While the South African built environment and construction industry continues to battle the slump, economic pressure has led to a number of contractors revising their pricing strategies to see how they can offer services at a lower price than their competitors.

According to Henry van de Wall, Chairperson of the Association of Quantity Surveyors of South Africa’s North West Chapter (ASAQS) this may seem like a clever marketing strategy, however it may expose clients to certain risks.

Unfinished business

One of the risks is that a contractor could be offering discounted rates to a number of clients and just scraping by or barely making a profit.

If one or a number of his clients then defaults on payments, the contractor’s business may not be able to absorb the financial repercussions and be able to complete the work that he has committed to on other projects.

In this case, a client’s building could be left uncompleted or the project could be delayed due to cash flow problems, or even worse – bankruptcy.

Protecting the client

“While hiring a professional quantity surveyor is often seen as something that only commercial clients should invest in, it is becoming more important than ever to obtain professional input regarding a contractor’s prices,” says Van de Wall. “This initial addition to the project costs will assist a great deal in protecting the larger investment.”

Besides getting a market related estimate to confirm the tendered prices from a contractor, a quantity surveyor can also provide crucial clarity about the quality of materials and the scope of work that the client and contractor have agreed on.

Protecting the contractor

Quantity surveyors aren’t only appointed to protect clients. Many contractors are also creating allowances for Quantity Surveying services in their own projects, which is the responsible way to proceed with building projects.

Contractors are able to negotiate with quantity surveyors regarding fees so that they can still offer competitive rates to clients. The contractors then receive the benefit of being able to offer this professional estimation as a perk to clients, so it’s a win-win for all the parties who are involved in a project.