Amuda Yusuf, G and Mohamed, S F (2014) Perceived benefits of adopting standard: based pricing mechanism for mechanical and electrical services installations. Construction Economics and Building, 14(2), pp. 104-119. ISSN 2204-9029
Abstract
Cost is an important measure of project success and clients will expect a reliable forecast at the early stage of construction projects to inform their business decision. This study was undertaken to investigate the current practices in managing cost of mechanical and electrical (M&E) services in buildings. The perceptions of practitioners on the benefits of adopting Standard - Based Pricing Mechanism for M&E services as used for building fabrics and finishes was ascertained. The methodology adopted for the study was semi - structure interview and questionnaire survey. Inferential statistics technique was used to analyse the data collected. The results revealed that, M&E services tender documents are often based on lump sum contract. Practitioners are of the opinion that the adoption of Standard - Based Pricing Mechanism (SBPM) could enhance the quality of M&E services price forecasts; ensure active post contract cost monitoring and control; encourage collaborative working relationship; enhance efficient whole life cycle cost management; improve risk management and facilitate an efficient tendering process. The study suggested the development of local Standard Method of Measurement for M&E services and proposed strategies to facilitate the adoption of SBPM as basis for forecasting contract price of mechanical and electrical services in buildings.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | building fabrics; forecast; mechanical and electrical services; standard method of measurement; standard-based pricing mechanism |
| Index terms: | pricing, practitioner, project success, finishes, tendering process, risk management, whole life cycle, tender document, questionnaire, forecasting, methodology, construction project, interview, monitoring, survey, cost management, standard method of measurement, strategy, statistics |
| Subjects: | production management, control systems, project management theory and practice, practitioner, risk assessment, data collection methods, management, sustainability assessment, tendering, accounting and finance, mathematical modelling, research methods, economic analysis, prediction and forecasting, financial and cost management, building materials |
| Topics: | Project Management, Research Practice, Cost Management, Business Strategy, Procurement, Sustainability, Roles and Professions, Risk Management, Design Practice, Site Management |
| Descriptive scope: | 5 PCTEA |
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