RIVERS STATE UNIVERSITY,

NKPOLU – OROWORUKWO,
P.M.B. 5080 PORT HARCOURT,
RIVERS STATE, NIGERIA.

FACTORS TO CONSIDER DURING COST ESTIMATING

IN CONSTRUCTION

NAME: MITEE BARIELBA BATOM

MATRIC NO:

LEVEL: MSC 1

DEPARTMENT: ARCHITECTURE

COURSE CODE: QUS 832

COURSE TITLE: COST CONTROL AND APPRECIATION

DATE: JANUARY 2023.

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SIMILAR PROJECTS
The existence of similar projects is advantageous for contractors and budget planners. These
other projects can be the reference that the groups need for their plans and goals. However, it is
crucial to note that planners and contractors have to consult the business plan and management
plan before pushing through with the cost estimation. This factor can be a positive and negative
thing, depending on the situation of the project.

CLEAR SCOPE DEFINITION OF CLIENT

Another factor that affects the cost estimating process of a project is the type and extent of the
plan. If the projects are large estates, skyrises, and large infrastructures, then it requires more
people—a workforce that meets the immediate demands of the owner or contractors. At times,
these kinds of projects call for the assistance of a specialized labor force. And it will be extra
expenses shouldered by the project.

CLEAR AND DETAILED DRAWINGS FOR SPECIFICATIONS

When the planners—contractors, subcontractors, architects, budget coordinators, and owner—
have specified the plans and schedules of the project, the expenses will have reductions. Proper
execution of the plans partnered with a correct work schedule will be a massive impact on the
productivity of the workers. As a whole, when the people involved have planned everything
accordingly, cost estimates will be lesser than expected.

LABOUR AND MATERIALS

Every project plan requires a well-formulated labor schedule and daily construction schedules.
Without these materials, the construction site will experience disarray. When the team has no list
of things to accomplish, the project will have setbacks. For labor, the project manager should
hire appropriate workers who are knowledgeable about the necessary materials for the project.
Furthermore, the arrival or delay of construction materials is a factor that affects the processes of
the project.

TIME
Duration of construction project is affecting the cost. Increase in project duration can increase
the construction project cost due to increase in indirect costs, while reduction in construction cost
also increases the project cost due to increase in direct costs. Therefore, construction project
schedules also need to be considered during project cost estimation.

DATABASE OR BIDS ON SIMILAR PROJECTS

For the construction estimate, the best reference will be similar construction projects. The final
cost of those similar projects can give the idea for the new construction project cost calculation.
The final cost of past project needs to be factored with current construction cost indices

COST AND MATERIALS

Construction material cost consists of material cost, shipping charges and taxes applicable if any.
So, it is important consider all these variations while calculating construction material cost

Construction site conditions

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Project site conditions can increase construction costs. Site conditions such as poor soil
conditions, wetlands, contaminated materials, conflicting utilities (buried pipe, cables, overhead
lines, etc.), environmentally sensitive area, ground water, river or stream crossings, heavy traffic,
buried storage tanks, archaeological sites, endangered species habitat and similar existing
conditions etc. can increase the project cost during construction phase if these variations are not
considered during estimation.

CLIENT EXPERIENCE LEVEL

If the client has been difficult during the design process, these difficulties will affect the
construction process. A demanding client who may anger construction crews, an indecisive client
who may wish to make changes up to the last minute or later will obviously raise costs. The
client’s problematic behavior is difficult to explain, let
alone bill. It may be wise in these cases to incorporate a larger than normal contingency into your
cost estimatesallowing these difficulties to be accommodated without having to point out to the
client that they themselves Are the problem.

LABOUR WAGE RATE

Labor wages varies place to place. So, local wage rate should be considered in calculation. If the
project has to be started after several months of estimating the project cost, the probable variation
in wage rates has to be considered in the calculation.

EXPERIENCE OR SKILL LEVEL OF THE CONSULTANT

Smooth running of construction is vital for project to complete in time. The cost of projects will
be higher with sound construction professional reputation. If a contractor is comfortable working
with a particular engineer, or engineering firm, the project runs smoother and therefore is more
cost-effective.

FINANCE OF THE CLIENT

The financial capability of the client is a major determinant of how smooth the construction
process will run. Therefore the professional will have to run according to the inflow and ouflow
of cash from the client.

SIZE AND TYPE OF CONSTRUCTION PROJECT

For a large construction project, there can be high demand for workforce. For such a
requirements, local workmen may not be sufficient and workmen from different regions need be
called. These may incur extra costs such projects and also for the type of construction project
where specialized workforce is required.

REGULATORY REQUIREMENTS
Approvals from regulatory agencies can sometimes be costly. These costs also need to be
considered during cost estimate.

PROJECT SCHEDULE
Duration of construction project is affects the cost. Increase in project duration can increase the
construction project cost due to increase in indirect costs, while reduction in construction cost

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also increases the project cost due to increase in direct costs. Therefore, construction project
schedules also need to be considered during project cost estimation.

PROJECT TEAM EXPERIENCE

The experience level of the team over the years will determine the level of expected output at the
end of the construction. This also affect the cost. The higher the experience level, the greater the
desired output, therefore, will tilt the cost level. Due to professionalism acquired over the years
by the expert and his team.