QS Consultant Firm: Vision about the Innovation and Management of IT in the Construction Industry
Anati Zawani bt Rahmat
2009711645
Msc. in Integrated Construction Project Management
Computers have revolutionised the way documents are generated. Similarly, Information Technology (IT) is bound to revolutionise the way people exchange information and documents. According to Bjork (1999), IT is defined as “the use of electronic machines and programs for the processing, storage, transfer and presentation of information”. IT encompasses many technologies such as computers, software, networks and even telephones and fax machines.
The purpose of IT is to facilitate the exchange and management of information and has a lot of potentials for the information process component of the construction industry. These recent technologies undoubtedly have a profound impact on how organisations operate on a daily basis.
IT has become a major factor in world business. It has become widely accepted that IT including internet-based information systems are playing a vital and expanding role in business. IT can help all kinds of business improve the efficiency and effectiveness of their business process, decision making and managing information, thus creating a competitive environment in business.
The construction industries are starting to consider seriously the strategic use of IT. The use of IT in construction is extending beyond the stage of piecemeal application for improving the efficiency of discrete operations by individual organizations to the advanced stage where IT is applied strategically in commercial enterprises, government agencies and professional institutions.
Progress in construction in this regard appears to lag behind that in most other sectors of the economy. The evaluation of IT is a perennial problem for businesses as they seek to improve their performance and sustain a competitive advantage. While businesses are increasing their expenditure on technology to keep abreast of competitors, organisations in the construction industry have become ‘technological laggards’.
The need for improved implementation of IT is very important. This problem is magnified in the construction industry, which has been slow to embrace and utilise new technologies with negative consequences on productivity and innovation. According to Betts (1999) “the successful implementation of new and innovative IT in construction requires the development of strategic implementation plans prior to IT project commencement”.
Therefore, in order of the construction industry to keep abreast with other sectors, all organizations involved in construction will ultimately has to think strategically about their use of IT.
Innovation and Management of IT in QS Consultant Firm
The last twenty years have seen dramatic improvements in and widespread use of IT to describe and document the work of the many disciplines involved in construction projects. Today, practically all project information is entered into software tools or generated by computer programs and is represented in the many different formats used by the many disciplines involved in a project. The software tools tend to be general purpose tools like spreadsheet and text processing software or specialized, discipline-specific tools like mechanical CAD programs or cost estimating software.
Cost estimating is an essential aspect for the business operation of QS consultant firms. Construction is a unique industry that by nature is risky since most projects must be priced before they are constructed, whereas in other industries the selling price is based on known manufacturing costs. The success or failure of a project relies on the accuracy of several estimates done throughout the course of the project.
Estimating is an important process in order to prepare cost estimating for a proposed project. Cost estimate will give client an overview towards the total cost needed to be spent based on design. Due to the importance of the cost estimate for a proposed project, the utilization of computer to prepare cost estimate should therefore be practiced. The entry of computer technology in the estimating practice is a major event in the improvement of the traditional estimating method by reducing estimate preparation time, reducing the amount of paperwork required for the conventional data storage, and improving the quality of documentation.
Generally, the usage of general use packages including Microsoft Excel and Microsoft Word were more popular than the usage of specialist Quantity Surveying packages in Quantity Surveying profession. Microsoft Excel was the most frequently used IT tool and it dominated the QS tasks including drawing management, cost estimation, and valuating of variation, etc. It was found that Microsoft Word and Microsoft Excel dominated the word processing and spreadsheets software in the firm.
The advent of the relatively powerful and economical computer technology has realistically made the computer-aided estimating become feasible. The number of estimating products increased rapidly since the entry of an interactive computing system into the market. Accompanied with the emergence of estimating software, advance in the database management system has significantly influenced the development of computer-aided estimating software.
On the development of computer software and application, more and more complete, reliable and easy to use software was produced. More and more specific and specialized software for construction industry were being produced and being introduced to the industry.
There is a large number of estimating software available to the construction industry. Yet computer programs encompass a significant portion of computer software that is prepared by the process known as programming. Andrian (1993) defined programming as being a prepared set of computer instructions that provides the mode of solving a specific problem. These programs are available to perform complex pricing, estimating, and analysis functions. It is difficult to generate overall ground rules of thumb for computer software cost estimating because of the increasing number and types of computers and computer languages (Steward, 1982).
In general, the available estimating programs in the market typically require few days of training to get familiar with and to operate. Additionally, if other functions are to be tied into the estimating process then a modular package is required and in this case the training time span will extended. Software developers have designed computer programs to meet the needs of a specific industry. Since industry programs are developed for a specific business or industry, they are referred to as the vertical market, because they are sold to one business type rather than many.
Andrian (1993) stated that Masterbill, Builds Soft, and Ripac are a few of many industry programs. Some other computer application aid in improving the efficiency and accuracy of the construction estimating process, such as Computer Aided Design (CAD) application, math Conversion applications, Database applications, and simulation applications.
Masterbill 3 (MB3)
MB3 is being developed by Masterbill Micro System Ltd. It is one of the leading software for QS in Malaysia
Ripac For Microsoft Windows
Ripac dominates the world market for QS software. Ripac is produced and supported by CSSP, an international software house specializing in construction solutions. Ripac is used by Quantity Surveyor for quantities measurement, tender analysis, contract administration and management (CSSP, 2002). Every measurement with Ripac will simultaneously create a database from which every calculation, every analysis, every report can be produced for pre and post – contract administration without recreating data. Ripac gives QS the power to integrate all their activities at pre and post contract stages, maximizing the productivity of their resources and increasing the range of their services. Ripac can do the following process comprehensively:-
a. Bill preparation
b. Estimating
c. Tender appraisal
d. Payments
e. Cost reporting
f. Final accounts
Builds Soft
Global Estimating is an estimating program that has been tailored for commercial use in the building and construction industry. It produces Bills of Quantities or detailed Estimates and Cost Plans. Designed primarily for use by commercial building contractors and professional Quantity Surveyors it includes features which allow it to be used in other industries where estimating is required. Information that is entered into the program can be re-sorted or analysed by the use of powerful grouping columns. For example, the estimate can be summarised to produce totals by area, block, stage, cost centre, accounting group, or any user defined set of codes.
The four level estimating system has proven to be very successful and simple for the first time user. There are four estimating sheets that are very similar to manual estimating methods currently used.
a. Level 1 - Job Summary
b. Level 2 – Element/Trade Breakup
c. Level 3 - Calculation Sheet
d. Level 4 - Rate Breakup Sheet
The main purposes of using computer software are to save time and reduced error for double-handling work while maintaining the accuracy of cost estimate. The time saving will subsequently generated in cost saving as the companies can save on resources (particularly salary and office overhead) spend on each project. Besides that, it also increase the efficiency and motivation of estimator as he no longer needs to got through long, tedious and repetitive tasks.
A research by Chong (2001) found that the most important factors that affect the cost effectiveness of the specific software are:-
a. Reliability of software
b. User-friendliness
c. Sufficient feature of the software
d. Maintenance
e. Number of computers
These factors plays a big part in determining whether a software success or not.
In order to achieve the effectiveness of the specific software, Quantity Surveying Firm most likely to use external consultants to advice them on IT matters. Also the Quantity Surveying Firm always uses external specialists to install IT. This shows a degree of confidence within firms to identify and decide what IT is required but they have less confidence about installing the chosen solutions.
Conclusion
It is clear that IT have the potential to improve processes and solve specific problems in the construction sector. IT represents a paradigm shift with respect to the transfer and management of information. This shift has come about recently and has occurred very quickly. There are a number of innovative IT applications currently emerging. IT and computers are now an integral part of the day to day business within most of the construction industry.
In the current context of a global and borderless economy, IT appears to be one of the most important tools in achieving competitive advantages in every sector including construction. The capability of computing technology commonly used by business and the public has changed significantly.
Nowadays, IT is currently being used extensively by these firms and that their use of IT is likely to continue and increase in the future. The technological innovation has positively impacted on the quality of quantity surveying services in the country. In addition, it could have enabled (aided) the firms to meet the high expectations of the client.
The advent of IT has been both beneficial and detrimental. The main benefits achieved by the use of IT is an increase in the quality of documents, an increase in the speed of work, a better financial control, better communications, simpler and faster access to common data as well as a decrease in the number of mistakes in documentation. However, the benefits of IT come at a cost since the complexity of work, the administrative needs, the proportion of new operations and the costs of doing business have all increased. Furthermore, the continual demand for upgrading hardware and software, the high investment costs and the greater know-how required from the staff are perceived as important obstacles to a greater use of IT.
Technology will enable almost everything. However, one thing is certain in this rapidly changing environment, technology exposed today will be overtaken by the events of tomorrow. The emergence of new and more developed technology will continue so that we cannot stay for a long time on the same platform. Therefore, deciding on how best to apply it is the critical decision to make.
References
Betts. M., (1999) Strategic Management of IT in Construction. Blackwell Science, UK
Bjork B.C., (1999). Information Technology in construction: domain definition and research issues, International Journal of Computer Integrated Design and Construction, SETO, London
Chong W.P., (2001). Mereka Bentuk Perisian Kos Rendah (M.S. Excel) Untuk Pengukuran Kuantiti. University Technology of Malaysia
CSSP (2002). CSSP Company Overview : Trade Brochuer.
Steward, R.D., (1982). Cost Estimating. John Wiley and Sons
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