Cash flow is the ‘Lifeblood’ of the construction industry... The role of Quantity Surveyors and Cost Managers is to create and implement workflows, systems and procedures in order to ensure that: The right entity, is paid the right amount, at the right time. Achieving the goal above requires a great understanding by Quantity Surveyors and Cost Managers of the following: 1. Funds available 2. Sources of funds 3. Budget 4. Forecast 5. Financial Exposures 6. Amount Committed to date 7. Amount paid to date / Actuals Therefore, Project Financial Control & Reporting, and effective cash flow man ..read more

The purpose of your RICS APC "Case Study" is simply to demonstrate the depth and breadth of your experience as a Quantity Surveyor. The size, scale, and complexity of the project doesn’t really matter… What matters the most is being able to explain YOUR role in the project, and most importantly YOUR contribution and how YOU managed to add “Value” to the Client as a ‘Trusted Advisor’. The key to demonstrating the above in your Case Study is through the following: 1. Careful selection of “Key Issues” that you encountered 2. Explaining the “Options” that you presented to your client as a respons ..read more

Assuming the wrong programme areas in your cost plan or cost estimate is a fatal mistake, and can blow project budgets for construction projects Here is a tip for your RICS APC “Quantification and Costing of Construction Works” Core Competency... Before you start working on a Cost Plan or a Cost Estimate, you should do the following: 1. Identify the standard method of area measurment that you will be using for your area and volume calculations (i.e. RICS Code of Measuring Practice, BOMA Floor Measurment Standards, etc. ) 2. Agree and define with the project team the area type that you will be ..read more

In my previous post, I discussed the importance of selecting the right “Pricing Strategy” for the success of Real Estate and Construction projects. Another equally important topic is “Procurement Strategy”. Below is a list of the most common ‘Procurement Strategies’ that Quantity Surveyors and Cost Managers come across in their Real Estate and Construction projects: 1. Design-Bid-Build (General Contracting / Traditional) 2. Design-Build 3. Management Contracting 4. Construction Management 5. Owner Direct Managed / Self-Perform 6. Public Private Partnerships (PPP) Recommending one Procurement ..read more

Quantity Surveyors and Cost Managers spend a significant amount of time during the construction phase dealing with “Change Orders” However, a flawed Change Orders Review process can lead to budget overruns and schedule delays. Here are TEN tips to ensure an effective and efficient change orders review process: 1. Think 80/20: focus on the top 20% of the change orders that constitute 80% of the change orders dollar amount 2. Prioritize: ask the subcontractors and/or Construction Managers to identify the change orders which have a direct impact on: a) health, safety, environment; and/or b) sche ..read more

In Design Economics and Cost Planning, the general rule of thumb is that the simpler the shape of the building, the lower will be its unit cost ($/SF). One of the key design ratios that every Quantity Surveyor and Cost Manager should understand is the “Wall to Floor” ratio. What is Wall to Floor ratio? 1. Wall to floor ratio is one of the best indicators to understand whether a building’s envelope is economically designed or not, through examining the ratio of enclosing walls to gross floor area. 2. Let’s assume two buildings have the same overall floor area of 300,000 SF, but Building A has ..read more

Good Quantity Surveyors and Cost Managers must provide their Clients with three levels of analytics 1. Descriptive (what happened in the past and why?) 2. Predictive (what could happen in the future?) 3. Prescriptive (what to do in the future?) Descriptive Analytics An example of descriptive analytics is providing a monthly cost report stating that the committed amount is $195M vs a budget of $200M vs actual paid of $190M, then quantifying the variance and explaining its reasons. This form of reporting provides insights into the past (what happened). I call this ‘raw reporting’ since it answe ..read more

Quantity Surveying and Cost Management is NOT about crunching numbers Quantity Surveying and Cost Management is about telling a STORY, from the beginning to the end, with key judgement points, at which you have to make critical decisions, and provide meaningful insights to your Clients as their trusted advisor, to help them make informed decisions. Most importantly, you need to record and demonstrate HOW and WHY you made the decisions that you made, through a clear AUDIT TRAIL. So what do Clients expect from Quantity Surveyors and Cost Managers? Your Clients simply expect two things: Cost Ce ..read more

An “Allowance” is an amount included by Quantity Surveyors and Cost Managers in the contract sum to cover the cost of prescribed items not specified in detail ⚠️ According to the RICS New Rules of Measurement (NRM), there are three types of allowances in Construction Projects: 1) Defined Provisional Sum (PS); 2) Undefined Provisional Sum (PS); and 3) Prime Cost Sum (PC). 1. What is a Defined Provisional Sum (PS)❓ Means a sum provided for work which is not completely designed but for which the following information shall be provided: a) the nature and construction of the work; b) a statement o ..read more

Here is a non-traditional advice to aspiring Quantity Surveyors and Cost Managers… Your success in the long term will be determined by the following SEVEN traits: 1. Hard work 2. Mental toughness 3. Sense of urgency 4. Bias for action 5. Results orientation 6. Growth mindset 7. Winning mentality There are simply no shortcuts...No Pain, No Gain! #quantitysurveying#costmanagement ..read more