US market offers opportunities for quantity surveyors

The US construction sector is showing strong signs of growth, and output is expected to increase from $1.27tr in 2024 to $1.57tr in 2028, despite rising costs and labour shortages. Alongside this, there is growing recognition of MRICS as a qualification, especially among companies with a global presence.

Multinational firms – particularly clients in finance, retail and tech – that are familiar with the high standards and ethical principles RICS membership signifies are increasingly looking for chartered professionals for their US-based projects.

I've personally been involved in bidding processes where clients specified preferences, and sometimes even requirements, for chartered cost consultants to be part of the project team. This is because they want consistent global standards in project and cost management, with the assurance of surveyors' expertise.

I quickly realised that the quantity surveyor (QS) role – more commonly referred to as a cost manager or cost consultant in the US – was much more fluid and less well defined.

Tasks that have distinct boundaries in the UK such as dealing with vendors, managing contracts and navigating the different design stages aren't so neatly separated. It wasn't that I was unfamiliar with these areas; rather that clients often see the QS as a general resource for all things cost and construction.

For example, a data centre in Virginia that I worked on in my early days here sticks in my memory. The sheer scale of the project was incredible, but what surprised me was the client's approach.

Halfway through construction the local government pulled out of the power supply agreement, leaving the client facing a huge change order and reconciliation.

This meant the centre would only have power for one of its two buildings; although the first was 90% complete, the other was still in the substructure phase. Despite this setback, the client opted to construct the second building as a shell, significantly reducing the scope of mechanical, electrical and plumbing work.

However, they had already procured and stored a substantial amount of materials. Ultimately these materials were used at the client's other sites, which required additional coordination, rescheduling and transportation expenses.

In the UK, a QS would have been involved from the outset in setting budgets, managing procurement and handling changes as they arose. However, on this project we were brought in as a reaction to the problem.

The experience – along with the fast-paced and reactive nature of US construction, where getting the schedule right often seems to outweigh detailed cost scrutiny – emphasised the fundamental difference in the client–contractor relationship compared with the UK.

My initial impressions changed as I started to understand how important it is to educate clients about what QSs can do. The company I work for is great at tailoring the services we provide, creating custom reports that fit each client's specific needs – which is essential in a market where the QS role is still evolving.

This flexibility was key on a recent luxury retail project that I worked on. Even though the client's European headquarters insisted on QS involvement, the local team usually handled costs themselves and left contract administration to the architect.

By getting involved before they even hired a contractor, I was able to show them the value of choosing the correct procurement route, making sure they met their schedule and quality expectations within their budget.

However, their internal budget – which was based on the construction of a similar shop in France during COVID-19 lockdown measures – was way off, failing to account for issues such as hyperinflation and import costs, as well as the fact that US labour and material costs are typically higher than in the EU.

By breaking down the market and location factors, we showed a need for – and ultimately secured – the extra funding required.

At the same time, we showed that engaging us before the final design documents had been prepared would have enabled a more accurate initial budget. This would have avoided the need for a later challenge and retrospective rebudgeting.

Standard contract forms such as the JCT and NEC suites are widely used, and the way they work is closely tied to the principles in the Housing Grants, Construction and Regeneration Act 1996. For example, the act's rules on payment and pay-less notices are directly reflected in what the contracts require parties to do.

This well-defined system provides a level of certainty and predictability that offers anyone starting a quantity surveying career in the UK clear roles and responsibilities along with established best practice, giving a strong base for learning and professional growth.

Graduate QSs usually take structured training programmes, often leading to RICS membership, where they gain experience in all aspects of the profession under a legally defined framework, ensuring a thorough understanding of the core principles of quantity surveying.

Furthermore, the UK construction industry offers opportunities to specialise in related positions that use the QS's core skills. The role of employer's agent, for instance, sees a QS acting on behalf of clients in administrating building contracts, often taking on responsibilities that might fall to the architect in other markets.

Similarly, fund monitoring roles involve QS expertise in assessing whether a project is viable and tracking how money is being spent on behalf of financial institutions.

They make sure projects stay on budget and meet the funders' requirements. These related roles show how versatile and transferable the core QS skill set is in the UK market.

The Construction Act doesn't have a direct equivalent across the Atlantic, which leads to more varied and sometimes less standardised ways of handling contracts.

Although standard contract forms do exist, such as those from the American Institute of Architects, the way they are interpreted and used can differ quite a bit, and the direct link to overarching legislation isn't as strong because this varies from state to state.

This less well-defined context means that educating clients about QSs' skills and capabilities is important. Often, those who aren't familiar with the UK model might not fully understand the wide range of services we can provide.

Initial meetings often involve explaining the value we bring, from early-stage cost planning and feasibility studies to advice on procurement, managing contracts and settling the final accounts.

This can be a challenge, requiring strong communication and persuasion skills to show clearly the benefits of having a dedicated cost management professional.

However, this lack of rigid definition also creates unique opportunities to tailor the QS's role to the specific needs of the client and the project.

Instead of sticking to a set list of responsibilities, this might mean putting more emphasis on managing risks, value engineering or even project controls, depending on what the client prioritises.

Unlike in the UK, where the architect and QS are distinct, the architect in the US can take on a broader set of responsibilities. These include aspects of contract administration that would traditionally fall to the project manager, employer's agent or dedicated contract administrator in the UK.

Among the other responsibilities an architect could take on in the US are managing payment applications, issuing site instructions and overseeing the contractor's performance from a contractual standpoint.

Cost estimation can also be a part of their services, because having a dedicated cost consultant or estimator isn't yet standard practice in the US – highlighting the need to educate clients on the benefits of independent, specialised expertise.

This presents an ongoing opportunity for those of us who are chartered to advocate for the value this status brings, by consistently providing high-quality services and demonstrating the benefits of our training and ethical conduct.

While ensuring widespread understanding among local stakeholders may take time, the influence of global clients and the demonstrable value that chartered surveyors bring to projects will undoubtedly contribute to greater recognition.

Whether based in the UK or US the role of QS requires a mixture of foundational knowledge, effective communication and a willingness to educate clients and advocate for the strategic importance of expert cost management and quantity surveying skills.