INSIDE .....

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Aug 2, 2012 ... This is Ivor Seeley's handwriting. (He gets me a copy of the book from his shelves to see). What made you pick interest in Quantity Surveying?
INSTITUTION OF SURVEYORS OF UGANDA (ISU)

August, 2012

INSIDE ..... QS CHAPTER Background & Editorial

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Word from Chairman

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Factfile

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Will the NRM ever become global?

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Quality Assurance



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Jokes



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QS PROFILE: Giles O. Odongo

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The Role of the Quantity Surveyor in Public - Private Partnerships

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QS Members





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QS Firms





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Snap shots





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Find us on FaceBook

QS Profile: Giles O. Odongo

ISU QS 2012 QS Chapter NEWSLETTER.

Issue 2

August, 2012

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Background The Institution of Surveyors of Uganda was reconstituted in 2000 as a professional body with the mandate of ensuring the professional enhancement of the surveying profession in Uganda. This entails the promotion, advancement and safeguarding of the profession. Furthermore, it aims at protecting the general public and consumers of surveying services from unscrupulous and fraudulent surveying practitioners through setting and maintaining basic education requirements for its members and the public. ISU comprises three chapters * Valuation Surveying * Land Surveying and * Quantity Surveying.

It is run by an Executive and Council.

The Executive is comprised of a President, Vice President, Secretary, Vuce Secretary, Treasurer and a Vice Treasurer. These are elected during an Annual General Meeting (AGM). Council of the executive comprises of Executive Members, 3 Chapter Chairmen, Technicians representatives and Student representatives from the various academic institutions offering different surveying disciplines in Uganda.

Editorial Beloved readers, Have you ever got a feeling that you’ve solved a problem in a new way, discovered a fact and you can apply it in your profession or personal life or have a new insight into what makes the world go round? Well, that’s the feeling you ought to have if you are involved in any Quantity Surveying activity. The QS E-news letter welcomes you to yet another inspiring and very interesting issue. We present to you quite a lot and as you read on, you will learn quite a number of things that do matter to your profession and every day life. We at QS Chapter would like to thank all our readers for the support that you give to help us improve the value of this news letter. Our voice became just a little stronger on 31st May 2012 when we launched the first issue of this news letter. I hope the QS E-news letter will continue to be a voice for all the quantity surveyors in Uganda and the construction field at large. We encourage you to continue communicating back to us and don’t forget to send in your articles/contributions to qschapter@gmail. com Enjoy reading QS chapter E-news letter! Regards

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Rebecca Tusiime QS Chapter NEWSLETTER.

Issue 2

August, 2012

Message from the Chair I welcome you to the 2nd issue of QS Chapter magazine, I will take this space to brief you on the highlights the progression of the Chapter to date. It has not been easy to meet planned targets due to several hindrances but the Chapter has endeavored to maintain its basic goals as mandated in the Constitution of ISU. HIGHLIGHT OF CHAPTER ACTIVITIES The Chapter has taken Continuous Professional Development (CPD) with utmost importance and has managed to maintain its earlier ambitions of holding a CPD at least ounce in every two months. This has also underpinned member participation and activeness in addition to other activities as shall be highlighted. Vitalizing collaboration with sister professions has also been at forefront as the Chapter has sought audience through meetings, attending of joint CPDs and this periodic Chapter magazine in order to have a way forward on how it can form alliances with other professions i.e. USA, UIPE for the common good of developing the profession. Plans for a joint CPD with Uganda Society of Architects (USA) are underway. Through forums via Facebook and emails, the Chapter has managed to maintain communication cohesion amongst its members and other professions. This has not only helped keep members up-to-date with the latest information but also seen considerable increase in member subscription to ISU and know-abouts of the profession to the public and the aspiring generation. The linkage and relationship of Industry/practice and academic institutions has been an outstanding delicate challenge which the Chapter has attempted to tackle. There needs to be more than a cordial relationship between the two for sustenance of any profession as one aspect cannot live without the other. The Chapter has carried out consultative meetings and discussions with students in Academic Institutions. It has also struggled to reinforce relations with the managements of academic institutions and this has seen both formal and informal collaborations spring up. i.e the Chapter managed to attend final year presentations at both Makerere and Kyambogo Universities in which its findings shall be shared and formally communicated to the Institutions. The Chapter has encouraged Firms to embrace Industrial

QS Chapter NEWSLETTER.

Issue 2

August, 2012

Training for students. While it is appreciated that placement of students is a challenge owing to many reasons inclusive of the resources, business turnover and the student-firm ratio, proactive means like phased training has been encouraged to counter this challenge. Through ISU, the Chapter was approached by Uganda Industrial Research Institute (UIRI) on 28th March 2012 seeking a shortlist of 10 candidates for consideration for a post of a Quantity Surveyor. The Chapter made a call for expressions of interest on 30th March 2012 and the criteria was strictly based on membership with ISU and the required 3years experience. On 9th May 2012, a shortlist of 9 candidates (5 from Makerere and 4 from Kyambogo University) who met the criteria was forwarded to UIRI for consideration. LATEST AND PLANNED DEVELOPMENTS The Chapter came to learn that Board of Registration of Quantity Surveyors and ArchitectsKenya (BORAQS) contacted ISU, about the issue of cross-border practice. The same board informed that it is in the process of bringing together all the Registration Boards for both Architects and Quantity Surveyors in the East African Community so as to chat a way forward on cross-border practice and regulation of the said professions in the region. Deliberations were initiated by, the Registrar/ Secretary of Surveyors Registration Board (SRB) to the Ministry of Lands Housing and Urban Development seeking guidance on the proposal by BORAQS. The Chapter is planning to have website developed in order to manage its activities well. CHALLENGES The inadequacy of finance has still been an outstanding huddle, though various approaches have been continuously devised to circumvent this problem. Members have continued to pay for the CPDs in order to subsidize the meager budget. The financing strategies are also being streamlined in order to ensure the Chapter can have long-term sources of finance for its activities. Although we have registered an increase in member participation in Chapter activities, there is still more vigor needed in order to meet the desired aspirations. Members are continuously encouraged to create time for Chapter activities and participate proactively. KIBWAMI NATHAN Quantity Surveying Chapter Chairman, ISU.

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Fact File The 10 tallest Buildings in the World 2011 – 2012[Source: Internnational Organization Council on Tall Buildings and Urban Habitat (CTBUH)]

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1. • • •

Burj Khalifa Dubai, United Arab Emirates Height: 828 m (2,717 ft) Floors: 163 Cost of Project: $1.5 Billion

2. • • •

Taipei 101 Taipei, Taiwan Height: 509 m (1,670 ft) Floors: 101 Cost of Project: $1.8 Billion

3. • • •

Shanghai World Financial Center Shanghai, China Height: 492 m (1,614 ft) Floors: 101 Cost of Project: $1.2 Billion

4. • • •

International Commerce Centre Hong Kong, China Height: 484 m (1,588 ft) Floors: 108 Cost Of Project: $3.85 Billion (estimate)

5. • • •

Petronas Towers Kuala Lumpur, Malaysia Height: 452 m (1,483 ft) Floors: 88 Cost Of Project: $1.6 Billion

6. • • •

Nanjing Greenland Financial Center Nanjing, China Height: 450 m (1,476 ft) Floors: 89 Cost Of Project: $375 Million

7. •

Willis Tower Chicago, USA Height: 442 m (1,451 ft )

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Floors: 108 Cost Of Project: $950 Million

8. • • •

Guangzhou International Finance Centre Guangzhou, China Height: 438 m (1,435 ft) Floors: 103 Cost Of Project: $1.2 Billion

9. • • •

Trump International Hotel and Tower Chicago, USA Height: 423 m (1,389 ft) Floors: 98 Cost Of Project: $847 Million

10. • • •

Jin Mao Tower Shanghai, China Height: 421 m (1,380 ft) Floors: 88 Cost Of Project: $530 Million

11. • •

Tallest Building in Africa is Carlton Centre South Africa Johannesburg 223m (732 ft) 50 Floors.

QS Chapter NEWSLETTER.

Issue 2

August, 2012

WILL THE NEW RULES OF MEASUREMENT (NRM) EVER BECOME GLOBAL? is intended for use with regard to cost estimating and cost planning for building maintenance, intended for those QSs who are involved in life cycle costing. (New Rules of Measurement are set to Rewrite Quantity Surveying Standards) NRM is not a political organization, but stands for the New Rules of Measurement! Since 1922 the Standard Method of Measurement (SMM) spearheaded by the Royal Institution of Chartered Surveyors (RICS), has been providing Quantity Surveyors (QSs) with rules of measurement for building works and therefore almost all QSs are familiar with the SMM. To continue with what it does best, on 24th April 2012, the RICSlaunched landmark new guidance, which comprise new rules of measurement in three volumes, with an element of updating of existing methods together with something completely new. NRM 1 – This was first published in 2009 and deals with the order of cost estimating and planning for capital building works and has been updated to capture best practice and documents in a single reference source.

NRM 2 – The intention of NRM 2 is to replace SMM7 which will be discontinued in 2013. It is a set of detailed measurement rules, which enables work to be tendered for, either through the medium of a bill of quantities, or a schedule of rates and is intended for use on capital or maintenance projects. NRM 3 – This is a new document which QS Chapter NEWSLETTER.

Issue 2

August, 2012

“Ninety years on from the first standard method of measurement, the industry now has rules for capital building works NRM1 and 2 and, through NRM3, will soon have them for maintenance and renewal works.”NRM3 has been acclaimed as a groundbreaking and fundamental solution to enabling effective and more robust life cycle cost management. Is it then time to change course or re-write the Quantity Surveying Syllabi?

Being in the early stages of implementation, it is not clear if the NRM will be adopted by the global Quantity Surveying Community, as well as tertiary colleges and universities worldwide.

Through the RICS Student Construction Journal (2011), Stuart Earl, Chairman of the RICS Measurement Initiative and a Partner at Gleeds, expounds on the new opportunities these new rules present for the Quantity Surveying profession.

Considering that measuring building work which has been at the heart of what QSs do, has been allowed to diminish even among its own practitioners, the Measurement Initiative set-out to invigorate this discipline, modernise the existing standards and close the disjointed way of measurements for Cost Planning and Bills of Quantities, whilst addressing a common standard for Cost Planning and Procurement of replacement and maintenance work. The 5

principle message was that: “If you want to be able to compare costs (at any level) then you have got to have them measured to a common standard.

”Therefore, the complete set of these rules are meant to complete the cost management lifecycle such that at any point in a building’s life, there is a set of rules for measuring and capturing cost data. However, Earl is critical of too many QSs who see measurement as a one-off activity at the end of a design period through the production of a Bill of Quantities, as this is not how the NRM are intended to be applied to the activities of estimating and cost planning. He argues that cost planning is an iterative process and that the rules should be at the heart of controlling costs as the design is developed and as the clients develop their requirements or briefs.

Another misconception he points out is that the quantification of building work is entirely the domain of the QS. This, he believes, is simply not the case, as anyone involved in the delivery of building works ought to be looking at how they can use these rules, with an opportunity to educate designers of the estimating and cost planning stages and how these rules can be used to promote team work during design development. This calls for Universities and Tertiary Institutions to revise and strengthen their cost planning and measurement courses as a result of the publication of these rules. This would help graduates and trainees to better understand how estimating and cost planning is carried out based on a clear set of rules. David Benge, one of the Principal Authors of NRM 1 cites a few benefits for Training and Education. 6

providing tabulated information to act as an invaluable aide memoir; helping learning of both measurement and construction knowledge; and the establishment of cost-estimating and cost-planning competencies. The approach introduces formal estimating stages aligned to the RIBA Plan of Work, presented in a clear framework, which facilitates a systematic approach to compiling cost estimates and cost plans.

These rules also provide a comprehensive work breakdown structure (WBS) and a cost breakdown structure (CBS) for cost estimates and cost plans.

More significantly, Stuart Earl concludes that the aim of these NRM is to maintain the status of Quantity Surveyors as independent cost advisors in the face of increasing competition from other professions. It is therefore important for all QSs “to embrace the opportunities that the NRM suite provides…placing ourselves at the heart of our clients’ team and not be some sort of bystander[s] or passenger[s]”. With the first edition of NRM2 (Detailed Measurement for Building Works) set to become operative come 1st January 2013 (and has been post-dated accordingly), we look forward to seeing similar developments in our local construction industry through the Chartered Surveyors spread across the globe, including Middle East, Near East, and Africa (MENEA). MUKASA TOM JOSEPH

These include promoting common sense;

QS Chapter NEWSLETTER.

Issue 2

August, 2012

QUALITY ASSURANCE IN CONSTRUCTION FOR REDUCED COSTS Quality is one of the critical factors in the success of construction projects which as well as project success, can be regarded as the fulfillment of expectations (i.e. the satisfaction)of the project participants. It is a desirable characteristic by all stakeholders in construction. Quality assurance is a set of activities whose purpose is to demonstrate that an entity meets all quality requirements (ISO, 2007).

assurance is to independently assure that the activities of a specific project are being performed in accordance with all contractual specifications, codes and standards or government regulations. Quality assurance is verified through checks, audits, inspections and witnessing. These services can be carried out completely independent of the individual contractors, materials suppliers, manufacturer or sub contractor as well as the purchaser or final user which in return provides the client with adequate confidence that a structure, component, material or system meets prestated quality standards and will perform satisfactory during service.

The construction industry in Uganda has been struggling with quality issues for many years as well as high construction costs which can be significantly reduced (especially in the long run) if the industry embraces the concept of quality assurance that has been used with great success by service and manufacturing industries in the country. However, unlike manufacturing and service industries, where a standard product is regularly produced, most products of the construction industry are one-offs, specially designed for a specific purpose which makes attainment of a quality leveldifficult both to specify and monitor.

Alternatively, the services can also be conducted within the individual contractors, suppliers, manufacturers, etc. as long as those carrying out the audits are independent of those producing the output under review, and therefore top management ought to appoint someone responsible for the operation and maintenance of the quality system.

Project quality assurance must address both the management of the project and the product of the project. Failure to meet quality requirements in either dimension can have serious consequences for any or all the project stakeholders. The major objective of construction quality

Quality assurance in constructionalso requires that the procedures for incorporating design changes into the construction plans be well developed and fully utilized. The earlier design changes are recognized and implemented the lower the cost. The choice of operations to be performed depends on the requirements of a project.

QS Chapter NEWSLETTER.

Issue 2

August, 2012

Quality assurance inspections can be applied to all materials, structures, components or systems utilized in the construction process. This service should be provided both on construction sites and at the facilities of the manufacturers involved.

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I therefore would like to urge all of us (construction stake holders) to make an effort in ensuring provision of quality construction products to our clients. “The bitterness of poor quality is remembered long after the sweetness of low price has faded from memory.” – Aldo Gucci For God and Our Country

GEORGE SEMUGENYI ISU, Student representative

Which One Would You Rather Operate On? Five surgeons are discussing who makes the best patients to operate on. The first surgeon says, “I like to see surveyors on my operating table, because when you open them up, everything is numbered.” The second surgeon responds, “Yeah, but you should try electricians! Everything inside them is colour-coded.” The third surgeon says, “No, I really think the file clerks are the best; everything inside them is in alphabetical order.” The fourth surgeon chimes in, “You know, I like construction workers. Those guys always understand when you have a few parts left over at the end, and when the job takes longer than you said it would.” But the fifth surgeon shut them all up when he observed, “You’re all wrong. Lawyers are the easiest to operate on. There’s no guts, no heart, and no spine, and the head and bottom are interchangeable.” Source: Internet

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QS Chapter NEWSLETTER.

Issue 2

August, 2012

QS Profile: Giles O. Odongo Mr Giles O. Odongo is a senior Quantity Surveyor in Uganda. In addition to that, he is the current Ag. Assistant Commissioner QUANTITY SURVEYING with Ministry of Works and Transport. In this 2nd Issue we profile him as one of our senior professionals in the quantity surveying profession in this country. How would you describe your childhood? I was born in Mbarara but I come from Gulu. And at the time I was born the district Engineer was called Giles McAlister who was into construction works and I was given that name (Giles) hoping one day I would do something in the field of construction. Where did you have your Primary and Secondary School Education? I had my primary education at Madhivan Primary School in Gulu in the 1960s. During this time, Madhivan had schools in every district. From here I joined St. Mary’s College Kisubi then I went to Dar-es-salaam to study quantity surveying. The course itself was not offered in this University (Dar-es-salaam) but it was in an Institution called Ardhi Institute which is now Ardhi University, a centre for Lands and urban management studies offering courses like Architecture, Land Economics, Land Management, Quantity surveying and many more. I remember in our third year, Ivor H. Seeley visited the Institute and gave us a lecture. This is when I realized that the characters in one of his books (Building Quantities Explained) were hand written. This is Ivor Seeley’s handwriting. (He gets me a copy of the book from his shelves to see). What made you pick interest in Quantity Surveying? As I grew up my father was a roads engineer and he was involved in serious construction works. I would say he inspired me though at that time I was not sure which field in construction I wanted to settle for. How long have you been with Ministry of Works…? From the University I joined Ministry of Works as a quantity surveying assistant in 1986. It was then called Ministry of Housing and Public Building. Around this time, we could hand write everything, tender documents, contract documents, bills of quantities. I remember one assignment where I had to do the taking-off and prepared bills of quantities for Livingstone Hall (Makerere University) in one day. Some of the major projects in my early days include rehabilitation of hotels around 1987, PTA conference, district headquarters, Namboole stadium, Statistics House, Namuwongo roads where I was the quantity surveyor, Namuwongo slum upgrading and many more. Do you have any special training that could have led you up to becoming a better quantity surveyor? One special training is on-job training. I have been involved in

QS Chapter NEWSLETTER.

Issue 2

August, 2012

many different projects which has given me opportunity to learn. The other I can point out is working with people that had been there before me. People like Mr. Charles Muganzi (the current permanent secretary Ministry of Works and Transport), Mr. Ntwatwa, Mr. Orlando Marcelos and many more, has taught me much. Also taking on short training in specific sections/trades and very necessary areas like procurement. What are the most important rewards you have gained in the quantity surveying career? One thing I know is that people think quantity surveyors get a lot of money. But I cannot put my gain in monetary form. What I feel I have gained is job satisfaction; seeing a good job done, the document you prepared being implemented and finally seeing end users enjoy what has been delivered without complaints and difficulty. Taking part in majority of public projects has given me an incomparable opportunity to get acquainted and gain experience on diverse projects. This has seen me visit almost all districts in Uganda. I therefore have knowledge concerning the terrains, geographical nature, people’s character (as regards to end-users) and contractor behavioral and capability in the different areas and other factors that would be necessary to consider in preparation for any project. In addition to that I have gained respect from people as well as confidence in people. This work is quite demanding and it has taught me to be patient. To become Ag. Ass. Commissioner you must have worked through different ranks. How did you get started in this position? I joined Ministry of Works as a quantity surveying assistant. Around 1986, I became a quantity surveyor then became a senior quantity surveyor and around 1999/2000 I became a 9

principal quantity surveyor until 2010 when Mr. Emmanuel Male retired and I had to take up this position-assistant commissioner- quantity surveying a position previously referred to as Chief Quantity Surveyor. You are the Ag. Assistant Commissioner (Quantity surveying – Ministry of Works and Transport). Briefly, what are your roles in this position? First of all I head the quantity surveying division in this ministry. It is the only quantity surveying office for all government projects in Uganda. I oversee and supervise staff in the quantity surveying division. I would say that my main role is to provide quantity surveying inputs needed by other divisions (Architectural, Engineering, etc.) in the planning and implementation of government projects while ensuring value for money. I also provide support to other government units like in monitoring and evaluating government projects, investigations by the police, auditor general, IGG and courts by providing expert opinion. I am also there to take part and contribute to the laws, regulations, policies and standard components in documents that are applied while handling government projects like PPDA, standard specifications, etc. I do contribute to promoting the construction industry by engaging with the contractors, consultants, statutory bodies and by conducting training. What would you site out as the Challenges of the QS profession in Uganda? The role of quantity surveyors is not well understood by the public. You would be surprised at how many people know who a quantity surveyor is? Or what the role of a quantity surveyor is? And this is why many still refer to quantity surveyors as engineers. The quantity surveying services are not yet appreciated by the public. We see a whole lot of people still thinking they can take up the quantity surveying roles. There is low level of employment for quantity surveyors. There is poor training in our institutions at the moment. The institutions lack teachers and material. And there is still a weak professional support system from societies and professional bodies. Quantity surveyors in most cases are exposed to a lot of corruption which is very common in our society today. Right from evaluation to implementation stages you encounter different traps and it takes one’s conscience to overcome these traps, else you frustrate your entire future. What are the opportunities of the QS profession?

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With all these challenges you are presented with opportunities. There are other opportunities like construction dispute resolution, procurement, and in banks. The quantity surveyors just need to team up and prepare for these opportunities. What qualities do you think are essential for a Professional Quantity Surveyor? A quantity surveyor should be in position to like details. One should read a lot, be patient, and be able to endure laborious and tedious paper work. You must have good negotiation skills, be devoted and committed to work; sometimes you have to forego personal and social time, you must have a high level of integrity, you have to always strive for accuracy and should have good communication skills (good command, written, spoken and good at presenting reports). Please tell us briefly about your family life. I have four children; 3girls and 1boy. Unfortunately I lost my wife in 1999 when our last born was 4months old but now he is in senior one. My eldest daughter studied agriculture and has finished her masters in Netherlands and soon she will be going for her PHD. My second born studied accounting and finance and is persuing her CPA course and my third born is in A-level. How do you spend your leisure time? There is no leisure during week days. I am usually occupied with office work. Saturday is occupied with social responsibilities and Sunday I must go to church. I don’t miss church. What advice do you give to the upcoming quantity surveyors? Study hard and seek knowledge (Not necessarily going back to school). Make opportunity out of every situation. Be patient, steadfast, and honest. Press on. You will not get your reward quickly but if you remain faithful to the profession it will take you to some place of reward. Do not look at the monetary gain at first; this can as well be the first thing to take you out of the profession. Aim for the best in whatever you do. Do not settle for less and do not entertain mediocrity. Always strive for excellence. Remember the one with the most knowledge is the one who will have power. And you should always look ahead with a perfect brightness of hope within you.

QS Chapter NEWSLETTER.

Issue 2

August, 2012

The Role of the Quantity Surveyor in Public - Private Partnerships (PPPs)

Continued from issue 1 The traditional method of providing public infrastructure has 3 problems:I. Projects can only proceed once the public funding is in place and this can be problematic. Public institutions have to request for funds from the Treasury and inevitably many projects fail to secure funding and do not go ahead. II. Once funding is approved, the project delivery is often unreliable both in terms of cost and time certainty.



to provide alternative management and implementation skills to provide value added to the consumer and the public at large



to provide better identification of needs and optimal use of resources.

3. PPPs allow projects to be funded throughout the economic cycle, which is attractive to governments taking a long-term view and anxious to keep public borrowing in check

III. The maintenance of built assets is also dependent on central government funding, which like the funding of capital projects is also unpredictable. Often funds for capital building programmes have to be diverted to carry out essential maintenance or repair work.

4. Providing Synergy:•

between the design and construction. Most PPP projects are able to deliver this well with designers working alongside the contractor.

In a nutshell, PPP can be described as a contractual agreement of shared ownership between a public agency and a private company, whereby, as partners, they pool resources together and share risks and rewards, to create efficiency in the production and provision of public or private goods (Akintoye 2009).



between the construction phase and the operational phase. This is mainly to do with the suitability and reliability of the construction taking into account whole-life costs over the expected life of the project.

Why PPPs are popular According to Cartlidge (2006) the following are the main reasons why PPPs are proving to be popular with governments throughout the world. 1. Government has an obligation to deliver public services, but government does not need to finance, build and maintain the infrastructure necessary to do this. Therefore at one level PPPs are a method of outsourcing the delivery of public services in which the government assumes the role of the purchaser of these services from the private sector supplier. 2. The European Commission takes a more pragmatic assessment, suggesting that PPPs are driven primarily by limitations in public funds to cover investment needs, but adding that PPPs also boost efforts to increase the quality and roles for the private sector in PPP schemes: •

to provide additional capital

QS Chapter NEWSLETTER.

Issue 2

August, 2012

5. Providing Innovation. Lemos et al. (2003) noted that in PPP projects the majority of innovations are derived from the following needs: •

To promote easy and cost-effective long-term maintenance of the constructed asset.



To give the designer freedom to innovate in the aim of providing a service in the most effective way, thus increasing the project’s profitability.



On a whole-life cycle basis, an operator needs to consider the interaction between a more expensive design solution and lower operating and lifecycle costs or vice versa

Funding major infrastructure development is a major problem for Uganda and many developing countries that often rely on government annual capital investment budget or foreign aid. Lifset and Fernandez (1998) reported a summary of their internet conference on ‘The Search for Best Practices in Urban Solid Waste Management Services in Developing Countries’, which showed that the

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financing of solid waste management in many developing countries is conducted through traditional sources such as municipal government. Finance through collection by private entrepreneurship and own-income communities that pay for this is low, while community financing is not universal. Given the current position in many developing countries they suggested a need for further institutional development and more effective regulatory frameworks to facilitate greater involvement of private capital. However, UNDP is of a firm belief that ‘it is through PPP that the developing countries can create employment and income growth as well as improve the quality of life for the poor’. Bennett et al. articulated the need for PPP:

Figure 2 below shows an example of the implementation of a public Hospital project by PPP in the UK. A PPV called Consort Healthcare was formed by three parties i.e. a service group BICC, Royal Bank of Scotland and Morrison Construction. This SPV built the 892-bed New Royal Infirmary, Edinburgh (NRIE) Hospital between 1998 and 2002, including arranging debt finance, and is currently involved in the maintenance of the non-clinical hospital services such as car-parking, catering, cleaning and planned maintenance. Figure 2: Teams / Contractual Relationship

It is becoming increasingly clear that governments cannot meet the continually growing demand for water, waste and energy services acting alone. Governments are finding that their tax revenues are not providing sufficient resources to meet these needs, and official development assistance has not been able to fill the gap. New approaches to addressing these problems that involve collaboration among an increasing number of stakeholders are urgently needed. Public-private partnerships are one of the most promising forms of such collaboration. (Bennett et al., 1999)

The role of the Quantity Surveyor (QS). The Quantity Surveyor’s role in the implementation of a PPP obviously lies in the team assembled for the project. Before we look at a financial model for a PPP which derives the finances wholly from the private sector. Figure 1: Financial Model in a PPP Project

Source: Cartlidge (2006) In return for providing the building and the maintenance, Consort Healthcare receives a predetermined performancebased unitary payment for the duration of the PPP contract (30 years plus). The QSs role is therefore clear in any PPP whether working for the SPV or for the design and build contractor:1) The QS provides initial cost estimates that go into the various financial models selected to meet the projects objective. 2) At procurement stage to ensure a reliable design and build contractor is selected.

Source: Alsharif and Kaka (2009). From the above model, a financial advisor will be appointed by the Special Purpose Vehicle (SPV) or the concession company and will be responsible for the provision and running of the financial model forming the basis for submitting the tender for a PPP. As indicated, the financial advisor relies on other parties to provide the financial data needed for the model. The project company SPV will provide the initial cost of the project and its management cost. The construction contractor will provide the construction cost and the life-cycle-cost (LCC) on a monthly basis. The Facilities Manager (FM) company will provide operation and maintenance costs and the banks will provide financial information related to project financing. The financial advisor will collect all cost estimates for the project and feed them into the model together with adjustments to the number of occupants and variable rates to suit the service provider target.

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3) Prepare bills of quantities, tender documents for the design and build Contractor to procure sub-contractors. 4)

At contract administration stage to control costs.

5)

At maintenance stage as a facilities manager.

Conclusion

In conclusion, the QS is key to the success of any PPP. As the world embraces the concept of PPPs, QSs need to take up the challenge and assert themselves so that they are able to play a leading role in the formulation and implementation of the PPPs. PPPs are here to stay and many public institutions will begin to seek private sector financing and management style in the implementation of their projects in order to provide public service.

By: Emanuel Wamalwa Mumu. MBA, BA(Bldg Econ), ISU, IQSK, ACIArb

QS Chapter NEWSLETTER.

Issue 2

August, 2012

14. Wamalwa Emmanuel Mumu

29. Emer Stephen Ray

15. Sheila Kaijuka

30. Batange Jonathan

16. Walubi Oscar

31. Kengingo Viola

17. Bakayana Abby

32. Okema James Henry

3. Nathan R. Behangana

18. Kibwami Nathan

33. Kabuye Emmanuel

4. Abel Bikandema

19. Mugyenyi Barbra

34. Mukasa Tom Joseph

5. Virgil Omeke Idusso

20. Tusiimire Maurice Baitwababo

35. Tumusiime Rebecca

6. Cyprian Inyangat Igulot

21. Laker Irene Kitara

36. Muhenda George Bigyega

7. Jesse Odoi Ojara Wambeto

22. Mpaata Philly

37. Nambi Susan

Fellow 1. Paul Byoma Byabagambi 2. George W. Kasibante Lukwandwa

8. Marcellus Orando

Graduate

9. Abraham Rugumayo

1. Omufira - Gono Ann

10. David W.R.Rwanika

2. Mungati Maery Bisiikwa

11. Emanuel Male

3. Kiwu Ben Rogers

12. Ssekayiba S. B. Nyanzi

4. Thembo Isaac Tabhura

13. D. K. Ntwatwa

5. Tayebwa Duncan

14. Victor Odongo

6. Manyansi Joab Burudi

15. Mulindwa Ibrahim

7. Kyeswa Simon

16. Kaheru Phillip

8. Maina Elijah Mbogo

17. Roger Allen

9. Kaigia Solomon

18. Nicholas E. Oder

10. Kigambo Alex Daniel

19. Okello Mathew

11. Olobo Samuel

20. William Kiwagama

12. Akule George Ndei

21. Charles Muganzi

13. Owori Dan

22. Tom Senfuma

Professional Associate

14. Habyarimana Paul 15. Kalyebi Jonathan

38. Ssemadaali Nalwanga Annet 39. Ashabahebwa Brian Pliers 40. Nalwoga Joanitor 41. Muwooya Daniel 42. Muguwa Deogratias 43. Sande William 44. Akankwasa James Ravens 45. Emilu Martin 46. Anguyoz Francis Boroa 47. Semanda Julius 48. Mugisha Julius Andrew 49. Olwenyi Jude 50. Masambu Hillary 51. Atwine Davis Baryahika 52. Byekwaso Pius 53. Musiimenta Dickson 54. Mutyaba Francis

1. Eridad Nyanzi

16. Biko Ismail

2. Kaigia Solomon

17. Nyakoojo Andrew

3. Christopher Ssemyalo

18. Mwinyi Hassan

4. Patricia Musisi

19. Muhumuza Irene Peace Bakubi

5. Tibagala Proscovia

20. Kabita Geofrey

6. Henry M. Kibunja

21. Kato Peter

7. Mutalya Hudson

22. Machuki Anganyoh Nicholas. N

8. Giles Okot Odongo

23. Luwa Geoffrey Loum

9. Charles Mugooda Mpabwe

24. Lukanga Richard

Technician

10. Bayo Eric Samuel

25. Sabiiti Spencer Oyes

1. Mukyetema Moses Peter

11. Mukasa Philip Authur

26. Ddembe Ismail

2. Kaggwa Wilberforce

12. Sendikwanawa Wilson John

27. Abalo Irene Khauka

13. Kato Patrick

28. Namuswa Doreen

QS Chapter NEWSLETTER.

Issue 2

August, 2012

55. Kateregga Denis 56. Lutaaya Cynthia Kabiite 57. Lugaajju Nalumansi Milly Claire 58. Okwanga Nalule Racheal Pamela 59. Irumba Leonard Reagan 60. Egwar Moses Ogwal 61. Ngumisirize Fredrick

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1. BARKER, BURTON AND LAWSON (BBL) Plot 16 Malcom X Avenue, Kololo P.O.Box 7546, Kampala-Uganda Tel: +256 414 342 022, +256 414 342 099 Email: [email protected] 2. BIKANDEMA AND PARTNERS Amadinda House, Kampala Road P.O.Box 8463, Kampala-Uganda Tel: +256 414 233 898 3. BUILDCOST ASSOCIATES Plot 62, Bukoto Street P.O.Box 29835, Kampala-Uganda Tel: +256 414 259 386, +256 414 251 047, +256 414 312 266 181 Mobile: +256 782 656 242 Email: [email protected] 4. BUILD ECON EAST AFRICA Nsambya Housing Estate P.O.Box 2330, Kampala-Uganda Mobile: +256 772 487 792, +256 772 519 113 5. CONSULTING QUANTITY SURVEYORS Plot 15 Shimoni Road Nakasero P.O.Box 3563, Kampala-Uganda Tel: +256 414 233603 Email: [email protected] 6. C & Q ASSOCIATES Plot 14 Martyrs Drive Ministers’ Village Ntinda P.O. Box 3563 Kampala-Uganda Tel: +256 414 288 596 Mobile: +256 772 504 780 7. COSCO ASSOCIATES 5Km Kampala - Gayaza Road opp. Fishing Parking Factory P.O. Box 6490 Kampala-Uganda Tel: +256-414-531-651 Mobile: +256 772 867 991 9. DEC CONSULTANTS Suit 10, Christeve House Plot 29/29A Nkrumah Road, Kampala P.O. Box 4911 Kampala-Uganda Mobile: +256 772 447 827 10. DUDLEY KASIBANTE & PARTNERS LTD Plot 40 Bombo Road, Carol House, 2nd Floor P.O.Box 8963, Kampala-Uganda Tel:+256 414 345 027, +256 414 345 025 Email: [email protected] 12. INFRUSTRUCTURE COST & MANAGEMENT CONSULTANTS P.O. Box 21788 Kampala-Uganda Mobile: +256 712 887 976

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13. J.R. CONSULTANTS Plot 29 Old Kira Road, Kamwokya P.O. Box 33302 Kampala-Uganda Mobile: +256 712 801 768 14. KIWAGAMA KIWANUKA & PARTNERS Plot 24 Old Kampala Road, Kampala P.O. Box 2126, Kampala-Uganda Mobile: +256 712 778 005, +256 772 509 603 15. ORION ASSOCIATES 3rd floor plot 90 Kanjokya H’se, Kanjokya Street P.O. Box 24968 Kampala-Uganda Mobile: +256 772 460 578 16. QS-PARTNERSHIP Floor 11 Crested Towers P.O. Box 16557 Kampala-Uganda Mobile: +256 772 460 646 17. QUANTUM BUILD & ENVIRONMENT CONSULTANTS Luzira, Kampala P.O.Box 35666 Kampala-Uganda Mobile: +256 701 338 176 18. RIDGE CONSULTING Plot 2D/E Nakasero Hill Road P.O. Box 6852 Kampala-Uganda Mobile: +256 772 405 698, +256 782 007 021 19. SIGMA IMMOBILI Plot 1466 Tank Hill Road, Muyenga P.O.Box 34106 Kampala-Uganda Tel: +256 414 510532 Mobile: +256 782 403 534 Email: [email protected] 20. SURVECON LTD Plot 37 Kira Road P.O.Box 4940 Kampala-Uganda Tel: +256 414 540107 Email: [email protected] 21. TS CONSULTANTS Uganda House, Plot 8-10 Kampala Road, 3rd Floor, Suite No. 10 P.O. Box 5620 Kampala-Uganda Mobile: +256-772 491 689 22. YMR PARTNERSHIP 22A Golf Course Road, Off Wampewo Avenue, Kololo P.O. Box 7742 Kampala-Uganda Mobile: +256 772 642 167, +256 772 522 785

QS Chapter NEWSLETTER.

Issue 2

August, 2012

QS Chapter NEWSLETTER.

Issue 2

August, 2012

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Issue 2

August, 2012