Construction Industry Reference Materials

This assignment provides a list of construction-related reference materials, including textbooks, handbooks, and guides. The resources cover various aspects of the construction industry, such as quantity surveying practice, estimating in building construction, design economics, and facilities management. The list includes publications from reputable sources like Routledge, John Wiley & Sons, and Springer Customer Service Center Gmbh.

Running Head: COST OVERRUN
Cost Overrun
Student’s Name
Institution

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Table of Contents
1. Introduction.......................................................................................................... 3
a) Background.......................................................................................................... 3
2. Literature Review................................................................................................. 3
a) Definition of Quantity Survey............................................................................... 3
b) Built Environment Quantity Surveyor...................................................................4
c) Role of the Quantity Surveyor..............................................................................9
d) How to control consultants.................................................................................10
e) Creating awareness of change...........................................................................11
f) Significance of communication..........................................................................12
g) Reports on cost.................................................................................................. 13
h) Monitoring cash flow.......................................................................................... 14
i) Engineering and management of value.............................................................14
j) Expertise and experience of the quantity surveyor............................................15
3. Relations that are Determinants to Overrun in Cost..........................................16
a) The size of the project........................................................................................ 16
b) Chain of supply.................................................................................................. 17
c) Duration of the project....................................................................................... 17
d) Method of procurement...................................................................................... 17
e) History of the case study...................................................................................18
4. Methodology of Research................................................................................... 20
a) Why research..................................................................................................... 20
b) Aims of research................................................................................................ 20
c) Procedure........................................................................................................... 21
5. Conclusion.......................................................................................................... 29
References............................................................................................................... 30

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1. Introduction
a) Background
Considerations on whether a project of construction is successful upon the delivery of needed
standards that are of quality within the budget and time estimations. Managing of costs is a way
that is efficient to achieving outcomes desired from the project as the main expectations of the
customer, is for the project not to above the budget that has been approved. Therefore, the reason
why quantity surveyors are employed for financial and management issues in relation to the
process of construction in projects of buildings. The construction building projects are in nature
dynamic and incurs risks and uncertainties outcomes where overruns in costs is a great risk that
shows up in projects on construction and may have an adverse and serious effect on the
perspectives of finance to the client. Effectives in relation to investments are minimized as result
of overruns in cost and added support in financing is necessary for the completion of project
hence margins of profit of the contractual organizations are minimized or done away with as
result of performance that is poor on issues of cost.
This paper begins with the review of a number of literature that explain the cost overrun effect
and the roles played by quantity surveyors in controlling it. For example, one source discussed
mentions that quantity surveyors provide roles which are wide and includes adjustment of losses,
expert witnessing, resolving of disputes auditing, management of values and managing projects.
Later, it shows the reason for its research whereby quantity surveyor are to help in management
of construction and building projects in relation to the aspects of finances. Next, the aims of the
research which are coming up with the roles and responsibilities of quantity surveyors in the
management of cost overrun during construction of structures. The main part comes in to

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describe the procedure of researching for quantity surveyor cost overrun data afterwhich the
paper concludes.
2. Literature Review
In this chapter, a number of sources that contained information on the relating factors affecting
quantity surveyor roles in cost overrun were reviewed. The reviews are put in various sub-topics
for easier clarification on the sources, content in review.
a) Definition of Quantity Survey.
According to (Allan, Keith, & Catherine, Willis's Practice and Procedure for the
Quantity Surveyor, 2013), surveyors make a definition of quantity surveyors as the cost of
constructing where professionals estimate and measure how much resources projects in
construction would cost, the individual’s role to keeping budgets on projects. The quantity
surveyor’s duty has beyond just estimating and measuring of the costs and amounts of structure
projects widened to new roles which include resolving of disputes, valuation of insurance,
managing projects and administering contracts. Lately, quantity surveyors provide roles which
are wide and includes adjustment of losses, expert witnessing, resolving of disputes auditing,
management of values and managing projects (Andrew P. , 2014). This article considers the
role of a quantity surveyor from an angle of one who represents consumers as a trade
contractor’s specialist, a consultant on cost, major contractors rather as cost or commercial
manager (Allan, Keith, & Catherine, Willis's Practice and Procedure for the Quantity
Surveyor, 2013).
b)Built Environment Quantity Surveyor
According to (Frank & Steven, 2018), apart from the old expertise role quantity surveyors
played in viability and feasibility improvement of structural investments such as documenting

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and compiling of contracts in construction, drafting, preparing relevant analysis on contractual
bids in construction, tenders and quotes, managing of finances of all works in construction,
selection of contactor advice, allied reporting which includes indexing costs, auditing, planning
of costs among others, quantity surveyors are also very important in management of projects in
construction, managing facilities , managing values, contract management, consultancy,
resolving of disputes in construction and research. Moreover, quantity surveying practice has got
impact in managing of assets, law, taxation insurance and managing of projects, manufacturing
of gas and oil and also banking. Much awareness about the profession has to be made to the
public by way of marketing of images that attractive which are professional putting in to
consider ethics in regards to discipline and technicalities, enterprise packaging and
advertisements. (Surveyors, 2006) says old ideas on quantity surveying and conducts of
professionalism have been revoked by the current technology, politics and society which have
changed. However, it is beyond control that as the profession experiences rapid growth in major
demand outside and inside construction, it is important that the growth be maintained because it
changes with increased demand and the good service attitude, time, the reasonable mind of
professional compensation bearing in mind duty of care to maintain exclusive productivity in the
company. Ethics of profession puts out the acceptable minimal required conduct compared to
practical problems which are not fully limited to institution assessment and pursuits, transactions,
tasks, technology but has more expectations of the public in relation to their need of
responsibilities, practical conceptualization, and voluntary service to the public and competency.
An increase in the requisite obligations, proliferation in professional institutions and academic
produced professionals, it is important to maintain the state of confidence and trust of the public
in practices of quantitative research professionals which applies to both the original and the latest

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practitioners of whom their profession has been viewed as impaired. Practitioner’s behaviour has
to be similar with the intent, ends and means of involved individuals in the manner of instinct
perception and variables which include employer or company, superiors, colleagues, customers,
members of the family, the public at large. For example the graduates, entrants who are new,
juniors, technicians and associates with least exposure in the field of profession have a different
view in ethics and techniques as opposed to senior members who are more experienced with
higher professional and academic qualifications with experience, more so at time of recession in
the economy and systemic dilemmas.
(Allan, Keith, & Catherine, Willis's Practice and Procedure for the Quantity Surveyor,
2013) says this is due to different academic backgrounds and exposures, duration of
professional practice, age hierarchy in an organisation as affects decision making in companies,
and general exposure to systemic problems of quantity surveyors, conscience and many more
others. Additionally, it increases economic relevance by continent rewards and policy of
organisations whereas there is believe that the professional’s role and nature in a business
establishment may have an influence on their professional disposition to disciplined ethics and
their conscience. As ubiquitous and problems widen with newcomers in quantity survey field
with different ambitions, it would be really hard to put them under legal responsibilities to
observe ethical practices. This is due to lack of recognition by professional bodies as their
members unless they are duly registered and examined, which may not be a requisite mandate to
work as according to delimited scope.
According to (Simon & Ramus, Contract Practice for Surveyors, 2008), exceptional
instances where academic institutions are not keen in supervising the ethical behaviours of
graduates from their establishments outside the school, as many educational facilities available

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aim at producing graduates with high technical skills as compared to aspects of the ethical
discipline. Generally, it has been hard for bodies of professions to follow up on cases of
professional misbehaviour due to no reward or appreciation by professional bodies or
government neither recognise practitioner’s effort or attempts to deal with serious ethical
challenges. There has been a variety of scholarly ethical definitions of routinization and
conceptualization in their applications to justify what makes up professional misbehaviour and
the effects of correspondence on the aspect of professionalism in the roles which are sensitive in
relation to a quantitative research in the industry of construction. Also, (Andrew & Peter,
Financial Management in Construction Contracting, 2012) mentions that there have been
studies on dilemmas in ethics of manager in construction, factors which affect views on ethics
and instincts in the decision making of administrators in construction and the relationship
between conduct or ethics of profession in quantity, the performance of projects and how
construction is managed.
There have also been further studies on personal ethics where each individual is treated with an
equal level of honesty, an opinion on the view about ethics of quantitative surveyors may be
affected by variables which are demographic and are likely to lead to a conflict of interest that is
intrinsic between practitioners working in the given variables. This includes the following level
of education, position in the company, nature of the business, age and nature of the task in
relation to the employment strict policies and gender, , according to (Surveyors, 2006). It is
easy to considerably discover misconduct and relate them in the ethically polarised quantity
surveyors cadres. Negative habits of quantity surveyors tempted frequently to sell out trade
secrets for something in return, inducements, compromised dispensation of professional service

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with a minimal level of honesty in most cases when they encounter competency issues in relation
to stern denial of a wrong and negligence.
(Warren. & Mahoney., 2005) proves that the tendency of exaggerating of services offered to
deceived customers is also very common so as they are lured to pay much than is needed. There
is a number of cases reported where quantity surveyors who are employed to protect the interest
of customers conspire with contractors who are greedy in order to defraud clients who are
unsuspecting. Quantity surveyors who are notorious most of times also give false reports in order
to favour self-interests without putting to play professional implications and the ambition of the
employer. They hide systemic errors to prove negligence adapt contract or trade figures without
professional reasons and compromising to inducement that comes with pressure or threats that
are expressed to prevent professional standards and opinions. Quantity surveyors major role in
management of costs in construction, they are vulnerable to auctioning of their conscience by
way of bribes that are not deserving , gifts and inducements especially during visitations at the
sites and valuation at the initial construction in the sense that poisoning of the professional
obligations tempered and pocketed at the will of the payer.
Reports from (Wayne, 2014) on abuse of office indicate that there are cases of
misappropriation of resources and time of organisations and offices for self-gains. Much time is
spent on a given that the required time and shows indolence at work. Furthermore, the habits of
compromising personal values principles of professionalism to achieve the demand of the
employer to the detriment of the public at large or client. Other than the vices that have been
revealed in the article, experience indicates that some quantity surveyors in consultancy can bow
low to even changing tender figures for contractors so as to win the interest of the client more so
when bids are lowest and the selection of a contractor is subjectively driven by data or price

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paradigm only. There are also instances where claims of revealing confidential and delicate
secrets of the contracts were released, whereas a good number of customer’s quantity surveyors
get involved in pricing bids candidate contractors. From the latest report, it is obvious that
professional bodies in some nations may in the future be politicised to indict unjustly the
members, in the case that the professional body is pressurized or hired to dent members who are
aspiring in bigger political ambitions of their image. The procedure of the judiciary has no power
in various similar instances in a number of countries that are developing at the expense of
quantity surveyors in consultancy, whereas some refuse to blow the whistle the corruption
defaults of executives who are in senior positions engaging in illegalities with contractors.
c) Role of the Quantity Surveyor
It is important that cost is managed other than being monitored. A research on a variety of
techniques and actions used by quantity surveyors to avoid overruns in cost on construction
projects in Irish. The research contains opinions of around 55 construction professionals that
represented a wider range of professional groups (Andrew D. , 2016). The responses ranked
various actions effective and if performed by the quantity surveyors to avoid cost overruns. The
actions were on a scale of 1-3 rated, of which 3 was very vital, 2 vital and 1 was least vital. The
below table shows the results;

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Factors with an average score greater to or similar to 2 were considered important, the measure
indicated that the top 5 which are shaded in the above diagram were seen important as compared
to the other 2 factors. The respondents considered the accuracy review of tender documentation
as the most relevant factor to avoiding cost overruns.
d)How to control consultants
According to (Andrew D. , 2016)t is important that the quantity surveyor sustain the financial
discipline in the design team giving advice to the consultants and architect is such a crucial
diplomatic duty. Cost control that is effective involves making sure that decisions in relation to
design are overall made within the constraints of the budget, for example, the sum of the
contract. The quantity surveyors take over the role of financial management of the team in
design and hence responsible for making sure that financial discipline throughout the team is
maintained. It is necessary that the team for the project awareness on the fact that no team
member is allowed to increase costs on any element or section of work. An outstanding
developed design must, therefore, be done within the specific allocation of the consultant’s
budget of their own.

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However, (Simon & Ramus, Contract Practice for Surveyors, 2007) says it is also
important for individuals in design be aware of their targets on costs of work and still work
within the given limits, and should not go on with design proposals which are above their
budgets. This activity may need given strategy as costs may turn out not to be the major priority
of a specific designer. By the designers training and instincts desire to come up with possible
best solutions. Development of design is continuous during the cycle of construction and a
continued desire to better the product. There is the risk of escalation of the cost is clear during
the process. However it is important to emphasize that that design is not behind the remit of
quantity survey and quantity surveyor except when playing the duty of the project manager,
have no sole power over decision making in design. The quantity surveyor must, however,
promptly react to developments and offer the needed information in reasonable time so as
designers can be able to create solutions in the budget.
e) Creating awareness of change.
The quantity surveyor must have knowledge of what is happening around them. They normally
maintain an updated revision, drawing checks and registers against specifications and contract
drawings so as to point out potential issues of costs that architect or consultants will discuss
before the issuance of the drawings. This is according to (Simon & Ramus, Contract
Practice for Surveyors, 2008). The quantity surveyor will closely work with other members
of the design team to know if they have considerations about changing their own designs. This
task helps the quantity surveyor to comment and evaluate the general cost, implications of the
programme on the proposals before the issuance of variables and quality. The envisaged
variables valuation may at first, be based on measurements that are approximated and notion

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lump sums, therefore, it is necessary to update the estimations as the availability of records and
detailed measurements.
Also, (Allan, Contractual Procedures in the Construction Industry, 2013) depicts the
importance of the quantity surveyor reviews all minutes and correspondence to be able to
identify relevant cost issues. They must aware of what is going on at the site so as to be able to
detect whether variations have not been confirmed or documented and also take advantage of the
opportunities available to communicate with representatives of clients at the site. Resident
architects, clerks of work employed individuals and engineers specifically are important sources
of information on developments, progress and challenges faced on site. Developing a working
relationship that is conducive to surveyor’s contractor is worth so as to agree and identify
changes and issues of the contractor at an early chance. The quantity surveyor should utilize the
time they make to the meetings sites to further account negotiations that are going on with the
surveyor of the contractor. Rolling final account is the signing off of the final elements of
account promptly and is regarded as a good practice.
f) Significance of communication
(Andy, 2014) makes a pro-active approach of managing cost is important as the quantity
surveyor is required to adopt such approaches towards controlling cost other than using the role
of monitoring and allowing the costs to come up in a manner that they are not controlled. It is
useless to have required information on cost overrun prevention and then fail to communicate to
the concerned designers. It is important that advice on cost and recommendations are
communicated to the client and the design team in such a reasonable time. The advice given
earlier on the information that is not complete is better off by far than a delayed information on

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full information. The quantity acts as a team player and therefore take a leadership mandate and
direct the effectively the design team on issues affecting cost.
Moreover, (Allan, Keith, & Catherine, Willis's Practice and Procedure for the Quantity
Surveyor, 2013) tries to show the importance of the quantity surveyor in ensuring that there is
the emergence of members within the design team is ignorant when it comes to the importance
of cost and also attention should be paid particularly to expert areas of controlling cost which
include electrical and mechanical design services. A close working relationship with members of
the design team who are specialists is necessary, as the quantity surveyor learns of the issues that
are capable of causing cost overrun at young stages and can come up with much easy corrective
and effective actions to be implemented. The modern communication is by use of channels
which are normal and includes e-mail, correspondence by post, personal contact and phone,
however, formal channels of communication are also needed so as to lower the information cost
to the many project members through cost reports and meetings. The process of communication
is a double process where the quantity surveyor to be updated with the minutes and the
correspondence so as familiar with issues of cost that are developing.
Meetings held regularly during the period of construction create a platform for roundtable
engagements and discussion in relation to developments on site where the quantity surveyor gets
the chance to update the status of the cost and provide with needed information to the design
team to making decisions that effective. This is according to (Andrew D. , 2016). Typically
the meeting entails the reviewing of the project status the financial progress presented by the
quantity surveyor where minutes are recorded down. This meetings also create chance for the
quantity surveyor to further collect data from construction team and the design however, the
quantity surveyor must be careful in the event where design team or clients ask for alternative

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options of design, when a question is asked on the spot about estimates or scenarios where
crucial issue on design arises. Advises that is not within the subject in such circumstances may
not make sense when detailed design implications are researched and proposals produced
eventually, therefore, over-optimism must all times be guarded against.
g)Reports on cost
(Duncan C. , Estimator's Pocket Book, 2013) depicts the need to regularly advise the
design team and the clients on the current financial status on the project of the anticipated final
figure of account and at the end of this, reports on cost are released by the quantity surveyor at
an interval of every month together with interim valuations. There is a special report to that
effect that may be warranted when crucial issues on cost arise and the reports are therefore
circulated to the administrators of contract, most times to some members of the design team and
clients. In the event that the cost report shows a significant increase in cost, the quantity
surveyor needs to propose suitable solutions to eliminate or mitigate the overrun in particular.
The regularly reporting to the client particularly drives to effective control of cost and
maintenance of discipline in relation to finance on a project’ and it is a process that the quantity
surveyor is required to be aware of the current position of finance from different members of the
design team and has to question the cause of cost plan variances. Therefore reporting brings
issues to a head and design team is forced to address the numerous issues before them.
h) Monitoring cash flow
According to (Allan, Contractual Procedures in the Construction Industry, 2013),
typically the quantity surveyor prepares a forecast on the cash flow based on the programme of
the contractor so as to give clients advice on how their outgoing is likely to be at the time
construction is going on. Normally the profile of the cash flow curves in shape of S that turns

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out an important aid in cost variance identification whereas, updated profile cash flow aids the
actual expenditure level to have it compared with the forecasted or planned expenditure.
Variances of two profiles can be identified readily and it shows if or not the project is operating
in accordance with the plan. Analysis of variance most of times shows that the project having a
higher cost to be completed or taking longer to be completed, however, an investigation ought to
be done on the causes of the variance and the root of the problem be identified and appropriate
measures to rectify such.
i) Engineering and management of value.
According to (Allan & Srinath, Cost Studies of Buildings, 2015), something of a better
value for money acquired by the client which is evident from this article, the risk of having a cost
overrun on a structured project is highly expected. And if this happens and there is not enough
funding available, the design team and the client are left in a dilemma of what they should
perhaps not do. The worst instances are characterized by grinding of a project to a halt while
ancient approaches to such instances the quantity surveyor is featured presenting a number of
measures of cost-saving normally on equipment, finishing and work site project elements. As
above noted this remedy is poor and leads to the outcome of the project being unbalanced as
structures with poor finishing pleases nobody and if furnishing after acquiring enough funds is
not economical. Engineer processes or the management of value is worth regardless of whether
the project is facing difficulties in costs or not.
Also, (Christopher, Allan, & Andrew, 2006) talks about managing of value can be defined as
a search to make improvements through an examination that is structured on every project’s
aspect so as to lower maintenance and running costs and capital. The aim is to design layouts that
are better, aesthetic, function and offer a better return which is often known to as expertise

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specialist field but a number of quantity survey firms now deliver services on value management
to their customers. However, the process of managing value is more effective at the contract’s
first stages. It is vivid that the effectiveness of the approach will be limited greatly as the project
is about to complete and at this stage panic usually comes in. a new review by an expert who an
independent facilitator nevertheless, who is calling meetings and conducting workshops has what
it takes to provide solutions that are creative in relation to what may seem as intractable
problems. There is a realistic possibility of achieving savings that are considered during the
process.
j) Expertise and experience of the quantity surveyor
According to (Duncan C. , New Aspects of Quantity Surveying Practice, 2011), it is
important that experts who give advice on the cost to be appointed so as to provide with
functions on cost control on the structural project. The advisers on cost should be skilled in all
dimensions of cost management and also experienced in projects of the same nature, size and
complexity in relation to projects before them to be able to perform the task.
From the above reviewed sources, it could be seen that quantity surveyors have been and are to
play critical roles in cost overrun management in the process of construction. Quantity surveyors
are to report on cost, monitor cash flow, significantly communicate, create awareness sin the
project cost and make good use of the consultants.
3. Relations that are Determinants to Overrun in Cost
In the process of construction, there are some duties that have to be performed to realize the
completion of the project. These duties have a relation to the cost of project completion. This
chapter makes a determination of the relating factors to the cost overrun determinants.

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a) The size of the project
(Allan & Srinath, Cost Studies of Buildings, 2015)involved a number of 363 project on
constructions that were public in the study and said that the chances of exceeding the original
project cost increases with the size of the project, and (Frank & Steven, 2018)had a similar
results on investigation, that indicated that, projects that were smaller contributed to minimized
overruns in cost as compared to those that are bigger in size. (Wayne, 2014)the trend was
explained with the assumption that projects that are larger, have more complex and a variety of
changes in design included and as a result tend to produce projects that are not successful
however, (Donald, Construction Quantity Surveying: A Practical Guide for the
Contractor's QS, 2017)on a research found out that performance cost in Netherlands is
different from the studies as percentages that average overruns in cost are in projects that are
small higher and the influence of the size of the project on the overruns in cost is a minor issue.
b)Chain of supply
(Steve & Peter, BIM and Quantity Surveying, 2016)Developed a questionnaire located in
the United Kingdom to research on the chain of supply effects on the performance of a project on
construction such as quality and cost where the outcome indicated that the deterioration of
relationships chain of supply has an effect on both the extent of overrun in costs and the
occurrence. The overrun in cost on construction increases when the chain of supply decreases
(Anthony, Carl, & Peter, 2016).
c) Duration of the project
The study results in Norway on construction of road, showed that overrun in cost is probably to
occur when the duration of the project is shorter hence the generally the definition is that upon
increase in the program of the project, there is a decrease in uncertainties therefore, calculations

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on cost turns out to be more accurate (Duncan C. , Quantity Surveyor's Pocket Book,
2017).
d)Method of procurement
The method of procurement is such crucial for attaining a project that is successful in regards to
time, quality and cost hence, various methods of procurement are being applied whereby every
one of them such as build and design, management of construction and the traditional method,
have got their own weaknesses and strength and it is important to be carefully considered so as to
choose the one is more suitable. (Sandra, William, & Andrew, Willis's Elements of
Quantity Surveying, 2011)Developed a questionnaire regarding procurement in the industry
of construction where 87% of the responses believed that suitable selection of method of
procurement is a positive indicator to delivering of a project which is successful. The outcome
showed that 93% majority responses have encountered overrun in cost and 53% directly attribute
overrun in cost to the selection of method of procurement whereas 59% think that the traditional
method of procurement was applied on those projects that experienced overrun in cost.
(Herbert, Barry, Barry, & Ben, 2015)Conducted another study on projects of building and
stated that the traditional system tendency in regards to overrun in cost is estimated at 53.5%
Additionally, (Service, 2013)conducted a study on a project which involved 2,772 units of
housing and made a conclusion that by use of the traditional system of procurement will cause
overrun in cost at about 36.72% while an entailed research conducted by (Christopher, Allan,
& Andrew, 2006)on overrun of cost in construction on 57 projects on housing which the
government of Nigeria proposed in the year around 1993 and 1999, in which the projects were
categorized four groups of cost. The finding showed that group four had the minimal overrun in
cost upon the application of the traditional system whereas group 2 had a greater percentage of

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overrun in cost. The table below shows the average overrun of cost for the categories of cost
(Duncan C. , Estimator's Pocket Book, 2013).
e) History of the case study
The collated study of cases on FTS and ECPs on projects that have been completed in New
Zealand, information was collected from 5 quantity surveyors consultants situated in New
Zealand whereby 3 of them interviewed were picked randomly from firms (Allan, Keith, &
Catherine, Willis's Practice and Procedure for the Quantity Surveyor, 2013). The
knowledge that is general about issues of risks and cost with concerns on factors leading to risks
between the stage of design FTS and ECPs in projects of learning buildings and commercial
buildings selected was found. Generally, factors leading to risks for the disparity as follows;
errors in coordination, variations in design, design information that is not complete, conditions of
the market, omissions and errors in documentation, change brought by the client, site data
investigation, incomplete documents for planning cost and tender documents that are incomplete.
However, improving the conditions of the market and also having a suitable plan on the cost of
design functions is seen as opportunities and not factors causing risks (Ivor, Quantity
Surveying Practice, 2013).
It was noted that the determinants of cost overrun in the process of construction could be divided
into procurement method, project construction duration, chain of supply and project size. These
therefore bring out the history of cost overrun analysis in New Zealand whereby the variations in
design, design information that is not complete, conditions of the market, omissions and errors in
documentation are crucial factors relating to cost overrun.

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4. Methodology of Research
This part come in to produce the research problem that affects the New Zealand quantity
surveyors in cost overrun. It also produces an illustration of the aims and objectives and how
these will be accomplished in the procedural conductance of the research.
a) Why research
In the year 2014, smith stated that overrun in cost is seen as a phenomenon that is common and
related to building and construction projects therefore, it is important to engage quantity surveyor
in the management of construction and building projects in relation to the aspects of finances.
This article illustrates the duty a quantity surveyor plays in an instance of overrun in cost in
construction projects where it particularly aims on the projects on construction of New Zealand
to find out factors leading to overrun costs and how quantity surveyors can minimize negative
impacts they have (Davis, 2013). The research on the topics selected can also help acquire
understanding of the role and services played by quantity surveyors in the process of developing
the project, professional ethics and contractual service (Andrew D. , 2016).
b)Aims of research
The study targets to investigate the duties and roles carried out by quantity surveyor in overrun
costs in projects on construction in New Zealand and help know the responsibilities of quantity
surveyor in management of cost for projects on construction and building. Managing costs
efficiently is a factor that is important for any project of construction to be successful, because of
a number of uncertainties and risks involved when coming up with a project on construction
commonly overrun costs that may cause the project to fail (Per & Theo, 2016). The need for
quantity surveyor in management of costs is increasing daily with rapid growth of projects of
constructing buildings in New Zealand, therefore, research has been selected to show how

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helpful quantity surveyors can be in minimizing and mitigating negative effects of overrun costs
in projects of constructing buildings (Building, 2012).
c) Procedure
A triangulation method was invented whereby a case study, literature analysis and research were
adopted in critical analysis of the relations between cost overrun and quality assurance as seen
from the literature reviewed. This method outlines the relationship in various ways, each
procedure trying to eliminate flaws or letdowns of other procedures. Every procedure was to be
well analyzed in regard to this report and relatively discussed to other methods of research
(Rachel & Geoff, 2010).
Secondary Data
1. Literature analysis
This part put the analysis of past literature as a tool of research in regards to this report. These
analyzed literature were looked at according to the techniques of assessing cost overrun and
definitions. Below are questions of the sub-research that have been looked at in the literature
analysis (Philip & Natalie, Dunedin).
 Is cost overrun an uncertainty or do they vary?
 How can cost overrun be assessed?
After the background of the research was found, there was a need to scrutinize further the
relations between cost overrun risk and its uncertainty. This was attained by two parts that are
crucial, these are techniques of assessing cost overrun and definitions (Richard, 2013).
Definitions simply aimed at illustrating extensively the various definitions of cost overrun risks
and uncertainties to find out whether it meant the same thing and to solve the first question of the

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sub-research. Techniques of cost overrun risk assessment concerned itself with the reviewing of
current methods to quantify cost overrun determining in the areas of challenge and limitations.
research and case study were applied to link the way quantity surveyors are supposed to assess
cost overruns with the reality in the construction industry (Patrick & Patrick, 2003).
Primary Data
2. Case study
This part critically analyzes the chosen case study in regards to this report. Limitations,
disadvantages and advantages are highlighted. This chosen case study is relatively discussed in
the research method and literature analysis as a way of trying to minimize the limitations and
disadvantages.
Below questions of research have been looked at;
 Is cost overrun today being quantified in construction projects in New Zealand?
 How is the cost overrun for construction projects in New Zealand assessed?
The case study to be analyzed had to appreciate the conduct of quantity surveyors in the building
industry in New Zealand compared to how they are deemed to perform in the report. The
research analyzed the cost overruns in the construction project as a way of making sure that the
findings and the literature analysis were familiar with the today’s practices of the industry.
Essentially the case study analysis determined the presence of cost overrun in the project and
tried to understand how to control the cost overruns (Mary & Mathew, 2004).
In the process of obtaining raw data, projects that were chosen had to be almost similar in
accordance with size and duration of construction. Selection of this manner made sure that the

23
project complexity would result to almost similar risks to cost overrun. Thereby, bringing out the
quantity surveyor roles in cost overrun. Scrutinizing determined the existence or no existence of
cost overrun and illustrated how the cost overruns can be managed on a project. Essentially the
aim was to understand a wider class of case studies with the application of the in-depth analysis
(Roy & Roger, 2016). Projects that are similar have a proper understanding of their cost
overrun risks whereby the first kind of complex projects usually contains higher cost overrun
risks. The identification of a complex and unique project suitably illustrated the existence of cost
overrun in the building industry (Madan, Mehta, & Scarborough, 2017).
The case studies were chosen so as to find out the differences between the available information
and the analysis which was documented at the finishing of the building project. A number of
varying measurable features were identified which includes; budget changes, risk analysis and
programme changes. A cost overrun analysis drawn over a period of time was put to comparison
with the differences in the actual and planned programme of the project and budget. This tried to
locate how close the first analysis was to the existing measure. A scale of cost overrun was
established by the identification of the highest and the lowest changes in the assessments that are
actual and planned. The study of cases to some extent could not have established proof of cost
overruns or shown how to manage cost overrun no wonder a research was applied to the findings
and enable generalization of the drawn conclusions (Fred, 2015).
a) Method of Case Study Selection
The two main objectives of the research were observed by method of heuristic evaluation as
discussed below. Nineteen quantity surveyor buildings were used to determine problems relating
to cost overrun in construction. For every black square shown in the figure below revealed the
outcome of project completion problem by the quantity surveyors. The figure indicates the

24
overlapping quantity of the problems discovered from the case studies. It was not advisable to
simply depend on the evaluation of the best constructed structures as it would not lead to a
suitable representation of all aspects occurring in the field. It was therefore important to engage
several constructed structures and bring up a representation of every issue. This idea was used to
the select case studies. The aim was essentially to look for the number of the issues for example
the range of techniques and opinions and the actual practice (Donald, Cost Management of
Construction Projects, 2013).
b) Sample Size Selection
Generally, if standardized method of statistical analysis is applied, data of up to a minimum of 10
is required in this research. That is, when an average number of responses are being established,
10 is the digit where statements that are sensible about what the term average stands for can be
made. The objective of the research was to appreciate amongst a class of experts on the quantity
surveyor relationship with the cost overrun risk and find out the various ways dealing with them
in the building industry in New Zealand. This was mostly arrived at by collecting a various
opinions from quantity surveyors and other stakeholders who are have knowledge on the costs in
the construction industry. The aim was not to find out the average neither the typical response
(Donald, Construction Quantity Surveying: A Practical Guide for the Contractor's QS,
2017).

25
c) Targeted Contributors
Quantity surveyors of building projects were particularly targeted due to the likelyhood of
playing the role of the expert group in relation to the management of cost overrun risk.
Generally, management of risks is controlled and monitored by the quantity surveyor on a
building project. Therefore the wide title of the project manager was much suitable in this
context. To make sure that quantity surveyors who participated in the research were grouped in
as experts in regards to the management of the cost overrun risks, the research was classified into
two groups of building project managers. One class having education or experience also referred
to as single experts and another group who are professional quantity surveyors possessing
qualification with experience for more than three years simply known as the double experts
(David, 2014).
These groups had to play an equivalent role in the case research’s experts who are
knowledgeable in the field to find out if experience had an impact on the understanding of the
cost overrun management. The experience of three years was selected relying on the guidelines
of the project management institute. To attain such qualifications one must have experience of at
least 3 years and a degree as a requirement in the construction industry. This selection of
experience for years is further backed by the New Zealand firms of project management whereby
experience of more than 3 years is a requirement to be regarded as project manager (Chuck,
Paul, Rafael, & Kathleen, 2011).
Analysis Method
This part establishes the method of analysis and critically scrutinizes it’s relation to various
research methods applied in this report such as; the limitations, disadvantages and advantages

26
along with their identifications. The analysis is explained partially to the method of case study
and the literature analysis in order to minimize the existing limitations and disadvantages. The
literature review established 2 schools of thoughts in the determination of the relations between
cost overruns and quality assurance (Sandra, William, & Andrew, Willis's Elements of
Quantity Surveying, 2011). The first thought was that cost overrun risk is uncertainty
whereas the second thought is that cost overrun risk vary. However, the two major objectives of
the research are; to identify methods applied in cost overrun management and study the
relationship between quantity surveyor roles and cost overrun risk in the building industry in
New Zealand as an addition of the study of cases method (Duncan P. , 2006).
Research Questions that were incomplete still could be useful. The responses had to be put in a
comparison as well as applicable nature to other new industrial projects. The types of projects
played critical role in defining the applicability of unfinished research questions. It was noted
that this study was subjected to a limitation in that the cost overrun estimates were big treated
differently across the various construction industries. However, the main aim was to produce a
feature on one distinct classification in the processing of obtaining research answers (Aqua &
Mark, 2002).
Error sampling can arise in specific participant selection. The addressing of these potential
limitations can be made available through the use of an optimum amount of a firm’s project
management. Databases are contacted to obtain the quantity survey field experts. Using the
national bodies eliminated biases when approaching companies. However, these approaches
were not bound to the management of construction sites in the cost overrun research. It was,
therefore, important to have an inclusion of background questions when the research began for
the screening out of participants from the particular research field. The experts that were chosen

27
had the choice of accepting or failing to participate. Such technique made room for greater
accuracy of the data due to the willingness characteristics (Buchan, Eric, & Fiona, 2012).
In these construction projects, there were more risks entailed in them due to the complexity of
the dynamic nature as well as their multiple processes of feedback. The phase of construction has
more risk compared to other phases in the context of cost overrun. However, there lacked a
specific breakdown that could be used in differentiating the variety of phases within the research
since the study proved to lack an assessment of different phases. One more classification that
attracted attention was the dispersion of cost overrun risk across the construction, design,
environmental and political fields. This variety of fields needed different cost overrun planning
from a quantity surveyor. They were matters of concern but failed to show their usefulness in the
analysis of cost overrun. Importantly, the focus mainly based its study on the construction
classifications that included the sizes and type of buildings. Categorizing the study into this
branches increased the determination of cost overrun by quantity surveyors (Brian, 2013).
a) Categorization of Collected Data
The conclusions and questions to be presented in this study were influential in the formulation of
research questions for the gain of literature with specific answers. In order to come up with a
conclusion from these questions, various answers for every question had to be noted down in the
process of researching. Formulation made it possible for categorized scale level opinions. The
opinions were set to be in complete understanding or no understanding since the respondents
were being limited to specific answers using many questions. One more category, ‘others’ made
sure that every opinion was captured (Boddington, 2016).
The structure of the research was depicted as shown below;

28
Treatment
 Current cost overrun treatment being used.
- It's identification
- The used assessment
- Response obtained
- Control and monitoring.
 Definitions
- The cost overrun definition.
- The differences in the used cost overrun prevention.
- The existence of any improved cost overrun prevention practice.
- The effect of the cost overrun prevention practice in the actual projects.
3. Analysis of answered Questions
The section exposes the number of leading answers that would establish the cost overrun
understanding. It also determined how these cost overrun from the research were dealt with in
their different separates environment before the terms of the cost overrun was separated for more
explanation. In case the participants failed to produce a specific understanding of the cost
overrun policy on researching, their answers were taken into the treatment t section that reduced
the impact of these understandings to the research accuracy (Albert & Chan, 2014). The
section form these obtained data were compared to the literature present in the review sources
thereby leading to a development of a difference in the cost overrun estimates. Developing such
a structure was important, the reason being it allowed formulation of valid conclusions about the
perception of the various quantity surveyors (Andrew R. & Peter,, Financial Management
in Construction Contracting, 2012).

29
5. Conclusion
The reason why quantity surveyors are employed for financial and management issues in relation
to the process of construction in projects of buildings. The construction building projects are in
nature dynamic and incurs risks and uncertainties outcomes where overruns in costs is a great
risk that shows up in projects on construction and may have an adverse and serious effect on the
perspectives of finance to the client. The quantity surveyor roles are discussed in this paper
taking note of the reviewed sources details. The obtained information form the reviewed sources
are put into consideration to try coming up with a detailed methodology that would capture the
importance of considering cost overrun in construction sites. In the determination of the cost
overrun role of quantity surveyors, studies were don on various industrial sites. The collected
data would them be a representation of the cost overrun roles and importance in its
considerations by quantity surveyors in New Zealand.

30
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