Jump to ContentJump to Main Navigation
Show Summary Details
In This Section

Baltic Journal of Real Estate Economics and Construction Management

1 Issue per year

Open Access
Online
ISSN
2255-9671
See all formats and pricing
In This Section

Cost Estimate Reduction Using Analogue Building Materials

Laura Platace
  • Corresponding author
  • Latvia University of Agriculture, Latvia
  • Email:
/ Sandra Gusta
  • Latvia University of Agriculture, Latvia
Published Online: 2016-12-13 | DOI: https://doi.org/10.1515/bjreecm-2016-0009

Abstract

One of the most important parameters that is currently used in public and private procurement in building process is the lowest price. The legislation of Latvia permits that an estimate forming process does not include criterions of quality, durability, and the potential high cost of maintaining the building during the exploitation time. That allows the constructor to reduce the cost estimate by using cheaper construction product or technology and does not let to provide the highest possible quality and the basic principle of sustainable construction. One of possible construction cost reduction solutions is the replacement of building material with equal building material, at the same time assessing the quality and replacement impact on the direct costs of estimate. The tasks of the research are: (1) to do literature review on what is an estimate, what an estimate includes and the basis of estimate; (2) to analyse the existing construction estimate, to evaluate the used construction materials and to study technical characteristics of materials, to explore a specific construction junction; (3) to replace the selected construction materials with analogous, thus reducing the direct costs of estimate; (4) to evaluate the affect of the price of the construction material on quality; (5) to compare the obtained cost estimate with the current cost estimate; (6) to implement laboratory research and to compare technical characteristics of the construction materials and analogue materials in order to check if they are the performing parameters that are defined in the declaration of performance. After comparing of the obtained direct costs of construction and analysing the quality of construction materials it is possible to provide the most appropriate offer of the direct costs of estimate to satisfy the customer’s interests.

Keywords: Construction products; costs; estimate; quality; technical characteristics

References

  • Baltic News Network. (2010). Speciālists: cenu dempings būvniecībā sasniedzis kritisko līmeni [Price dumping in construction reached a critical level.]. Retrieved January 24, 2016, from http://bnn.lv/specialists-cenu-dempings-buvnieciba-sasniedzis-kritisko-limeni-2157

  • Barber, P., Sheath, D., Tomkins, C., Mark, H., & Graves, A. (2000). The cost of quality failures in major civil engineering projects. Quality failure costs in civil engineering projects, 17(4/5), 479-492. https://doi.org/10.1108/02656710010298544 [Crossref]

  • Bull, J. W. (1992). Life Cycle Costing for Construction, Great Britain: Routledge.

  • Cabinet of Ministers. (2015). Latvijas būvnormatīvs LBN 501-15 “Būvizmaksu noteikšanas kārtība” [Latvian Building Code LBN 501-15 “Procedures for Determination of Construction Costs”]. Retrieved January 5, 2016, from http://likumi.lv/ta/id/274994-noteikumi-par-latvijas-buvnormativu-lbn-501-15-buvizmaksunoteiksanas-kartiba-

  • Del Pico, W. J. (2012). Estimating Building Costs for the Residential and Light Commercial Construction Professional (2nd ed.). Hoboken, New Jersey: John Wiley & Sons.

  • Grīnvalds, J. (2013). Kvalitātes izaicinājumi būvmateriālu ražotājiem [Quality challenge for building material producers.]. Retrieved January 15, 2016, from http://ptac.webmultishop.com/upload/7.razotaja_izaicinajumi.pdf

  • Hendrickson, C. (2008). Project Management for Construction. Pittsburgh, PA.

  • Liepiņš, G. (2015). Something about this and that, Latvia.

  • Lopez, R., & Love, P. (2012). Design Error Costs in Construction Projects. Journal of construction engineering and management, 138, 585-593. https://doi.org/10.1061/(ASCE)CO.1943-7862.0000454 [Crossref]

  • Low, S. P., & Yeo, H. K. C. (1998). A construction quality costs quantifying system for the building industry. International Journal of Quality & Reliability Management, 15(3), 329-349. https://doi.org/10.1108/02656719810198926 [Crossref]

  • Ministry of Economics of the Republic of Latvia. (2015) Būvizstrādājumu aprites regulējums [Regulation of Circulation of Construction Products.]. Retrieved January 15, 2016, from https://www.em.gov.lv/lv/nozares_politika/buvnieciba/buvizstradajumu_aprites_regulejums/

  • Netzsch. (n.d.). Heat Flow Meter - HFM 436 Lambda [Brochure]. Retrieved May 14, 2016, from https://www.netzsch-thermal-analysis.com/en/products-solutions/thermal-diffusivityconductivity/hfm-436-lambda/

  • Newton, L., & Christian, J. (2006). Impact of quality on building costs. Journal of Infrastructure Systems, 12(4), 199-206. https://doi.org/10.1061/(ASCE)1076-0342(2006)12:4(199) [Crossref]

  • Ozoliņš, A. (2014). Jāizslēdz kļūdas iespējamības būvniecībā [The possibility of errors in construction.]. Retrieved April 30, 2016, from http://www.la.lv/jaizsledz-kludas-iespejamibabuvnieciba/

  • Sun, M., & Meng, X. (2009). Taxonomy for change causes and effects in construction projects. International Journal of Quality & Reliability Management, 27(6), 560-572. https://doi.org/10.1016/j.ijproman.2008.10.005 [Crossref]

  • Šņore, I. (2014). Būvniecības prakse - zemāka cena konkursos kopsolī ar papildus darbiem [Construction Practice - lowest price in procurement pace with addition works.]. Retrieved January 24, 2016, from http://www.lsm.lv/lv/raksts/zinju-analiize/zinas/zemaka-cena-konkursos--kopsolii-ar-papildu-darbiem.a108284/

  • Tāme mūsdienu būvprojektam [Estimate for nowadays construction project]. (2007). Retrieved January 15, 2016, from http://www.abc.lv/article/tamesana/

  • Vite, D. (2014). “Zemālā cena būvniecībā: ekonomija vai dempings?” [Lowest price: economy or dumping?]. Retrieved January 5, 2016, from http://zurnalsiepirkumi.lv/zemaka-cena-buvniecibaekonomija-vai-dempings/

About the article

Published Online: 2016-12-13

Published in Print: 2016-11-01



Citation Information: Baltic Journal of Real Estate Economics and Construction Management, ISSN (Online) 2255-9671, DOI: https://doi.org/10.1515/bjreecm-2016-0009. Export Citation

© 2016. This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License. (CC BY-NC-ND 4.0)

Comments (0)

Please log in or register to comment.
Log in