The role of the quantity surveying profession in accommodating client risk

In general, the techniques of formal risk analysis and management are little used by the consultant quantity surveyor in providing advice to construction clients, despite the apparent opportunity for their application. Quantity surveying practitioners accommodate project risk at tender stage by the contingency approach whereby an amount is added to the base contractor estimate to contain the cost impact of downside risk. In most cases, this single figure allowance appears to be at best a reflection of a consensus opinion of total project risk and at worst may be no more than a percentage addition. Further to the potential problem of inaccuracy, these methods may ignore the risks relating to both time and quality. This approach may leave the quantity surveyor practitioner vulnerable to justified criticism. This paper reviews the extent of use and application of risk analysis in the current practice of the consultant quantity surveyor in calculating the contingency allowance at tender stage and examines the desirability to apply risk theory in practice. Methods of contingency assessment are considered, as is the adequacy of the contingency allowance in containing downside risk and the use and availability of risk analysis skills within quantity surveying organisations.