Exploring the Inherent Estimating Risks in Quantity Surveying (QS) Consultancy Services Pricing

  • De-Graft Owusu Manu Kwame Nkrumah University of Science and Technology Ghana
  • David John Edwards Engineering Birmingham City University
  • Edward Badu Kwame Nkrumah University of Science and Technology, Ghana
  • Michael Adesi Kwame Nkrumah University of Science and Technology
Keywords: risks, inherent, practitioners, quantity, surveying, consultancy

Abstract

This study aims to identify the potential inherent risks associated with the pricing of quantity surveying (QS) consultancy services; and also to establish statistical significance of the identified inherent risks to QS consultancy services pricing. The study adopted survey questionnaire which was administered to 79 QS practitioners who were drawn by simple random sampling. The factor analysis and chi square test of independence were the main tools used for data analysis. The main inherent risks which are significantly related to QS consultancy services pricing to include corporate internal risks which comprised of associated business risks; financial risks; logistical and infrastructural risks; and managerial and operational risks.The study also uncovered corporate external risks as an inherent risk to the pricing of QS consultancy services. Corporate external risk variables identified by the study include organizational and societal risks; legal risk; and regulatory risks. Finally, the study found location risk as an inherent challenge to the pricing of QS consultancy services. Location risk factors identified by the study comprised of political risk and force majeure risk. The novelty of the paper is demonstrated by a conceptual framework, which facilitates the understanding of the interconnectivity between these risk typologies.

Published
2018-02-24