Project cost estimation techniques used by most emerging building contractors of South Africa
Abstract
English: This article investigates newly emerging building contractors of South Africa
who are expected to survive by projects obtained mainly through tendering.
Some of these contractors fail even before obtaining the first tender while many
fail in the first three years of their formation.
The research population used was restricted to formally registered businesses
found at the time in the register of the Construction Industry Development
Board (cidb). The population of 792 businesses, registered as Grade 5 class,
consisted of five distinct types of contractors, general builders, civil engineers,
electricians, mechanical builders and other sundry players. A sample of 160
was used which is approximately 20% of the population. The literature was
reviewed on tendering and related aspects: competitive bidding, estimating
activities, pricing a tender, and evaluating a tender. The research tool used was
a questionnaire, which investigated biographical and company information,
proposal management and estimation, programming and scheduling,
estimating strategies, understanding of basic cost concepts, project risk
management, pre-tender internal price evaluation, and tender submission.
Findings of this research revealed that South African emerging contractors
showed inadequacies and variations in cost concepts, scheduling tools, risk
management and tender price estimation. They also lacked essential resources
and skills for competing for tenders. Emerging contractors are advised to
use consultants to assist them and/or subcontract to established contractors
with a reputable history. They should use these opportunities to learn superior
estimation methods (which are also more complex) and apply them to improve
their own tendering practices. Afrikaans: moet oorleef op projekte wat hoofsaaklik deur tenders verkry word. Sommige
van hierdie kontrakteurs raak bankrot nog voordat hulle die eerste tender gekry
het, terwyl baie bankrot speel binne die eerste drie jaar van hul ontstaan.
Die navorsingspopulasie wat gebruik is, was beperk tot formeelgeregistreerde
besighede wat toe gevind kon word in die register van die Konstruksie Industrie
Ontwikkelingsraad (Construction Industry Development Board Die populasie
het bestaan uit 792 besighede, geregistreer as graad 5-klas, bestaande uit vyf
afsonderlike tipes kontrakteurs, algemene bouers, siviele ingenieurs, elektrisiëns,
meganiese bouers en diverse rolspelers. ‘n Monster van 160 is gebruik, wat
ongeveer 20% van die populasie is. Die literatuur is nagegaan oor om vir iets
te tender en verwante aspekte: mededingende bie, voorleggingsbestuur,
beramingsaktiwiteite, risikobestuur, prys van ‘n tender en evaluering van
‘n tender. Die navorsingsinstrument wat gebruik is, was ‘n vraelys wat die
biografiese en maatskappyinligting ondersoek het, naamlik voorleggingsbestuur
en beraming, programmering en skedulering, beramingstrategieë, begrip van
basiese kostekonsepte, projek risikobestuur, voor-tender interne prysevaluasie
en tendervoorlegging.
Bevindinge van hierdie navorsing het getoon dat Suid-Afrika se ontluikende
kontrakteurs ontoereikendhede en variasies in kostebegrippe, skeduleringsinstrumente,
risikobestuur en in tenderprysskatting toon. Hulle het ook ‘n
gebrek aan noodsaaklike hulpmiddele en die vermoëns om mee te ding vir
tenders. Daar word aanbeveel dat ontluikende kontrakteurs konsultante
moet gebruik om hulle by te staan en/of dat hulle moet subkontrakteer by
gevestigde kontrakteurs wat ‘n hoog aangeskrewe reputasie het. Hulle moet
hierdie geleenthede gebruik om uitmuntende beramingsmetodes (wat meer
ingewikkeld is) te leer en toe te pas om hul eie tenderpraktyke te verbeter.