EVALUATION OF COST ESTIMATION IN TENDER PREPARATION IN THE CONSTRUCTION INDUSTRY IN OSUN STATE NIGERIA.

Abstract

The study identified some of the factors affecting cost estimation in construction industry in Osun state and assessed the effect of cost estimation factors in tender preparation in construction industry in Osun state using ten construction firms as a case study. The study attempted finding answers to research questions by using survey design and random sampling technique to collect data from 80 respondents with the aid of 30 - item structured questionnaire and personal interview. The respondents comprised of engineers, architect, surveyors and other staffs of the ten (10) construction firms. Data for this study were analyzed using descriptive statistics and inferential statistic in which was chi square was used to test the hypothesis posed for the research at 0.01 significant level. The effect of cost estimation in tender preparation shows that chi square value is 18.687 which is greater than the table value of 0.01 and which implies that the null hypothesis should be rejected and the alternate hypothesis is retained. Hence it can be concluded that cost estimation factors has significant effect on tender preparation in construction industry in Osun state and also since the value of the significant level is 0.000 which is lesser than 0.001. The study recommended that the construction firms should monitor the performance of their estimates in terms of accuracy, hire a qualified technical staff to obtain accurate estimates and they should make sure that clear identification of project requirement before estimating process.