المؤتمر الهندسي الدولي الثاني للإعمار والتنمية الجامعة الإسلامية- غزة The 2 nd Inter. Engineering Conference on Construction and Development Islamic University - Gaza Cost Estimating Practices of Gaza Strip Construction Contractors Yaser Al-Shanti Dr. Kamalain Sha'ath

Research Aim The aim of this research is to explore the existing local practices in cost estimate for the building construction projects in Gaza Strip. The aim of this research is to explore the existing local practices in cost estimate for the building construction projects in Gaza Strip.

Research Objectives 1. To investigate the local practice of cost estimating in contracting companies in Gaza Strip. 2. To explore the influence of the Israeli closure on material prices, materials availability, and projects cost.

Research Objectives (Continue) 3. To explore the main obstacles which affect the cost estimation process. To evaluate the extent of using computerization in estimating. To evaluate the extent of using computerization in estimating.

The questionnaire consists of three sections 1. Company profile 2. Estimating and bid study item estimating techniques,item estimating techniques, database,database, indirect costs,indirect costs, the effects of closure on project cost,the effects of closure on project cost, the accuracy of bid estimates,the accuracy of bid estimates, the risk factor.the risk factor. 3. Computer aided estimating.

Field Study Population & Sample Gaza Strip Construction Contractors Gaza Strip Construction Contractors Data Analysis Statistical Package for Social Sciences (SPSS) is used in data analysis. Statistical Package for Social Sciences (SPSS) is used in data analysis. Total Third Class Second Class First Class Sample Respondents

Survey Results & Discussions Estimating Method Distribution

Pricing the Items 82.5% of contracting companies 82.5% of contracting companies usually use detailed analysis for usually use detailed analysis for all components of single item all components of single item (material, labor, plant, and (material, labor, plant, and subcontractor). subcontractor).

Database Most respondents (92.5%) Most respondents (92.5%) agree that developing materials database is materials database is necessary for the estimating necessary for the estimating process. process.

Indirect Costs The majority of respondents (82.5%) calculate the site overheads in details as specified in bid documents, while the rest calculate the site overheads as a percentage of the total direct cost of the project. The majority of respondents (82.5%) calculate the site overheads in details as specified in bid documents, while the rest calculate the site overheads as a percentage of the total direct cost of the project.

Effect of Security Closure on Construction Cost All respondents (100%) agree All respondents (100%) agree that the closure has a big that the closure has a big effect on the prices of the basic effect on the prices of the basic materials such as cement and materials such as cement and aggregate. aggregate.

Factors that Reduce the Accuracy of Bid Estimation The limited time allowed for estimating process. The limited time allowed for estimating process. Unclear project plans. Unclear project plans. The estimating overload in the company. The estimating overload in the company.

Risk Factor Almost all respondents (97.5%) believe that the closure has very high effect on determining the risk factor. Almost all respondents (97.5%) believe that the closure has very high effect on determining the risk factor. Increasing material prices is ranked second Increasing material prices is ranked second

Using Computer Applications in Different Areas Christofferson (1999) (1999)USALau (2000)New-Zealand Samadony & Al-Labbad(1997) Egypt EgyptAl-Shanti(2003) Gaza Strip (This research) CostEstimatingTool % of Use UsingSoftware In Cost Estimate

The obstacles which are affecting on the usage of Cost Estimate Software Shortage of user friendly CES. Shortage of user friendly CES. Shortage of qualified persons in using CES. Shortage of qualified persons in using CES.

Factors that Reduce the Accuracy of Bid Estimation The limited time allowed for estimating process. The limited time allowed for estimating process. Unclear project plans. Unclear project plans.

Conclusions The results confirm that the most used tool is using detailed analysis in estimating bid items. On the other hand, the least used tool is using of same item rate from previous projects The results confirm that the most used tool is using detailed analysis in estimating bid items. On the other hand, the least used tool is using of same item rate from previous projects

Conclusions (continue) All surveyed contractors believe that the Israeli closure on Gaza Strip is considered the main element that affects risk factor. All surveyed contractors believe that the Israeli closure on Gaza Strip is considered the main element that affects risk factor.

Conclusions (continue) Most of contracting companies are still estimating their bids manually. Shortage of suitable estimating software is considered the main obstacle for estimating computerization, Most of contracting companies are still estimating their bids manually. Shortage of suitable estimating software is considered the main obstacle for estimating computerization, another important factor is lack of availability another important factor is lack of availability of qualified persons in using computerized estimating packages of qualified persons in using computerized estimating packages

Conclusions (continue) The main advantages that can be obtained from using estimating software according to contractors ’ opinions are: Building database. Building database. Building archive for previous projects. Building archive for previous projects. Simplicity of updating the prices. Simplicity of updating the prices. Fast estimating and saving time. Fast estimating and saving time. Minimizing errors and human omission. Minimizing errors and human omission.

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