Estimating Construction Costs: Why Use a Quantity Surveyor?

Early estimation of construction costs during the design and development phase is of utmost importance for any building project. As you embark on organising your construction venture, ensuring that you and your architect create a design that aligns with your budget becomes a critical task.

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As a multidisciplinary contractual company, we specialise in the utilisation of all contracts including the use of the NEC forms of engineering and construction contracts. Our unique skill set allows us to navigate the intricacies of these contracts with precision and efficiency.

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Estimating

In this article, we shed light on the benefits of seeking assistance from a professional and competent Quantity Surveying company, like HJH Commercial Consultants to estimate your construction costs is a smart investment indeed.

The Significance of Financial Planning in Construction Projects.

We frequently receive inquiries Civil Engineering and Utilities Companies whose construction projects have encountered financial challenges.

Realising that your project exceeds your budget can be distressing, and sadly, it's not an uncommon situation. Often, the root cause can be attributed to inadequate financial planning or hesitancy to invest in professional services during the design phase.

The False Economy of Cutting Professional Fees

When facing a tight budget for your building project, it may be tempting to avoid professional fees by attempting DIY approaches.  Quantity Surveyors might appear costly at first glance, but comprehending the value they bring to your construction costs, and overall project outcomes is essential. The Quantity Surveyors should never be considered a cost but save your company considerable money over time.  

Quantity Surveying advice should be regarded as an investment, which will pay off significantly throughout the Estimating and construction process and once you progress with the works.

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The Complexity of Estimating Budget Costs

When dealing with a tight budget, relying on rough cost estimates or personal assumptions can lead to costly mistakes. Estimating construction costs is far more intricate than simply plugging numbers into a spreadsheet.

Clients often realise their project's financial risks when they receive unaffordable quotes . Such issues typically arise due to overly ambitious designs or unforeseen costs. The crux of the problem lies in a lack of robust financial planning.

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Engaging a Quantity Surveyor

To ensure the success of your major building project, understanding how an experienced Quantity Surveyor can assist is vital. These experts excel at estimating construction costs, making them valuable collaborators in ensuring your designs remain affordable and sparing you unnecessary stress.

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Steps to Keep Your Construction Project Within Budget

Step 1 – Design Aligned with Construction Budge if it’s a design and build project. Begin by setting a Construction Budget and sharing it with your architect to guide their initial designs.

Step 2 – Get a Detailed Estimate from a QS - Engage a Quantity Surveying company to provide a thorough estimate of your construction costs a based on your outline designs. This will encompass material, plant and labour costs.

Step 3 – Optimise  Your Design for Cost Savings - Use the detailed estimate to optimise your designs or specifications, thus reducing construction costs. Value engineering, facilitated by an experienced Quantity Surveyor, can be immensely helpful in this regard.

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Estimating Construction Costs: A Wise Decision

In summary, enlisting the expertise of a seasoned Quantity Surveying team such as HJH is a wise investment. Their involvement ensures better financial control over your project, both during pre-construction and construction phases, leading to time and cost savings. Ultimately, their contribution could be the pivotal factor in determining whether your project moves forward or faces obstacles.

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frequently asked Questions

Our team of experienced quantity surveyors is dedicated to providing accurate and reliable cost management solutions for your projects. We know that navigating the intricacies of construction expenses can be overwhelming, so we're here to support you and the process.

Browse through our FAQ section to find answers to common queries, ranging from what a quantity surveyor does, to how we can optimize your project's budget and ensure its success. We're committed to transparency and clarity, so if you can't find the information you're looking for, don't hesitate to get in touch with us directly.

What is a Quantity Surveyor?

A Quantity Surveyor is a professional in the construction industry who focuses on managing costs, contracts, and ensuring value for money in construction and infrastructure projects.

What is the primary role of a Quantity Surveyor in a construction project?

Their main role is to manage and control the costs of a construction project, from initial estimates through to the final accounts. They also handle contractual matters and ensure value for money.

What is a Bill of Quantities (BoQ) & Activity Schedule?

Bill of Quantities is a detailed document in construction and procurement that lists the quantities, descriptions, and estimated costs of materials, labour, and services required for a project. It provides a clear breakdown for pricing and bidding purposes.

Activity Schedule, on the other hand, is a timeline that outlines the sequence of tasks, their start and finish dates, and dependencies within a project. It helps in project planning and management by organising the work into specific activities. Both documents aid in cost estimation, resource allocation, and project scheduling for effective execution.

When should I engage a Quantity Surveyor for my project?

It's best to involve a QS at the earliest stages of your project. Early involvement can ensure a more accurate budget estimate and more effective financial management throughout the project.

Are Quantity Surveyors only involved in large-scale projects?

No. While QS are often associated with large projects, their expertise can be valuable for projects of any size, providing cost management and contractual advice.

Can a Quantity Surveyor assist with dispute resolution?

Yes. QS have expertise in contractual matters and can offer advice or act as mediators in disputes over project costs, variations, or other contractual issues.

Is it compulsory to have a Quantity Surveyor for construction projects?

It's not always compulsory, but having a QS ensures costs are effectively managed and the project remains on budget. In certain contracts or regions, it might be a requirement.

What is the difference between the NEC, JCT and FIDIC and other forms of contract

NEC, JCT, and FIDIC are all standard types of construction contracts used in the infrastructure  industry. They each have their own distinct characteristics and are designed to serve different purposes. Here's an overview of the differences between these three and other contract types:

NEC (New Engineering Contract):
Focus: NEC contracts highlight collaboration, flexibility, and risk-sharing between parties.
Management: NEC contracts place a strong emphasis on project management, with clear roles and responsibilities for each party. The Project Manager (PM) has a central role in administering the contract.
Risk Allocation: The party best equipped to manage a particular risk is assigned that risk under NEC contracts. The contract promotes early identification and resolution of issues.
Compensation: Payment mechanisms are based on defined costs, target costs, and gain/pain share mechanisms.
Time Management: NEC contracts use a "compensation event" mechanism to manage changes and delays.
Versions: NEC3 and NEC4 are the two most commonly used editions of NEC contracts.

JCT (Joint Contracts Tribunal):
Focus: JCT contracts provide a balanced approach to allocating risk between parties.
Tradition: JCT contracts have a long history and are widely used in the UK construction industry.
Varieties: There are various types of JCT contracts available for different project types and procurement methods.
Payment: JCT contracts typically include interim payments and final payments based on defined project stages.
Dispute Resolution: JCT contracts often include mechanisms for resolving disputes, such as adjudication, arbitration, or legal action.
Types: Examples include JCT Standard Building Contract, JCT Design and Build Contract, and more.

FIDIC (Fédération Internationale Des Ingénieurs-Conseils):
International: FIDIC contracts are commonly used for international building projects and are sometimes called the "Rainbow Suite" due to their various contract types represented by different colors.
Risk Sharing: FIDIC contracts aim to strike a balance between the interests of parties and include provisions for sharing risks.
Editions: FIDIC contracts come in different editions and contract types, such as Red Book (Construction), Yellow Book (Plant and Design-Build), Silver Book (EPC/Turnkey), etc.
Dispute Avoidance: FIDIC contracts emphasize avoiding disputes through mechanisms like the Engineer's role in decision-making and dispute resolution boards.
Types: Different FIDIC editions suit different project types and delivery methods.

Other types of contracts:
ICE (Institution of Civil Engineers): Frequently used for civil engineering projects.
PPC (Project Partnering Contract): Stresses collaboration and long-term relationships.
ACA (Association of Consultant Architects): Tailored for architectural and design-related contracts.