Factors Affecting Accuracy of Pre-tender Cost Estimate in Gaza Strip

Abstract

Construction industry is considered an important sector for the development in Gaza Strip. Estimating process is an important element of the construction industry. Pre-tender cost estimating of construction projects requires extensive knowledge and expertise. The aim of this research is to identify and evaluate the main factors affecting accuracy of pre-tender cost estimate in Gaza Strip from both clients' and consultants' point of views. This research was prepared during Gaza Strip faced since 2007 a bad political and economical situations due to the closure and blockade. These circumstances were badly affect in construction industry in Gaza Strip due to the shortage of basic materials such as cement and aggregate. This research has been conducted through literature reviews of the topic related to the cost estimating process, followed by a field survey. The questionnaire included sixty four factors, categorized into five groups. Seventy eight questionnaires were distributed as follows: fifty to clients, and twenty eight to consultants. Seventy questionnaires were received as follows: forty six from clients, and twenty four from consultants as respondents. The results of analyzing 64 factors considered in the questionnaire conclude that the main factors affecting accuracy of pre-tender cost estimate are: material (prices /availability /supply /quality /imports ), closure and blockade, project team's experience in the construction type, the experience and skill level of the consultant, clear and detail drawings and specifications, quality of information and flow requirements, completeness of cost information, accuracy and reliability of cost information, currency exchange fluctuation, and finally clear contract conditions. The study recommended both clients and consultants to give more attention to cost estimating process to manage their projects in good way. They should monitor the performance of their estimates in terms of accuracy and hire a qualified technical staff in order to obtained the accurate estimate. Both clients and consultants are requested to keep computerized historical data of finished projects and to pay more attention to training needs of their employees in order to improve their performance in cost estimate. The study also recommended the government to adopt material prices list to enable estimators, if there is a change in the costs of certain items, to come up with the best estimates.