Assessment Of The Factors Mitigating The Effective Preparation Of Cost Estimate At The Design Stage

Project and Seminar Material for Quantity Surveying QS

Assessment Of The Factors Mitigating The Effective Preparation Of Cost Estimate At The Design Stage


Abstract


This research assesses the factors mitigating the effective preparation of cost estimates at the design stage Accurate cost estimates are crucial to the effective realization of construction projects This research is aimed at examining the factors affecting accuracy of pre-lender cost estimate in Abuja, with a view to improving the predictive ability of clients, consultants, and contractors for better estimating. 84 questionnaires were sent out, 28 to con tractors, 28 to clients, and 28 were sent to the consultant firms respectively. 25 questionnaires were received from each of the respondent categories, representing 89% using the simple random sampling technique.

The collected data were analyzed using the Relative importance Index. The study found out that a statistically significant relationship existed between the clients, consultants, and contractor on the essential factors affecting accuracy of pre-tender cost estimate. It was concluded that: Experience and skill level of the consultants ranked with overall Ru of 0.9, project teams experience on the construction type 0.87, clear and detail drawings and specification, completeness of cost information, accuracy and reliability of cost information are the most significant factors affecting accuracy of pre-tender cost estimate were other paramount factors.

The most appropriate cost estimating method at the design stage according to the respondents ranking is subjective estimating with Ru of 0.78 and parametric estimating 0.46 and synthetic estimating 0.52. It was recommended that Clients should always engage the services of skilled quantity surveyors to undertake the consultancy services in cost estimating process.


Chapter One


Introduction

1.1 Background of the Study

Construction estimate is the amount envisages to finish a construction work. It is the probable amount that is computed to complete a construction work. It is the prediction of the amount of a project based on available data at the time of prediction.

Cost estimate was defined by business dictionary (2013) as an “approximation of the probable cost of a product, program, or project, computed on the basis of available information. So the more information is provided on a project, the more the estimate tends to accuracy. It is important in many ways. According to business dictionary (2013), “four common types of cost estimates are: Planning estimate is a rough approximation of cost within a reasonable range of values, prepared for information purposes only, budget estimate an approximation based on well-defined ground rules, firm estimate a figure based on cost data that is renewable enough for entering into a binding concrete, not-to- exceed/Not-less-than estimate the maximum or minimum amount required to accomplish a given task, based on firm cost estimate. There are more benefits in estimating the cost of a potential construction Job that is not estimating before commencement. Cost estimate, to a client, is necessary in cash flow management.

To an investor, it is necessary to support evaluation of project feasibility and to assess the scope of work. To a consultant, construction cost estimate can serve as a basis for job performance measurement (Baccarini 2004), in contract or selection, as an exhibit in construction contract disagreement, and in post work evaluation of completed jobs (work audit), and to a contractor, it is the determinant ofjob procurement (in bidding for construction jobs).


1.2 Statement of the Problem

The demand for more construction of all type coupled with tight monetary supply has provided the construction industry with, a big challenge on how to estimate the cost of construction project.

The problem of late involvement of quantity surveyor, inadequate details in the contract document, poor communication between the design team, inaccurate drawing and specification, inadequate data, unavailability of current rates of construction resources, inflation and charming in technology, finally consequent loss of project has brought about loss of client confidence in consultants, added investment risk, inability to deliver value to clients and disinvestment in the construction industry. As a result of this, it is found necessary to create solution to such problems through this research as to improve on the quality of the factors that affect the preparation of the cost estimate at the design stage.


1.3 Aim and Objectives of the Study

1.3.1 Aim

The aim of this research is to assess the factors that mitigate the effective preparation of cost estimate at the design stage.

1.3.2 Objectives
  1. To achieve the above stated aim the following specific objectives shall be pursued:
  2. To identify the factors that mitigates the effective preparation of cost estimate at the design stage.
  3. To determine the appropriate method of cost estimating at the design stage
  4. To access the factors that mitigates the effective preparation of cost estimate at the design stage.

1.4 Significance of the Study

The significance of this research is to promote good estimating to sustained profit as errors and carelessness can be costly in terms of loss of profit and project abandonment,


1.5 Scope

This research focused on the cost estimate at the design stage of public building project within Federal Capital Territory Abuja.


1.6 Limitation

In this process of this research project, there were various forms of setbacks which had a great effect on the process of this research project.

One of such set back is the inability to get the appropriate and reliable information and it book found from librarian visited, also the high cost of transportation to the various information centers visited and place where the questionnaire where given out, as well the reluctance shown by these whom the questionnaires were given to.

Despite all this, a reasonable amount t of work was achieved based on the research topic.

Complete Material Available


Assessment Of The Factors Mitigating The Effective Preparation Of Cost Estimate At The Design Stage


Project Material Download

3,000 Naira


The complete material will be sent to you in just 2 steps.

Quick & Simple…


Step One Purchase

Make payment of ₦3,000: through USSD Transfer, Bank Mobile App, ATM Transfer, or POS Transfer to:

Access Bank PlcAccount No.: 0811003731
Name: Samphina Academy
Account Type: Current

Or Click Here to pay with Debit Card

FOR CLIENTS OUTSIDE NIGERIA:
Click Here to pay with Debit Card ($15)
GHANA – Make Payment of 60 GHS to MTN MoMo, 0553978005, Douglas Osabutey 

  PAY WITH CRYPTOCURRENCY


Step Two Purchase

Send the following details through Text Message or WhatsApp Messenger | +234-8143831497

  • Payment Details 
  • Email Address 
  • Assessment Of The Factors Mitigating The Effective Preparation Of Cost Estimate At The Design Stage

The complete material will be sent to your email address after receiving your payment information | T & C Apply


  Contact Our Help Desk


You may also like:

⚠️ Need a different topic? Perform a quick search



Get A Complete Business Plan For Any Business In Nigeria

Business Plan for Businesses in Nigeria

  Business Plans in Nigeria


Assessment Of The Factors Mitigating The Effective Preparation Of Cost Estimate At The Design Stage


Disclaimer

This research material “Assessment Of The Factors Mitigating The Effective Preparation Of Cost Estimate At The Design Stage” is for research purposes and should be used as a guide in developing your research project / seminar work. For no reason should you copy word for word (verbatim) as samphina.com.ng will not be liable for any who copied the material.

The aim of providing this material is to reduce the stress of moving from one school library to another all in the name of searching for research materials. This service is legal because, all institutions permit their students to read previous projects, books, articles or papers while developing their own works. According to Austin Kleon “All creative work builds on what came before”.

samphina.com.ng is only providing this material “Assessment Of The Factors Mitigating The Effective Preparation Of Cost Estimate At The Design Stage” as a reference for your research. The paper should be used as a guide or framework for your own paper. The contents of this paper should be able to help you in generating new ideas and thoughts for your own research. Use it as a guidance purpose only.


How to defend your research work


This is a general guide on how to defend your research work:

1. Prepare For Questions:

If you are preparing for questions that may be asked during your defense, then your answers will flow smoothly and effectively. This will prove your knowledge on the subject e.g “Assessment Of The Factors Mitigating The Effective Preparation Of Cost Estimate At The Design Stage“, and strengthening your argument. Ask friends and family, read your work for them to listen to your presentation, and write down questions. You may be lucky the panel will ask you those you have already prepared on.

2. Strong Summary:

Summarizing your chapters will help keep your audience focused because it is easy for a mind to drift, so providing summaries will ensure your panel will follow along, even if they lose focus for a brief moment. Visual aides, such as graphs and power-point presentations can be very helpful. If you are going to use these, make sure you will practice your presentation with them.

3. Be Confident in Your Research Work:

Not knowing your topic “Assessment Of The Factors Mitigating The Effective Preparation Of Cost Estimate At The Design Stage” inside out will cause you to struggle and ultimately fail with your defense. You need to know the subject from every angle to ensure you are fully prepared for any question that may come your way.

4. Conclusion:

Reinforce your findings to conclude your defense. The finale of your presentation should focus on proving the work that has been done. You may need to recap on what has changed and remained unchanged, if is necessary.

5 . Listen:

Before you get defensive or recite a particular answer, make sure you truly understand the question being asked. Being a good listener is an important quality, because providing an inaccurate or off-topic answer will also weaken the validity of your paper.


Frequently Asked Questions


What factors affect the cost estimate of a project?

At early stages of the project, the cost estimate is subject to changes driven by the project’s design, scope and requirements. Project leadership needs to participate in budget and stage gate approval decisions independently from, but with consideration to the cost estimate.

Who should be involved in the cost estimation process?

All individuals involved in the cost estimating process must have clear responsibilities and the accuracy of the cost estimate should be monitored as a key performance metric for the project. Projects must have the right people involved in the cost estimation process at the right time to deliver a robust cost estimate.

What is the recommended cost breakdown for cost assessments?

The recommended cost breakdown is consistent with the IPA Best Practice Benchmarking guidance document. Building a credible and robust cost estimate is reliant on a good foundation of evidence supported by high quality data. The less robust the evidence and data available, the more uncertainty a cost estimate will have.

What are the different roles and functions in cost estimating?

Roles and functions can be broadly split into three categories: those who produce the cost estimate, those who assure the cost estimate and those who own the cost estimate: Produce – Project design, delivery and cost estimating teams produce an effective cost estimate by working in collaboration. 

Samphina Academy

Samphina Academy is an Online Educational Resource Center that is aimed at providing students with quality information and materials to aid them in succeeding in their academic pursuit.