Counting cost is its forte
Quantity surveying firm Perunding Kos T&K takes cost control and budgeting seriously
For any project – be it small or one that runs into billions – costing is the key. Deriving the estimates for the project is both an art and a science.
Consultants run through projects with the help of software to derive estimates. But the final analysis requires a special art.
This is where seasoned consultants such as Datuk Peter Tan Choon Hoo comes in.
The 63-year old founder of Perunding Kos T&K Sdn Bhd keeps stressing on the importance of planning in deriving the costing of a project.
The quantity surveying firm which he founded in 1991 had made a name for meticulous planning when it comes to helping clients plan development cost as well as keeping the cost in check.
“I always tell my clients that we would like to look at things in greater detail. Our philosophy is to minimise variation orders,” he says.
Tan explores with clients in a high level of detail from the start of the projection.
“We measure twice and cut once,” says Tan, emphasising the degree of how careful they are in estimating cost.
Such attention to detail has gotten him to keep to his clients’ cost control measures and budgeting. Without any major changes in their development plans, the development cost would likely vary between 2% and 5%, which is a contingency that they are prepared for.
In 2012, the company started implementing building information modelling (BIM) software which gives it a 3D view of a project. This gives it an even higher accuracy from its previously 2D softwares that was implemented since 2006.
BIM is an intelligent 3D model-based process that gives architecture, engineering, and construction professionals the insight and tools to more efficiently plan, design, construct, and manage buildings and infrastructure.
Last year it invested about RM400,000 in the hardware and software infrastructure to further improve its service to clients and next year it is looking to invest a further RM250,000.
The company also offers internship to about 30 students a year to train potential candidates. Starting them young with the right training is something that Tan believes in.
Tan, who graduated from a university in Australia majoring in quantity surveying in 1978, says he takes pride in his meticulous planning and every time he looks at a building that he had offered his quantity surveying and cost control services, he would think about how happy the owner is with the profit made.
“Quantity surveying is the unseen part where many people think that all you need is a good design. If it is out of your budget, the development cannot take place,” he says.
After spending a few years working with the local government in Australia and being a partner with a Melbourne-based quantity surveying firm, Tan says he wanted to come home to Malaysia.
“I wanted to come back to my roots. I remember in the English proficiency test I took before starting my degree where I have to write an essay on why I wanted to study overseas, I wrote that I wanted to learn the best from them and to come home to contribute to the Malaysian society,” he says.
And Tan did just that, contributing his knowledge to Malaysia’s construction industry since 1991. He started with an office in Klang with two other partners.
It was an uphill climb for him as he had to start from scratch, building his network and understanding the rules and regulations in Malaysia.
In 1992 it had its first client who was developing residential houses.
Today the company has over 50 clients and had completed over 600 projects varying from mixed development, hospitals, schools, hotels, logistic hubs, factories, data centres to satellite centre facility.
Some of these projects have gross development values of RM10mil to RM5.5bil.
“We are able to achieve a lot with the talents we have. My senior partners alone have a cumulative experience of over 100 years,” Tan says.
After all, Tan says, quantity surveying involves having a good grasp of architectural and structural design, physics of a building and the building materials.
This is because it offers value engineering which also involves beams and columns to the concrete slab designs. All these elements are particularly pertinent in high rise developments.
“It is common to have differing viewpoints with engineers and we will do option studies for the client. We will tell the engineers to draw in the structural plan what they think is best compared to our rec- ommendations and we will cost it up and let the client decide,” Tan says.
With a wealth of experience, Tan’s team is able to suggest materials and structural designs that could be substituted to meet a client’s budget. It can also advise on the products that a developer can develop with the budget involved and the expected profit margins.
Apart from that, it was also quick to adapt to changing market needs. In 2005, developers became environmentally conscious as going green is the in thing, particularly if they were targeting multinational companies who prefered being in buildings with green building certifications.
“We have to study materials that are not commonly used previously, from special glasses that offer bet- ter thermal and sound insulation, low volatile organic compounds paint to timber from sustainable sources as well as other materials and methods of construction that uses a lower carbon foot print,” he says.
This learning process includes visiting and learning from the best practices of green building construction from other countries.
“You might think that our job scope is very technical but it is the ability to sustain the relationship that counts in the long run,” Tan says.
In fact, Tan takes the contrarian view of having demanding clients is a good thing whereas many shy away from them.
“These clients are perceived as difficult for others but for us, we think we have an edge where we are able to have a relationship with them and these clients are unlikely to look elsewhere,” he says.
The team understands that it is not about getting a contract. It is about being able to serve the clients to their satisfaction.
Also, Tan sees his business as a service and it is never perfect. It is the commitment to improve and helping the client that counts.
“People think there are difficult clients, but we think otherwise. Our clients are successful people and we understand that they are successful because they are detail orientated and precise.
“We don’t think they are difficult clients because they ask for more information and elaboration. We think it is part and parcel of the relationship,” Tan says.
EVERY morning Datuk Peter Tan Choon Hoo sends good morning messages to his staff in Perunding Kos T&K Sdn Bhd.
To the 63-year old, keeping a positive frame of mind is important and the first message of the day one thinks about is important.
An advocate of positive work space, Tan believes every little thing, from the interaction he has with the employees, the work processes at the work place to the pantry, all of which will have an influence on his employees.
Sending a positive good morning message is just a small start but Tan says they also have coffee maker in the pantry, and fridge to ensure that they feel at home. If having a good cup of coffee in the office could encourage the staff to come earlier to work or stay more productive at work, Tan is all for it.
Tan believes employees have to juggle personal life with work commitments like everyone else. Family members could fall sick, they may need to send them to the clinic or they may need to be around to supervise contracting works, be it a leaking pipe or faulty plug.
“We invested in company servers to ensure that our staff could access the related work files while being away from the office,” Tan says.
And to foster togetherness among employees, Tan organises monthly lunches and gatherings during festive seasons. They also have company uniforms to give them a sense of pride in the company they are in.
These simple thoughts for the employees had been key to Tan’s growth strategy.
In an industry where human capital is vital, Tan says the industry experiences a high staff turnover of 25% to 30%, but his company experienced a staff turnover of only 6% annually.
Tan believes it takes time and dedication to train the staff to work with the company culture and procedures. Having a dedicated team is what matters in the industry, hence any investment that could keep the staff motivated is money well spent.
Getting to the serious part, Tan says work has to be enjoyable, not a dread. Acknowledging that employees spend a large part of their time in the workplace, Tan says work has to be engaging.
This is made possible with Tan’s decision to invest in building information modelling (BIM) software.
BIM is an intelligent 3D model-based process that gives architecture, engineering, and construction professionals the insight and tools to more efficiently plan, design, construct, and manage buildings and infrastructure.
“I remember the good old days where we use manual measuring tools to do the job. It was very laborious and I cannot imagine the current generation who wants things fast being able to work in such condition,” Tan says.
Tan adds that in those years many are already saying that quantity surveying is not going to be able to attract talents as not many would want to work in such conditions.
But with BIM, time to complete an average project is reduced from 10,000 man hours to about 2,500 man hours. This also reduces guesswork which can lead to inaccurate results.
Work aside, Tan is catching up on the era of digital world where he tells the staff to treat the software like a computer game. One has to enjoy it in order to have the interest and passion to explore, which would lead to new discovery and hence increasing productivity.
Everybody wins, Tan says, adding that creating a learning environment where everyone thrives is vital.
His son, Phillip Tan Chee Yang, 25, who is also the company’s BIM director adds that the current generation needs to be carefully managed.
“They want to see the result of their efforts immediately,” Phillip says.
Graduating with a masters in construction management from a university in Australia, Phillip says there are many opportunities of using technology to make the workflow of the company smoother.
“Technology can be used to create an environment where everybody is more efficient, raising productivity and to some extent motivate the employees to contribute more to the company,” Phillip says.
Investments in technology doesn’t come cheap but Tan says: “Our policy is we invest whenever we can. When times are bad we will be in a better footing to offer better services with the technology we have.”