
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GOODMAN, A. H. (2005). Using Negotiation, Mediation and Arbitration to Resolve
Construction Disputes. [Online].Last accessed 18 September 2014 at:
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IBIRONKE, O.(2011). A Survey on the Use and Impact of Information Technology in
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MILLER, G., FURNEAUX, C.and DAVIS, P. (2007). Built Environment Procurement
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the Selection of Best Procurement System in Construction. [Online]. Last accessed 12
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SEAMUS COOLEY QUANTITY SURVEYORS (2007). Procurement. [Online]
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TAMIMI, E. A. (2014). Construction Adjudication. [Online]. Last accessed 29 September
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THE BOARD OF QUANTITY SURVEYORS MALAYSIA, 2012. What is Quantity
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QUANTITY SURVEYING PRACTICE
BSc (Hons) in Quantity Surveying & Construction Management Page 54
Appendix No.01
(Case Study)
QUANTITY SURVEYING PRACTICE
BSc (Hons) in Quantity Surveying & Construction Management Page 55
Appendix No.02
(Progression Plan of an Assignment)
QUANTITY SURVEYING PRACTICE
BSc (Hons) in Quantity Surveying & Construction Management Page 56

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Quantity surveying practise

  • 1. QUANTITY SURVEYING PRACTICE BSc. (Hons) in Quantity Surveying & Construction Management RAJENDRA SASIRAJ STUDENT ID: - 23047795
  • 2. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page I ACKNOWLEDGEMENT First of all I would like to thank the Almighty Lord Shiva and I convey thanks to our Quantity Surveying Practice Lecturer Ms. Indra Rajapakse who gave me enormous guidance and support me continuously. It was really helpful to me to complete this assignment successfully in a scheduled time. Further extending my gratitude to ICBT for giving me a chance to study this degree program offered by SHU (Sheffield Hallam University) and I express my sincere thanks to the Director, Lecturers and Staffs of ICBT. I express my gratitude to my senior students clearing my doubts and also I never forget my beloved parents at this time for allowing me to study and participate in this degree program to improve my status in the society. Finally, I would like to thank my friends for incorporating with me to complete my assignment
  • 3. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page II CONTENTS Page Number List of Figures IV List of Tables IV SECTION 1 Task 1.1 Fly Sheet 01 Executive Summary 02 Task 1.1 1.1.1. Introduction 03 1.1.2. History of Quantity Surveying 03 1.1.3. Role of Traditional Quantity Surveyors 03 1.1.4. Role of Modern Quantity Surveyors 04 1.1.5. Role of Future Quantity Surveyors 04 1.1.6. Introduction of Project Quantity Surveyor 08 1.1.7. Role of Project Quantity Surveyor Roles in Pre& Post Contract Stages 08 1.1.8. Conclusion and Recommendation 12 Task 1.2 Fly Sheet 13 Executive Summary 14 Task 1.2 1.2.1. Introduction 15 1.2.2. Extension of Time (EOT) Claim 15 1.2.3. EOT Calculation & Preparation for a Surface Water Disposal Project 16 1.2.4. Conclusion and Recommendation 22 SECTION 2 Task 2.1 Fly Sheet 24 Executive Summary 25 Task 2.1 2.1.1. Introduction 26 2.1.2. Construction Procurement 26 2.1.3. Types of Construction Procurement Systems 26 2.1.4. Procurement Selection Criteria 33 2.1.5. Conclusion and Recommendation 34
  • 4. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page III Task 2.2 Fly Sheet 35 Executive Summary 36 Task 2.2 Task 2.2.1 2.2.1.1. Introduction 37 2.2.1.2. Basic Factors of Construction Disputes 37 2.2.1.3. Common Factors of Construction Disputes 38 2.2.1.4. Quantity Surveyors Roles to Avoid Disputes 39 2.2.1.5. Conclusion and Recommendation 41 Task 2.2.2 2.2.2.1. Introduction 42 2.2.2.2. Alternative Dispute Resolution (ADR) 42 2.2.2.3. Suggestion of Alternate Dispute Resolution (ADR) for Construction Disputes 45 2.2.2.4. Suggestions to Improve the Effectiveness of Mediation 48 2.2.2.5. Conclusion and Recommendation 49 Overall Conclusion and Recommendation 50 References 52 Appendices ApeendixNo.01:- Case Study 54 ApeendixNo.02:- Progression Plan of Assignment 55
  • 5. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page IV List of Figures Page Number Figure No.01:- Base Line Program 18 Figure No.02:- Affected Program 18 Figure No.03:- Categorization of Construction Procurement Arrangements 26 Figure No.04:- Relationship of parties for Separated System 27 Figure No.05:- Relationship of Parties for Integrated System 29 Figure No.06:- Organization Structure for Management Contract 31 Figure No.07:- Organization Structure for Construction Management 31 List of Tables Page Number Table No.01:- Quantity Surveyors major roles in Construction Sector 07 Table No.02:- Project Quantity Surveyors major roles in Pre & Post Contract stage 11 Table No.03:- Advantages and Disadvantages of Separated System 28 Table No.04:- Advantages and Disadvantages of Integrated System 30 Table No.05:- Advantages and Disadvantages of Management Oriented Systems 31 Table No.06:- Advantages and Disadvantages of Collaborative Systems 32 Table No.07:- Factors affecting During Procurement Selection 33 Table No.08:- Basic Factors of Construction Dispute 37 Table No.09:- Common Factors of Construction Dispute 39 Table No.10:- Quantity Surveyors Job Role in Construction Phases to Avoid Disputes 40 Table No.11:- Advantages and Disadvantages of Negotiation 43 Table No.12:- Advantages and Disadvantages of Mediation 43 Table No.13:- Advantages and Disadvantages of Conciliation 44 Table No.14:- Advantages and Disadvantages of Arbitration 44 Table No.15:- Advantages and Disadvantages of Adjudication 45 Table No.16:- Advantages to Mediation over other forms of ADR or Civil Litigation 48
  • 6. Section 1 General Quantity Surveying Practice and Construction Claims
  • 7. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 1 Task 1.1
  • 8. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 2 Executive summary This professional report contains answer for Task 1.1 which includes quantity surveying practice which cover role of traditional quantity surveyors , modern quantity surveyors and future role of quantity surveyors, Quantity surveyors are take part in with the most of the essential portion of construction process as accountants, contract manager, economists, lawyers, measurers, and etc. To become an expert in construction field. A quantity surveyor (QS) is a construction professional in construction sector who is concerned with project costs. There is two stages in the construction which is pre-contract and post- contract. Quantity Surveyor should be more responsible for all the construction phases as per the scenario, I assume myself as a Project Quantity Surveyor for “M/s Walter Consultants” company for a middle scale building project. As Project Quantity Surveyor the major role in Pre Contract & Post Contract Stages are explain in detail manner
  • 9. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 3 Task 1.1 1.1.1. Introduction There is a high demand for Quantity Surveyors, they are playing a very important role similar to other experts in the modern construction sector. In the past decades, QS job roles are limited to take part in with the tender process, measurement works, and BOQ preparation, now days these situations are improved with the development, complexity and practice of new construction techniques & methods and also involvement information technology in the industry. These days, Quantity surveyors are take part in with the most of the essential portion of construction process as accountants, contract manager, economists, lawyers, measurers, and etc. To become an expert in construction field, QS should be familiar with those roles and also need to be more responsive of construction program and claims associated to standard forms of contract documents which used by the construction professional in all over the world. 1.1.2. History of Quantity Surveying This profession developed in the period of 19th century from the earlier years it is well known as "measurer", a construction specialist tradesman, who arranged and prepared standardized schedules for a building project. Quantity surveying profession emerged around year 1820s with one of the earliest QSs being Sir “Henry Arthur Hunt”, he was take part in work on the Houses of Parliament (The Board of Quantity Surveyors Malaysia 2012). From the 1970 onwards, the profession began to develop quickly (Ashworth and Hogg 2007). 1.1.3. Role of Traditional Quantity Surveyors Traditionally, QS are depend upon on to measure and calculate each and every elements of the construction project, primary cost planning ,controlling all costs throughout construction process, giving advice on procurement advice, planning budgetary archives, preparing financial documents, maintaining the valuation and account records (Ashworth and Hogg 2007). Majority of the utmost important tasks which are traditionally perform by quantity surveyors are based upon the measuring, evaluating and pricing of construction works (Olatunji, Sher and Gu 2010). Their roles is illustrated Table No.1
  • 10. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 4 1.1.4. Role of Modern Quantity Surveyors In the modern construction Sector Industry, QS plays an essential part and the improvement within their field have developed due to the broad selections available for procuring assets for construction activities, the broad, complicated nature in construction activities and the wide- ranging number of legal and contractual disputes which occur in the construction sector (Ashworth and Hogg 2007). Their roles are illustrated Table No.1 1.1.5. Role of Future Quantity Surveyors The construction sector is booming all around the world, new technologies and methods of construction are developing so as the roles of the quantity surveyors is also changing as well as other professional practice. Further quantity surveyors should update their knowledge and skill according to new construction and information technologies. Especially the parts of traditional practices, improved vividly in the perspective of value engineering, risk management, Life cycle costing (LCC) and financial management of the construction project. In the future Advanced CAD software, BIM modeling software, Project management software and other required software will be operated quantity surveyors works (Ibironke 2011). Their roles are illustrated Table No.1
  • 11. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 5
  • 12. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 6
  • 13. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 7 Table No.01:- Quantity Surveyors Major Roles in Construction Sector
  • 14. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 8 1.1.6. Introduction of Project Quantity Surveyor A quantity surveyor (QS) is a construction professional in the construction sector who is concerned with project costs. (The Board of Quantity Surveyors Malaysia, 2012). A Project Quantity Surveyor is an expert in the art of costing a project at all its stages. Project Quantity Surveyors are highly trained professionals delivering an expert guidance on construction project cots. They are very important for life cycle costing (LCC), cost planning, procurement and tendering process, contract administration and financial management. Sometimes project Quantity Surveyor may be a Chartered Quantity Surveyor, may be take part in a project as a specialist in particular area or generalize in several areas of a project (RICS 2012). 1.1.7. Role of Project Quantity Surveyor Roles in Pre Contract & Post Contract Stages There is two stages in the construction which is pre-contract and post-contract. Quantity Surveyor should be more responsible for all the construction phases as per the scenario, I assume myself as a Project Quantity Surveyor for “M/s Walter Consultants” company for a middle scale building project. As Project Quantity Surveyor the major role in Pre Contract & Post Contract Stages are explain in detail manner in the Table No.02.
  • 15. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 9
  • 16. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 10
  • 17. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 11 Table No.02:- Project Quantity Surveyors major roles in Pre & Post Contract stage
  • 18. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 12 1.1.8. Conclusion & Recommendation There are many QS firms assist clients to improve their approach in order to successfully accomplish all of their construction projects. On the other hand, high risk is provided for Quantity Surveying practices, Quantity surveyors are taking part in with the most of the essential portion of the construction process as accountants, contract manager, economists, lawyers, measurers, and etc. There will be so many changes and development in the construction sector by the quantity surveyors in coming years. Construction sector embraces IT in the construction process in all phases so the Quantity Surveyors can face many various challenges in the future. IT is required essentially to operate and manage a great amount of information and to direct complex projects. Therefore quantity surveyors need enough capabilities to get extreme benefit from IT to be successful professional in future more than today. In these days there has been significant improvement & innovation in industries such as IT, Construction, Commerce and etc. There are some positive improvements can be seen which rose in many professional practices as well as quantity surveying profession, due to these improvements there are some positive changes in education field such as; teaching, training and learning styles which positively increase graduate's ability, further professional bodies alike; AIQS, CIOB, IQSSL, RICS and etc. Support the graduates to uplift their ability. Therefore, an effective training, education and CPD courses through well recognize professional bodies will make a quantity surveyor to competitively work and face the challenges efficiently throughout his life. Construction projects are facing many risks and more disagreement with internal and external stakeholders, which making a path for; complicated processes, long time period, abominable surroundings and etc. Therefore as it is essential which gives significant role to Quantity Surveyors to perform as dispute resolver as well as risk manager. Therefore Quantity Surveyors must able to perform this well, because risk and dispute may be barricade to accomplish the goal. Therefore Quantity Surveyors should concern more on this in future more than present because number of risks and dispute are quickly increasing in process of construction.
  • 19. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 13 Task 1.2
  • 20. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 14 Executive summary This professional report contains answers for Task 1.2 which includes Contractors’ Quantity Surveyor’s Major duty and responsibility. Quantity Surveyor uses his or her capability to aid the contractor to increase profits and reduce losses. There are many factors that can delay the construction project subsequently, based on the delay contractor can entitled to claim the delay event from the employer/client by authenticating the delay, or else contractor will face liquidity damages. There are the major types of Construction Claims in the industry A quantity surveyor (QS) is a construction professional in the construction sector who is concerned with project costs. I assume myself as a Project Quantity Surveyor for “M/s. Great Building Contractors Ltd.” For a Surface Water Disposal Project. The report consists Interim Particulars Submission on acceptable format which consisting of Assumed Project details, Delay event details, Delay notice, Delay analysis with the base line program and affected program, Contemporary records, Mitigation actions, there will be a calculation of the extended cost of Site Overheads and by using Hudson formula to find out the extended cost of Head office overheads.
  • 21. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 15 Task 1.2 1.2.1. Introduction Generally, the construction industry is very complicated and with high unknown risk. Therefore, parties who are involved in the construction project have to make sure that the construction progresses are in a correct track if not it can lead to delay the construction projects. There are many factors that can delay the construction project such as; Government regulations, Design errors or omissions, Planning errors, Accidents, Poorly written contracts, Execution errors, Variations in quantities, Delay caused by owner, etc. Subsequently, based on the delay contractor can entitled to claim the delay event from the employer/client by authenticating the delay, or else contractor will face liquidity damages. There are the major types of Construction Claims in the industry such as; Contract Ambiguity Claims, Delay claims, Acceleration Claims, Changes Claims, Extra-Work Claims, Different Site Conditions Claims, Damage Claims and Non-Performance Claims (Zaneldin, 2005). According to the FIDIC 1999, Sub- clause 20.1, Contractor can submit his claim within 28 days after the incident occurs or else engineer can cancel the claim (Practical Law 2014). 1.2.2. Extension of Time (EOT) Claim It is a very essential and commonly occurred in construction projects, particularly when a legal standard form of contract is applied. These will provide clauses for an extension of time because of allowable delay events in construction projects and it is practiced by contractors broadly to prevent from upcoming liquidated damages (Norazian and Hamimah. 2012). Standard contracts are a legal agreement which containing a lawful object entered into voluntarily by the parties, established with firm start and completion date (Anon 2012). On the off chance that the contractors couldn’t complete on time due to his own particular problems, which will be deliberated as contractor’s delay. At the point pre agreed liquidated damage amount should be compensated for delay of every day by the contractor to the client / employer. Then again, sometimes contractor cannot be accountable when works get delayed because of employers or unforeseen natural disasters occurs on the site. If something occurs besides contractor’s mistake, ultimately without no doubt the responsibility goes under client/employer liability. This kind of situation the contractor can entitle to go for EOT Claim (Norazian and Hamimah. 2012). World widely FIDIC form contract is well recognized and it is mostly used form of contract in the construction sector. Below mentioned clauses are from some edition related to delay and related cost. 1. In FIDIC 1987 Edition, Clauses 44 & 53 2. In FIDIC 1999 Edition Sub-Clauses 8.4 & 20.1
  • 22. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 16 1.2.3. EOT Calculation & Preparation for a Surface Water Disposal Project 1.2.3.1.Project details  Project Name: - Surface Water Disposal Project  Client Name: - Ministry of Irrigation & Water Resources Management Sri Lanka  Consultant Name: - M/s. Central Engineering Consultancy Bureau  Contractor Name: - M/s. Great Building Contractors Ltd.  Project Duration: - Ten (10) Months  Project Start Date: - 03 March 2014  Project Completion Date: - 12 January 2015  Contract Amount: - 168,000,000.00 Rs (168 Million)  Contract Location – Lunavil East, Chavakachcheri, Jaffna, Sri Lanka. 1.2.3.2.Breakdown of Contract Price Breakdown of Preliminaries 1.2.3.3.Delay event In this Surface Water Disposal Project, according to baseline program, construction work for pump house for concrete foundation activity is planned to complete within two weeks’ time period. It is planned to start on fifth week of the construction project and planned to finish in the end of sixth, because of the “unusual climate condition as heavy wind and rain” activity is delayed by further three weeks and it is started on eighth week.
  • 23. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 17 1.2.3.4.Delay Notice
  • 24. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 18 1.2.3.5.Delay Analysis Normally delay analysis is done by several methods, according to this Surface Water Disposal Project, it is carried out by baseline program and affected program. 1.2.3.5.1. Base Line Program Figure No.01:- Base Line Program 1.2.3.5.2. Affected Program Figure No.02:- Affected Program 3 Weeks
  • 25. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 19 Because of heavy wind, rain, construction of concrete foundation activity is affected for Pump House building in the Surface Water Disposal Project, according to the baseline program and affected program, concrete foundation activity is planned to complete within two weeks time period. It is planned to start on fifth week of the construction project and planned to finish in the end of sixth, because of the “unusual climate condition as heavy wind and rain” activity is delayed by further three weeks and it is started on eighth week and other chain of activities also affected. 1.2.3.6. Mitigation action Concrete foundation activity is affected for Pump House building gets delayed due to heavy wind and rain, also the site is become flood, even though we minimized the effect water coming to the excavation area especially for the foundation by doing dewatering function and providing plastic sheets and other protection covers to cover to cover the particular area. As a result, it helps to protect the excavated foundation area from collapse, but it was a large storm rainfall and heavy force wind, was not able to manage and control the flooding over the next days. If the Engineer instructed to finish the works in planned time, below points are carried out to mitigate the problem and help to finish works in planned time.  Increase in number of workers  Increase in machinery and plants  Increase working hours 1.2.3.7.Contemporary Records As a contemporary records the contractor has given data focused about the project method statement, planned program (baseline program), built a program (affected program), rainfall records (daily records and data from February 2014 to May 2014 from Sri Lankan Meteorological Department and Evidence Photographs), Inspection records, Day work records, Site Diary, and Minutes of Meeting.
  • 26. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 20 1.2.3.8. EOT claim 1.2.3.8.1. Extended Site Overhead Cost 1.2.3.8.2. Extended Head Office Charges (HUDSON FORMULA) 1.2.3.8.3. Final Claim
  • 27. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 21 1.2.3.9.Final Claim Letter
  • 28. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 22 1.2.4. Conclusion and Recommendation Quantity Surveyors should be conscious of the construction process and extension of time period through the project with cost control and time management for the construction works, which helps to find out the affected programs and preparation of gain Extension of Time (EOT) claim. This professional report the Extension of Time (EOT) claim by introducing and including project details, evident detail, delay analysis, baseline program and affected program, then mitigation action and contemporary records. Then final Extension of Time (EOT) claim is calculated by calculating site overheads and office overheads. EOT is helpful to the contractor to prevent from liquidated damages. Quantity Surveyors can face many various challenges in the future. IT is required essentially to operate and manage a great amount of information and to direct complex projects. Therefore quantity surveyors need enough capabilities to get extreme benefit from IT to be successful professional in future more than today.
  • 29. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 23
  • 30. Section 2 Construction Procurement and Dispute Resolution
  • 31. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 24 Task 2.1
  • 32. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 25 Executive summary This professional report contains answers for Task 2.1 which includes Contractors’ Quantity Surveyor’s Major duty and responsibility. Their responsibility is selecting a most appropriate construction procurement method. According to the given scenario that I have been appointed to conduct a research on construction procurement in Sri Lankan construction industry. Basically construction procurement system mentions to the procedure of obtaining or acquiring property or goods or services, and starts with the willpower of a necessity for a service or property and finishes with the completion & closeout of a contract. This report illustrates major four types of procurement system such as; traditional system, separated system, management oriented system and collaborative system and their advantages and disadvantages, their relationship with the parties, finally there will be a suggestion, and recommendation, to improve the construction procurement in Sri Lanka
  • 33. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 26 Task 2.1 2.1.1. Introduction A most important job role of quantity surveyor as a procurement manager is selecting a most appropriate construction procurement method. According to the given scenario that I have been appointed to conduct a research on construction procurement in Sri Lankan construction industry. There are different construction procurement system in the construction industry. Selecting a wrong construction procurement system usually leads to client dissatisfaction and project failure. Therefore, to accomplish client target, Quantity Surveyors should select a best and suitable construction procurement in a realistic and systematic methods. The appropriateness of construction procurement system relies on the duration, size, quality, complexity and other essential factors (Ratnasabapathy and Rameezdeen 2007). 2.1.2. Construction Procurement Basically construction procurement system mentions to the procedure of obtaining or acquiring property or goods or services, and starts with the willpower of a necessity for a service or property and finishes with the completion & closeout of a contract (Palaneeswaran, Kumaraswamy and Ng 2003). An organizational structure which organizes particular authorities and responsibilities to participants and describes the connection of the various components in the construction projects (Miller, Furneaux and Davis 2007). 2.1.3. Types of Construction Procurement Systems Figure No.03:- Categorization of Construction Procurement Arrangements
  • 34. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 27 2.1.3.1.Separated System Separated system also knows as “Traditional System”, in this approach, the procurement traditional structure is viewed as a progressive method due to the employer. He takes his arrangement to an advanced phase with his expert team before assigning a contractor. The designer is hired to guide the employer/client. The designer will design and make sure that the project is kept within the budget and fulfills the required standards. A QS can be engaged to provide supervision on design costs and budgets, preparation of BOQ, tender evaluation, preparation of interim valuations and advising on the variation values. The contract amount generally relies on a BOQ issued by the QS that calculates, so far as possible, each and every part of the works. Consultant structural and services engineers may be hired by the employer’s advisors or directly by the employer to design the special components of the project. The contractor only has responsibility for construction and not for design. (Semus Cooley Quantity Surveyors 2007). Figure No.04:- Relationship of Parties for Separated System
  • 35. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 28 There are three major contracts under this procurement such; Lump Sum Contract, Measurement Contract and Cost Reimbursement Contract, which illustrated below: 1. Lump Sum Contract: - Here the contract amount/price is decided before starting the construction, and the price / amount is stated in the agreement. The contracts “with quantities” are priced according to firm bills of quantities and drawings. The contracts “without quantities” are estimated according to drawings and other documents (Rodriguez 2014). 2. Measurement Contract: - Here the contract amount/price is accurately recognized on accomplishment and after re-measurement to do few on agreed basis. It provides a smaller amount risk to client perhaps based on drawings, schedule of rates and rough quantities (Designing Buildings 2014). 3. Cost Reimbursement Contract: - It is also known as cost plus contract, here contractor can reimbursed the actual costs they gain in carrying out the works, plus an extra fee. Contract amount/price is arrived based on actual costs of manpower, material and plant, to which is added a fee to cover profit and overheads. The amount/costs for which the contractor is permitted to be reimbursed should be set out in the contract very clearly (Designing Buildings 2014). Advantages and disadvantages of Separated System are illustrated in the Table No.03 Table No.03:- Advantages and Disadvantages of Separated System
  • 36. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 29 2.1.3.2.Integrated System Integrated system also knows as “Design and Build”, in this approach, main contractor is appointed to design and construct the works. The main contractor may possibly use their own internal designers to design, the construction project or they can hire design consultants or the client's design consultants can be hired by the main contractor to finish the project design. If the contractor is employed at the inception of the construction project, so which they can contribute their support to the improvement of the design from the commencement, they can be employed through a two (2) phase procedure. In the initial phase, the contractor is carefully chosen on the basis of a fee, preliminaries, profit and overhead. Then they work with the design team, who might be hired either by the employer/client or by the contractor at this phase to improve the design, on the basis of that a fixed amount is negotiated for the second phase; construction, when the design team may substitute a new contract for an old one to the main contractor if the main contractor does not already hire them. (Designing Buildings, 2014) Figure No.05:- Relationship of Parties for Integrated System
  • 37. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 30 Advantages and disadvantages of Integrated System are illustrated in the Table No.04 Table No.04:- Advantages and Disadvantages of Integrated System 2.1.3.3.Management Oriented Systems Management Oriented Systems which provide great importance of the management and the combination of the design and construction of projects. Under this procurement system, the management function from the design and construction of a project is contracted out to a contractor who perform as a management consultant in support of the employer/client. The construction itself is particularly made to many subcontractors or experts who enter into a contract with the employer/ client or management contractor. This procurement method was presented, based upon the outset which a contractor has more proficiency to manage and control the design part and construction part of a project. As a management consultant, the hired contractor does not itself, carry out the design part or construction part of the project. Its key obligation is to manage the design and construction by the design consultants and the several expert contractors, respectively (Anon 2010). This procurement system is recommended for large scale and complex construction projects.
  • 38. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 31 Figure No.06:- Organization Structure for Management Contract Figure No.07:- Organization Structure for Construction Management Advantages and disadvantages of Management Oriented Systems are illustrated in the Table No.05 Table No.05:- Advantages and Disadvantages of Management Oriented Systems
  • 39. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 32 2.1.3.4.Collaborative System The collaboration among two or more than two parties to accomplish fruitful project goals by mutual commitment, fair dealing and shared investments. Launching collaborative practices is of certain significance in building design & construction projects, as they are to be expected to involve getting together a huge number of various disciplines (Designing Buildings 2014). Partnering and the joint venture is the example for collaborative systems. Advantages and disadvantages of Collaborative Systems are illustrated in the Table No.06 Partnering Collaborative partnerships are actions and agreements prepared by consenting organizations to share resources to achieve a common objective. It relies on involvement by minimum two parties who agree to share resources, knowledge, such as finances, and people. Organizations in a collaborative partnership share mutual objectives. The spirit of collaborative partnership is for all parties to commonly benefit from working together (Anon 2006). Joint venture A joint venture (JV) is a contractual agreement in that the parties mutually reach a decision to improve, for a limited time, a new asset & entity by contributing equity. They isometrics control over the enterprise and accordingly expenses, share revenues and assets. There are other categories of companies such as JV limited by guarantee, joint ventures limited by guarantee with associates obtaining shares. (Anon., 2014) Table No.06:- Advantages and disadvantages of Collaborative Systems
  • 40. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 33 2.1.4. Procurement Selection Criteria Selection of a most appropriate procurement system based upon the employer/client project duration, cost and quality. It can make a clear path for the decision maker to basic understanding to choose a most suitable procurement system and which helps to find out the project complexity with client’s requirements. This procedure must be done in the primary stage. When choosing the most appropriate procurement system mentioned below as Table No.07 and these details should be kept in mind. Table No.07:- Factors affecting During Procurement Selection
  • 41. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 34 2.1.5. Conclusion and Recommendation The construction procurement system essentially encompasses with a selection of contractual framework which classifies the structure of participants’ responsibilities and powers that be within the project. It provides for complete satisfaction of the employer / client and project success. Therefore, it is essential to develop effectiveness. Even though there are various construction procurement system, each method delivers not the same contractual arrangements. Generally the selection of construction procurement is influenced by the employer/client’s desires, including time, cost, quality, responsibility, certainty of construction project goals and market situations. Therefore, attention on these significant factors supports to develop effectiveness. Though attention on an extensive range of influences more than employer/client’s desires, which guides to develop the efficiency of construction procurement greatly, to gain a better productivity through appropriate choice and use, because construction procurement effectiveness is affected by many different factors. Therefore, proper attention must be taken on the following factors in the selection and application to develop the effectiveness of procurement system which making a clear path for success of the project. Below mentioned are the ways to develop procurement system effective in the construction sector.  Seminars: - when seminars are conducted for people in the construction sector, regarding the importance of construction procurement system, selection process, the application process and etc., Ultimately, it will make a clear path people and it will increase the effectiveness  Publications: - it is another route for construction industry people and others to know clearly about construction procurement system.  CPD Courses: - Continuous Professional Development (CPD) it is another route and it is important for construction experts, inclusion of lesson on construction procurement system will develop effectiveness.  Media methods: - it is another route and it is more effective as it can reach the people within a short time period. When instruction and implication matters are specified about construction procurement system, ultimately it will lead them to improve effectiveness.
  • 42. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 35 Task 2.2
  • 43. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 36 Executive summary This professional report contains answers for Task 2.2 which includes the Quantity Surveyors great contribution towards dispute resolution. For dispute resolution there should be a suitable method to be applied on various types, based on its requirement. Generally Quantity Surveyor’s role to act as an expert dispute resolver by having broad knowledge in the field, ability to take part in various roles in dispute resolution. Quantity Surveyor should efficiently take part is a dispute resolution process in many ways to make a settlement. Quantity Surveyor should take part in a project from the initial stage to completion. Alternate Dispute Resolution (ADR) methods can be used to avoid disputes, resolve them at prior stages, or settle them prior to formal litigation ADR method includes Negotiation, Mediation, Conciliation, Arbitration and Adjudication. This report illustrates their advantages and disadvantages of these methods. There will be a case study illustrating the applications of mediation as an ADR, which encourage the Quantity Surveyors to improve and apply the new methods for resolving disputes. According to the case study, this report is suggesting that Mediation is a Suitable ADR method solve disputes in the construction sector. There are many benefits to mediation over other forms of ADR or civil litigation such as; less costly, fast progress, more flexible, allows the opportunity for parties to work together and reach a settlement, freedom to express their own opinions, private process, etc. Finally, this report is illustrating the reason to select ADR and suggestions to improve the effectiveness with the support of case study.
  • 44. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 37 Task 2.2.1. 2.2.1.1. Introduction A mixture of behavioral and environmental factors which can lead to construction disputes. Transaction in projects is generally a long time period with high difficulty and uncertainty, and it is tough to resolve each and every detail and predict each unforeseen event at the outset. As an effect, situations frequently arise which are not clearly addressed by the contract. The basic factors which drive the growth of construction disputes are behavior, contractual problem and uncertainty (The College of Estate Management, 2014). Progressive dispute resolutions tend to minimize uncertainty and improve working relationships. Ultimately, it leads towards success of the project. 2.2.1.2. Basic Factors of Construction Disputes The basic factors of construction disputes are behavior, contractual problem and uncertainty which is detail illustrated in the below mentioned Tale No.08 Table No.08:- Basic factors of Construction Dispute
  • 45. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 38 2.2.1.3. Common Factors of Construction Disputes Common factors of construction disputes are; Site conditions, Quality and workmanship, Variations, Project complexity, Design, Delay, Differing Goals, Acceleration and Incoordination which are detail illustrated in the below mentioned Tale No.09
  • 46. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 39 Table No.09:- Common Factors of Construction Disputes 2.2.1.4. Quantity Surveyors Roles to Avoid Disputes As a competent Quantity Surveyor should take part in a project from the initial stage to completion. When all the parties entered into a contract, sometimes they may face several disputes by various circumstances. When a dispute arises Quantity Surveyor should have to select a suitable Dispute Resolution method. In the construction industry Quantity Surveyors work as consultant’s QS, contractor’s QS and client’s QS. However, generally Quantity Surveyor’s role to act as an expert dispute resolver by having broad knowledge in the field, ability to take part in various roles in dispute resolution. Quantity Surveyor should efficiently take part is a dispute resolution process in many ways to make a settlement. Therefore, roles of QS’s input throughout the project can be the facilitator (Arbitrator or Adjudicator or Member of Arbitration Tribunal) or an expert (Advisor the facilitators or Representing a party or Independent expert to dispute) or witness.
  • 47. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 40 Below mentioned table No.10 explaining the Quantity Surveyor’s common job roles of from initial stage to completion of a project to manage the upcoming disputes among parties who entered into the project. Table No.10:- Quantity Surveyors job Role in Construction Phases to Avoid Disputes
  • 48. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 41 2.2.1.5. Conclusion and Recommendation Quantity Surveyors have great contribution towards dispute resolution. For dispute resolution there should be a suitable method to be applied on various types, based on its requirement. Generally Quantity Surveyor’s role to act as an expert dispute resolver by having broad knowledge in the field, ability to take part in various roles in dispute resolution. Quantity Surveyor should efficiently take part is a dispute resolution process in many ways to make a settlement. Quantity Surveyor should take part in a project from the initial stage to completion. Based on design requirements & conditions and contract conditions, Quantity Surveyors should give advice to the parties on risk factors to prevent from dispute. Maintaining all important projects related records, if there any dispute arise these will help to solve the problem. Applying effective risk management strategies to avoid from disputes.
  • 49. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 42 Task 2.2.2 2.2.2.1.Introduction Generally construction projects are with high difficulty and uncertainty, disputes are commonly occurred in the project between the stakeholders. Therefore, dispute resolution method is essentially required to settle the dispute. At the inception stage of a project, project related contract document should be created with the dispute resolution method with the related contract forms. Progressive dispute resolutions tend to minimize uncertainty and improve working relationships. Ultimately, it leads towards success of the project. Resolution is commonly divided into Litigation and Alternative Dispute Resolution (ADR). ADR defines the procedures of dispute settlement other than by litigation (Bvumbwe and Thwala 2011). 2.2.2.2.Alternative Dispute Resolution (ADR) This method is mainly focusing on disputes resolved with no intention of finding for court’s support. Therefore, it is an alternative to the system of court. It is needed for each and every dispute to be resolved in an effective manner (RICS 2014). The ADR method includes non- adversarial and adversarial dispute resolution methods by having more advantages than Litigation, which mentioned below;  Non- Adversarial Dispute Resolution Methods :- Negotiation, Mediation and Conciliation  Adversarial Dispute Resolution Methods :- Arbitration and Adjudication 2.2.2.2.1. Non- Adversarial Dispute Resolution Method 2.2.2.2.1.1.Negotiation It is an informal method for resolving disputes. Participants in this e negotiation process are the parties in the contract and their nominated negotiators. Once parties try to resolve a dispute by negotiation, it is not sure that the procedure will affect in a resolution. The negotiators and their parties should deal face to face with each other. In a successful negotiation, the negotiators and their parties reach a resolution of the dispute, according to the parties’ benefits (Goodman 2005). Advantage and disadvantages of negotiation are illustrated in table No.11
  • 50. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 43 Table No.11:- Advantages and Disadvantages of Negotiation 2.2.2.2.1.2.Mediation In this mediation process, the parties who involved in the contract select an independent third party (Known as Mediator), to aid them to come to a settlement of the dispute. As the mediator shouldn’t represent the favor of either party. The mediator act as facilitator, who supports the parties find out the strengths and weaknesses of their cases and support them to frame and transmit settlement offers. When the disputants fail in agreeable settlement, the mediator will give non-binding recommendations (Goodman 2005). Advantage and disadvantages of Mediation are illustrated in table No.12. Table No.12:- Advantages and Disadvantages of Mediation 2.2.2.2.1.3.Conciliation It is an informal method, which is similar to mediation, and it is accompanied with designated a neutral third party (Known as conciliator) by contract parties to dispute. But conciliator has active participation in the discussion process between contract parties, giving views on the cases put ahead appropriately and there will be no private meetings are conducted between individual parties and conciliator regarding to dispute cases (Jack and Simon 2006). Advantage and disadvantages of conciliation are illustrated in table No.13.
  • 51. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 44 Table No.13:- Advantages and Disadvantages of Conciliation 2.2.2.2.2. Non- Adversarial Dispute Resolution Method 2.2.2.2.2.1.Arbitration It is a formal method, it is the process where the parties brings up disputes arising in the progression of a contract to a nominated third party (Known as Arbitrator) to be resolved. Where reference to arbitration is in writing, the process is run by the several Arbitration Acts. The Acts need arbitration to be supported in a legal manner, and at the decision of a hearing the Arbitrator must deliver reasons for any award prepared. The conclusion of the Arbitrator in relation to conclusions of fact is decisive; there is no way to appeal. On the other hand, appeals can be through the courts on points of law, however, only with the approval of the court hearing the appeal. (Jack and Simon 2006). Advantage and disadvantages of Arbitration are illustrated in table No.14. Table No.14:- Advantages and Disadvantages of Arbitration 2.2.2.2.2.2.Adjudication It is most successful Alternative Dispute Resolution method. It is a form of time-limited fast- track arbitration and legal process that targets to offer a fast dispute resolution with the participation of the agreed neutral third party (Known as Adjudicator) who will offer chances to obtain wide-ranging information and to participate in group discussions and creates a
  • 52. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 45 temporarily binding decision for disputes related to the contract. Any party in construction contract has right to have a dispute resolution decided by adjudicator. The adjudicator is a subject matter expert and may be single or panel and considers the opinions of both parties and inspects facts to make a decision. It is established to allow disputes to be resolved on an interim basis more quickly and more cost effectively. (Tamimi 2014). Advantage and disadvantages of Adjudication are illustrated in table No.15. Table No.15:- Advantages and Disadvantages of Adjudication 2.2.2.3.Suggestion of Alternate Dispute Resolution (ADR) for Construction Disputes The case study encourages its managers and quantity surveyors, to improve and use new ways of solving disputes. Alternate Dispute Resolution (ADR) methods can be used to avoid disputes, resolve them at prior stages, or settle them prior to formal litigation. ADR is a new field, and additional methods are being established all the time. Table No.16 is only a summary of a case study for construction disputes of Sacramento District Corps and Brutoco Engineering and Construction. Full Detailed Case Study attached as Appendix No.01
  • 53. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 46
  • 54. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 47 Table No.15:- Summary of Case Study Above mentioned case study illustrating the applications of mediation as an ADR, which encourage the Quantity Surveyors to improve and apply the new methods for resolving disputes. The mediator’s responsibility is to assist the parties in settling their dispute and be fair and equitable to all parties if it is a binding mediation. There are many benefits to mediation over other forms of ADR or civil litigation, (Construction Dispute Resolution Service, 2012). According to the case study, this report is suggesting that Mediation is a Suitable ADR method solve disputes in the construction sector. Here table N0.16 is illustrating some of the major benefits which mediation and it offers to the construction sector as an ADR option.
  • 55. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 48 Table No.16:- Advantages to Mediation over other forms of ADR or Civil Litigation 2.2.2.4.Suggestions to Improve the Effectiveness of Mediation  Mediator shout get an agreement from both opponent parties about a basic willingness to resolve the dispute and let each opponent party to say what is the actual problem is for them and find out that each opponent party has really understood the situation of the other opponent party.  Mediation process should be steer process, not content, use wise questioning for parties and encourage suggestions from them.  The mediator should be objective and support both parties, even if privately you prefer one point of view.  Mediator resists advising. If his or her suggestions are truly required, suggest as options not instructions.  The mediator should be supportive and use caring language, offer a non-threatening learning atmosphere, where people will feel free and safe to open up.  The mediator should create a win-win situation and work in the direction of wins for both parties and turn opponents into problem resolving associates.  During the process mediator should guide discussions towards a shared dispute resolving method and avoid from personal attack also inspire them to look for solutions where everybody gets what they want.
  • 56. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 49 2.2.2.5.Conclusion and Recommendation Generally construction projects are with high difficulty and uncertainty, disputes are commonly occurred in the project between the stakeholders. Therefore, dispute resolution method is essentially required to settle the dispute. At the inception stage of a project. Alternate Dispute Resolution (ADR) methods can be used to avoid disputes, resolve them at prior stages, or settle them prior to formal litigation ADR method includes Negotiation, Mediation, Conciliation, Arbitration and Adjudication. Case study illustrating the applications of mediation as an ADR, which encourage the Quantity Surveyors to improve and apply the new methods for resolving disputes. According to the case study, this report is suggesting that Mediation is a Suitable ADR method solve disputes in the construction sector. There are many benefits to mediation over other forms of ADR or civil litigation such as; less costly, fast progress, more flexible, allows the opportunity for parties to work together and reach a settlement, freedom to express their own opinions, private process, etc. To improve the effectiveness on mediation Mediator should be objective and support both parties; Mediator shout get an agreement from both opponent parties about a basic willingness to resolve the dispute and let each opponent party to say what is the actual problem is for them and find out that each opponent party has really understood the situation of the other opponent party; During the process mediator should guide discussions towards a shared dispute resolving method and avoid from personal attack also inspire them to look for solutions where everybody gets what they want. The mediator should create a win-win situation and work in the direction of wins for both parties and turn opponents into problem resolving associates.
  • 57. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 50 Overall Conclusion and Recommendation There are many QS firms assist clients to improve their approach in order to successfully accomplish all of their construction projects. On the other hand, high risk is provided for Quantity Surveying practices, Quantity surveyors are taking part in with the most of the essential portion of the construction process as accountants, contract manager, economists, lawyers, measurers, and etc. There will be so many changes and development in the construction sector by the quantity surveyors in coming years. Construction sector embraces IT in the construction process in all phases. IT is required essentially to operate and manage a great amount of information and to direct complex projects. Therefore quantity surveyors need enough capabilities to get extreme benefit from IT to be successful professional in the future Quantity Surveyors should be conscious of the construction process and extension of time period through the project with cost control and time management for the construction works, which helps to find out the affected programs and preparation of gain Extension of Time (EOT) claim. This professional report the Extension of Time (EOT) claim by introducing and including project details, evident detail, delay analysis, baseline program and affected program, then mitigation action and contemporary records. Then final Extension of Time (EOT) claim is calculated by calculating site overheads and office overheads. EOT is helpful to the contractor to prevent from liquidated damages. Quantity Surveyors can face many various challenges in the future. The construction procurement system essentially encompasses with a selection of contractual framework which classifies the structure of participants’ responsibilities and powers that be within the project. It provides to complete satisfaction of employer/client and project success. Therefore, it is essential to develop effectiveness. Even though there are various construction procurement system, each method delivers not the same contractual arrangements. Generally the selection of construction procurement is influenced by the various factors. Therefore, attention on these significant factors supports to develop effectiveness. Though attention on an extensive range of influences more than employer/client’s desires, which guides to develop the efficiency of construction procurement greatly, to gain a better productivity through appropriate choice and use, because construction procurement effectiveness is affected by many different factors. Therefore, proper attention must be taken on the following factors in the selection and application to develop the effectiveness of procurement system which making a clear path for success of the project.
  • 58. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 51 Disputes commonly occur in the project between the stakeholders. Therefore, dispute resolution method is essentially required to settle the dispute. At the inception stage of a project. Alternate Dispute Resolution (ADR) methods can be used to avoid disputes, resolve them at prior stages, or settle them prior to formal litigation ADR method includes Negotiation, Mediation, Conciliation, Arbitration and Adjudication. Case study illustrating the applications of mediation as an ADR, which encourage the Quantity Surveyors to improve and apply the new methods for resolving disputes. According to the case study, this report is suggesting that Mediation is a Suitable ADR method solve disputes in the construction sector. There are many benefits to mediation over other forms of ADR or civil litigation such as; less costly, fast progress, more flexible, allows the opportunity for parties to work together and reach a settlement, freedom to express their own opinions, private process, etc. To improve the effectiveness on mediation Mediator should be objective and support both parties
  • 59. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 52 References ANON.(2006). The Collaborative Partnership. [Online]. Last accessed 13 September 2014 at: http://www.uta.edu/research/collaborate/ ANON.(2010). Procurement. [Online]. Last accessed 13 September 2014 at: http://xa.yimg.com/kq/groups/23334949/1519110496/name/procurement ANON.(2014). Difference between collaboration and joint venture?. [Online]. Last accessed 13 September 2014 at: http://www.answers.com/Q/Difference_between_collaboration_and_joint_venture ASHWORTH, Allan and HOGG, Keith (2007). Willis's Practice and Procedure for the Quantity Surveyor. 12th ed., Carlton, Blackwell Publishing Ltd. BVUMBWE, C and THWALA, D.W (2011). An Exploratory Study of Dispute Resolution Methods in the South African Construction Industry. In: International Conference on Information and Finance, Singapore, Singapore, IACSIT Press, 32-36 CONSTRUCTION DISPUTE RESOLUTION SERVICE (2012). The Advantages of Mediation. [Online]. Last accessed 30 September 2014 at: http://www.constructiondisputes- cdrs.com/advantages_of_mediation.htm DESIGNING BUILDINGS (2014). Collaborative practices for building design and construction. [Online]. Last accessed 13 September 2014 at: http://www.designingbuildings.co.uk/wiki/Collaborative_practices_for_building_design_and _construction DESIGNING BUILDINGS (2014). Cost reimbursable contract. [Online]. Last accessed 12 September 2014 at: http://www.designingbuildings.co.uk/wiki/Cost_reimbursable_contract DESIGNING BUILDINGS (2014). Design and build procurement route. [Online] Last accessed 13 September 2014 at: http://www.designingbuildings.co.uk/wiki/Design_and_build_procurement_route GOODMAN, A. H. (2005). Using Negotiation, Mediation and Arbitration to Resolve Construction Disputes. [Online].Last accessed 18 September 2014 at: http://www.constructionrisk.com/2011/02/using-negotiation-mediation-and-arbitration-to- resolve-construction-disputes/ IBIRONKE, O.(2011). A Survey on the Use and Impact of Information Technology in Quantity Surveying Service Delivery in Nigeria. [Online]. Last accessed 12 September 2014 at:http://www.academia.edu/1391083/a_survey_on_the_use_and_impact_of_information_tec hnology_in_quantity_surveying_service_delivery_in_nigeria JACK, Ramus and SIMON, Birchall (2006), Contract Practice for Surveyors. 4th ed. Elsevier Ltd. Burlington.
  • 60. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 53 MILLER, G., FURNEAUX, C.and DAVIS, P. (2007). Built Environment Procurement Practice: Impediments to Innovation and Opportunities for Changes. [Online] Last accessed 12 September 2014at: http://eprints.qut.edu.au/27114/1/Furneaux_- _BEIIC_Procurement_Report.pdf NORAZIAN, Mohamad and HAMIMAH, Adnan (2012). Assessing Extension of Time Application in Malaysian Construction Industry: Views from professionals. Emirates Journal for Engineering Research, 5 (1), 54-63. PALANEESWARAN, E., KUMARASWAMY, M. and NG, T. (2003). Targeting optimum value in public sector projects through “best value”‐focused contractor selection. [Online] Last accessed 12 september 2014 at: http://www.emeraldinsight.com.lcproxy.shu.ac.uk/doi/full/10.1108/09699980310509390 PRACTICAL LAW (2014). Why do claims arise under a construction contract?. [Online]. Last accessed 02 July 2014 at: http://uk.practicallaw.com/5-385-6139 RATNASABAPATHY, S. and RAMEEZDEEN, R. (2007). A Decision Support System for the Selection of Best Procurement System in Construction. [Online]. Last accessed 12 Sepetember 2014 at: http://www.sljol.info/index.php/BESL/article/viewFile/1943/1607 RICS (2012). Quantity Surveying. [Online]. Last accessed 8 September 2014 at: http://www.rics.org/lk/footer/glossary/quantity-surveying/ RODRIGUEZ, J.(2014). Lump Sum: What Is A Lump Sum?. [Online]. Last accessed 12 September 2014at: http://construction.about.com/od/Procurement-Process/a/Lump-Sum- What-Is-A-Lump-Sum.htm SEAMUS COOLEY QUANTITY SURVEYORS (2007). Procurement. [Online] Last accessed 12 September 2014 at: http://www.scquantitysurveyors.com/procurement TAMIMI, E. A. (2014). Construction Adjudication. [Online]. Last accessed 29 September 2014 at: http://www.ciarb.org/education-and-training/003-adjudication/ THE BOARD OF QUANTITY SURVEYORS MALAYSIA, 2012. What is Quantity Surveyors?. [Online]. Last accessed 8 September 2014at: https://bqsm.gov.my/index.php/en/e-library/knowledge-sharing?id=176 ZANELDIN, E. (2005). Construction claims in the united arab emirates: types, causes, and frequency. [Online]. Last accessed 29 September 2014at: http://www.arcom.ac.uk/- docs/proceedings/ar2005-0813-0822_Zaneldin.pdf
  • 61. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 54 Appendix No.01 (Case Study)
  • 62. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 55 Appendix No.02 (Progression Plan of an Assignment)
  • 63. QUANTITY SURVEYING PRACTICE BSc (Hons) in Quantity Surveying & Construction Management Page 56