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New Aspects of
Quantity Surveying Practice
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A text for all construction professionals

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Commissioning editor: Alex Hollingsworth

Development editor: Rebecca Rue
Production controller: Pauline Sones
Desk editor: Jackie Holding
Cover designer: Fred Rose
 New Aspects of
Quantity Surveying Practice
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A text for all construction professionals

Duncan Cartlidge
The Scott Sutherland School,
The Robert Gordon University,
Aberdeen, UK

OXFORD AUCKLAND BOSTON JOHANNESBURG

MELBOURNE NEW DELHI
 Butterworth-Heinemann
An imprint of Elsevier Science
Linacre House, Jordan Hill, Oxford OX2 8DP
225 Wildwood Avenue, Woburn MA 01801-2041

First published 2002

© 2002 Duncan Cartlidge. All rights reserved

No part of this publication may be reproduced in

any material form (including photocopying or
storing in any medium by electronic means and
whether or not transiently or incidentally to some
other use of this publication) without the written
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permission of the copyright holder except in

accordance with the provisions of the Copyright,
Designs and Patents Act 1988 or under the terms
of a licence issued by the Copyright Licensing
Agency Ltd, 90 Tottenham Court Road, London,
England W1T 4LP. Applications for the copyright
holder’s written permission to reproduce any part
of this publication should be addressed to the
publishers

British Library Cataloguing in Publication Data

A catalogue record for this book is available from the British Library

Library of Congress Cataloguing in Publication Data

A catalog record for this book is available from the Library of Congress

ISBN 0 7506 5256X

Composition by Scribe Design, Gillingham, Kent

Printed and bound in Great Britain
 Contents
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List of figures and tables vii

Foreword by Martin Bishop xi
Preface xiii
Acknowledgements xv
Abbreviations xvi
Dedication xviii
1 The catalyst of change 1
2 Managing value. Part 1: The supply chain 33
3 Managing value. Part 2: Partnering 75
Douglas I. Gordon
4 Procurement – doing deals 102
5 Procurement – doing deals electronically 148
6 New technology – opportunity or threat? 189
Graham Castle
7 Global markets – making ends meet 221
8 Education, research and practice 259
Marion Temple
Appendix 278
Index 283
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 List of figures and tables
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Figures
1.1 The heady brew of change 2
1.2 Construction output – percentage change 1970–2001 3
1.3 Survey of private sector construction clients’
perceptions of budget accuracy 4
1.4 Survey of private sector construction clients’
perception of completion times 5
1.5 Public sector construction budget performance 16
1.6 Public sector construction delivery performance 16
1.7 Key performance indicators 26
1.8 Radar chart comparing 1-month performance of
French construction site with the European average 29
2.1 Supply chain squeeze 35
2.2 Supply chain and traditional management
approaches compared 37
2.3 Supply chain 41
2.4 Traditional construction supply chain 42
2.5 Fenestration supply chain 43
2.6 Principles of supply chain management (source:
The Building Down Barriers Handbook, Defence
Estates/BRE) 44
2.7 Conversion process 48
2.8 Lean production of building components 50
2.9 Target cost scheme 52
2.10 Target completion scheme 53
2.11 Value management methodology (source:
SAVE International Society of American
Value Engineers) 57
2.12 FAST methodology (source: Society of American
Value Engineers) 59
 viii List of figures and tables

2.13 Functional Analysis System Technique (FAST)

diagram 61
2.14 Costs and recommendations of value engineering
proposal 66
2.15 Prime contracting using supply chain management 69
2.16 Supply and demand uncertainty 71
2.17 Prime contracting–procurement path 72
4.1 Classic private finance initiative – contractual
relationships 109
4.2 Agreed PFI deals 117
4.3 Perceptions of risk allocation (source: National
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Audit Office, 2001) 131

4.4 Establishing value for money with the public sector
comparator (source: HM Treasury, 1998) 134
4.5 Gateway reviews (source: Office of Government
Commerce) 136
5.1 e-Commerce drivers and inhibitors (Source: Gartner
Group) 151
5.2 Structure of B2B business (Source:
PricewaterhouseCoopers) 157
5.3 The development of B2B commerce (Source: Morgan
Stanley Dean Witter Internet Research) 158
5.4 Cable & Wireless advertisement 164
5.5 EU total tendering entities 166
5.6 e-Procurement smartcard 167
5.7 How TenderTrust works 168
5.8 e-Tendering versus traditional tendering (for public
sector tenders above certain thresholds) 172
5.9 e-Tendering web page 174
5.10 e-Commerce business models (Source: Paul Timmers) 175
5.11 Construction supply chain benefits (Source:
e-Business for the Construction Industry –
BuildOnLine, November 2000, and Kite) 180
5.12 Traditional supply chain communication 181
5.13 Collaboration platform communication 182
5.14 e-Business development model 187
6.1 CAD structure 202
6.2 CAD block options 203
6.3 IT development methodology 211
6.4 The commercial cycle 215
6.5 Estimates at any level 216
6.6 Database structure 218
 List of figures and tables ix

7.1 Making ends meet (source: Serguei, Le Monde) 222

7.2 Construction exports in terms of volume of new
overseas contracts expressed as a percentage of
national construction turnovers in 1999 (source:
FIEC-EIC; percentages indicative only) 222
7.3 Tenders Direct search results 235
7.4 Infringements of EU Directives (source: Secretariat
General, European Commission) 245
7.5 e-Procurement 250
7.6 Hofstede’s cultural determinants 252
7.7 Organisational chart (source: adapted from
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International Management, Reed Business

Publishing) 254
A.1 Prior Information Notice 278
A.2 Invitation to Tender Notice 279
A.3 Contract Award Notice 281

Tables
1.1 British and French construction performance
compared (source: Bartlett School of Graduate
Studies, University College, London) 10
1.2 Trends in procurement 24
1.3 Rethinking construction recommendations 27
2.1 Typical verbs and nouns used in functional analysis 60
2.2 Elemental costs (Building Cost Information Service) 63
2.3 Example of cost allocation to functions 63
4.1 PFI trends in financing 111
4.2 Payments committed to PFI projects 115
4.3 Projection of PFI capital spending 116
4.4 PFI savings compared (source: NAO) 118
4.5 PFI procurement guide (source: HM Treasury) 122
4.6 Risk register 129
4.7 Calculation of the PFI credit support 138
4.8 International development of PPP 144
5.1 Levels of e-business 176
5.2 e-Business Level 1 177
5.3 e-Business Level 2 178
5.4 e-Business Level 3 179
6.1 Characteristics of construction and property
industries 193
7.1 EU construction-related output – 2001
(source: FIEC) 226