Building Cost Management

Building Cost Management

Abstract

Lack of in- depth knowledge of whole life going recrimination in structure design cost operation has over the times fueled the adding bias towards the volume surveyors estimate. Whole life going constitutes cost operation tool that enhances better understanding of the cost recrimination of structure design over its life cycle. This study delved the use of whole life going in the Nigerian construction assiduity with focus in Imo state. The objects were to examine the benefits, position of use, and walls associated with the use of whole life going in erecting cost operation. The study attained qualitative ranked perception of 72 volume surveyors in Imo state using structured questionnaires. Data analysis involved substantially descriptive statistics. The findings of the study revealed that, the implicit benefits of whole life going are optimizing total cost of power, comparing colorful options at structure position and allowing more accurate soothsaying of unborn conservation budget. The disquisition into walls affecting whole life going perpetration stressed lack of standard methodology as one of the major walls to WLC. The study concludes that, the use of whole life going by volume surveyors is low; and is largely determined by size of design, size of organisation and times of experience. The study thus recommends the need to probe why essential walls persists in the global construction assiduity.

Chapter One

Preface

Background to the Study

Approaches to the total cost operation of construction workshop are now changing fleetly. The change imposes the necessity to change how the cost of construction work is conceived across sphere. The term cost operation connotes principally two affiliated conditioning in going that is, cost soothsaying and cost control( Ashworth, Hogg and Higgs, 2013). This understanding suggests that, to be suitable to ply cost control barometers, the estimate of the cost recrimination must be known over defined stages in the design development cycle. Cost operation of structures were historically aimed at minimising the original construction costs alone. Opoku( 2013) observed that the usual practice in the construction assiduity was to accept the cheapest original cost, and this trend tend to discourage whole life cost consideration. still, during the 1930’s, numerous erecting druggies began to discover that the handling costs of the structures similar as conservation, energy, operation cost, began to impact significantly on the occupier’s budget( Opoku, 2011).

Unfortunately, the smallest price constantly doesn’t affect in the smallest all- in cost or total cost of accession, operation and disposal. The rejuvenescence of concern for energy consumed by structures and the associated high conservation cost have stressed the need to review whole life going in erecting cost operation. According to Bello, Ibrahim and Kolo( 2013), structures have long design life- spans, as a result, enterprises dealing with the whole life of the structure deserves considerate attention.

The operation of whole life going ( WLC) fashion is extensively rehearsed in other diligence; still, its use in the construction assiduity is borderline. The WLC approach encourages decision- making that takes account of the original capital cost, running cost, conservation cost, refurbishment conditions and disposal cost. still, recent government enterprise and the growing demand from the private sector for lesser pungency in the handling costs of structures have increased the need to dissect life cycle costs from foremost stage of a design. Several reports, including those of “ Constructing the platoon ”( Latham 1994) and “ redefining Construction ”( Egan 1998) have all explosively recommended the need to consider the long- term costs and profitable performance of constructed means. The construction assiduity is now honored as an important contributor to sustainable development; that’s achieving profitable and social objects while minimizing adverse environmental impacts( Addis and Talbot 2001). It’s thus essential that, the conception of whole life value is used as a criterion for procurement in the construction assiduity. The Egan report recommended that design should encompass whole life costs including cost of energy consumption and conservation costs( Egan 1998). still, little has been written on the extent of operation of WLC in the Nigerian construction assiduity. According to Chirugwui etal.( 2010) and Olubodun etal.( 2010), the generalities of whole life going must be well understood to enhance wide operation. This study thus examined the depth of whole life going knowledge in structure design cost operation in the Nigerian construction assiduity in Akwa Ibom State.

Statement of Research Problem

Schade( 2007) stated that WLC had earned acceptance in the construction assiduity, but that real- world operation of it had retarded. Schade’s opinion is also buttressed by Aouad etal.,( 2003) who define it as a system that ‘ persists to suffer in oblivion ’; and Bakis etal.( 2003) further assert that WLC has attained confined use so far in malignancy of its significance. still, studies by El- Haram etal.( 2002) believe that the use of total WLC within the construction assiduity is fleetly snowballing while Lindholm and Suomala,( 2004) stated that the perpetration of WLC thinking has been sluggish despite the important entered by the public sector in numerous places.

The chops and knowledge of whole life going is encyclopedically conceded to be low. This is largely attributed tonon-application of the tool in design decision- making in the construction assiduity( Opoku, 2013). According to Udeaja, Babatunde and Ekundayo(n.d), low operation is attributed to lack of customer’s understanding and this factors is considered significant inhibiting factor facing the relinquishment of whole life going in the construction assiduity.

A study by Bello, Ibrahim and Kolo( 2013) conducted in Kaduna state revealed that adviser volume surveyors are more knowledgeable with whole life going than volume surveyors in customer organisations. The relative knowledge among adviser volume surveyors notwithstanding, the need to suppose through the design life cycle in terms of cost recrimination of design opinions is thus long overdue( Oduyemi, 2016). According to Oduyemi( 2016), there’s limited authoritative investment decision and cost control frame over the design life cycle( cradle to grave). The need for affiliated frame is more important now than ever due to growing motivation for the integration of sustainability enterprises in construction. opinions towards achieving sustainable erected terrain is so important rested on its cost counteraccusations ; hence the imperative of whole life cycle going in the construction assiduity. According to Edwards( 2000), growing apprehensions with respects to the long term environmental effect of structures have impelled professionals to take on further all- inclusive approaches and to consider further strictly the costs incurred over the entire life cycle, from cradle to grave.

The anteceding positions mean that construction stakeholders tend to place significant emphasis on the expenditure on operation and conservation and disposal cost of erected means( Dhillion, 2013). A study by Langdon( 2007) revealed that£ 1 spend on construction means£ 50 spent on conservation and£ 200 spent on functional costs. This follows the traditional intuitive rate- grounded criteria of 150200. Whilst these criteria have gained wide operation, it’s now more imperative to understand a further comprehensive and scientific- grounded mark for understanding the cost of erected means over their life cycle.

The traditional system of estimating construction systems concentrates and emphasises largely on original capital costs. Still, with operating costs counting for over to seventy percent of the whole cost of structures over its whole life cycle( Boussabaine and Kirkham, 2008), this mania( preoccupation) andpre-occupation with original capital charges have redounded in designs that fail to present the customer with stylish value for plutocrat in the long term.

Exploration Questions

The following are set- out to guide the study

· What are the benefits of espousing whole life going in erecting design cost operation?

· What’s the position of use of whole life going in erecting design cost operation?

· What are the factors affecting the use of whole life going for erecting design cost operation?

Aim and objects of the Study

The study aims to assess the use of whole life cycle going as a design tool in erecting cost operation with a view to ameliorate operation. To achieve this end, the objects are to

· determine the benefits of whole life going in erecting design cost operation;

· estimate position of use of whole life going ways in structure design cost operation; and

· Examine factors impacting the use of whole life going in erecting design cost operation.

Significance of the Study

Ferry and Flanagan( 1991) argued that operation of Whole life cost, in any terrain, exists on two situations. The lower position of whole life going is represented as a ‘ Management Tool ’ to prop the decision making process. The advanced position of whole life going is nominated the ‘ Management System ’ whose nonstop operation dictates that responsibility for asset operation should be retained. In general terms, they argue that during the operation of a typical design, all stages, except design inauguration, have a implicit use for Whole Life Cost.

The outgrowth and knowledge of Whole Life Cost can thus be used as a operation tool to identify the factual costs incurred in operating an asset. The primary ideal is to relate running costs and performance data. therefore, it could be useful for guests who want to estimate the factual handling costs of the structure and also for budgeting purposes.

Compass of the Study

The study is limited to assessing the use of whole life going in erecting design cost operation in Akwa Ibom state. The study will be limited to Uyo Municipal grounded on the need to collect cost data from construction professionals( Cost directors) whose business and enterprises are located substantially in Uyo. The study sample comprised substantially of volume surveyors largely due to the subject of the study which environment deals with construction cost operation.

Organisation of the Work

The work is organized into the Chapters. Chapter One is the preface, and introduces the background to the study, statement of exploration problems and identify the end, objects, suppositions and compass of the study. Chapter Two is the Literature Review and this section highlights identification of design variables impacting whole life cost of structure systems; determining the position of use of whole life going ways in structure design choice selection; examining the factors impacting the use of whole life going in erecting design choices; and establishing the nexus between the design variables and whole life cycle cost of structure systems.