An appraisal of the factors affecting production of cost estimate for electrical services in Nigeria

Purpose - Electrical services contribute a substantial percentage of total construction cost of any particular project. It is essential for estimators to have a detailed knowledge of the factors that affect the incorporation of electrical services cost into the overall building project cost. The overall aim of the study that formed the basis for this paper therefore was to investigate the factors that influence cost estimating of electrical services project. Design/ methodology/ approach - The study was carried out based on questionnaire survey of 225 organizations that are involved in cost estimating of electrical services projects in Nigeria. A total of 158 questionnaires out of the 163 retrieved were appropriate for analysis. A list of factors potentially influencing cost estimate for electrical services was identified for the respondents to rate. The data collected were analyzed using factor analysis based on principal component analysis and varimax orthogonal rotation. Findings - The results shows that the factors affecting production of cost estimate for electrical services could be grouped into four principal factors: the most important factor grouping being estimator competence followed by project technicality, economic requirements and contract requirements. Practical implications - Many factors are considered by practitioners in the preparation of cost estimate for electrical work in construction project development. The paper has listed about 23 factors that are relevant. However, this paper has shown that four principal factors need to be considered as they explain 64 percent of the factors affect cost estimate production for building project's electrical service works. Originality/value - Review of literature has shown that there is limited empirical research on the factors influencing cost estimate production for electrical services work. The paper has produced an empirical research on the crucial factors that must be taken into account when producing cost estimate for the electrical service projects.