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EFFECT OF TECHNOLOGY IN THE FIELD OF QUANTITY SURVEYING AND HOW IT AFFECT COST, LABOUR AND TIME
ABSTRACT
Quantity Surveying (QS) appears to be one of the few professions that have not been profoundly transformed by the application of the technological advancement offered by digital revolution especially in a developing economy like Nigeria. The paper examines the extent to which the Nigerian quantity surveyors (NQS) have been moving with the times of information technology. The aim is to discover the challenges faced by the professionals by examining the factors affecting the use and adoption of computer in a dynamic world of explosive growth of the information and communication technology (ICT). The study adopted a survey design methodology. It was observed that there was increasing yearly rate of adoption of computer in QS services, particularly among those QSs in their mid-career years. About 89% of the quantity surveyors have been using computer for project cost management services (PCMS). Almost all the respondents are performing word processing functions using computers while the proficiency level is indicated to be high in Microsoft Excel and Microsoft Word. About 44% of the respondents carried out spread functions using computer while about 45% wished to perform spreadsheet functions with computer. QSs’ attempt to computerize their services has been more of technology driven than process driven. Four elements of cost that were rated to be high with respect to income of the QSs are cost of original software, cost of branded hardware, cost of infrastructures to support computerization and cost of support
services by computer professionals.
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND TO THE STUDY
The explosive growth of the information and communication technology (ICT) has had unquantifiable impact on business systems and processes .The global acceptance and widespread adoption of ICT has accelerated the dimensions of competition not only among organizations globally but among professions locally. The QSs ability to avail themselves with the emerging opportunities provided by the advent of ICT depends on the adoption of new technologies (Castle, 2002). Computer has promised to be a reliable tool in all spheres of human endeavour. Literature has documented the relevance of computer/computing to the industry (Shash and Al- Amir, 1997). Advances were made in various professions when such professions took advantage of technological tools available (Li, 1996 and Pollack-Johnson & Liberatore, 1998). There is quite a lot of development in all areas of computer application to the industry. Of note are the expert systems, artificial intelligence, knowledge-base systems (KBS), artificial neural networking (ANN), robotics and computer aided design (CAD).
Information and Communication Technology (ICT), also known as information technology (IT) has radically transformed the way we live, learn, work and play (Capron 2000). Many companies in the construction industry do not generally appear to have appreciated the positive changes and advantages that the new technology was providing to companies in other sectors of the economy.
A major construction process demands heavy exchange of data and information between project participants on a daily basis (Masqsood et al., 2004). This makes the construction industry one of the most information-intensive industries, and requires close coordination among a large number of specialized but interdependent organizations and individuals to achieve the cost, time, quality and sustainability goals of construction project (Ugwu et al., 2005). ICT has been shown to be a vital tool in assisting the construction industry to cope with the increasing complexity of its product and services as well as the increasing demands of clients and regulators (Betts,1999), and to enhance construction productivity (Liston et al., 2000).
To asses the effect of ICT on construction in this regard, surveys on the use of ICT in the construction industries of various countries in different parts of the world have been carried out in recent times. They include surveys conducted in Canada in 1999 (Rivard, 2000), Nigeria in 2000 (Arif & Karam, 2001), Sweden in 2000, Denmark in 2001(Samuelson, 2002), Malaysia in 2001 (Lim et al, 2002). Turkey in 2001 (Sarshar & Isikdag, 2004) and Singapore in 2003, (Goh, 2005).
While most of these surveys have been carried out in highly developed European countries and Asian economics, only the Nigerian survey by Arif & Karam (2001) represent an emerging economy in Africa. Oladapo (2007) has also carried out a survey into the use of ICT in the Nigeria construction industry. However, his survey apart from it being limited to South West Nigeria, focused more on the level of computer literacy of construction industry professionals and mode of acquisition. Oyediran (2005) studied the awareness and adoption of information and communication technology (ICT) by Architectural, Engineering and Construction industry educators in Nigeria.
Adejimi and Iyagba (2007) compared E-construction technology for integrating surveying processes between Nigeria, Canada and the Nordic countries. Their study however revealed that the digital divide between Nigeria and the developed world is closing up as more and more computer facilities are becoming accessible. However, they also indicated that modern and advanced information technology facilities such as internet, intra/extranet, virtual reality tools, tele/video conferencing, construction robots etc are grossly inadequate. The intent of this research work is to ascertain the level of use of ICT in the Nigeria construction industry and also to determine the prospects with respect to the benefits, cost, risks and research and development needs.
Scholars have observed the implications of transferring quantities information from CAD systems directly to the quantity surveyor or contractor. Rivard, Froese, Waugh, El-Diraby, Mora, Torrres, Gill and O’Reily (2004) predicted that the evolution of IT will have a profound impact on how organizations in the architectural, engineering and construction (AEC) industry operate. This is already coming to pass. For example, there are pockets of reduction in paper-based operation in quantity surveying offices while electronic led- processes are leading to less dependence on taking- off sheets and other ancillary stationery. Honey (1998) reported that a large proportion of QSs in the United Kingdom have been using computers. In an earlier baseline study, Oyediran and Odusami (2004) examined the state of the art of computing by QSs in Nigeria at the turn of the last century.
The construction industry has recently witnessed a paradigm shift from traditional paper-based method of service delivery to electronic information exchange using Information Technology (IT), at least in the western world like UK. It is now evident that the adoption of Information Technology can enhance construction productivity and improve communications for effective decision-making and coordination among construction participants. The ability of the industry to avail itself of technology depends on the level of usage by construction participants including the Quantity Surveyor (QS) who plays a major role in the management of project success determinants, such as cost, time and quality.
It is apparent that we live in a dynamic world characterized by incessant technology change. The explosive growth of information and communication technology (ICT) otherwise shortened as information technology (IT) has had unquantifiable impact on business systems and processes (Rivard et al., 2004). Advancement in information technology has made possible fundamental changes in the method of practice in all businesses and industries although at different levels (Li, 2000). The global acceptance and widespread adoption has accelerated the dimensions of competition not only among organizations globally but among professions locally (Hampson and Tatum, 1994).
The construction industry with the aim of leveling their colleagues in other industries have embraced the use of information technology such as internet, computing, telephoning, satellite communication and electronic mailing to perform most, if not all of their activities (Ibidapo, 2000). The quantity surveyors’ ability to avail themselves of these emerging opportunities provided by the advent of information technology depends on the adoption of new technologies (Castle, 2002). There is quite a lot of development in all areas of computer application to the industry. Of note are the expert systems, artificial intelligence, knowledge-base systems (KBS), artificial neural networking (ANN), robotics and computer aided design (Arif and Karam, 2001).
Rivard et al. (2004) opined that the evolution of information technology will have a profound impact on how organizations in the architectural, engineering and construction industry operate in the way other industries such as manufacturing and banking have adopted and benefited from long ago. He noted that this is already the case in many of the developed countries around the world. In lieu of this, Honey (1998) reported that the turn of the last century has seen a reduction in paper-based operation in quantity surveying (QS) offices in UK while electronic led-processes are leading to less dependence on taking-off sheets and other ancillary stationery. The quantity surveying profession in Nigeria has experienced significant changes over the past decade in terms of the scope and type of services provided within the construction industry (Oladapo, 2006). These changes have occurred primarily in response to changing industry/client demands, information technology developments, increased levels of competition for services and the vital role of the quantity surveying in achieving improved service delivery.
Moreover, given the increasingly global nature of construction industry obstinate by extremely high levels of domestic competition and resultant low profit margin levels, there is no doubt that the construction industry has to improve its information flow and project delivery mechanism (Wager, 1998). Thus, as information flow increasingly become electronic, quantity surveying computing facilities, software and databases will need to develop in a compatible manner. Nigerian quantity surveyors will need to adapt to changes in work patterns to improve their efficiency and develop new markets to maintain competitive advantage and enhance profitability through the adoption of IT. In summary, the Nigeria construction industry in general and the quantity surveying profession in particular are facing the challenges of effectively utilizing the rapid expanding technological environment in which it operates to its full advantage (Oyediran and Odusami, 2004).
Their study was limited to Lagos State of Nigeria and can at best be cautiously generalized. ITcon Vol. 10 (2005), Oyediran and Odusami, pg. Thus an update on the state of the art of computing by the professionals is necessary. The critical roles being played by the QSs in the procurement chain require that the professionals must not lag behind in the adoption of tools that promise to improve on their service delivery.
1.2 STATEMENT OF THE PROBLEM
It is a known fact that advancement in technology and evolution of information technology as dramatically change the way business is conducted by various professionals. It has reduced the cost of services, reduce costs, labour and saves time. The quantity surveying profession are not left behind, they have also embraced the use of this advanced form of technology in delivering their services. The researcher is therefore examining the effect of this technology in the field of quantity surveying and how it affect cost, labour and time.
Quantity surveying as a profession has been around since the 1820’s. Since the beginning the roles and duties of a Quantity Surveyor have changed a lot. There have been many challenges that the profession had to face and overcome in the past. The latest challenge that the profession of quantity surveying are facing is an acronym consisting of three letters: BIM. Building Information Modeling is most likely the biggest challenge that Quantity Surveyors had to face since the beginning of the profession. If BIM threatens to replace the Quantity Surveyor, how should Quantity Surveyors in Nigeria handle the embrace of BIM? Do you fight or join?
Other problems include incompetence in the use of the ICT as follows;
Inefficiency
Low profitability
Low quality production
Poor management of business process
Poor supply chain management
Inability to satisfy client needs
Increased cost of business process
Lack of standardization.
1.3 AIMS AND OBJECTIVES
1. To examine technology (BIM) and quantity surveying profession.
2. To examine the role of building information modeling (BIM) on quantity surveying practice.
3. To identify the effect of quantity surveying and cost management methods and tools in surveying.
4. To examine how technology affects cost, labour and time in the field of quantity surveying.
5. To examine the factors limiting the use of technology in the field of quantity surveying.
- RESEARCH QUESTIONS
1. Does technology (BIM) improve quantity surveying profession?
2. What are effect of quantity surveying on cost management methods and tools in surveying.
4. How does technology affects cost, labour and time in the field of quantity surveying?
5. What are the factors limiting the use of technology in the field of quantity surveying?
1.6 SIGNIFICANCE OF THE STUDY
The construction sector contributes significantly to the GDP of a nation. In developing countries such as Nigeria, construction contributes up to 12 to 14 percent of GDP (Gann, 2000). In the developing countries (according to Dharwadker, 1979) investments in construction projects could be as high as 50 to 60 percent of national budgets.
In Nigeria, the construction industry was the dominant contributor to the nation‟s GDP in the 1980s, accounting for about 70 percent of the GDP (Planning committee on the National Construction Policy, 1989). This made the industry very strategic to Nigeria‟s development efforts. Unfortunately, however, the industry has been bedeviled by a combination of low demand and consistent low productivity and poor performance over the years (Manshued et al 1994; Olomolaiye, 1987; Aniekwu, 1995; Okuwoga, 1998; Adeyemi et al, 2005). This has reduced its contribution to the national economy to a mere 1 percent of the GDP in 2002 (AFDB/OECD, 2004). The industry is made up of an organized formal sector and an unorganized informal sector. The formal sector comprises small, medium and large scale according to their level of capitalization and annual turnover.
The few large firms (mostly foreign), which constitute just about 5 percent of the total number of contractors in the formal sector, control about 95% of the construction market, giving the small firms just about 5 percent share of the market. The results of this study will impact the Nigerian construction industry in the following ways;
Delineate the ICT application areas and the level of adoption.
Highlight the benefits of ICT application in construction at the strategic, tactical and operational levels.
Serve as a guide to construction organizations in the area of the cost of ICT adoption (both direct and indirect cost); and the risks involved.
Research and development.
- The outcome of this study will educate the stakeholders in the quantity surveying profession on the effect of technology in the field of quantity surveying with particular focus on how it affects cost, labour and time.
- This research will be a contribution to the body of literature in the area of the effect of personality trait on student’s academic performance, thereby constituting the empirical literature for future research in the subject area.
1.7 SCOPE OF THE STUDY
This study will cover the effect of technology use in the field of quantity surveying and how it affect cost, labour and time of the project.
1.8 LIMITATION OF STUDY
Financial constraint– Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
Time constraint– The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.
1.9 DEFINITION OF TERMS
Quantity Surveyor: The quantity surveyor is the person responsible for figuring out just what a construction project is going to cost. Quantity Surveyor is an expert that is concerned with financial probity in the conceptualization, planning and execution of building, civil and heavy engineering projects.
Building Information Modeling : Notwithstanding Schwegler (2001) definition of BIM (as the process of creating an information database for a project in which lifecycle information is expressed in an interoperable manner to create, engineer, estimate, illustrate and construct a construction project), BIM means different things to different people.
Cost Based Information Systems: In this work, cost based information systems are the information systems that store cost based information. While information systems process information in the same way (according to their classification), the information they process provides an insight into what they are called.
Times Overruns: Time overruns is defined as the extension of time beyond planned completion dates traceable to the contractors.
Cost overruns: Cost overrun is defined as excess of actual cost over budget. Cost overrun is also sometimes called “cost escalation,” “cost increase, or “budget overrun.” Cost overrun is defined as the change in contract amount divided by the original contract award amount.
Direct Labour Project Evaluation: Direct labour system is a method whereby the client design and produces his project by himself with the aid of his in-house professionals‟ void of the usage of contractors (Ogunsanmi et. al., 2003; Kadiri and Odusami, 2003).
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