1.

5 Services Quantity Surveying

Quantity Surveyor is known as a Construction Economist, or Cost Manager which is
one of a team of professional advisers to the construction industry. They estimate
construction costs from the beginning stage of a project through to the completion of the
construction period. This is measured from architectural drawings, to be used by contractors
for tendering. At feasibility stage quantity surveyors use their knowledge of construction
methods and costs to advise the owner on the most economical way of achieving their
requirements. (Designing building, 2012)
Quantity surveyors may use techniques such as Cost Planning, Cost Estimating, Cost
Analysis and Value Management to obtain a project budget. In construction industry, a cost
plan is used as a way of controlling estimated costs during the design and construction period
of a project. That means that cost plan is living artefacts, just like project management plans.
A cost estimate is the estimated cost of a project. The cost estimate is the important process in
construction process because it give an approximation cost to clients so that they know how
much it cost. Cost analysis is a critical process in construction projects. Cost analysis is far
more important as effectiveness of cost analysis in the contract will determine not only the
budget of the project but also the profitability for an organization. Value Management is a
structured framework that facilitates effective decision making the Best Value (Aiqs, 2010)

Market Structure: Pure competition

Justification: Quantity surveyors firm has provide services such as cost analysis, cost
estimate, value management, cost planning and others. Example for the Quantity Surveying
firm is Unitech QS Consultancy Sdn. Bhd. The project they had done is Sp Setia- Qbee in
Penang, Auto World in Penang and others. Next is Kuantibina Sdn. Bhd. they has provide
consultancy services since 1981. The project they had done is 1 st avenue in Pinang, Giant
hypermarket in Pinang. Next is Northcroft Sdn. Bhd. It is an international QS firm in
Malaysia. The project they had done is MPAJ in Taman Muda, Polis station in Ampang.
(Study, 2013)
These firm have same similarity which is categories as pure competition. Pure
competition is a term that describes a market that has a broad range of competitors who are
selling the same products or giving the same services. According to Board of Quantity
Surveyors Malaysia, in 2016 there is more than 1000 Quantity Surveyors firm provide
services in Malaysia. This show that QS firm is a pure competition as it has more than 100
firm in Malaysia. Each firm has to follow the professional fee fix by professional body when
provide services to clients. They must accept the market price and can exert no influence on
price. In pure competition, each firm have standardizes services or product. They also provide
the same services to clients such as value determination, cost consulting, risk management
and calculation, tender analysis and agreement of the contract sum and others. These firm can
free entry and exit. There are no significant barriers that prevent firms from entering or
leaving the industry. So that new companies can easily enter or leaving the market.
(Investopia, 2009)

Reference:
Study, 2013.Pure Competition Definition Characteristics Examples [Online]
Available at: http://study.com/academy/lesson/pure-competition-definition-
characteristics-examples.html [Accessed 24 Mar 2017]
Aiqs, 2010. What Is Qs [Online] Available at:
http://www.aiqs.com.au/imis/aiqs_website/about/what_is_a_qs_/aiqs_website/about/
what_is_a_qs_.aspx?hkey=75 [Accessed 24 Mar 2017]
Designing building, 2012 What Is Qs [online] Available at:
https://www.designingbuildings.co.uk/w/index.php?title=Special
%3ASearch&search=what+is+qs&title=Special%3ASearch&redirs=1[Accessed 24
Mar 2017]
Investopia, 2009 [online]

Available at: http://www.investopedia.com/terms/p/perfectcompetition.asp [Accessed

24 Mar 2017]