Materials Market Analysis: Early Stage Building Cost Estimation

This report investigates the influence of the materials market on the accuracy of early-stage building cost estimation. It examines key factors such as material prices, availability, and quality, providing real-world examples from research findings and industrial cases. The report highlights how fluctuations in material prices, influenced by manufacturing costs and external factors like political stability, can significantly impact cost estimations. It also discusses the importance of material availability and the selection of sustainable materials to reduce costs. Furthermore, the report considers the impact of material quality on construction costs and the benefits of purchasing materials from a single supplier to negotiate better prices. The report also includes a comparison between elemental and trade cost breakdowns, using concrete works as an example, and concludes by emphasizing the critical role of the materials market in achieving accurate early-stage cost estimations. The report provides students with valuable insights into the complexities of construction cost estimation and the importance of considering various market factors.

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EARLY STAGE BUILDING CONSTRUCTION ESTIMATE
A Research Paper on Material Market By
Student’s Name
Name of the Professor
Institutional Affiliation
City/State
Year/Month/Day

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INTRODUCTION
This report involves the assessment on how the material market affects the accuracy of the early
stage building cost estimation by bringing the examples of the from both the research findings as
well as in industrial cases. The factors under the material market which affects the accuracy of
the early stage of building cost estimation include the material availability, material quality, and
material prices.
Material Prices
The prices of the materials are one of the most varying factors affecting the present market.
When the materials to be used in construction are purchased when the market prices are very
high, there will be an increase in the cost estimation of the early stages of construction (Arthur,
2012). The prices of materials are always fluctuating according to numerous factors such as the
cost of their manufacture or other external factors such as political stability. In the case of the
Mara Large Project the table below shows how the fluctuations in the cost of materials are
dominating the management of the project:
Table 1: Rank of the Materials prices fluctuations (Holm, 2012)

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Construction materials such as electrical fittings, plumbing, bricks, gravel, timber, steel, and
concrete play a significant role in the accuracy of building cost estimation. The cost of
purchasing these materials is affected by the capability of the manufacturers to manufacture
them. In case the materials are purchased from the manufacturers at the moment when the order
for the materials is at their peak, then the cost of these materials would be higher compared to the
moment when the orders are fewer (Moselle, 2016).
Material Availability
When raw materials such as stone or timber can be found easily in the region surrounding, the
estimation cost will drastically reduce, however, when the raw materials are in short supply, their
estimation cost will be higher. Therefore, it is normally advisable to select regions where there
are plenty raw materials so as to save on the cost of transportation and also reduce the time
wastage during the transportation of these raw materials from where there are manufactured or
where they are existing, to the area in which the construction process will be taking place. The
raw materials sustainability also contributes to the accuracy of the early stage construction
estimation (Ogershok, 2012).
The sustainable materials are normally available and can also be recycled hence the estimation
cost will be greatly reduced since such raw materials do not necessarily need to be construction
new. Sustainable materials that have been used at one time can be used again in the construction
of a new structure especially when these materials are recyclable or reusable. For instance, a teak
tree is very difficult to type of tree to grow since the tree requires particular climate conditions
making the estimated cost of material to be high. Due to the low availability of the teak tree, the
estimated cost of this material when it is expected to be used during the construction process will

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be high (Popescu, 2012). The figure below shows the ranking of the delay in materials
procurement for the case of Mara Large Project:
Table 2: Rank of the delay in material procurement (Pratt, 2011)
It is normally advisable to select raw materials that are not expensive and are also common
depending on the type of project under consideration. It is also effective if the suppliers were
nearer the site for the project construction so as to further minimize the cost of transportation and
also increase the accuracy of the early stage building cost estimation for the particular project.
When placing the orders for numerous materials to be used in a particular project, the quality
also affects the cost estimation. In case a majority of the materials are purchased from a single
supplier or vendor or manufacturer, then it would be easier to negotiate on the overall cost of the
materials which would be much cheaper compared to when the materials are purchased from
numerous manufacturers, suppliers or vendors (Singh, 2011).
For example, purchasing screws from a store, bricks from brick-makers, and lumber from a yard
would be more costly compared to purchasing all their materials from a single supplier.
Purchasing materials in bulk also reduce uninsured theft, thievery, and loss of materials as a
result of wastage. Adequate and regular supply of materials is the very significant task since the
wringing type of materials or irregular delivery or late delivery during construction of the project

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will affect the utilization of resources and also influence the accuracy of the early stage building
cost estimation (Holm, 2012).
Material Quality
During the cost estimation, the material quality should be seriously considered since a higher
quality of material will result in an additional cost hence increasing the cost estimation of the
project. Materials of low quality will result in a higher cost of construction than anticipated due
to the loss of materials during construction. This will lead to the lack of standards for
management systems and materials. Therefore, it is profitable to purchase materials of higher
quality which attains the minimum standard requirements to use for any project. In case lower
quality materials are used in any project, the repair cost would be more compared to purchasing
materials of higher quality which will ultimately increase the estimated cost of the materials
(Holm, 2012).
Higher quality materials perform there required the function for an appropriate duration without
any fault repairs of failure of the project. This means that the faulty materials would be decreased
drastically leading to lower initial estimated cost of the project (Arthur, 2012).
Elemental vs Trade Cost Breakdown Comparison
The selected building element for the comparison is the concrete whose trade items of a Bills of
Quantities are discussed below:
Concrete works
1. Reinforced concrete:
Bricklayer and plasterer
All the reinforced concrete elements determined by volume (m3) except
hollow block slabs measure in area (m2)
Shells, cylindrical roofs, and domes determined by area in horizontal
projection.

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2. Plain concrete:
Average thickness should be stated when determined is done by area
Determined in m3 (volume) if thickness ≥ 20 cm
Determined in m2 (area) if thickness < 20 cm
3. Plastering of the concrete:
Conclusion
This report involves the assessment on how the material market affects the accuracy of
the early stage building cost estimation by bringing the examples of the from both the research
findings as well as in industrial cases. When raw materials such as stone or timber are easily
available in the region surrounding, the estimation cost will drastically reduce, however, when
the raw materials are in short supply, their estimation cost will be higher. The cost of purchasing
materials is affected by the capability of the manufacturers to manufacture them. Materials of
low quality will result in a higher cost of construction than anticipated due to the loss of
materials during construction. This will lead to the lack of standards for management systems
and materials.

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Bibliography
Arthur, W., 2012. Estimating Building Costs. Melbourne: John Wiley & Sons.
Holm, L., 2012. Construction Cost Estimating: Process and Practices. Perth: Pearson/Prentice Hall.
Moselle, B., 2016. 2017 National Building Cost Manual. Sydney: Craftsman Book Company.
Ogershok, D., 2012. National Building Cost Manual. Perth: Craftsman Book Company.
Popescu, C., 2012. Estimating Building Costs. Gold Coast: CRC Press.
Pratt, D., 2011. Estimating for Residential Construction. Toledo: Cengage Learning.
Pratt, D., 2018. Fundamentals of Construction Estimating. Melbourne: Cengage Learning.
Singh, S., 2011. Cost Estimation of Structures in Commercial Buildings. Perth: Macmillan International
Higher Education.