The Role of the Quantity Surveyor in Managing Construction Defects

The construction industry is highly susceptible to defects, which can arise from substandard materials, poor workmanship, or design errors. Such defects, if not effectively managed, can lead to increased costs, delays, and disputes, potentially undermining the success of a project.

Quantity Surveyors are uniquely positioned to manage these risks due to their expertise in cost control, contractual administration, and project oversight. Early intervention and effective cost management can significantly mitigate the impact of defects on project outcomes.

The Quantity Surveyor’s key roles and responsibilities concerning construction defects demonstrate how early intervention and effective cost management can significantly mitigate the impact of defects on project outcomes.

1.      Prevention and Planning

The most effective way to manage construction defects is to prevent them from occurring. During the pre-construction phase, the QS plays a critical role in ensuring quality standards by embedding clear specifications for materials and workmanship into the contract.

Additionally, the QS works closely with the design and project management teams to draft robust contractual clauses that define defect liability, warranties, and the rectification process.

By aligning the contract with industry standards such as the RICS New Rules of Measurement (NRM 2) and incorporating provisions for the Defects Liability Period (DLP), the QS helps safeguard against potential disputes over defects and ensures that there are financial mechanisms in place for addressing defects post-completion.

2.      Cost Management of Defects

When defects do arise, the QS’s primary responsibility is to ensure that the associated costs are properly managed. This involves:

                    i. Quantifying Remedial Works: The QS must accurately estimate the cost of defect rectification, considering labor, materials, and any consequential delays. This cost valuation forms the basis for negotiating payments with contractors and ensuring that any budgetary impacts are minimized.

                  ii. Managing the Defects Liability Period (DLP): During the DLP, the QS ensures that funds are set aside to cover the cost of defect rectification. The QS also oversees the release of retention monies, ensuring they are only disbursed once all defects have been addressed to the client’s satisfaction.

                iii. Risk Contingency Planning: The QS may allocate a portion of the project’s contingency budget to address unforeseen defects, ensuring that financial resources are available for prompt remediation without impacting on the overall project budget.

3.      Inspection and Reporting

The inspection and identification of defects are critical to maintaining construction quality. Although this task is typically performed by project managers or site engineers, the QS has an important role in monitoring and documenting these inspections, particularly as they relate to the snagging process at practical completion.

The QS ensures that all patent defects are identified and listed in the snagging report and that contractors are contractually obligated to correct them before final handover.

4.      Financial Recovery and Accountability

Instances where defects are caused by contractor negligence or non-compliance with the contract, the QS plays a vital role in enforcing financial accountability. This includes:

               i. Warranty Claims: The QS assesses whether defect rectification costs can be recovered through warranties or insurance. In doing so, the QS ensures that the client does not bear the financial burden of defects caused by poor workmanship or substandard materials.

              ii. Cost Recovery via Retention: A retention sum is typically withheld from the contractor until the end of the DLP to ensure defects are corrected. The QS manages this retention process, ensuring that the funds are only released once all defects have been satisfactorily addressed.

5.      Dispute Resolution

Construction defects frequently lead to disputes, especially when there is disagreement over liability or the cost of rectification. The QS is often called upon to mediate such disputes by providing objective financial assessments based on the contract and valuation of works. In more contentious cases, the QS may serve as an expert witness during arbitration or litigation, offering testimony on the extent of the defects and the associated costs of remediation.

6.      Post-Completion Evaluations

Following the DLP, the QS undertakes a final inspection to ensure that all defects have been rectified and that the project meets the agreed-upon quality standards. Should latent defects—those that are not immediately visible—become apparent after project completion, the QS advises on the appropriate legal or financial recourse, which may involve invoking latent defect insurance or pursuing further contractual claims.

Lastly, Through the QS’s involvement in contract drafting, cost management, and dispute resolution, they ensure that defects are not only identified and rectified but that the financial impact on the client is minimized. The expertise of the QS in handling both patent and latent defects helps to maintain the quality and integrity of the construction, ensuring that the project meets its intended objectives and is delivered within budget.

Co-Author RSU Nakiruube Josephine