Labour Market and its Effects on Early Stage Building Construction Estimate

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EARLY STAGE BUILDING CONSTRUCTION ESTIMATE
A Research Paper on Labour Market By
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INTRODUCTION
An early cost estimate is the estimation of the cost during the early stages of building projects.
This stage is characterized by high uncertainty degree due to the limited available information to
determine an accurate estimation of costs or having no or little variation from the exact costs to
be uncured during the implementation stage of the construction project. The exactness of the
initial phase cost estimation resulting from the determination of the initial cost assessment is
significant to the progress of the project from one stage to another. This report focuses on the
effects of the labour market on the accuracy of the early stage building cost estimation by
majorly focusing on the labour availability, labour performance, and labour prices.
Labour Performance
In regards to the performance of the sub-contractors and sub-contractors, the skills of
communication should normally be exercised to prevent conflicts between the other groups and
the contractor. Communication between the contractor and other groups may be regarding the
selection of materials or the best process to use to achieve the required objective. Lack of proper
coordination may lead to misunderstanding between the contractor and other parties, poor
selection of construction materials, and poor management. In case there is no suspension during
the project construction process, there will be the failure of some factors such as project schedule
since a lot of time will be spent consulting and making collective decisions (Arthur, 2012).
In case the contractor does not have the necessary skills and experience for the construction
project, those will slow down the process of construction as well as the process of making
decisions. The inexperienced contractor is likely to use a lot of time evaluating on the impacts of
a particular decision have on the performance of the construction process before making the final

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decision. Some of the labour performance factors that affect the accuracy of building cost
estimation include inadequate contractor experience, low speed of decision making, poor site
management and decision making by the contractor, and lack of communication among the
parties involved (Holm, 2012). The table below shows the rank of different factors of labour
performance:
Table 1: Labour performance ranks (the Moselle, 2016)
In case a contractor maintains a steady communication channel as well as having necessary skills
and experience there will no time delay and the project will be completed on time hence
preventing unnecessary costs that may be incurred by the prolonged project construction process.
This means that the project will be completed at a timeframe schedule and the cost estimated will
not be exceeded (Ogershok, 2012).