SUPPLY AND DEMAND ANALYSIS OF QUANTITY SURVEYING / CONSTRUCTION COST CONSULTANCY SERVICES IN INDONESIA
- Created: Sunday, 21 June 2015 02:16
- Written by M. Edwin Wiranegara, Ir. MM, IQSI, MAIPM, CPPM (Aus)
The functions of the Quantity Surveying / Construction Cost Consultancy Services are broadly concerned with the control of the cost on construction projects. The methods employed, however, cover a range of activities which may include cost planning, value engineering, feasibility studies, cost benefit analysis, lifecycle costing, valuation, and cost estimation. Some senior quantity surveyors are known as construction economists, cost engineers or construction managers. Quantity surveyors control construction costs by accurate measurement of the work required, the application of expert knowledge of costs and prices of work, labor, materials and plant required, an understanding of the implications of design decisions at an early stage to ensure that good value is obtained for the money to be expended. The technique of measuring quantities from drawings and specifications prepared by designers, architects and engineers principally, in order to prepare Tender/Contract Documents, is known in the industry as taking off. The quantities of work taken off typically are used to prepare bills of quantities, the which usually are prepared in accordance with a published standard method of measurement as agreed to by the QS profession and representatives of the construction industry.
Quantity surveying practices have had a presence in Indonesia since early 1970s, primarily serving the private construction sector plus the oil and gas industries. A decree of the President states that a pre-qualification system should be followed in tendering for consultancy work on government projects. The procedure is set out in the decree and a standard tender procedure has been added to the decree in a memorandum from the Minister of Public Works. Competition is important, especially on very large projects. In the private sector, the procedure is more flexible, but still follows the basic government rules. QS expertise in financial management of the project is required by developers (private and public), contractors, consultants, banks, insurances and other industries.
The growth of Indonesian construction industry now a days is getting faster since stagnation happened during monetary crisis in 1997 on then political turmoil on 1998 and a few years afterwards, so practically construction industry just commenced again and has a quiet significant progress on year 2002 onwards. As we known basically construction industry has some sub-sectors as consists as follows: Sub-sector of the Property (such as: all commercial buildings like the superblock, mixed use, offices, shopping mall / trade center, hotel, apartment, industrial estate and also residential also like housing, real estate); Sub-sector of Heavy Construction-Infrastructures (such as: bridge, dam, canal, road, highway, airport, harbor, ferry terminals, power plants, etc). Those above two sub-sector sometimes did not grew concurrently, all depends on some indicators like supply and demand in the market; government policy / protection system; situation on the global-regional-national economics and so on. Even though the cycle of construction of business investment would be able to show us that the amplitudes sometimes are high / peak and sometimes are low / through, thus during the monetary crisis considered as part of the cycle of the system but the level of amplitude was out of expected, the only things we have to do is to minimize the level of amplitude or as a business practices, we can do the suitable and relevant steps for the coming years in order to anticipate that the respective cycle.
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