An investigation of Innacurate cost estimation of construction projects in Kampala.
Abstract
This research study is aimed at investigating inaccurate cost estimation of construction projects in Kampala. The study focused on three objectives; to investigate the causes of inaccurate cost estimation of construction projects in Kampala, to determine the effects of inaccurate cost estimation of inaccurate cost estimation in Kampala, to determine the mitigation measures of inaccurate cost estimation of construction projects in Kampala. Literature was reviewed regarding cost, cost estimation, types of cost estimation, types of cost estimates, types of costs, factors affecting the accuracy of cost estimates, the effects of inaccurate cost estimation and mitigation measures to curb inaccurate cost estimation. A structured five point Likert scale questionnaire which had both open and closed questions were used to obtain primary data from a sample of 81 contractors and 48 professional Quantity surveyors. The questionnaires were answered by and returned by 61 contractors and 19 quantity surveyors. Data generated was analysed using statistical techniques of frequency, mean, mode and standard deviation. The Relative index techniques were used to rank Likert scales. Information was presented using tables, bar graphs and pie charts. The analyses were conducted using the Excel computer software. Results showed that there was a need for all construction contractors and quantity surveyors in Uganda to consider the results revealed by this research in order to have a better understanding when dealing with cost estimation in construction industry, there was also the need to consider the mitigation measures provided within this research since they can lead to the success of the construction sector. The use of qualified estimating personnel throughout the life of the project from budget preparation, design, and tendering, post-tender review and construction phases and also one has to include sufficient contingency to address market volatility, timing of construction, and other exclusions in the estimate.