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Full Project – ASSESSMENT OF THE FACTORS MITIGATING THE EFFECTIVE PREPARATION OF COST ESTIMATE AT THE DESIGN STAGE

Full Project – ASSESSMENT OF THE FACTORS MITIGATING THE EFFECTIVE PREPARATION OF COST ESTIMATE AT THE DESIGN STAGE

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Full Project – ASSESSMENT OF THE FACTORS MITIGATING THE EFFECTIVE PREPARATION OF COST ESTIMATE AT THE DESIGN STAGE

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  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

To achieve the above stated aim the following specific objectives shall be pursued:

  1. To identify the factors that mitigates the effective preparation of cost estimate at the design stage.
  2. To determine the appropriate method of cost estimating at the design stage
  3. 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.

 

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Full Project – ASSESSMENT OF THE FACTORS MITIGATING THE EFFECTIVE PREPARATION OF COST ESTIMATE AT THE DESIGN STAGE

Click here to Get The Complete Research Project Chapter 1-5

RESEARCH PROJECT CONTENTS
CHAPTER ONE - INTRODUCTION
1.1 Background of the study
1.2 Statement of problem
1.3 Objective of the study
1.4 Research Hypotheses
1.5 Significance of the study
1.6 Scope and limitation of the study
1.7 Definition of terms
1.8 Organization of the study
CHAPETR TWO – LITERATURE REVIEW
2.1. Introduction
2.2. Conceptual Framework
2.3. Theoretical Framework
2.4 Empirical Review
CHAPETR THREE - RESEARCH METHODOLOGY
3.1 Research Design
3.2 Study Area
3.3 Population of the Study
3.4 Sample Size and Sampling Technique
3.5 Instrument for Data Collection
3.6 Validity of the Instrument
3.7 Reliability of the Instrument
3.8 Method of Data Collection
3.9 Method of Data Analysis
3.9 Method of Data Analysis
3.10 Ethical Considerations
CHAPTER FOUR - DATA PRESENTATION AND ANALYSIS
4.1. Introduction
4.2 Demographic Profiles of Respondents
4.2 Research Questions
4.3. Testing of Research Hypothesis
4.4 Discussion of Findings
CHAPTER FIVE – SUMMARY, CONCLUSION & RECOMMENDATIONS
5.1 Introduction
5.2 Summary
5.3 Conclusion
5.4 Recommendation
REFERENCES
APPENDIX


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