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THE CHANGING ROLE OF QUANTITY

SURVEYORS IN THE PROCUREMENT PROCESS


Presented By;
QS. BOLA-EFE ITSEKOR M. (MNIQS, RQS,
CT)
Lecturer; Quantity Surveying Department, Federal Polytechnic Nekede, Owerri
& Principal Partner/Consultant; Bolinkz AEC Consults Nig
E-mail – bitsekor@fpno.edu.ng

Paper Presented at the 2-Day Workshop on Retaining Relevance in a Fast


Changing World
What Quantity Surveyors Need to Do?

Organized by: The Nigerian Institute of Quantity Surveyors, Ebonyi State Chapter
22nd -23rd June 2023
PAPER STRUCTURE

 The Concept of the procurement process in the Construction Industry as against the

misconception of the generic procurement term.

 The Role of the Quantity Surveyor as a Construction Procurement Expert

 Changes in the construction Procurement Process

 What has caused these changes

 How can the Quantity Surveyor utilize these changes to his benefits
WHAT IS CONSTRUCTION PROCUREMENT?
 Olanrewaju and Anavhe (2015) observed that there are proliferations of definitions for the term

procurement, even within the construction sector. This shows that there is great and urgent need

to separate the generic idea of procurement and the peculiar concept of procurement in the

construction sector.

 Construction Procurement is seen as the entire processes and activities involved in the delivery of

the built facility from the point a client decides to build/construct to when the facility is in

operation. (From pre contract to post contract)

 This shows that the procurement processes for a project, ranges from planning, designing as well as

construction or maintenance of a project. It involves the entire framework in which development

projects are designed, financed, constructed, used, transferred and residual disputes resolved.

 It entails the entire gamut involved or undertaken from the formulation of project team, to

establishing responsibilities, execution and managing of the project to completion.


ELEMENTS OF THE PROCUREMENT PROCESS

They are four (4) basic Key elements/activities that are carried out under the construction procurement

process;

 Selecting an appropriate Procurement Strategy

 Deciding on a suitable Contract Selection/Strategy

 Adopting a Tendering framework

 Contract Administration

It should be noted that whichever decision made on the procurement method will have a corresponding

effect on the choices of contract form to be used, tendering route to apply and how the entire contract is to be

administered. Thus, great care is to be taken when making decision on any of the mentioned elements.
SELECTING AN APPROPRIATE PROCUREMENT STRATEGY
This could also be referred to as procurement routes or methods. The three main routes/methods are
the Traditional, Design and Build and Management Based Procurement Methods.

Traditional procurement method

 Based on Bills of Firm Quantities


 Based on Bills of approximate quantities
 Based on drawings and specification
 Based on a schedule of rates
 Based on cost reimbursements

Design and build procurement is the contractual


arrangement where design and construction parts are
provided under a single entity. This method simplifies
all the links between parties of the project to the
main contractor, who takes all responsibilities for
design and building of the project.

Design & Build procurement method


SELECTING AN APPROPRIATE PROCUREMENT
STRATEGY
Management Based Procurement Method

There are basically two forms of management based procurement; Management Contracting
and Construction management.
The common features of these procurement strategies is
that the manager is chosen specifically because of its
experience or reputation for being able to manage the
construction process, rather than for its construction
experience. The manager normally does not undertake
any of the design or construction of the project.

Other Procurement Strategies includes the Government Procurement Routes PPP/PFIs, Joint Ventures,
Alliance etc.
DECIDING ON A SUITABLE CONTRACT SELECTION/STRATEGY
The Procurement strategy primarily chosen, will often affect the selection of the type of contract form
that could be applied in any given procurement process.

The selection of contract type to be used for a construction project is usually made taking into account
the objectives and constraints that might relate to the project, with a thorough consideration of the scope
and the nature of the project.
Various standard form of contract exist

JCT Contracts (Joint Contract Tribunal)


 JCT Standard Building Contract – SBC-Q, SBC-XQ and SBC-XA
 JCT Design and Build Contract (DB)
 JCT Management Building Contract (MC)
 JCT Construction Management
 JCT Prime Cost Building Contract (PCC) ETC
Association of Consultant Architects’ Form of Building Agreement
CIOB Contracts
ICE Contracts
FIDIC Conditions of Contract
The Engineering and Construction Contract

For most projects, the selection of procurement route to meet the Employer’s needs will limit the available
choices of standard form to be considered and even the mode of tendering to apply that’s why in most situations,
procurement and contract selection will be considered simultaneously.
QUESTION
 The former governor of Ebonyi state approached you with a set of complete working

drawings & specifications with soil report showing firm substructure strata for a

proposed World class multi-purpose community civic centre to be built in his Home

Town within the next 10 months.

 As a QS, Advice him on the best cost effective Procurement routes to adopt, contract

forms to apply and tendering framework to apply.


CONSTRUCTION PROCUREMENT & THE QUANTITY SURVEYOR

The principal of the construction procurement process is supposed to be the sacrosanct role/responsibility
of the Quantity Surveyor. However, in recent time especially in Nigeria, this position has been threatened
by other professions under the guise of conniving nomenclature, thus breeding incompetence in the
process and further de-marketing the Quantity Surveying Profession.

 Oke and Ogunsemi (2012) noted that professional quantity surveyors in Nigeria have all the

necessary education, tutoring and training to perform several other functions listed as core

and optional competencies in which procurement management is one.

 It was stated that quantity surveyors in Nigeria possess requisite skills, education and training

to ensure provision of value for money for clients of various construction works.

 Terry (2001) corroborated that procurement management was one out of the five most important

competencies currently required of and also of future importance to quantity surveyors

 Oke et al (2017) opined that the training and education received by the quantity surveyors as indicated by

the course contents of the institutions revealed that professional quantity surveyors possesses the required

knowledge areas of procurement manager.


CHANGING ROLE OF THE QUANTITY SURVEYOR IN THE
PROCUREMENT PROCESS

o Bello & Iyagbe (2013) submitted that the evolution of the internet has led the world into
electronic (e) information sharing, transactions, interactions and communication with global
connection of millions of users adopting the internet resources for different needs including
procurement of construction products. This has led to the recent change in the construction
procurement process, thus given birth to the concept of E-procurement in the construction
industry.

 According to Akinola & Oguntimehin (2023), in the past few decades, e-procurement system
adoption to acquire construction products and services has increased significantly around the
globe.

 Duncan (2011) defines E-procurement as the transition from traditional paper-based procurement
to a more integrated and digital process, he refers to E-Procurement as the use of electronic
tools and systems to increase efficiency and reduce costs during each stage of the procurement
process.

 Aduwo (2017) submitted that notwithstanding the growing body of knowledge on e-procurement
use in the procurement of building and infrastructure projects, the extent of its adoption in the
Nigerian construction industry is not clearly understood.
E-PROCUREMENT PROCESSES
E-procurement processes to include

E-Notification/E-Announcement/E-informing,
E-Tendering,
E-Bidding,
E-Submission,
E-Awarding,
E-Sourcing,
E-Ordering,
E-Tracking,
E-Exchange and
E-Payment.
E-TENDERING

This involves converting all the appropriate forms, documents and drawings into suitable
electronic format which may then be uploaded onto a server. Tenderers will then be
provided with the necessary information to allow them to access the server and
download the documentation.
TOOLS & TECHNOLOGIES FOR VARIOUS E-PROCUREMENT
PROCESSES

E-Procurement Process Technologies/tools that can be used

YouTube/Facebook/Twitter
Instant messaging

E-Notification/ E-Announcement/E-informing Internet-supported fax


Web blogs
Voice on Internet Protocol
Webcasting
e-mail
Web portal
Microsoft share box
E-Tendering
Drop box
IBM Emptoris
SAP Ariba
e-mail
Project portal
E-Submission Websites
Internet Base system
Cloud based Application
e-mail
Websites
E-Awarding Project portal
Internet cloud Base system
Web-based EDI

e-mail
Company/suppliers website
E-Sourcing
Electronic Data Interchange
e-Market place
Voice on Internet Protocol

e-mail
E-Catalogues

E-Ordering e-Market place


Web-Supported EDI
Inter based GIS
e-Reverse Auctioning

Web-based BIM Technology


Internet supported Project Camera
E-Tracking
Web-Supported Management software
Web-based Multimedia Technology
Laser Distance and Ranging Technology
TOOLS & TECHNOLOGIES FOR VARIOUS E-PROCUREMENT PROCESSES

Google Docs
e-mail
E-Exchange
Web portal
Web-based EDI
Microsoft share point

Electronic Fund Transfer


E-Payment
Credit card
Sap system

Furthermore available construction procurement softwares available for E-procurement include;


•Archdesk
•Tradogram
•4castplus
•Trimble
•Procore
•Medius
•Ivalua
•IBM Emptoris
•SAP Ariba

In a bid to encourage e-procurement, In 2012, the Nigerian government launched a software known
as Procure 1.0 and directed that all ministries, departments and agencies (MDAs) to patronize
the made-in-Nigeria software to further encourage indigenous software development (News Agency of Nigeria, 2012)
BENEFITS OF E-PROCUREMENT SYSTEMS
According to Duncan (2011), the perceived benefits of electronic procurement include the
following:
 Efficient and effective electronic interfaces between suppliers and civil central
governments, departments and agencies, leading to cost reductions and time saving on
both sides.

 Quick and accurate pre-qualification and evaluation, which enables automatic


rejection of tenders that fail to meet stipulated ‘must have criteria’.

 A reduced paper trail on tendering exercises, saving costs on both sides and improving
audit.

 The provision of quality assurance information – e.g. the number of tenders issued,
response rates and times.

 Quick and accurate evaluation of tenders.

 The opportunity to respond to any questions or points of clarification during the


tendering period

 Reduction in the receipt, recording and distribution of tender submissions.


REASON WHY THE QS SHOULD JUMP ON E-PROCUREMENT

 Despite the perceived benefits of the E-Procurement system, Oyediran & Akintola (2011)
established that its awareness among construction industry professionals is still average,
they however, observed that despite the ambivalent disposition of industry professionals
towards e-procurement, the prospect of its adoption in the Nigerian construction
industry is high.
CONCLUSION

 From the foregoing, it is evident that the new frontiers in the construction industry will be
unveiled by the use of Information Communication and Technologies (ICTs) and the future of
the Quantity Surveyor being the leader of the procurement process in the construction
industry relies heavily on its adaptability and willingness to evolve with industry change and if
this is to be achieved; there is a need for cultural change and attitudinal development of the
quantity surveying profession in the use of E-Procurement systems in the construction
procurement process.

 This calls for massive awareness campaigns by Quantity Surveying professional body by
organizing regular training workshops on e-Procurement and special training as part of its
Continuous Professional Development (CPD) programmes for members.

 The Quantity Surveyor must have to align to the changes occasioned by the evolution of
computer based procurement so as to stay relevant as there’s no doubt that the future for all
construction professionals and the Quantity Surveyor in particular relies so much on the global
digital economy.
THANK YOU FOR
LISTENING
QS. BOLA-EFE ITSEKOR M. (MNIQS, RQS, CT)
Lecturer; Quantity Surveying Department, Federal Polytechnic Nekede, Owerri
& Principal Partner/Consultant; Bolinkz AEC Consults Nig
E-mail – bitsekor@fpno.edu.ng

THE CHANGING ROLE OF QUANTITY SURVEYORS IN


THE PROCUREMENT PROCESS

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