quantity surveyor's role in public-private partnership

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Quantity Surveyor’s Role in Public-Private Partnership Highway Concession Adamu Mudi Department of Construction and Surveying School of Engineering and Built Environment, Glasgow Caledonian University UK, G4 OBA Abstract:- Construction industry is not isolated from the global changes occurring in the mode of operation and processes that drive the economy of a nation. The operators and the mode of contracting are changing, so is the transformation of professions in the industry to cope with global changes, particularly the quantity surveying profession. Due to the need to recover from global infrastructure deficit and sustainability crises, sole dependency on public funding and conventional procurement methods are no longer in vogue. The conventional procurement methods and financing mechanisms are failing leaving an enormous decline in the quantity and quality of public services provision. Public Private Partnership (PPP) concession or its other forms have the characteristics/features that play a complementary role to the conventional procurement method in revitalising the declined construction outputs. PPP attracts private sector participation in the provision of infrastructure by providing financing, expertise and technology, the resources that seem to be waning in the public sector. Quantity surveying profession needs to develop new skills in order to adapt and be relevant in the new scheme that is trending the construction industry. This paper clearly demonstrates that the fear being expressed in some quarters that the current and other global changes will drive the profession to extinction should not be entertained. Instead of the perceived constrained access for the quantity surveying profession, the horizon is widened for increased participation. For the reason of the perceived limitations of the quantity surveyor participation in civil engineering contract, especially in our local environment, the paper examined highway concession PPP model to demonstrate the elevated opportunities for the profession in PPP transaction. This would mean that if PPP have thrown doors open for the profession where they were formally closed, there would also be a larger role and more influence in other construction activities where quantity surveyors were originally performing traditional role. Another reason for chosen highway as an example in this paper is that PPP concession projects occur often in engineering projects and less on building projects. Keywords: Concession, Conventional Procurement Method, Public-Private Partnership, Quantity Surveyor. INTRODUCTION Public Private Partnership contract arrangement is playing a significant role in today’s global infrastructure provision, especially in the transport sector. The widening gap between the current infrastructure requirement and the ability of the government to fund it through conventional ways may be bridged by the complementary role of private sector participation. Geddes (2005) asserts that public sector confidence in their ability to deliver public services in an effective manner is on the decline. This position is corroborated by Richards (2005) while describing PPP influence in highways: “The expectation that private sector management and financing can provide a significant increase in efficiency in highways is central to the role of private finance in the provision and management of highways.” It is evident that the developing countries need to develop their infrastructure in sectors such as transport, energy, potable water and telecommunication for the purpose of supporting their economic activities, but many of them are constrained by inadequate funding which mostly comes from government annual fiscal allocation and foreign aid (Akintoye, 2009). These fiscal and other challenges inherent in the traditional procurement method solely funded through public purse have informed the need to explore other financing mechanisms such as PPP in order to alleviate these challenges. In summary the potential of the PPP approach to bridge the financial, managerial and technological gaps inherent in the conventional procurement methods makes it a viable option to address global infrastructure deficit, Nigeria included. The global trend is the pursuit and adoption of PPP as a viable alternative to the conventional public infrastructure development and provision. The profession of quantity surveying is undergoing a process of transformation to face new challenges in the industry including its new role in PPP contract arrangement. The initial fear that the profession was on its way to extinction due to development of new technology and the usurping attitude of some other sister professions has been overcome by the new optimism that the profession is emerging as an important players in the changing mode of operation in the industry. A demand is placed on the profession to adapt to changes occurring in the industry. According to Ofori & Toor (2009:37), “organizations in all sectors of the economy are under increasing pressure to offer value added services, innovate, and learn to survive and grow in the face of increased competition and rapid change”. The trend now is that the traditional technical functions of quantity surveying are giving way to the ‘newer more innovative and management type functions’ the direction that is likely to continue (Frei & Mbachu, 2009). Quantity surveyor’s role in PPP concession contracts is demonstrated using highway International Journal of Engineering Research & Technology (IJERT) ISSN: 2278-0181 http://www.ijert.org IJERTV5IS020408 (This work is licensed under a Creative Commons Attribution 4.0 International License.) Published by : Vol. 5 Issue 02, February-2016 407

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Quantity Surveyor’s Role in Public-Private Partnership Highway Concession

Adamu Mudi Department of Construction and Surveying

School of Engineering and Built Environment, Glasgow Caledonian University UK, G4 OBA

Abstract:- Construction industry is not isolated from the global changes occurring in the mode of operation and processes that drive the economy of a nation. The operators and the mode of contracting are changing, so is the transformation of professions in the industry to cope with global changes, particularly the quantity surveying profession. Due to the need to recover from global infrastructure deficit and sustainability crises, sole dependency on public funding and conventional procurement methods are no longer in vogue. The conventional procurement methods and financing mechanisms are failing leaving an enormous decline in the quantity and quality of public services provision. Public Private Partnership (PPP) concession or its other forms have the characteristics/features that play a complementary role to the conventional procurement method in revitalising the declined construction outputs. PPP attracts private sector participation in the provision of infrastructure by providing financing, expertise and technology, the resources that seem to be waning in the public sector. Quantity surveying profession needs to develop new skills in order to adapt and be relevant in the new scheme that is trending the construction industry. This paper clearly demonstrates that the fear being expressed in some quarters that the current and other global changes will drive the profession to extinction should not be entertained. Instead of the perceived constrained access for the quantity surveying profession, the horizon is widened for increased participation. For the reason of the perceived limitations of the quantity surveyor participation in civil engineering contract, especially in our local environment, the paper examined highway concession PPP model to demonstrate the elevated opportunities for the profession in PPP transaction. This would mean that if PPP have thrown doors open for the profession where they were formally closed, there would also be a larger role and more influence in other construction activities where quantity surveyors were originally performing traditional role. Another reason for chosen highway as an example in this paper is that PPP concession projects occur often in engineering projects and less on building projects. Keywords: Concession, Conventional Procurement Method, Public-Private Partnership, Quantity Surveyor.

INTRODUCTION Public Private Partnership contract arrangement is playing a significant role in today’s global infrastructure provision, especially in the transport sector. The widening gap between the current infrastructure requirement and the ability of the government to fund it through conventional ways may be bridged by the complementary role of private

sector participation. Geddes (2005) asserts that public sector confidence in their ability to deliver public services in an effective manner is on the decline. This position is corroborated by Richards (2005) while describing PPP influence in highways: “The expectation that private sector management and financing can provide a significant increase in efficiency in highways is central to the role of private finance in the provision and management of highways.” It is evident that the developing countries need to develop their infrastructure in sectors such as transport, energy, potable water and telecommunication for the purpose of supporting their economic activities, but many of them are constrained by inadequate funding which mostly comes from government annual fiscal allocation and foreign aid (Akintoye, 2009). These fiscal and other challenges inherent in the traditional procurement method solely funded through public purse have informed the need to explore other financing mechanisms such as PPP in order to alleviate these challenges. In summary the potential of the PPP approach to bridge the financial, managerial and technological gaps inherent in the conventional procurement methods makes it a viable option to address global infrastructure deficit, Nigeria included. The global trend is the pursuit and adoption of PPP as a viable alternative to the conventional public infrastructure development and provision. The profession of quantity surveying is undergoing a process of transformation to face new challenges in the industry including its new role in PPP contract arrangement. The initial fear that the profession was on its way to extinction due to development of new technology and the usurping attitude of some other sister professions has been overcome by the new optimism that the profession is emerging as an important players in the changing mode of operation in the industry. A demand is placed on the profession to adapt to changes occurring in the industry. According to Ofori & Toor (2009:37), “organizations in all sectors of the economy are under increasing pressure to offer value added services, innovate, and learn to survive and grow in the face of increased competition and rapid change”. The trend now is that the traditional technical functions of quantity surveying are giving way to the ‘newer more innovative and management type functions’ the direction that is likely to continue (Frei & Mbachu, 2009). Quantity surveyor’s role in PPP concession contracts is demonstrated using highway

International Journal of Engineering Research & Technology (IJERT)

ISSN: 2278-0181http://www.ijert.org

IJERTV5IS020408

(This work is licensed under a Creative Commons Attribution 4.0 International License.)

Published by :

Vol. 5 Issue 02, February-2016

407

concession contract model. It shows that instead of the perceived constrained access for quantity surveyors in civil engineering projects, particularly in Nigeria, the advent of PPP will make it inevitable for project clients to engage the skills of quantity surveyors in all areas of infrastructure development.

PPP MODELS

There are several definitions of PPP depending on the form that is adopted for a particular case. However, for the purpose of this paper the definition provided by Hardcastle & Boothroyd (2003) is adopted where PPP is defined as: “a contractual arrangement between a public sector agency and private sector concern, whereby resources and risks are shared for the purpose of delivering a public service, or for developing public infrastructure.” The range of possible combination of public and private partnership is provided in figure 1. Depending on the levels of risks to be allocated, government partnership with the private sector will start from halfway in the diagram where PPP is located to the extreme end where privatization is situated. The extreme left of the diagram is pure public domain which is the subsisting situation in the Nigeria’s Federal Ministry of Works. Based on this spectrum, different types and modes of PPP arrangement can emerge

(Yescombe, 2007; Grimsey & Lewis, 2004; UN, 2008; The World Bank, 2009) as follows: BOT (Build Operate and Transfer). In this type of

PPP contract, the private partner is responsible for financing, designing, constructing and operating the facility. The control and formal ownership is transferred to the public partner at the expiration of the contract period. Other form of this type of arrangement is the DBFO (Design, Built Finance and Operate).

BOO (Build Own and Operate). This type of arrangement leaves the control and ownership of the facility in the private partner. The private sector entity finances, builds, owns and operates the facility in perpetuity.

JV (Joint Ventures). In this type of arrangement the public and private sectors jointly finance, own and operate a facility.

Management Contract in this type of arrangement the private sector entity provides a service or range of services or manages the operation of a facility on behalf of government for agreed fees. The World Bank (2009) classified BOO, BOT, DBFO and JV as being applicable to Greenfield Projects, while ROT (Rehabilitate, operate and transfer); RLT (Rehabilitate, lease or rent, and transfer); BROT (Build, rehabilitate, operate, and transfer) are applicable to concession projects.

Figure 1: Spectrum of combination of public and private participation, classified according to risk and mode of delivery

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PPP CHARACTERISTICS The basic characteristics of PPPs are, additional fund from the private sector, procurement process improvement, lifecycle approach to infrastructure development, incentives for innovations, regulations by public bodies, assignment of responsibilities, improving the identification of project’s long term risks and allocation of the risks between public and private sectors (The World Bank 2009; Weber & Alfen, 2010). Cartilidge (2006) argues that for a

PPP program to be sustained, certain prerequisite such as political support, enabling legislation and availability of expertise are necessary ingredients. PPP requires a ‘long-term multi-functional and multi-disciplinary team building,’ collaboration and networking, and relationship management across the PPP contract stages for efficient service delivery (Kumaraswamy, et al., 2009; Robinson, et al., 2011). Figure 1 shows the increase in confidence level of participants in PPP as the relationship matures.

Figure 2: Confidence level in a PPP

GENERAL PPP IMPLEMENTATION PPP applications often start with public sector infrastructure development such as transport and subsequently progress to cover other facilities and services such as, waste and water management, educational and health facilities and other social services (Li & Akintoye, 2003; OECD, 2008). The proposed areas of PPP application outlined by the Nigerian Infrastructure Concession Regulatory Commission (ICRC) include: power generation plants and transmission/distribution networks; roads and bridges; ports; airports; railways; inland container depots and logistics hubs; gas and petroleum infrastructure, such as storage depots and distribution pipelines etc; water supply, treatment and distribution systems; solid waste management; educational facilities (e.g. schools, universities); urban transport systems; housing; and health care facilities (ICRC, 2010).

However, as at the moment operational PPPs in Nigeria are in port concessions, Concession of Terminal 2 of the local wing of Murtala Mohammed Airport Lagos, Power sector Concession arrangements are still work in progress. No operational road concessions by the Federal government except Lekki-Epe Expressway Concessions by Lagos State government. Road Concessions by the federal government are still work in progress. The first concession attempt (Lagos-Ibadan Express way) has not worked out well.

PPP MODELS FOR HIGHWAYS In highway PPP, the private sector consortium designs, builds, finances, and operates the highways for government to purchase (Availability Payment) or user pay (Toll). Highway PPP is gaining wide acceptance worldwide, with a significant success in time and cost savings compared to the traditional methods (Jenkinson, 2003). Even though

Partnership Launch

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PPP use may extend to other social services (Akintoye 2009; Grimsey and Lewis 2004), its implementation in the transport sector precedes and dominates its application in other sectors (OECD 2008; Yescombe 2007). The three main PPP contract models used internationally for roads and highways based on the rights, obligations and risks assumed by the public and private parties in the partnership (World Bank, 2009: Weber and Alfen 2010; Yescombe 2002) are: Concession (Toll) PPP Model, Availability Payment PPP Model and Shadow Toll PPP Model. Concession PPP is user-financed where stream of revenue accrued from tolls paid by the users. The private party bears the demand risk, the design, finance, construction, and operation risks. In most cases the private party do not have all the luxury to fix toll charge as government still regulates the toll tariff. Also in some cases where revenue stream from toll charges fall short of covering the concessionaire capital, operating and maintenance costs, government provides subsidy so that the fees will not be too high for it to be affordable by the public. In the Availability Payment model the road capital investment, maintenance and operation costs are financed from public budget as the concessionaire receive fixed fee based on the section of road available for use. The shadow toll is similar to the Availability payment model as it is also budget financed but the main difference is that the remuneration is based on traffic shadow toll rather than a fixed fee which makes the traffic risk to be higher than in the Availability model. However this difference is insignificant in the developing countries such as Nigeria where the major problem to be solved through PPP is the transfer of investment away from the lean government purse. Hence, Availability Model and the Shadow Toll Model will mean the same thing in this paper.

PPP EXPERIENCES IN HIGHWAY The Federal Highway Administration of the U.S. Department of Transportation International Technology Scan Study of Europe and Australia (FHWA 2009) indicates that quite a significant portion of motorways in Spain, Portugal, United Kingdom and Australia is operated under PPP scheme with impressive success. However, the portion of the motorways operated under PPP in these countries is a small percentage of total national roadways (about 20% in average), but in high mobility road corridors (FHWA 2009). Private Participation in Public service delivery in the developing countries has not witnessed a similar growth to that of the developed countries (Kerf & Izaguirre 2007; Leigland & Butterfield 2006) except in the telecommunication sector. However developing countries of Africa from 1980s are relying on toll financing and private concessions for high performance expressway. Perez, (2004) reported that the first surface transport partnership in South Africa is the 30-year N4 Maputo Corridor Project which was awarded jointly by South Africa and Mozambique on May 5, 1997 to Trans Africa Concessions (Pty) Limited at the value of US $430 million. The N4 toll way facilitates increased freight to Maputo port and facilitates greater private foreign investment. There is

constant traffic growth of 5-7% for passenger vehicles and 10% per annum for freight (Bhandari 2011; Boylan 2012). Haule (2009) also describes N4 toll PPP as a good example of Highway PPP in Africa. There was an initial protest when Lagos State of Nigeria opened the Lekki-Epe tolled Expressway (Phase 1) in December 2011, partly due to political reasons, toll charges, traffic congestion at toll points, and the delay in provision of alternative route. However, the toll road is now operational and phase 2 is about to open to users (Maduegbuna 2012; This Day 2012). The ongoing results of PPP implementation in highways are mixed of successes and failures. This kind of mixed results is an attribute of project outcome notwithstanding the delivery method, whether through PPP or the conventional public delivery depending on how the Critical Success Factors (CSFs) of projects are handled. Generally, project deliveries including highways have their challenges and shortcomings irrespective of the mode of delivery, PPP or pure public delivery. Criticisms are directed at both methods of delivery of infrastructure projects (Ragazzi & Rothengatter 2005), although the newer one is more criticised, perhaps for its relatively young experimentations. CONVENTIONAL ROLE OF QUANTITY SURVEYOR

Seeley (1997) defines a quantity surveyor as “professionally trained, qualified and experienced cost expert whose prime task is to ensure that the project is kept within the agreed budget and the employer obtains value for money”. He oversees the Construction cost, construction management and construction communications key areas of building or engineering project. The key services provided by a quantity surveyor cover such aspects as preliminary cost advice and cost planning, preparation of tenders, negotiations with contractors, valuation of work in progress and settlement of the final account. The Nigerian Institute of Quantity Surveyor (NIQS, 2012) defines a quantity surveyor as “the expert who is concerned with financial probity in the conceptualization, planning and execution of development projects both new and refurbishment works. He is the development cost adviser in building, civil and heavy engineering projects.” The extended services according to NIQS (2012) include:

a. FEASIBILITY STUDIES OF CAPITAL PROJECTS

b. COST MODELLING i. Capital investment policy advice

ii. Cost estimates, cost budgeting iii. Advice on financial plans and procurements

iv. Cost planning, monitoring and control to v. Cash flow forecasts and analyses ensure that

client’s budget is not exceeded. vi. Profitability studies and sensitivity analyses

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vii. Cost studies and research

viii. Value analyses and cost benefit studies ix. Life cycle studies and cost-in use x. Time effect on costs and profitability

xi. Annual budget advice on construction

c. CONTRACT DOCUMENTATION

i. Preparation of Bills of Quantities and other tender documents-for obtaining tenders and for the purpose of contractual administration.

ii. Advice on tendering procedures and contractual arrangements.

iii. Tender evaluation, analysis and reporting.

d. CONTRACT ADMINISTRATION i. Preparation of interim valuation ii. Measurement of variations iii. Agreeing claims iv. Cost control- Preparing financial statements,

cash flow and final account.

e. PROJECT MANAGEMENT

f. ARBITRATION

g. EXPERT WITNESS

Note: = often done = rarely done = not done Figure 3 shows a typical project team structure in a conventional building project. However, in a typical civil engineering projects such as road in Nigeria, only civil engineer is represented among all consultants in the industry.

Figure 3: Typical Team Structure for Conventional Building Project

Some of the services outlined above (a-g) are seldom performed by the quantity surveyor on a typical building project in Nigeria, while some are not performed at all. Moreover, none of these services are rendered by a professional quantity surveyor on civil engineering projects in the country. The procurement methods used for highway construction contracts in Nigeria is the traditional design-bid- build (DBB). Other traditional mode of procurement is the Design and Build (DB) otherwise known as turnkey. Whereas in the former, external consultant assumes the design risk and the contractor assumes the construction risk, the latter places both the design and construction responsibilities on the contractor and in both cases the public sector client assumes financial and post contract

operation and maintenance risks (Gibson et al, 2007; Tite, 2008; Ibrahim, 2008; Wahab, 1999). The design and build (DB) method is rarely in use for highway procurement in Nigeria, therefore the traditional method relevant in this paper is the Design-bid-build (DBB).Presently in Nigeria its only civil engineers that perform both the engineering and cost related services. The injustices to the industry and self-inflicting ‘injuries’ by the inaction of the Nigerian government on this has been argued extensively by the author (see Abiodun, 2012). Although some Nigerian engineers themselves admit the lack of project management skills and expertise in their profession (Akpedeye & Imhanwa, 2009), but still offer services in these area. Lawal & Okunade (2005) also observed that engineering

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curriculum in the Nigeria tertiary educational institutions is mainly in the engineering skills, with little attention to management courses including engineering project management principles, costing and project account principles, and virtually none in entrepreneurial skills.

ROLE OF QUANTITY SURVEYOR IN PPP TRANSACTION

The complex modern construction projects and the alternative modes of contracting such as PPP call for synergic approach by all professionals in the industry not

the perceived rivalry if the industry must deliver on its mandate. As noted by Frei & Mbachu (2009), increased involvement in alternative procurement methods is a great perceived area of potential opportunity for quantity surveyors. Various professionals are required on a PPP project due to its complexity and diverse number of stakeholders involved. Figure 4 shows a typical PFI management structure where external consultants are required to drive the process in advisory capacities. Figure 5 shows a typical highway concession project structure and the links of stakeholders to external consultants.

Figure 4: PFI Management Structure

Figure 5: Typical Highway PPP Concession Contract Schedule

The era of only engineering profession being dominant in engineering project is rapidly coming to an end in construction industry. Investors are guarding jealously their investments with expectation of commensurate return on investment, thus Value for Money consideration is paramount. The quantity surveyor is the expert in this realm and thus will become the most desired team leader in PPP projects. External consultants (advisers) are sourced to provide objective professional advice within their area of expertise in PPP projects (The World Bank, 2009). Various external advisers that may be required on PPP projects are technical adviser, legal adviser, financial adviser, social

impact adviser, insurance adviser, and environmental adviser (Gatti 2008; Pretorius et al. 2008). The specific roles of the first three advisers are described below (The World Bank, 2009; Cartlidge, 2006): Legal Adviser’s roles; A legal adviser is the one who assists to define the legal aspects of the PPP contract including bid documents. The legal adviser evaluates and advises on solutions to contractual issues during the procurement stage. Financial Adviser’s roles; A financial adviser gives advice on the financial aspect of the project’s business

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case, assists to develop and evaluates the financial models of the bids, undertakes due diligence on financial matters relating to the bids during the procurement phase, including funding and taxation aspects of the project. Technical Adviser’s roles; A technical adviser assists in the evaluation of the technical aspects of PPP project including strategic plan and outline business case, drafts the project output requirement and specification, ensuring that the technical aspect of the project meets its objectives. The technical adviser reports on due diligence advices on all technical solutions to the contract, and monitors the construction and operations stages of the project. Of all the professions, it is only the quantity surveying profession that fits into the three categories of advisers described. A professional quantity surveyor can perform functions of legal, financial and technical adviser, whereas engineers can only fit into the technical advisory role (i.e. providing engineering solutions). Apart from being an adviser to the public sector party (government) in a PPP, a quantity surveyor will provide separate advisory services to each member of the Special Purpose Vehicle (SPV), the concession company. As noted earlier, in the traditional contracting in Nigeria, a quantity surveyor provides limited services even on building projects not to talk of civil engineering projects where there is no opportunity to render any service. For example life-cycle costing is a key

function of quantity surveyor but rarely performed in the traditional public funded projects because the contract terminates after construction and handover. However, in PPP, Design, Construction and Operation/Maintenance are bundled together where life-cycle cost is paramount. It is an inevitable task because in PPP both the initial capital cost and cost-in-use must be computed and monitored. Quantity surveyor is also the most qualified to lead the project team in PPP projects because of their better acquired costing, communication and managerial skills than any other profession in the industry. Putting all these together, it looks like a widened horizon vertically and laterally. However, there are more entities to serve (See figure 4), more functions/activities to perform (See figure 4.3), and more time to spend on a PPP project than in the traditional methods. PPP allows synergy of multi-disciplinary human capital (various professionals) (Kumaraswamy, et al, 2007; Ajanlekoko, 2002) to efficiently manage project so as to reduce incidences of cost and time overruns which are the major causes of abandoned projects in Nigeria (Tite, 2008). Figure 5 is a research output of Nigerian Federal Ministry of Works conducted by (Abiodun, 2012) and shows mandatory activities to be performed by quantity surveyors and other professionals in a typical highway PPP project, compared to traditional procurement method.

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Proposed PPP Procurement Process FMW DBB Procurement Process Procurement Process Analysis STAGE ACTIVITIES STAGE ACTIVITIES

This initial stage is indicated in dotted lines (DBB) because economic Analyses are rarely done by FMW. Political consideration is mostly used for project identification whereas this process is mandatory for PPP projects.

No clearly noticeable deficiencies are identified in both methods at this stage. However, minor disconnection/discontinuous flow occur in DBB because the design phase is separated from construction phase. In PPP the flow is continuous because the SPV is concerned with both design and construction

The major disparity between the two methods is the continuous flow /or combination of construction and maintenance phase in PPP method and the disconnection between construction phase in DBB method. This creates inefficiency in DBB method (Section 5.11.2). Apart from the dearth of finance in FMW purse, this is the second .most critical source of inefficiency in DBB method.

This stage is indicated in dotted lines in FMW’s DBB procurement process because these activities are not performed at all. PPP method encourages actualization of these activities.

Figure 6: Comparative Analysis of DBB and PPP procurement process for Highway procurement and maintenance in Nigeria

Project

Maturity

Project

Implementation

Project

Procurem

ent

Project

Initiation/

Developme

nt

*Identification of needs *Appraisal of Technical Solution *Economic Social & Environmental Analysis *Value for Money & Affordability Testing *Preparation of Financial Analysis *Budget Allocation with National Development Plan & Medium Term Expenditure Framework (MTEF) *Approval of Outline Business Case (OBC)

*Creation of Project Team *Preparation of Information Memorandum & Bid Documentation *Market Consultation; if Appropriate *A Competitive & transparent *Procurement Process *Approval of Full Business Case (FBC)

*Detailed Design & Construction *Operation & Maintenance *Monitoring/Payments/Contingent Liabilities

*Inspection & Preparation of Handover of any Public Assets *Analysis of future service Delivery & Further Procurement if appropriate *Contract Close and recording of lessons learnt

Project initiation

& Economic

Analysis

Road Technical

Assessment

Engineering

Design Tender

Document

Tendering

Contract

Documentation

Contract Award

Construction

&

Handover

Road

Maintenance

& Operation

Pre-

Tender

Stage

Tender

Stage

Construct

ion Stage

Maintena

nce and

Operation

Stage

Project

Maturity

Record of

lesson learnt

&

Future

Project Plan

Minor Disconnection

Major Disconnection

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Figure 6 and 7 explain one of the key inefficiencies in FMW procurement process. The disconnection between design, construction and Maintenance of roads is the major reason for road failures. Because maintenance phase is separated from construction phase, maintenance phase is not planned for. Corrective maintenance works are carried out only when roads fail. Bundling these phases together in

PPP method has the potential to provide an improved result, since revenue generating ability of the toll road depends on the road quality meeting the predetermined output. Bundling of these three phases in PPP encourages introduction of whole life cost and innovations for sustainability (See also Akintoye, 2009; Cartilidge, 2006; Yescombe, 2007).

Figure 7: Comparison of DBB/PPP Project Life Cycle for Highway in Nigeria

EXPANDED SERVICES OF QUANTITY SURVEYOR

IN PPP TRANSACTION Capacity Building All said and done, the quantity surveyor needs to be innovative and adapt to changes by developing new knowledge and skills in order to be relevant assume his/her rightful position as the team leader in the industry. As Frei & Mbachu (2009) noted that lack of innovation and resistance to change are part of challenges quantity surveying profession is facing. The training needs should be pursued individually as professionals and collectively by the Nigerian Institute of Quantity Surveyors and Quantity Surveyor Registration Board of Nigeria. A consultant must have ‘the necessary experience, qualifications, skills and expertise to help with a task that an individual or company wants performed’. The question is can the professional/consultant add something of value to the client (Cohen, 2009)? A quantity Surveyor must strive constantly to improve and update skills and professional competence to be able to fit adequately into the scheme of things. The importance and benefits of capacity upgrade is not farfetched in the emerging era of Public Private Partnership that is trending the infrastructure provision landscape globally. Now the traditional role of government as a sole provider of infrastructure services is dwindling and giving way to private provision. The stage is now set for all professionals to demonstrate their abilities to be relevant. No more ‘free lunch’. Private sector that is business

oriented will only be willing to pay for professional services duly rendered- added value. Government does not, and will no longer perform their traditional functions of rowing and steering. It will continue to only steer (regulate) the network of systems in the economy (See Abiodun, 2013). Government on its part needs to take a closer look at the academic system by providing funds for research and development including staff remuneration to build capacity for indigenous professionals (Dlakwa, 1998). If the tertiary institutions will continue to maintain relevance in the market place, then they need to update their curriculum to serve the outside world. Marketizations of higher education are characterized by a closer partnership with outside client. There is now a movement away from the ‘traditional pedagogy and conventional curricular’ to the one that is responsive to the employers’ demand (El-Rufai, 2006). The clear inadequacies in the university curriculum covering the area of sustainable construction and also in the area of related professional training need to be reviewed (Izam & Ameh 2012). Marketing After acquiring the much needed knowledge and skills, the next thing is to engage in strategic marketing of the profession in order to move away from the present relative obscurity being experienced in some aspects of construction services (Smith, 2004). A professional quantity surveyor individually and NIQS/QSRBN as

Unbundled activities

Seamless continuous flow (Bundled) activities

Design Construction Major

Time lag

Maintenance

Design/Construction/Maintenance

DBB

PPP

Minor Time lag

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bodies, need to embark on some sort of marketing to sell the practice to the consumers. According to Shenson (1994), “to build and maintain a viable professional firm, marketing must permeate every activity. The professional sells image, technology, knowledge and insight, competence, creativity, attitude, and even philosophical approach. Unlike other products, professional service cannot be separated from the delivery vehicle (professional). As professionals we should not create the impression that we are hungry to the client. No one wishes to do business with someone perceived to be needy, hungry or unsuccessful. The most successful professional avoid any appearance of needing the business”. We need to present to the client the value we are adding to his present state that he/she needs to pay for.

CONCLUSION PPP Procurement method has emerged as alternative option to the conventional pure public infrastructure procurement. Public sector is partnering with the private sector in a long term relationship to deliver public services to the citizens, the role governments across the globe are now finding difficult to perform alone. PPP is perceived to be a viable alternative as some successes have been recorded in its implementation across the globe especially in transport sector. PPP as an emerging procurement method gives hope to the profession of quantity surveying for a more sure and increased participation and influence in the construction industry among other professionals. There is now a widened horizon for quantity surveying functions to be demonstrated. However, in order for the profession to be able to adapt to this change and other changes for that matter, it needs to innovate, acquire new knowledge and develop skills relevant in the new scheme of things. These will afford the quantity surveyors the opportunity to perform their new role in addition to the traditional role, as well as assume the vacant leadership position in the industry. Lastly, quantity surveyor individually and the professional bodies need to adapt some marketing strategies in order to come out of obscurity and duly participate and contribute to the growth of the profession and the industry at large.

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