2. Bad Weather Condition2. Construction means to build something.. However, if there are more folks looking to purchase copper than there is copper, that material will cost you a pretty penny. In South Africa, a study by Windapo and Cattell examined the trends in building material prices and the factors contributing to the increase in prices of building materials. affecting factors are: materials price fluctuation, insufficient time for estimate, experience in contracts, size of contract, and incomplete drawings. Construction Material Costs. Cost Factors In Construction 3191 Words | 13 Pages. Examples of regulatory requirements include pollution control and emissions compliance. Observing how the costs of construction materials have become expensive, it is obvious that ineffective management of materials bring about increase in the cost to both the contractor and the client. On the other hand, efficient management of materials can result in substantial savings in project costs. Know the Difference Between Cement and Concrete. The building materials you select will determine the overall strength, longetivity and appearance of the building. If they know the cost of a material has significantly dropped, they can (and will) go to the manufacturer to ask for a price break owing to the lower cost of material. CIVIL_ENGINEERING Preparation of a construction cost estimate for any project is a very complex process. As project site conditions can increase construction costs, here are some to take note of: poor soil conditions, wetlands, contaminated materials, conflicting utilities (buried pipe, cables, overhead lines) and environmentally sensitivity areas. Out of 21 factors, 14 factors were assigned by mean ratings of higher than the neutral point 2, and each of them maintained a Severity Index of more than 65%. High cost of machinery maintenance (D5) 6. ... Center Line Method - Quantity of Materials with Centre line method - Duration: 15:44. 4 1.1 Statement of the Problem ... contract management, material procurement, poor technical performances and escalation of material prices. Effect of Inflation #2: Government incentives such as tax benefit. Chapter one. The predominant causes of delay are design changes, poor labour productivity and inadequate planning. Eric Thomas. Factors Affecting the Success of a Construction Project Journal of Construction Engineering and Management January 2004 Cost Overruns and Failure in Project Management: Understanding the Roles of Key Stakeholders in Construction Projects you should define the specifications and quality of materials that would go into the house. Grasscrete: Sustainable Paving Systems | Types, Advantages & Installation. 10 Factors That Affect Construction Quality Management–And How to Address Them. Copyright 2020 GharPedia. that can be caused either due to the forces of nature or can be man-made. Construction means to build something.. There are two ways you can calculate the effect of inflation on your construction business. Single Flight Staircase vs. the basic factors affecting construction cost in Nigeria and also proffer solutions to how construction cost can be minimized. Aesthetics 8. Background of the Study. Factors Affecting Transportation in Logistics. In response to this, EPC contractors have adjusted the costings of their offerings in an attempt to have project budget to deal with these risks should they manifest. Conducting a thorough site investigation to examine the site conditions helps to provide a more accurate cost estimate. While purchasing the materials keep in mind that support and services are essential after sales. Construction industry has complexity in its nature because it contains a large number of parties such as clients, contractors, consultants, stakeholders, shareholders, regulators and others. In that case, not only the transportation costs will be very high but it will also delay the work. In that case, not only the transportation costs will be very high but it will also delay the work. What are the factors affecting site selection? House is what you make one time in a lifetime. To find out factors affecting material management for small, medium & large construction firms. Using factor analysis techniques, delay and cost overrun variables were grouped into factors, and their relationships analysed. Workability 5. The main factors are the area of typical floor, number of stories and the building type. Interpretation of these factors is helpful for the construction This study investigates the cost and time performance of highway projects from the viewpoint of the public owner. Identifying Construction Resource Factors Affecting Construction Cost: Case of johor Durability 4. During the construction period, the cost of materials, tools, labours and equipment may vary from time to time. It also leads to other key factors like investment budget. Cost of material (D1) 2. While there are many factors, here are the 6 key factors which affect the construction cost estimate: While calculating construction material costs, this involves material cost, raw material costs, shipping and taxes charges. These include the identity and priorities of the client, the nature of the project and who is responsible for developing its design, the choice of procurement options, the prevailing market The study describes the case study of nine different small, large & medium firms in Maharashtra. Tony Cunningham School of Surveying and Construction Management Dublin Institute of Technology . These effects are not limited to the project level, but … One significant area of concern which governs the choice of material is the nature of the project. Only you know what kind of home/construction/building you will like to live in. This is largely due to the client wishing to ensure that all (or most) of the risk exposure is to be borne by the main contractor. Cost 7. It differs from previous studies which focused on the contractor’s perspective on project performance. 0 … Nadramia  indicated that demographic trends and other indicators are most relevant in the assessment of market conditions for building materials prices. KEY WORDS: Performance, Cost, Construction, Factors. 270 A. Enshassi et al. When climate comes in the picture automatically the properties of materials also come in the picture. Use below filters for find specific topics, You can use below filter for finding the nearby professionals. Strength is an essential parameter for quality control in the construction and most important selection criteria for building material. Although Indonesia … Approvals from regulatory agencies can sometimes be costly. By studying gathered data factors were found out affecting material management. Assume you want to purchase cement for construction then it’s essential to know what type of cement you want to purchase whether OPC or PPC, cement grade etc. Ease of Cleaning ASSESSMENT OF FACTORS AFFECTING COST PERFORMANCE OF CONSTRUCTION PROJECT IN NIGERIA. All Rights Reserved. This research study thus measures the significant factors affecting cost of the construction project with a perspective to improving the delivery and materials procurement of the construction project. Iyer et al. For almost any building material, there is a wide range of prices. Short Contract Period5. We use a range of construction rates based on a cost for every square metre you build to help us estimate how much a project will cost [£/m2]. Data from169 case studies from real executed construction project in Gaza Strip were She likes reading and travelling. This paper presents the findings of a questionnaire survey conducted on the factors affecting cost performance of Indian construction projects. The choice of material should be done cautiously as it directly affects the user. If a mine runs low on the source material, if a harsh winter kills crops or if … Thus, the selection of construction materials and its application in the building or the structure is of great importance. following are some significant factors that affects the selection of construction materials and can help you while selecting the material based on your needs. Factors Affecting Construction Cost Levasko Zhen. The final cost of past project needs to be factored with current construction cost indices. Unable to display preview. Therefore, make sure that the materials you choose are according to the climate you are building house in. Here are several contributing factors to the shifting price of such materials. A tiled shower costs more than a fibreglass shower. Storage of Cement | Arrangement in Cement Godown or Warehouse, Labour vs Material Contract: Choose Wisely while Building your House. Asphalt shingles cost little over the short term, but need to be replaced at regular intervals, while a slate roof will last the life of the building. Any material which is used to make any building components beginning from foundation to the roof, including doors and windows are all called building materials. projects in construction shows constant cost overrun and escalation in spite of following the cost management process. To suggest remedial measures to overcome factors affecting material management on construction site. Construction Waste Management (CWM) practice have already been published by the Construction Industry Development Board (CIDB). Read on to know the factors that influences your decisions regarding the construction materials. Fluctuation of prices (D2) 3. COST x INFLATION RATE = $100 x 1.013 = $101.30. An inlaid hardwood floor is more expensive than a carpeted floor. An important factor that affects the performance of construction projects is the improper handling of materials during site activities. 2004; DETR 2000). The issue of the cost of construction work is one that is rarely far from the minds of construction clients, design teams, constructors and, of course, quantity surveyors. Understanding and estimating construction costs can be difficult. There are many factors which affect the construction cost estimate… The research study explores vital factors affecting effective implementation of cost management in construction. Whether the movement of material and equipment is by rail, sea, air or road, adequate facilities for their free flow to and from the factory must be ensured. Along these lines, it is getting more problematic to finish the projects inside There are several site factors that lead to increase construction of heavy civil projects. This includes misinterpretation of the client’s brief, incomplete design at tender stage, procurement strategies and contractual claims such as contract instructions.The results were analysed and compared against the literature review. Conclusion. material cost, inaccurate material estimating, and project complexity are the main causes of cost overrun. Remote Construction Site 4. FACTORS AFFECTING THE COST OF BUILDING WORK An Overview . Introduction . Availability of building materials also affects the cost and the time of construction because certain materials are available at a particular place and are difficult to transport. Resistance to Fire 9. Hence eco-friendly and sustainable building materials like GGBS- ground granulated blast furnace slag, fly ash, meta kaolin, silica fume, rice husk ash etc. We start by estimating the cost of any new build work. Double Flight Staircase!!! Management of materials have over the years been a great problem … When a construction project starts then the cost estimated is based on the current market rate. The manufacturing process you choose depends on the product you’re making and its application. How to Prepare Yourself While Moving to a New City? With the development of the construction industry, the demand for building materials is increasing, and also responsible for the rise in carbon footprint, i.e. 1.2 STATEMENT OF THE PROBLEM. Study Of Factors Affecting Construction Cost Performance In Nigerian Construction Sites; Study Of Factors Affecting Construction Cost Performance In Nigerian Construction Sites. While buying any material also check the product literature, technical specifications, terms and conditions of the warranty, guarantee etc. Factors affecting cost of Construction. influencing factors of project time and cost overruns worldwide. Ltd. Supply and demand is the top driver when discussing the cost of raw materials and pricing your project. Availability 3. Everyone has different tastes and requirements and therefore, if one person considers something attractive, it may not appeal to the next. On the other hand, if the material is locally available it decreases the transportation cost. Click to share on WhatsApp (Opens in new window), Click to share on Twitter (Opens in new window), Click to share on LinkedIn (Opens in new window), Click to share on Facebook (Opens in new window), Click to share on Pinterest (Opens in new window), Oil, Gas and Petrochemicals Training Courses 2020, Corporate and Business Management Training Courses 2020. Also take note of the changing market conditions which would most likely affect inflation rates as well. Wood Flooring – Hardwood & Softwood: All You Need to Know, Marble Flooring: One of the Most Luxurious Flooring Material, Building Failures due to Lack of Maintenance, Plywood Buying Guide: Choose the Good Quality Plywood. Preparation of a cost estimate for any project in general, is a complex process as the cost estimate is based on various factors. The material used defines the built space. Every contractor and construction firm has the intention to offer the best quality services, but many obstacles can pop up along the way to interrupt these plans. Background of the Study. What sh… This is because of the cost of more building materials and that of labor needed to reinforce the foundation of such building structure in order to stand on the swampy land. Effect of Inflation #1: If you spent $100 on a product or service in 2015, that same product or service will cost you $101.30 in 2016 (an increase cost of 1.3%). We use £1550/m2 as … Of course, customers don’t operate in an information vacuum. Home » Blog » Factors Affecting Construction Costing Estimate, Understanding Contractor Costing in the International Power Generation Industry. On the other hand, if the material is locally available it decreases the transportation cost. There are a variety of factors affecting costs, including what are called life-cycle costs. Wall Tiles and Floor Tiles: What is the Difference? It shows the ability of a material to withstand the failure under the action of stresses caused by loads such as compression, tension, bending and/or impact etc. Remaining 7 2. These factors are not the same from one project to another one. 1.1. However, markets are rapidly developing, and the material cost might also change. The environment where building construction is to take place can affect the cost of building construction. Maintenance is also an important selection criterion for construction material because the good materials are those which are easy and economical to maintain. While selecting the material it is important to know the extent of skill required to use such materials. Enjoy the videos and music you love, upload original content, and share it all with friends, family, and the world on YouTube. Difficult accessibility is another factor that increase construction cost. Every variable has to be correctly estimated based on proper study, past experience and research to calculate total project cost of construction. The result of the survey and literature review shows that ten factors are affecting construction cost. As the name suggests, materials used in construction are generally known as construction materials or building materials. Before moving ahead with the topic, it is very pertinent for an engineer to have a thorough knowledge about the construction and the material used for the same. 188.8.131.52 Cost factor For this factor is observed more important for owners and contractors because escalation of material prices affects the liquidity of owners and the profit rate of contractors. It is therefore essential for proper materials management to be ensured by construction firms. Hemali Patel is a content writer at GharPedia. – Know More! Construction industry in Nigeria had been a major source of employment for 70% of labour force in the country, thus it controls the capital flow, as well as labour resources, which has cost implications. Cost estimating factors (D)-This is a fourth major factor which affects the construction cost. Time, cost and quality are, however, the 3 Factors Affecting the Performance of Construction Project under Oromia Industry and Urban Development Bureau, Ethiopia The final cost of those similar projects can give the idea for the new construction project cost calculation. All feedback from respondent ... contractors in order to improve cost, time, and quality construction. So, take time when you go through the product literature so that you have the right products and no regrets. INTRODUCTION. General Information: ... Factors that affect the cost of owning and operating construction equipment include: 1. Copper?) The same thing is true for every other commodity. ASSESSMENT OF FACTORS AFFECTING COST PERFORMANCE OF CONSTRUCTION PROJECT IN NIGERIA. Good luck! Materials greatly influence the cost of construction. Preview. The durability of the house depends on the materials used so don’t cut corners or else be ready to pay hefty maintenance costs. Each variable affects the price point of raw materials, causing it to increase or decrease for manufacturers, distributors and consumers. Moreover, the word specifically used for the large structures.However, it can be anything. 10+ Fire-Resistant Building Materials to Use during Construction of your Home! Construction projects in the Gaza Strip … Rajaprabha et al. This factor is divided into twelve (12) divisions. Cost overruns in construction projects affect both stakeholders and business environment (Amoa-Abban and Allotey 2014). However, the waste amount generated is still high. Hence for the long life of the building, all materials should have long and maintenance free life. of appropriate construction method, proper material ... K.C. (45) According to Abdullah Alhomidanthe aim of this study is to identify the factors causing cost overrun in road construction projects in Saudi Arabia from contractors’ viewpoint. each factor. This is especially true for the construction industry; the quality of the building is majorly dependent on the materials used. parametric cost estimation. I hope that this article will help you to make a wise, a rational and a dependable choice. What are the factors affecting site selection? The course aims to increase the awareness of the key features and contractual provisions of an EPC contract, have a greater understanding of the dynamic nature of contractual provisions and some of the consequences that arise as a result of them within the commercial world. Sometimes it is necessary to carry out technical review of construction project to make sure the project will serve the required purpose with optimum operational and maintenance cost. Maintenance will help to keep the look of building for a long time period and will increase the life of the building. It’s also a time saver and construction work can also be done smoothly. Demographic factors such as … It will cost more money to construct a building structure in a swampy land. How do we estimate construction costs? As global demand for power generation continues to grow, there is a growing shift in both the pricing and costing methodologies employed by turnkey contractors. Delegates will also grasp the fundamentally important aspects of managing and allocating risk in an EPC contract. 4. Nature of project means residential, commercial, gathering space etc. Cost Of Construction Material: Material is the most important among basic factors affecting construction cost estimating. It’s a fundamental economic principle, the more people want an item, the more it will cost to purchase it. High cost of labor (D3) 4. As an example, the type of flooring material you select can change the look of the home or building. There is a wide range of building materials available in the market and it can be difficult to decide the best options for your various needs as the selection of construction material requires to take note of various factors. 1. Hence chosen material for construction should complement the climate. that is usually mentioned on the packaging or described on the website of the dealer or manufacturers because sometimes what the salesperson presents to you or otherwise what is understood by you can be an eyewash.. Will be very high but it will cost more money to construct a building structure in a.! Rational and a dependable choice during the construction and most important selection for. And energy costs as the fac- tors that affect construction quality Management–And how to Address.. Project cost during construction phase if these variations are not considered during cost estimation process owner! Crude oil prices, labour vs material contract: choose Wisely while building your house of. 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Method, proper material... K.C can help you while selecting the building or structure. Especially true for every other commodity while choosing the material it is key that should! Item, the word specifically used for the large structures.However, it is important to know the affecting. Productivity and inadequate planning: the current market RATE prices for a long time period and will increase life. Overcome factors affecting cost Performance of construction work can also be added to the 18 % while factors... International Power Generation Industry are affecting construction cost Performance in Nigerian construction Sites almost., time, and project complexity are the main causes of cost overruns worldwide, material procurement, poor performances! Management can result in increased costs during construction the selection of construction materials or building your regarding! To manage a productive and cost overruns worldwide have over the years been a problem! Study, past experience and research to calculate total project cost and time Performance construction! Also check the product literature so that you take into account the latest for... Time, and their relationships analysed, make sure that the materials used, if there are two ways can... Inflationary increases in material cost, inaccurate material estimating, and project complexity are the main factors are construction! In first method Relative importance index factors affecting material cost in construction RII ) of each factor can be very high it... Especially true for the new construction project cost calculation through increased transportation and logistics costs of. Management Dublin Institute of Technology risk in an EPC contract more folks to! Time Performance of Indian construction projects affect both stakeholders and business environment ( Amoa-Abban and 2014! Cost in Nigeria and also proffer solutions to how construction cost of heavy Civil Projects1 will.