QUANTITY SURVEYING & PROCUREMENT COST MANAGEMENT OF CAPITAL PROJECTS -'THE NEW WAY'
INTRODUCTION
Delivering a capital project from start to finish is complex and challenging. It requires careful planning, monitoring and execution.
Projects fail because some aspect of procurement seemingly thought to be insignificant are left out of planning and by the time the execution processes set in, these aspects blow up to be major issues leading to project failure.
It is not uncommon for clients and even uninformed professionals to look at capital project in terms of procurement of goods and services especially procurement of finished products which could be procured on the shelf.
While capital projects procurement achieve on the long run, the same objective as procurement of finished products, the procurement processes is quite complicated, time consuming and requires more planning and execution processes.
It is also not uncommon for the uninformed public at large to define construction procurement in terms of what happens at construction sites and viewing procurement in term of the construction stage alone; but site construction is only the mid point in the processes and probably account for less than 30% of the overall time incurred in achieving that process.
While the legal and financial implication of procuring finished goods and some services are clear and straightforward, same cannot be said of procurement of capital projects.
The legal aspects of procurement of Capital projects is complicating and continuously changing. Various bands of laws (contractual and common) are involved with various trade customs and practices.
In the last 18 months the Construction industry has to digest and implement two major legal documents published and signed into operation by the government.
These are:
(1) The New Building Code
(2) The Procurement Act 2007
Also a new bill on road maintenance is being proposed and may be committed for debate soon by the National Assembly.
While the Procurement Act 2007 contains some anomalies that need to be looked into and corrected, the National building code seems to have taken into consideration all current problem areas. Nonetheless the code needs to be vigorously tested by putting it into practice.
Also, the ever changing money laundry law and the EFCC Acts have impacted the capital project procurement processes. Consultants and Contractors have some obligations in these laws to report some activities of their clients on project funding.
All the above issues on the long run translate to Cost and Finance with the resultant effect of having to deal with new ways of achieving result and ensuring that the client gets value for his money.
It is in this light that The Nigerian Institute of Quantity Surveyors is organising a two day workshop to examine all the above issues and others relating to procurement of Capital Projects with the theme QUANTITY SURVEYING & PROCUREMENT COST MANAGEMENT OF CAPITAL PROJECTS -'THE NEW WAY' and following sub themes:
(1) Exploring the New Procurement Act 2007 – The salient issues
(2) The Building Code and the Procurement planning process
(3) Earned Value analysis of Capital project
(4) Capital projects budgeting and value measurement of Government expenditure
(5) The QS and Cost and Value management of Capital projects
(6) The New Standard form of Contract JCT 2006 or (JCT CE ) and the New way to successful procurement route
(7) Planning & Scheduling effective tool in Construction procurement
(8) A Review of the various procurement methods
(9) A Review of the QS roles in the New Building Code
