Contractors’ Perspectives towards Factors Affecting Cost Estimation in Palestine

Abstract

Construction projects have certain characteristics that determine the appropriate actions to estimate their costs accurately. A key factor for a successful project is the preparation of an accurate estimate, which can influence factors ranging from project feasibility to profitability. The success or failure of a project is dependent on the accuracy of several estimates throughout the course of the project. Construction estimating is the compilation and analysis of many items that influence and contribute to the cost of a project. The purpose of this paper is to identify the essential factors related to cost estimation and to show the degree of importance of these factors in cost estimation of construction projects in the Gaza strip from contractors’ perspective. The results of analyzing fifty one factors considered in a questionnaire survey concluded that the main factors are: location of the project, segmentation of the Gaza strip and limitation of movements between areas, political situation and closure of the Gaza strip, financial status of the owner and increase in unit costs of construction materials. It is recommended to review cost estimation practice in terms of education and training required for those responsible for the estimating process. Contracting companies of various classifications are advised to provide training programs for their estimators to gain experience in cost estimation.