Estimating and purchasing cost control Essay Example | Topics and Well Written Essays - 2500 words

Estimating and purchasing cost control - Essay Example In this approach, the design package is reviewed and fully comprehended followed by the performance of a quantity survey of the scope of the project in question. In case little or no design and plan information is available, the Order-of-Magnitude Estimates approach is highly recommended. However, it is imperative that the contractor ensures he/she has all the requisite information to ensure accurate estimation of the cost of a construction project. This paper explores the type of information useful in the estimation of the cost of redeveloping a storey building near a river and the implications of the absence of competition in the cost estimation and the bidding processes for the contract. Information for Construction Project Cost Estimation There are several factors on which the successful completion, accessibility and utilization of a construction project hinges. These factors include the level or quality of engineering work that goes into a project and the survival of the contrac ting business that accompanies a project. Also, the market competition and the ability of a company and its contract management are equally important to the success of construction projects (Garold & Trost, 2001). More affected by the above factors are construction projects and redevelopment projects along water bodies such as rivers and lakes. It is thus of the essence that construction contractors and managers look into these various factors so that they strategically compete and win tenders by accurately estimating and mitigating project risks and costs. Importantly, such a strategic planning and estimation of project risks and costs would be quite integral to the quality of construction projects, more so with regard to project monitoring and control for the realization of project goals. In this strategic cost estimation and risk analysis, contract manager should consider the current national and international contract and construction laws, regulations, design documents, technic al standards and engineering safety requirements (Garold & Trost, 2001). The Case Study It is quite apparent that construction firms and contract managers involved in construction projects along, next or adjacent to rivers are exposed to a rather wide range of construction risks especially form their work environment. Besides the primary risk of flooding, other construction risks in construction projects near water bodies include site drainage, plant operations, bad ground condition, site accessibility and tidal impact. However, it should be acknowledged that even these construction projects will definitely have far reaching influences on these water bodies. Examples of the effects of construction projects on rivers that construction projects and managers should be conversant with are reduced water levels, change in local water body regime, navigational effects, environmental pollution and scour on siltation. From these risks and effects, it is quite clear that projects and contract managers should arm themselves with the right skills and competencies to help them identify, estimate and manage risks and the associated costs. One way of