High value information in quantity surveyor organizations

High value information in quantity surveyor organizations Shen XU1 Llewellyn C. M. Tang2 Abstract: Throughout the construction project process, quantity surveyors make decisions based on various information sources. By judging the value and quality of information subjectively, they still rarely find the key information to get the tasks done. Not only because the value and quality of information are different in nature; information quality is context-independent while information value is contentdependent that is very difficult to be quantified, there is also a lack of information assessment methodology. The research challenges to the quantity surveyors are, "how can information be assessed as high value; is it possible to establish a filter mechanism to quantity the value and quality of information within the context of quantity surveyor for future reuse?" This paper first reviews the urgent request on valuing information in quantity surveying firms. A further investigation into how the quantity surveyor's work is conducted that identifies and classifies the information generated from a construction project. The intrinsic characteristics of information for the quantity surveying practice had been proposed and conduct a concept map of information in quantity surveying firm. An investigation on current information valuing methodologies in construction, regarding proposed concept map of information, has been conducted but result in a suggestion on implement statistical method in KM. A Bayesian-based information filtering mechanism is introduced for quantity surveyor’s evaluation on information. Further researches should be carried on to test this model for multi-context evaluation in quantity surveying firms. Keywords: quantity surveyor, information assessment methodology, Bayesian model, building information modeling (BIM), multicontext evaluation. 1. INTRODUCTION 1 Expenditure on Information Technology (IT) has grown significantly during the last 20 years. (Anon 2010) However much of the emphasis has been on investing in the hardware and software that enables the acquisition, storage and processing of data. Consequently, a gradual shift from paper-based working to CAD and towards 3D-prototyping and 4D (Building Information Modelling) is arising. (Higson & Waltho n.d.) BIM is not only a replacement of CAD but a new concept on communication and collaboration approach for construction sector. Together with the unwritten retention policy in organisations, which is retaining every piece of documents, accelerating the ‘drowning in data but thirsting for insight’ syndrome. This syndrome can frustrate business users (Higson & Waltho n.d.) Various researchers had addressed information as the core element in construction collaboration. (Higson & Waltho n.d.; Petrides 2004a; M. Darlington et al. 2008; Yuyang Zhao et al. 2008; Barry 2002; Macauley 2005; Moffett & Hinds 2010; Llewellyn C.M. Tang et al. 2008) It is a critical component of construction effectiveness, to see how information is created, shared and sustained through its lifecycle. The services provided by consulting organisations are informationand knowledge-based, and the ever-increasing amount of these services has driven the way that teams within a company collaborate. Thus, effectively managing information is crucial to supporting collaborative working in construction consulting organisations. This in turn shifts the emphasis from the management of information (storing information to exploit it) to managing with information (harnessing information to gain competitive advantage across the organisation). Therefore a more holistic approach is required which aligns the information and 1 Ph.D. Candidate, School of Construction Management and Engineering, University of Reading, Reading, UK; RG6 6AW; Email: s.xu@pgr.reading.ac.uk 2 Lecturer, School of Construction Management and Engineering, University of Reading, Reading, UK; RG6 6AW; Email: l.tang@reading.ac.uk technological needs of the organisation with people, business model and processes. The paper is organised as follows: Section 2 reviews the possible BIM’s influence on quantity surveying practice, and the urgent request on information evaluation in quantity surveying firms. Value of information had been review in section 3; before the investigation on information management system in quantity surveying firm in Section 5, Section 4 objectified information in quantity surveying workflow, and identified major information objects during the project process. Based on above analysis in quantity surveying firm regarding information, section 6 illustrated a concept map of information, and review current existing approach on information evaluation for selecting a sufficient method for proposed information concept map. Statistical method is suggested for KM, and Bayesian network is introduced for a future research, as well limitations on this concept map. Conclusion can be made that there is a potential of supersede quantity surveyor by building information modelling, retain high value information in quantity surveying practice is urgent and necessary for future development on building information modelling. Statistical method, e.g. Bayesian, can be another kind of technology to record and track the possibility of high value of information. 2. QUANTITY SURVEYING AND BIM Quantity surveyors exist everywhere in the construction industry (Poon 2003). Conventionally, quantity surveyors’ services include the preparation of preliminary estimates and feasibility studies, cost plans and schedules, and bills of quantities. Quantity surveyors draft and compile documentation for construction contracts, and prepare and analyse construction contract tenders. They also provide advice on contractor selection and financial management of all construction works and allied reporting, including auditing, planning cost and indexing. They provide construction project management services as well as value management, facilities management, management contracting, construction dispute resolution, research, and other forms of consultancy services. (Nkado 2000) Notwithstanding the roles quantity surveyor plays in different services, the measurement and pricing are basic abilities of quantity surveyor. (Hardie, Miller, Manley & McFallan 2005) Measurement ability can be described as an interpretation of drawings, however, it can be superseded by building information modelling (Aouad et al. 1993) BIM's potential of automatic measurement may threaten the requirement for quantity surveyor's service, and Olatunji et al. (2010) revealed that BIM is boosting the eclipse of quantity surveyor's practice, and in next 10 years the boundaries may have shifted. In addition, the chief challenges on automatic measurement and pricing recently are, regarding measurement, the BIM date should be filtered to comply with the rules prescribed in relevant Standard Methods of Measurement (SMM). Pricing requires cost information generated from previous similar construction project and quantity surveyor's experience on the price fluctuation in the real market. Concentration on technology leads to the development of building information modelling, which building up a mega database of construction project and integrate quality, time and cost information together, may drown professions in data. Although BIM opens opportunities for multiple disciplines to share and exchange data (Tse et al. 2005), threaten to all professions involved in construction is significant. Given above possibility and challenges, it is prudent to evaluate information, not only of quality, but also value, in quantity surveyor's contexts for consolidating the use of BIM. Information will not be necessarily scarce in building information modelling, though well-analysed, well presented, and well-disseminated information is not always available. Thus a sufficient information evaluation methodology, to filter high value information for reuse, retain, and accumulate, is urgently required in quantity surveying organisation. 3. VALUE OF INFORMATION Construction companies are willing to pay for information depending on how certain and uncertain they are, and on what are at stake. They are willing to pay for additional information, or value-added information, as long as the expected gain exceeds the cost of producing, processing and rendering the information. More specifically, the value of information largely depends on several factors:  The degree of uncertainty,  The consequence of the decisions,  The rationality of a decision maker,  The cost of acquiring information to make decisions, and  The availability of the best substitute for the information. VOI depends on the mean and spread of uncertainty surrounding the decision in question. For example, Evans et al. (1988) revealed that the value of information depends on the availability of actions. In particular, if few actions are available, a piece of information can then has little value even if it virtually eliminates the degree of uncertainty. By contrast, if the costs of actions widely diverge, for instance, the choice of material in variation, then information about total cost of variation may be quite valuable even if it reduces uncertainty very little. In this case, the value of information relates to the accuracy of the estimation on total variation. In other words, the more specified information is the more value it can bring. Furthermore, the authors also illustrated that VOI can be measured based on a given quality of information, or on how its value changes with different attributes of information such as greater frequency of collection or improved accuracy. However, decision- makers may find it difficult to value a piece of information especially if it has no intrinsic value (Broady-Preston & Williams 2004) and is time- dependent. Methods have been devised to assess information value to a company, but are usually simple and ignored the rationale of the decision-makers. ( Tang et al. 2008a) 4 DEFINING INFORMATION SURVEYING FIRM IN QUANTITY Before moving on to next section, it is important for us to define information at first, as definition of information has a great diversity in usage and interpretation. Two fundamental theories of information are as below, first view knowledge/information as a verb, a process, and second view knowledge/information as a noun, as a thing. Brenda Dervin systematically proposed Sense-making Methodology, which viewed information as a verb, and can not be managed but only can be studied to improve the process of making sense. (Dervin 1998) From this point of view, Dervin missed an essential part of information that is a container is essential for the dissemination of information. On the other hand, (Buckland 1991) viewed information as a thing, he categorized information into four aspects, which are information-as-knowledge, information-asprocess, information-as-process, and information processing. These four aspects described the pattern of information when information existing in the real world. Therefore, Dervin described information from individual's perspective, and Buckland described the existing pattern of information. They are both correct in some extent, but an integration of these two views can be illustrated as below. Information is both a verb and a non, it's pattern is interchangeable. When information is disseminating in the world, a container is essential, consequently, it can be objectified into entity. When individual attempt to interpret the 'information' to get being informed, it is a process, an 'act of thinking'. Regarding information evaluation, author adopted a definition of information within the context of the practice of quantity surveying. Consequently, an analysis on project cost information can be conducted and clarify what sort of information we are talking about. At first, author need to distinguishing information from date. Data represents a fact or statement of event without relation to other things. Ex: 23456. Information embodies the understanding of a relationship of some sort, possibly cause and effect. Ex: This house area covers 23456 square meters. Based on this understanding of information, where information is the meaningful content of a description, it can 'informs' understanding and knowledge. Apparently, information, in this understanding, is 'abstract and intangible, immaterial'. However, this definition of information has a high level of abstractive, practicable speaking, it is difficult to be evaluated. Notwithstanding the abstractive understanding on information, it also can be considered as a thing, where documents, e.g. cost planning etc., are carrying 'information'. Thus information can also be a tangible object. Information Object (IO) is being introduced in this research, and this term had been used variously in information research. (CCSDS 2002; Currall & McKinney 2006; Ziad & Kittredge 2005) Information Objects including mainly two parts, which are physical (e.g. a tendering document, a written report on cost planning) and digital object (e.g. web page etc.). Apparently, document does not exist along, it is composed by subpart of information object, which can exist solely and still be informative. This suggests a lesser part of information carrier, which named 'Information Fragment'. (Darlington et al.2008). 4.1 Analysis of project cost information system Project Individual project Including Unit project Including Work piece Including Item project Including Inspection lot 4.2 Information objects in QS Including Quantity Machine fragment. By receiving the drawings of building, quantity surveyor interpret drawing into measurements according to standard methods of measurement (SMM), which will be viewed as information fragment. After being given a title, in other words, the measurement has been categorised into documents, it has been viewed as an information object, and is a tangible information entity, e.g. bill of quantities. Material Labor Estimation One of cost information objects had been identified, the rest of them can also be identified throughout the construction project process. The major information objects can be illustrated as Figure 3 The outline of cost information management. Cost estimation Project responsibility objective cost Cost information Project planning objective cost Tendering documents Figure 1 The anatomy of project cost information Figure 1 shows a typical construction project cost information system, normally, construction project will be gradually divided into smaller part until individual can handle it, which is the inspection lot. For providing cost information, inspection lot will be analysed with quantity, price (Machine, Material and Labour) and estimation. In the view of information management, 'quantity' can be viewed as an information object. The work flow of quantity can be illustrated in figure 2, Objectify information in quantity surveying work flow (Quantities). According to the definition of data, represent a fact, quantity surveyor reviews physical feature of building as raw data. The raw data with meaningful context and relationship, normally represented by drawings, can be categorised into information Sub-contract payment Material payment Final account Machine payment Management payment Financial statement Other payment Variations Actual cost calculating Tangible container: Drawings (with physical feature of building And their meaningful relationship) Certification of payments Responsibility objective cost calculating Planning objective cost calculating Cash flow analysis Comparison of three figures Viewed as da o Al Data ng w ith an st rd Intangible Information Entity: Knowledge s Improving cost management Standard Methods of Measurement Quantity surveyor interpretation on data Cost information database Figure 3 The outline of cost information management Co Viewed as Measurements on buildings nt e E. xt-b g. Ti eari tle n g Information Fragment Viewed as Tangilbe Information Entity: E.g. Taking off Bill of quantities Information Object Figure 2 Objectify information in QS’s work flow These major documents represent the information involved in quantity surveying firm, which by revealing the characteristics of these documents can represent the nature of the information and assist the measurement of information quality and value. At this stage, author proposed five common characteristics which widely used in information evaluation for the further discussion of this paper. (Yuyang Zhao, Tang, Mansur Darlington, S. Austin, et al. 2010; Tang, Yuyang Zhao, S. Austin, Mansur Darlington & Steve Culley 2008b) Five characteristics are as below:  Accuracy  Currency  Trust  Usefulness  Completeness Key questions What information is held? How it is held and managed? w Bu flo sin es on s ati in rm fo fo rm in ati ct on How it flows through inter-organizations and systems oje flo w Colloberation-Level Pr After objectifying information in quantity surveying firm, the flow of these pieces of information can be studied. Figure 3 illustrate the internal/external flow of information. Begin with the discussion on the task items of managing information, this is important to understand the formal and informal activities within organization. The task items of managing information activities in a Quantity Surveying organisation may fall into two categories. One is the record-involved task, which needs a person to seek, analyse, and input some information, such as to make a plan for cost management. (Zhiliang & Liang 2004) This category of task is a formal activity that contains a series of stages, such as submission, auditing and approval of information. Another item is record-free task, which needs no input of information but a further analysis on the result of certain activities, such as monitoring the efficiency of running an information management system. These two tasks can be transmittable, which means record-free task may turn to record-involved task under certain circumstances. Within quantity surveying organization, information fragment can be regarded as a record-free task, mostly, it is being monitored but rather than recorded. Information object is through the formal process of submission, auditing and approval, and then finally recorded within organization. Generally, information involved in a Quantity Surveying organisation can be categorised into three levels (See Figure 3: Information flow in quantity surveyor firm), the enterprise-level, the project-level, and the operational-level. The enterprise-level management activities include preparing objective costs for the project team. This helps monitoring the progress of a project and coordinating a project, while all the project-level management activities cover the rest of the necessary management activities regarding to the same construction project. The operational-level covers more detailed activities involved in project, for instance including bill take off or quantity calculation.(Ashworth & Hogg 2007; Christabel & Vincent 2003) The questions regard information raised by different context levels has a various focus. Based upon comprehensive literature review, and personal observation, a comparison between three levels on information evaluation process, impact horizon, role, key question, value, and information entity type is being carried on. (Darlington, et al. 2008) Operational-level, as the name implies that individual is more tasks driven, he holds the question regards information is more specified on his task/works assigned by upper-level. Individual evaluates information entity in respect of a current or predictable need. Obviously, the impact of the information is current or near future. This process is mostly a personal process. The key questions raised by operational-level are e.g. what is the information used for? Where could I achieve it? (See Figure 3) Consequently, the value mean to this level is the capacity to fulfil an information need, to solve a problem incurred in the task, or to support a decision. Regarding this level, the majority type of information entity is information fragments, e.g. facts and figures. Project-level, as a team leader, will predict information's future capacity on satisfying employees' need. The impact of information in this level is shorter term, but tactical. The manager will regard the team as a whole, much consideration on team but External 5. INFORMATION MANAGEMENT SYSTEM not as an individual. The key questions in the project level are: what gaps are there in the information? Who else need this information without proper access? The value of this respect is the capacity to support the work flow process within team. Project manager is dealing with information objects, which is a formal activity within company, e.g. standards/regulations, guides, and manuals etc. Enterprise-level, as the hierarchy shows, the higher level it is, consideration will be focused on company as a whole. As a consulting quantity surveying firm, several projects are being carried on together. The main purpose of this level is to allocate resources between different projects, and make the company to act profitably. Consequently, the information involved in this level is strategically and long term. The key question for senior manager is how critical is this information to the operation of the business. The entity type of information concerned by this level is information system, e.g. tools(CAD, EDMS, BIM, etc.) The value senior manager addressing is that increasing company competitive. Apart from internal information flow, the external flow of information is collaboration level. As figure 3 shows, generally speaking, this level in consulting quantity surveying firm involves three participants in terms of context level, e.g. clients, enterprise level, and project level etc. In addition, more participants in terms of organizations should be brought in, e.g. contractor, designer, and sub-contractor. The investigation on these participants is far Information Fragment Flow Information Object Flow Enterprise-Level Management Activities Internal It is far beyond this research paper's topic to reveal and rank all the characteristics, however, other characteristics should be investigated in another research paper. Nevertheless, it is still sufficient to hold a discussion on information evaluation and draw a concept map for information. Submission-Auditing-Approval Record-involved task Project-Level Management Activities Key questions Key questions How critical the Information is to the Organizations' strategic goals? What gaps are there in the information? Who else need this information Without proper access? Monitoring Record-free task Operational-Level Activities Key questions What the information is used for? Where information And information resources are being duplicated? Is the information sufficient for my gourp? Figure 4 Information flow in a QS firm beyond this research paper. Based upon the investigation between different contexts within consulting quantity surveying firm, it is apparent that high value information for enterprise level may mean nothing to operational level or project level and vice versa. Indeed, the definition of value varies with the purpose, viewpoint and intent of the person who defines it (Miles 1972). Processing and interpreting data to make them usable can often be a major roadblock to realizing the value of data and information that at the same time, depends on the rationality and irrationality of a decision maker who judge the value and quality of it. Therefore, information value is context sensitive, the judgement criteria, the results, and the process is context depended. In other words, the context has huge impact on the total value of information, and the information has a unique value in each contexts. High value information for project level may not remain high value to different context level. 6. THE CONCEPT MAP OF INFORMATION IN QUANTITY SURVEYING FIRM Information Fragment Including Determines Context Collaboration Level Information Has Content Has Including Determines Enterprise Level Project Level Impact Operational Level Information Object Has Updates Has Affects Influences Value Purpose Influences Decisides Influences Influences Influences Reflects Decisides Quality Relevance Confidentiality Actions Influences Includs Cause Accuracy Decides Determines Currency Trust Usefulness Can be Can be How I work Completeness Is affected by Is affected by To others Now Can be Decides In the future Culture Souce Figure 5 The concept map of information After investigating information object, information system, and information value in quantity surveying firm, a concept map of information can be drawn as above, Figure 5 The concept map of information. First, information has content. Information is composed by information fragments, and information objects. After being objectified, the classification of information in quantity surveying firm can be conducted. Though the Content of information affects the classification, as it is the purpose of using information, the term classification is replaced by Relevance. Apparently, Relevance determines purpose, the purpose of using information, which influences the value of information. Furthermore, Content has quality, which quality can be assessed by characteristics, e.g. Accuracy, Currency, Trust, Usefulness, and Completeness etc. In addition, Relevance also determines Usefulness. Second, information does not exist in a vacuum. Information flows through different contexts, internally from Operational-level to Project-level and Enterprise-level. In addition, external flow of information is named Collaboration-level, which compose of Enterprise-level and Project-level. Context decides individual activities, which are formal and informal. These activities can update information within firm. Furthermore, context also determines the purpose of using information, as well as impact of information. Consequently, the Context is an explicit factor that affects the value.(Zhao et al. 2008) Apparently, the concept map of information shows that information quality is context-independent while information value is content-dependent. 6.1. An information evaluation approach Based on the comprehensive understanding on the linkage between information value and information quality, context, and relevance, as well as the explicit barrier on valuing information, conclusion can be made that when information need to be valued, to calculate out it's value, the commonly used methods are inadequate because of its tangible and intangible characteristics. Literature review throughout supply chain management, VOI for risk management, project management, and business management, no such assessment methodology is sufficient to conduct valuing information in quantity surveying firm, especially in a multicontext evaluation.  In the domain of supply chain management, works are focused on the information flow, by using a number of mathematical models to make the consistency of downstream and upstream information flow, e.g. the inventory information and production plan information, and the sales information and demand forecasting information. The VOI lies on efficiency in information flow.(Titus & Bröchner 2005; Ben-Haim 2001; Dominguez & Lashkari 2004)  In the risk management, VOI lies on reducing risk in the decision making situation, it evaluate the cost and benefit on collecting additional information for eliminating uncertainty to decision makers. The applications are focusing on consequences of a decision, clarify any potential loss from an error decision in uncertainty to identify the valuable way collecting information. (Yokota & Thompson 2004)  In the management domain industry, e.g. construction, aerospace etc. Information quality is context-independent while information value is content-dependent. As well there is no intrinsic value, decision maker struggling on valuing information. Methods have been devised to assess information value in relation to the profitability of a company, e.g. SAS & Shark Finesse-'Unlocking the Value of Information' , The National Archives'Information Management Value Model', are simple and ignore the rational of decision maker. (Zhao et al. 2008; Higson & Waltho n.d.; EURIM 2009) 6.2. Limitations and future research In this research paper, we have addressed the contexts' importance to the determination of information value. However, the terms, e.g. near future, short, long, used to describe the impact are vague. Impact Sensitivity Categorization can be applied into the study of impact of information in different contexts. (Kass 2006) Quantifying the impact will be provided in another research paper. There is scanty elaboration on the quality of information in this paper; however, the five proposed characteristics of information are sufficient for building up a concept map for evaluating information. Identify, rank, and analysis on the characteristics of information will be a future research. On the other hand, throughout literature review, notwithstanding KM applications development is a problem-oriented domain, statistical method is suggested to implement in KM. (Liao 2003) Author identified a different social studies methodology, a statistical method to record the information value and track the possibility of high value of information. Zhao et al. (2008) proposed and tested Bayesian network in information evaluation in engineering organization. However, Zhao et al. (2008) addressed the importance of context, and multi-context evaluation should be conducted, their tested model is lack of context criteria. This lack of research should be conducted, as we highly illumined the role of context level played in information evaluation process. 7. CONCLUDING REMARKS It can be concluded that there is a shift of emphasis, from the 'Technology' to the 'Information', and organizations require a sufficient methodology for valuing information, especially in quantity surveyor practice, as the adoption of BIM will radically redefine traditional QS's professional boundaries or even supersede their jobs. To respond this urgent request, a concept map of information is proposed as a frame work for quantity surveying firm to classify, objectify, and evaluate information for retain, reuse, and leverage information within firms. This paper addresses the problem of assigning value to information in quantity surveyor practice. It reviews the literature related to the topics of information in construction, building information modelling, value of information, and quantity surveying practice. Through the review, information fragments, and information objects have been applied into quantity surveying work flow. A basic context levels of consulting QS firm has been identified, as well as, their general questions regarding information within organization and collaboration. The rational of decision-makers on evaluating information has been illumined. An initial industrial investigation has been conducted on the classification of information generated from quantity surveying practice. An information concept map has been developed based on the key information attributes identified from the literature and quantity surveying sector. At this stage, three major attributes have been identified and their linkages have been drawn in the concept map for future research. There is one hypothesis in the map. Information quality is not equal to value. Information quality is context-independent while information value is content-dependent and context-sensitive. Statistical method is suggested to implement in KM. Indeed, with the adoption of BIM, as well as the fast development on searching engines and collaboration tools, finding information in storage is easier than ever before. However, high value information can drown out by massive information flow and in storage. Putting a value tag on used/searched information would increase the reusability of information. REFERENCE Anon 2010, “Building on IT 2010: First IT expenditure benchmarking report dedicated to the UK Construction industry for 18 years.” National Computing Centre. 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