FACTORS INFLUENCING THE COST PLANNING OF A PUBLIC BUILDING PROJECT

ABSTRACT

The

importance of accurate estimate during the early stage of cost planning of

capital project has been widely recognized for many years. Even so, very few

quantitative method are available that enable estimators and business managers

to objectively evaluate the accuracy of early estimates and planning. The

primary purpose of this study was to identify and examine the factors

influencing cost planning of building project in Gombe and Bauchi State as it

relates to the Nigerian Construction Industry. To accomplish this aim,

quantitative data were collected from consultant Quantity Surveyors. Each of

the respondents was asked to assign a one to ten rating for each of the 10

potential drivers of the estimates accuracy for a given estimate. The data were

analyzed using simple statistical tools which include; mean, standard deviation

and percentages were used to represent the information. The study analysis

identified 5 of the 10 factors that were most significant at the level. In this

finding the five factors, in order of significance were most significance

amount of information available, time allowed  to prepare the estimate,

experience of the consultant team, complexity of the project, and bidding and

suitability/stability of the market. Cost estimating and planning is

fundamental part of the construction. The success or failure of a project is

dependent on the accuracy of several estimates throughout the course of the

project. Construction estimating is the compilation and analysis of many items

that influence and contribute to the cost of the project. Estimating which is

done before the physical performance of the work requires a detailed study and

careful analysis of the bidding document, in order to achieve the most accurate

estimate possible of the probable cost consistent with the bidding time available

and the accuracy and completeness of the information submitted. Overestimated

or underestimated cost has the potential to cause loss to local contracting

companies

 

TABLE OF

CONTENTS

 

DEDICATIONDEDICATION 

ACKNOWLEDGEMENT       

TABLE OF CONTENTS         

CHAPTER ONE: INTRODUCTION   

1.1BACKGROUND OF THE STUDY

1.2   STATEMENT OF THE

RESEARCH PROBLEM

1.3RESEARCH QUESTIONS 

1.4SIGNIFICANCE OF THE STUDY 

1.5.0    AIM AND OBJECTIVES        

1.5.1    AIM    

1.5.2 OBJECTIVES    

1.6STATEMENT/RESERCH OF

HYPOTHESIS         

1.7   RESEARCHMETHODOLOGY  

1.7.2 QUESTIONNAIRE/FIELD SURVEY    

1.8SCOPE AND LIMITATION          

1.8.1SCOPE    

1.8.2LIMITATION     

CHAPTER TWO         

LITERATURE REVIEW         

2.1       HISTORICAL DEVELOPMENT OF COST PLANNING        

2.2.0CONCEPT OF COST PLANNING          

2.2.1 ADVENT OF COST PLANNING          

2.2.2USES OF COST PLANNING      

2.2.3  Cost Planning the

Brief 

2.2.4  PRELIMINARY COST

PLANNING     

2.2.5    Cost Planning Reports 

2.2.6    THE ROLE OF

THE COST PLANNER          

2.3.0    COST PLANNING TECHNIQUES     

2.3.1    VARIOUS COST PLANNING TECHNIQUES           

2.3.1.1 Easy Cost Planning (ECP)       

COST PLANNING     

2.5.2  ELEMENTAL ESTIMATES      

The cost plan  

2.7.1.2.1          ELEMENTAL COST ANALYSIS       

2.7.1.2.2          PREPARATION OF ELEMENTAL COST PLAN       

2.7.1.3    PHASE 3 –

COST CHECKING       

2.7.2      

 COMPARATIVE COST PLANNING         

2.7.2.1  PHASE I – ESTIMATE          

2.7.2.2 PHASE 2 – COST PLAN       

2.8.0    COST IN USE –

THEORY     

2.8.1    COST IN USE

AND COST PLANNING         

2.9.0     NEED FOR COST

ESTIMATING      

2.9.1    COST

ESTIMATING PRIOR TO TENDER    

2.9.2   SINGLE PRICE RATE

ESTIMATING 

2.10.0  COST CONTROL       

2.10.1 DEFINITION OF COST CONTROL   

2.10.1.1      COST

ANALYSIS           

2.10.1.2           COST RESEARCH     

2.10.1.3           COST STUDY

2.11.0  COST PLAN   

2.12.0              APPROXIMATE ESTIMATING         

2.7.12.0           FACTORS INFLUENCING COST PLANNING OF PUBLIC  

BUILDING PROJECTS         

2.12.1 LOCATION FACTORS          

2.12.2 DESIGN FACTORS    

2.12.3 QUALITATIVE FACTORS    

2.12.4 TIME FACTORS        

2.12.4.1           PROJECT COMPLEXITY      

2.12.4.2           AVAILABILITY/AMOUNT OF PROJECT INFORMATION 

2.12.4.3           TECHNOLOGICAL REQUIREMENTS          

2.12.4.4           CONTRACT REQUIREMENT/ STAGE OF WORK   

2.12.4.5           TEAM'S/CONTRACTOR'S/CONSULTANT'S EXPERIENCE AND EFFICIENCY    

2.12.4.6           MARKET REQUIREMENT/STABILITY OF THE MARKET 

2.13.0  FACTORS AFFECTING COST ESTIMATE /PLAN   

2.13.1  Cost Information        

2.13.2    MARKET

INFORMATION  

2.13.3    EXPERIENCE OF

Q.S. / ESTIMATOR         

2.15.0. FACTORS IN SUCCESSFUL COST PLANNING      

2.16.0 DESIGN METHOD AND COST ADVICE     

2.16.1  THE RIBA PLAN OF

WORK 

2.17.0  COST DATA  

2.17.1   PROBLEMS WITH

COMPUTER MODELS  

2.17.2   THE USES OF COST

DATA 

2.18.0   COST PLANNING

SERVICES          

2.18.1  FEASIBILITY STUDIES        

2.18.2   FUNCTIONAL PROGRAM   

2.18.3   SCHEMATIC DESIGN          

2.18.4  DESIGN DEVELOPMENT (PRELIMINARY DRAWINGS    

2.18.5    

 WORKING DRAWINGS    

2.18.6   PRE TENDER

2.18.7  TENDER PACKAGE 

2.18.8   TENDER REVIEW &

CONTRACTOR SELECTION

2.18.9    FUNCTIONAL

COST ANALYSIS   

CHAPTER THREE     

RESEARCH METHODOLOGY         

3.3   INSTRUMENT FOR DATA

COLLECTION       

3.4   PROCEDURE FOR DATA

COLLECTION         

3.4       METHOOD OF DATA ANALYSIS    

3.5       SOURCES OF DATA

3.5.1    PRIMARY SOURCES OF DATA       

3.5.1.1             RESEARCH QUESTIONNAIRES      

Section A - Organisation

Information 

Section B – Questions On Cost

Planning        

Section C – Comments And

Suggestions        

3.5.2    SECONDARY DATA

COLLECTION

CHAPTER FOUR       

DATA PRESENTATION AND ANALYSIS   

4.1    

 PRESENTATION OF DATA FROM QUESTIONNAIRE        

4.1.1   STRUCTURE OD

QUESTIONNAIRE 

4.2     TESTING OF

HYPOTHESES   

4.3 RESEARCH FINDING     

CHAPTER FIVE         

SUMMARY, CONCLUSION AND

RECOMMENDATION   

5.0       SUMMARY    

5.1       CONCLUSION           

5.2       RECOMMENDATIONS        

5.3       CONTRIBUTION TO KNOWLEDGE           

REFERENCES

APPENDIX