construction projects

Today, many construction projects are considered to contain very complex net of legal obligations and contracts that must be observed carefully for the success of the project. In some cases, the contracts may be as simple as oral agreements. However, in most cases, the contracts are written so that there is a binding written and signed agreement between the contracting parties on the said projects. In a bid to observe this legal implications and rights, measurements and quantifications become very important elements. This is because these two elements help in accounting processes that help reduce wastage of resources in the procurement options that are available during the life and different stages of the project.

Ideally, this is the work of the quantity surveyor. This paper will, therefore, give an insight of the relevance and importance of measurement and quantification while also looking at the various procurement options that the two elements become important.

Importance of Measurement and Quantification

In construction projects, quantification and measurement aid in understanding the crew rates. That is a quantity surveyor determines what the construction industry should for its construction crew to complete a square foot of a construction work to be done. The crew rates help the supervisor in keeping clear time logs that are related to daily production amounts.  A quantity surveyor, therefore, measures the work that needs to be done and quantifies it against the number of workers that are available for the construction to come up with the labor cost.  The calculation, in this case, is; Crew Rates X Square Footage = Labor Cost

Similarly, measurement and quantification could also be important in for the construction company to determine and understand the productivity rates. This helps the company in a construction project to determine the duration in which the project should take for completion as part of the agreement with the client. That is, Task Duration = Productivity Rate X Square Footage. Measurement and quantification also aid in developing a comprehensive material list that is based on calculation and quantification of the total cost of the funds available.

A quantity surveyor thus develops a list of materials to be used visa vie the amount available at that time and the quantity of work to be covered. Measurement and quantification also help the company to determine the cost profit that is to be realized at the end of the project. By determining the labor and material costs, the company can identify the amounts that will remain as the company’s profit.

Procurement Options and Measurement and Quantification Systems

Client’s resources, project characteristics, cost issues and other external factors, determine procurement options. The different types of procurement options include the lump sum contracts, measurement contracts, and the cost of reimbursement. The lump sum contract is where contract cost of construction is determined before the actual construction begins through measurements of various materials at that time. The measurement contracts where the actual contract sum is determined after the completion of the project and re-measurements done on some agreed basis. Lastly, is the cost reimbursement where cost of construction is arrived at after calculating the cost involved and the profits expected at the initial start of the project.

Conclusion

Measurement and quantification are, therefore, important factors in construction projects since it helps determine the labor costs, the cost of production, profits, and the duration in which a project is expected to take place. Also, various procurement options such as the lump sum contracts cost reimbursement, and measurement contracts are put in place to determine various measures and quantities on the production process.

Reference

Ariaratnam, S., Piratla, K., Cohen, A. and Olson, M. (2013). Quantification of Sustainability Index for Underground Utility Infrastructure Projects. Journal of Construction Engineering and Management, 139(12), p.A4013002.

McLaughlin, P. (2012). Peer Assessment for Construction Management and Quantity Surveying Students. AJCEB, 3(2), p.43.

Ofori, G. (2012). New Aspects of Quantity Surveying Practice. Construction Management and Economics, pp.1-3.

Oosthuizen, P. and Berry, F. (2013). Five maturity pillars of a quantity surveying company. IJPOM, 5(1/2), p.25.

Towey, D. (2012). Construction quantity surveying. Chichester, U.K.: Wiley-Blackwell.

Wamuziri, S. (2013). Payment options in collaborative procurement of major construction projects. Proceedings of the ICE – Management, Procurement and Law, 166(1), pp.12-20.