Quantity Surveying in New Zealand
Insights from Industry Leader Phil Hebden, Morden’s Commercial Director
Morden’s Commercial Director Phil Hebden shares the latest insights on trends and challenges facing New Zealand’s construction sector.
With 30+ years’ experience in the construction industry, Phil is frequently invited to speak at industry events. In 2021, his innovative contributions earned him international recognition along with Gene Turner of LawHawk.
The pair was jointly awarded the World Contracting and Commerce APAC Innovation Award for a subcontracting automation system. Phil was subsequently invited to spearhead a conference day focused on environmental and social governance (ESG) at the World CC Online Conference.
Experienced both on the contracting and the principal’s side, Morden’s Commercial Director Phil Hebden brings a wealth of expertise to his role.
Actively involved as a member of the Commercial Working group within NZ's Vertical Constructors Leaders Group, Phil’s ongoing efforts seek to tackle the enduring challenges affecting the country’s the construction sector.
“We want to acknowledge your outstanding contribution as both Engineers Representative and Quantity Surveyor.
You played a crucial role in establishing the necessary structure, systems, and processes to effectively administer the early works scope under the NZ3910 contact conditions. Your expertise and dedication were instrumental in ensuring the success of these important enabling works projects.
From a project perspective, the same elements of complexity that made the project a professional challenge also meant it has never been an easy one, but the calibre of the team, the professionalism and team spirit as we worked together to find solutions has been great to be part of. Thank you for your contribution to that.
Please know that your contribution has been appreciated by me personally.”
Challenges Facing New Zealand’s Construction Industry
Revisiting this document, he notes the bulk of the issues presented still persist today. From skills shortages to deficiencies in QS soft skills, from document quality concerns to market shifts and productivity challenges, the industry continues to grapple with the same obstacles.
In an industry with significant influence over New Zealand's GDP, contributing over 20%, there's ample reason and motivation to address these challenges. Enhancing efficiency and striving for resilience and sustainability are key; attracting new entrants and school leavers is crucial. The evidence we see shows change has not necessarily occurred. Why? Is it an attitude of if it’s not broken, don’t fix it? Is it too big an issue, with too many stakeholders? Is it that there is always someone prepared to take a risk, where others aren’t? Is it the nature of competitive tendering and the race to the bottom? People want to win a job and as a result, perhaps they are prepared to take more risks. Perhaps the issue is not that the industry has some very serious issues; perhaps the way construction work is procured on a lump sum fixed price is what is at fault.
That 2014 report also highlighted future issues, emerging specialist roles and additional competencies and skills QS professionals would need to acquire. Since then, with the emergence of AI among other new developments, a number of additional challenges have also appeared.
Reflecting on his industry experience, Phil recalls a paper presented at the NZ Built Environment Research Symposium in 2014, which outlined current and future challenges confronting QS in NZ.
1. The Emergence of Modern Technology
AI, data sharing, the use of measuring software such as CostX, the growth of the use of Building Information Modelling (BIM), and even advancements like drone surveying and 3D scanning have all become prevalent in the industry. For example, a drone flying over terrain utilising downward facing radar can scan sites and send data to a computer to calculate volume and quantities of cut and fill, saving time in manual calculations.
There is now augmented and virtual reality being used to assist in design and planning and helping to identify problems. For example, 4D programming software allows you to see the building being built as per the programme. Next it shows you a beam popping up in the middle of nowhere because the columns haven’t been built, identifying the issue in the programme, which allows us to go back and solve it.
Predictive modelling linked into AI forecasting is a QS competency. What is the cost to completion? The bank needs to know, the builder needs to know, through to Earned Value calculations, whether the project is ahead or behind. Modern technology can accomplish this forecasting but is never able to completely do the entire job.
Technology is a tool that will never replace the QS but it is imperative that the use of the technology is learned and understood. We ignore it at our peril.
2. Sustainability/Environmental Issues
Carbon counting has become massively important. Climate change is real and let’s face it, our industry has a significant impact. Concrete alone has an enormous carbon footprint. Granted we are moving more towards steel structures but we’re still using concrete foundations, sheer walls, precast, tilt slabs. Along with the requirements for sustainability is a lack of sustainability knowledge that holds us back. The subject is so new that although people are looking at how to count carbon, and there are projects out there which are five and six green star projects, along with the green building challenge, it is still a learning process for the industry.
3. Market Shifts and Global Supply of Materials
While this has always posed a risk, volatility has spiked more recently. Disruptions in global shipping with incidents like the Panama Canal blockage, conflicts such as the war in Ukraine, piracy in the Red Sea, and even issues like the Brooklyn Bridge collapse … all contribute and affect global supply.
Consider also our relatively limited manufacturing output here in New Zealand. The Commerce Commission’s investigation into construction materials showed a lack of competition and poor availability of choice. Also, the complexities and difficulties associated with importing and certifying new materials from abroad act as deterrents, discouraging people to even try to enter this market.
The Evolving Role of the QS Profession
That 2014 report went into detail about the evolving role of the QS profession and how the technical role had developed over the years in the face of increased complexity and diversity of client needs and market demands. The scope of the QS role has expanded from the measurement and pricing of builder’s work to include wider technical and specialist services roles. Morden has kept pace with these demands and addressed the specific new and emerging specialist and technical roles highlighted in that report:
Enhanced technical roles
Building Economist: concerned with the optimal use of construction resources and the maximisation of value-for-money solutions
Value Engineer: identification and costing of alternative design and construction solutions with a view to recommending the most cost-effective solutions
Procurement Consultant: making recommendations for the most appropriate contract procurement strategy arrangements that best meet the needs of the client
Cost Manager: responsibility for the forecasting/budgeting, planning and organising, implementing and monitoring, reporting and controlling project financial spend to ensure that the agreed cost target is met
Contracts Administrator: overseeing the contractual administration of the project to ensure compliance with the terms and conditions of the contract, and the wider statutory/legislative requirements for the project
Commercial Manager: management of the overarching commercial aims and objectives of a business.
New and emerging specialist roles
Project management
Facilities management
Dispute resolution and expert witness services
Property consulting and development services
Value engineering and value management
Due diligence auditing
Investment appraisal, life cycle costing and development monitoring
Asset valuation and management
Insurance valuation
Building surveying and infrastructure audit.
QS The Morden Way
Under the leadership of Phil Hebden, the QS team is made up of a strong group of construction sector professionals who have both Contractor Quantity Surveyor experience and Professional Quantity Surveyor experience. The two are inextricably intertwined and having the ability for both facets to be able to understand each other’s roles brings a fresh perspective to any financial or commercial challenges that may arise on any project.
With the effectiveness of one party in a team directly related to the understanding of the roles of the other people within that team, with one team under one roof, we can achieve the best outcomes for all clients. Whether subcontractor, main contractor or principal, Morden offers the skills and requisite knowledge to be able to assist you.
All our team are not only qualified but are also members of professional organisations. This means that continuous professional development is a key part in the growth and improvement in our ability to perform and to keep up with the changing face of both the industry and our trade. Attendance at seminars, training courses and in house training courses are prerequisites for being part of the Morden team. With links to industry leadership organisations, Morden is able to stay abreast and ahead of other organisations, with industry insights they do not possess.
With close relationships with two companies which specialise in process efficiency, building software that uses AI to remove the potential for user error, to remove duplicate entry, to streamline the speed and production of documentation, to ensure corporate governance is maintained, these close relationships speed up the process and make for effective, collaborative ventures.
We are frequently requested as expert witnesses in litigation to give our independent opinions on costs for construction work, extensions of time and escalations, at all levels.
At the core of every dispute regardless of the root cause is always finance.
No matter what the driver for any issue or challenge, the outcome is that somebody has to pay or someone isn’t going to get paid. The structure of any construction project is multifaceted in terms of the organisations that are involved in it: the principal, the consultants, the local authorities, the main contractor, their subcontractors, their hired labour firms, their plant hire firms, their material supply firms, and everyone is relying on the other for payment and a business that is self-sustaining and successful. When one link in this chain is broken, the entire chain is broken and generally in the middle of that link, trying desperately to hold it together, is a QS.
QS’s fall into two categories: the private QS acting on behalf of the principal and the contractor’s QS acting on behalf of the contractors and the subcontractors. There is a symbiosis between these two parties that when they work well together and build a rapport and a relationship, better outcomes are always achieved.
“Dave and Phil provided excellent support. They know their business and I’ve got nothing but time for them. One word for Morden? Outstanding.”
Morden is available New Zealand wide. Email info@morden.co.nz or call 04 210 0340 for a no obligation, confidential chat with Phil Hebden.
Our team has one purpose: to ensure your project is a success, so get in touch with us today.
