The scope and deliverables are set by the Client and their representatives and are agreed by the Contractor and their team. In a typical construction project, the scope and deliverables are defined, agreed and priced pre-contract, i.e. prior to contract execution. This means the scope, deliverables and budget are fixed unless explicit change is agreed (to be discussed in future courses). In some cases, the Quantity Surveyor will have early involvement and input in order to help and agree the deliverables and budget, however this is not a privilege in most cases.

Pros

• Actual requirements are clarified against what is expected and what is to be delivered. Specifications are set so that methodology can be capitalised to achieve value engineering.

• Defining the scope and deliverables will guide towards common goals so that all individuals can work to achieve a single objective. With an agreed scope, the roles and responsibilities can also be allocated, programmes will be set and budgets are forecasted with activity driven costs.

• Deviations from defined scopes are easily noticed and captured. Delays to programme and resources can be highlighted and managed when comparing to an agreed scope / deliverable.

• Contractual obligations are pre-understood and therefore adhered to, breaching scenarios will have pre-agreed procedure and routes to corrective measures / remedial actions. Payment terms are also stipulated to help manage expenditures and regulate cash flow.

Cons

• Any errors and discrepancies in budget, scope, terms and requirements are absorbed by both parties, more so with the party whom has drafted the contract.

• Any shortfalls in designs and or requirements can be incorrectly budgeted / priced causing margin erosion. In extreme cases the designs are impractical and can not be delivered / built.

If the scope and deliverables are not complete or clearly defined then it would be ideal to choose a contract which shares the risks associated with budget between Client and Contractor. Should there be a set of requirements only then the Client will adopt all the risk in budget, finally if the scope and deliverables are clearly defined and understood then the Contractor is expected to retain any risks associated with price. In the NEC 4 suite of contracts the former example would warrant an Option C / D Target cost with Pain / Gain Share, the second would suit a Option E Cost reimbursable and the latter example would opt for an Option A / B Lump sum price. A detail breakdown of this is explained within more advances courses.

The Quantity Surveyors role would be to agree the type of contract to accept from the Client. This should be dependant on the level of detail provided by the client within the defined scope and deliverables as stated above.

Once the contract is agreed, the Quantity Surveyor will breakdown the budget into individual elements that make up the scope of works and monitor actual costs against these elements. Any discrepancies will be investigated and adjusted accordingly via the change control process to increase the budget or value engineering to reduce actual costs. It is therefore paramount to understand in detail what the scope entails and what has been agreed to within the contract. Any changes to the defined scope whether it be design, requirements, programme, specifications or external factors, will need to be captured, communicated and agreed. Again, the change control process will need to adopted in these instances.