Evaluating Elemental Cost Planning Accuracy

The provided document is an assignment on evaluating the budgetary reliability of design stage elemental cost plan in building procurement within the context of New Zealand construction projects. It encompasses a review of relevant studies, methodologies, and case studies to inform students' understanding of this topic.

Running head: PROJECT IN CONSTRUCTION MANAGEMENT
Quantity Surveyor's Role in Cost Overrun in Building Projects of New Zealand
Student Name:
University Name:

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Table of Contents
Introduction......................................................................................................................................2
Background of the study..............................................................................................................2
Need for the proposed research...................................................................................................2
Research Aims.................................................................................................................................2
Literature Review............................................................................................................................3
Definition of Quantity Surveyor..................................................................................................3
Role of Quantity Surveyor in construction project......................................................................3
Cost overrun and involvement of Quantity Surveyors................................................................5
Involvement of Quantity Surveyor in cost control process.........................................................6
Project Design..................................................................................................................................7
Research Philosophy....................................................................................................................7
Research Approach......................................................................................................................7
Data Collection............................................................................................................................8
Research Design..........................................................................................................................8
Ethical Considerations.................................................................................................................9
Expected Outcomes.....................................................................................................................9
Timeframe for the project............................................................................................................9
Conclusion.....................................................................................................................................10
References......................................................................................................................................12

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Introduction
Background of the study
A construction project is considered to be successful when it is delivered with the
required quality standards within the estimated time and budget. The management of costs in an
efficient manner is essential for achieving the desired outcomes from a project. The major
expectation of the clients is that the project does not exceed approved budget (Adafin et al.,
2017). Hence, Quantity Surveyors (QS) are being employed for managing the financial aspects
related to the construction process in building projects. The building construction projects are
dynamic nature and involves risks as the outcomes maybe uncertain. The cost overruns is a
major risk that arises in a construction project which may seriously have an adverse effect on the
client from financial perspectives. The effectiveness in terms of investments are reduced due to
cost overruns and additional financial support is required to complete the project (Olanrewaju,
2016). Therefore, the profit margins of the contracting organizations are reduced or eliminated
due to poor performance in terms of cost.
Need for the proposed research
Smith (2014), states that cost overrun is considered as a common phenomenon associated
with projects for building construction. Hence, the involvement of Quantity Surveyor (QS) is
important to manage the building construction project in terms of the financial aspects. This
study will help to illustrate the role that is being played by Quantity Surveyors while there is
occurrence of cost overruns in projects for building construction. This study focuses particularly
on the building construction projects of New Zealand to determine the causes of cost overruns
and how Quantity Surveyors mitigate their negative effects. The investigation on the chosen
topic will also help to gain an understanding of the service obligations of Quantity surveyor in
the project development process, contractual service and professional ethics.
Research Aims
This study is aimed at investigating the role that is being played by Quantity Surveyor in
cost overrun in building projects of New Zealand. This study will help to determine the roles and
responsibilities of Quantity Surveyor in cost management for building construction projects. The
efficient management of costs is an essential factor for the success of any construction project.

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There are various risks associated with development of construction projects and the most
common is cost overrun which can even lead to project failure. The demand for Quantity
Surveyor for cost management is increasing day by day with the rise of building construction
projects in New Zealand. Hence, this research has been chosen to determine how Quantity
Surveyors help to mitigate or reduce the negative impact of cost overrun in building construction
projects.
Literature Review
Definition of Quantity Surveyor
The role of the quantity surveyor is just to estimate the total budget that will be required
to complete a construction project. Not only this but also they have many other roles to server
also. They must make sure that the production and construction budget are properly managed
and efficient as well (Zhao, Mbachu & Domingo, 2017). They also develop the “quantity
schedule” estimating the labor and material cost those measures by the contractor’s tender. In
order to accomplish a construction project successfully the roles of the Quantity surveyors those
are needed to be maintained are as follows:
 Regardless of the type of the construction project such as house, bridge etc the finance
details are managed by the surveyors
 They are responsible to complete the project within estimated timeframe
 Responsible to complete the project within budget
 Mitigate the issues the contractual parities (Ji, Mbachu & Domingo, 2014)
 For different kinds of buildings they are responsible to prepare replacements
Before the final submission of the project the budget for the construction should be
estimated considering the requirements. For each phase of construction, whether the budget is
sufficient or not is also calculated by the construction project surveyors (Smith, 2014). The main
operation and project functionalities that the project surveyors should focus on include the
project cost, materials, labor cost and other services.

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Role of Quantity Surveyor in construction project
Mbachu and Cross (2015), perceived that the commitments of Quantity Surveyor are
preliminary cost direction, cost organizing and regard organization, legitimately restricting
procedures. Moreover, offering, choice of impermanent specialist, valuation of advancement
work, project organization and extended efficiency. Adafin, Rotimi and Wilkinson (2015), raised
a couple of organizations of Quantity Surveyor should be given in the midst of the assorted
period of the undertaking.
In the pre-contract arrangement: The Quantity Surveyor has the role of preparing and
making the cost plan, direction on cost of setup gathering's recommendation. Also, screen cost
recommendations in the midst of the point by point setup design, keep up and make cost plan.
For the tendering stage: Quantity Surveyor should urge on the legitimately restricting
documentation to clients. The Quantity Surveyor moreover needs to prepare recommendations
for interim portions, post-contract cost control and last record (Mbachu, 2015). Additionally,
Quantity Surveyor should give and esteem bills of sums, design cost examination, direct on
money related implications, train on the use concerning areas and give an estimation of regions,
give urging on legitimate issues. The surveyors can also help with probability considerations for
a venture. They can largely survey what is related with the task, in light of estimations of the
draftsman's or client's portrayals. The Quantity surveyor looks at the sketchers' and planners'
outlines, perceives the costs included, and after that sets a general evaluated budget for spending
on the venture (Adafin et al., 2016). They may differentiate the undertaking and others like it.
The Quantity surveyor would then have the capacity to configure costs to empower the
arrangement to aggregate stay inside the plan for budget using sensible courses of action. The
last positive estimate is set up by the Quantity surveyor, together with a venture sketcher. This is
the explanation behind evaluation of tenders.
After the beginning of construction works, the Quantity surveyor will be able to provide
wage data so the client can sort out the records essential for each period of the endeavor. The
Quantity surveyor can in like manner assess the impacts on cost when changes occur within the
undertaking happen, for instance, delays, and agree on 'assortment' with legally binding
specialists (Adafin, Wilkinson & Rotimi, 2015). The Quantity surveyor can outfit a deal with a
record with an endeavor report and enable a client by preparing draw down supports for money

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to be progressed by the bank. The setup of discussions between clients and the originators as
well as building legally binding specialists is another part in a couple of exercises. After
satisfaction of improvement, the Quantity surveyor can set up a declaration of indisputable
record in which the real costs for all portions of the movement are recorded.
Cost overrun and involvement of Quantity Surveyors
Cost overrun are typical on development projects. Development projects are dynamic and
dangerous endeavors where results are regularly dubious. The business is portrayed by the
development of irregular bespoke structures on destinations whose conditions and imperatives
are very factor. Durdyev, Omarov and Ismail (2017), opined that each project includes
exceptional plan and development challenges which are commonly embraced by impermanent
associations gathered for the specific undertaking; lessons learned are hard to catch in these
conditions. Undertakings frequently set aside a long opportunity to finish and constantly there
are strains between the needs with respect to quality, time and cost. Durdyev et al. (2017),
demonstrated that the market of construction is profoundly recurrent with resulting weights on
assets. Amid the pre-contract period of the task the QS is fundamentally worried about
guaranteeing that the rising outline stays inside spending plan. This procedure to a great extent
focusses on checking the plan group's proposition and exhorting the group on the different cost
issues and issues as they emerge. This can be a testing assignment, and is one that proceeds into
the development stage. Smith (2014), had stated that the undertaking of controlling expenses
amid the development stage, be that as it may, goes up against a radical new measurement with
the passage of the temporary worker. Temporary workers are business endeavors whose need is
to make a benefit. In New Zealand, most building projects are secured utilizing 'conventional'
aggressive offering courses of action to name temporary workers. This approach has the impact
of stifling the overall revenue contractual workers can charge in trying to win the delicate.
Undoubtedly, in recessionary periods, contractual workers might be headed to delicate negative
edges keeping in mind the end goal to produce Cashflow and to secure rare work. It is
guaranteed, that where 'a vocation is losing cash' that the contractual worker will look to
recuperate their misfortunes from the customer by different means. Cost control in these
circumstances can turn into an exceptionally requesting assignment.

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Adafin, Rotimi and Wilkinson (2016), illustrated that Cost overruns decrease the viability
of projects and require extra back to be raised. On open works contracts cost invades redirect
reserves from different activities, making negative thump on impacts in the more extensive
economy. In the private segment the extra subsidizing must be sourced from holds or obtained.
In contracting associations, poor cost execution lessens or takes out net revenues. In
extraordinary cases this may prompt extend or organization disappointment. Cost overwhelms, in
this manner are a noteworthy issue among development customers, project directors and
development organizations alike. They cause debate, baffle project goals, and strain continuous
business relations. Counteracting cost overruns, in this way, is a key target amid the execution of
development projects.
Involvement of Quantity Surveyor in cost control process
In context to Quantity Surveying, the cost control process includes guaranteeing that the
monetary allowance is not surpassed without prior approval from client. In this unique situation,
the monetary allowance is the agreement entirety in addition to the possibility whole. The
agreement aggregate on generous tasks is regularly separated in a valued bill of amounts, which
thus is connected back to the first cost arrangement (Lessing, Thurnell & Durdyev, 2017).
Possibility wholes are likewise regularly related back to the cost design, however on numerous
events the possibility is not made known to the contractual worker and stays secret to the
customer, planner and amount surveyor. Genuine advance is observed, estimated and routinely
contrasted with the cost design and income conjectures. The interims between interval (regularly
scheduled) installments shapes a helpful comparator period for this procedure. The contractual
workers' installment applications furnish amount surveyors with definite input about the
advancing position of variable parts of the record. Investigations of fluctuations inside PC (prime
cost) totals, temporary aggregates, varieties and cases may uncover that remedial activity is
required to keep up budgetary control (Wong, Salleh & Rahim, 2015). The QS reports the
current budgetary position and foreseen last record to the customer and configuration group for
the most part on a month to month premise. The customer's response to awful news might be
'awkward' for those included.
Lessing, Thurnell and Durdyev (2017), states that apart from this it is the role of the
construction project surveyors to prevent the cost overrun and time overrun as these will

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interrupt the project success In New Zealand. They survey consists of 55 construction opinions
given by the professionals. Different actions are again ranked to avoid construction project
overrun issues. On a scale of 1 to 3 these measurements are rated by the QS. 3 is a higher rank
whereas; 1 is poorer one. The below table represents the result of the measurement:

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Very important Important Less important
 The accuracy of the bills
of tender documents and
quantities are reviewed
and checked (Wong,
Salleh & Rahim, 2015)
 Deals with different
variation
 Accuracy for the cost
estimated for constructing
a building
 For risk management it
gives realistic
contingency
 Control the cost through
the project life cycle
(Zhao, Mbachu &
Domingo, 2017)
 For running the contract
personnel experienced are
hired
 The procedures of value
management are carried
out respectively
Project Design
Research Philosophy
Principally, there are three kinds of research rationality, for example, positivism,
interpretivism along with it is realism. In this specific study, the expert associated the possibility
of positivism as the exploration reasoning which understands reality of the examination work. It
takes the investigation focus to do legitimate examination on the accumulated data to make a
suitable framework (Taylor, Bogdan and DeVault, 2015). Along these lines, the reasoning is
relied upon to appreciate to lead the examination on chosen topic for this particular research.
Research Approach
Two different types of research approaches are there such as deductive and inductive and
based on background of the research topic “Role of a quantity surveyor in construction projects
of New Zealand” the researcher should adopt the most suitable one to conduct this study. For
this research topic the inductive approach is avoided as it is based on real scientific research
frameworks. Considering the research background for this topic deductive research approach is

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selected because it implies on the established theories and data collection also. It is expected that
the above mentioned research questions will help to learn more dominant idea related to this
research domain.
Data Collection
Mainly, two types of data are associated with research such as primary and secondary
data that can be used for this particular topic. The primary data for conducting this research will
be collected with the help of survey by preparing online questionnaire. The secondary data will
be collected from the previous studies being published as journals and blogs over the internet
(Lewis, 2015). For this particular research a mixed approach will be used for collection of data to
have a deep understanding of the topic. The different perspectives of the chosen topic can be
identified from the mixed data collection approach.
The primary data source will consist of contractors and construction project managers
who will participate in the online surveys to provide some light on the chosen topic. The primary
data will also be collected by holding interview sessions with the managers being operating in
the construction industry. The secondary source of data will comprise of the peer reviewed
journals focused on the role of Quantity surveyor role in cost overrun associated with
construction projects. The survey with online questionnaire will help the researcher to generate a
statistical outcome to ensure success of research on the chosen topic (Flick, 2015). The sampling
will be done based on random probability method and a total of 100 participants will be chosen
for the online survey. The sample size will be 100 with 50 contractors and 50 project managers
from different construction industries of New Zealand. The suitable application of data collection
method will ensure successful analysis of data to achieve the desired outcomes from the
research.
Research Design
Research design is an essential element of research methodology as it provides and well-
structured and organized approach for the researcher to conduct the research successfully. It is
being considered to be the blueprint for conducting the research work and it presents the detailed
plan for research along with data analysis. The research design can be divided into three major
categories as exploratory along with explanatory and descriptive (Silverman, 2016). For this
research on the chosen topic, explanatory design is chosen for assisting and gaining knowledge

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on the selected research topic. The chosen design will help the research to gain an insight into the
selected topic as it will help to fulfill the gaps identified from previous studies.
Ethical Considerations
The exploration will be led according to the examination rules. The exploration will be
submitted inside the time and additionally the information those are gathered to lead the
examination will be precise according to the learning of the specialist. The information will not
be unveiled to any outsider (Panneerselvam, 2014). The review will be directed according to the
run and no such inquiries will be solicited that may hurt the feelings from the clients. All the
examination inquiries will be picked according to the exploration subject. The examination will
be done sincerely with the goal that it gives the precise result and discoveries according to the
whole investigation of the gathered information.
Expected Outcomes
The focus of this study is on determining the role being played by Quantity Surveyor in
cost overrun from the perspective of building construction projects. The effective management of
cost is an essential aspect for the success of a construction project and this study will
demonstrate whether there is a need or not for Quantity Surveyor in such projects. This study
will help the researcher to analyze the strengths and weaknesses of the Quantity Surveyors and
their impact on construction projects. The study will contribute towards determining the various
actions that are being taken by the Quantity Surveyors to control the costs of construction
projects.
Timeframe for the project
Activities
considered for
the research
work
First
Week
Second
Week
Third
Week
Fourth
Week
Fifth
Week
Sixth
Week
Selecting the
topic for research
and getting
approval


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Analysis of
research question
for conducting
research topic
 
Literature review  
Selection of
research methods
and research
tools
Data gathering
through
interview

Data gathering
through survey

Finding and
analysis
 
Identification of
research
limitation

Research
conclusion with
recommendations
  
Final submission
of the proposal

Conclusion
This research project will investigate the role of Quantity Surveyor in context to the
occurrence of cost overruns in the projects of New Zealand related to building construction. A

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wide range of skills have to be employed by a Quantity Surveyor to gain competitive advantage
in their profession. They must have the capability of negotiating with the different types of
people that will be associated with the building construction projects. Hence, this study will also
demonstrate the skills and knowledge of Quantity Surveyor that are essential for cost control and
management in building construction projects. The involvement of a Quantity Surveyor is
essential for the success of construction projects as they play an important role in applying
suitable methods or techniques for management and controlling of costs. This research will also
help to identify the potential strengths along with the weaknesses of Quantity Surveyors in
context to the building construction projects.

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References
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planning: an analysis of New Zealand data.
Adafin, J., Rotimi, J. O., & Wilkinson, S. (2015). Why do the design stage elemental cost plan
and final tender sum differ in New Zealand?. Journal of Financial Management of
Property and Construction, 20(2), 116-131.
Adafin, J., Rotimi, J. O., & Wilkinson, S. (2016). Determining Significant Risks in the
Variability between Design-Stage Elemental Cost Plan and Final Tender Sum. Journal of
Management in Engineering, 32(6), 05016016.
Adafin, J., Rotimi, J. O., Wilkinson, S., & Windapo, A. O. (2017). Achieving design-stage
elemental cost planning accuracy: Case study of New Zealand.
Adafin, J., Wilkinson, S. J., Rotimi, J. O. B., & Odeyinka, H. A. (2016). Evaluating the
budgetary reliability of design stage elemental cost plan in building procurement: a New
Zealand study.
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Ji, C., Mbachu, J., & Domingo, N. (2014). Factors influencing the accuracy of pre-contract stage
estimation of final contract price in New Zealand. Supply Chain Management, 4(2), 51-
64.

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Lessing, B., Thurnell, D., & Durdyev, S. (2017). Main factors causing delays in large
construction projects: Evidence from New Zealand.
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