FACTORS INFLUENCING THE COST PLANNING OF 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.