The development of location adjustment factors for construction price estimating in Nigeria

Abstract

English: This article explored the use of Location Factors (LFs) as an empirical tool for converting construction price at one location to price at another location. The objective was to generate LFs for selected locations to provoke interest in the concept. Firstly, locational factors influencing construction price were identified from literature. Then, based on a hypothetical project and using Lagos, Ibadan, Port Harcourt and Abuja as pilot locations (with Lagos as the base location), LFs were calculated for the four locations. The LFs obtained were validated using tender prices for the primary school projects of the Universal Basic Education Programme financed by the Federal Government of Nigeria. The results showed that tender price levels were higher in Abuja and Port Harcourt and lower in Ibadan, compared to Lagos (the base location) on the basis of their location differences. Although the results underestimated the actual values of the LFs by only 8%, which is well within the acceptable level of early price estimating accuracy for quantity surveyors, the insufficient and scanty data used limits their statistical reliability. It is hoped that more detailed studies, based on more locations and using more project samples, would be carried in the near future to further the development of LFs for construction price estimating in Nigeria.

Afrikaans: Hierdie artikel ondersoek die gebruik van Plek Faktore (PF) as ’n empiriese hulpmiddel vir die oorskakeling van konstruksiepryse vanaf een plek na prys op ’n ander plek. Die oogmerk was om PF’s vir geselekteerde plekke te genereer om sodoende ’n belangstelling in die konsep aan te wakker. Eerstens is plekfaktore wat konstruksiepryse beïnvloed deur middel van ’n literatuurstudie geïdentifiseer. Daarna, gebasseer op ’n hipotetiese projek is Lagos, Ibadan, Port Harcourt en Abuja (met Lagos as die basis plek) as loots plekke gebruik om PF’s vir die vier plekke te bereken. Die verkrygde PF’s is waardes toegevoeg deur tenderpryse te gebruik vir skoolprojekte van die Universal Basic Education Programme wat deur die federale regering van Nigerië gefinansier is. Die resultate het gewys dat tenderprysvlakke hoër was in Abuja en Port Harcourt en laer in Ibadan, vergelykend met Lagos (die basis plek) op die basis van hulle plekverskille. Alhoewel die resultate wys dat die ware waardes van die PF’s met slegs 8% onderskat is, wat goed is in vergeleke met die aanvaarbare vlak van voorafprysskatingsakkuraatheid vir bourekenaars, het die onvoldoende en geringe data wat gebruik is die statistiese betroubaarheid daarvan verminder. Daar word gehoop, dat meer uitgebreide studies, gebaseer op meer plekke en deur gebruik van meer projekvoorbeelde, in die toekoms uitgevoer sal word vir die ontwikkeling van PF’s vir konstruksieprysskatings in Nigerië.