The Importance of Standardized Method of Measurement in Quantity Surveying: Mitigating Risks and Ensuring Accuracy
7 Jul
In any construction project, having a standardized method of measurement is crucial for ensuring accuracy, consistency, and effective cost management. But beyond that, it also promotes a somewhat level playing field.
We’ve all heard of the effects of misalignment. The common jokes of a Contractor’s measuring tape being to a smaller scale than a client’s - or a client holding a measuring wheel off the ground so that it doesn’t register as many meters during a re-measure, whilst humorous, illustrate a valid point. In engineering, the result can be structures that don’t align - the Channel Tunnel comes to mind where the joining tunnels were actually 12 inches out of alignment in part owing to the fact that there was a mix of metric and imperial calculations; but the results can also manifest in financial exposure and catastrophe.
While a bespoke or ad-hoc approach might seem tempting, it carries inherent risks that can lead to discrepancies, disputes, and financial implications.
In this article, we will explore the significance of a standardized method of measurement, the risks associated with deviating from it, and specific concerns with reference to the Australian and New Zealand Standard Method of Measurement of Building Works (ANZSMM) that highlight the need for adherence.
The Significance of a Standardized Method of Measurement
A standardized method of measurement provides a common framework that establishes uniformity, consistency, and comparability in quantity surveying. It offers several key benefits, which include:
- Accurate Cost Estimation,
- A standardized method ensures that cost estimates are based on a common set of rules and principles,
- minimizing the potential for errors or inconsistencies.
Consistency and Comparability
Measurement from the same book, so to speak, enables stakeholders to compare and benchmark different projects, facilitating informed decision-making and enhancing transparency with minimal manipulation of data. It is therefore essential for any company working across multiple projects, or even markets, to understand how they arrive at, and perform against their costs.
Dispute Resolution, avoidance and Efficient Communication
Resolving a dispute can be an arduous process at the best of times. But things are all the more lengthened when the fundamental portions of the claim sit far removed from industry norms. A standardized approach acts as a reference point during disputes, reducing ambiguity and providing a fair basis for resolution. Simply put, it becomes much simpler to present and have understood, any claim - by making it as easy as possible for the parties involved in resolving it to quickly understand the dispute being presented.
Using a familiar standard instantly reduces the overhead in digesting a claim and eases its resolution; whilst minimising the risk of mis-diagnosis and assessment.
A common language of measurement further enables effective communication among project stakeholders, preventing misunderstandings and misinterpretation of scope. We have been involved in a somewhat remarkable number of instances where measurements in lump sum and schedule of rates tenders have been misconstrued. One of the parties later revising the base quantities within the confines of the contract often results in either a client facing a huge increase in prices which it hadn’t considered; or a Contractor suddenly facing vastly less revenue from the project for the same work. Instances which are easily avoidable if the parties have a harmonised approach and understanding to the basis of the pricing documents and measurements therein.
Risks of a Bespoke or Ad-Hoc Method of Measurement
While deviating from a standardized method might seem advantageous in certain scenarios, it introduces various risks that can have long-term consequences including inconsistencies and errors.
It is an extremely common approach for Contractors and Clients to measure the same scope of work differently - usually in a way that benefits their own cause either resulting in higher or lower quantities which of course bares a cost and time implication. The absence of a standard method of measurement referred to in the contract can mean that the contract is left silent on interpretation, or worse still, a non-standard approach might leave one party vulnerable.
A pre agreed regime will help minimise this however nominating an industry accepted standard will further assist in ensuring equity amongst the parties.
Ad-hoc methods lack a standardized structure, increasing the likelihood of inconsistencies, errors, and omissions in measurement and cost estimation which can prove ruinous to Client and Contractor alike.
A bespoke approach can lead to differing interpretations, disputes between parties, and delays in project execution. It may be clear in intent if read with a bias, yet still open to dispute. A complete lack of transparency can ensure which in turn makes it increasingly difficult to justify or verify cost estimates and project valuations or even understand and interpret the original intent of the basis on which a contract was produced.
Without adherence to a standardized method, it becomes challenging to compare project costs, making it harder to identify areas of improvement or cost-saving opportunities both on the project, across projects and across disciplines.
ANZSMM and Its Importance in Australia and New Zealand
In Australia and New Zealand, the ANZSMM serves as the recognized standard for measuring and quantifying building works. It provides a comprehensive framework that addresses various aspects which a quantity surveying department would be concerned with.
Two notable distinctions within the ANZSMM highlight its significance and potential risks associated with deviation:
a) Elemental Breakdown: The ANZSMM emphasizes the importance of an elemental breakdown of costs, ensuring that projects are broken down into distinct components for accurate measurement and cost control. Deviating from this breakdown can result in misallocated costs, leading to discrepancies and disputes.
b) Standardized Measurement Rules: The ANZSMM sets out specific measurement rules for various elements, such as dimensions, tolerances, and rounding. Straying from these rules can introduce inconsistencies, affecting cost estimates and jeopardizing project finances.
The ANZSMM serves as a valuable reference in Australia and New Zealand, emphasizing the need for adherence to maintain industry standards.
In Summary:
In short, a standardised approach fosters trust between the parties and reduces the temptaion of ad-hoc approaches to measurement that might offer short term or situational advantages to a party - whilst injecting long term turbulence and risk to a construction projects. A non-standard or worse still, un-established approach to measuring progress and final quantities on a project, can make or break a project financially and carry huge ramifications for an unexpecting Contractor.
