CHAPTER ONE

1.0  INTRODUCTION

1.1  Background of the Study

The source of labour output used for estimation of construction cost has been a point of discourse and contention. This is because this involves the quantitative estimation of the labour rates while market survey research for materials prices are the basis for the material cost estimation (Ashworth, 2002). The high degree of inaccuracy found in BOQ estimates is mostly attributed to the uncertainty of the accuracy of the labour constants used in pricing labour costs. Ajia (2002) concluded that while most of the outputs used by estimators are the British originated constants, some contractors adopt outputs gotten from their experience and hence non-uniform outputs are widely in use.

The common method of generating cost estimates for construction projects involves the multiplication of unit rate by the measured quantities in the bill of quantities (Ashworth, 2002). The unit rate is a component of labour rate (obtain from the multiplication of labour constant by all-in rate) plus cost of material and percentage allowance for profit and overhead, while the measured quantities are obtained from drawings and specifications for the works rules specified by Building and Engineering Standard Methods of Measurement (BESMM). The inconsistency in application of a defined output constant for construction estimates has posed a serious challenge to the accuracy of estimates computed by quantity surveyors. Labour being one of the important components of the construction industry productivity represents a considerable proportion of the final cost usually accounting for between 40 to 60% of building cost (Abdullahi et al., 2010 and Butchan et al., 1993).

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