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Assessment Of Tue Factors Mitigating The Effective Preparation Of Cost Estimate At Tile Design Stage
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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
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ABSRACT - [ Total Page(s): 1 ]This research assesses the factors mitigating the effective preparation of cost estimates at the design stage Accurate cost estimates are crucial to the effrctive 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 se ... Continue reading---
