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A STUDY INTO THE RELEVANCE OF ESTIMATING OF COSTS IN
BUILDING CONSTRUCTION PROJECTS
A CASE STUDY OF THE PROPOSED REHABILITATION OF THE
ENGINEERING LABORATORY BUILDING AT THE ACCRA
POLYTECHNIC CAMPUS
(ACCRA CENTRAL)
BY
OBENG-NKETIAH THOMAS
A Research Project Report Submitted to the
DEPARTMENT OF BUILDING TECHNOLOGY
ACCRA POLYTECHNIC
SCHOOL OF ENGINERRING
In Partial Fulfillment of the Requirements for the award of Higher
National Diploma (HND)
June, 2016
i
DECLARATION
I hereby declare that this study is my own work and that, to the best of my knowledge and
belief, it contains no materials previously published or written by anyone or material which to
a substantial extent has been accepted for the award of any Higher National Diploma in Accra
Polytechnic.
OBENG-NKETIAH THOMAS ………………..... ………….............
Signature Date
ii
CERTIFICATION
It is hereby certified that, the project work has been supervised and assessed in accordance
with laid down guidelines by Accra Polytechnic
CERTIFIED BY:
……………………........................ ...................................
MRS. ADWOA AMPADU-ASIAMAH DATE
(SUPERVISOR)
……………………............... ...................................
MR. BROOKMAN AMISSAH DATE
(HEAD OF DEPARTMENT)
iii
ACKNOWLEDGEMENT
I am grateful to the Almighty God for assisting me to complete this work and sustaining me
through my studies.
I appreciate the invaluable pieces of advice and guidance my supervisor, Mrs. Adwoa Ampadu-
Asiamah has given me that helped me in coming out with this project work.
I also wish to show appreciation to all who provided me with the information for this project
work.
God bless you all.
iv
ABSTRACT
Truly, estimating plays a very vital role in the life of building construction projects. It gives
rise to reaching an estimate which may be used to predict the total cost of a project. Estimating
for the time being, has been known to revolve principally around the need for all interested
parties within a building process, but mainly the contractor to be able to predict as accurately
as possible, the cost of construction. The purpose of the study was to tell the relevance of proper
estimating practices. Observations and other research had shown estimating practices is done
poorly especially amongst people in the small scale firms. The study was aimed at assessing
the relevance of estimating of cost pertaining to building construction projects. Aim was further
broken down into simpler objectives which included finding out the level of use of estimating
as a part of building projects in Accra, examining the current building construction estimating
practices in Accra, identifying problems associated with estimating of building construction
projects and last but not least preparing cost estimates for the project under study. Broadening
the scope of knowledge on the topic established through literature reviews and encompassed
relevant subjects such as giving detailed definitions of what an estimate and the process of
estimating is, reasons for estimating, types of estimates from variety of sources, estimating in
Ghana and many more just to mention but a few. The completion of literature review gave way
to defining the methods that were to be used in data gathering which were mainly stated as
questionnaires and interviews, the type of research which was to be done, the sampling
technique which was required for the sampling and certain possible limitation which the study
was likely to encounter of be subject to. Proper analysis was done on the raw data gathered
since it meant nothing until compiled and defined appropriately. Using tables, pie-charts and
in some cases some statistical ranking such as the Relative Importance Index (RII), data
gathered were well analysed. Relevant findings such as a good number of clients and
professionals stakeholders knowing about estimates and its use as well as the estimating
process having its inherent problems which in many cases cause estimates produced to be
deficient. Summary of findings from the study were also discussed as required in this section.
Finalizing the work by concluding and recommendations were done upon completion of the
data analysis and presentation. Conclusions were fine-tuned to answer the objectives which
were stated for the study. A reasonable and workable estimate was reached for the rehabilitation
works which was to be done. Proper recommendations were stated as required to ensure the
relevance of estimating in building construction projects.
v
DECLARATION........................................................................................................................i
CERTIFICATION .....................................................................................................................ii
ACKNOWLEDGEMENT........................................................................................................iii
ABSTRACT..............................................................................................................................iv
TABLE OF CONTENTS.......................................................................................................v-xi
TABLE OF CONTENTS
CHAPTER ONE ......................................................................................................................1
INTRODUCTION....................................................................................................................1
1.0 BACKGROUND OF STUDY.............................................................................................1
1.0.1 DEFINITION OF CONSTRUCTION ESTIMATING ................................................1
1.0.2 CONCEPT OF CONSTRUCTION ESTIMATING..................................................1-2
1.1 STATEMENT OF PROBLEM............................................................................................2
1.1.1 RESEARCH QUESTIONS........................................................................................2-3
1.2 AIM OF STUDY .................................................................................................................3
1.3 OBJECTIVES OF STUDY..................................................................................................3
1.4 SIGNIFICANCE OF STUDY ............................................................................................3
1.5 SCOPE OF STUDY.............................................................................................................3
CHAPTER TWO .....................................................................................................................4
LITERATURE REVIEW .......................................................................................................4
vi
2.0 INTRODUCTION ...............................................................................................................4
2.1 CONSTRUCTION COST ESTIMATING IN PRESENT DAY GHANA ......................4-5
2.2 CONCEPT OF ESTIMATING OF CONSTRUCTION COSTS ........................................5
2.3 TYPES OF ESTIMATE IN CONSTRUCTION ..............................................................5-6
2.3.1 CLIENT’S ESTIMATES...........................................................................................6-7
2.3.1.1 FEASIBILTY OR CONCEPTUAL ESTIMATE...............................................7
2.3.1.2 BUDGET PALN ESTIMATE............................................................................7
2.3.1.3 SKETCH DESIGN AND DETAILING ESTIMATE ........................................7
2.3.1.4 BID ESTIMATES............................................................................................7-8
2.3.1.5 CONTROL RESOURCE ESTIMATE...............................................................8
2.3.2 CONTRACTOR’S ESTIMATE ...................................................................................8
2.4 OTHER TYPES OF ESTIMATES FROM DISTINCT SOURCES .................................. 9
2.4.1 ESTIMATE TYPES ACCCORDING TO THE PEURIFOY & OBELENDER ........9
2.4.1.1 ROUGH ESTIMATE........................................................................................9
2.4.1.2 DETAILED ESTIMATE.............................................................................9-10
2.4.2 ESTIMATE TYPES ACCORDING TO THE APEX PROJECT CONSULTING
(CONZELMAN, 2014) ...........................................................................................................10
2.4.3 COST ESTIMATE TYPES WITH REGARDS TO THE US GAO ......................10-11
2.5 GROUPING OF THE VARIOUS SOURCES OF TYPES OF ESTIMATES..................11
vii
2.6 WHY, WHEN AND HOW DO WE ESTIMATE FOR CONSTRUCTION WORKS.....12
2.6.1 WHY ESTIMATE THE COST OF BUILDING CONSTRUCTION WORKS .........12
2.6.2 AT WHAT STAGE OF CONSTRUCTION IS THE ESTIMATE REQUIRED .......13
2.6.3 BASICS FOR THE PREPARATION OF AN ESTIAMATE......................................13
2.6.3.1 PROCESSES INVOLVED IN THE PREPARATION OF ESTIMATES ....13-14
2.6.3.2 PROCESSES INVOLVED IN THE ESTIMATING OF COSTS FOR
BUILDING CONSTRUCTION PROJECTS .........................................................................14
2.6.3.2.1 PLANNING THE WORK...........................................................14-15
2.6.3.2.2 QUANTITIES...................................................................................15
2.6.3.2.3 COSTS AND PRICING ...................................................................15
2.7 PERSON(S) RESPONSIBLE FOR ESTIMATING OF CONSTRUCTION WORKS ..15-
16
2.8 FACTORS TO BE CONSIDERED IN ESTIMATING OF CONSTRUCTION COST...16
2.8.1 FACTORS THAT AID OR HELP IN PROJECT COST ESTIMATING ............17-19
2.9 PROBLEMS ASSOCIATED WITH ESTIMATING OF COSTS OF BUILDING
CONSTRUCTION PROJECTS...............................................................................................19
2.10 PURPOSES OF CONSTRUCTION ESTIMATING ......................................................20
2.11 ADVANTAGES AND DISADVANTAGES OF ESTIMATING ..................................20
2.11.1 ADVANTAGES OF ESTIMATING........................................................................20
viii
2.11.2 DISADVANTAGES OF ESTIMATING .................................................................20
2.12 ESTIMATING AS AN IMPORTANT TOOL FOR PROJECT MANAGEMENT....21
CHAPTER THREE...............................................................................................................22
METHODOLOGY ................................................................................................................22
3.0 INTRODUCTION .............................................................................................................22
3.1 METHODS OF DATA COLLECTION............................................................................22
3.2 POPULATION OF STUDY..............................................................................................22
3.3 SAMPLE AND SAMPLING TECHNIQUES ..................................................................22
3.4 RESEARCH INSTRUMENT.......................................................................................22-23
3.5 DATA ANALYSIS............................................................................................................23
3.6 POSSIBLE LIMITATIONS TO DATA GATHERING PROCESS .................................23
CHAPTER FOUR..................................................................................................................24
DATA ANALYSIS AND PRESENTATION.......................................................................24
4.0 INTRODUCTION .............................................................................................................24
4.2 PRESENTATION AND ANALYSIS ...............................................................................24
4.3 ANALYSIS OF DATA GATHERED FROM CLIENTS ............................................24-27
4.4 ANALYSIS OF DATA GATHERED FROM PROFESSIONAL STAKEHOLDERS...27-
33
4.5 DATA GATHERED FROM INTERVIEW WITH AN ESTIMATOR .......................33-34
ix
4.6 SUMMARY OF FINDINGS FROM THE STUDY.....................................................34-35
4.7 CASE STUDY..............................................................................................................36-37
4.8 COMPUTATION OF TOTAL ESTIMATE OF REHABILITATION PROJECT...........38
CHAPTER FIVE ...................................................................................................................39
CONCLUSION AND RECOMMENDATION...................................................................39
5.0 INTRODUCTION .............................................................................................................39
5.1 CONCLUSIONS...........................................................................................................39-40
5.2 RECOMMENDATIONS..............................................................................................40-41
REFERENCES ...................................................................................................................42-44
APPENDICES
APPENDIX A: ALTERATIONS AND DEMOLOITION WORKS ......................................44
APPENDIX B: GLAZING WORKS.......................................................................................45
APPENDIX C: REPAIR WORKS TO CONCRETE ROOF ..................................................46
APPENDIX D: PAINTING AND DECORATING WORKS ................................................47
APPENDIX E: PAINTING AND DECORATING WORKS .................................................48
APPENDIX F: QUESTIONNAIRES TO PROFESSIONAL STAKEHOLDERS............49-50
APPENDIX G: QUESTIONNAIRES TO CLIENTS.........................................................51-52
LIST OF TABLES
x
TABLE 2.1: CONSTRUCTION ESTIMATING MODEL PROCESS DURING THE
DEVELOPMENT CYCLE........................................................................................................6
TABLE 2.2: A SYSTEM OF FIVE CLASSES OF ESTIMATE IN TERMS OF DEGREE OF
ACCURACY ...........................................................................................................................11
TABLE 2.3: A COMPILATION OF ALL THE VARIOUS SOURCES AND
CLASSIFICATION OF ESTIMATES....................................................................................11
TABLE 4.1: THE RESPONDENTS AGE GROUPING ........................................................24
TABLE 4.2: WHETHER TOTAL COST FALL WITHIN THAT ESTIMATED IN
MAINTENANCE WORKS ....................................................................................................25
TABLE4.3: THE NEED FOR AN ESTIMATE BEFORE PERFORMING BUILDING
PROJECTS ..............................................................................................................................26
TABLE 4.4: WHETHER ESTIMATES PRODUCED ARE ALWAYS ACCURATE FOR
BUILDING PROJECT ...........................................................................................................27
TABLE 4.5: PROFESSIONAL RESPONDENTS FOR THE STUDY ..................................27
TABLE 4.6: THE YEARS OF EXPERIENCE IN THE CONSTRUCTION INDUSTRY ...28
TABLE 4.7: OPINION ABOUT THE LEVEL OF ESTIMATING PRACTICES IN ACCRA
..................................................................................................................................................29
TABLE 4.8: THE ASSESSMENT OF WHETHER ALL ESTIMATES PRODUCED
FOLLOW THE RIGHT AND PROPER PROCEDURES......................................................29
TABLE 4.9: THE PERIOD AT WHICH ESTIMATES ARE REQUIRED THE MOST IN
CONSTRUCTION ..................................................................................................................30
xi
TABLE 4.10: A STATISTICAL RANKING OF THE TYPES OF ESTIMATES
FREQUENTLY USED IN ACCRA GHANA .......................................................................30
TABLE 4.11: THE SUMMATION OF THE A AND B FOR FREQUENTLY OCCURRING
ESTIMATES BEING USED EXPRESSED IN PERCENTAGE ...........................................31
TABLE 4.12: THE SUMMATION OF THE C AND D FOR NON-FREQUENTLY
OCCURRING ESTIMATES USED IN ACCRA ...................................................................31
TABLE 4.13: A STATISTICAL RANKING OF THE OF FREQUENCY OF PROBLEMS OF
ESTIMATING THAT OCCUR...............................................................................................32
TABLE 4.14: THE SUMMATION OF THE A AND B FOR FREQUENTLY OCCURRING
EXPRESSED IN PERCENTAGE...........................................................................................32
TABLE 4.15: THE SUMMATION OF THE C AND D FOR NON-FREQUENTLY
OCCURRING PROBLEMS EXPRESSED IN PERCENTAGE ............................................33
TABLE 4.16: THE ALL-IN-DAILY-RATE WAGES OF LABOUR ....................................34
TABLE 4.17: A COMPUTATION OF THE ESTIMATE OF REHABILITATION PROJECT
..................................................................................................................................................36
LIST OF FIGURES
FIGURE 4.1: THE ANALYSIS OF WHETHER CLIENT HAS EVER RECEIVED AN
ESTIMATE..............................................................................................................................25
FIGURE 4.2: WHETHER TOTAL COST FALL WITHIN THAT ESTIMATED IN
MAINTENANCE WORKS............................................................................................25
FIGURE 4.3: PROFESSIONAL RESPONDENTS FOR THE STUDY.................................28
1
CHAPTER ONE
INTRODUCTION
1.0 BACKGROUND OF STUDY
According to Smith (1986) pg. 1, the subject of estimating revolves principally around the
need for all interested persons or parties involved in the building process, but particularly the
contractor to be able to predict as accurately as possible, the cost of construction. Traditionally
in the construction industry but unlike many other industries, contractors have been regarded
to commit themselves to a price before carrying out any work on site and in most cases many
months or even risky occupation, although it could be said that this risk is now mitigated to
some extent by the move widespread use of “fluctuation” contracts.
1.0.1 DEFINITION OF CONSTRUCTION ESTIMATING
Construction estimating from early times to contemporary days has been defined in several
ways including;
1. It is the scientific way of working out the approximate cost of an engineering project
before execution of the work.(Swedish College of Engineering & Technology, Wah
Cantt, 2015)
2. Computation of a price with regards to time and resources requirements upon which a
firm quotation is based.(Business Dictionary, 2015)
3. It is the activity of pricing work in preparation for making an offer to carry out that
work for a sum of money. (Buchan et al, 1995 pg. 1)
4. The process of calculating the quantities and costs of the various items required in
connection with the work. (Advanced Civil Engineering, 2016)
5. An essential task for budgeting and bid preparation for any construction
project.(Samphaongoen,2010)
1.0.2 CONCEPT BEHIND CONSTRUCTION ESTIMATING
Construction contractors usually prepare bids to compete for a contract award for a project (an
endeavour with a definite start and an end, undertaken to deliver a unique product a service;
Moustafaev, 2015). To prepare a bid, first a cost estimate is prepared to determine the costs
and then establish the price(s). This involves reviewing the project plans and specifications
(quality of materials, workmanship and its protection, British Standard Institution, 1998) to
2
produce a take-off, which is a listing of all the materials and items of work required by the
construction documents. Together with prices for these components, the measured quantities
are the basis for calculation of the direct cost. Indirect cost and profit are added to arrive at the
total amount. Estimating by Cullen (2014), has over the years been applied in several fields
including but not limited to construction, interpretation of scientific experiments, project
management, quality control and many more. For the purpose of the study, the field to be noted
is the construction field. Basically estimating of cost factors for building up unit rates in
construction works are as follows;
 Cost of labour
 Material cost
 Plant cost
 Profits and overheads
1.1 STATEMENT OF PROBLEM
For some time now, within the limitations of the nation Ghana, it has been noted by
professionals and some other stakeholders of construction projects that many building
construction projects do not undergo the necessary estimating of cost functions embodied in
their works especially with those who find themselves in the small scale construction projects.
Estimating of cost of building construction project is seen as a thing of the past due to
experiences of these persons from previous works which they have ever done. This has been a
great ordeal and headache for many persons including building contractors, promoters and
many more in the sense that they do suffer the bad fruit of their negligence to do proper
estimating of cost before undertaking projects. Performing proper estimating is the last thing
which many, into building construction projects would consider doing and hence has been put
to the ground state instead of looking at it as a critical exercise. They perceive that buildings
will definitely arise and be completed whether or not the estimating of cost aspects of building
construction projects is done accurately so this exercise seeks to look at the relevance of
estimating of building construction projects in Accra Ghana.
1.1.1 RESEARCH QUESTIONS
 Why estimate the cost of construction projects?
 Who is/are the person(s) supposed to perform such function?
3
 At what stage of the construction process does one need to come out with the estimate
value?
 What factors account for the proper estimating of cost?
 Does the estimating function come with its pros and cons?
1.2 AIM OF THE STUDY
The study is aimed at assessing the relevance of estimating of cost pertaining to building
construction projects.
1.3 OBJECTIVES OF STUDY
The objectives of the study are to;
 Find out the level of use of estimating as a part of building projects in Accra.
 Examine the current building construction estimating practices in Accra.
 Identify problems associated with estimating of building construction projects.
 Preparing cost estimates for the project under study.
1.4 SIGNIFICANCE OF STUDY
The study is to tell the relevance of estimating of cost in building construction projects and to
tell the benefits to individuals, the society, construction industry and even the nation at large
on the relevance of performing such functions as it should be in, building construction projects.
1.5 SCOPE OF STUDY
The study is limited to examining the relevance of building construction projects, a case study
of the rehabilitation of the Engineering Laboratory Building at the Accra Polytechnic Campus.
4
CHAPTER TWO
LITERATURE REVIEW
2.0 INTRODUCTION
As inferred from the previous chapter, Construction Estimating has been defined in several
ways including, the scientific way of working out the approximate cost of an engineering
project before execution of the work. (Swedish College of Engineering & Technology, Wah
Cantt, 2015) Construction estimating is totally different from calculation of the exact cost after
completion of a project. It requires a thorough knowledge of the construction procedures and
cost of materials and labour in addition to the skill, experience, foresight and good judgement.
(Swedish College of Engineering & Technology, Wah Cantt, 2015) Estimating is one of the
vital functions which do help in every building construction project. Some call the estimating
function the “future cost foreteller". As per Cullen (2014), generally estimating has over the
years been applied to various fields of study and the working areas including but not limited
to;
 Construction (e.g. Building, roads, dams etc.)
 Interpretation of scientific experiments
 Project management
 Quality control etc.
2.1 CONSTRUCTION COST ESTIMATING IN PRESENT DAY GHANA
Laryea (2010) said an estimate is an important part of a construction contract. It forms the basis
of the price upon which a contract is let. But also, it could be a potential source of dispute
between the parties to a construction contract, especially when changes or discrepancies and
more cost are incurred. Therefore, the preparation of an estimate of the likely project cost
requires a sound quality of design, skilled estimating, and a sound framework within which the
estimate is being prepared.
Laryea (2010) added that, in Ghana, the estimate for a construction is often prepared by
Quantity Surveyors (QSs) who have often graduated with a degree in Building Technology
from the Kwame Nkrumah University of Science and Technology, Kumasi (Badu and Amoah,
2003). There are also some practicing QSs who graduate from a number of Polytechnics across
Ghana, with Higher National Diploma (HND) in Building Technology (Fugar and Adinyira,
2009) or a Construction Technician Course (CTC) Certificate. Most QSs in Ghana endeavour
5
to obtain membership with the Quantity Surveying (QS) Division of the Ghana Institution of
Surveyors (GhIS). However, the GhIS does not regulate the practice of Quantity Surveying in
Ghana in the same way that is done by its affiliate bodies like the Ghana Institute of Architects
(GIA) and Ghana Institute of Engineers (GhIE) who regulate the practices of Architects and
Engineers respectively in Ghana on the basis of Professional Bodies Registration. One
perennial problem in Ghana when it comes to construction is the quality and reliability of
estimates provided by QSs. Most projects in developing countries, including projects in Ghana,
end up grossly over-budget and over time (Baloi and Price, 2003). There are several reasons
for this, and some of them are partly to be shared with Architects and Engineers in Ghana who
rarely provide the detailed design and specifications needed to estimate and price a building
project or job well. Also one reason which seems to be the apparent lack of experience on the
part of those who prepare the estimates when it comes to understanding the actual detailed
processes of construction on site as well as what the client actually wants. These two factors
are relevant in achieving a good estimate of construction cost.
2.2 CONCEPT OF ESTIMATING OF CONSTRUCTION COSTS
The construction estimating function in building projects is one of the most critical work
sessions which gives rise to reaching an estimate (approximated value) to help in the building
(construct something by putting parts or materials together, Oxford Dictionaries 2015) process.
2.3 TYPES OF ESTIMATE IN CONSTRUCTION
According to Amoah-Mensah (1995), the estimating process can be said to be common to both
a Promoter and a Contractor in realizing and assessing a project. The client or promoter needs
the estimate before seeking approval for the project’s planning purposes and also be able to
ascertain the cost of the approved project (post budget stage) so that the rate of funding
commitment can be anticipated for. On the other hand, the contractor prepares the project
estimate as a basis of the bid for the completion of the works. At the completion stage of
projects, the estimate provides the basis from which cost control of the project can be exercised
by both the promoter and the contractor.
For an effective realization of a building construction project, two forms of estimates are
namely;
1. Client’s estimate
2. Contractor’s estimate
6
In accordance to Peurifoy & Obelender, (2004) the purpose of estimating is to determine the
forecast required to complete a project in accordance with the contract plans and specifications.
This type of estimate is produced by an estimator employed by a client or someone with the
authority of the client. For any given project, the estimator can determine with reasonable
accuracy the direct cost of materials, labour and equipment. The bid price can then be
determined by adding to the direct costs the cost for overheads (indirect costs required to build
the project), contingencies (cost for any potential unforeseen work), and profit. The bid price
of a project should be high enough to enable the contractor to complete the project with a
reasonable profit, yet low enough to be within the owner’s budget.
2.3.1 CLIENT’S ESTIMATES
Every building project undergoes a development cycle commencing from its conception
through design, construction, commissioning and maintenance (BS3811 (1974) defines
maintenance as work undertaken in order to keep or restore every facility, i.e. every part of a
site, building and its contents to an acceptable standard) during its economic life.
Table 2.1
COST CONTROL
(ESTIMATES CAN OCCUR AT ANY STAGE OF THIS PROCESS)
COST PLANNING
A
INCEPTION
B
FEASIBILITY
ANALYSIS
C
OUTLINE
PROPOSAL
D
SCHEME
DESIGN
E
DETAIL
DESIGN
F
PRODUCTION
INFORMATION
G
BOQ
H
TENDER
ACTION
J
PROJECT
PLANNING
K
SITE
OPERATIONS
L
COMPLETION
M
FEED
BACK
BRIEFING SKETCH PLANS WORKING DRAWINGS SITE OPERATIONS
PRE –CONTRACT PERIOD POST CONTRACT PERIOD
Table showing construction estimating model process during the development cycle
7
At each of the stages in the development cycle, an appropriate form of estimate is required to
plan for the resources and time (activities) to be involved in the process. In Table 1, estimating
methods to be used at the identified stages are as follows (Amoah-Mensah 1995);
 Feasibility or conceptual estimates
 Budget planning estimates
 Sketch design and detailing estimates
 Bid estimates
 Control resources estimating for effective monitoring
2.3.1.1 FEASIBILTY OR CONCEPTUAL ESTIMATE
This is the estimate used for determining the economic feasibility of a project, the probable
sequence and cost for construction of a project, and as a guide in the choice between alternative
locations or plans. (McCracken, 2005)
Feasibility costing is used in detailed unit price estimates where they may be referred as work
packages. Here, each contributing trade cost is fine-turned to the local area and type of project.
(Bledsoe, 1992)
2.3.1.2 BUDGET PLANNING ESTIMATE
Projects after passing through the feasibility stage, needs to be budgeted for, before
commencing with the design and this would require the assessment of the conceptual estimates
in respect of factors affecting the project’s assumed resources flow at the feasibility stage.
Preparing a budget for a project requires two basic steps thus the preparation of a rough estimate
and the creation of the detailed budget estimate. (Portny, 2010)
2.3.1.3 SKETCH DESIGN AND DETAILING ESTIMATE
The estimate required at each stage is meant to identify where better cost alter are likely to be
so as to achieve the ideal least cost design solution. With the coming out of the sketch design,
proposed space allocation of length of roads etc. would have been known and pre-determined
gross unit rate applied to obtain the estimate. (Amoah-Mensah, 1995)
2.3.1.4 BID ESTIMATES
The purpose of bid estimating is to set a basis upon which all other bids, expected to be received
can be compared. This may be achieved by the use of BOQ's, Bills of Approximate Quantities
8
etc. This bid is likely needed to set for your advertisement to be shown anywhere on the first
page of search results. The estimate is based on each keyword’s quality score (an estimate of
the quality of your advertisement, keywords, and landing page. Higher quality advertisements
can lead to lower prices and better ad positions) and competition from advertisers. (AdWords
Help, 2015)
2.3.1.5 CONTROL RESOURCE ESTIMATE
This estimate serves as a baseline to make sure cost operations flow in accordance to as
planned. That is the estimate to check whether cost factors move on track, so in the case of
appearance of variances, this estimate would help to ensure that cost correlates to the planned.
It will be a basis for one not to exceed the budgeted but to stay within and be able to make
profit in the project. (The Constructor, 2015)
2.3.2 CONTRACTOR’S ESTIMATE
This is the other form of estimate that helps in realizing of the project by the contractor as well
as the client. This estimate is prepared by the contractor or someone on behalf of the contractor
which is used as fundamentals to tender for a project. It is designed and constructed in such a
manner that a contractor may succeed in winning a contract so, much caution is taken in
assigning cost to labour, materials, plant and any other necessaries. This estimate is prepared
to be very realistic and competitive because for all one should know, not a single contractor
may venture into tendering for a job especially when it comes to the open competitive tendering
which forms one of the major methods of procurement .The processes of estimating here are
basically put into five distinct steps and they are as follows;
1. Management decides whether to accept or decline an invitation to tender (Decision to
tender).
2. Estimator gathers all necessary information and familiarizes himself with the project
(Gathering of information).
3. Preparation of an estimate.
4. Management converts estimate into a tender (Adjudication by management)
5. Submission of the tender.
All the above processes in the preparation of the contractor’s estimate as outlined have their
different or distinct factors which do affect them as part of the process of estimating which
makes each of them stand out as a different entity from the other. (Amoah-Mensah, 1995)
9
2.4 OTHER TYPES OF ESTIMATES FROM DISTINCT SOURCES
Study and other researches have proven different types of estimates even though from critical
and thorough look, they do have similarities and tend to move in the same line in terms of
meaning and function.
2.4.1 ESTIMATE TYPES ACCCORDING TO THE PEURIFOY & OBELENDER
In accordance to Peurifoy & Obelender (2004), there are two main types of estimates namely;
1. Rough/Approximate estimate
2. Detailed estimate
Pertaining to the purpose of estimate, the detailed estimate may be subdivided into three other
estimates and they are;
 Contractor’s estimate
 Engineer’s estimate
 Progress estimate
2.4.1.1 ROUGH ESTIMATE
Estimate of cost before constructing plans or architectural drawings of the project scheme,
when even detailed or structural design has not been carried out, is called rough or approximate
estimate. An estimate produced when there is little or scanty information. These estimates are
used for obtaining administrative approval from the concerning authorities. Sometimes, on this
basis, a proposal may be dropped altogether.
2.4.1.2 DETAILED ESTIMATE
This estimate is prepared by carefully and separately calculating in detail the costs of various
items of the work that constitute the whole project from the detailed working drawings after
design has been finalized. The mistakes, if any, in the rough cost estimate are eliminated in the
detailed estimate. This estimate is submitted to the competent authorities for obtaining
technical sanction. Burke (1952), pg. 76, stated other names which may be given to the detailed
estimate as definitive estimate, project control estimate, quotation or tender. The detailed
estimate subdivisions are as follows;
10
 Contractor’s estimate: It is made by the contractor for determining the price or prices to
be bid. It is usually a carefully prepared detailed estimate. A highly rated or qualified
person must be one to be employed to undertake the production of such estimate taking
into consideration time, quality and cost.
 Engineer’s estimate: It is made by the Engineer (consultant) usually for the purposes of
financing the work and for checking bids and running bills submitted by contractors.
 Progress estimate: They are made by the engineer at regular intervals for the completed
parts of the project during the progress of the work for determining the amounts of partial
payments (i.e. valuations as to whether interim, penultimate or the final) to be made to the
contractor.
2.4.2 ESTIMATE TYPES ACCORDING TO THE APEX PROJECT CONSULTING BY
TOM CONZELMAN
There are many types of programs, catalogues or other tools for construction cost estimating
but, all of these price-delivery tools fall into one of the three basics;
1. Analogous/Comparative estimate: This is sometimes called top-down estimate. It is
the handiest and least detailed. They often rely on experience. Cost information is
attained from historical information from previous, similar projects. (Lester, 2014) pg.
60.
2. Parametric estimate: This brings about more observations. While not detailed down
to every nut and bolt. It relies on the mathematical relationship of cost per unit. The
unit can be square footage or length of cable etc. These unit costs are later multiplied
by the quantities in the particular project. (Lester, 2014) pg. 60.
3. Bottom up estimate: It is a detailed quantity and labour take off. Materials and tasks
are broken down into the smallest reasonable component. This estimate is used by
almost all general contractors and especially in the case of competitive bid process.
2.4.3 COST ESTIMATE TYPES WITH REGARDS TO THE US GAO
Common cost estimate classifications historically used are;
 Order of magnitude
 Intermediate
 Detailed estimate
11
 Preliminary
 Definitive
These estimate classifications as mentioned above, follow the modern published classes 5, 4,
3, 2 and 1, respectively. The U.S Department of Energy as well as Association for
Advancement of Cost Engineering (AACE) and many others use a system of five classes of
estimates showing the level or degree of accuracy of estimates under the subject of estimating
in construction.
Table 2.2
ESTIMATE
CLASS
NAME PURPOSE DEFINITION
LEVEL
5 Order of Magnitude Screening or
feasibility
0 to 2%
4 Intermediate Concept study or
feasibility
1% to 15%
3 Preliminary Budget or control 10% to 40%
2 Substantive Control or bid/tender 30% to 70%
1 Definitive Check estimate or
bid
50% to 100%
Table showing a system of five classes of estimate in terms of degree of accuracy
2.5 GROUPING OF THE VARIOUS SOURCES OF TYPES OF ESTIMATES
Table 2.3
SOURCES TYPES OF ESTIMATE
AMOAH-MENSAH CLIENT’S AND CONTRACTOR’S
PEURIFOY & OBELENDER ROUGH AND DETAILED
APEX PROJECT CONSULTING
(TOM CONZELMAN)
ANALOGOUS, PARAMETRIC AND
BOTTOM UP
US GAO;AACE
ORDER OF MAGNITUDE,
INTERMEDIATE, PRELIMINARY,
SUBSTANTIVE, DEFINITIVE
Table showing a compilation of all the various sources and classification of estimates
12
2.6 WHY, WHEN AND HOW DO WE ESTIMATE FOR CONSTRUCTION WORKS
2.6.1 WHY ESTIMATE THE COSTS OF BUILDING CONSTRUCTION WORKS
With reference to Manfredonia et al (2010), accurately prediction of the cost of future projects
is vital to the survival of any business or organization contemplating future construction. Cost
estimators develop the cost information that business owners or managers, professional design
team members, and construction contractors need to make budgetary and feasibility
determinations. From an owner’s perspective or point of view the cost estimate may be used to
determine the project scope or whether the project be proceeded. On the other hand, cost
estimates will determine the construction bid or whether the company will bid.
As the saying goes “one man’s meat is another man’s poison” so, the estimating of cost
importance varies from one to another. There are a countless number of reasons accounting to
the need of estimating of costs of building construction projects including but not limited to;
1. To complete building projects within the accurate time, quality and cost as a major function
in project planning and control.
2. To serve as a basis for proper tendering (the process whereby a contractor, given the net
cost, converts this to the sum that will actually be submitted to the client, together with any
qualifications that are seen to be required. At this stage the principal discussions are
concerned with the profit and the risk, together known as the margin or the mark-up.
Pilcher, 1992)
3. To avoid any financial difficulties resulting in the stalling in the course of the building
project.
4. Establishing the unit rate for plant, material, labour, profit and overheads accurately.
5. Clients need estimates in bidding to select a contractor to perform the proposed work.
6. Foretell amount of resources (materials, manpower, machine, management expertise, and
money) required for a building project to be successful.
7. Determination of project scope or whether a project should proceed. (Swedish College of
Engineering & Technology, Wah Cantt, 2015; Manfredonia, 2010)
13
2.6.2 AT WHAT STAGE OF CONSTRUCTION IS THE ESTIMATE REQUIRED
With reference to the information from Table 1, one can tell that the estimates are required
right from the onset of the inception stage through to the point of feedback stage or process.
The estimate might be needed from the time where a project is conceived in the minds of a
client (individual, group or cooperate body) right up to the completion stage. It is required by;
 Client
 Contractor
From the perspective of the client, it is required;
1. At the early stages of construction to compare his/her bid price to that of any contractor
to select a competent one for a project at hand.
2. To help him or her to ensure proper and adequate future cost commitments to the
contractor when he/she has completed and valued construction works to a stage.
From the perspective of the contractor, it is required;
1. For adequacy in project planning and control so as to be able to complete the project
within the predicted cost.
2. By contractor’s selected persons to review costs amounting to work achieved or gained.
2.6.3 BASICS IN THE PREPARATION OF AN ESTIMATE
There is no one way process in the preparation of estimates. Various sources have come out
with different and pertinent steps involved in the preparation of estimates. Some writings have
been seen to have come from Dutta (1959), Amoah-Mensah (1995) and many just to mention
but a few.
2.6.3.1 PROCESSES INVOLVED IN THE PREPARATION OF ESTIMATES
According to Dutta (1959), there are three processes in the preparation of an estimate and has
been defined by the Misronet (2015) as;
1. Taking out quantities: First and foremost, the measurements are extracted from the
drawings and entered on measurement sheets. The measurements to be taken out would depend
upon the unit of measurement. For example, in the case of stone masonary in superstructure,
length, thickness and height of the walls above plinth level would be taken out from drawings
14
and entered on the measurement sheet, whereas, in the case of plastering, only the lengths and
heights of the walls would be entered. Obviously, the unit of measurement in the first case is
cubic meter and that in the second case is square meter.
2. Squaring out: The second step consists of working out volumes, areas, etc. and casting up
their total in recognized units.
3. Abstracting: In the third step, all the items along with the net results obtained in the second
step are transferred from measurement sheets to specially ruled sheets having rate column ready
for pricing. The second and third steps above are collectively known a working up. All
calculations in these stages and every entry transferred should be checked by another person to
ensure that no mathematical or copying errors occur. This person to do such reviewing of the
calculations must be one endowed with a high degree of knowledge in the field of work.
According to Amoah-Mensah (1995) under the subject, “Preparation of Estimates”, the
processes of preparing the estimate generally falls under;
1. Establishment of all-in-rates for labour and plant
2. Building-up unit rates for the bill items.
3. Calculating the project overheads.
2.6.3.2 PROCESSES INVOLVED IN THE ESTIMATING OF COSTS FOR BUILDING
CONSTRUCTION PROJECTS
Pertaining to the Unified Facilities Criteria (UFC), (2010), the coming out of a construction
cost estimate consists of the following;
 Descriptions of work elements to be accomplished (tasks).
 A quantity of work required for each task.
 A cost for each task quantity.
2.6.3.2.1 PLANNING THE WORK
A cost engineer must thoroughly understand the project scope, the operability, environmental
and aspects of the project being estimated. The cost engineer must also review drawings,
specifications, and construction sequences and durations to determine total construction costs.
A site visit is strongly recommended to enable the cost engineer to relate the physical
characteristics of the project to the available design parameters and details. This is particularly
15
important on projects with difficult site conditions, major maintenance and repair projects, and
alteration/addition projects. The construction sequence must be well developed as soon as
possible and should be used to provide a checklist of construction requirements throughout the
cost estimating process. (UFC, 2010)
2.6.3.2.2 QUANTITIES
The quantity take-off is an important part of the cost estimate. It must be as accurate as possible,
and should be based on all available engineering and design data, and use of appropriate
automation tools as available. After the scope has been analyzed and broken down into the
construction tasks, each task must be quantified prior to pricing. Equal emphasis should be
placed on both accurate quantity calculation and accurate pricing. Quantities should be shown
in standard units of measure and should be consistent with design units. The detail to which
the quantities are prepared for each task is dependent on the level of design detail. Quantity
calculations beyond design details are often necessary to determine a reasonable price to
complete the overall scope of work for the cost estimate. Project notes will be added at the
appropriate level in the estimate to explain the basis for the quantity calculations, to clearly
show contingencies, and to note quantities determined by cost engineering judgment that will
be reconciled upon design refinement. (UFC, 2010)
2.6.3.2.3 COSTS AND PRICING
The cost for each task should be developed by summing the direct cost elements for labour,
equipment and materials. The indirect costs and other mark ups associated with each task or
work item should be identified and are considered separately for the specific project. (UFC,
2010)
2.7 PERSON(S) RESPONSIBLE FOR ESTIMATING OF CONSTRUCTION WORKS
Estimating of cost of building construction projects is done by an estimator. Such a person may
be a specialist or may carry the estimating function in conjunction with other functions such as
quantity surveying, general management etc. The responsibility of estimators should be limited
to the proper preparation of the estimated costs of building projects. An estimator may be
employed either on the client or contractors side. (Anonymous, 2014) An estimator aside
performing the estimating function permanently or full time, may do that on part-time basis
making him or her gain lots of proficiencies from other working fields inbuilt in the building
16
construction industry as appropriate. Such person(s) should possess certain professional
behaviour including but not limited to;
 Ethics
 Integrity
 Good judgement
 Attitude
 Skill
 Experience
 Foresight (Cullen, 2014; Swedish College of Engineering & Technology, Wah Cantt,
2015)
2.8 FACTORS TO BE CONSIDERED IN ESTIMATING OF CONSTRUCTION COST
Burke (1952) pg. 74 in his quest of elaborating on Project estimating came out with several
factors which may help in the proper prediction of cost of building construction works
including;
 Person(s) made to perform such functions in terms of ;
1. Experiences of the fellow.
2. Technical know-how abilities.
3. Qualification and level of education.
4. Speed and accuracy levels.
5. Commitment from the individual etc.
 The period in which the product of estimation (estimate) is required.
 Procedures, methods or standards works followed for the estimating.
 The availability of the necessary resources required for the estimating process.
 Intensity of supervisory factors assigned to estimation works.
 Amount of task available to be performed.
 Quality control measures to assign to estimating duties.
2.8.1 FACTORS THAT AID OR HELP IN PROJECT COST ESTIMATING
17
According to The Constructor (2015), the following factors helps in project cost estimating and
have been defined as;
1. Similar projects: - The best references for cost estimation are similar projects. Final
cost items and related expenses of similar projects helps in estimation where invaluable.
2. Material Costs: - Costs for materials and supplies, plus shipping (transportation)
charges are required prior to starting estimation process adequately.
3. Wage Rates: - Local labour rates or as specified by local government is taken for
calculation of labour costs for project.
4. Site Conditions: - Project site conditions that can increase construction costs are: poor
soil conditions, wetlands, contaminated materials, conflicting utilities (buried pipe,
cables, overhead lines, etc.), environmentally sensitivity area, ground water, river or
stream crossings, heavy traffic, buried storage tanks, archaeological sites, endangered
species habitat and similar existing conditions.
5. Inflation Factor: - The presence of inflation is always a factor that can be extremely
variable. When utilizing previous, similar projects as a primary basis for estimating,
consider the Construction Cost Index as published in the Engineering News Record.
6. Bid Timing: - The timing of the bid opening can have a significant impact on obtaining
a low bid. Seasonal variations in construction activity and conflicts with other bid
openings are critical factors.
7. Project Schedule: - The construction schedule can certainly affect the cost. If the
project requires too aggressive of a time frame, generally the price increases, especially
if there is a significant liquidated damages condition for failure to complete within a
specified deadline. Conversely, if the award notice is beyond a reasonable time and the
notice to proceed is indefinite, the contractors fear inflation of material costs and may
have other projects that have priority. Therefore, most bidders will inflate their bids to
protect against these conditions.
8. Quality of Plans & Specifications: - There is no substitute for well-prepared plans and
specifications. It is extremely important that every detail and component of the design
be properly executed and fully described. Any vague wording or poorly drawn plan not
only causes confusion, but places doubt in the contractor’s mind which generally results
in a higher bid.
18
9. Reputation of Engineer: - If the project engineer or engineering firm has a good sound
professional reputation with contractors, it is reflected in reasonably priced bids. If a
contractor is comfortable working with a particular engineer, or engineering firm, the
project runs smoother and therefore is more cost-effective.
10. Granting Agency: - If a granting agency is involved in funding a portion of the project,
contractors will take this into consideration when preparing their bids. Some granting
agencies have considerable additional paperwork that is not normally required in a non-
funded project. Sometimes this expected extra paperwork elevates the bid.
11. Regulatory Requirements: - Sometimes there are conditions in regulatory agency
approvals that will be costly to perform. Therefore, to be completely above board with
potential bidders, it is strongly recommended that copies of all regulatory approvals be
contained in all bidding documents.
12. Insurance Requirements: - General insurance requirements, such as performance
bond, payment bond and contractors general liability are normal costs of doing
business. However, there are special projects that require additional coverage.
13. Size of Project: The size and complexity of a project determines if local contractors
have the capacity to execute the work. The larger and more intricate the proposed
project is, the more it will potentially attract the attention of a broader number of
prospective bidders. This is good for competition, but may increase mobilization costs.
14. Location of Work Site: - The location of the proposed work can be a significant
component in developing a realistic cost estimate. A rural setting usually has a limited
labour force skilled in the construction trades. Therefore, the contractor must import
tradesmen and generally pay per diem expenses; i.e., out-of-town lodging and related
costs. Additionally, remote settings increase the charges for material shipment.
15. Value Engineering: - Some agencies mandate that multi-million dollar projects
perform a value engineering review, prior to finalizing the design or commencing the
bidding process. Therefore, the estimator should be aware of this factor early in the
process.
16. Contingency: - The rule-of-thumb has historically added a 10 contingency on the
construction total to cover those unforeseen costs that crop up as a project evolves.
During times of high inflation or the limited amount of key construction materials and
supplies, it is wise to increase the contingency to 15% or 20 for a more realistic estimate
and provide a safety factor.
19
17. Supplemental Studies & Investigations: - As stated in Item 4, some project sites will
require special studies and/or investigations. Costs for this special work should be
included in the initial cost estimate to avoid future surprises.
18. Judgement: - In the final analysis, the best component of a good cost estimate is the
art of practicing sound technical judgement. This factor is acquired by experience and
the mentoring of senior personnel.
2.9 PROBLEMS ASSOCIATED WITH ESTIMATING OF COSTS OF BUILDING
CONSTRUCTION PROJECTS
Estimation of building construction projects has and will always come with its problem and
constraints. These are that which one cannot do without even if estimating is done putting all
the necessary quality measures in place. One may ask, “How does an estimator estimate the
cost of a construction project?” Hitting the target is not a common occurrence and is an inbuilt
problem of estimating. Samphaongoen (2010) stated construction cost estimating is a time
consuming and tedious process. Although there are factors to assist with the cost estimating
process, inefficiencies still abound. During the process of construction cost estimating, the
estimator must learn about the design and conditions of the project. Some of the of these
problems may arise from the following;
1. Technology
2. Cost involved
3. Risks
4. Omission of items
5. Choice of work method
6. Addition of overheads and profit
7. Changes in design
8. Improper rates
9. Solution jumping
10. Output of crew (Burke, 1952), pg. 91; (Dutta, 1959), pg. 1
2.10 PURPOSES OF CONSTRUCTION ESTIMATING
The purposes of estimating in construction includes but not limited to following;
20
1. To ascertain the necessary amount received by the owner to complete the proposed
work and arranging fund for the same.
2. To ascertain the quantity of materials required for programming timely procurement.
3. To know the number of different categories of works that is to be employed to complete
the work within the schedule time of completion.
4. Helps assess the requirements of Tools, Plants and equipment required to complete the
work according to the programme.
5. To fix up completion period from the volume of work involved in the estimate.
6. To justify the investment from benefit cost ratio. (Advanced Civil Engineering, 2016)
2.11 ADVANTAGES AND DISADVANTAGES OF ESTIMATING
2.11.1 ADVANTAGES OF ESTIMATING
Estimating is one of the most useful mathematics skills we can acquire in our everyday lives
for use in both the field of study and of work. Some of its advantages are as follows;
 It relates to all kinds of different areas of maths-measure, handling data, handling
money, time, space, shape, number of operations.
 It allows one to make good judgments about the quantity required.
 It sometimes helps saves time and money.
 It encourages problem solving.
 It allows one to check to see if calculated answers are reasonable. (Bledsoe, 1992)
2.11.2 DISADVANTAGES OF ESTIMATING
Despite the relevance of estimating, it still does possess some disadvantages including but not
limited to the following;
 Time constraint
 Budgetary constraint
 Involves severe critical thinking
 Resources required
 Technology involved (Burke, 1952)
2.12 ESTIMATING AS AN IMPORTANT TOOL FOR PROJECT MANAGEMENT
21
From Burke (1952), for a project manager to effectively plan and control a project, accurate
estimating is essential. The estimator’s task is to predict the project’s parameters by building
model of the project on paper. The quality and accuracy of an estimate can be continually
improved as the project progressively executed as more detailed and accurate information
becomes available. Although estimating for a fact, usually focuses on the financial aspects of
the project, it is important to remember that the costs cannot be accurately established until the
other factors of scope, specifications, time, resources, materials, equipment and risks have been
quantified. Estimating is an integral part of project management process, which should be based
on past experiences together with market norms and standards.
CHAPTER THREE
22
METHODOLOGY
3.0 INTRODUCTION
The chapter elaborates on the procedures that were employed in gathering the type of data
relevant and suitable for the study. The procedures used were explained into details as
appropriate and suggested reasons for which those procedures were chosen and used as a means
of data gathering.
3.1 METHODS OF DATA COLLECTION
Validated structured questionnaires which were in the form of closed and open questions were
used to gather primary data from particular persons. The questionnaires were designed to give
the allowance for respondents to express themselves freely as they wish and closed
questionnaires which were in the form of alternative answers for the respondents to choose
from where they regard suitable. Questionnaires were designed to have filter questions which
filtered those that answered the questions. A number of fifteen (15) questionnaires were sent
out. Seven (7) were sent to professionals while the remaining eight (8) were given to clients to
answer in broadening the knowledge of the research. Method of data collection that was used
was the qualitative method of research.
3.2 POPULATION OF STUDY
A population is the totality of objects or events that have specific measurable properties or
specified observable characteristics in common. The population of this research included
owners (client’s) of selected buildings as well as professional stakeholders in the building
construction industry.
3.3 SAMPLE AND SAMPLING TECHNIQUES
The sampling method which was used for determining the sample size was the purposive
sampling. The sampling method was chosen due to the case study issue which was at hand and
the quality of exactness in data that was to be gathered from respondents that answered the
questions.
23
3.4 RESEARCH INSTRUMENT
Questionnaires were administered together with personal interviews of particular persons in
Accra all located in the environs of the case study area. This was be done to find out the
relevance, the person(s) who perform the estimating function, whether it could be done without
or with in building construction projects as well as reasons why it should be done and done
appropriately.
3.5 DATA ANALYSIS
Primary data were obtained from a number of clients (owners of buildings) and professional
building stakeholders’ in the case study area. Secondary data was the main source of
information for the study. The secondary sources of data included books, published articles
both on the internet and in journals and government publications. Through meetings such as
discussions, conversations and interviews, the primary data aspect of the research was attained.
In analysing questions that were in the Likert Scale form, the Relative Importance Index
formula (RII) was adopted and used as expected helping to detect adequate ranking.
Relative Importance Index = Ʃ (1n1 + 2n2 + 3n3 + 4n4 + 5n5)
5(n1 + n2 + n3 + n4 + n5)
3.6 LIMITATIONS TO DATA GATHERING PROCESS
 Financial constraint.
 Limited time frame to be able to cover many areas.
 Willingness of persons to answer questions in the due course of interview.
24
CHAPTER FOUR
DATA ANALYSIS AND PRESENTATION
4.0 INTRODUCTION
This chapter presents the data gathered from field survey. The data gathered have been
represented by charts and tables. Data, been presented in relation to the literature review and
compared to the data collected from the field. It seeks to look at the analysis and interpretation
of the responses from questionnaires and interviews administered for the study.
4.2 PRESENTATION AND ANALYSIS
The data analysis involves placing raw data gathered into a manageable size and developing
summaries. Some relevant steps were taken to analyze the data for the study. The Microsoft
Excel software was used for this analysis. The data have been analyzed in tabular, graphical and
narrative forms. Tools including pie charts were used in data analysis.
4.3 ANALYSIS OF DATA GATHERED FROM CLIENTS
Eight (8) numbered questionnaires were sent out for clients to give their answers, but only six
(6) being 75%, were retrieved for the analysis. Two (2) being 25% were not attained.
4.3.1 AGES OF RESPONDENTS FROM CLIENTS
From the field survey, the ages of client respondents have been presented in the table below
in percentage form as;
Table 4.1
AGES FROM RESPONDENTS
AGE RANGE NUMBER OF RESPONDENTS
PERCENTAGE
%
20-25 3 50%
26-30 1 16.7%
31-35 1 16.7%
36 and above 1 16.7%
TOTAL 6 100%
Table showing the respondents age grouping
Field survey, March 2016
4.3.2 ANALYSIS ON WHETHER THEY HAVE EVER RECEIVED AN ESTIMATE
25
Have you ever received an estimate for any building maintenance works?
50% of the retrieved answered YES whiles the other 50% of the retrieved answered a NO.
Figure 4.1
Figure showing the analysis of whether client has ever received an estimate
Field survey, March 2016
For those who answered a YES, as to receiving an estimate for any building works, below is
the analysis of the filter question they answered in and represented in a chart as;
At the end of the maintenance works, do total cost fall within that which was estimated?
Table 4.2
ANSWER FREQUENCY PERCENTAGE
YES 2 67%
NO 1 33%
TOTAL 3 100%
Table showing whether total cost fall within that estimated in maintenance works
Field survey, March 2016
Figure 4.2
50 %, YES50% , NO
YES
NO
YES, 67%
NO, 33%
DO COST FALL WITHIN THAT WHICH WAS
ESTIMATED AFTER PERFORMING
MAINTENANCE WORKS
26
Figure showing whether total cost fall within that estimated in maintenance works
Field survey, March 2016
4.3.3 ARE THERE ANY PROBLEMS ONE MIGHT FACE FOR NOT RECEIVING
THE BEST ESTIMATE
Thorough study of the data received from respondents showed that there are problems one
may face for receiving the best estimate. Analysis made it clear that 100% of the respondents
answered a YES to the question.
Respondents who chose a yes were being asked to state at least one problem someone is
likely to face for not receiving the best estimate and the responds were as follows;
1. Spending out of budget.
2. Financial problems arising.
3. High cost and expenses in latter parts of the on-going project.
4. Distort budget and no trust for the person undertaking the project.
5. Inadequate fund along the way (in the project)
6. In the case of under- estimation, the construction process might grind into a halt or prolonged
delay due to insufficient budget allocation for the project.
4.3.4 DO YOU UNDERSTAND THE NEED FOR AN ESTIMATE BEFORE BUILDING
AND WOULD YOU ADVICE THAT PEOPLE SEEK ESTIMATES BEFORE
UNDERTAKING BUILDING PROJECTS
In analyzing whether respondents understood the need for an estimate before undertaking
building works and asking whether they were going to recommend one to seek for estimates
before undertaking building projects, the analysis were obtained collectively as;
Table 4.3
RESPONSE FREQUENCY PERCENTAGE
YES 6 100%
NO 0 0%
TOTAL 6 100%
Table showing the need for an estimate before performing building projects
Field survey, March 2016
27
4.3.5 ARE ESTIMATES ALWAYS ACCURATE AND EXACT TO UNDERTAKE
BUILDING PROJECTS
Table 4.4
RESPONSE FREQUENCY PERCENTAGE
YES 0 0%
NO 6 100%
TOTAL 6 100%
Table showing whether estimates produced are always accurate for building project
Field survey, March 2016
A filter question was placed here asking respondents who chose a NO to state why estimates
are not always accurate and exact to undertake building projects and the below are the answers
which were obtained.
 One may estimate a huge amount of money on an item when it might cost less.
 There are price variations of changes which are unforeseen/ There could be change in
pricing/ Increment on prices
 Disparities in the unit cost of estimated materials for the proposed project.
 As a result of unqualified personnel in the preparation of estimates.
4.4 ANALYSIS OF DATA GATHERED FROM PROFESSIONAL STAKEHOLDERS
A total of seven (7) questionnaires were sent out to professional stakeholders to answer and out
of the seven which were sent, seven (7) were later retrieved and that is to say a 100% questions
was sent out and a 100% answers to those questions were gained.
4.4.1 PROFESSION OF RESPONDENT AS A PROFESSIONAL STAKEHOLDER
Table 4.5
PROFESSION OF RESPONDENT
PROFESSION FREQUENCY PERCENTAGE
Architect 0 0%
Engineer 3 43%
Estimator 1 14%
Quantity Surveyor 3 43%
TOTAL 7 100%
Table showing professional respondents for the study
Field survey, March 2016
28
Figure 4.3
Figure showing professional respondents for the study
Field survey, March 2016
Even though there was a filter question for others to specify, none fell in that zone or
region.
4.4.2 YEARS OF EXPERIENCE IN THE CONSTRUCTION INDUSTRY
Table 4.6
NUMBER OF
YEARS FREQUENCY PERCENTAGE
1 to 5 6 86%
6 to 10 1 14%
11 to 15 0 0%
16 and beyond 0 0%
TOTAL 7 100%
Table showing the years of experience in the construction industry
Field survey, March 2016
4.4.3 DO YOU USE ESTIMATES
The question “Do you use estimates” was only answered by 6 professional respondents. Only
1 respondent out of those who answered chose neither “Yes” nor “No”.
Percentage that answered out of the seven (7) respondents were amounting to 86% were all
“Yes” representing 6 response whiles those who neither chose “Yes” nor “No” amounted to
14% of the total number.
4.4.3.1 FILTER QUESTION ASKING IF YES STATE YOUR REASON
Reasons that were obtained from respondents were as follows;
ARCHITECT, 0%
ENGINEER, 43%
ESTIMATOR,
14%
QUANTITY
SURVEYOR,
43%
Architect
Engineer
Estimator
Quantity Surveyor
29
 Making work easy.
 To anticipate and know how much will go into the project.
 To arrive at an accurate and precise figure for construction works.
4.4.4 YOUR SAY ABOUT THE LEVEL OF ESTIMATING PRACTICES IN ACCRA
CURRENTLY
What do you say about the level of estimating practices currently in Accra?
Table 4.7
RESPONSE FREQUENCY PERCENTAGE
Good 4 57%
Bad 0 0%
Satisfactory 3 43%
TOTAL 7 100
Table showing opinion about the level of estimating practices in Accra
Field survey, March 2016
4.4.5 ASSESSING WHETHER ALL ESTIMATES PRODUCED FOLLOW THE
RIGHT AND PROPER PROCEDURES OF ESTIMATING
Do all estimates produced in Accra currently follow the right and proper procedures of
estimating?
Table 4.8
RESPONSE FREQUENCY PERCENTAGE
Yes 3 43%
No 4 57%
TOTAL 7 100%
Table showing the assessment of whether all estimates produced follow the right and proper
procedures
Field survey, March 2016
30
4.4.6 AT WHAT PERIOD ARE ESTIMATES REQUIRED THE MOST IN
CONSTRUCTION
Table 4.9
RESPONSE FREQUENCY PERCENTAGE
At the Beginning 6 86%
During the due course 0 0%
At the end 0 0%
All of the above 1 14%
TOTAL 7 100%
Table showing the period at which estimates are required the most in construction
Field survey, March 2016
4.4.7 EVALUATING AMONGST THE FOLLOWING, THE FREQUENCY OF USE OF
THE FOLLOWING TYPES OF ESTIMATES IN ACCRA GHANA
A= VERY FREQUENT B= FREQUENT C= FAIRLY FREQUENT D= NOT AT
ALL
Table 4.10
ITEM TYPE OF ESTIMATE A B C D TOTAL Ʃ W RII RANK
1 Feasibility or conceptual 1 1 1 0 3 6 0.50 6th
2 Budget Plan Estimate 3 4 0 0 7 11 0.39 10th
3 Sketch Design and Detailing 2 1 4 0 7 16 0.57 4th
4 Bid Estimate 2 4 0 1 7 14 0.50 6th
5 Control resource 1 5 1 0 7 14 0.50 6th
6 Approximate/ Rough 1 4 1 1 7 16 0.57 4th
7 Detailed Estimate 3 3 1 0 7 12 0.43 9th
8 Parametric Estimate 0 2 3 1 6 17 0.71 2nd
9 Analogous 0 2 2 2 6 18 0.75 1st
10 Bottom-up 0 3 2 1 6 16 0.67 3rd`
Table showing a statistical ranking of the types of estimates frequently used in Accra Ghana
Field survey, March 2016
Observations from the table shown that the estimate very frequently used in the environs of
Accra, Ghana is the Analogous Estimate whiles the least occurring is Budget Plan Estimate
when analyzed with Relative Importance Index of Statistical Ranking.
31
Table 4.11
TYPE OF ESTIMATE A B TOTAL
Analogous 0% 28.6% 28.6%
Parametric Estimate 0% 28.6% 28.6%
Bottom-up 0% 42.9% 42.9%
Approximate/ Rough 14.3% 57.1% 71.4%
Sketch Design and Detailing 28.6% 14.3% 42.9%
Control resource 14.3% 71.4% 85.7%
Bid Estimate 28.6% 57.1% 85.7%
Feasibility or conceptual 28.5% 28.5% 57%
Detailed Estimate 42.9% 42.9% 85.8%
Budget Plan Estimate 42.9% 57.1% 100%
Table showing the summation of the A and B for frequently occurring estimates being used
expressed in percentage
Field survey, March 2016
Observation from the table shows that, Budget Plan estimate occurs most frequently, followed
by Detailed Estimate with many others following up but the least frequently used amongst as
shown in the table is both the Analogous and Parametric estimate.
Table 4.12
Table showing the summation of the C and D for non-frequently occurring estimates used in
Accra.
Field survey, March 2016
Observation from the table shows that, estimates not frequently used the most are Analogous,
Parametric and Bottom-up estimate followed by Feasibility estimate ranging to the least which is
not occurring frequently as the Budget Plan Estimate.
TYPE OF ESTIMATE C D TOTAL
Analogous 28.6% 28.6% 57.2%
Parametric Estimate 42.9% 14.3% 57.2%
Bottom-up 28.6% 14.3% 42.9%
Approximate/ Rough 14.3% 14.3% 28.6%
Sketch Design and Detailing 57.2% 0% 57.2%
Control resource 14.3% 0% 14.3%
Bid Estimate 0% 14.3% 14.3%
Feasibility or conceptual 28.6% 0% 28.6%
Detailed Estimate 14.3% 0% 14.3%
Budget Plan Estimate 0% 0% 0%
32
4.4.8 EVALUATING AMONGST THE FOLLOWING, THE FREQUENCY OF
PROBLEMS THAT OCCUR IN ESTIMATION
A= VERY FREQUENT B= FREQUENT C= FAIRLY FREQUENT D= NOT AT
ALL
Table 4.13
ITEM PROBLEM IN ESTIMATING A B C D TOTAL ƩW RII RANK
1 Technology 1 2 2 1 6 15 0.63 3rd
2 Cost involved 2 5 0 0 7 12 0.43 9th
3 Risks 3 2 2 0 7 13 0.46 7th
4 Omission of items 0 3 3 1 7 19 0.68 1st
5 Choice of work method 1 5 0 1 7 15 0.54 6th
6 Addition of overheads and profit 4 2 1 0 7 11 0.39 10th
7 Changes in design 3 2 2 0 7 13 0.46 7th
8 Improper rates 2 1 3 1 7 17 0.61 4th
9 Solution jumping 0 4 3 0 7 17 0.61 4th
10 Output of crew 0 2 5 0 7 19 0.68 1st
Table showing a statistical ranking of the of frequency of problems of estimating that occur
Field survey, March 2016
Observations from the table shown that the problem that is most occurring is the combination
of Output of crew and Choice of work method whiles the least occurring problem is the
Addition of overheads and profit using the Relative Importance Index of Statistical Ranking.
Table 4.14
PROBLEM IN ESTIMATING A B TOTAL
Output of crew 0% 28.6% 28.8%
Omission of items 0% 42.9% 42.9%
Technology 14.3% 28.6% 42.9%
Improper rates 28.6% 14.3% 42.9%
Solution jumping 0% 57.1% 57.1%
Choice of work method 14.3% 71.4% 85.7%
Changes in design 42.9% 28.6% 71.5%
Risks 42.9% 28.6% 71.5%
Cost involved 28.6% 71.4% 100%
Addition of overheads and profit 57.1% 28.6% 85.7%
Table showing the summation of the A and B for frequently occurring expressed in percentage
Field survey, March 2016
33
Observation from the table shows that, Cost involved problems occurs most frequently,
followed by Choice of work method and Addition of overheads and profits with many others
following up but the least frequent amongst all the problems is the Output of crew.
Table 4.15
PROBLEM IN ESTIMATING C D TOTAL
Output of crew 71.4% 0% 71.4%
Omission of items 42.9% 14.3% 57.2%
Technology 28.6% 14.3% 42.9%
Improper rates 42.9% 14.3% 57.2%
Solution jumping 42.9% 0% 42.9%
Choice of work method 0% 14.3% 14.3%
Changes in design 28.6% 0% 28.6%
Risks 28.6% 0% 28.6%
Cost involved 0% 0% 0%
Addition of overheads and profit 14.3% 0% 14.3%
Table showing the summation of the C and D for non-frequently occurring problems expressed
in percentage
Field survey, March 2016
Observation from the table shows that, Output of crew does not frequently occur the most,
followed by Omission of items and Improper rates all to the least non-occurring problem being
the Cost involved.
4.5 DATA GATHERED FROM INTERVIEW WITH AN ESTIMATOR
This was data gathered through an interview with a professional estimator.
4.5.1 Question 1: Who prepares an estimate?
Answer: Many people do believe that estimates are produced by quantity surveyors. He said
he did not doubt their knowledge but only said that from his point of view most estimates are
produced by estimators and not quantity surveyors since their main work is to advise client on
cost which is likely to be incurred and ensures that estimates produced are accurate.
4.5.2 Question 2: What do you think about the estimating practices in Accra, Ghana
currently? Are all estimates produced done in the correct manner?
Answer: Certainly not he said. Estimates produced in Accra currently often help tell the
probable cost of projects but actually not all does and some do. He said for estimates to be
34
produced very much accurately would not require studying books alone but the working
experience of persons who produce estimates really count in terms of its accuracy.
4.5.3 Question 3: In rehabilitation works, would estimates produced be done in the same
manner as that of a full and complete construction work?
Answer: Estimates produced for simple rehabilitation works cannot be compared to that of a
full project except in certain cases and in the presence of certain factors. Estimates being
prepared for simple rehabilitation works, are quite simpler and faster compared to that of a full
project.
4.5.4 Question 4: What are some of the recommendations you would make about
estimates being produced?
Answer: People or person(s) in the preparation of estimates should be trained critically to adopt
quality innate skills so as to help them to be able to perform fully estimating works reducing
the risk of so much errors and failure.
He advised that estimates be it whatever size of a project at hand or to be done must always be
documented since;
1.Variation may occur in the prices of any of the resources required for a project.
2.May serve as a data source for similar building construction projects.
3. Source of reference for detecting mistakes or flaws in the every building construction
project.
Field survey, April, 2016
4.6 SUMMARY OF FINDINGS FROM THE STUDY
4.6.1 FINDING OUT THE LEVEL OF USE OF ESTIMATING AS PART OF
BUILDING PROJECTS
1.The research shows that a very good number of persons especially client and professional
stakeholders know about estimates and its use in building projects. Research proves
that estimates are not only used by professional stakeholders in their work situations
but also used by clients for their financial commitment to a project.
35
4.6.2 EXAMINING THE CURRENT BUILDING CONSTRUCTION ESTIMATING
PRACTICES IN ACCRA
1. The research indicates that, estimating practices in Accra currently from the view of
professionals in the building construction industry is done in a good manner. Despite
this, it was understood that, many of the estimates produced did not follow the right and
proper procedures for estimating cost of construction in Accra.
2. A number of clients who had ever received estimates for performing maintenance
works made it clear that, most at times the cost of construction often fall within
estimated cost of construction.
4.6.3 IDENTIFYING PROBLEMS ASSOCIATED WITH ESTIMATING IN
BUILDING CONSTRUCTION PROJECTS
Research has shown that there are many problems attached to estimating of building
construction projects and they have been listed in order of degree of frequency as;
1. Omission of items and Output of crew
2. Technology
3. Improper rates and Solution jumping
4. Choice of work method
5. Risks and Changes in design
6. Cost involved
7. Addition of overheads and profit
Degree of frequency of problems in estimating have been listed above and it was analyzed from
professionals that “omission of items and determination of output of crew” were identified to
be the most occurring problems of all while “addition of overheads and profits remained the
least occurring problem in the process of estimating” using the basis of Relative Importance
Index in the analysis.
4.6.4 METHOD OF ESTIMATING OF BUILDING COSNTRUCTION PROJECTS
For the methods that aid in the process of estimating, study showed that there was no one way.
Some were noted to be done based on experiences of the person(s) estimating whiles some
followed the norms, traditions and standards for the estimating process.
36
4.7 CASE STUDY
This is a proposed rehabilitation works which is to be done on the Building/Civil Laboratory
building at the Accra Polytechnic Campus as an aspect of the study. In the quest of performing
this exercise, an estimate is to be prepared for the construction processes that may be carried
out. The rehabilitation works will cut across the following under listed;
1. Removal of existing timber doors and windows and replacing them with glazing.
2. Painting of walls and concrete slab of the building.
3. Laying of bituminous felt on concrete roof of building to the appropriate falls and
slopes.
4.7.1 PREPARATION OF ESTIMATES FOR THE REHABILITATION WORKS
Using some basis and ideas of Amoah-Mensah (1995), estimates will be prepared. Certain
assumptions were made in determining outputs of construction works after studying those trade
or activities on construction sites.
4.7.2 ESTABLISHMENT OF ALL-IN-RATES FOR LABOUR
In the quest of establishing daily rates for labour interviewing of operatives of gangs and crews
on certain construction sites helped to come out with the all-in-daily rates for labour. The
outcomes have been tabulated in the Table 4.11 as follows;
Table 4.16
OPERATIVE ALL-IN-DAILY RATE (GHȻ)
CRAFTSMAN(SKILLED PERSON) 60.00
LABOURER(UNSKILLED PEROSN) 45.00
Table showing the all-in-daily-rate wages of labour
Field survey, April, 2016
4.7.3 ASSUMPTIONS TO BE USED IN THE CALCULATION OF UNIT RATES
Percentage value to be used in the addition of profit and overheads have been put together as
15% be carried on all works to be carried out as part and parcel of the rehabilitation project.
4.7.4 PRELIMINARIES FOR THE REHABILITATION PROJECT
37
According to Nahel (2014), preliminaries are the section of a bill that provides a description of
the project, the contractor’s general obligation, general facilities and setup and running costs.
With reference to the Rehabilitation project at hand the necessary preliminary items have been
out listed as;
1. Description of works and particulars: It gives general information on type of structure(s),
the volumetric content, area on plan and many more. They are normally not priced since is
regarded as not involving to the contractor in any expense.
2. Programme of works: Normally not priced but deemed to be covered in the overheads.
3. Handover of completed works: Normally not priced but deemed to be covered in the
overheads.
4. Contractor’s supervision: This lump sum is often fixed but only dependent on the amount
of time the contractor would spend on the project.
5. Adequate resources, labour, materials and plant for the project: Not priced
6. Small tools and equipment: Ideally, a comprehensive list of small tools and equipment
predicted for the works could be prepared and priced in accordance at rates that allow for
expected prices increase.
7. Checking schedules, drawing etc.: Not priced
8. Protection of person and property: Not priced since it is presumed to have been allowed
in the workmen’s compensation when building up unit rates of labour.
9. Safety, health and welfare of people working: Not priced since it is presumed to have been
allowed in the workmen’s compensation when building up unit rates of labour.
10. Prime cost sums and provisional sums: Normally not priced
11. Contingencies: Normally not priced (Amoah-Mensah, 1995)
38
4.8 COMPUTATION OF TOTAL ESTIMATE OF REHABILITATION PROJECT
In establishing the total cost of the project, the estimates derived from the works formed a part
of the rehabilitation project have been added as;
Table 4.17
DESCRIPTION OF WORK
ESTIMATE
DERIVED GH¢
ALTERATIONS AND DEMOLOITION WORKS
(Removal of existing doors and windows) 170.78
PAINTING AND DECORATING WORKS
(Walls & Concrete Soffit) 1,314.25
GLAZING WORKS 43,463.39
ALTERATION WORKS
(Laying bitumen) 968.88
45,917.30
Table showing a computation of the estimate of rehabilitation project
Assuming, Preliminaries and other relevant factors which were not mentioned in the
preparation of estimates including cleaning on roof to accept bitumen, cement, fine aggregates
and others to take 25% of the total of estimates on works to be performed.
25% ×45,917.30 = 11,479.33
Hence, Total estimated cost for project = 45,917.30 + 11,479.33 = GH¢ 57,396.63
Total estimated cost attained may be subject to change with respect to time value of money.
Details of estimates could be inferred from the Appendix Section of the study at hand.
39
CHAPTER FIVE
CONCLUSION AND RECOMMENDATION
5.0 INTRODUCTION
This chapter reveals the conclusions and recommendations were made from the research.
5.1 CONCLUSIONS
The study was based on an aim and a set of objectives. The following conclusions were made
after the research in answering the objectives;
5.1.1 FIND OUT THE LEVEL OF USE OF ESTIMATING AS PART OF BUILDING
PROJECTS IN ACCRA
1. The conclusion from obtaining primary data was that a great number of professional
stakeholders often use estimates in their daily activities. As per the literature review no
information was derived for conclusions to be compared and contrasted with that
obtained from the use of questionnaires.
5.1.2 EXAMINE THE CURRENT BUILDING ESTIMATING PRACTICES IN ACCRA
1. The research conducted revealed that the level of estimating practices in Accra
currently is fairly good and that estimates produced are of a fairly good degree of
accuracy.
5.1.3 IDENTIFY PROBLEMS ASSOCIATED WITH ESTIMATING OF BUILDING
CONSTRUCTION PROJECTS
1. Problems in estimating which were stated in the literature review were only confirmed to
be true by professionals but in varying degree of how frequent they occurred in the process
of estimating and hence some of the problems like the Output of crew and Omission of
items, Technology and Addition of overheads and profits stood as the most frequent
problem, next to most occurring and the least occurring problem respectively
As per clients whom primary data were gathered from, the problems were as follows;
 One may estimate a huge amount of money on an item when it might cost less.
40
 There are price variations of changes which are unforeseen/ There could be change in
pricing/ Increment on prices.
 Disparities in the unit cost of estimated materials for the proposed project.
5.1.4 PREPARING COST ESTIMATES FOR THE PROJECT UNDER STUDY
1. In answering the objective of preparing estimates for the project at hand the estimate
value which was reached amounted to a sum of GH¢ 57,396.63 which clearly was stated
to be subjected to change due to the time value of money.
Other conclusions the were made for the study are as follows;
1. Research conducted also revealed that in maintenance works such as rehabilitation, the
estimates produced vary depending upon the extent of works to be done, information
available and the even the prospective persons in the preparation.
2. Construction estimating serves a means at arriving at appropriate value or estimate to
commence and end building projects successfully without delays, thievery or pilfering
and serves appropriate measures to minimizing waste be it avoidable or non-avoidable
in construction projects.
3. Generally, cost of building construction works are done by estimators (person(s)
carrying out the estimating function in an organization) but study showed that quantity
surveyors do them more in the environs of Accra.
2. Research showed while, some persons heed to the practices and application of the
estimating in accordance to the set standards and procedures, there are others who also
do same applying knowledge, and experiences from previous projects and forecasting
abilities.
5.2 RECOMMENDATIONS
To ensure proper estimating of cost of building construction projects by individuals, the society
and the nation at large. Some of these measures which could help to cater for proper estimating
measures are;
1. Laws guiding production of estimates must be enforced and stressed upon enough.
2. Government should mete out severe punishment to law breakers ( i.e. people who tend
to practice estimating improperly)
3. Educating people on the relevance may be grounds for which to ensure its effectiveness.
41
4. Training and development of person(s) to become professionals at works they do in
terms of estimating of cost of building construction projects.
5. The importance of the exercise should be advertised through the appropriate means to
the hearing of the public.
6. Special treatments as to whether incentives or motivation may be given to people who
practice this to enable them do their works as required of and many more just to mention
but a few.
42
REFERENCES
1. AdWords Help, (2015). First page bid estimate [online]. Available from:
http://support.google.com/adwords/answer/105665?hl=en [Accessed 29 November 2015].
2. Advanced Civil Engineering (2016). Estimating [online]. Available from:
https://mobile.facebook.com/advanced.civil.engineering/posts/1503081816608260?_rdr
[Accessed 14 March 2016].
3. Amoah-Mensah K., (1995), Building Estimating Manual for West African Construction
Practice, 2nd Edition, Parcom Ghana Ltd., Kumasi.
4. Baloi, D. and Price, A. D. F. (2003) Modelling global risk factors affecting construction cost
performance, International Journal of Project Management, 21(4), 261-269
5. Buchan, R.D., Fleming, F.W. and Kelly, J.R. (1995), Estimating for Builders and Quantity
Surveyor, Thomas Litho Ltd., Scotland.
6. Bledsoe D.J., (1992), Successful Estimating Methods from Concept to Bid. R.S Means
Company, Inc.
7. Burke R., (1952). Project Management: Planning and Control Techniques, 5th
Edition.
8. Conzelman T., (2014). Three Types of Construction Estimating Techniques, Apex Project
Consulting. [online]. R.S Means Company, Inc. Available from: http://apexpjm.com/three-
types-construction-estimating-techniques-everyone-uses/ [Accessed 15 November 2015].
9. Cullen S. (2014) Estimating. [online]. Whole Building Design Guide.
Available from: http://www.wbgd.org/resources/estimaing.php?r=deliveryteams. [Accessed
29 November 2015].
10. Dutta B.N.,(1959). Estimating and Costing in Civil Engineering. UBSPD
11. Fugar, F.D.K and Adinyira, E (2009) Quantity Surveying Education in Africa: The Role of
Stakeholders in Sustaining Professionalism, The Building Economist, September 2009 issues,
25-30. ISSN: 0007-3431.
43
12. Laryea S. (2010). Construction cost estimating in Ghana. [online]. Available from:
http://samuellaryea.blogspot.com/2010/04/construction-cost-estimating-in-ghnana.html
[Accessed 15 November 2015].
13. Lester A. (2014). Project Management, Planning and Control, 6th
Edition, Copyright ©
2014
14. McCracken M., (2005). Feasibility Estimate. Teach me finance. [online]. Available from:
http://www.teachmefinance.com/Scientific_Terms/Feasibility%20estimate.html. [Accessed
29 November 2015].
15. Misronet, (2015). Steps in preparation of an estimate. Construction Cost Estimating
Methods [online]. Available from: http://www.misronet.com/estimating.htm. [Accessed 3
February 2016].
16. Moustafaev J., (2015). What is a project? Project Management for Beginners and Experts.
[online]. Available from: http://www.project-management-
podcast.com/index.php/resourcesguide-links/articles/571-what-is-a-project-a-simple-
question-with-a-very-difficult-answer. [Accessed 29 November 2015].
17. Peurifoy R.L. and Oberlender G.D. (2004), Estimating Construction Costs.
18. Portny S.E., (2010). Project management for dummies (4th
edition).
19. Ronald C.S, (1986). Estimating and tendering for building work. Longman Technician
Series
20. Samphaongoen P., (2010). A visual approach to construction cost estimating. Thesis
(MSc). Marquette University.
21. Swedish College of Engineering & Technology, Wah Cantt (2015) Estimating of Building
Works. SCET WAH CANTT [online]. Available from: https://metricskey.net/.../ppt-
construction-. [Accessed 1 March 2016].
22. Manfredonia B., Majewski P. J., Perryman J. J., (2010). Cost estimation. Whole Building
Design Guide [online]. Available from: http://www.wbdg.org/design/dd_costest.php .
[Accessed 1 March 2016].
44
23. Pilcher R., (1992).Principles of Construction Management, 3RD
Edition, McGraw Hill,
London.
45
APPENDIX A
1 ALTERATIONS AND DEMOLOITION WORKS
ITEM 1
Carefully remove the existing timber doors and windows as a first step Item(139.54m²)
before fixing appropriately glass windows and doors in building
Assuming removal of windows and doors at an output of
50 m²/man-day by a labourer
139.54= 2.79 man days
50
Use 3 days at GH¢ 45.00 135.00
Add 10% for tools, cutting etc. 13.50
148.50
Add 15% for profits and overheads 22.28
TOTAL COST 170.78
Unit cost/m² GH¢ 1.22
46
APPENDIX B
2 GLAZING WORKS
ITEM 2
Supply and fix the specified and appropriate sizes of glazing 136.67 m²
works for doors and windows
Material
Complete glazed set at price of GH¢ 250.00/m²
For an area of 136.67 m², we have; 250.00×136.67 34167.50
Add 10% for cutting and fixing 3416.75
Labour
Fixing of glass of 150 m²/day
Number of days required = 136.67 = 0.91 gang days
150
Using a gang of 2 glazers and 2 labourers for a day, we have;
2(60.00 + 45.00) 210.00
Total cost ( materials + labour) 37794.25
Add 15% for profits and overheads 5669.14
TOTAL COST 43463.39
Unit cost/m² GH¢ 318.01
47
APPENDIX C
3 REPAIR WORKS TO CONCRETE ROOF
ITEM 3
Laying of a bituminous felt material 3mm thick over existing item (205.42m²) concrete
roof of building size 28.9m × 7.11m
Materials
Bitumen 3mm thick sold at GH¢ 2.60/m²
For an area of 205.42, we have; 2.60 × 205.42 534.09
Add 10% for waste for travelling height and immediate drying 53.41
Labour
Laying of bitumen at an output of 267m²/ gang day
Number of days required = 205.42 = 0.76 gang days
267
Use 1 day by 2 bitumen layers and 3 labourers, we have
1(2(60.00) + 3(45.00)) 255.00
Total (material + labour) 842.50
Add 15 % for profits and overheads of total cost 126.38
968.88
Unit cost GH¢ 4.72
48
APPENDIX D
4 PAINTING AND DECORATING WORKS
ITEM 4
Prepare and apply 1 coat of white emulsion paint to the internal and
external parts of the rendered walls
496.54m²
Materials
Emulsion paint, already computed at a utilization of 50m²/ gallon
For 1 coat of paint for an area of 496.54 m² we have;
496.54 = 9.93 gallons (3.97 buckets)
50
Add 15% for waste = 1.49 gallons
Total number of gallons of paints will be 11.42 gallons (4.57 buckets)
Buy 11 gallons of emulsion paint at GH¢ 55.00 605.00
Roller brushes having a life coverage of 450 m²/roller brush
we have; 496.54 = 1.10 no
450
Buy 2 number roller brushes at GH¢ 10.00 20.00
Labour
Assume preparation and painting of 1 coat 496.54 m² at an output
of 200m²/ man-day/ coat would require;
496.54 = 2.48 days
200
Use 3 days at a skilled operative rate of GH¢ 60.00 180.00
805.00
Add for 15% for profits and overheads 120.75
TOTAL COST 925.75
49
APPENDIX E
5 PAINTING AND DECORATING WORKS
ITEM 5
Prepare and apply 1 coat of white emulsion paint to the
Soffit of concrete roof
207.23m²
TOTAL COST 388.50
Unit cost/m² GH¢ 1.87
Materials
Emulsion paint, already computed at a utilization of 50m²/ gallon
For 1 coat of paint for an area of 496.54 m² we have;
207.23 = 4.14 gallons (1.66 buckets)
50
Add 15% for waste = 0.62 gallons
Total number of gallons of paints will be 4.76 gallons (1.90buckets)
Buy 5 gallons of emulsion paint at GH¢ 55.00 275.00
Roller brushes having a life coverage of 450 m²/roller brush
we have; 207.23 = 0.46 no
450
Buy 1 number roller brushes at GH¢ 10.00 10.00
Labour
Assume preparation and painting of 1 coat 207.23 m² at an output
of 150m²/ man-day/ coat would require;
207.23 = 1.38 days
150
Use 1 days at incentive rate of GH¢ 90.00 90.00
Add for 15% for profits and overheads 13.50
50
APPENDIX F
ACCRA POLYTECHNIC
SCHOOL OF ENGINEERING
BUILDING TECHNOLOGY DEPARTMENT
Dear Respondent, I am a student of the above mentioned institution seeking help in
finding information to add unto similar researches under the subject “The relevance of
estimating of costs in Building Construction Projects”. The research is mainly for
academic purpose therefore, answers provided will be treated as confidential. Thank
You.
SECTION A
Please tick where appropriate amongst the following questions.
1. What is your profession? a) Architect ( ) b) Engineer ( ) c) Estimator ( ) d) Quantity
Surveyor ( )
If none of the above, please provided answer in the space below
…………………………………………………………………………………………………
2. How many years have you been in the construction industry? a) 1-5 ( ) b) 6-10 ( ) c)
11-15 ( ) d) 16 and beyond ( )
3. Do you use estimates? a) Yes ( ) b) No ( )
If yes why please state your reason in the space provided
…………………………………………………………………………………………………
4. What do you say about the level of estimating practices in Accra currently? a) Good ( ) b)
Bad ( ) c) Satisfactory ( )
5. Do all estimates produced in Accra currently follow the right and proper procedures of
estimating? a) Yes ( ) b) No ( )
6. At what period are the estimates required the most in the process of construction?
51
a) The Beginning ( ) b) During the due course ( ) c) At the end ( ) d) All the above ( )
SECTION B
Evaluate amongst the following, the frequency of use of the following types of estimates
in Accra Ghana. Please tick where appropriate using the following conditions.
A= VERY FREQUENT B= FREQUENT C= FAIRLY FREQUENT D= NOT AT
ALL
ITEM TYPE OF ESTIMATE A B C D
1 Feasibility or conceptual
2 Budget Plan Estimate
3 Sketch Design and Detailing
4 Bid Estimate
5 Control resource
6 Approximate/ Rough
7 Detailed Estimate
8 Parametric Estimate
9 Analogous
10 Bottom-up
Evaluate amongst the following, how often the problems of estimates do occur in the
estimation.
A= VERY FREQUENT B= FREQUENT C= FAIRLY FREQUENT D= NOT AT
ALL
ITEM PROBLEM IN ESTIMATING A B C D
1 Technology
2 Cost involved
3 Risks
4 Omission of items
5 Choice of work method
6 Addition of overheads and profit
7 Changes in design
8 Improper rates
9 Solution jumping
10 Output of crew
52
APPENDIX G
ACCRA POLYTECHNIC
SCHOOL OF ENGINEERING
BUILDING TECHNOLOGY DEPARTMENT
Dear Respondent, I am a student of the above mentioned institution seeking your help in
finding information to add onto similar researches under the subject “The relevance of
estimating of costs in Building Construction Projects”. The research is mainly for
academic purpose therefore, answers provided will be treated as confidential. Thank
You.
Please tick where appropriate amongst the following questions.
1. Have you ever received an estimate for any building maintenance works?
a) Yes ( ) b) No ( )
If yes, answer the follow up question 2, if not continue from question 3.
2. At the end of building works such as maintenance works, do the costs of maintenance fall
within the cost estimated? a) Yes ( ) b) No ( )
3. Are there any problems one may face for no receiving the best estimate?
a) Yes ( ) b) No ( )
If yes, state at least, one of these problems.
…………………………………………………………………………………………………
4. Age of respondent. a) 20-25 ( ) b) 26-30 ( ) c) 31-35 ( ) d) 36 and above ( )
5. Do you understand the need for an estimate before building?
a) Yes ( ) b) No ( ) c) Not certain ( )
6. Are estimates always accurate and exact to undertake building projects?
a) Yes ( ) b) No ( )
If no please state why in the space provided
53
…………………………………………………………………………………………………..
7. If estimates produced are not accurate, would you reject them or not? a) Yes ( ) b) No ( )
8. Would you advice that people seek estimates before undertaking building projects?
a) Yes ( ) b) No ( )
54
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PRODUCED BY AN AUTODESK EDUCATIONAL PRODUCT
680
2990
680 1900
680 680
680 2990
2990
680 1900
2990
68

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A study into the relevance of estimating of costs in building construction projects

  • 1. 1 A STUDY INTO THE RELEVANCE OF ESTIMATING OF COSTS IN BUILDING CONSTRUCTION PROJECTS A CASE STUDY OF THE PROPOSED REHABILITATION OF THE ENGINEERING LABORATORY BUILDING AT THE ACCRA POLYTECHNIC CAMPUS (ACCRA CENTRAL) BY OBENG-NKETIAH THOMAS A Research Project Report Submitted to the DEPARTMENT OF BUILDING TECHNOLOGY ACCRA POLYTECHNIC SCHOOL OF ENGINERRING In Partial Fulfillment of the Requirements for the award of Higher National Diploma (HND) June, 2016
  • 2. i DECLARATION I hereby declare that this study is my own work and that, to the best of my knowledge and belief, it contains no materials previously published or written by anyone or material which to a substantial extent has been accepted for the award of any Higher National Diploma in Accra Polytechnic. OBENG-NKETIAH THOMAS ………………..... …………............. Signature Date
  • 3. ii CERTIFICATION It is hereby certified that, the project work has been supervised and assessed in accordance with laid down guidelines by Accra Polytechnic CERTIFIED BY: ……………………........................ ................................... MRS. ADWOA AMPADU-ASIAMAH DATE (SUPERVISOR) ……………………............... ................................... MR. BROOKMAN AMISSAH DATE (HEAD OF DEPARTMENT)
  • 4. iii ACKNOWLEDGEMENT I am grateful to the Almighty God for assisting me to complete this work and sustaining me through my studies. I appreciate the invaluable pieces of advice and guidance my supervisor, Mrs. Adwoa Ampadu- Asiamah has given me that helped me in coming out with this project work. I also wish to show appreciation to all who provided me with the information for this project work. God bless you all.
  • 5. iv ABSTRACT Truly, estimating plays a very vital role in the life of building construction projects. It gives rise to reaching an estimate which may be used to predict the total cost of a project. Estimating for the time being, has been known to revolve principally around the need for all interested parties within a building process, but mainly the contractor to be able to predict as accurately as possible, the cost of construction. The purpose of the study was to tell the relevance of proper estimating practices. Observations and other research had shown estimating practices is done poorly especially amongst people in the small scale firms. The study was aimed at assessing the relevance of estimating of cost pertaining to building construction projects. Aim was further broken down into simpler objectives which included finding out the level of use of estimating as a part of building projects in Accra, examining the current building construction estimating practices in Accra, identifying problems associated with estimating of building construction projects and last but not least preparing cost estimates for the project under study. Broadening the scope of knowledge on the topic established through literature reviews and encompassed relevant subjects such as giving detailed definitions of what an estimate and the process of estimating is, reasons for estimating, types of estimates from variety of sources, estimating in Ghana and many more just to mention but a few. The completion of literature review gave way to defining the methods that were to be used in data gathering which were mainly stated as questionnaires and interviews, the type of research which was to be done, the sampling technique which was required for the sampling and certain possible limitation which the study was likely to encounter of be subject to. Proper analysis was done on the raw data gathered since it meant nothing until compiled and defined appropriately. Using tables, pie-charts and in some cases some statistical ranking such as the Relative Importance Index (RII), data gathered were well analysed. Relevant findings such as a good number of clients and professionals stakeholders knowing about estimates and its use as well as the estimating process having its inherent problems which in many cases cause estimates produced to be deficient. Summary of findings from the study were also discussed as required in this section. Finalizing the work by concluding and recommendations were done upon completion of the data analysis and presentation. Conclusions were fine-tuned to answer the objectives which were stated for the study. A reasonable and workable estimate was reached for the rehabilitation works which was to be done. Proper recommendations were stated as required to ensure the relevance of estimating in building construction projects.
  • 6. v DECLARATION........................................................................................................................i CERTIFICATION .....................................................................................................................ii ACKNOWLEDGEMENT........................................................................................................iii ABSTRACT..............................................................................................................................iv TABLE OF CONTENTS.......................................................................................................v-xi TABLE OF CONTENTS CHAPTER ONE ......................................................................................................................1 INTRODUCTION....................................................................................................................1 1.0 BACKGROUND OF STUDY.............................................................................................1 1.0.1 DEFINITION OF CONSTRUCTION ESTIMATING ................................................1 1.0.2 CONCEPT OF CONSTRUCTION ESTIMATING..................................................1-2 1.1 STATEMENT OF PROBLEM............................................................................................2 1.1.1 RESEARCH QUESTIONS........................................................................................2-3 1.2 AIM OF STUDY .................................................................................................................3 1.3 OBJECTIVES OF STUDY..................................................................................................3 1.4 SIGNIFICANCE OF STUDY ............................................................................................3 1.5 SCOPE OF STUDY.............................................................................................................3 CHAPTER TWO .....................................................................................................................4 LITERATURE REVIEW .......................................................................................................4
  • 7. vi 2.0 INTRODUCTION ...............................................................................................................4 2.1 CONSTRUCTION COST ESTIMATING IN PRESENT DAY GHANA ......................4-5 2.2 CONCEPT OF ESTIMATING OF CONSTRUCTION COSTS ........................................5 2.3 TYPES OF ESTIMATE IN CONSTRUCTION ..............................................................5-6 2.3.1 CLIENT’S ESTIMATES...........................................................................................6-7 2.3.1.1 FEASIBILTY OR CONCEPTUAL ESTIMATE...............................................7 2.3.1.2 BUDGET PALN ESTIMATE............................................................................7 2.3.1.3 SKETCH DESIGN AND DETAILING ESTIMATE ........................................7 2.3.1.4 BID ESTIMATES............................................................................................7-8 2.3.1.5 CONTROL RESOURCE ESTIMATE...............................................................8 2.3.2 CONTRACTOR’S ESTIMATE ...................................................................................8 2.4 OTHER TYPES OF ESTIMATES FROM DISTINCT SOURCES .................................. 9 2.4.1 ESTIMATE TYPES ACCCORDING TO THE PEURIFOY & OBELENDER ........9 2.4.1.1 ROUGH ESTIMATE........................................................................................9 2.4.1.2 DETAILED ESTIMATE.............................................................................9-10 2.4.2 ESTIMATE TYPES ACCORDING TO THE APEX PROJECT CONSULTING (CONZELMAN, 2014) ...........................................................................................................10 2.4.3 COST ESTIMATE TYPES WITH REGARDS TO THE US GAO ......................10-11 2.5 GROUPING OF THE VARIOUS SOURCES OF TYPES OF ESTIMATES..................11
  • 8. vii 2.6 WHY, WHEN AND HOW DO WE ESTIMATE FOR CONSTRUCTION WORKS.....12 2.6.1 WHY ESTIMATE THE COST OF BUILDING CONSTRUCTION WORKS .........12 2.6.2 AT WHAT STAGE OF CONSTRUCTION IS THE ESTIMATE REQUIRED .......13 2.6.3 BASICS FOR THE PREPARATION OF AN ESTIAMATE......................................13 2.6.3.1 PROCESSES INVOLVED IN THE PREPARATION OF ESTIMATES ....13-14 2.6.3.2 PROCESSES INVOLVED IN THE ESTIMATING OF COSTS FOR BUILDING CONSTRUCTION PROJECTS .........................................................................14 2.6.3.2.1 PLANNING THE WORK...........................................................14-15 2.6.3.2.2 QUANTITIES...................................................................................15 2.6.3.2.3 COSTS AND PRICING ...................................................................15 2.7 PERSON(S) RESPONSIBLE FOR ESTIMATING OF CONSTRUCTION WORKS ..15- 16 2.8 FACTORS TO BE CONSIDERED IN ESTIMATING OF CONSTRUCTION COST...16 2.8.1 FACTORS THAT AID OR HELP IN PROJECT COST ESTIMATING ............17-19 2.9 PROBLEMS ASSOCIATED WITH ESTIMATING OF COSTS OF BUILDING CONSTRUCTION PROJECTS...............................................................................................19 2.10 PURPOSES OF CONSTRUCTION ESTIMATING ......................................................20 2.11 ADVANTAGES AND DISADVANTAGES OF ESTIMATING ..................................20 2.11.1 ADVANTAGES OF ESTIMATING........................................................................20
  • 9. viii 2.11.2 DISADVANTAGES OF ESTIMATING .................................................................20 2.12 ESTIMATING AS AN IMPORTANT TOOL FOR PROJECT MANAGEMENT....21 CHAPTER THREE...............................................................................................................22 METHODOLOGY ................................................................................................................22 3.0 INTRODUCTION .............................................................................................................22 3.1 METHODS OF DATA COLLECTION............................................................................22 3.2 POPULATION OF STUDY..............................................................................................22 3.3 SAMPLE AND SAMPLING TECHNIQUES ..................................................................22 3.4 RESEARCH INSTRUMENT.......................................................................................22-23 3.5 DATA ANALYSIS............................................................................................................23 3.6 POSSIBLE LIMITATIONS TO DATA GATHERING PROCESS .................................23 CHAPTER FOUR..................................................................................................................24 DATA ANALYSIS AND PRESENTATION.......................................................................24 4.0 INTRODUCTION .............................................................................................................24 4.2 PRESENTATION AND ANALYSIS ...............................................................................24 4.3 ANALYSIS OF DATA GATHERED FROM CLIENTS ............................................24-27 4.4 ANALYSIS OF DATA GATHERED FROM PROFESSIONAL STAKEHOLDERS...27- 33 4.5 DATA GATHERED FROM INTERVIEW WITH AN ESTIMATOR .......................33-34
  • 10. ix 4.6 SUMMARY OF FINDINGS FROM THE STUDY.....................................................34-35 4.7 CASE STUDY..............................................................................................................36-37 4.8 COMPUTATION OF TOTAL ESTIMATE OF REHABILITATION PROJECT...........38 CHAPTER FIVE ...................................................................................................................39 CONCLUSION AND RECOMMENDATION...................................................................39 5.0 INTRODUCTION .............................................................................................................39 5.1 CONCLUSIONS...........................................................................................................39-40 5.2 RECOMMENDATIONS..............................................................................................40-41 REFERENCES ...................................................................................................................42-44 APPENDICES APPENDIX A: ALTERATIONS AND DEMOLOITION WORKS ......................................44 APPENDIX B: GLAZING WORKS.......................................................................................45 APPENDIX C: REPAIR WORKS TO CONCRETE ROOF ..................................................46 APPENDIX D: PAINTING AND DECORATING WORKS ................................................47 APPENDIX E: PAINTING AND DECORATING WORKS .................................................48 APPENDIX F: QUESTIONNAIRES TO PROFESSIONAL STAKEHOLDERS............49-50 APPENDIX G: QUESTIONNAIRES TO CLIENTS.........................................................51-52 LIST OF TABLES
  • 11. x TABLE 2.1: CONSTRUCTION ESTIMATING MODEL PROCESS DURING THE DEVELOPMENT CYCLE........................................................................................................6 TABLE 2.2: A SYSTEM OF FIVE CLASSES OF ESTIMATE IN TERMS OF DEGREE OF ACCURACY ...........................................................................................................................11 TABLE 2.3: A COMPILATION OF ALL THE VARIOUS SOURCES AND CLASSIFICATION OF ESTIMATES....................................................................................11 TABLE 4.1: THE RESPONDENTS AGE GROUPING ........................................................24 TABLE 4.2: WHETHER TOTAL COST FALL WITHIN THAT ESTIMATED IN MAINTENANCE WORKS ....................................................................................................25 TABLE4.3: THE NEED FOR AN ESTIMATE BEFORE PERFORMING BUILDING PROJECTS ..............................................................................................................................26 TABLE 4.4: WHETHER ESTIMATES PRODUCED ARE ALWAYS ACCURATE FOR BUILDING PROJECT ...........................................................................................................27 TABLE 4.5: PROFESSIONAL RESPONDENTS FOR THE STUDY ..................................27 TABLE 4.6: THE YEARS OF EXPERIENCE IN THE CONSTRUCTION INDUSTRY ...28 TABLE 4.7: OPINION ABOUT THE LEVEL OF ESTIMATING PRACTICES IN ACCRA ..................................................................................................................................................29 TABLE 4.8: THE ASSESSMENT OF WHETHER ALL ESTIMATES PRODUCED FOLLOW THE RIGHT AND PROPER PROCEDURES......................................................29 TABLE 4.9: THE PERIOD AT WHICH ESTIMATES ARE REQUIRED THE MOST IN CONSTRUCTION ..................................................................................................................30
  • 12. xi TABLE 4.10: A STATISTICAL RANKING OF THE TYPES OF ESTIMATES FREQUENTLY USED IN ACCRA GHANA .......................................................................30 TABLE 4.11: THE SUMMATION OF THE A AND B FOR FREQUENTLY OCCURRING ESTIMATES BEING USED EXPRESSED IN PERCENTAGE ...........................................31 TABLE 4.12: THE SUMMATION OF THE C AND D FOR NON-FREQUENTLY OCCURRING ESTIMATES USED IN ACCRA ...................................................................31 TABLE 4.13: A STATISTICAL RANKING OF THE OF FREQUENCY OF PROBLEMS OF ESTIMATING THAT OCCUR...............................................................................................32 TABLE 4.14: THE SUMMATION OF THE A AND B FOR FREQUENTLY OCCURRING EXPRESSED IN PERCENTAGE...........................................................................................32 TABLE 4.15: THE SUMMATION OF THE C AND D FOR NON-FREQUENTLY OCCURRING PROBLEMS EXPRESSED IN PERCENTAGE ............................................33 TABLE 4.16: THE ALL-IN-DAILY-RATE WAGES OF LABOUR ....................................34 TABLE 4.17: A COMPUTATION OF THE ESTIMATE OF REHABILITATION PROJECT ..................................................................................................................................................36 LIST OF FIGURES FIGURE 4.1: THE ANALYSIS OF WHETHER CLIENT HAS EVER RECEIVED AN ESTIMATE..............................................................................................................................25 FIGURE 4.2: WHETHER TOTAL COST FALL WITHIN THAT ESTIMATED IN MAINTENANCE WORKS............................................................................................25 FIGURE 4.3: PROFESSIONAL RESPONDENTS FOR THE STUDY.................................28
  • 13. 1 CHAPTER ONE INTRODUCTION 1.0 BACKGROUND OF STUDY According to Smith (1986) pg. 1, the subject of estimating revolves principally around the need for all interested persons or parties involved in the building process, but particularly the contractor to be able to predict as accurately as possible, the cost of construction. Traditionally in the construction industry but unlike many other industries, contractors have been regarded to commit themselves to a price before carrying out any work on site and in most cases many months or even risky occupation, although it could be said that this risk is now mitigated to some extent by the move widespread use of “fluctuation” contracts. 1.0.1 DEFINITION OF CONSTRUCTION ESTIMATING Construction estimating from early times to contemporary days has been defined in several ways including; 1. It is the scientific way of working out the approximate cost of an engineering project before execution of the work.(Swedish College of Engineering & Technology, Wah Cantt, 2015) 2. Computation of a price with regards to time and resources requirements upon which a firm quotation is based.(Business Dictionary, 2015) 3. It is the activity of pricing work in preparation for making an offer to carry out that work for a sum of money. (Buchan et al, 1995 pg. 1) 4. The process of calculating the quantities and costs of the various items required in connection with the work. (Advanced Civil Engineering, 2016) 5. An essential task for budgeting and bid preparation for any construction project.(Samphaongoen,2010) 1.0.2 CONCEPT BEHIND CONSTRUCTION ESTIMATING Construction contractors usually prepare bids to compete for a contract award for a project (an endeavour with a definite start and an end, undertaken to deliver a unique product a service; Moustafaev, 2015). To prepare a bid, first a cost estimate is prepared to determine the costs and then establish the price(s). This involves reviewing the project plans and specifications (quality of materials, workmanship and its protection, British Standard Institution, 1998) to
  • 14. 2 produce a take-off, which is a listing of all the materials and items of work required by the construction documents. Together with prices for these components, the measured quantities are the basis for calculation of the direct cost. Indirect cost and profit are added to arrive at the total amount. Estimating by Cullen (2014), has over the years been applied in several fields including but not limited to construction, interpretation of scientific experiments, project management, quality control and many more. For the purpose of the study, the field to be noted is the construction field. Basically estimating of cost factors for building up unit rates in construction works are as follows;  Cost of labour  Material cost  Plant cost  Profits and overheads 1.1 STATEMENT OF PROBLEM For some time now, within the limitations of the nation Ghana, it has been noted by professionals and some other stakeholders of construction projects that many building construction projects do not undergo the necessary estimating of cost functions embodied in their works especially with those who find themselves in the small scale construction projects. Estimating of cost of building construction project is seen as a thing of the past due to experiences of these persons from previous works which they have ever done. This has been a great ordeal and headache for many persons including building contractors, promoters and many more in the sense that they do suffer the bad fruit of their negligence to do proper estimating of cost before undertaking projects. Performing proper estimating is the last thing which many, into building construction projects would consider doing and hence has been put to the ground state instead of looking at it as a critical exercise. They perceive that buildings will definitely arise and be completed whether or not the estimating of cost aspects of building construction projects is done accurately so this exercise seeks to look at the relevance of estimating of building construction projects in Accra Ghana. 1.1.1 RESEARCH QUESTIONS  Why estimate the cost of construction projects?  Who is/are the person(s) supposed to perform such function?
  • 15. 3  At what stage of the construction process does one need to come out with the estimate value?  What factors account for the proper estimating of cost?  Does the estimating function come with its pros and cons? 1.2 AIM OF THE STUDY The study is aimed at assessing the relevance of estimating of cost pertaining to building construction projects. 1.3 OBJECTIVES OF STUDY The objectives of the study are to;  Find out the level of use of estimating as a part of building projects in Accra.  Examine the current building construction estimating practices in Accra.  Identify problems associated with estimating of building construction projects.  Preparing cost estimates for the project under study. 1.4 SIGNIFICANCE OF STUDY The study is to tell the relevance of estimating of cost in building construction projects and to tell the benefits to individuals, the society, construction industry and even the nation at large on the relevance of performing such functions as it should be in, building construction projects. 1.5 SCOPE OF STUDY The study is limited to examining the relevance of building construction projects, a case study of the rehabilitation of the Engineering Laboratory Building at the Accra Polytechnic Campus.
  • 16. 4 CHAPTER TWO LITERATURE REVIEW 2.0 INTRODUCTION As inferred from the previous chapter, Construction Estimating has been defined in several ways including, the scientific way of working out the approximate cost of an engineering project before execution of the work. (Swedish College of Engineering & Technology, Wah Cantt, 2015) Construction estimating is totally different from calculation of the exact cost after completion of a project. It requires a thorough knowledge of the construction procedures and cost of materials and labour in addition to the skill, experience, foresight and good judgement. (Swedish College of Engineering & Technology, Wah Cantt, 2015) Estimating is one of the vital functions which do help in every building construction project. Some call the estimating function the “future cost foreteller". As per Cullen (2014), generally estimating has over the years been applied to various fields of study and the working areas including but not limited to;  Construction (e.g. Building, roads, dams etc.)  Interpretation of scientific experiments  Project management  Quality control etc. 2.1 CONSTRUCTION COST ESTIMATING IN PRESENT DAY GHANA Laryea (2010) said an estimate is an important part of a construction contract. It forms the basis of the price upon which a contract is let. But also, it could be a potential source of dispute between the parties to a construction contract, especially when changes or discrepancies and more cost are incurred. Therefore, the preparation of an estimate of the likely project cost requires a sound quality of design, skilled estimating, and a sound framework within which the estimate is being prepared. Laryea (2010) added that, in Ghana, the estimate for a construction is often prepared by Quantity Surveyors (QSs) who have often graduated with a degree in Building Technology from the Kwame Nkrumah University of Science and Technology, Kumasi (Badu and Amoah, 2003). There are also some practicing QSs who graduate from a number of Polytechnics across Ghana, with Higher National Diploma (HND) in Building Technology (Fugar and Adinyira, 2009) or a Construction Technician Course (CTC) Certificate. Most QSs in Ghana endeavour
  • 17. 5 to obtain membership with the Quantity Surveying (QS) Division of the Ghana Institution of Surveyors (GhIS). However, the GhIS does not regulate the practice of Quantity Surveying in Ghana in the same way that is done by its affiliate bodies like the Ghana Institute of Architects (GIA) and Ghana Institute of Engineers (GhIE) who regulate the practices of Architects and Engineers respectively in Ghana on the basis of Professional Bodies Registration. One perennial problem in Ghana when it comes to construction is the quality and reliability of estimates provided by QSs. Most projects in developing countries, including projects in Ghana, end up grossly over-budget and over time (Baloi and Price, 2003). There are several reasons for this, and some of them are partly to be shared with Architects and Engineers in Ghana who rarely provide the detailed design and specifications needed to estimate and price a building project or job well. Also one reason which seems to be the apparent lack of experience on the part of those who prepare the estimates when it comes to understanding the actual detailed processes of construction on site as well as what the client actually wants. These two factors are relevant in achieving a good estimate of construction cost. 2.2 CONCEPT OF ESTIMATING OF CONSTRUCTION COSTS The construction estimating function in building projects is one of the most critical work sessions which gives rise to reaching an estimate (approximated value) to help in the building (construct something by putting parts or materials together, Oxford Dictionaries 2015) process. 2.3 TYPES OF ESTIMATE IN CONSTRUCTION According to Amoah-Mensah (1995), the estimating process can be said to be common to both a Promoter and a Contractor in realizing and assessing a project. The client or promoter needs the estimate before seeking approval for the project’s planning purposes and also be able to ascertain the cost of the approved project (post budget stage) so that the rate of funding commitment can be anticipated for. On the other hand, the contractor prepares the project estimate as a basis of the bid for the completion of the works. At the completion stage of projects, the estimate provides the basis from which cost control of the project can be exercised by both the promoter and the contractor. For an effective realization of a building construction project, two forms of estimates are namely; 1. Client’s estimate 2. Contractor’s estimate
  • 18. 6 In accordance to Peurifoy & Obelender, (2004) the purpose of estimating is to determine the forecast required to complete a project in accordance with the contract plans and specifications. This type of estimate is produced by an estimator employed by a client or someone with the authority of the client. For any given project, the estimator can determine with reasonable accuracy the direct cost of materials, labour and equipment. The bid price can then be determined by adding to the direct costs the cost for overheads (indirect costs required to build the project), contingencies (cost for any potential unforeseen work), and profit. The bid price of a project should be high enough to enable the contractor to complete the project with a reasonable profit, yet low enough to be within the owner’s budget. 2.3.1 CLIENT’S ESTIMATES Every building project undergoes a development cycle commencing from its conception through design, construction, commissioning and maintenance (BS3811 (1974) defines maintenance as work undertaken in order to keep or restore every facility, i.e. every part of a site, building and its contents to an acceptable standard) during its economic life. Table 2.1 COST CONTROL (ESTIMATES CAN OCCUR AT ANY STAGE OF THIS PROCESS) COST PLANNING A INCEPTION B FEASIBILITY ANALYSIS C OUTLINE PROPOSAL D SCHEME DESIGN E DETAIL DESIGN F PRODUCTION INFORMATION G BOQ H TENDER ACTION J PROJECT PLANNING K SITE OPERATIONS L COMPLETION M FEED BACK BRIEFING SKETCH PLANS WORKING DRAWINGS SITE OPERATIONS PRE –CONTRACT PERIOD POST CONTRACT PERIOD Table showing construction estimating model process during the development cycle
  • 19. 7 At each of the stages in the development cycle, an appropriate form of estimate is required to plan for the resources and time (activities) to be involved in the process. In Table 1, estimating methods to be used at the identified stages are as follows (Amoah-Mensah 1995);  Feasibility or conceptual estimates  Budget planning estimates  Sketch design and detailing estimates  Bid estimates  Control resources estimating for effective monitoring 2.3.1.1 FEASIBILTY OR CONCEPTUAL ESTIMATE This is the estimate used for determining the economic feasibility of a project, the probable sequence and cost for construction of a project, and as a guide in the choice between alternative locations or plans. (McCracken, 2005) Feasibility costing is used in detailed unit price estimates where they may be referred as work packages. Here, each contributing trade cost is fine-turned to the local area and type of project. (Bledsoe, 1992) 2.3.1.2 BUDGET PLANNING ESTIMATE Projects after passing through the feasibility stage, needs to be budgeted for, before commencing with the design and this would require the assessment of the conceptual estimates in respect of factors affecting the project’s assumed resources flow at the feasibility stage. Preparing a budget for a project requires two basic steps thus the preparation of a rough estimate and the creation of the detailed budget estimate. (Portny, 2010) 2.3.1.3 SKETCH DESIGN AND DETAILING ESTIMATE The estimate required at each stage is meant to identify where better cost alter are likely to be so as to achieve the ideal least cost design solution. With the coming out of the sketch design, proposed space allocation of length of roads etc. would have been known and pre-determined gross unit rate applied to obtain the estimate. (Amoah-Mensah, 1995) 2.3.1.4 BID ESTIMATES The purpose of bid estimating is to set a basis upon which all other bids, expected to be received can be compared. This may be achieved by the use of BOQ's, Bills of Approximate Quantities
  • 20. 8 etc. This bid is likely needed to set for your advertisement to be shown anywhere on the first page of search results. The estimate is based on each keyword’s quality score (an estimate of the quality of your advertisement, keywords, and landing page. Higher quality advertisements can lead to lower prices and better ad positions) and competition from advertisers. (AdWords Help, 2015) 2.3.1.5 CONTROL RESOURCE ESTIMATE This estimate serves as a baseline to make sure cost operations flow in accordance to as planned. That is the estimate to check whether cost factors move on track, so in the case of appearance of variances, this estimate would help to ensure that cost correlates to the planned. It will be a basis for one not to exceed the budgeted but to stay within and be able to make profit in the project. (The Constructor, 2015) 2.3.2 CONTRACTOR’S ESTIMATE This is the other form of estimate that helps in realizing of the project by the contractor as well as the client. This estimate is prepared by the contractor or someone on behalf of the contractor which is used as fundamentals to tender for a project. It is designed and constructed in such a manner that a contractor may succeed in winning a contract so, much caution is taken in assigning cost to labour, materials, plant and any other necessaries. This estimate is prepared to be very realistic and competitive because for all one should know, not a single contractor may venture into tendering for a job especially when it comes to the open competitive tendering which forms one of the major methods of procurement .The processes of estimating here are basically put into five distinct steps and they are as follows; 1. Management decides whether to accept or decline an invitation to tender (Decision to tender). 2. Estimator gathers all necessary information and familiarizes himself with the project (Gathering of information). 3. Preparation of an estimate. 4. Management converts estimate into a tender (Adjudication by management) 5. Submission of the tender. All the above processes in the preparation of the contractor’s estimate as outlined have their different or distinct factors which do affect them as part of the process of estimating which makes each of them stand out as a different entity from the other. (Amoah-Mensah, 1995)
  • 21. 9 2.4 OTHER TYPES OF ESTIMATES FROM DISTINCT SOURCES Study and other researches have proven different types of estimates even though from critical and thorough look, they do have similarities and tend to move in the same line in terms of meaning and function. 2.4.1 ESTIMATE TYPES ACCCORDING TO THE PEURIFOY & OBELENDER In accordance to Peurifoy & Obelender (2004), there are two main types of estimates namely; 1. Rough/Approximate estimate 2. Detailed estimate Pertaining to the purpose of estimate, the detailed estimate may be subdivided into three other estimates and they are;  Contractor’s estimate  Engineer’s estimate  Progress estimate 2.4.1.1 ROUGH ESTIMATE Estimate of cost before constructing plans or architectural drawings of the project scheme, when even detailed or structural design has not been carried out, is called rough or approximate estimate. An estimate produced when there is little or scanty information. These estimates are used for obtaining administrative approval from the concerning authorities. Sometimes, on this basis, a proposal may be dropped altogether. 2.4.1.2 DETAILED ESTIMATE This estimate is prepared by carefully and separately calculating in detail the costs of various items of the work that constitute the whole project from the detailed working drawings after design has been finalized. The mistakes, if any, in the rough cost estimate are eliminated in the detailed estimate. This estimate is submitted to the competent authorities for obtaining technical sanction. Burke (1952), pg. 76, stated other names which may be given to the detailed estimate as definitive estimate, project control estimate, quotation or tender. The detailed estimate subdivisions are as follows;
  • 22. 10  Contractor’s estimate: It is made by the contractor for determining the price or prices to be bid. It is usually a carefully prepared detailed estimate. A highly rated or qualified person must be one to be employed to undertake the production of such estimate taking into consideration time, quality and cost.  Engineer’s estimate: It is made by the Engineer (consultant) usually for the purposes of financing the work and for checking bids and running bills submitted by contractors.  Progress estimate: They are made by the engineer at regular intervals for the completed parts of the project during the progress of the work for determining the amounts of partial payments (i.e. valuations as to whether interim, penultimate or the final) to be made to the contractor. 2.4.2 ESTIMATE TYPES ACCORDING TO THE APEX PROJECT CONSULTING BY TOM CONZELMAN There are many types of programs, catalogues or other tools for construction cost estimating but, all of these price-delivery tools fall into one of the three basics; 1. Analogous/Comparative estimate: This is sometimes called top-down estimate. It is the handiest and least detailed. They often rely on experience. Cost information is attained from historical information from previous, similar projects. (Lester, 2014) pg. 60. 2. Parametric estimate: This brings about more observations. While not detailed down to every nut and bolt. It relies on the mathematical relationship of cost per unit. The unit can be square footage or length of cable etc. These unit costs are later multiplied by the quantities in the particular project. (Lester, 2014) pg. 60. 3. Bottom up estimate: It is a detailed quantity and labour take off. Materials and tasks are broken down into the smallest reasonable component. This estimate is used by almost all general contractors and especially in the case of competitive bid process. 2.4.3 COST ESTIMATE TYPES WITH REGARDS TO THE US GAO Common cost estimate classifications historically used are;  Order of magnitude  Intermediate  Detailed estimate
  • 23. 11  Preliminary  Definitive These estimate classifications as mentioned above, follow the modern published classes 5, 4, 3, 2 and 1, respectively. The U.S Department of Energy as well as Association for Advancement of Cost Engineering (AACE) and many others use a system of five classes of estimates showing the level or degree of accuracy of estimates under the subject of estimating in construction. Table 2.2 ESTIMATE CLASS NAME PURPOSE DEFINITION LEVEL 5 Order of Magnitude Screening or feasibility 0 to 2% 4 Intermediate Concept study or feasibility 1% to 15% 3 Preliminary Budget or control 10% to 40% 2 Substantive Control or bid/tender 30% to 70% 1 Definitive Check estimate or bid 50% to 100% Table showing a system of five classes of estimate in terms of degree of accuracy 2.5 GROUPING OF THE VARIOUS SOURCES OF TYPES OF ESTIMATES Table 2.3 SOURCES TYPES OF ESTIMATE AMOAH-MENSAH CLIENT’S AND CONTRACTOR’S PEURIFOY & OBELENDER ROUGH AND DETAILED APEX PROJECT CONSULTING (TOM CONZELMAN) ANALOGOUS, PARAMETRIC AND BOTTOM UP US GAO;AACE ORDER OF MAGNITUDE, INTERMEDIATE, PRELIMINARY, SUBSTANTIVE, DEFINITIVE Table showing a compilation of all the various sources and classification of estimates
  • 24. 12 2.6 WHY, WHEN AND HOW DO WE ESTIMATE FOR CONSTRUCTION WORKS 2.6.1 WHY ESTIMATE THE COSTS OF BUILDING CONSTRUCTION WORKS With reference to Manfredonia et al (2010), accurately prediction of the cost of future projects is vital to the survival of any business or organization contemplating future construction. Cost estimators develop the cost information that business owners or managers, professional design team members, and construction contractors need to make budgetary and feasibility determinations. From an owner’s perspective or point of view the cost estimate may be used to determine the project scope or whether the project be proceeded. On the other hand, cost estimates will determine the construction bid or whether the company will bid. As the saying goes “one man’s meat is another man’s poison” so, the estimating of cost importance varies from one to another. There are a countless number of reasons accounting to the need of estimating of costs of building construction projects including but not limited to; 1. To complete building projects within the accurate time, quality and cost as a major function in project planning and control. 2. To serve as a basis for proper tendering (the process whereby a contractor, given the net cost, converts this to the sum that will actually be submitted to the client, together with any qualifications that are seen to be required. At this stage the principal discussions are concerned with the profit and the risk, together known as the margin or the mark-up. Pilcher, 1992) 3. To avoid any financial difficulties resulting in the stalling in the course of the building project. 4. Establishing the unit rate for plant, material, labour, profit and overheads accurately. 5. Clients need estimates in bidding to select a contractor to perform the proposed work. 6. Foretell amount of resources (materials, manpower, machine, management expertise, and money) required for a building project to be successful. 7. Determination of project scope or whether a project should proceed. (Swedish College of Engineering & Technology, Wah Cantt, 2015; Manfredonia, 2010)
  • 25. 13 2.6.2 AT WHAT STAGE OF CONSTRUCTION IS THE ESTIMATE REQUIRED With reference to the information from Table 1, one can tell that the estimates are required right from the onset of the inception stage through to the point of feedback stage or process. The estimate might be needed from the time where a project is conceived in the minds of a client (individual, group or cooperate body) right up to the completion stage. It is required by;  Client  Contractor From the perspective of the client, it is required; 1. At the early stages of construction to compare his/her bid price to that of any contractor to select a competent one for a project at hand. 2. To help him or her to ensure proper and adequate future cost commitments to the contractor when he/she has completed and valued construction works to a stage. From the perspective of the contractor, it is required; 1. For adequacy in project planning and control so as to be able to complete the project within the predicted cost. 2. By contractor’s selected persons to review costs amounting to work achieved or gained. 2.6.3 BASICS IN THE PREPARATION OF AN ESTIMATE There is no one way process in the preparation of estimates. Various sources have come out with different and pertinent steps involved in the preparation of estimates. Some writings have been seen to have come from Dutta (1959), Amoah-Mensah (1995) and many just to mention but a few. 2.6.3.1 PROCESSES INVOLVED IN THE PREPARATION OF ESTIMATES According to Dutta (1959), there are three processes in the preparation of an estimate and has been defined by the Misronet (2015) as; 1. Taking out quantities: First and foremost, the measurements are extracted from the drawings and entered on measurement sheets. The measurements to be taken out would depend upon the unit of measurement. For example, in the case of stone masonary in superstructure, length, thickness and height of the walls above plinth level would be taken out from drawings
  • 26. 14 and entered on the measurement sheet, whereas, in the case of plastering, only the lengths and heights of the walls would be entered. Obviously, the unit of measurement in the first case is cubic meter and that in the second case is square meter. 2. Squaring out: The second step consists of working out volumes, areas, etc. and casting up their total in recognized units. 3. Abstracting: In the third step, all the items along with the net results obtained in the second step are transferred from measurement sheets to specially ruled sheets having rate column ready for pricing. The second and third steps above are collectively known a working up. All calculations in these stages and every entry transferred should be checked by another person to ensure that no mathematical or copying errors occur. This person to do such reviewing of the calculations must be one endowed with a high degree of knowledge in the field of work. According to Amoah-Mensah (1995) under the subject, “Preparation of Estimates”, the processes of preparing the estimate generally falls under; 1. Establishment of all-in-rates for labour and plant 2. Building-up unit rates for the bill items. 3. Calculating the project overheads. 2.6.3.2 PROCESSES INVOLVED IN THE ESTIMATING OF COSTS FOR BUILDING CONSTRUCTION PROJECTS Pertaining to the Unified Facilities Criteria (UFC), (2010), the coming out of a construction cost estimate consists of the following;  Descriptions of work elements to be accomplished (tasks).  A quantity of work required for each task.  A cost for each task quantity. 2.6.3.2.1 PLANNING THE WORK A cost engineer must thoroughly understand the project scope, the operability, environmental and aspects of the project being estimated. The cost engineer must also review drawings, specifications, and construction sequences and durations to determine total construction costs. A site visit is strongly recommended to enable the cost engineer to relate the physical characteristics of the project to the available design parameters and details. This is particularly
  • 27. 15 important on projects with difficult site conditions, major maintenance and repair projects, and alteration/addition projects. The construction sequence must be well developed as soon as possible and should be used to provide a checklist of construction requirements throughout the cost estimating process. (UFC, 2010) 2.6.3.2.2 QUANTITIES The quantity take-off is an important part of the cost estimate. It must be as accurate as possible, and should be based on all available engineering and design data, and use of appropriate automation tools as available. After the scope has been analyzed and broken down into the construction tasks, each task must be quantified prior to pricing. Equal emphasis should be placed on both accurate quantity calculation and accurate pricing. Quantities should be shown in standard units of measure and should be consistent with design units. The detail to which the quantities are prepared for each task is dependent on the level of design detail. Quantity calculations beyond design details are often necessary to determine a reasonable price to complete the overall scope of work for the cost estimate. Project notes will be added at the appropriate level in the estimate to explain the basis for the quantity calculations, to clearly show contingencies, and to note quantities determined by cost engineering judgment that will be reconciled upon design refinement. (UFC, 2010) 2.6.3.2.3 COSTS AND PRICING The cost for each task should be developed by summing the direct cost elements for labour, equipment and materials. The indirect costs and other mark ups associated with each task or work item should be identified and are considered separately for the specific project. (UFC, 2010) 2.7 PERSON(S) RESPONSIBLE FOR ESTIMATING OF CONSTRUCTION WORKS Estimating of cost of building construction projects is done by an estimator. Such a person may be a specialist or may carry the estimating function in conjunction with other functions such as quantity surveying, general management etc. The responsibility of estimators should be limited to the proper preparation of the estimated costs of building projects. An estimator may be employed either on the client or contractors side. (Anonymous, 2014) An estimator aside performing the estimating function permanently or full time, may do that on part-time basis making him or her gain lots of proficiencies from other working fields inbuilt in the building
  • 28. 16 construction industry as appropriate. Such person(s) should possess certain professional behaviour including but not limited to;  Ethics  Integrity  Good judgement  Attitude  Skill  Experience  Foresight (Cullen, 2014; Swedish College of Engineering & Technology, Wah Cantt, 2015) 2.8 FACTORS TO BE CONSIDERED IN ESTIMATING OF CONSTRUCTION COST Burke (1952) pg. 74 in his quest of elaborating on Project estimating came out with several factors which may help in the proper prediction of cost of building construction works including;  Person(s) made to perform such functions in terms of ; 1. Experiences of the fellow. 2. Technical know-how abilities. 3. Qualification and level of education. 4. Speed and accuracy levels. 5. Commitment from the individual etc.  The period in which the product of estimation (estimate) is required.  Procedures, methods or standards works followed for the estimating.  The availability of the necessary resources required for the estimating process.  Intensity of supervisory factors assigned to estimation works.  Amount of task available to be performed.  Quality control measures to assign to estimating duties. 2.8.1 FACTORS THAT AID OR HELP IN PROJECT COST ESTIMATING
  • 29. 17 According to The Constructor (2015), the following factors helps in project cost estimating and have been defined as; 1. Similar projects: - The best references for cost estimation are similar projects. Final cost items and related expenses of similar projects helps in estimation where invaluable. 2. Material Costs: - Costs for materials and supplies, plus shipping (transportation) charges are required prior to starting estimation process adequately. 3. Wage Rates: - Local labour rates or as specified by local government is taken for calculation of labour costs for project. 4. Site Conditions: - Project site conditions that can increase construction costs are: poor soil conditions, wetlands, contaminated materials, conflicting utilities (buried pipe, cables, overhead lines, etc.), environmentally sensitivity area, ground water, river or stream crossings, heavy traffic, buried storage tanks, archaeological sites, endangered species habitat and similar existing conditions. 5. Inflation Factor: - The presence of inflation is always a factor that can be extremely variable. When utilizing previous, similar projects as a primary basis for estimating, consider the Construction Cost Index as published in the Engineering News Record. 6. Bid Timing: - The timing of the bid opening can have a significant impact on obtaining a low bid. Seasonal variations in construction activity and conflicts with other bid openings are critical factors. 7. Project Schedule: - The construction schedule can certainly affect the cost. If the project requires too aggressive of a time frame, generally the price increases, especially if there is a significant liquidated damages condition for failure to complete within a specified deadline. Conversely, if the award notice is beyond a reasonable time and the notice to proceed is indefinite, the contractors fear inflation of material costs and may have other projects that have priority. Therefore, most bidders will inflate their bids to protect against these conditions. 8. Quality of Plans & Specifications: - There is no substitute for well-prepared plans and specifications. It is extremely important that every detail and component of the design be properly executed and fully described. Any vague wording or poorly drawn plan not only causes confusion, but places doubt in the contractor’s mind which generally results in a higher bid.
  • 30. 18 9. Reputation of Engineer: - If the project engineer or engineering firm has a good sound professional reputation with contractors, it is reflected in reasonably priced bids. If a contractor is comfortable working with a particular engineer, or engineering firm, the project runs smoother and therefore is more cost-effective. 10. Granting Agency: - If a granting agency is involved in funding a portion of the project, contractors will take this into consideration when preparing their bids. Some granting agencies have considerable additional paperwork that is not normally required in a non- funded project. Sometimes this expected extra paperwork elevates the bid. 11. Regulatory Requirements: - Sometimes there are conditions in regulatory agency approvals that will be costly to perform. Therefore, to be completely above board with potential bidders, it is strongly recommended that copies of all regulatory approvals be contained in all bidding documents. 12. Insurance Requirements: - General insurance requirements, such as performance bond, payment bond and contractors general liability are normal costs of doing business. However, there are special projects that require additional coverage. 13. Size of Project: The size and complexity of a project determines if local contractors have the capacity to execute the work. The larger and more intricate the proposed project is, the more it will potentially attract the attention of a broader number of prospective bidders. This is good for competition, but may increase mobilization costs. 14. Location of Work Site: - The location of the proposed work can be a significant component in developing a realistic cost estimate. A rural setting usually has a limited labour force skilled in the construction trades. Therefore, the contractor must import tradesmen and generally pay per diem expenses; i.e., out-of-town lodging and related costs. Additionally, remote settings increase the charges for material shipment. 15. Value Engineering: - Some agencies mandate that multi-million dollar projects perform a value engineering review, prior to finalizing the design or commencing the bidding process. Therefore, the estimator should be aware of this factor early in the process. 16. Contingency: - The rule-of-thumb has historically added a 10 contingency on the construction total to cover those unforeseen costs that crop up as a project evolves. During times of high inflation or the limited amount of key construction materials and supplies, it is wise to increase the contingency to 15% or 20 for a more realistic estimate and provide a safety factor.
  • 31. 19 17. Supplemental Studies & Investigations: - As stated in Item 4, some project sites will require special studies and/or investigations. Costs for this special work should be included in the initial cost estimate to avoid future surprises. 18. Judgement: - In the final analysis, the best component of a good cost estimate is the art of practicing sound technical judgement. This factor is acquired by experience and the mentoring of senior personnel. 2.9 PROBLEMS ASSOCIATED WITH ESTIMATING OF COSTS OF BUILDING CONSTRUCTION PROJECTS Estimation of building construction projects has and will always come with its problem and constraints. These are that which one cannot do without even if estimating is done putting all the necessary quality measures in place. One may ask, “How does an estimator estimate the cost of a construction project?” Hitting the target is not a common occurrence and is an inbuilt problem of estimating. Samphaongoen (2010) stated construction cost estimating is a time consuming and tedious process. Although there are factors to assist with the cost estimating process, inefficiencies still abound. During the process of construction cost estimating, the estimator must learn about the design and conditions of the project. Some of the of these problems may arise from the following; 1. Technology 2. Cost involved 3. Risks 4. Omission of items 5. Choice of work method 6. Addition of overheads and profit 7. Changes in design 8. Improper rates 9. Solution jumping 10. Output of crew (Burke, 1952), pg. 91; (Dutta, 1959), pg. 1 2.10 PURPOSES OF CONSTRUCTION ESTIMATING The purposes of estimating in construction includes but not limited to following;
  • 32. 20 1. To ascertain the necessary amount received by the owner to complete the proposed work and arranging fund for the same. 2. To ascertain the quantity of materials required for programming timely procurement. 3. To know the number of different categories of works that is to be employed to complete the work within the schedule time of completion. 4. Helps assess the requirements of Tools, Plants and equipment required to complete the work according to the programme. 5. To fix up completion period from the volume of work involved in the estimate. 6. To justify the investment from benefit cost ratio. (Advanced Civil Engineering, 2016) 2.11 ADVANTAGES AND DISADVANTAGES OF ESTIMATING 2.11.1 ADVANTAGES OF ESTIMATING Estimating is one of the most useful mathematics skills we can acquire in our everyday lives for use in both the field of study and of work. Some of its advantages are as follows;  It relates to all kinds of different areas of maths-measure, handling data, handling money, time, space, shape, number of operations.  It allows one to make good judgments about the quantity required.  It sometimes helps saves time and money.  It encourages problem solving.  It allows one to check to see if calculated answers are reasonable. (Bledsoe, 1992) 2.11.2 DISADVANTAGES OF ESTIMATING Despite the relevance of estimating, it still does possess some disadvantages including but not limited to the following;  Time constraint  Budgetary constraint  Involves severe critical thinking  Resources required  Technology involved (Burke, 1952) 2.12 ESTIMATING AS AN IMPORTANT TOOL FOR PROJECT MANAGEMENT
  • 33. 21 From Burke (1952), for a project manager to effectively plan and control a project, accurate estimating is essential. The estimator’s task is to predict the project’s parameters by building model of the project on paper. The quality and accuracy of an estimate can be continually improved as the project progressively executed as more detailed and accurate information becomes available. Although estimating for a fact, usually focuses on the financial aspects of the project, it is important to remember that the costs cannot be accurately established until the other factors of scope, specifications, time, resources, materials, equipment and risks have been quantified. Estimating is an integral part of project management process, which should be based on past experiences together with market norms and standards. CHAPTER THREE
  • 34. 22 METHODOLOGY 3.0 INTRODUCTION The chapter elaborates on the procedures that were employed in gathering the type of data relevant and suitable for the study. The procedures used were explained into details as appropriate and suggested reasons for which those procedures were chosen and used as a means of data gathering. 3.1 METHODS OF DATA COLLECTION Validated structured questionnaires which were in the form of closed and open questions were used to gather primary data from particular persons. The questionnaires were designed to give the allowance for respondents to express themselves freely as they wish and closed questionnaires which were in the form of alternative answers for the respondents to choose from where they regard suitable. Questionnaires were designed to have filter questions which filtered those that answered the questions. A number of fifteen (15) questionnaires were sent out. Seven (7) were sent to professionals while the remaining eight (8) were given to clients to answer in broadening the knowledge of the research. Method of data collection that was used was the qualitative method of research. 3.2 POPULATION OF STUDY A population is the totality of objects or events that have specific measurable properties or specified observable characteristics in common. The population of this research included owners (client’s) of selected buildings as well as professional stakeholders in the building construction industry. 3.3 SAMPLE AND SAMPLING TECHNIQUES The sampling method which was used for determining the sample size was the purposive sampling. The sampling method was chosen due to the case study issue which was at hand and the quality of exactness in data that was to be gathered from respondents that answered the questions.
  • 35. 23 3.4 RESEARCH INSTRUMENT Questionnaires were administered together with personal interviews of particular persons in Accra all located in the environs of the case study area. This was be done to find out the relevance, the person(s) who perform the estimating function, whether it could be done without or with in building construction projects as well as reasons why it should be done and done appropriately. 3.5 DATA ANALYSIS Primary data were obtained from a number of clients (owners of buildings) and professional building stakeholders’ in the case study area. Secondary data was the main source of information for the study. The secondary sources of data included books, published articles both on the internet and in journals and government publications. Through meetings such as discussions, conversations and interviews, the primary data aspect of the research was attained. In analysing questions that were in the Likert Scale form, the Relative Importance Index formula (RII) was adopted and used as expected helping to detect adequate ranking. Relative Importance Index = Ʃ (1n1 + 2n2 + 3n3 + 4n4 + 5n5) 5(n1 + n2 + n3 + n4 + n5) 3.6 LIMITATIONS TO DATA GATHERING PROCESS  Financial constraint.  Limited time frame to be able to cover many areas.  Willingness of persons to answer questions in the due course of interview.
  • 36. 24 CHAPTER FOUR DATA ANALYSIS AND PRESENTATION 4.0 INTRODUCTION This chapter presents the data gathered from field survey. The data gathered have been represented by charts and tables. Data, been presented in relation to the literature review and compared to the data collected from the field. It seeks to look at the analysis and interpretation of the responses from questionnaires and interviews administered for the study. 4.2 PRESENTATION AND ANALYSIS The data analysis involves placing raw data gathered into a manageable size and developing summaries. Some relevant steps were taken to analyze the data for the study. The Microsoft Excel software was used for this analysis. The data have been analyzed in tabular, graphical and narrative forms. Tools including pie charts were used in data analysis. 4.3 ANALYSIS OF DATA GATHERED FROM CLIENTS Eight (8) numbered questionnaires were sent out for clients to give their answers, but only six (6) being 75%, were retrieved for the analysis. Two (2) being 25% were not attained. 4.3.1 AGES OF RESPONDENTS FROM CLIENTS From the field survey, the ages of client respondents have been presented in the table below in percentage form as; Table 4.1 AGES FROM RESPONDENTS AGE RANGE NUMBER OF RESPONDENTS PERCENTAGE % 20-25 3 50% 26-30 1 16.7% 31-35 1 16.7% 36 and above 1 16.7% TOTAL 6 100% Table showing the respondents age grouping Field survey, March 2016 4.3.2 ANALYSIS ON WHETHER THEY HAVE EVER RECEIVED AN ESTIMATE
  • 37. 25 Have you ever received an estimate for any building maintenance works? 50% of the retrieved answered YES whiles the other 50% of the retrieved answered a NO. Figure 4.1 Figure showing the analysis of whether client has ever received an estimate Field survey, March 2016 For those who answered a YES, as to receiving an estimate for any building works, below is the analysis of the filter question they answered in and represented in a chart as; At the end of the maintenance works, do total cost fall within that which was estimated? Table 4.2 ANSWER FREQUENCY PERCENTAGE YES 2 67% NO 1 33% TOTAL 3 100% Table showing whether total cost fall within that estimated in maintenance works Field survey, March 2016 Figure 4.2 50 %, YES50% , NO YES NO YES, 67% NO, 33% DO COST FALL WITHIN THAT WHICH WAS ESTIMATED AFTER PERFORMING MAINTENANCE WORKS
  • 38. 26 Figure showing whether total cost fall within that estimated in maintenance works Field survey, March 2016 4.3.3 ARE THERE ANY PROBLEMS ONE MIGHT FACE FOR NOT RECEIVING THE BEST ESTIMATE Thorough study of the data received from respondents showed that there are problems one may face for receiving the best estimate. Analysis made it clear that 100% of the respondents answered a YES to the question. Respondents who chose a yes were being asked to state at least one problem someone is likely to face for not receiving the best estimate and the responds were as follows; 1. Spending out of budget. 2. Financial problems arising. 3. High cost and expenses in latter parts of the on-going project. 4. Distort budget and no trust for the person undertaking the project. 5. Inadequate fund along the way (in the project) 6. In the case of under- estimation, the construction process might grind into a halt or prolonged delay due to insufficient budget allocation for the project. 4.3.4 DO YOU UNDERSTAND THE NEED FOR AN ESTIMATE BEFORE BUILDING AND WOULD YOU ADVICE THAT PEOPLE SEEK ESTIMATES BEFORE UNDERTAKING BUILDING PROJECTS In analyzing whether respondents understood the need for an estimate before undertaking building works and asking whether they were going to recommend one to seek for estimates before undertaking building projects, the analysis were obtained collectively as; Table 4.3 RESPONSE FREQUENCY PERCENTAGE YES 6 100% NO 0 0% TOTAL 6 100% Table showing the need for an estimate before performing building projects Field survey, March 2016
  • 39. 27 4.3.5 ARE ESTIMATES ALWAYS ACCURATE AND EXACT TO UNDERTAKE BUILDING PROJECTS Table 4.4 RESPONSE FREQUENCY PERCENTAGE YES 0 0% NO 6 100% TOTAL 6 100% Table showing whether estimates produced are always accurate for building project Field survey, March 2016 A filter question was placed here asking respondents who chose a NO to state why estimates are not always accurate and exact to undertake building projects and the below are the answers which were obtained.  One may estimate a huge amount of money on an item when it might cost less.  There are price variations of changes which are unforeseen/ There could be change in pricing/ Increment on prices  Disparities in the unit cost of estimated materials for the proposed project.  As a result of unqualified personnel in the preparation of estimates. 4.4 ANALYSIS OF DATA GATHERED FROM PROFESSIONAL STAKEHOLDERS A total of seven (7) questionnaires were sent out to professional stakeholders to answer and out of the seven which were sent, seven (7) were later retrieved and that is to say a 100% questions was sent out and a 100% answers to those questions were gained. 4.4.1 PROFESSION OF RESPONDENT AS A PROFESSIONAL STAKEHOLDER Table 4.5 PROFESSION OF RESPONDENT PROFESSION FREQUENCY PERCENTAGE Architect 0 0% Engineer 3 43% Estimator 1 14% Quantity Surveyor 3 43% TOTAL 7 100% Table showing professional respondents for the study Field survey, March 2016
  • 40. 28 Figure 4.3 Figure showing professional respondents for the study Field survey, March 2016 Even though there was a filter question for others to specify, none fell in that zone or region. 4.4.2 YEARS OF EXPERIENCE IN THE CONSTRUCTION INDUSTRY Table 4.6 NUMBER OF YEARS FREQUENCY PERCENTAGE 1 to 5 6 86% 6 to 10 1 14% 11 to 15 0 0% 16 and beyond 0 0% TOTAL 7 100% Table showing the years of experience in the construction industry Field survey, March 2016 4.4.3 DO YOU USE ESTIMATES The question “Do you use estimates” was only answered by 6 professional respondents. Only 1 respondent out of those who answered chose neither “Yes” nor “No”. Percentage that answered out of the seven (7) respondents were amounting to 86% were all “Yes” representing 6 response whiles those who neither chose “Yes” nor “No” amounted to 14% of the total number. 4.4.3.1 FILTER QUESTION ASKING IF YES STATE YOUR REASON Reasons that were obtained from respondents were as follows; ARCHITECT, 0% ENGINEER, 43% ESTIMATOR, 14% QUANTITY SURVEYOR, 43% Architect Engineer Estimator Quantity Surveyor
  • 41. 29  Making work easy.  To anticipate and know how much will go into the project.  To arrive at an accurate and precise figure for construction works. 4.4.4 YOUR SAY ABOUT THE LEVEL OF ESTIMATING PRACTICES IN ACCRA CURRENTLY What do you say about the level of estimating practices currently in Accra? Table 4.7 RESPONSE FREQUENCY PERCENTAGE Good 4 57% Bad 0 0% Satisfactory 3 43% TOTAL 7 100 Table showing opinion about the level of estimating practices in Accra Field survey, March 2016 4.4.5 ASSESSING WHETHER ALL ESTIMATES PRODUCED FOLLOW THE RIGHT AND PROPER PROCEDURES OF ESTIMATING Do all estimates produced in Accra currently follow the right and proper procedures of estimating? Table 4.8 RESPONSE FREQUENCY PERCENTAGE Yes 3 43% No 4 57% TOTAL 7 100% Table showing the assessment of whether all estimates produced follow the right and proper procedures Field survey, March 2016
  • 42. 30 4.4.6 AT WHAT PERIOD ARE ESTIMATES REQUIRED THE MOST IN CONSTRUCTION Table 4.9 RESPONSE FREQUENCY PERCENTAGE At the Beginning 6 86% During the due course 0 0% At the end 0 0% All of the above 1 14% TOTAL 7 100% Table showing the period at which estimates are required the most in construction Field survey, March 2016 4.4.7 EVALUATING AMONGST THE FOLLOWING, THE FREQUENCY OF USE OF THE FOLLOWING TYPES OF ESTIMATES IN ACCRA GHANA A= VERY FREQUENT B= FREQUENT C= FAIRLY FREQUENT D= NOT AT ALL Table 4.10 ITEM TYPE OF ESTIMATE A B C D TOTAL Ʃ W RII RANK 1 Feasibility or conceptual 1 1 1 0 3 6 0.50 6th 2 Budget Plan Estimate 3 4 0 0 7 11 0.39 10th 3 Sketch Design and Detailing 2 1 4 0 7 16 0.57 4th 4 Bid Estimate 2 4 0 1 7 14 0.50 6th 5 Control resource 1 5 1 0 7 14 0.50 6th 6 Approximate/ Rough 1 4 1 1 7 16 0.57 4th 7 Detailed Estimate 3 3 1 0 7 12 0.43 9th 8 Parametric Estimate 0 2 3 1 6 17 0.71 2nd 9 Analogous 0 2 2 2 6 18 0.75 1st 10 Bottom-up 0 3 2 1 6 16 0.67 3rd` Table showing a statistical ranking of the types of estimates frequently used in Accra Ghana Field survey, March 2016 Observations from the table shown that the estimate very frequently used in the environs of Accra, Ghana is the Analogous Estimate whiles the least occurring is Budget Plan Estimate when analyzed with Relative Importance Index of Statistical Ranking.
  • 43. 31 Table 4.11 TYPE OF ESTIMATE A B TOTAL Analogous 0% 28.6% 28.6% Parametric Estimate 0% 28.6% 28.6% Bottom-up 0% 42.9% 42.9% Approximate/ Rough 14.3% 57.1% 71.4% Sketch Design and Detailing 28.6% 14.3% 42.9% Control resource 14.3% 71.4% 85.7% Bid Estimate 28.6% 57.1% 85.7% Feasibility or conceptual 28.5% 28.5% 57% Detailed Estimate 42.9% 42.9% 85.8% Budget Plan Estimate 42.9% 57.1% 100% Table showing the summation of the A and B for frequently occurring estimates being used expressed in percentage Field survey, March 2016 Observation from the table shows that, Budget Plan estimate occurs most frequently, followed by Detailed Estimate with many others following up but the least frequently used amongst as shown in the table is both the Analogous and Parametric estimate. Table 4.12 Table showing the summation of the C and D for non-frequently occurring estimates used in Accra. Field survey, March 2016 Observation from the table shows that, estimates not frequently used the most are Analogous, Parametric and Bottom-up estimate followed by Feasibility estimate ranging to the least which is not occurring frequently as the Budget Plan Estimate. TYPE OF ESTIMATE C D TOTAL Analogous 28.6% 28.6% 57.2% Parametric Estimate 42.9% 14.3% 57.2% Bottom-up 28.6% 14.3% 42.9% Approximate/ Rough 14.3% 14.3% 28.6% Sketch Design and Detailing 57.2% 0% 57.2% Control resource 14.3% 0% 14.3% Bid Estimate 0% 14.3% 14.3% Feasibility or conceptual 28.6% 0% 28.6% Detailed Estimate 14.3% 0% 14.3% Budget Plan Estimate 0% 0% 0%
  • 44. 32 4.4.8 EVALUATING AMONGST THE FOLLOWING, THE FREQUENCY OF PROBLEMS THAT OCCUR IN ESTIMATION A= VERY FREQUENT B= FREQUENT C= FAIRLY FREQUENT D= NOT AT ALL Table 4.13 ITEM PROBLEM IN ESTIMATING A B C D TOTAL ƩW RII RANK 1 Technology 1 2 2 1 6 15 0.63 3rd 2 Cost involved 2 5 0 0 7 12 0.43 9th 3 Risks 3 2 2 0 7 13 0.46 7th 4 Omission of items 0 3 3 1 7 19 0.68 1st 5 Choice of work method 1 5 0 1 7 15 0.54 6th 6 Addition of overheads and profit 4 2 1 0 7 11 0.39 10th 7 Changes in design 3 2 2 0 7 13 0.46 7th 8 Improper rates 2 1 3 1 7 17 0.61 4th 9 Solution jumping 0 4 3 0 7 17 0.61 4th 10 Output of crew 0 2 5 0 7 19 0.68 1st Table showing a statistical ranking of the of frequency of problems of estimating that occur Field survey, March 2016 Observations from the table shown that the problem that is most occurring is the combination of Output of crew and Choice of work method whiles the least occurring problem is the Addition of overheads and profit using the Relative Importance Index of Statistical Ranking. Table 4.14 PROBLEM IN ESTIMATING A B TOTAL Output of crew 0% 28.6% 28.8% Omission of items 0% 42.9% 42.9% Technology 14.3% 28.6% 42.9% Improper rates 28.6% 14.3% 42.9% Solution jumping 0% 57.1% 57.1% Choice of work method 14.3% 71.4% 85.7% Changes in design 42.9% 28.6% 71.5% Risks 42.9% 28.6% 71.5% Cost involved 28.6% 71.4% 100% Addition of overheads and profit 57.1% 28.6% 85.7% Table showing the summation of the A and B for frequently occurring expressed in percentage Field survey, March 2016
  • 45. 33 Observation from the table shows that, Cost involved problems occurs most frequently, followed by Choice of work method and Addition of overheads and profits with many others following up but the least frequent amongst all the problems is the Output of crew. Table 4.15 PROBLEM IN ESTIMATING C D TOTAL Output of crew 71.4% 0% 71.4% Omission of items 42.9% 14.3% 57.2% Technology 28.6% 14.3% 42.9% Improper rates 42.9% 14.3% 57.2% Solution jumping 42.9% 0% 42.9% Choice of work method 0% 14.3% 14.3% Changes in design 28.6% 0% 28.6% Risks 28.6% 0% 28.6% Cost involved 0% 0% 0% Addition of overheads and profit 14.3% 0% 14.3% Table showing the summation of the C and D for non-frequently occurring problems expressed in percentage Field survey, March 2016 Observation from the table shows that, Output of crew does not frequently occur the most, followed by Omission of items and Improper rates all to the least non-occurring problem being the Cost involved. 4.5 DATA GATHERED FROM INTERVIEW WITH AN ESTIMATOR This was data gathered through an interview with a professional estimator. 4.5.1 Question 1: Who prepares an estimate? Answer: Many people do believe that estimates are produced by quantity surveyors. He said he did not doubt their knowledge but only said that from his point of view most estimates are produced by estimators and not quantity surveyors since their main work is to advise client on cost which is likely to be incurred and ensures that estimates produced are accurate. 4.5.2 Question 2: What do you think about the estimating practices in Accra, Ghana currently? Are all estimates produced done in the correct manner? Answer: Certainly not he said. Estimates produced in Accra currently often help tell the probable cost of projects but actually not all does and some do. He said for estimates to be
  • 46. 34 produced very much accurately would not require studying books alone but the working experience of persons who produce estimates really count in terms of its accuracy. 4.5.3 Question 3: In rehabilitation works, would estimates produced be done in the same manner as that of a full and complete construction work? Answer: Estimates produced for simple rehabilitation works cannot be compared to that of a full project except in certain cases and in the presence of certain factors. Estimates being prepared for simple rehabilitation works, are quite simpler and faster compared to that of a full project. 4.5.4 Question 4: What are some of the recommendations you would make about estimates being produced? Answer: People or person(s) in the preparation of estimates should be trained critically to adopt quality innate skills so as to help them to be able to perform fully estimating works reducing the risk of so much errors and failure. He advised that estimates be it whatever size of a project at hand or to be done must always be documented since; 1.Variation may occur in the prices of any of the resources required for a project. 2.May serve as a data source for similar building construction projects. 3. Source of reference for detecting mistakes or flaws in the every building construction project. Field survey, April, 2016 4.6 SUMMARY OF FINDINGS FROM THE STUDY 4.6.1 FINDING OUT THE LEVEL OF USE OF ESTIMATING AS PART OF BUILDING PROJECTS 1.The research shows that a very good number of persons especially client and professional stakeholders know about estimates and its use in building projects. Research proves that estimates are not only used by professional stakeholders in their work situations but also used by clients for their financial commitment to a project.
  • 47. 35 4.6.2 EXAMINING THE CURRENT BUILDING CONSTRUCTION ESTIMATING PRACTICES IN ACCRA 1. The research indicates that, estimating practices in Accra currently from the view of professionals in the building construction industry is done in a good manner. Despite this, it was understood that, many of the estimates produced did not follow the right and proper procedures for estimating cost of construction in Accra. 2. A number of clients who had ever received estimates for performing maintenance works made it clear that, most at times the cost of construction often fall within estimated cost of construction. 4.6.3 IDENTIFYING PROBLEMS ASSOCIATED WITH ESTIMATING IN BUILDING CONSTRUCTION PROJECTS Research has shown that there are many problems attached to estimating of building construction projects and they have been listed in order of degree of frequency as; 1. Omission of items and Output of crew 2. Technology 3. Improper rates and Solution jumping 4. Choice of work method 5. Risks and Changes in design 6. Cost involved 7. Addition of overheads and profit Degree of frequency of problems in estimating have been listed above and it was analyzed from professionals that “omission of items and determination of output of crew” were identified to be the most occurring problems of all while “addition of overheads and profits remained the least occurring problem in the process of estimating” using the basis of Relative Importance Index in the analysis. 4.6.4 METHOD OF ESTIMATING OF BUILDING COSNTRUCTION PROJECTS For the methods that aid in the process of estimating, study showed that there was no one way. Some were noted to be done based on experiences of the person(s) estimating whiles some followed the norms, traditions and standards for the estimating process.
  • 48. 36 4.7 CASE STUDY This is a proposed rehabilitation works which is to be done on the Building/Civil Laboratory building at the Accra Polytechnic Campus as an aspect of the study. In the quest of performing this exercise, an estimate is to be prepared for the construction processes that may be carried out. The rehabilitation works will cut across the following under listed; 1. Removal of existing timber doors and windows and replacing them with glazing. 2. Painting of walls and concrete slab of the building. 3. Laying of bituminous felt on concrete roof of building to the appropriate falls and slopes. 4.7.1 PREPARATION OF ESTIMATES FOR THE REHABILITATION WORKS Using some basis and ideas of Amoah-Mensah (1995), estimates will be prepared. Certain assumptions were made in determining outputs of construction works after studying those trade or activities on construction sites. 4.7.2 ESTABLISHMENT OF ALL-IN-RATES FOR LABOUR In the quest of establishing daily rates for labour interviewing of operatives of gangs and crews on certain construction sites helped to come out with the all-in-daily rates for labour. The outcomes have been tabulated in the Table 4.11 as follows; Table 4.16 OPERATIVE ALL-IN-DAILY RATE (GHȻ) CRAFTSMAN(SKILLED PERSON) 60.00 LABOURER(UNSKILLED PEROSN) 45.00 Table showing the all-in-daily-rate wages of labour Field survey, April, 2016 4.7.3 ASSUMPTIONS TO BE USED IN THE CALCULATION OF UNIT RATES Percentage value to be used in the addition of profit and overheads have been put together as 15% be carried on all works to be carried out as part and parcel of the rehabilitation project. 4.7.4 PRELIMINARIES FOR THE REHABILITATION PROJECT
  • 49. 37 According to Nahel (2014), preliminaries are the section of a bill that provides a description of the project, the contractor’s general obligation, general facilities and setup and running costs. With reference to the Rehabilitation project at hand the necessary preliminary items have been out listed as; 1. Description of works and particulars: It gives general information on type of structure(s), the volumetric content, area on plan and many more. They are normally not priced since is regarded as not involving to the contractor in any expense. 2. Programme of works: Normally not priced but deemed to be covered in the overheads. 3. Handover of completed works: Normally not priced but deemed to be covered in the overheads. 4. Contractor’s supervision: This lump sum is often fixed but only dependent on the amount of time the contractor would spend on the project. 5. Adequate resources, labour, materials and plant for the project: Not priced 6. Small tools and equipment: Ideally, a comprehensive list of small tools and equipment predicted for the works could be prepared and priced in accordance at rates that allow for expected prices increase. 7. Checking schedules, drawing etc.: Not priced 8. Protection of person and property: Not priced since it is presumed to have been allowed in the workmen’s compensation when building up unit rates of labour. 9. Safety, health and welfare of people working: Not priced since it is presumed to have been allowed in the workmen’s compensation when building up unit rates of labour. 10. Prime cost sums and provisional sums: Normally not priced 11. Contingencies: Normally not priced (Amoah-Mensah, 1995)
  • 50. 38 4.8 COMPUTATION OF TOTAL ESTIMATE OF REHABILITATION PROJECT In establishing the total cost of the project, the estimates derived from the works formed a part of the rehabilitation project have been added as; Table 4.17 DESCRIPTION OF WORK ESTIMATE DERIVED GH¢ ALTERATIONS AND DEMOLOITION WORKS (Removal of existing doors and windows) 170.78 PAINTING AND DECORATING WORKS (Walls & Concrete Soffit) 1,314.25 GLAZING WORKS 43,463.39 ALTERATION WORKS (Laying bitumen) 968.88 45,917.30 Table showing a computation of the estimate of rehabilitation project Assuming, Preliminaries and other relevant factors which were not mentioned in the preparation of estimates including cleaning on roof to accept bitumen, cement, fine aggregates and others to take 25% of the total of estimates on works to be performed. 25% ×45,917.30 = 11,479.33 Hence, Total estimated cost for project = 45,917.30 + 11,479.33 = GH¢ 57,396.63 Total estimated cost attained may be subject to change with respect to time value of money. Details of estimates could be inferred from the Appendix Section of the study at hand.
  • 51. 39 CHAPTER FIVE CONCLUSION AND RECOMMENDATION 5.0 INTRODUCTION This chapter reveals the conclusions and recommendations were made from the research. 5.1 CONCLUSIONS The study was based on an aim and a set of objectives. The following conclusions were made after the research in answering the objectives; 5.1.1 FIND OUT THE LEVEL OF USE OF ESTIMATING AS PART OF BUILDING PROJECTS IN ACCRA 1. The conclusion from obtaining primary data was that a great number of professional stakeholders often use estimates in their daily activities. As per the literature review no information was derived for conclusions to be compared and contrasted with that obtained from the use of questionnaires. 5.1.2 EXAMINE THE CURRENT BUILDING ESTIMATING PRACTICES IN ACCRA 1. The research conducted revealed that the level of estimating practices in Accra currently is fairly good and that estimates produced are of a fairly good degree of accuracy. 5.1.3 IDENTIFY PROBLEMS ASSOCIATED WITH ESTIMATING OF BUILDING CONSTRUCTION PROJECTS 1. Problems in estimating which were stated in the literature review were only confirmed to be true by professionals but in varying degree of how frequent they occurred in the process of estimating and hence some of the problems like the Output of crew and Omission of items, Technology and Addition of overheads and profits stood as the most frequent problem, next to most occurring and the least occurring problem respectively As per clients whom primary data were gathered from, the problems were as follows;  One may estimate a huge amount of money on an item when it might cost less.
  • 52. 40  There are price variations of changes which are unforeseen/ There could be change in pricing/ Increment on prices.  Disparities in the unit cost of estimated materials for the proposed project. 5.1.4 PREPARING COST ESTIMATES FOR THE PROJECT UNDER STUDY 1. In answering the objective of preparing estimates for the project at hand the estimate value which was reached amounted to a sum of GH¢ 57,396.63 which clearly was stated to be subjected to change due to the time value of money. Other conclusions the were made for the study are as follows; 1. Research conducted also revealed that in maintenance works such as rehabilitation, the estimates produced vary depending upon the extent of works to be done, information available and the even the prospective persons in the preparation. 2. Construction estimating serves a means at arriving at appropriate value or estimate to commence and end building projects successfully without delays, thievery or pilfering and serves appropriate measures to minimizing waste be it avoidable or non-avoidable in construction projects. 3. Generally, cost of building construction works are done by estimators (person(s) carrying out the estimating function in an organization) but study showed that quantity surveyors do them more in the environs of Accra. 2. Research showed while, some persons heed to the practices and application of the estimating in accordance to the set standards and procedures, there are others who also do same applying knowledge, and experiences from previous projects and forecasting abilities. 5.2 RECOMMENDATIONS To ensure proper estimating of cost of building construction projects by individuals, the society and the nation at large. Some of these measures which could help to cater for proper estimating measures are; 1. Laws guiding production of estimates must be enforced and stressed upon enough. 2. Government should mete out severe punishment to law breakers ( i.e. people who tend to practice estimating improperly) 3. Educating people on the relevance may be grounds for which to ensure its effectiveness.
  • 53. 41 4. Training and development of person(s) to become professionals at works they do in terms of estimating of cost of building construction projects. 5. The importance of the exercise should be advertised through the appropriate means to the hearing of the public. 6. Special treatments as to whether incentives or motivation may be given to people who practice this to enable them do their works as required of and many more just to mention but a few.
  • 54. 42 REFERENCES 1. AdWords Help, (2015). First page bid estimate [online]. Available from: http://support.google.com/adwords/answer/105665?hl=en [Accessed 29 November 2015]. 2. Advanced Civil Engineering (2016). Estimating [online]. Available from: https://mobile.facebook.com/advanced.civil.engineering/posts/1503081816608260?_rdr [Accessed 14 March 2016]. 3. Amoah-Mensah K., (1995), Building Estimating Manual for West African Construction Practice, 2nd Edition, Parcom Ghana Ltd., Kumasi. 4. Baloi, D. and Price, A. D. F. (2003) Modelling global risk factors affecting construction cost performance, International Journal of Project Management, 21(4), 261-269 5. Buchan, R.D., Fleming, F.W. and Kelly, J.R. (1995), Estimating for Builders and Quantity Surveyor, Thomas Litho Ltd., Scotland. 6. Bledsoe D.J., (1992), Successful Estimating Methods from Concept to Bid. R.S Means Company, Inc. 7. Burke R., (1952). Project Management: Planning and Control Techniques, 5th Edition. 8. Conzelman T., (2014). Three Types of Construction Estimating Techniques, Apex Project Consulting. [online]. R.S Means Company, Inc. Available from: http://apexpjm.com/three- types-construction-estimating-techniques-everyone-uses/ [Accessed 15 November 2015]. 9. Cullen S. (2014) Estimating. [online]. Whole Building Design Guide. Available from: http://www.wbgd.org/resources/estimaing.php?r=deliveryteams. [Accessed 29 November 2015]. 10. Dutta B.N.,(1959). Estimating and Costing in Civil Engineering. UBSPD 11. Fugar, F.D.K and Adinyira, E (2009) Quantity Surveying Education in Africa: The Role of Stakeholders in Sustaining Professionalism, The Building Economist, September 2009 issues, 25-30. ISSN: 0007-3431.
  • 55. 43 12. Laryea S. (2010). Construction cost estimating in Ghana. [online]. Available from: http://samuellaryea.blogspot.com/2010/04/construction-cost-estimating-in-ghnana.html [Accessed 15 November 2015]. 13. Lester A. (2014). Project Management, Planning and Control, 6th Edition, Copyright © 2014 14. McCracken M., (2005). Feasibility Estimate. Teach me finance. [online]. Available from: http://www.teachmefinance.com/Scientific_Terms/Feasibility%20estimate.html. [Accessed 29 November 2015]. 15. Misronet, (2015). Steps in preparation of an estimate. Construction Cost Estimating Methods [online]. Available from: http://www.misronet.com/estimating.htm. [Accessed 3 February 2016]. 16. Moustafaev J., (2015). What is a project? Project Management for Beginners and Experts. [online]. Available from: http://www.project-management- podcast.com/index.php/resourcesguide-links/articles/571-what-is-a-project-a-simple- question-with-a-very-difficult-answer. [Accessed 29 November 2015]. 17. Peurifoy R.L. and Oberlender G.D. (2004), Estimating Construction Costs. 18. Portny S.E., (2010). Project management for dummies (4th edition). 19. Ronald C.S, (1986). Estimating and tendering for building work. Longman Technician Series 20. Samphaongoen P., (2010). A visual approach to construction cost estimating. Thesis (MSc). Marquette University. 21. Swedish College of Engineering & Technology, Wah Cantt (2015) Estimating of Building Works. SCET WAH CANTT [online]. Available from: https://metricskey.net/.../ppt- construction-. [Accessed 1 March 2016]. 22. Manfredonia B., Majewski P. J., Perryman J. J., (2010). Cost estimation. Whole Building Design Guide [online]. Available from: http://www.wbdg.org/design/dd_costest.php . [Accessed 1 March 2016].
  • 56. 44 23. Pilcher R., (1992).Principles of Construction Management, 3RD Edition, McGraw Hill, London.
  • 57. 45 APPENDIX A 1 ALTERATIONS AND DEMOLOITION WORKS ITEM 1 Carefully remove the existing timber doors and windows as a first step Item(139.54m²) before fixing appropriately glass windows and doors in building Assuming removal of windows and doors at an output of 50 m²/man-day by a labourer 139.54= 2.79 man days 50 Use 3 days at GH¢ 45.00 135.00 Add 10% for tools, cutting etc. 13.50 148.50 Add 15% for profits and overheads 22.28 TOTAL COST 170.78 Unit cost/m² GH¢ 1.22
  • 58. 46 APPENDIX B 2 GLAZING WORKS ITEM 2 Supply and fix the specified and appropriate sizes of glazing 136.67 m² works for doors and windows Material Complete glazed set at price of GH¢ 250.00/m² For an area of 136.67 m², we have; 250.00×136.67 34167.50 Add 10% for cutting and fixing 3416.75 Labour Fixing of glass of 150 m²/day Number of days required = 136.67 = 0.91 gang days 150 Using a gang of 2 glazers and 2 labourers for a day, we have; 2(60.00 + 45.00) 210.00 Total cost ( materials + labour) 37794.25 Add 15% for profits and overheads 5669.14 TOTAL COST 43463.39 Unit cost/m² GH¢ 318.01
  • 59. 47 APPENDIX C 3 REPAIR WORKS TO CONCRETE ROOF ITEM 3 Laying of a bituminous felt material 3mm thick over existing item (205.42m²) concrete roof of building size 28.9m × 7.11m Materials Bitumen 3mm thick sold at GH¢ 2.60/m² For an area of 205.42, we have; 2.60 × 205.42 534.09 Add 10% for waste for travelling height and immediate drying 53.41 Labour Laying of bitumen at an output of 267m²/ gang day Number of days required = 205.42 = 0.76 gang days 267 Use 1 day by 2 bitumen layers and 3 labourers, we have 1(2(60.00) + 3(45.00)) 255.00 Total (material + labour) 842.50 Add 15 % for profits and overheads of total cost 126.38 968.88 Unit cost GH¢ 4.72
  • 60. 48 APPENDIX D 4 PAINTING AND DECORATING WORKS ITEM 4 Prepare and apply 1 coat of white emulsion paint to the internal and external parts of the rendered walls 496.54m² Materials Emulsion paint, already computed at a utilization of 50m²/ gallon For 1 coat of paint for an area of 496.54 m² we have; 496.54 = 9.93 gallons (3.97 buckets) 50 Add 15% for waste = 1.49 gallons Total number of gallons of paints will be 11.42 gallons (4.57 buckets) Buy 11 gallons of emulsion paint at GH¢ 55.00 605.00 Roller brushes having a life coverage of 450 m²/roller brush we have; 496.54 = 1.10 no 450 Buy 2 number roller brushes at GH¢ 10.00 20.00 Labour Assume preparation and painting of 1 coat 496.54 m² at an output of 200m²/ man-day/ coat would require; 496.54 = 2.48 days 200 Use 3 days at a skilled operative rate of GH¢ 60.00 180.00 805.00 Add for 15% for profits and overheads 120.75 TOTAL COST 925.75
  • 61. 49 APPENDIX E 5 PAINTING AND DECORATING WORKS ITEM 5 Prepare and apply 1 coat of white emulsion paint to the Soffit of concrete roof 207.23m² TOTAL COST 388.50 Unit cost/m² GH¢ 1.87 Materials Emulsion paint, already computed at a utilization of 50m²/ gallon For 1 coat of paint for an area of 496.54 m² we have; 207.23 = 4.14 gallons (1.66 buckets) 50 Add 15% for waste = 0.62 gallons Total number of gallons of paints will be 4.76 gallons (1.90buckets) Buy 5 gallons of emulsion paint at GH¢ 55.00 275.00 Roller brushes having a life coverage of 450 m²/roller brush we have; 207.23 = 0.46 no 450 Buy 1 number roller brushes at GH¢ 10.00 10.00 Labour Assume preparation and painting of 1 coat 207.23 m² at an output of 150m²/ man-day/ coat would require; 207.23 = 1.38 days 150 Use 1 days at incentive rate of GH¢ 90.00 90.00 Add for 15% for profits and overheads 13.50
  • 62. 50 APPENDIX F ACCRA POLYTECHNIC SCHOOL OF ENGINEERING BUILDING TECHNOLOGY DEPARTMENT Dear Respondent, I am a student of the above mentioned institution seeking help in finding information to add unto similar researches under the subject “The relevance of estimating of costs in Building Construction Projects”. The research is mainly for academic purpose therefore, answers provided will be treated as confidential. Thank You. SECTION A Please tick where appropriate amongst the following questions. 1. What is your profession? a) Architect ( ) b) Engineer ( ) c) Estimator ( ) d) Quantity Surveyor ( ) If none of the above, please provided answer in the space below ………………………………………………………………………………………………… 2. How many years have you been in the construction industry? a) 1-5 ( ) b) 6-10 ( ) c) 11-15 ( ) d) 16 and beyond ( ) 3. Do you use estimates? a) Yes ( ) b) No ( ) If yes why please state your reason in the space provided ………………………………………………………………………………………………… 4. What do you say about the level of estimating practices in Accra currently? a) Good ( ) b) Bad ( ) c) Satisfactory ( ) 5. Do all estimates produced in Accra currently follow the right and proper procedures of estimating? a) Yes ( ) b) No ( ) 6. At what period are the estimates required the most in the process of construction?
  • 63. 51 a) The Beginning ( ) b) During the due course ( ) c) At the end ( ) d) All the above ( ) SECTION B Evaluate amongst the following, the frequency of use of the following types of estimates in Accra Ghana. Please tick where appropriate using the following conditions. A= VERY FREQUENT B= FREQUENT C= FAIRLY FREQUENT D= NOT AT ALL ITEM TYPE OF ESTIMATE A B C D 1 Feasibility or conceptual 2 Budget Plan Estimate 3 Sketch Design and Detailing 4 Bid Estimate 5 Control resource 6 Approximate/ Rough 7 Detailed Estimate 8 Parametric Estimate 9 Analogous 10 Bottom-up Evaluate amongst the following, how often the problems of estimates do occur in the estimation. A= VERY FREQUENT B= FREQUENT C= FAIRLY FREQUENT D= NOT AT ALL ITEM PROBLEM IN ESTIMATING A B C D 1 Technology 2 Cost involved 3 Risks 4 Omission of items 5 Choice of work method 6 Addition of overheads and profit 7 Changes in design 8 Improper rates 9 Solution jumping 10 Output of crew
  • 64. 52 APPENDIX G ACCRA POLYTECHNIC SCHOOL OF ENGINEERING BUILDING TECHNOLOGY DEPARTMENT Dear Respondent, I am a student of the above mentioned institution seeking your help in finding information to add onto similar researches under the subject “The relevance of estimating of costs in Building Construction Projects”. The research is mainly for academic purpose therefore, answers provided will be treated as confidential. Thank You. Please tick where appropriate amongst the following questions. 1. Have you ever received an estimate for any building maintenance works? a) Yes ( ) b) No ( ) If yes, answer the follow up question 2, if not continue from question 3. 2. At the end of building works such as maintenance works, do the costs of maintenance fall within the cost estimated? a) Yes ( ) b) No ( ) 3. Are there any problems one may face for no receiving the best estimate? a) Yes ( ) b) No ( ) If yes, state at least, one of these problems. ………………………………………………………………………………………………… 4. Age of respondent. a) 20-25 ( ) b) 26-30 ( ) c) 31-35 ( ) d) 36 and above ( ) 5. Do you understand the need for an estimate before building? a) Yes ( ) b) No ( ) c) Not certain ( ) 6. Are estimates always accurate and exact to undertake building projects? a) Yes ( ) b) No ( ) If no please state why in the space provided
  • 65. 53 ………………………………………………………………………………………………….. 7. If estimates produced are not accurate, would you reject them or not? a) Yes ( ) b) No ( ) 8. Would you advice that people seek estimates before undertaking building projects? a) Yes ( ) b) No ( )
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  • 79. 67 PRODUCED BY AN AUTODESK EDUCATIONAL PRODUCT 680 2990 680 1900 680 680 680 2990 2990 680 1900 2990
  • 80. 68