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The Accuracy Of Number Surveyors

In view of the fact that the profession had been introduced in the country, Number Surveyors are engineering experts which being patronized under the Establishment of Surveyors, Malaysia and its own Board of Volume Surveyor Malaysia. Tips are given by Variety Surveyors on aspects of financial and contractual administration (ISM, 2004).

ISM (2004) define, the number Surveyor as the experts of capable in cost and management of construction projects and also need to price the Bills of Volumes, negotiating and agreeing plan of rates. Matching to Andrew Doyle and Will Hughes (1997), the number Surveying profession is continually scrutinised, with regular demands for higher accuracy and reliability estimating.

Besides, Mohammad Barzandeh (2009) identifies estimating as the process of calculated guessing by looking into the near future costs of a construction task before start work. It happens before engineering has started. THE NUMBER Surveyor is in charge of these quotes which serve to ensure that construction task will have an effective financial results. Phuwadol Samphaongoen (2009) expresses engineering cost estimating as a cumbersome process. A precise estimate requires a long time for the Estimator to complete it. Contractor's Estimator has to prepare cost estimates frequently for new assignments. Corresponding to Skitmore, et al (1990), the aim of development price estimating is to offer an estimate of the market price for the construction contracts.

In the other palm, Holm et al (2005) identifies cost estimating as the procedure of analysing a particular range of work which predicting the price tag on performing the task. Cost estimating also requires collecting, analysing and summarising all available data related to a construction task. Hira N. Ahuja & Walter J. Campbell (1998) define a straightforward classification of an estimate which is "a prediction of probable cost". Corresponding to Mohammad Barzandeh (2009), estimating is one of the most crucial functions for a successful construction project. These Quotes also affect the decisions made for budgeting and assist in Clients' decisions for selection of the Service provider.

1. 2 Problem Statement

Cost overrun is an extremely common occurrence as almost all of the construction assignments in Malaysia facing this issue. Cost overrun occurs when the ultimate cost or expenditure of the engineering project beyond the original estimation cost. Cost overrun occurs in both developing and developed countries. (A. S. Ali & S. N. Kamaruzzaman, 2010)

Besides, Kai Zhu (2005) emphasises, cost estimation and planning is an essential and important aspect in the engineering process, it helps effective and reliable control of the building assignments. Despite their importance, often in practice because of their time constraints, its requirements are not usually fulfilled which over time affect a projects quality, duration and budget.

According to Kai Zhu (2005), one of the factors that cause cost overrun in Malaysia building industry which is the inaccuracy of cost estimation prepared by Variety Surveyors, the possible consequence of cost overrun is abandon of structure project credited to underestimate. On the other hand, overestimated cost could direct result lack of opportunities by the Client and lack of contract award by the Service provider, both the Client and the Contractor could incur significant losses credited to underestimated cost.

In addition, Stephen D. Schuette et al (1994) emphasises that inaccurate building project estimates may have a detrimental influence on all parties included. Many additional factors which might affect the future events of structure project such as labour efficiency, material supply, financial marketplaces, weather, constructability issues, equipment availableness, deal types, ethics, quality issues, control system, management capability while others.

1. 3 Objectives

Objectives:

To identify the factors that impacting the reliability of estimation by Volume Surveyor during pre-tender and soft stage.

To identify the impact of inaccuracy in estimation to your client and/or the Builder.

To make suggestion for minimise the inaccuracy of estimation during pre-tender and soft stage.

1. 4 Rationale of study

Keith Potts (2011) says, the estimating process is vital, as it allows construction companies to find out their direct costs and a important thing cost below which it would not be inexpensive to allow them to carry out the structure work. Leng (2005) also states, cost estimation is one of the main activities of the complete project duration. An over-estimate may lead to sensitive not being accepted by your client and sacrificing potential work. An under-estimate could lead to Contractor losing money.

According to Hira N. Ahuja & Walter J. Campbell (1998), cost estimation play the major role in the decision-making process that leads from concept to completion of a building job. Cost estimating has become very important under economic conditions with high inflations and fiscal constraints.

As talked about by Keith Potts (2011), the essential challenges encountered by the Contractor's Estimator is to calculate the expenses of creating a project routine for the precise development activities and from then on build the structure project within the estimated cost and plan. Contractor to create a construction job profitably, the price estimating and cost control skills are incredibly essential for the Builder.

Kai Zhu (2005) suggests that the factors which have an impact on the accuracy and reliability of estimation should be identifying to be able to boost the correctness of estimation. Besides, accurate cost estimation minimise the risk of cost overrun, provides self-assurance on construction task results to the management and plays a part in the tactical management of the business. Regarding to Zaitoun Shadeed Al-Khaldi (1990), there are many factors that impact the reliability of development cost estimating and it should be considered in the early stage of an estimate. A number of the factors can increase costs and the opportunity of contractual disputes between the various parties involved.

1. 5 Research Methodologies

As stated by Richard Fellows & Anite Liu (2008), there are two major solutions being employed for data collection, that happen to be principal data and secondary data. Primary sources allow the researcher to acquire as close as is feasible to what actually happened throughout a historical event or time frame. A second source is a work which interprets or analyses an historical event or trend. It is generally at least one step taken off the event and is generally based on primary sources.

According to Richard Fellows & Anite Liu (2008), principal resources can be categorise into qualitative, quantitative or a mixed method research. In qualitative methods seek to obtain insight and to understand people's perception. Quantitative approaches tend to relate with positivism and seek to acquire factual data, to review relationship between facts and how such facts and associations accord with theories and the searching from any research carried out recently. Interview will be conducted to be able to derive main data. Besides, Quantitative strategy such as questionnaires will be employed and conduct through postal delivery and e-mail.

According to Denscombe (2007), extra data supply the researcher theoretical history and knowledge. Secondary data will be gathered by literature review method, which include reading journal, articles, printed electronic, thesis or dissertation done by other students, reports and books. Because of this project dissertation, most the secondary data is gathered through catalogs, articles and publications.

Chapter 2: Literature Review

2. 1 Factors affecting the correctness of estimating

According to Hira N. Ahuja & Walter J. Campbell (1998), exactness in estimating relies on independence of avoidable mistakes. Estimates errors can also be attributed to complex errors in calculations or simply to careless "blunders". Some common blunders are misplacing a decimal point, failing woefully to include the total of every estimate sheet in the final summary, errors in transferring statistics in one sheet to some other, simple multiplication or addition mistakes and misreading lots because of unclear handwriting. Anybody of these kind of errors may lead a significant influence on the accuracy of the estimate.

2. 1. 1 Development items

2. 1. 1. 1 Intricacy of project

Michael kitchens (1996) emphasises that the construction industry has become increasingly complex over time consequently of improvement and advance in technology, natural advancement and litigation. H. vehicle Meerveld, et al (2009) says that the amount of complexity of the construction project is a function of three features which include organisational complexity, source complexity and/or technological complexness. Cost estimation might effect by organisational complexity, resource difficulty and/or technical complexness.

As mentioned by Michael kitchens (1996), organisational complexity is the amount of people, departments and organisations that are participating. Organisational complexity might trigger a lack of information due to communication becomes more difficult when more people are involved. The info that is lost can often be necessary for acquiring an estimate. Organisational intricacy can also suggest that Estimators work all together on the same project. In this case, Estimators have to place more work into coordinating this simultaneous work.

According to H. vehicle Meerveld et al. (2009), learning resource complexity is the quantity of resources engaged constantly assessed through the budget of the development project. Resource complexness means that the overall amount of work needed to estimate rises which also boost the chance of making flaws or errors.

H. truck Meerveld et al. (2009) note that technical complexness is the amount of innovation involved in the product or the building job process or novelty of interfaces between various areas of that process or product. Techie complexity means that Estimators will have to make manual adjustment to get a more accurate estimation on the particular construction job. In projects that are more complex are at the mercy of a higher chance for the change of design. The Estimator must re-estimate the entire project or elements of it with respect to the sort of design changes.

H. truck Meerveld et al. (2009) state that on the whole there are two issues influence the estimating activities on more technical projects, such as an increased demand for coordination and framework to prepare an estimating for the engineering project. Besides, if difficulty increases estimating will require more effort to acquire an estimate and the likelihood of making mistakes increases.

However, according to some. Ashworth et al. , the complexness of modern development industry and all of the techniques used have limited the option of reliable responses of information. In practice, the Estimator must use his own standard outputs and few these with an expectation of future performance.

2. 1. 1. 2 Labour productivity

As stated by Donald F. McDonald et al (2004), on building projects you'll find so many circumstances and occurrences that may cause productivity to drop which the Estimator might not expected when estimating the construction cost. Estimating labours and accessories costs requires more understanding of building techniques and experienced wisdom as equate to estimating materials cost. As estimating labours and equipment cost gets the greatest uncertainty is within predicting the output of the labours and equipment which used on the building project.

According to Aiyetan Ayodeji Olatunji (2010), development productivity is affected by many factors which including material, equipment, tools, engineering methods, management skills in terms of adequacy and correct software. Donald F. McDonald et al (2004) mention that consequently of poor job management may be brought on by the failure to properly plan and coordinate the task and the Estimator may not expected that event of the poor project management.

According to Donald F. McDonald et al (2004), work that is not scheduled properly which can lead to shortage of critical engineering equipment or labours and wrong mix of labour crews may cause decreased productivity of the labour because the labour might not able to work as successfully as they could. Incorrectly planned and carried out project initiation strategies may also lead to lost labour output.

Donald F. McDonald et al (2004) also claims that if material, tools or structure equipment are not available to particular labour at the right location and timing, the productivity of the particular labour probably suffer from as they may be unable to continue in a consistent manner. Production of the labour might put up with if the incorrect tools or incorrectly measured equipment is provided. Furthermore, poor site layout design make a difference the output.

In addition, Lee Holm et al. (2005) emphasise that estimating should be vary rely upon site conditions, labour size, labour experience and equipment preferred for this construction task. As lost production of labours are not monitored normally or cannot be discerned independently and contemporaneously.

2. 1. 1. 3 Insufficient time

David G. Carmichael (2002) emphasises that construction projects including design time of weeks or years which require the Contractors to break down the sensitive documents and send the sensitive within a relative short period. The look, estimating, creating a work method, studies among others are ready within a brief period or an inadequate time is allowed. The Companies is required an appropriate tender period to build up thorough the tender.

David G. Carmichael (2002) states that as insufficient time is given to the Builder for estimating and costing the sensitive in hurrying process, the Contactor might miss out any previous awareness. Binnington Copeland & Associates (2012) also declare that as the inability to allow the Estimator adequate time for you to carefully consider and costing for risks which can result in excessively high sensitive prices where substantial contingency is allowed by the Estimator to protect unpredicted situation, as the Estimator had not enough time to deal with it. Besides, matching to David G. Carmichael (2002), this presents challenging to the Estimator who has to put together and complete several estimations and tenders in a relative short period of the time.

Tang Wai Kuen, Raymond (2005) emphasises that inadequate time for cost estimating is the prior factors which cause inaccurate cost estimating incur, as development programmes are extremely small and designs are generally modified. The performance of cost management adversely impacts the Estimator to quotes as insufficient time is provided.

2. 1. 1. 4 Inadequate information

According to Aiyetan Ayodeji Olatunji (2010), most the Companies' Estimator facing problem when tendering for a building project that your information provided is inadequate. Under this circumstances, the Estimator must make his or her own estimation and assumption on it, if inaccurate estimation has been made, it could lead the Contactor overestimate or underestimate. Overestimate might cause the Contractor unable to award the structure project, underestimate might cause the Contractor unable to gain profit from the particular project or more most severe still get away from of work scheduled to inadequate financial to perform the construction job.

2. 1. 1. 5 Insufficient option of equipment

There are two major circumstances which faced by the Estimator when estimating or costs the tender. First of all, the Estimator may need estimating the fluctuation of the price tag on equipment for relative long of period as the engineering period normally previous for few years. Secondly, during tendering stage the Estimator might require deciding whether own the equipment or hire the equipment from specialist company if the project require certain equipment that your Contractor does not own the gear (Zaitoun Shadeed Al-Khaldi, 1990).

According to Zaitoun Shadeed Al-Khaldi (1990), the Estimator has to evaluate and select one particular piece of equipment, it is essential to determine its hourly cost very accurately. Some factors need to be considered during this stage, that happen to be number of hours used each day, month and yr, seriousness of job conditions, the way the equipment has been looked after and the demand for equipment held by the Builder when it is sold. In addition, the price of the equipment might be increase anticipated to inflation or many mega tasks are run concurrently which might cause the unavailability of the equipment.

2. 1. 1. 6 Imperfect drawing and fine detail design

Lee Holm et al. (2005) emphasise that the accuracy and reliability of estimate will depend after the completeness of the agreement documents provided while others. In addition, the factors of incomplete drawing and information design as the factors which cause inaccuracy of estimation in structure job. During tendering, the Contractor's Estimator is undertaking the estimating work due to sketching is unclear and nothing very detail shown in the drawing. The Estimator must make his or her own assumption for estimating and rates the tender. This factor will boost the chance of inaccuracy estimation for the particular construction job.

2. 1. 1. 7 Computerised estimating software

The actual use of the computer for estimating is varied within the engineering industry. Some companies use the computer for all those construction assignments with a higher degree of sophistication and some other companies do not use the computer by any means. (Stephen D. Schuette & Roger W. Liska, 1994)

Phuwadol Samphaongoen (2009) defines specific cost estimating as a troublesome process which involves a lot of data and calculations, improvement in technology that may assist the estimating process of construction cost; it could reduce the Estimators' work fill. Computers are believed to be effective tools for helping Estimators through the pre-tendering and tendering stage. Computers provide many benefits to the Estimator, which including reducing estimation errors, the time required yet others.

Stephen D. Schuette & Roger W. Liska (1994) declare that the first uses of computers by the construction companies were limited by accounting functions only. The improvement in micro-computering have increased understanding of computer capabilities construction managers have begun to use computer systems in everyday structure functions to make quick and correct decisions.

Phuwadol Samphaongoen (2009) claims estimating technologies which include spreadsheets, builds smooth, microsoft excel, cost estimating software, digitizing tablets, on-screen digitizing systems and the yet to be matured 3-D CAD parametric estimating software among others. During the thorough cost estimating process various software packages are available to assist the Estimator. The capacities of software packages fluctuate greatly, as a few of the program is include labour, equipment and materials cost databases, following the database is set up which could facilitates the estimating process.

According to Phuwadol Samphaongoen (2009), a spreadsheet is your personal computer request which simulates a newspaper worksheet. It arrange for the user with cells that are compiled into rows and columns. Each one of the cells can contain either words, numerical values or formula, it could be defined in skin cells to obtain determined value from the related skin cells. Complicated mathematical calculations can be programmed with a big change or alter of a single cell with the use of solution in the spreadsheet. Estimator uses the worksheets to speed up the estimating process. A template can be create by the Estimator with preserved solution in the spreadsheet. Variety take-off calculations is capable of doing within a spreadsheet by the Estimator. Although a spreadsheet takes a lot of suggestions from the Estimator, it might remove the troublesome and error vulnerable manual calculations during the variety take-off and costing.

As explained by Mofti Bin Marjuki (2006), Global Estimating can be an estimating program which has been personalized for commercial use in the construction industry. Charges of Amounts or detailed Estimations and Cost Plans can be produce through this program. Designed generally for use by commercial building Contractors and professional Amount Surveyors it includes features which allow it to be used in other business where estimating is necessary. The grouping columns in the program are extremely powerful as it can be re-sorted or analysed the came into information. For instance, the estimate can be summarised to create totals by area, stop, stage, cost centre, accounting group, or any user defined set of codes.

Mofti Bin Marjuki (2006) talked about Microsoft excel can be used for contains or store industry standard cost data in the CSI format for any cost categories covering general construction. Device prices include materials and labor including labor time. This software provide easily adjust and add cost data to suit local conditions and business. Besides that, Microsoft excel instantly creates user-modifiable, onscreen or paper estimate studies including price quotation. Furthermore, this software can save time, improve precision and achieve increased success.

Phuwadol Samphaongoen (2009) notes that a digitizing tablet is your personal computer source device which uses a stylus and a monitoring surface to fully capture the drawing to the computer system. The drawing traced on the tracking surface exchanges point coordinates to a pc; it could be used for many different purposes which including structure cost estimating. Digitizing tablets' goal in structure cost estimating is to digitize the paper-based blueprints provided by Estimator or the designer.

For example, the Estimator can get the distance, perimeter and area out of the drawing by the level provided in the blueprints. These parameters can be found with all the digitizing tablet through program. After the newspaper plans have been digitized and the quantities for any work items have been driven, the Estimator might those volumes to estimate the costs of items, but amount takeoff using the digitizing tablets could cause errors from unstable hand during tracing the drawing. Digitizing require a large number of plans which is very time-consuming process to the Estimator. (Phuwadol Samphaongoen, 2009)

Phuwadol Samphaongoen (2009) pointed out that 3-D computer aided pulling (CAD) models allow estimators visualize what will be built-in the 3-D environment. The capability to digitally extract and copy data can increase and facilities the price estimating process. A building model allow the user seen in a variety of views such as details of elements, measurements can be extracted and used in the estimating software.

In the other hand, Stephen D. Schuette & Roger W. Liska, (1994) state that the tasks of the Estimator might change if the Estimator's company implements the utilization of the computer in the estimating process. Before computerisation estimating process the Estimator put in the greatest amount of time determining the quantities of materials and performing math calculations. Computer systems accomplish these tasks rapidly and effectively let the Estimator to give more attention and awareness to alternative development methods, material provider negotiations, predicting the productivity of labours, producing correct cost information and bidding strategies.

Everything that comes from the computer, the Estimator shouldn't agree to it blindly or rely totally on the computerised system as the computer cannot make common sense. The consequence of the computerised estimate software should always review by Estimator to avoid errors and mistakes; as computerised estimation software is not immune system to technical faults which are likely never to be recognized easily and early on as recommend by Stephen D. Schuette & Roger W. Liska (1994).

Besides, Stephen D. Schuette & Roger W. Liska (1994) declare that computerised estimation software could also be susceptible to technical limitations such as failure to work under certain conditions, inability to work with other tools and limited by technical support. It might trigger severe repercussions on estimating techniques due to the Estimators insufficient knowledge on those computerised estimate software.

The manifestations of tool established error are which included: software construction, faults from programme performance frameworks, errors from a second source, end-users' improper use, lack of ability to interact correctly with other applications and more (Oluwole Allfred Olatunji, 2010).

In addition, Oluwole Allfred Olatunji (2010) mentions that computerised estimation software could obsolesce of criteria due to progression of it in the estimating industry, especially description libraries and databases used for automatic estimating. Estimators or applications must be modified frequently when included in a program as reference specifications for reviewed, often that this program opportunity miss-apply the expectations.

2. 1. 1. 8 Experience or certification of Variety Surveyor Estimator

According to Skitmore et al. (1990), 'expert' Volume Surveyors in the united kingdom provided proof significant dissimilarities in estimating reliability between the specific surveyors included. Lee Holm et al. (2005) emphasise that the precision of estimate also will depend upon the completeness of the experience of the Estimator among others. As mentioned by Hira N. Ahuja & Walter J. Campbell (1998), the Estimator's knowledge provides a measure of perception and reliability that is unobtainable from other information resources.

According to Skitmore et al. (1990), building deal price estimating practice is, with very few exceptions, heavily dependent on the skill of the Estimator. This skill is associated with the other factors affecting the grade of Estimator which will be the nature of the mark, information, technique and feedback and the personal features of the forecaster himself incorporating to supply the basic term of "expertise".

Besides that, Mudd (1984, p. 1-2) has identified that Contactor's Estimator should associated with certain attributes. These include: good basic numerate and literate education, realistic time spent on site, interpret drawings, potential to communicate, service to make accurate mathematical calculations, software of logic and common sense, patience, in a position to cope with a massive volume of paper, a working understanding of all the major trades, close romance with those peoples who are responsible for development, a knack of picking right up useful information, overall flexibility yet others.

2. 1. 1. 9 New/innovative techniques or materials

The implemention of Industrialised Building System (IBS) continues to be not widespread on the market despite the federal government has urged the implementation of IBS towards minimizing percentage of international works and improving quality, productivity, basic safety and competitiveness through IBS building method. IBS is a construction process that utilises techniques, products, components or building system which included prefabricated components and on-site set up (CIDB 200).

Salihudin Hassim, Mohd Saleh Jaafar and Saiful Azri Abu Hasan Sazalli (2009) emphasise that since the first job of IBS in 12 months 1964 till today, IBS in Malaysia is not well accepted by the engineering parties because of failure to adequately package with risk in the IBS assignments. The failing to retain in cost estimation in IBS task is still common in Malaysia which is one of the reasons that limit the development of IBS in Malaysia development industry.

2. 1. 1. 10 Option of historical price data

Martin Brook (2008) claims that estimating method used for cost planning and estimating which depends on historical cost data during early stages, whereas current price apply by analytical estimating approach to resource for a well-developed design. According to Hira N. Ahuja & Walter J. Campbell (1998), most proven companies make it a policy to keep files of genuine costs incurred on the various construction assignments.

As brought up by Hira N. Ahuja & Walter J. Campbell (1998), the estimator can determine whether his believed costs were appropriate or elsewhere through comparing documents of predicted costs. In case the estimating is not appropriate, if the discrepancy was anticipated to Estimator own insufficient expertise or somewhat or incur some unexpected cost-incurring conditions. In addition, these cost records provide another function, which offers reliable cost data for organizing future quotes.

Tang Wai Kuen, Raymond (2005) mentions that we now have several historical databases available offering current ideals for estimating costs of the number of models of work for a task. The exemplory case of historical price data such as directories are collect from files of actual project costs or company's own previous experience and on-going price quotations from suppliers and are published annually by means of literature, CDs and computer-based extranets.

Stephen D. Schuette & Roger W. Liska (1994) recommended that it is important that appropriate repository information be received to build up the estimating information data standard bank. Within the other hand, according to Tang Wai Kuen, Raymond (2005), making use of publicized data or software repository prices without first adjusting for the particular areas of the project it might cause underestimate or overestimate. As every job in construction is exclusive as every task with a distinct set of local factors, for cases; size of project, degree of competition, flexibility of specifications, work site, working hour constraints and more.

As explained by Tang Wai Kuen, Raymond (2005), review each series item by the professional Estimator is required when the estimating system mounted on a price data source, such review for the Estimator to make certain it is applicable. Inaccurate quotes can be caused by the Estimator applying these repository prices blindly. Historical can be constitute a significant reason behind inaccurate cost estimation, if the Estimator store incorrect or inaccurate data as price database, in future the Estimator make cost estimation depends on inaccurate or wrong database cause incident of inaccurate estimate.

On the other side, Hira N. Ahuja & Walter J. Campbell (1998) emphasis, estimating magazines have increase greatly, these courses are invaluable to Estimators who don't have access to real job records. Posted data are of help during all stages of estimation development. Though it is certainly not suggested that released data alone be used for a whole estimation, but it is without a doubt useful in completing the gaps in expense information where no other source is unavailable.

2. 1. 2 Financial factors

Aiyetan Ayodeji Olatunji (2010) areas that the performance of development projects negatively affects by financial risk, financial risks might include high inflation and increased building of the project. These factors impact particular projects where materials and goods are necessary for construction have to be imported from international country. The exchange rate changes on a daily basis are high so the interest rate subject to change, it does increase the ratio or likelihood of inaccuracy estimation take place. As mentioned by Laeeq Hassan (2010), financial risk associated with structure projects which include paucity of money, delay in repayment while others. All construction gatherings or companies requires in construction projects at the mercy of financial risk.

Chia Fah Choy (2011) emphasised that structure sector similar to numerous other market sectors as the development industry is also subjected to the increase and bust cycles of the current economic climate. Malaysian construction sector has experienced four cycles since 1960. The exterior shocks of the problems of the 1970s, the 1980-1982 global recessions and the 1997-1998 Asian financial meltdown have plunged Malaysia development sector into a more serious contraction spike than the one before. The gross annual expansion of Malaysian development sector contracted 10. 3%, 14. 0%, 24% and 1. 5% in 1975, 1986, 1998 and 2005 respectively.

As described by Gruneberg. S. L & G. J. Ive, (2000) that engineering industry involves long term investment and permanent risks, it'll be the first to be suspend at the first sign of an economical downturn and the last to be received during an monetary upturn leading to long periods of recession for the building sector whenever a general business circuit has experience.

2. 1. 2. 1 Fluctuation in money exchange

As emphasised by Ervin, E. (2007) that fluctuations in structure prices make it problematic for cost Estimators to accurately estimate construction job costs. As advised by Fetene Nega (2008), if the materials or other components of the construction job are being purchased from overseas countries, the change in forex rate is specially relevant to it. Besides, the foreign exchange rates change beyond the expected level; then the price of the project may increase which automatically brings about cost overrun or underestimate.

2. 1. 2. 2 Inflation

Laeeq Hassan (2010) expresses that the construction costs can increase due to inflation. In case the rate of inflation boosts above the predicted level through the construction stage, then the original cost estimate will be exceeded. Definitely that delays of any construction project; it will expose the project to the chance of further inflationary cost boosts.

According to Fetene Nega (2008), the consequences of inflation can cause lack of profit to contractors and higher cost overrun to task owners because of the dynamics of the inflation process and the rate of return for work carried out on construction tasks. As recommend by Laeeq Hassan (2010), Contractor's Estimator must consider the effect of inflation while finalising their rates for sensitive.

2. 1. 2. 3 Lack of Building Materials

Fetene Nega (2008) says that during high development period where the level of construction activity is unusually high in a particular region, shortages of some building materials maybe happen scheduled to high development period. It may also lead the inflation influence on engineering materials.

On the other hands, as stated by Fetene Nega (2008), sometimes building materials may not be able to supply by the local market fully demand, hence, a need may come up to import these structure materials from in another country. If this situation or circumstance is not expected in the initial cost estimation, delays might occur and/or the prices of the elements may increase which consequentially lead to postpone and cost overrun for the construction project.

2. 1. 3 Engineering parties

Flanagan and Norman (1993) mention that there are different player has in this complicated construction industry. They are Clients or Owners or Employer, Project Managers, Architects, Consultant, Builder, Sub-Contractor, Manufacturers, Suppliers, Local Specialists and others. Furthermore, scheduled to more players are involved in construction industry, the duty of project management becomes complicated, but among all players only three players are extremely prior where structure industry rely upon Client, Advisor and Service provider.

2. 1. 3. 1Government policy

As stated by Aiyetan Ayodeji Olatunji (2010), the cultural environment concerns needs for tasks or individuals while the political environment can be involved with government coverage and the result of political decisions on construction assignments. Norhisham Bakhary et al (2004) talk about that around 232, 000 units of low cost houses must be constructed regarding to Eight Malaysian Plan (2001-2005) during that period. Because of the urbanization and increment on affordable homes each year, numerous campaigns and work in providing satisfactory shelters has carried out by the government to accommodate the growing human population, especially to cater for the low-income group.

According to Nor Azizah Mohammed Rum & Zainal Abidin Akasah (2011), incensement in civil engineering and non-residential property mainly supported by the development of construction industry, including the execution of development projects under the Ninth Malaysia Plan. The development industry is predicted to grow around 4. 9% this year 2010.

According to Norhisham Bakhary et al (2004), the federal government remains the largest Client in almost all of the infrastructure tasks. Runeson, G (2000) also expresses, the government makes up about the majority of infrastructure construction. The Government could use its development programmes as an important tool in its financial stabilisation policy in order to compensate for cyclical changes in the private sector building activity, stimulating or damping demand and prices. As advised by Allan Ashworth (1994), since administration is still a significant Consumer of the engineering industry, it is luring to suggest that Federal uses the industry as an monetary regulator. As the industry is broken by the stop-go nature of its activities, there is merely scant proof that federal government effectively converts the faucet on or off in order to regulate economical performance.

2. 13. 2 Client

According to Allan Ashworth (2007), the client's fundamental needs can be summarised as follows: satisfaction that the building fulfills their needs, that it's available for occupation on the particular date for completion, that the final account closely resembles the estimation and that the construction job can be taken care of at sensible cost. One of the client's preceding requirements according of any development task is the diagnosis of its expected engineering cost. The techniques employed for controlling the costs will be different, relying on the type of project and the type of the Client. The methods applied should be moderately accurate but adaptable enough to suit the individual Client's requirements.

2. 1. 3. 3 Consultant

Nick Butcher & Linda Demmers (2003) specify licensed experts known as cost estimators who prepare cost estimates. Classroom is insufficient to teach entirely of the Estimator. The idea and technology of estimating is important but it require experience with building, as well as experience actually quantifying and charging engineering work. The less information available in regards to a project, the more experience is required to do a cost estimation.

Omole A. O (1986) emphasis, cost factors are being among the most prior and basic considerations that Consultants must deal with. It's important to see that assignments are included within the Client's budget and cost forecasts. Cost has the final control over virtually every construction task. Accurate cost analysis and control is one of the fundamental services that the Client requires from the Consultants.

According to Hira N. Ahuja & Walter J. Campbell (1998), the Advisor in essence uses the estimate to recommend and suggest the best option on site selection, design of facility, layout things to consider, equipment selection and everything allied technical things. The recommendation and suggestion of the greatest option on site selection, design of service, layout things to consider, equipment selection and everything allied technical matters suggest by the expert through estimation.

2. 1. 3. 4 Contractor

As explained by Hira N. Ahuja & Walter J. Campbell (1998), reliable cost estimation alone determine profitability for a Builder. Cost estimates assist the Service provider either to propose cost plus basis bid or a competitive bet for a stipulated price contract. These estimates are the important criteria in order to survival in an extremely competitive industry.

2. 1. 4 Environmental

2. 1. 4. 1 Location of projects

According to Hira N. Ahuja & Walter J. Campbell (1998), it's very rare a construction project priced at at one place will cost the same amount at another place. Standard costing does not reflect the distinctions within a little area; these differences will be the most preceding for estimation. Even within a given area particular dissimilarities can consequence of large cost dissimilarities for the same structural design.

As advised by Aiyetan Ayodeji Olatunji (2010), the Estimator should take bank account of the accessible road to the building site during estimating or charges for the tender. The road accessibility to construction sites play an important role, if the convenience breakdown vehicles can get caught up in the street it will have an impact on rapidity of delivery of materials, worst still it could cause delay of the task and follow by cost overrun as they as interrelated.

As mentioned by Neil Sinclair, et al (2002), "Since a structure project's location affects the ultimate cost", an Estimator should comprehend what particular locational factors will be experienced and what concerns should be studied into account when formulating the estimate. " Estimators must be aware, face and consider the locational variance during tendering stage, as various locational has various circumstances such as remoteness, restricted sites, labour availability, weather, design factors, vandalism, site security among others.

2. 1. 4. 2 Weather condition

As identified by Lavender (1996), structure can be an outdoor industry. The adverse climatic conditions may have detrimental effect on the construction program and hinder production. The problem will be more serious during groundwork and before the building is weather small. Furthermore, Olomolaiye, Jayawardane et al. (1998) mentioned, hot and moist climates are much less conducive to mental and physical energy and exotic environment favour muscular activity creating much body heating and pain.

Zaitoun Shadeed Al-Khaldi (1990) also declares that the end result of the labour can be damaged by excessive heating, as labour feel unpleasant with abnormal warm. In other palm, as explained by Chia Fah Choy (2011), Malaysia has a typically exotic environment; it is hot and humid over summer and winter. Besides, large magnitude required by building activities and the activities are performed on open up sites that are subject to the consequences of weather variations.

As proved by Chia Fah Choy (2011), weather impact specifically extreme rainfall, was reported to be one of main factors creating significant delay and cost overruns on structure assignments. The impact of rainfall on development activities can maintain the form stoppage of work which is attributed either to the shortcoming of structure labours to handle work under severe conditions of heavy rainfall. The Estimator might estimate the weather predicated on past record however the nowadays the weather are keep changing it's very difficult for Estimator to count on past record.

As suggested by Zaitoun Shadeed Al-Khaldi (1990), the weather has a marked effect upon result of construction job. Under wet climate the end result of excavation specifically is reduced and the website conditions becomes tender and heavy, excavating flower will become blocked, while internal transportation on available sites becomes quite difficult. In other palm, the outcome of the labour can be affect by excessive heat, as labour feel uneasy with excessive warm.

As suggested by Hira N. Ahuja & Walter J. Campbell (1998), in wanting to account for the effects of weather on engineering costs, the Estimator must consider both location of the job and the growing season where key stages of the job will be slated. Weather forecasting is not yet of sufficiently long range to be of great use to the Estimator. The Estimator might just able to refer to historical weather records to determine the average rainfall and the heat range extremes and averages for the particular locales. From these information the Estimator able to create a picture of probable climate and make allowances for the result on engineering costs.

2. 1. 4. 3 Site Surface Condition

According to Aiyetan Ayodeji Olatunji (2010), the inherent site conditions of a construction job might have an impact on the quickness of delivery, donate to wait and cause additional cost. This is usually due to a lack of or poor investigation of site surface conditions to obtain data regarding site dirt conditions. Site ground conditions make reference to the features on a niche site, whether there are existing set ups or not; the health of the subsoil; the firmness of the planet earth beneath the surface; underground service ducts and similar features.

Fetene Nega (2008) state governments that the hi-tech equipment, trial pits or borehole sampling can be used for assess earth conditions. However, the full amount of the genuine site condition only can be motivated when the excavation is completed. It really is sometimes possible that those difficult conditions are overlooked by the initial review or unfavorable weather changed earth conditions or changes in sub-soil conditions.

As emphasised by Fetene Nega (2008), surprising sub surface condition might lead to great price as it needs redesigning of job fundamental. In addition, the changes in surface floor conditions can lead to problems for moving machinery and equipment around the website, undertaking excavations and laying foundations. This can can also increase costs and add to the engineering time required.

2. 1. 4. 4 Dirt and land stability

According to Aiyetan Ayodeji Olatunji (2010), where it is learned that the dirt condition is made up of low bearing capacity and a thorough soil test was not completed prior to construction, significant time related problems may come up. To be able to remedy the problem a thorough land condition examination can not only be sanctioned, however the unsuitable garden soil will be lower and carted away. This corrective process does take time, might adversely have an effect on the delivery time and perhaps lead to an increased last cost to complete the project.

Aiyetan Ayodeji Olatunji, (2010) mentions, earth might be polluted due to the chemical deposits which may cause in weakening the strength of the soil. It really is advised that a ground test be carried out to disclose the characteristics of earth condition on site surface. When soil contaminants is experienced to reasonable depth on site, the earth must be excavated and taken off the site, refill with suitable materials and small it in line with the strength requirement of the soil. This process may have an effect on delivery of the construction project to plan and incur additional cost

According to Hira N. Ahuja & Walter J. Campbell (1998), land condition and topography are the primary factors of an construction site triggering variation in the price estimate. As opposed to the preceding varying, quality, garden soil conditions are unusually suitable in preliminary estimates and are beyond the discretion of the job custom made. In building construction, foundations can take into account from 5 to 20% of the total cost. Generally, excavation costs in rock are in the bigger range compared to those in regular soil.

Hira N. Ahuja & Walter J. Campbell (1998) express, soil conditions have to be one of the most ordinary factors behind cost overruns and engineering task problems. Therefore, the Estimator to learn as much as possible about the ground conditions on the webpage. In addition, Aiyetan Ayodeji Olatunji (2010) areas, where concealed or mysterious service ducts are discovered on structure site along the road of the proposed structure, the construction programme might influence by it. The removal of the buried service ducts might require the use of more resources that have cost and time implications.

2. 1. 4. 5 Public and cultural impacts

Aiyetan Ayodeji Olatunji (2010) mentions that successful delivery engineering project might constrain by the socio-cultural issues and unanticipated circumstances; it might affects the even flow of structure activities on sites. It includes the impact of natural hazards, adverse local weather conditions while others.

2. 1. 4. 6 Legislations and regulations

As mentioned by Aiyetan Ayodeji Olatunji (2010), wait of any project's delivery time might have an impact on by restrictive work hours on, this factor have a significant results when the cumulative impact is looked at. Building activities could influence by the restrictions, such as lifting of heavy materials to high levels with a crane scheduled to limit working hours a few of the actions have to stop.

Tang Wai Kuen, Raymond (2005) also pointed out that extra cost impose on companies credited to local rules. Increment in the engineering cost due to improve in statutory polices such as pending imposition of development deposal fee while others, as the Contractor's Estimator might not be allowed for such cost during tendering.

2. 1. 5 Method used for estimating

According to Lumber (1974) cited by Mofti Bin Marjuki (2006), that estimating is required at all periods of a structure project with varying of option of information thus several methods are evolved. Estimator is actually needed to consider the partnership between available information, project stage, ways of estimating and correctness. Estimating is the procedure for simulating the near future by creation of an image predicated on historical information. According to Mofti Bin Marjuki (2006), estimating contrived from submitting press is just a little accurate so estimation should be completed on information related to the building industry.

2. 1. 5. 1 Primary Estimates

According to Hira N. Ahuja & Walter J. Campbell (1998), Primary Estimate is thought as "a cost prediction based exclusively on size or capacity of a proposed job. The purposes of an initial estimate which include as a means of ranking options for investment appraisal, analysis of economic and/or financial feasibility as a check on more detailed quotes. Besides that, cost-capacity connections, base device price and factored cost examination are generally used techniques of producing a Preliminary Estimate.

Mofti Bin Marjuki (2006) suggests that both building owners and designers must acknowledge an expected cost of the project at bid prize in the first planning stages. Initial Estimates are used in the early planning phases of the proposed project to match an owner's needs, portrayed as written programmatic requirements, with budget constraints in order to determine its overall opportunity, size and quality goals. The Work Breakdown Composition is a systems-based format which suggested at this stage, where elements of the building will be the method of categorisation.

As recommend by Mofti Bin Marjuki (2006), estimate comparisons at this time are especially valuable in analyzing the feasibility of proper alternatives being thought to suit current and projected space requirements. A design contingency is normally included between 10-15% as the design is not fully developed at this time. Issues which have to be identified at this stage include method of procurement being considered, location market factors, specific site constraints or problems, proposed phasing ideas, start and finish dates.

Hira N. Ahuja & Walter J. Campbell (1998) status, this kind of estimate is of most significant benefit to the dog owner. Budget provisions, job cost summary, information on cash moves, percent earnings before and after duty, even evaluation, payback period required yet others. Besides that, many Companies use the Preliminary Estimation for projecting their long-term labours, gadgets and materials necessity. In addition, Contractors also utilize it for verifying their bids.

2. 1. 5. 2 Intermediate Estimates

As mentioned by Mofti Bin Marjuki (2006), Intermediate Estimates can be utilized at various phases of task design development to keep accountability for preliminary budget projections, as Intermediate Estimates means of analyzing competing alternative construction assemblies, systems and materials. On large construction projects it is common practice for an owner to hire a construction director or professional Estimator to regularly update project quotes and provide reviews or comment on budget impacts of decisions on major design elements. The risk examination should be updated and a contingency factor is calculated based on the results of the chance analysis. The design contingency can typically be reduced by mitigate the risk and design advances.

2. 1. 5. 3 Last Estimates

According to Mofti Bin Marjuki (2006), a detailed pre-bid estimation can prepare yourself when the design is completed, during this stage the design contingency would typically be reduced to zero. Hira N. Ahuja & Walter J. Campbell (1998) talk about, this kind of estimation is the most comprehensive, exhaustive and appropriate method available of estimating costs of a project. It entails not only a study of what is to be done, but how and because of this is best made by an experienced Service provider for the intended purpose of submitting a sensitive or by a person who has control of the development procedure.

Mofti Bin Marjuki (2006) state governments, in case there be risk encompassing the construction job, which would make it advisable to still include a small bidding contingency. If Work Breakdown Framework is organised, it allows for an evaluation of the final estimation with the bids received and can aid in negotiating with the lowest bidder. Furthermore, having the last estimation and bids in the same format facilitates allow for developing cost databases and be found in planning future tasks.

2. 1. 5. 4 Unit of accommodation method

As described by Mofti Bin Marjuki (2006), the machine of primary estimating contains choosing a standard unit of accommodation and times with an appropriate cost per device. This technique relies upon the simple fact that there is normally a detailed relationship between the price of construction task and the number of functional devices it accommodates. This method is very helpful on those situations where the Customer requires a initial estimate based after little more information than the items of accommodation. Martin Brook (2008) advises that adjustment of the cost shall take thought of specific assignments, different locations, varying with earth conditions and others.

As Timber (1974) cited by Mofti Bin Marjuki (2006), the machine of accommodation method is keeping track of the number of units which is extremely simple, but extensive experience is necessary in order to choose a proper rate. Rate can be obtained by the careful evaluation of a number of recently completed construction tasks with an identical type, size and structure. For illustrations: choosing the standard device like seats per cinema, foundation per hospital, stand per school to get the estimation cost of project. Based on the total unit of practical proposed building, the estimate cost of a building can be derived from past task of the same functions.

2. 1. 5. 5 Superficial Method

As described by Mofti Bin Marjuki (2006), Superficial Method is the most frequent method used for estimating purposes. The estimating method is easy to calculate and the costs are expressed in a way fairly readily known by an average building. The regions of each one of the floors are assessed and then multiple with an expense per square meter. Corresponding to Martin Brook (2008), a proposed building is assessed at each floor level of the project; no deductions are created for internal surfaces, staircase or elevates zones.

The guidelines of way of measuring for the Superficial Method of a building were identified by the Royal Institution of Chartered Surveyor, United Kingdom. The ground areas are calculated from the inner sizes of the building to be able to provide comparability between various schemes. It is suggested to separate the ground areas and apply different device rates. It is appropriate for tasks such as school and enclosure where storey levels of task are constant. Besides that, Mofti Bin Marjuki (2006) says that factors such as storey height of the project and the program shape are particularly important when deciding upon the speed to be used for the job.

In the other hands, Martin Brook (2008) suggests that a individual assessment should be produced for external works, demolitions, incoming services and drainage and which is often significantly different for similar complexes. Adjustment can be produced according to location and inflation, but specification adjustments are a lot more difficult to calculate, as required subjective judgments made for size, shape, volume of storeys, surface condition and standard of coatings. Unesco-Nigeria Tech &Vocational Education (2009) also agreed, this technique should take consideration in changes in plan shape or total level of the building which also have a cost impact. F:\Research\Untitled. png

Figure 2. 1 Superficial Method

2. 1. 5. 6 Cube Method

According to Allan Ashworth (2004), the cube method of approximate estimating was utilized extensively at the inception of the previous century but has since been replacing because of its inherent down sides. Unesco-Nigeria Technical &Vocational Education (2009) also state, this technique was used extensively between the World Conflict I and World Warfare II. Nonetheless it is not in keeping used anymore. Guidelines of must as defined by Royal Institute of British Architect (RIBA) are exterior plan area of a building is multiply by a level to get the volume of the building. The level is measured from the very best of concrete base to half way of the roof covering if pitched or even to 600mm above the rooftop if flat as proved in Physique 2. 2.

Mofti Bin Marjuki (2006) suggests, in the event, the roof space was to be occupied then your height on pitched roof covering building was three-quarters way in the roofing. The allowances for even, pitched roofs and the dimension to foundation depth are all very arbitrary. Additional allowances are required to be produced for projections such as porches, chimney stacks and others.

According to Unesco-Nigeria Complex &Vocational Education (2009), this technique is useful in estimating the price tag on hvac. Within the other hand, drawback of this method is the building cost could associate better in floor area than with quantity. Allan Ashworth (2004) mentions, the use of cube rate from prior projects does not operate quite as well as in the superficial area estimating method. Additionally it is now known that building cost correlates better with superficial floor areas than with quantities.

Mofti Bin Marjuki (2006) mentions, the downside of this method is that it does not give any sign to your client regarding the amount of usable floor area, it takes no bill of storey or plan form and it produces a large cubic quantity that will raise the probability of further inaccuracy in this estimating method.

Figure 2. 2 Cube Method2. 1. 5. 7 Storey Enclosure MethodF:\Research\Untitled1. png

Allan Ashworth (2004) expresses, Storey Enclosure Method would perform better in conditions of reliability than the other single price methods. The weightings applied are highly subjective and are unlikely to apply similarly to every building. Besides, the quantification does not easily relate with the Client's accommodation requirements and as such embodies the same deficiencies as the cube method. Furthermore, the restrictions of the single-rate approach to estimating were very much apparent, however ingeniously it could be applied. Appropriate rates utilizing in this technique are extremely difficult to derive, which really is a further drawback for experts.

2. 1. 5. 8 Approximate Quantities

As suggested with a. Ashworth & R. M. Skitmore that Approximate Amounts method allows the calculation of cost based on the basis of an individual variable explaining the proposed building task. This technique is favoured by both the Number Surveyor for pre-contract estimating and the Contractor's Estimator when costs of quantities aren't provided.

According to Mofti Bin Marjuki (2006) and Allan Ashworth (2004), this technique provides a thorough and reliable method of approximate estimating but it can involve additional time and effort than the estimating methods recently explained. No particular guidelines of measurement exist and the amalgamated items result from the experience of every individual in practice. Somewhat more information is needed from the designed if this method is to be applied adequately used. Therefore this technique is suitable for a far more advanced design stage. Besides, Allan Ashworth (2004) advises, the Quantity Surveyor shall fully examine the complete document to determine how it has been priced, particularly according of the preliminaries items and or any discrepancies in rates.

Besides that, Unesco-Nigeria Complex &Vocational Education (2009) emphasise, a great deal of skills are required in selecting a proper rate. Rate can be acquired by careful research of the amount of recently completed task of similar types, size and constructional method. This method is easy and quick to use as advantages, the disadvantages of this method is lack of precision and required to express cost within a range of prices.

2. 1. 5. 9 Cost Planning

Mofti Bin Marjuki (2006) states that first period of cost planning can be employed to determine the approximate cost of a engineering project. This Cost Planning method analyses the price tag on the construction project based on an element basis which frequently attempting to use the price analyses from other similar development projects. This technique provides cost advice during the design process and offering the Client with less expensive for money.

Mofti Bin Marjuki (2006) mentions so it also continues the designer totally informed of all cost implications to the look in marriage with an approved approximate estimation and likely realistic tender sum. Full cost planning services would also combine with the characteristics of life circuit costing. Two alternative kinds of cost planning have been developed although in practice a combination of both cost planning forms are occasionally used.

The first form of cost planning is recognized as Elemental Cost Planning where in fact the job must be designed in a overall framework of a cost limit. It is often known as 'creating to a cost'. In practice it is appropriate or appropriate to general population sector projects which often include some form cost limit. The choice form is recognized as Comparative Cost Planning where substitute designed can be examined within an economical context, this method is referred to as "costing a design" (Mofti Bin Marjuki, 2006).

2. 1. 5. 10 Analytical Estimating

According to A. Ashworth & R. M. Skitmore, Analytical Estimating is typically used by Companies' Estimators to look for the specific rates for measured work items in a Bill of Quantities. Every individual measured item is analysed individually into its constituent elements of labour, materials and vegetable. Each part is cost by an in depth examination using outputs, gang sizes, material volumes and the flower hour required. Particular emphasis of this method is put upon such project factors as type, size, location, condition and heights as being important factors impacting on the Contractor's costs. Mofti Bin Marjuki (2006) states that alternative analytical methods may calculate cost based on the basis of operations rather than individual charge items.

2. 1. 5. 11 Cost Model

According to Mofti Bin Marjuki (2006), cost models will be the latest way of forecasting the estimation cost of a proposal building project; although these were first "discovered" through the early 1970, there is only scant proof their used in the practice. Besid


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