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Challenges of Accurate Estimation in Preliminaries of Construction Projects

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Variation of price in the Bills of Quantities (BQ) has been the interest of many researches in the past decades and accuracy of tender remains as the prime objective. However the specific discussion on variation in price of preliminary items may be scarce and brief. Truly that the award of tender depending on the qualitative and quantitative (price of materials) performances through a tedious tender evaluation process by the Engineers or Quantity Surveyors and generally the variation in price of preliminaries is taken as the contractor’s risk. It is always high expectation of the client to obtain worth of investment and value for money from a construction project. The client entrusts the construction company to perform the required task and expect the project is within required Quality, Time and Cost. The client’s satisfaction is crucial in the construction industry. With the satisfaction of the client, the construction companies would be able to differentiate themselves from other competitors and indirectly create business sustainability in the long run. The client is in fact a buyer of the services provided. The potential issues leading to the variations are identified in this paper. Contractor’s common approach in the tender pricing for preliminaries is further discussed. Their understanding on the importance of preliminaries will result in accuracy of price and contributes value to the construction. This indirectly reduces the chance of construction to fail and ensures value for money of the construction project.
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Keywords: Accuracy; Cost; Estimates; Preliminaries; Quantities; Uncertainties; Variation

Document Type: Research Article

Affiliations: Faculty of Architecture, Planning and Surveying, Universiti Teknologi MARA (UiTM), Shah Alam

Publication date: April 1, 2017

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