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.
