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8/2/2019 A Strategic Perspective of Ict Supported Cost Management for Green Buildings in the Quantity Surveying Practice
1/14
A STRATEGIC PERSPECTIVE OF ICT SUPPORTED
COST MANAGEMENT FOR GREEN BUILDINGS IN THE
QUANTITY SURVEYING PRACTICE
Wilfred M. Matipa [BSc, MSc, PhD, PGCertTT, MCIOB, MAACE]
Department of Built Environment, Faculty of Technology & Environment, Liverpool John
Moores University, Liverpool, Merseyside, UK
For the Republic of Ireland to meet the European Parliament directive 2002/91/EC which places
a duty on building developers to design, build and operate structures that meet the sustainability
criteria set in the directive - the architecture, engineering, construction and facilities management
(AEC/FM) industry must take up and practice green building systems that promote total
integration of the construction process. Green building is the process of producing a constructed
facility that encompasses ultimate energy efficiency, forward-thinking resources management, andgeneral sustainable construction. Achieving green building, however, requires an integrated team;
combining a wide range of different specialists through in-depth collaboration so that the
complexity of trade-offs between architectural features, building services and other factors can be
reached. The aim of the research has been: (i) to highlight the availability and use of software
systems in the Irish construction cost consultancy; and (ii) to gather views from practicing
professionals on how the available systems could ease the implementation of total cost
management of green buildings. The research concludes that the industry is well poised to move
into the next generation of surveyors that would fully participate in the envisaged green
construction industry; and that development in the ICT complement the traditional competencies
of Quantity Surveying.
KEYWORDS: cost management, information Technology, sustainable construction, traditional
quantity surveying
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INTRODUCTION
The Irish construction industry operates in a similar pattern to most international
industries in the developed world. From design to construction, various professionals
use complex tools and techniques to optimise client requirements. The most recent key
requirement for most clients has been to meet the European Parliament directive2002/91/EC [which places a duty on building developers to design, build and operate
structures that meet the sustainability criteria set in the directive (Morrissey,
ODonnell, Keane, and Bazjanac, 2004)]. Meaning, construction professionals must
take up and practice green building systems that promote total integration of the
construction process. By definition, green building or sustainable building is the process
of producing a constructed facility that encompass ultimate energy efficiency, forward-
thinking resources management, and general sustainable construction (Rajgor, 2004).
Achieving green building, however, requires an integrated team; combining a wide
range of different specialists through in-depth collaboration so that the complexity of
trade-offs between architectural features, value and cost, building services and other
factors can be reached (Sorrell, 2003). This research is part of a strategic approach to
implementing green building practices, by promoting an early convergence of
professional work in the building product delivery process. It demonstrates that while
there is a thesis that new developments in ICT systems are virtually damping the
traditional competencies of quantity surveying, the picture in Quantity Surveying
Practice is opposite: in that more traditional competencies of quantity surveying are
sought so as to increase the speed, accuracy and reliability of the manipulation and
analysis of data created using ICT systems.
CHALLENGES OF OPTIMISING VALUE FOR CONSTRUCTEDFACILITIES
Naturally, an optimal value of a constructed facility can only be achieved if the right
balance between performance, cost, delivery time (Ashworth, 2004; Dundas, 2005) and
the market value is achieved. In the case of green buildings, getting such a balance
requires a great deal of simulations from the project team so that all decisions prove not
only environmental friendly, but also valuable, workable, and cost effective. As a result,
the ability to collaborate in early phases within the project team, with a view to
providing expertise on life-cycle analysis of all decisions cannot be over-emphasised
(Hipkiss, 2005). Integration, however, cannot easily be achieved because of the diverse
professional disciplines on each project (Sorrell, 2003). Divergence in professional
specialisation and interests, and the sequential nature of construction stages have
naturally caused industry-wide operational islands; leading to fragmented building
performance assessments (Morrissey, ODonnell, Keane, and Bazjanac, 2004), as
shown in Figure 1.
Because of industrial fragmentation, cultural issues as well as business issues tend to
have stronger sentiments each time the issue of operational integration is considered for
the construction industry. A buildings life spans its planning; its design, construction
and operation; and its ultimate reuse or demolition (Osso et al, 1996). Often, the entity
responsible for design, construction, and initial financing of the building is different
from those operating the building, meeting its operational expenses, and paying
employees salaries and benefits (Osso, et al, 1996). However, the decisions made at thefirst phase of building design and construction can significantly affect the costs and
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efficiencies of later phases; that is why its crucial to include a Quantity Surveyor at
design stage (Ibid). Life-cycle cost analysis an increasingly accepted analytical
method that calculates costs over the useful or anticipated life of an asset reveals
that low up-front expenditures, though easier to finance at building inception, can result
in much higher costs over the life of a building or system (Ashworth and Hogg, 2002).
There are generally two complementary ways to achieving integration in the projectteam, so as to implement green building practices: (i) by business relationships between
firms; and (ii) by identifying, and using the right technological tools and techniques that
can facilitate the smooth running of the integrated team. The latter is the focus of this
research.
THE IMPORTANCE OF TRADITIONAL COST MODELLING
SYSTEMS
Despite the increase in the demand for more sustainable practices, traditional systems
continue to play a crucial role in the modelling of construction cost data (Ferry et al,2003).
Design Stage Construction Stage Operation Stage
Desired Built Environment Product, e.g. Office Block
Architect, Engineers, Stake Holders Contractor, Sub-Contractors, Facilities Mgmt
Quantity Surveyor Project Manager Construction Manager
Client, City Council, Others
Operational Islands created
when p rofessional
specialisation is
superimposed on product
development systems of the
built environment
Figure 1: Operational Islands Created by Superimposing Operational Specialisation on Industrial
Segmentation [Adapted: Kerzner, 2003]
Figure 1 abstracts the type of traditional cost models mapped against the generic design
stages, and examples of how cost models are used at various stages. Using Figure 1 it
can be observed that the cost modeller requires not only design data but also historical
cost information about the product. However, practical implementation of the
examination of the economic benefits and environmental ramifications of green
buildings, with life-cycle assessments is extremely harder when using traditional project
appraisal systems that are endemic in most construction industries (Erlandsson and
Borg, 2003; Osso et al, 1996). Quantity surveyors realise that actual calculations of thebuildings total economic and environmental impact and performance from material
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extraction and product manufacture to product transportation building design and
construction, and operations and maintenance, and building reuse or disposal (Sorrell
2003) can be taxing. For instance, the general cost management of projects that are
highly mechanical and electrical [M & E] in nature is assigned to M & E firms; mainly
by way of provisional and or prime cost sums because of the specialised nature of the
mechanical and electrical profession, making it extremely difficult and risky for theQuantity Surveyors to manage such costs. The more complex project become, the
higher the demand for better cost modelling tools for the quantity surveyor (Sorrell,
2003). This development, among other factors, has led to the changing role of the cost
consultant the world over. There are complex LCA systems used as powerful decision
making support tools (Erlandsson and Borg, 2003), such as the BREs Envest; which
is a system based on the top down approach, because it has been developed for use in
the design phase of a building project. Most programs, however, are still user unfriendly
due to the shear amount of data required to appraise a design. However, it is envisaged
that emerging software would boost project appraisal and analysis, from the aspects of
time, cost, performance and market value; and enhance the work of a quantity surveyor.
If integrated, cost modelling systems can be important to the business of Quantity
Surveying because they help professionals achieve total cost management of a
constructed facility a concept which supports green building (Figure 2). As a result
computing power [information and communication technology (ICT)] is inevitable in
the cost consultancy sector of any construction industry because it increases the speed to
capture, analyse and share data to facilitate decision making.
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Unit
Space
Element
Features
Standard Methods of MeasurementsItems (CESMM or SMM7, or Standard
WBS)
Operations
Resources
Traditional Model TypeGeneric Design Stages Data User
Brief StageSketch Design
DetailedDesign
WorkingDrawin s
QuantitySurveyor
Cost/Bed; Cost/Stude
Example
Cost/m2 of Gross Floo
Cost/m2 of Functional Cost/m3 of Building Vo
Cost of Functional Eleof Gross Floor Ar
Cost of Groupeditems
Bill of Quantit
Cost of Labomaterials, Su
Cost per NetwOperation
Contractor
Figure 2: Type of Cost Models Mapped against Generic Design Stages [Adapted: Ferry et al, 2003]
8/2/2019 A Strategic Perspective of Ict Supported Cost Management for Green Buildings in the Quantity Surveying Practice
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THE WANING TRADITIONAL COMPETENCIES OF QUANTITY
SURVEYING AND GREEN BUILDING
There has been a suppressed demand for the essentially traditional and technical skills
of surveyors, due to increasingly sophisticated ICT solutions, which, as in many other
jobs, are beginning to automate some of the roles associated with surveying (RICS,
2002). Unless the profession adapts to the rapidly changing demands of its services, it is
in danger of losing its leading role in providing services to its key markets: land,
property and construction. The following research questions are addressed
Figure 3: Abstraction of nD Model used for What if Cost analysis (Source: Tanyer and Aouad, 2005)
Unlike 3D and 4D models that represent building information contained within several
document formats (Figure 3), nD models tend to be databases constructed with intelligent
objects which represent building elements (Lee and Sexton, 2007). From this centraldatabase, different views of the information can be generated automatically (ibid). nD
modelling builds upon the concept of 4D modelling, and aims to integrate an nth number of
design dimensions to a holistic model, which would enable users to construct and visualise
the building over its complete lifecycle (ibid). Using a survey, Lee and Sexton (2007) found
out that the nD modelling technology was considered as potentially useful, but not
sufficiently proven to risk disrupting current ways of working, and existing technology
infrastructure (ibid). Potential pitfalls associated with the deployment of an inappropriate or
ineffective ICT system is one of the key factors contributing to the low levels of investment
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in ICT within the construction industry (White, 2007); as is the case with Lee and Sextons
(2007) survey. However, it is envisaged that ICT systems will take the form of fully
integrated and intelligent enterprise systems that could profoundly change the shape of the
industry (Figure 4); more so with the intelligence being imposed upon many of the industrys
unintelligent processes in the form of the building product models and other interoperable,
digitally formatted building standards (White, 2007). Therefore, it was important to collect
primary data pertaining to the Quantity Surveying business in Ireland.
100
80
0
Process Design Detailed Engineering Equipment Manufacturing Construction
%
OF
TOT
AL
C
OST
80% of the costs are committed
by design decisions, w hen only
a limited % of engineering is complete
100% of the costs are committed
Spending Curve
Figure 4: Project Expenditure Commitment Curve v Project Spending Curve [Source: Kinney and
Soubiran, 2004]
RESEARCH DESIGN AND DATA COLLECTION
In order to extract a sound understanding of the established body of knowledge on
integrated cost management of sustainable construction, the following research
questions were formulated:
I. What kind of software is the industry using for the design, constructionand running of constructed facilities?
II. Could the available software promote information sharing; hence
facilitate integrated and collaborative approach to business?
III. Could the developments in the ICT systems reduce the over dependency
on traditional quantity surveying competencies?
A questionnaire was the main instrument for data collection because: (1) The type of
population literate; (2) Most of the population could not find time for an interview; (3)
The increasingly expensive nature of alternative means of data collection.
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Sampling Design
By definition, simple random sampling is a form of sampling design in which n distinct
units selected from N units in the population in such a way that every possible
combination ofn units is equally likely to be the sample selected (Everitt, 1998).
Stratified random sampling therefore is the random sampling from each strata of a
population after stratification (Ibid). The population for this research was naturallystratified, by the Society for the Chartered Surveyors of Ireland (2004) according to the
county where a firm operated from. (i) Cork; (ii) Dublin; (iii) Waterford; (iv) Limerick;
and (v) Galway. However, companies that had outlets in more than a single country
were only represented by their headquarters. Stratified sampling was used because it
ensures that different groups of a population are adequately represented in the sample so
that the level of accuracy in estimating parameters is increased (Nachimias and
Nachimias, 1992). The aim was to achieve a total population (N) of fifty (50)
respondents so as to increase the chances of a high response rate. Twenty three (23)
responded, or a 46% response rate. Even though a higher response rate could have been
desired, data collection proved extremely sluggish despite all four methods of
questionnaire distribution namely: (i) Postal mail; (ii) Electronic mail; (iii) Web-link
hosted by a private consultant; and (iv) personal delivery. The presentation and eventual
analysis of the results from the survey follow the sequence of questions set in the
questionnaire so that the clarity of the research is enhanced.
Key Details of Respondents to the Research Questionnaire
The breakdown of respondents, according to their respective positions within firms
would bolster the validity and reliability of primary research data (Figure 5) Fifty seven
percent (57%) of respondents had managing director portfolios at the time of the survey;
seconded by seventeen percent (17%) senior Quantity Surveying portfolios. Thoughunexpected at the time of questionnaire distribution, this development adds a strategic
dimension to the research mainly because respondents would have a proportionally high
number of years of Quantity Surveying experience coupled with visionary duties of
steering the firm to a prospective future. Experience in the Quantity Surveying business,
as earlier alluded to, can impact the quality and reliability of research information. Sixty
seven percent (67%) of respondents had more than fifteen (15) years of experience
while twenty two percent has experience ranging from six (6) to ten (10) years. There
was virtually no responded with less than 5 years of experience in Quantity Surveying.
This dimension is crucial for this research because information is obtained from people
that have experienced cyclical movements of the construction market; and the eventual
changing role of the quantity surveyor. Naturally, consultancies tend to have a relativelysmall number of personnel. The research results showed that 52% of firms had Quantity
Surveying personnel ranging from 5 10. However, this was to be expected, because
most consultants can manage many projects with a small number of professionals. The
firms that tended to have more personnel were big players on the market, with many
offices across the country.
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Breakdown of Respondents
13%
17%
57%
13%
0%
10%
20%
30%
40%
50%
60%
Quantity Surveyor SNR Quantity Surveyor Managing Director Others
Official Position in the Firm
Responce
Figure 5: Breakdown of the Respondents According to their Official Positions
Project Specialisation
Within the industry, certain firms specialise in building related works, while others
specialise in refurbishments and/or repair works. Because of the complexity, and in
most cases, the specialised nature of Mechanical and Electrical [M&E] projects, some
Quantity Surveying companies tend to apportion the overall cost management of such
projects to the M&E specialists; using lump-sums or prime cost sums. Other QuantitySurveying firms have dedicated professionals specialised in M&E works. A fair amount
companies that offer M&E cost management. Some of the M&E installations include
HVAC systems for buildings. Because such installations have a huge impact on the
initial as well as overall financial investment, it becomes essential that prudent
economic simulations are carried out so as to assess the likely return on investment
prior to committing finances. It is therefore important for any Quantity Surveying firm,
with or without M&E specialists, to carefully analyse and appraise the financial and
economic prudence of design decisions on M&E systems. Most Quantity Surveying
firms can handle assorted projects type ranging from civil to refurbishment. This could
be attributed to the generic nature of the profession, which most cases, allows
consultants to manage the costs of projects irrespective of their size, type and
complexity, using the same principles of total cost management. It is could therefore be
argued that the industry is well poised to manage any sort of project, as is evidenced
from the respondents view.
Project Teams and Documentation
The perception of importance of Quantity Surveying at generic phases of the project
provides the starting point of the overall assessment of role of cost management within
a project team. For instance, if respondents felt quantity surveyors were not important at
the preliminary stage, it could have been concluded that they were still operating withrelatively conservative approach which promotes the production of bills of quantities
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from drawings: also referred to as costing a design. However, respondents were of the
view that Quantity Surveying is highly essential at all stages of the project life cycle.
The preliminary stage as well as the design and construction stage had the highest
scores. Kinney and Soubiran (2004) argued that 80% of the cost of the project is
committed at about 20% stage of the project life cycle. This phenomenon shows that it
is crucial to analyse design options, not only from the aesthetic point of view, but alsofrom the financial, economic, and build-ability points of view; and the overall
anticipated impact [positive or otherwise] of the proposed development, at an early
stage.
Information Technology Packages in Use and Level of Information Sharing
The available software systems for cost consultancy business typify any world-class
construction industry. Build-soft and Microsoft Excel are the most widely used systems
for the preparation of quantities, estimating and cost planning, cost monitoring, and
final accounts management. Similarly, project planning systems such as Microsoft
Project Planner, Power Project, and Primavera Project planner are predominantly used
for project planning purposes; while AutoCAD and Voloview are used for accessing
visual design data. Research question 1: asked for the kind of software is the industry
for the design, construction and running of constructed facilities? Results paint a good
picture of useful software systems available to cost consultants; and that they could
utilise the systems to uphold green building.
Optimum application of available software systems for appraisal and analysis of
projects does not however rely on the software alone, but the user. For one to model the
financial, economic, and sustainable performance of a constructed product from design
to completion, more systems would be desirable; especially systems that offerintegrated data so as to allow effective cost modelling. Despite the availability of
software systems, information sharing amongst professionals is predominantly a hybrid
[a combination of paper and electronic systems] at 61% while paper systems are used by
39% of respondents. There are legal risks associated with the electronic data transfer
systems. Construction cost management goes hand in hand with contract administration,
settlement of claims, and valuation for accounts, to mention but a few. Therefore,
respondents argued that even though electronic systems supersede paper ones, it still
remains essential that a paper back-up system is set up in preparation for dispute
resolutions. Respondents were confident with the efficiency of the current data sharing
systems in place because 30% rated the system as very efficient, 48% said the system
was efficient, and 22% indicated the system was quiet efficient.
Stage in the Project Life cycle when Available Software is crucially-
Important
Even though respondents were of the view that available software systems were crucial
at all stages of the product life-cycle, it is important to note that design and
documentation scored very high, as shown in Figure 6.
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Project Stage at which available Software is Crucialy Important
0 2 4 6 8 10 12
Preliminary
Design & Documentation
Construction
Operarion
All Stages
None
(Project Stage)
Response (Number)
Figure 6: Rating the Project Stage at which Available Software is Crucially Important
Thirty nine (39%) percent felt the systems totally encouraged information sharing,
while twenty two (22%) felt the systems encouraged information sharing to a large
extent. However, 26% felt that information sharing, though encouraged, was to a less
extent; and 13% felt the software did not encourage information sharing. In terms of
the extent they used the software for information sharing in the project team: 39% used
the software at a high rate; 39% on an average rate; 17% on a low rate, and 4% never
used the software. To test respondents consistency, they were asked to rate the extent to
which available software discouraged information sharing. Fifty seven percent (57%)
were of the view that the software did not discourage information sharing, while 43%felt the software discouraged information sharing; to a less extent. Because information
sharing is pertinent to this research, it was important to establish correlations between
selected sets of observations.
According to Witte and Witte (1997) a positive relationship among pairs of
observations tend to occupy similar relative positions in their respective distributions,
while negative relationships tend to occupy dissimilar and opposite positions in their
respective distributions. If however there is no regularity among the pairs of
observations, it could be interpreted that there could be no significant relationships
(Ibid). Even though a correlation coefficient, regardless of size, never provides
information about whether an observed relationship reflects simple cause-effectrelationship or some complex state of affairs, it is a prudent way to engage predictive
measures of the trends using current body of knowledge. To describe correlation
between quantitative data and qualitative data with two categories, assign arbitrary
numerical codes, such as 0, 1, 2, 3, to the two qualitative categories then use the Pearson
r formula, also known as a point bi-serial correlation coefficient. Alternatively, to
describe the relationship between two qualitative variables, again assign arbitrary
numerical codes to the categories of both qualitative variables and solve the formula in
Equation 1, also designated as Crammersphi coefficient (Witte and Witte, 1997).
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=
22
yyxx
yyxx
r
Equation 1: Pearsons Correlation Coefficient Computation Formulae [Source: Witte and Witte,1997; Microsoft Excel Functions, 2003]
The Pearson correlation coefficient was used to determine the consistency of
respondents on information sharing resulted in:
(a) Compare rating for the extent to which the software systems encourage
information sharing with the usage of the software for actual information
sharing at 0.70;
Though positive, the correlation coefficient shows that even though respondents felt the
software encouraged information sharing, they did not fully implement information
sharing using the software. Because the observation data sets are relatively small, a
higher positive correlation would have dispelled the inconsistency.
(b) Compare the rating for the extent to which the software systems discourage
information sharing with the usage of the software for actual information
sharing at -0.99;
The negative correlation coefficient reflects a more realistic picture of the perceptions
because respondents felt the software did not discourage the use, hence perceptions and
actual implementation of information sharing create a negative correlation, as is the
case.
The second research question assessed available software promotes information sharing;
hence facilitate integrated and collaborative approach to business. There was a slightpositive correlation between the usage of MS Excel and Buildsoft, calculated at 0.51
using the Pearsons coefficient. From the results, it could be deduced that the
integration of software packages a key to cost management has not taken off on a
big scale within the cost consultancy sector. As a result, encouraging software
interoperability would even be more challenging. There were leading questions
embedded in the survey where respondents were asked to comment: they include:
(i) The Extent to which Software Discourages Project Information Sharing
Respondents perception of the extent to which software is a contributory factor to the
poor implementation of information sharing is as follows: (1) When different softwareis used, or data is imported into a different file format;(2) Poor communication amongst
professionals, especially on the location of information;(3) Poor linkage between pre-
contract and post contract activities, mainly because data standards are not
compatible;(4) Computers do not improve the work (i.e. the way professionals design),
but has huge effect on communication, though accessibility to drawings can be
universal; (5) Because old systems still work and have proven reliable, especially when
systems fail, professionals do not tend to experiment on newer technologies;(6) The
generic procurement system is still Design-Bid-Construct, therefore team participation
follows that pattern;(7)Some traditional aspects of Quantity Surveying must remain un-
automated e.g. taking off quantities;(8) Incompatible software between different
disciplines of the design team.
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(ii) Aspects of Cost Consultancy Business worth Automating
Respondents argued that: (1) No part of the business should be automated because
allowing software to dictate the modus-operendi could be detrimental to the profession;
(2) Collection, analysis and use of cost data and of historical cost information need to
be automated;(3) Measurement and generation of quantities, and billing, interim and
final accounts aught to be automated;(4) Even though it is difficult to automate most ofthe QS work (soft nature) but software for costs in use would be useful (cost Planning),
economics or cost in use; (5) Proper business records in cases of disputes, litigation, etc.
Modern software needs to improve in its recording of data, e.g., records of emails sent;
(iii) Anticipated Threats to Traditional Cost Consultancy Business
Assessing the threats to ones business is crucial for survival in a competitive
environment. The following are some of the threats perceived by quantity surveyors: (1)
Fees: too low which leads to poor service, unsatisfied client, lack of work; (2) Software:
too reliant on software, hence weakening the technical strength of new surveyors;(3)
Skills: Too many consultants go for the 'FAT' budget, its easy to come under-budget,
and client looses out; (4) Non audit-ability of artificial information in terms of statistical
data on future life cycle costing; (5) Demand for sustainable construction will put
pressure on cost consultancy, because clients would not only demand historical data, but
also futuristic data; (6) Engineers and architects are trying to carryout the job of the
quantity surveyors, thereby increasing their fees; (7) An amalgam of various computer
packages in lieu of a more streamlined approach. Because clients wish to get value for
money, and they are not going to be paying for something that can easily be done
automatically
Research Question iii: Could the developments in the ICT systems reduce the overdependency on traditional quantity surveying competencies?
Over 75% of the respondents felt the need for traditional competencies has never
waned; in fact there is more demand for such competencies even with the availability of
ICT.
CONCLUSION AND DISCUSSION
For quantity surveyors to fully implement total cost management during the product life
cycle, it is important to integrate cost management systems. Software interoperabilityoffers a good prospect for total cost management, though there has been a lack of
market data from the industry which, if available, would be crucial for the marketing of
the software solutions emanating from research institutions. The nature of Quantity
Surveying is such that it uses a relatively high volume of assorted information from a
myriad of sources; as a result a suitable package from the quantity surveyors point of
view, is one that can capture as many of the operational dimension they are involved in
day today running of the business, without disrupting the body of knowledge built over
the years; systems aught to complement existing cost algorithms such as standard
methods of measurement. Additionally, collaborative working would result in the
implementation of total cost management, hence contributing to sustainable
construction. It becomes absolutely crucial that surveyors take up newer integratedsystems if they are to compete adequately on the market.
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