Architecture / June 23, 2018 /
The issue of the cost of construction work is one that is rarely far from the minds of construction clients, design teams, constructors and, of course, quantity surveyors. The cost of constructing a building project is a primary concern for the vast majority of construction clients. Indeed one of the most common initial questions a client has is. What is it going to cost me? often followed closely by. can we do it any cheaper? Providing answers to such questions is a key objective of quantity surveyors, whose task it is to predict the likely cost of building work and to manage the evolving project design to ensure that the clients approved budget is not exceeded. This is a challenging task, which frequently involves one-off, unique, purpose made buildings, and the QS typically operates within a design team brought together specifically for that particular project.
The payment arrangements adopted on a contract directly affects the level of risk borne by the contractor. Where the contract is let on the basis of a drawings and specification lump sum the contractor assumes the risk for both the quantity and pricing. In lump sum contacts based on bills of quantities and remeasurement contracts the contractor assumes the risk for the pricing only. With reimbursement contracts the client assumes the risk for the quantity and pricing. The payment arrangement, therefore, directly motivates the contractors efforts to carry out the work in an efficient and economic manner. This in turn has a major impact on the final price paid by the client.