Construction Quantity Surveying: A Practical Guide for the Contractor's QS

Preface

The contractor’s quantity surveyor plays a pivotal role in the commercial management of construction projects due to the practical skills required to assist with the successful delivery of a scheme.

The aim of the edition of this book is to build on those skills by providing insight into the working practices of contracting organisations with regards how projects are secured and buildings delivered. This commences from the invitation to tender when the skills of quantifying and estimating the price of works is exercised whilst acknowledging the risks involved with the type of procurement and form of contract. This sets the framework for effectively running a construction project with this 2nd edition exploring recent industrial changes that includes:

New rules of measurement (Nrm2)

Types of contract including JCT 2016

Impact of the Construction, Design and Management Regulations, CDM 2015

The various procurement routes available for obtaining a building.

The book is set out in a logical manner with Tables, Figures, technical information and text that helps define the subjects in sufficient detail. This makes the book a suitable source of reference for students on appropriate courses as well as qualified and experienced professionals and those with an interest in the construction industry.

Enjoy.

Donald.

1

The Construction Industry and the Quantity Surveyor

1.1 Industry Overview

The construction industry is a generic term for a service industry forming part of the nation’s economy that carries out the planning, designing, constructing, altering, refurbishing, maintaining, repairing and demolition of structures. It is a large dynamic and complex industry that plays an important role in the economy of which there are three sectors, that is, buildings, infrastructure and industrial. Building construction can be subdivided into two groups, residential and non‐residential. The former requires no elaboration, while the latter encompasses commercial, institutional and government‐owned/leased projects covering a range of building types such as hotels, banks, schools and hospitals. Infrastructure refers to highway and civil engineering structures, including large public works such as motorways, bridges and other transportation networks, utility distribution and water/wastewater treatment. Industrial includes chemical processing plants, warehouses, factories, power generation facilities, manufacturing plants and mills. The construction process commences with a planning stage stemming from early designs and includes financing and developing the designs for working purposes. This continues with a construction phase until the project is complete, which triggers the occupational phase when the building is operated as its intended use.

1.1.1 The British Construction Industry

The demand for new buildings and the refurbishment of existing is driven by available spending in the public and private sectors. Because of this, the construction industry is buoyant in terms of the demands it must meet, yet is susceptible to the mood of local economies and the national economy as a whole at any time. According to a House of Commons Briefing Paper entitled Construction industry: statistics and policy published during Q4 of 2015, the British construction industry amassed £103 billion in economic output during 2014. This represents 6.5% of the gross value added (GVA), which is the construction industry’s economic contribution to the total value of the national accounts. The briefing paper advises that employment in the industry grew at a steady pace since 2010, with 2.11 million jobs filled during 2015. The paper predicts that a decade of future economic growth lies ahead based on the (then) coalition government’s report Construction 2025, which was published during Q3 2013 and prepared from the guidance and support of the Construction Industrial Strategy Advisory Council (CISAC), an advisory body comprising members that seek, construct and issue advice on buildings and infrastructure. This report predicts world economic output will grow at a rate of 4.3% per annum through to 2025, which will create changes in the international economy and provide new opportunities for the United Kingdom. To embrace these opportunities and be well placed domestically, the government has pledged to work with a range of industrial bodies with end goals for 2025 that aim to:

reduce the initial cost of construction and whole life asset cost by one‐third (2009/2010 levels);

reduce by half the overall time it takes to acquire new/refurbished buildings from inception to completion (2013 industrial outputs);

reduce by half greenhouse gas emissions in the built environment (based on 1990 levels); and

reduce by half the trade gap between imports and exports for construction products and materials (based on a trade deficit of £6 billion in 2013).

With such challenges ahead, the industry must be ready for change and is indeed a giant in terms of the contribution it makes to the nation’s economy which creates room for interesting careers and job security in the process.

1.1.2 Equal Opportunities and Diversity

The UK is a diverse society comprising people from multicultural and multilingual backgrounds, where everyone has something different to bring to society and the workplace. The construction industry is one that requires a variety of skills and abilities to function, which means it is important for people from different backgrounds, life experiences and abilities to be suitably employed to enable the industry to achieve the high levels of skills and deliverables needed. For this reason, employers, unions, service providers, service users and industrial bodies are encouraged to endorse integration regardless of age, disability, gender reassignment, marriage or civil partnership, pregnancy and maternity, race, religion and beliefs, gender, sexual orientation or socio‐economic background. This requirement is also legislated under UK labour law with the Equality Act 2010 applicable in England and Wales and, in part, Scotland and Northern Ireland. The Act makes it illegal to discriminate against access to education, public services, private goods and services or premises and employment opportunities. Hailed by lawyers as the most significant development of equality legislation in decades, the Act harmonises and consolidates previous anti‐discrimination legislation, and strengthens legal rights to equality. The Act’s purpose was to replace a mass of disjointed legislation with more uniform, accessible and comprehensive rights. Following its introduction, it has succeeded in setting standards and raising awareness of rights to equality, as well as tackling discrimination and, in particular, the role of the public sector with regards achieving equality.

1.1.3 Global Construction

In a report entitled Global Construction 2030 published by Global Perspectives Ltd during Q4 2015, the global construction market is expected to grow by an average of 3.9% per annum from 2015 through to 2030. This is comparable to the 4.3% prediction through to 2025 advised in the UK Government’s report Construction 2025. According to Global Construction 2030, cumulative growth through to 2030 will surpass global domestic product (GDP) (the construction industry’s economic contribution to the total value of a nation’s accounts including taxes less subsidies) by one‐quarter. This is primarily due to developed countries continuing to gather pace following a sustained period of economic stability, and the ongoing confidence of developing countries with industrialisation and reform. China is expected to be the largest construction market for most of the period, anticipated to level off by 2030, with the United States growing at a faster rate in second place with the financial gap narrowing during the period. India’s economy is expected to surpass that of Japan to become the third‐largest construction market by 2021, with the top three accounting for 57% of all growth. It is predicted that Japan’s role will be notched down to fourth place by 2030 to be taken over by Indonesia.

For cultural reasons, countries tend to rely on home‐grown companies to design, manage and construct projects with their residents/citizens incentivised under labour law to carry out services. This varies from country to country and region to region, and even with the local market tested, it is still possible for skill shortages to affect the servicing of projects. This is appeased with globalisation and the services of international recruitment and construction companies that seek candidates for project employers in host countries. The selection and suitability of such candidates can be endorsed with experience, qualifications and membership of trade and/or professional institutions that have reciprocal agreements with their counterparts in other countries, meaning the status can be obtained in more than one country at the same time.

Foreign recruitment and the investment in overseas schemes can lead to the expansion of a business and the opening of overseas branches. The integration of a new business with the construction industry of another country is indeed a challenge, and one that requires commitment to time and resources. A risk management strategy is therefore vital, which must be created by any business wishing to diversify its interests meaning the impact of the investment must be fully understood prior to making commitments. When appraising the possibilities for starting an overseas construction business, the investor must have an understanding of risks associated with any of the following:

the need to invest, competition expected and the likelihood of securing contracts;

referral from others that may have already ventured into the locality and their results;

anticipated duration of the overseas investment (i.e. short‐ or long‐term or permanent);

financial stability of the overseas country;

financial stability of the home country and foreseeable trends (e.g. currency exchange rates, existence of double taxation treaties, changes in legislation and tax breaks);

performance of competitors on completed projects (i.e. what is normal and the quality expected);

trade unions and their influence;

health, safety and environmental attitudes;

availability of suitable labour skills and material resources;

political stability;

cultural working practices;

existence of corruption;

legislation with regards planning at local and national level;

existing industrial relations and building control;

land and terrain;

sources and status of infrastructure and utility service providers;

terrorism and militants;

communication methods, including any potential language barriers;

climate and volatility of the scheme to natural disasters (i.e. earthquakes, hurricanes, etc.);

decision to rent or purchase office space, including set‐up costs and the need for financial loans;

time involved to register the company and/or the need for sponsors;

business development potential (time and money);

relationship with local and central government regarding trade and employment restrictions (e.g. if trading overseas, the percentage of employees who must be nationals of the host country);

procedure, processing time and availability of visas for employees who would relocate;

cost to employ, including overheads, versus potential income;

understanding usual credit terms which may be prolonged in the host country; and

familiarity with law and the forms of contract used for service and services in the host country.

The above are drivers for realisation that, when combined with effective strategies, can mean involvement in an overseas investment is beneficial to a business. A fine example is the company Laing O’Rourke founded when R. O’Rourke & Son bought out John Laing Construction in 2001. Since formation, this company has grown internationally with offices in Europe (including the UK), Australasia, the Middle East and Canada that carry out an array of project deliverables including buildings, transport, power, water/utilities, mining/natural resources and oil and natural gas.

1.2 Parties Involved in a Construction Project

1.2.1 The Client’s Team

A project client is an entity that seeks and pays for construction works, and is usually the party that enters into a contract with a contractor that carries out the works. A client may be an individual, partnership, group of persons, organisation or business from the public or private sector. Public sector means central and local government offices and/or facilities, and private sector means an individual(s), firm(s) as partnerships and companies that may be limited or unlimited in their legal business trading. Clients in the need of construction works stem from all walks of life, with some having none or limited dealings of the design and construction processes with others experienced enough to understand the importance of engaging teams. A client’s role involves determining a suitable procurement method for obtaining a building while accepting or transferring risk in the process and for this reason, a client must make suitable team appointments for the successful delivery of a scheme.

1.2.1.1 The Design Team

The design team comprises design consultants from a range of disciplines that create concept and schematic designs from a client’s brief and coordinate and develop the design so it is suitable for construction purposes. Details of the various design team members’ involvement are discussed in Sections 1.2.2–1.2.7. The design team also writes and develops specifications that comply with legislation, prepares schedules and specifies the criterion required for the client’s needs. With traditional procurement, each design team member forms an agreement with the client, usually with the parties agreeing to coordinate their designs for consistency. Alternatively, under a design‐and‐build arrangement, the project client enters into an agreement with a contractor to complete the design and deliver the project. Typically, this involves novating the design teams’ early services to the design‐and‐build contractor, with the services reinstated under new agreements with the contractor.

1.2.1.2 The Construction Team

The construction team is the supply side of the industry, a term used to describe the appointment of parties necessary to carry out and facilitate the works on site. This includes:

the main contractor (builder);

subcontractors to carry out works for the main contractor;

material suppliers (including manufacturers); and

suppliers of plant equipment to assist with construction operations.

The combination of design team members and the main contractor is often referred to as the building team. Under a traditional procurement arrangement, building team members enter into individual contracts with the project client that generally excludes construction team members, except of course for the main contractor that is an integral part of both the construction and building teams.

1.2.1.3 The Development Team

The development team is an integral part of the client’s team, separate from the design and construction teams, and comprises members that issue advice on marketing, technical, financial, legal and business planning matters to the project client. Members of this team can also include a parent or side company that expresses interest in a project for business reasons, such as being guarantor for prospective purchasers. Other members include building maintenance and facilities managers, politicians, heritage and conservation groups, local planning authorities and members of the client’s own organisation that may be accountants, lawyers, real estate practitioners and coordinators of the development process. The development team usually initiate a project’s viability by creating a client’s brief, which is a document created as a frame of reference to determine reasons why the project should exist as well as the pathway for procuring the scheme and rewards the completed project is expected to deliver. Figure 1.1 demonstrates a hierarchy arrangement of design, construction and development team appointments.

Figure 1.1 Hierarchy of appointments.

1.2.1.4 Client’s Agent

A client may be inexperienced with the design and construction processes, and may wish to outsource the management duties. This has its advantages as it permits a project client to focus on the day‐to‐day running of their business without distraction, avoiding the need to commit internal resources that may otherwise lack the expertise required to oversee a construction project. The manager may be an individual project manager or a project management company that becomes the client’s agent in the process. Depending on the size of a project in terms of financial value, complexity and duration of the works, this can involve the mobilisation of a team skilled in project planning, commercial and contract management and the supervision of large‐scale projects. Typically, the project manager/company becomes the single point of contact for the building team, with all communications to the client usually made via the client’s agent. The client’s agent may also be a member of the design team and possibly an architect or quantity surveyor, thus serving a dual role. In isolation, the development team might be sourced and engaged directly by the project client with the client’s agent responsible to senior members of the development team. Where a project manager is appointed, various building team members’ services are tendered. Upon receipt of tenders, a recommendation for each appointment is made by the client’s agent to the client and, once appointed, each is contractually bound to the client and not the project manager/client’s agent. Each member is then expected to perform in a collaborative manner to service the project and project client, a matter usually expressed in the terms of each engagement.

1.2.2 Architect

A leading project architect’s services involves the development and coordination of a building design to ensure it is compatible with other consultant’s designs, and reports to a client on progression of the design and documentation until it is suitable for working purposes. Services can also extend through the construction phase where the architect responds to clarification requests, attends meetings and possibly amends the design to suit a client’s revised needs. Architects usually operate from a professional practice consisting of design team members who create site and block plans and drawings that show elevations, plans and cross‐sections of buildings as well as the finer details of construction.

A project usually takes its first breath with a feasibility study, the contents of which steer a decision to explore the viability of the project. Once a decision is made to build, development of the design is triggered from the contents of a client’s brief that initiates a concept stage outlining the requirements in sketch form, traditionally produced with ink on paper or conventionally from computer‐aided design (CAD) software. The design is further developed to a schematic stage that includes setting out information and technical details of building parts to smaller scale and developing the documentation to suit. Detailed drawings include cross‐sections of walls, frames, roofs, etc. showing a vertical plane through the construction details including critical dimensions. At a later stage of design development, drawings demonstrate how information shown on large‐scale drawings fit together as components in the final product, for example joinery items, junctions with ceilings and walls, etc. Prior to being released for construction purposes, the detailed design is audited and certified, confirming it as complying with health and safety standards and the building regulations. An architect’s services also include reviewing and approving shop drawings that show how parts are to be installed in a building which are produced by fabricators and/or installers usually inherited from the master design. This involves checking drawings and/or schedules for accuracy and quality to enable their assembly and/or installation into the works, with the architect usually empowered to reject any information supplied and request resubmissions until such time they are suitable. At the end of a project, an architect’s services can involve reviewing as‐built information provided by the contractor stemming from approved shop drawings to ensure they reflect the installed works and approving maintenance and operating manuals also provided by the contractor. An architect/interior designer may also design loose furnishings etc. for this stage.

Separate to designing buildings, an architect may design external works to a building and issue drawings and specifications that show requirements for: ornamental screen walling; fencing; paths, paved areas and car parking; hard landscaping schemes, including public footways, cycle paths and lighting; soft landscaping schemes that encompass turf, shrub and tree planting; irrigation schemes; furniture such as benches, litter bins, planter boxes and bollards; signage; playground equipment; security (e.g. video surveillance cameras, pedestrian gates and barriers); and water features. Alternatively, some aspects of hard and soft landscaping schemes may be designed by a landscape architect appointed separately by the client.

Independent and commercial architectural practices are usually members of the Royal Institute of British Architects (RIBA), a professional body representing architectural designers of the built environment. This accreditation is also available to individuals who complete a recognised qualification and/or may be listed on the Architects Registration Board (ARB), a statutory body for the registration of architects in the UK. The RIBA provides accreditation to schools teaching architecture in the UK under a course validation procedure, and will also validate international courses not requiring ARB endorsement yet satisfying the RIBA’s criteria. There are three parts of the RIBA education process. Part I is generally a three‐year first degree course followed by one years’ work experience in an architectural practice. Part II is generally a two‐year postgraduate diploma or masters degree course, from which a further year out must be taken before the Part III professional examinations are sat. Overall, it takes a minimum of seven years before architectural students can seek chartered status that, when achieved, permits members to use the initials RIBA after their name.

1.2.3 Geotechnical Engineer

Geotechnical engineering is an arm of civil engineering and refers to the services of an engineer engaged to carry out a site investigation (SI) which culminates with a report into the site conditions above and below ground for advice. The SI recognises topography, existing buildings, structures and greenery; ascertains the type(s) of subsoil(s) through soil mechanics; advises on the water table depth; and tests for the presence of any contamination which, if found, includes a remedial action plan that when carried out successfully can endorse the land as suitable for development. The information provided in the SI permits structural and civil engineers to write specifications and design structures that the ground can withstand. Training leading to qualifications is through the civil engineering route (see Section 1.2.5 below). Suitably qualified engineers can become members of the British Geotechnical Association (BGA) through a scheme developed jointly and supported by the Institution of Civil Engineers, the Geology Society of London (Engineering Group) and the Institute of Materials, Minerals and Mining.

1.2.4 Structural Engineer

When a new building is designed by an architect, the design is issued to the structural engineer for a structural appraisal. As part of the appraisal, the engineer creates a structural design reciprocating the architectural proposals with profiles and detailed sections to provide the building with structural integrity and stability. The design is developed further to include product specifications that give criteria such as concrete strength in building components (e.g. foundations, walls, roof, columns, beams and slabs) as well as the quality of workmanship and testing requirements needed to ensure the building is suitable for the intended use. When considering a type of foundation/substructure design, the engineer refers to the ground conditions obtained in the SI report as this can influence the concrete strength and specification (e.g. a blended concrete mix to mitigate alkaline attack from subsoils). Above ground, architecturally designed elements are analysed to confirm their suitability for the building. This involves reviewing architectural information to enable the creation of suitable structural criteria. The review process considers the size, shape and use of a building, together with health and safety practices for construction purposes and the need to comply with the building regulations. After the structural appraisal is complete, the engineer issues the information to the architect that may include recommendations for architectural modifications to suit the permanent works. For example, steel members creating walls and floors may need to be wider and deeper than the architect’s proposals to withstand structural stresses imposed by external factors such as wind loading/live loads on a building. In addition to permanent works, the engineer may design temporary structures such as shoring, which is a bracing system designed to stabilise surrounding structures and avoid collapse while new works are in progress. If a building is to be refurbished with the works affecting its structural integrity, the structural engineer will also assess stresses imposed on existing building elements and design permanent and/or temporary works to suit.

As with an architect, the structural engineer reviews shop drawings but of a structural nature, and checks and approves their suitability for a scheme. Furthermore, this engineer specifies testing requirements and reviews test results submitted, and has the authority to enforce compliance with the design and specification and instruct the removal and making good or replacement of any unacceptable works.

To qualify as a chartered structural engineer (MIStructE), the Institution of Structural Engineers in the UK requires the completion of key stages of education and training. The traditional pathway involves obtaining an accredited degree and then following a training programme to bridge any gap between the qualification and experience, known as a period of initial professional development (IPD). At the end of this period, the graduate attends a professional review interview (PRI) which must be passed together with an entry examination in order to obtain chartered status. Alternative routes apply for those who possess appropriate qualifications and have suitable experience.

1.2.5 Civil Engineer

Civil engineering involves the creation of new structures including roads, sewers and bridges and the maintenance of existing similar structures in the built environment. The title also covers non‐structural works including excavations and remediation of contaminated land which can involve the services of a geotechnical engineer. When a new structure of a civil engineering nature is required, the civil engineer designs a scheme and writes a specification for a scope of works out of due concern for public safety and the environment. In addition, the civil engineer coordinates new design requirements with existing infrastructures, including roads and drainage as well as works by utility service providers (e.g. gas, water, electric and telecommunications) that may be part of master planning for a district, borough, town or city. Duties of the civil engineer include (but are not limited to):

providing a topographical site survey and levels in relation to ground and construction items;

issuing setting‐out information for the works;

assessing tenders from contractors for the works and making recommendations to the client;

obtaining permits from local authorities;

attending public meetings;

liaising with utility service providers; and

supervising works in progress.

During the construction phase, the civil engineer will enforce the contract requirements and can instruct defective works to be replaced so they comply with the approved drawings and specification. Once a new structure is complete, and if it is to be under the eventual ownership of someone other than the contracting parties such as a local authority, it can trigger the commencement of a maintenance period. This is a stated duration written into an agreement during which time the contractor remains responsible for defects until such time the structure is transferred to the adopting party. Under a separate arrangement to which the contractor may not be a party, the local authority may also adopt utility services forming an integral part of the works under contract on behalf of the utility services providers. For this reason, the civil engineer works closely with the contractor and adopting authority during the construction phase to ensure the design and constructed items comply with the approved design and specification, in order to aid a smooth transfer upon expiry of the maintenance period.

Where a project is engineered without the requirements for a building such as bridge or land remediation, the engineer takes the role of client/employer’s agent under the title engineer or to that stated in the contract. In essence, the role of the engineer in an engineering contract is equivalent to the role of a client side project manager in a building contract.

To qualify and be employed as a civil engineer, the incumbent must possess an academic degree in civil engineering. Studies towards obtaining the degree take 3–5 years with the completed qualification being a Bachelor of Engineering (B/Eng) or Bachelor of Science (BSc) undergraduate degree. The curriculum generally includes courses in physics, mathematics, project management and design, plus specific topics of civil engineering. After taking basic courses in most sub‐disciplines of civil engineering, candidates then specialise in one or more sub‐disciplines at advanced levels and can obtain a masters degree (MEng/MSc) in a particular area of interest such as geotechnical engineering or façade engineering. A qualified civil engineer may be chartered, and a Member of the Institution of Civil Engineers (MICE) and must hold a degree in civil engineering which can also act as a stepping stone to other aspects of engineering.

1.2.6 Service Engineers

Service engineering includes methods of supplying, installing and commissioning systems that permit utility service providers to supply power, water and gas for distribution through a building. The term also encompasses drainage, fire protection, mechanical air systems, transportation, machinery and a range of specialist services used for fitting out a building. In multistorey buildings, building services are distributed via an infrastructure in rising mains or risers. These vertical risers run through the core of a building with horizontal branch connections at building floor levels and comprise specified pipework, cables, conduits and ducting, which are fitted off for a building’s intended use. Smaller buildings such as residential properties are serviced in a similar manner without risers, but with the pipes, cables etc. secured to and through walls and/or structural timbers such as joists. The cost of building services generally runs at c. 30% of the total price of a project, and being this considerable, the contractor’s quantity surveyor is encouraged to understand the scope driving this proportion.

1.2.6.1 Electrical Engineers

These engineers specify and design schemes that distribute electricity for power, lighting, security, heating, information technology and intelligent and communication systems in buildings. Moreover, the discipline includes the creation of design and specifications for artificially lighting external works and methods of obtaining power supplies to a building from the electric mains supply. In conjunction with an architect, electrical engineers may specify types of light fittings and design solar‐controlled panels that produce energy from the sun for battery storage for use with a building’s function.

1.2.6.2 Plumbing or Hydraulic Engineers

This engineering discipline designs and specifies water and gas supplies as well as heating and drainage systems within buildings. They may also seek the stamping of plans, which is endorsement of their designs from the water board and/or other authority that has an interest in the supply and distribution of water in buildings.

1.2.6.3 Fire Protection Services Engineers

These engineers author a fire‐engineering report to identify potential fire, smoke and heat hazards in a completed building and/or design, and write specifications applicable to the works so the completed building complies with the fire‐engineering report. Suitably designed schemes include active and passive measures with objectives of protecting the vicinity, structure, contents and building occupants from the effects of fire, smoke and heat. Active measures include sprinklers, fire blankets, hydrants, hose reels, portable extinguishers and air pressurisation systems along corridors, stairwells and lift shafts to suppress the effects of fire and smoke, while passive measures are architectural and include doors, partitions and escape routes that divide a building into parts, known as compartmentation. Hydrants for use by the fire brigade may fall under the category of water services with the design possibly part of the water supply design provided by the plumbing/hydraulics engineer. Pressurisation systems are dry systems driven by pressurised air which may fall under the scope of mechanical and air conditioning engineering (see following section). Other dry systems include clean agent fire suppression for use in equipped electrical and telecommunications rooms where gas in lieu of water is used to extinguish a fire or suppress smoke to mitigate damage to the equipment that would otherwise occur if using water.

1.2.6.4 Mechanical and Air Conditioning Engineers

These engineers provide a design and specification for naturally flowing and fan‐assisted air systems to provide a building with a suitable atmospheric pressure as well as adequate heating, ventilation and air conditioning (HVAC). HVAC refers to technology that provides suitable air changes and thermal comfort of the internal environment of a building.

1.2.6.5 Transportation System Engineers

Engineers under this category create designs and specification for vertical, horizontal and inclined transportation to deal with a stream of people or products moving through or within buildings.

1.2.6.6 Other Engineers

A range of other engineers that provide designs and specifications for works of a specific nature that are often project specific includes:

waste‐disposal systems;

solar heating;

oil‐fired heating systems;

district heating for distributing mass‐generated heat (gas, cogeneration or solar) from a source to a number of buildings simultaneously;

district cooling where treated chilled water is provided at pressure to a building for use in HVAC systems from a central district cooling plant;

types of mechanical plant for specific use (e.g. swimming pools); and

building automation/management systems, which are intelligent‐based systems that inform a building’s facilities manager on the status of installed parts and their efficiency while a building is operational and if any malfunction has occurred; management involves monitoring from computerised central control rooms with alert notifications possible via smartphones and emails.

As with other engineering disciplines, authenticity of an engineer is gained by the successful completion of recognised courses that measures knowledge, competence and practical training.

1.2.7 The Client’s Quantity Surveyor/Cost Manager

A client venturing into a construction project may engage a quantity surveying firm as a cost consultant who becomes an integral part of the design team in the process. One of the services these firms offer is pre‐contract cost advice which involves estimating construction costs prior to the client entering into a construction contract. At the earliest stage, it is possible to offer cost advice without the need for a design, providing the client issues a statement of requirements. In order to estimate cost from such requirements, quantity surveying firms collect cost data from past and current projects where they are engaged as cost consultant to produce dynamic single‐line construction costs, for example a 650 bed hospital (price per bed) or 300 pupil school (price per child), etc. Where a client provides a limited design or gives a statement of areas, cost advice can be more certain using either the functional building as a whole (e.g. by applying a rate per m² to the floor area of a hotel) or refining rates suitable to floor areas of parts of a building (e.g. hotel guest rooms and restaurants). Where an advanced design is provided and further cost data available, it is possible to estimate the costs of the functional elements of a building by applying rates to the areas of walls, floors etc. or suitable rates for the detailed components of each functional element (e.g. concrete per m³, bar reinforcement per tonne and formwork per m² applicable to walls, floors etc.). Depending on the level of detailed design available, it may also be possible to create cost targets of the elements, the combination of which can produce a project budget. Once a budget is created, the quantity surveyor/cost manager can be engaged to monitor different stages of design development and advise the client’s team of changes that impact the budget. Pre‐contract services also include the preparation of trade bills of quantities for tendering purposes, once the design and documentation is fully developed; vetting main contractors’ tenders; and cash flow forecast predictions by time to pay for the works.

Once a client enters into an agreement with a contractor for the works, it triggers the post‐contract period. During this period, the quantity surveyor/cost manager may be engaged to cost‐manage a construction project on behalf of the project client. Typical services include: recommending financial amounts as interim payments to the contractor while works are in progress; issuing monthly reports on the physical progress of the project; valuing changes to the works instructed by the client; assessing contractors’ claims; and preparing and issuing a final account. In addition, some large‐sized consultancies expand traditional quantity surveying services and offer project management and advisory services to a client that includes:

recommending an appropriate procurement route for a type of project;

risk management strategies, including identification and analysis of risks;

due diligence reporting by vetting and confirming scopes of services in main contractors’ tenders and the suitability of submitted offers with the client’s expectations;

selection of an appropriate form of construction contract (i.e. standard or purposely drafted);

life‐cycle costing on a building or parts of a building to demonstrate how an investment in the construction/supply and installation price and the price to maintain through the occupational phase until replacement/removal can derive a rate of return, often called ‘cradle to grave’ assessments;

advice on dispute resolution services if there is conflict on a construction project with the contractor;

business feasibility studies to assess the viability of a scheme prior to investing in a design;

acting as client/employer’s agent under the title project manager;

certification of buildings with Energy Performance Certificates (EPC); and

Building Information Modelling (BIM) manager (see Section 1.8.2 below for details on BIM).

The quantity surveyor/cost manager may be a sole practitioner, in a partnership or operate as part of a large consultancy. To qualify, professionals need to hold an academic degree and/or are members of the Royal Institution of Chartered Surveyors (RICS). The RICS is the leading international body that regulates members and firms to ensure ethics and professional conduct are maintained. Professional members are termed ‘chartered quantity surveyors’ with the RICS having the largest network of quantity surveyors worldwide. The client’s quantity surveyor/cost manager is a design team member and consultant, and may also be referred to as the professional quantity surveyor or PQS. This reference can mean a practising consultancy or individual(s) engaged on a project if the individual(s) is a chartered quantity surveyor or deemed suitably trained and holding a relevant degree. This is not to be confused with the contractor’s quantity surveyor employed by the main contractor who is a commercial member for the supply side of the industry who, when accredited with a chartered building qualification or a degree holder with suitable experience, is also deemed professional.

1.2.8 Main Contractor

The main (sometimes called general) contractor carries out works in accordance with the agreement it has with the project client. The contractor will also adopt the title principal contractor when legally responsible for the health and safety duties on a construction project, as required by the health and safety regulations. The main contractor rarely carries out all of the works themselves and subcontracts, or sublets, a number of trade works in order to fulfil the obligations of the contract. Subject to the conditions of contract this is often without client input, which gives the contractor a main role to procure, manage and deliver a scheme. However, the contract may permit the client to have a say in the subletting/subcontracting process by naming or nominating certain trade contractors because of their reputation or skills, which a contractor must acknowledge if part of an agreement. Standard forms of contract generally omit the title ‘main’ and recognise the capacity as ‘contractor’ only with the main contractor’s duties involving:

establishing the site accommodation, including temporary offices and amenities for use by the contractor’s staff, site visitors and operatives working on site, and any specific accommodation for the project client including members of the client’s team if a requirement of the contract;

managing health and safety procedures;

coordinating, procuring, planning and supervising construction works;

reporting periodically to the client and coordinating with the client’s team where necessary;

ensuring budgets are maintained; and

implementing a method of quality control to ensure works are achieved in accordance with the drawings, specification and conditions of contract.

In order to deliver a project on time, at an agreed cost and of the expected quality, the contractor will need to commission a project team. The team must be suitably qualified and experienced to help deliver the scheme with personnel either based full time on site or are regular visitors that are assisted by the contractor’s head office (e.g. accounts department). On a project valued at say £10 million which is straightforward in nature, with the design fully developed and the contractual provisions suitably captured in an agreement, the following personnel would normally be site based:

project manager in charge, with some time spent at the contractor’s head office and client’s offices;

site manager;

structural and finishing trade supervisors;

health and safety officer;

quantity surveyor (possibly part time or in between other projects);

general site operatives (e.g. labourers); and

administration support staff and trainees who may visit site periodically.

A project of similar standing of half the financial amount may have the site‐management requirements reduced by cancelling the need for finishing trade supervisors, leaving supervision to the site and project managers whose skills are appropriate. The role of the contractor’s quantity surveyor involves dealing with post‐contract duties on behalf of the contactor and, depending on the project in terms of value and/or complexity and the contractor’s management structure, the role may require full‐time commitment to a single scheme.

Normally, the contractor’s quantity surveyor is answerable to a commercial and/or project manager for addressing commercial, administrative and contract matters including:

regular cost reporting on works in progress (monthly, bi‐monthly or quarterly);

recommending awards to material suppliers and subcontractors and ensuring those in receipts of awards have binding agreements in place;

ensuring project insurances are current and relevant;

vetting health, safety and environmental submissions from subcontractors for compliance with the contractor’s project health and safety plan;

providing the flow of information to the contractor’s supply chain (suppliers and subcontractors);

assessing the price of contract variations and their submission for approval;

assisting in administration of the construction contract;

preparing applications for interim payments from the client;

preparation of a project final account; and

processing payments to the supply chain, administering and agreeing final accounts.

Team members may be qualified chartered building professionals and Members of the Chartered Institute of Building (MCIOB). The CIOB is the leading construction management voice in the construction industry, with its members representing a body that has knowledge managing the building process. Team members may also be chartered quantity surveyors (MRICS), although this is usually limited to commercial and project managers and contractors’ quantity surveyors.

1.3 Legislation and Control of the Building Process

Whatever the type of building project undertaken, construction operations and the final building must comply with built environment legislation which is enforced by planning control and regulatory systems. Anyone wishing to pursue and pay for building works must be satisfied it is lawful, and for this reason it is necessary to obtain permission from the local authority before commencing operations to confirm that the design and works comply with the law. When a building is required to undergo a change of use from one classification to another (e.g. a residential property to commercial premises), planning approval is required which is legislated in England and Wales by the Town and Country Planning Act 1990, in Scotland by the Planning etc. (Scotland) Act 2006 and in Northern Ireland by the Planning (Northern Ireland) Order 1991.

Obtaining planning approval is usually the responsibility of the building owner and not the contractor carrying out the works. However, if works commence without a permit, claim of a lack of knowledge by either party to a construction contract on the need for a permit could set the pathway for conflict, as it may mean the works are stopped or cancelled by the local authority. For projects which are simple in nature, the approval procedure may be straightforward with the building owner possibly seeking permission themselves. However, with large projects in terms of floor area, value and complexity, the process can be time‐consuming and the entity wishing to apply for a building permit may appoint a project manager to manage the process. Ideally, the party preparing the application should be conversant with local authority requirements which may be influenced by byelaws relevant to the location where the works are to be carried out. Byelaws are parochial powers granted from central government by an Act of Parliament that empowers local authorities to make decisions relevant to the community, and can be a deciding factor in the issue of planning approval.

The building regulations (sometimes called building codes) are separate from planning approval, and are a set of statutory requirements that seek to provide guidance and define standards for the purpose of designing and constructing buildings. They are contrived with skill and care to ensure a completed building is constructed with due consideration to the environment, health and safety of occupant(s) and the public at large. The regulations are modified from time to time to reflect changes in legislation, which may apply to any part at any time. The enabling act empowering them is the Building Act 1984 (England and Wales) that underwent change to become the Building Regulations 2000 (England and Wales). In Scotland, the driving legislation is the Building (Scotland) Act 2003 that steers the Building (Scotland) Regulations 2004, and in Northern Ireland the Building Regulations (Northern Ireland) Order 1972, amended 2012.

1.3.1 Planning Permission

A minor change to a building (usually for residential purposes) is termed ‘permitted development’ and is usually exempt from planning approval. However, a party seeking to change or modify a building should contact the local authority to confirm if works can proceed without formal approval before commencing the works. If approval is required, the process involves seeking clarification of the planning requirements and confirming that the design is compliant with the building regulations. In addition, whoever carries out the design and building processes must affirm a commitment to safe working practices as required by health and safety law.

The approval process commences with an applicant lodging a formal proposal to the local authority. The lodgement usually includes a set of building plans and elevations or other information as required to demonstrate the extent of the works, which activates an assessment procedure to arrive at a decision. In arriving at a decision, the local authority’s assessment takes into account the building process and effect of the completed project on the built environment and existing buildings in the locality. Moreover, a decision will be influenced by any impact the proposed scheme will have on the Local Development Framework Plans as well as local amenities and infrastructure. Local Development Framework Plans outline planned changes to a district over a stated period, possibly up to 10 years (or more), which are in force at the time of receiving an application. Depending on the size of the proposed scheme in terms of building floor area, height and location, there may be a requirement to provide an environmental impact assessment (EIA); this assesses environmental consequences (both positive and negative) of the construction and occupational phases on the environment. A well‐researched project will identify the need for an EIA at the earliest stage if approval of an EIA is a requirement for granting planning permission.

The length of time for issue of a response from the date of lodgement depends on the decision the applicant seeks, which can be influenced by the contents of the submission, the type of project, local authority policy and/or complexity of the scheme. If a submission is speculative and includes information which satisfies the category of the application, the decision may be to grant outline planning permission only. This means the local authority accepts the intent to develop in principle which is subject to further review, and advises what the review will entail (e.g. the submission and approval of a boundary walling design to a new residential estate). For vendors submitting a speculative application this decision provides a sigh of relief, as it means the process of developing the design can progress. An application seeking outline planning permission can be made by a landowner as a vendor that wishes to sell a parcel of land for development, meaning approval (and its conditions) would be relayed to the purchaser following the sale of the land, as without the permission the land may be worthless to a developer.

The second stage of approval is acceptance with reserved matters. This means the scheme is approved yet subject to a set of terms and conditions discharged over time, usually by the end of the construction phase. For example, an application may be submitted seeking permission to construct a high‐rise office building in accordance with a set of building drawings, with the applicant failing to provide details of external works such as vehicle parking and landscaping which is not designed. Here, a local authority’s response might be to grant permission for the office building to be practically complete within a stated time frame from the date of issuing the decision with a reserved matter for the whole of the works to be practically complete at the same time, which must be in accordance with an external works scheme that is to be lodged and approved.

The third stage is full planning or sometimes called detailed planning permission, which is approval to develop unconditionally or with matters the applicant can comfortably accept, which is of course the most favourable outcome for an applicant. If any type of planning permission is refused, the applicant may lodge an appeal that can only be heard if it relates to matters governed by legislation. These include:

legalities involving restrictive covenants, for example the existing ownership of land, buildings or parts thereof not owned by the applicant that require discharging by the owner;

a request to review granted outline planning permission not recognised by the local authority; or

resolution of confliction between granted outline planning permission and any existing Local and Development Framework Plan.

Until an appeal is resolved, the applicant would be unwise to commence the works as the local authority would probably instruct the demolition of anything created that goes against the expressed interest of the deciding committee and may also impose fines.

1.3.2 Building Regulations

Building regulations are divided into 15 headings, each designated with a letter from ‘A’ to ‘Q’ (with the exception of ‘I’ and ‘O’), and covers matters such as ‘structure’, ‘fire safety’, ‘ventilation’ and ‘security’ with each part accompanied by an Approved Document. The approved documents take the form of first stating the legislation and then providing a number of means which are deemed to satisfy provisions. These provisions detail methods showing the works required to satisfy the regulations through the use of text and illustrations. The building regulations are not created to stifle innovation, as there may be ways of complying with each part other than just using those set out in the deemed to satisfy provisions. The tendency by contractors however is to consider that innovative solutions may be too hard to validate, with most following the requirements literally and adhering to the approved working design so that the works can be completed on time. Updated versions of parts of the regulations are generally not applied retrospectively, and only apply to each new change or modification of a building which does not require the retrofitting of any existing elements.

1.3.3 Building Control

A main contractor must ensure the works it carries out complies with the construction contract (the contract) and building regulations/approved documents. In order to do this, a diligent and experienced contractor will ensure works in progress (instead of when complete) are carried out in accordance with the approved design, and cross‐reference the detailed designs with observations made on site and act accordingly with any deviations. In addition, a level of independent control through periodic building inspections may be carried out by other parties that may be a condition of the contract and also of planning approval.

The discipline of building inspector takes one or more forms, with each qualified in their appropriate field to make professional judgments and issue notices of compliance or non‐compliance of inspected works. These judgements