Problems with Estimates in Building Construction

Why estimates go wrong

Having the right estimate helps the contractor and clients in planning and helps to reduce tension during construction. Variations eat deep into budgets and can negatively affect the entire project. Below is some of these reasons estimate can go wrong; 

(1)Unusual/ bad benchmarking -This is when you’ve done similar projects before and you use     exact rates to estimate the proposed ones not minding no two projects can be exactly the same. Topography, nature of soil, logistics etc. will vary based on projects.

(2)Unclear/Incomplete designs – inadequate detail in drawings may lead to assumptions of materials required. Often these assumptions are bloated and in other cases grossly inadequate.

(3)Untested Innovations/Techniques - Various techniques are used in construction with additional innovations, the estimator may be ignorant of some processes in construction methods which can cause serious oversight in estimating.

(4)Contractor’s desperation- Quest for job may make a contractor to quote a very low cost for a project to avoid losing the job to other competitors. This will surely bounce back and affect the entire project. An estimator and contractor that must cut costs by reducing only rates without change in materials may run into such problems.

(5)Pressure of over reduction by client-In the bid to save money yet still maintaining good quality and standard, many clients puts pressure on their contractors to reduce the cost of construction beyond reasonable/acceptable level. Out of ignorance the client request may be exceeded by an unscrupulous contractor/estimator which will cause disagreement and disappointments in the course of the project

(6)Not employing a Qualified Quantity Surveyor before and after project construction-  Quantity Surveyor are not only needed before construction, as work progresses they are useful for guiding our expenses, deployment of materials, payments of workers, proper records on financial activities and variations etc. Overall they help guide and keep you focused on your project, as they help to notify you of financial implications of every decision taken concerning the project before it is executed.

(7)Unexpected Environmental situations-Environmental factors can slow the wheel of progress on site and ultimately affect cost. Consider flooding which can slow the pace of work or destroy some materials and increase the cost of construction.

(8)Human Incursions/Nuisance-Construction time can be affected when social miscreants disturbs construction. Settling them may take unexpected delays, material could be lost which could affect the cost.

(9)Market fluctuations- Prices of materials especially cement fluctuates a lot in this part of the world. There are more construction activities during the dry season, hence higher demands on construction materials which also raises the cost of these materials. If you already have a lower markup, the estimate will no longer be adequate, variations must be added which will overshoot the initial budget.

(10)Change in specifications - As project progresses, design changes and clients new requirements will affect the estimate no matter how small the changes.

(11)Redesigning or Remodeling- When you adjust initial designs like internal walls been moved to create or reduce some rooms, redesigning the elevations can cause a big difference in cost of construction.

(12)Procurement Timing-You must procure some materials in time to avoid higher cost. 

(13) Not buying in bulk or purchasing more than required can also affect your estimate greatly.

(14)Inadequate or wrong measurement of plan - If there are errors in reading the plan or attention not being paid to details during construction, the estimate will run into problems.

(15)Wastages - Though there should be room in the estimate to cater for this, however without proper management on site you may record wastages that will affect the estimate.

(16)Accidents - Insurance will have to cover for accidents onsite if there is any but for anyone without insurance and there is an unexpected occurrence the project will have to suffer the bills.

(17)Improper or absence of statutory legal documentations - If right approvals aren’t gotten or there are issues this may cause stoppage of work, paying penalties etc which will also affects the estimate.

(18)Dispute on Property - For a project that will be disturbed by legal problems this will ultimately affect total cost of construction due to delays etc.

(19)Theft of materials on site

(20)Logistics and Preliminaries, process hurdles