Quantity surveying contracts are complex legal documents that outline the scope of work, fees, and payment terms for a construction project. Mistakes in these contracts can lead to disputes, delays, and cost overruns. This article will discuss the 10 most common mistakes to avoid in quantity surveying contracts.
The key points are:
- Have a written contract that clearly outlines the terms of the agreement.
- Include all of the terms of the agreement in writing and in the contract.
- Have good accounting practices in place to track costs and expenses.
- Create accurate budgets for construction projects.
- Use construction estimating software to collaborate on jobs.
- Get written approval of any changes to the contract.
- Use clear and concise language in the contract.
- Include all mandatory disclosures.
- Conduct a site visit and accurately measure the project.
- Assess risks and build in contingencies to the estimate.
By avoiding these common mistakes, quantity surveyors can minimize the risk of problems and ensure that their clients satisfaction with their services.
Quantity Surveying Contracts – Common Mistakes to Avoid
Quantity surveying contracts are legal documents that should be carefully drafted and reviewed by both parties before signing. However, even the most experienced quantity surveyors can make mistakes. Here are some of the most common mistakes to avoid in quantity surveying contracts:
1. Not having a written contract that clearly outlines the terms of the agreement.
A written contract is essential for any construction project, but it is especially important for quantity surveying contracts. A written contract protects both the client and the quantity surveyor by clearly outlining the scope of work, fees, payment terms, and dispute resolution procedures. Without a written contract, it can be difficult to resolve disputes if they arise.
2. Failing to include all of the terms of the agreement in writing and in the contract.
It is important to include all of the terms of the agreement in writing and in the contract. This includes the scope of work, fees, payment terms, dispute resolution procedures, and any other relevant information. This will help to avoid disputes and misunderstandings down the road.
Here are some specific examples of the types of terms that should be included in a written contract:
- Scope of work: This should clearly define the tasks and services that the other party is responsible for providing.
- Fees: This should specify the amount of money that you will be paying the other party, as well as how and when payments will be made.
- Payment terms: This should specify how long the other party has to pay you for your services, as well as any late payment fees that may apply.
- Dispute resolution procedures: This should specify how any disputes between the parties will be resolved. This may include arbitration, mediation, or litigation.
- Any other relevant information: This could include things like confidentiality provisions, termination clauses, and force majeure clauses.
It is important to note that a contract does not have to be a formal document. It can be as simple as an email exchange or a handwritten agreement. However, it is important to make sure that the contract is signed by both parties and that it clearly states all of the terms of the agreement.
3. Poor accounting practices.
Quantity surveyors need to have good accounting practices in place to track costs and expenses. Poor accounting practices can lead to inaccurate estimates and disputes. It is important to keep accurate records of all costs and expenses associated with the project. This will help to ensure that the project stays on budget.
4. Inaccurate budgeting.
Accurate budgeting is essential for any construction project. Inaccurate budgeting can lead to cost overruns, delays, and even project failure. Quantity surveyors play a critical role in developing accurate budgets for construction projects.
Quantity surveyors need to carefully consider all of the costs associated with the project when creating a budget. This includes the following:
- Materials: The cost of materials can vary depending on the type and quality of materials used, the availability of materials, and the cost of transportation.
- Labor: The cost of labor will vary depending on the type of labor required, the skill level of the workers, and the prevailing wage rates.
- Equipment: The cost of equipment will vary depending on the type of equipment required, the rental or purchase price of the equipment, and the cost of transportation and operation.
- Other expenses: Other expenses may include the cost of permits, insurance, and professional fees.
In addition to the above costs, it is important to build in a contingency to the budget to cover unforeseen expenses. Unexpected events, such as bad weather or material shortages, can occur during any construction project. Having a contingency in place can help to mitigate the impact of these events on the project budget.
5. Not using construction estimating software to collaborate on jobs.
Construction estimating software is a valuable tool for quantity surveyors. It can help them to create accurate estimates, collaborate with other members of the project team, and save time.
Here are some of the benefits of using construction estimating software:
- Accuracy: Construction estimating software can help quantity surveyors to create more accurate estimates. The software can automate the process of calculating costs, which reduces the risk of human error. The software can also track changes to the estimate in real time, which helps to ensure that the estimate is always up-to-date.
- Collaboration: Construction estimating software can help quantity surveyors to collaborate with other members of the project team. The software allows users to share estimates and to make changes to estimates in real time. This can help to improve communication and coordination between the different members of the project team.
- Time savings: Construction estimating software can help quantity surveyors to save time. The software can automate many of the tasks involved in creating and managing estimates. This frees up quantity surveyors to focus on other tasks, such as providing advice to clients and managing project budgets.
Overall, construction estimating software is a valuable tool for quantity surveyors. It can help them to improve their accuracy, collaboration, time savings, cost savings, project management, and profitability.
6. Failing to get written approval of any changes to the contract.
Any changes to the contract must be approved in writing by both the client and the quantity surveyor.
Getting written approval is important for a number of reasons:
First, it helps to avoid disputes. When changes are made to the contract verbally, there is always the potential for misunderstandings. Having a written record of the change can help to resolve any disputes that may arise.
Second, written approval helps to protect the quantity surveyor from liability. If a change is made to the contract without the quantity surveyor’s approval, the quantity surveyor could be held liable for any cost overruns or delays that result from the change.
Third, written approval helps to document the change and its impact on the cost and schedule of the project. This is important for both the client and the quantity surveyor. The client can use the documentation to ensure that they are getting what they are paying for, and the quantity surveyor can use the documentation to manage the project effectively.
7. Using confusing, inconsistent, or unclear language in the contract.
The contract should be written in clear and concise language that is easy to understand for both the client and the quantity surveyor. Confusing, inconsistent, or unclear language can lead to disputes and misunderstandings. It is important to have the contract reviewed by a lawyer before signing it to ensure that the language is clear and unambiguous.
8. Not including mandatory disclosures.
The contract should include all mandatory disclosures, such as the quantity surveyor’s fees, insurance information, and any potential conflicts of interest.
Some common mandatory disclosures are:
- The quantity surveyor’s fees
- The quantity surveyor’s insurance information
- Any potential conflicts of interest
- The quantity surveyor’s qualifications and experience
- The scope of work that the quantity surveyor will be performing
- The payment terms for the quantity surveyor’s services
- The dispute resolution process
Why are mandatory disclosures important?
Mandatory disclosures are important because they help to ensure that the client is fully informed about the contract and the quantity surveyor’s services. By having all of the necessary information in writing, the client can make a more informed decision about whether or not to enter into the contract.
Mandatory disclosures also help to protect the quantity surveyor from liability. If a dispute arises between the client and the quantity surveyor, the mandatory disclosures can help to demonstrate that the client was fully informed about the contract and the quantity surveyor’s services.
9. Failing to conduct a site visit and accurately measure the project.
Conducting a site visit and accurately measuring the project before creating an estimate is important for a number of reasons.
First, it helps to ensure that the estimate is accurate. By visiting the site and measuring the work that needs to be done, the quantity surveyor can get a better understanding of the scope of work and the site conditions. This will help to prevent inaccurate estimates, which can lead to cost overruns.
Second, conducting a site visit and accurately measuring the project helps to identify any potential problems or challenges early on. This will allow the quantity surveyor to make adjustments to the estimate as needed and to develop a plan to mitigate any potential risks.
Third, conducting a site visit and accurately measuring the project helps to build trust with the client. By demonstrating that they are taking the time to understand the project and the client’s needs, the quantity surveyor can build trust and confidence with the client.
10. Failing to assess risks and build in contingencies to the estimate.
Quantity surveyors play a vital role in construction projects by estimating costs and managing risks. One of the most important things a quantity surveyor can do is to assess risks and build in contingencies to the estimate. This helps to avoid unpleasant surprises and ensure that the project stays on budget.
Some of the risks that quantity surveyors need to consider include:
- Unforeseen site conditions: Subsurface conditions, such as rock or groundwater, can be difficult to predict and can add significant costs to a project.
- Bad weather: Severe weather conditions, such as hurricanes and floods, can delay construction and increase costs.
- Material shortages: Material shortages can occur due to a variety of factors, such as supply chain disruptions or natural disasters.
- Labor disputes: Strikes and other labor disputes can also delay construction and increase costs.
- Changes in scope: Changes in the scope of work can occur during the course of a project, which can also lead to cost overruns.
To assess risks, quantity surveyors can use a variety of methods, such as risk registers and historical data. Once the risks have been identified, quantity surveyors can develop mitigation strategies and build in contingencies to the estimate.
Contingencies are allowances that are added to the estimate to cover unforeseen costs. The amount of contingency that is built into the estimate will depend on the level of risk associated with the project. For low-risk projects, a contingency of 5-10% may be sufficient. For high-risk projects, a contingency of 10-15% or more may be necessary.
By assessing risks and building in contingencies to the estimate, quantity surveyors can help to ensure that the project stays on budget and that the client is not faced with any unexpected costs.
Conclusion
It is important to avoid the common mistakes listed above in order to keep a project on track, avoid disputes, and ensure that both parties understand the terms of the agreement clearly. By following these tips, quantity surveyors can minimize the risk of problems and ensure clients satisfaction with their services.