Quantity Surveyor Agreement (Hong Kong)

A Quantity Surveyor Agreement in Hong Kong records the terms the parties accept and the commitments each makes to the other.

The QS occupies a central position in Hong Kong's construction industry, managing the commercial and contractual aspects of projects from initial feasibility through to final account settlement. Unlike jurisdictions with statutory security of payment regimes — such as Singapore's Building and Construction Industry Security of Payment Act — Hong Kong has no equivalent statute, making the QS's role in interim valuations and final account preparation especially critical for confirming contractors receive timely and accurate payment. The Buildings Ordinance (Cap. 123), administered by the Buildings Department, regulates building works across Hong Kong and imposes compliance obligations that directly affect construction project costs managed by the QS.

Pre-contract QS services include: feasibility cost studies and order-of-magnitude estimates; elemental cost plans at each design stage (schematic, design development, construction documentation); preparation of bills of quantities (BOQ) in accordance with the Standard Method of Measurement for Building Works published by the Hong Kong Institute of Surveyors (HKIS); preparation of tender documents and schedules of rates; evaluation of tenders received and preparation of tender reports; and contract documentation and execution. Government projects are procured under the General Conditions of Contract for Building Works published by the Architectural Services Department (ArchSD) of the HKSAR Government.

Post-contract QS services include: preparation and certification of interim valuations for the architect's interim certificates under the Agreement and Schedule of Conditions of Building Contract (ASCC); valuation of architect's instructions and variation orders; assessment of contractor's claims for extensions of time and associated prolongation costs; preparation and agreement of the final account; and expert witness and dispute advisory services before the Hong Kong International Arbitration Centre (HKIAC) or the Court of First Instance.

All fees under a Hong Kong QS agreement are denominated in Hong Kong Dollars (HKD). Hong Kong imposes no GST or VAT — the fee stated in the agreement is the total amount payable. The Inland Revenue Department administers Profits Tax under the Inland Revenue Ordinance (Cap. 112) on QS fee income, and QS firms must ensure their invoicing and fee arrangements comply with applicable tax obligations.

The QS profession in Hong Kong operates within a framework established by the Hong Kong Institute of Surveyors (HKIS) and the Surveyors Registration Ordinance (Cap. 417). Registered professional surveyors (quantity surveying division) must hold an accredited degree, complete the HKIS Assessment of Professional Competence, and comply with the HKIS Code of Professional Conduct. Many Hong Kong QS practitioners also hold RICS membership — the Royal Institution of Chartered Surveyors — which maintains an office in Hong Kong and accredits university programmes in quantity surveying. The HKIS publishes standard conditions of engagement for quantity surveyors that form the basis for most negotiated agreements in the Hong Kong construction market. Forms-legal.com provides a free Quantity Surveyor Agreement template compliant with the Surveyors Registration Ordinance (Cap. 417) and HKIS professional standards, available as PDF and Word download.

A Quantity Surveyor Agreement is needed whenever a client engages a QS or QS firm for professional cost management services on a Hong Kong construction or development project. The agreement documents the scope of services, fee basis, payment schedule, and professional obligations — protecting both parties and clearly defining the commercial relationship.

New building projects: Developers, property owners, and contractors engaging a QS for a new residential, commercial, or industrial building project in Hong Kong should execute a written QS agreement before services commence. For projects governed by standard forms such as the Agreement and Schedule of Conditions of Building Contract for Use in Hong Kong (ASCC) or the Government of the HKSAR General Conditions of Contract for Building Works published by the Architectural Services Department (ArchSD), the QS agreement should align with the relevant contract provisions. The Buildings Ordinance (Cap. 123) regulates building works and requires compliance with approved plans administered by the Buildings Department — the QS's cost management role encompasses these regulatory compliance costs.

Renovation and fit-out projects: Major fit-out projects — including office refurbishments, hotel renovations, and retail fit-outs in buildings managed under the Building Management Ordinance (Cap. 344) — involve complex variation and claims management that benefit from professional QS oversight. The agreement should clearly define the scope boundaries, as fit-out projects often experience significant scope changes.

Government and public sector projects: Projects funded by the Government of the HKSAR, the Hong Kong Housing Authority, or the MTR Corporation Limited typically require QS services under government or quasi-government standard forms. The QS agreement for government projects must align with the relevant standard conditions and government procurement requirements under the Public Finance Ordinance (Cap. 2) and the relevant works bureau technical circulars.

Dispute resolution and expert witness: When construction disputes arise — particularly over final account values, variation claims, or delay damages — clients may engage a QS specifically for expert witness services in arbitration before the Hong Kong International Arbitration Centre (HKIAC) or proceedings before the Court of First Instance. A separate engagement letter or QS agreement for expert services should document the scope and fee basis for this specialist role.

Insurance valuations: Property owners, insurers, and lenders may engage a QS to provide reinstatement cost assessments (RCA) for insurance purposes. The agreement should specify that the RCA represents the QS's professional opinion of reinstatement cost and is not a market valuation conducted by the Rating and Valuation Department.

The agreement should be executed before the QS commences any billable services. Where a client engages a QS without a signed agreement and then disputes fees or scope, the QS faces the difficult position of relying on quantum meruit claims or implied terms rather than clear contractual entitlements. Under Section 22 of the Limitation Ordinance (Cap. 347), contractual claims must generally be brought within six years — a written agreement establishes the clear commencement date for any limitation period analysis.

A Hong Kong Quantity Surveyor Agreement must be carefully drafted to protect both the client and the QS across what may be a multi-year engagement. Forms Legal's template includes the following essential elements.

Parties and engagement: Full legal name, address, and professional registration details of the QS firm (including Surveyors Registration Board registration number under Section 6 of the Surveyors Registration Ordinance (Cap. 417)); full name and address of the client; and the company registration number under Section 67 of the Companies Ordinance (Cap. 622) for corporate clients. A description of the project to which the services relate, including the project address and the applicable form of building contract.

Scope of services: A detailed schedule of QS services to be provided, broken down by project stage (feasibility, design, tender, post-contract, final account). Services not listed in the scope schedule are excluded and subject to additional fee negotiation. The agreement should distinguish between pre-contract and post-contract services, as clients sometimes engage a QS for only part of the project cycle. For projects under the Buildings Ordinance (Cap. 123), the scope should reference compliance with the Buildings Department's requirements as they affect cost management.

Fees and payment: The fee basis (percentage of final construction cost, lump sum, or time charge); the applicable percentage rates or lump sums for each service stage; payment milestones aligned with project stages; the procedure for issuing fee invoices; payment terms (typically 14 to 30 days from invoice); and late payment interest at the judgment rate under Section 49 of the High Court Ordinance (Cap. 4) or a specified commercial rate. All fees are in HKD with no GST or VAT. Reimbursable expenses (printing, travel, specialist sub-consultants) should be addressed separately.

Variations to scope: A mechanism for agreeing additional fees when the client instructs services outside the agreed scope. Without this provision, the QS may perform significant additional work without entitlement to additional payment and may be limited to a quantum meruit claim under Hong Kong common law.

Professional indemnity insurance: The minimum PI insurance level the QS must maintain, the insurer's jurisdiction, and the QS's obligation to provide evidence of insurance on request. PI insurance protects the client against losses arising from the QS's professional negligence — claims which would otherwise be heard by the Court of First Instance or the District Court depending on the amount in issue.

Confidentiality: The QS's obligation to keep project cost information, tender prices, and client financial information confidential under common law and consistent with the Personal Data (Privacy) Ordinance (Cap. 486). Confidentiality obligations should survive termination of the agreement.

Intellectual property: Ownership of cost plans, BOQ, reports, and other documents prepared by the QS. Typically, the client owns documents produced for the project, subject to payment of fees. Copyright in the documents may vest in the QS under the Copyright Ordinance (Cap. 528) unless expressly assigned.

Limitation of liability: A cap on the QS's total liability under the agreement, typically expressed as a multiple of the annual fee or the PI insurance limit. Without a limitation clause, the QS's liability is unlimited under Hong Kong common law.

Termination: The client's right to terminate on notice; the QS's right to terminate for non-payment; the consequences of termination (fees for work completed, return of documents); and any post-termination obligations. Limitation periods for claims arising from the agreement are governed by Section 4 of the Limitation Ordinance (Cap. 347) — six years from the date of breach for contractual claims.

Dispute resolution: A tiered dispute resolution mechanism — negotiation, then mediation under Hong Kong Institute of Surveyors (HKIS) or Hong Kong Mediation Council rules, then arbitration under the HKIAC Administered Arbitration Rules 2018 or court proceedings before the Court of First Instance — consistent with Hong Kong construction industry practice. HKIAC arbitration awards are enforceable in over 170 jurisdictions under the New York Convention.

Governing law: Laws of the Hong Kong Special Administrative Region, with disputes subject to Hong Kong court jurisdiction or HKIAC arbitration.

Sub-consultants: Where the QS engages specialist sub-consultants — for example, mechanical and electrical cost consultants, civil and structural cost specialists, or facade consultants — the agreement should address whether sub-consultant costs are included in the fee or reimbursed as an expense, and the QS's liability for sub-consultant work. The QS remains responsible to the client for all services, whether performed directly or through sub-consultants.

Fee basis and audit rights: Whether the QS's fee is fixed, percentage-based, or time-charged; the basis on which time charges are calculated (partner, associate, and technical staff rates); the client's right to audit time records and disbursements; and the procedure for fee disputes. For government-funded projects, the Architectural Services Department (ArchSD) publishes recommended scale fees for QS services that serve as a market benchmark. The forms-legal.com Quantity Surveyor Agreement (Hong Kong) template covers the mandatory elements under the Surveyors Registration Ordinance (Cap. 417) and HKIS professional standards.