IMPACTS OF PRELIMINARY ESTIMATE ON FINAL COST OF HIGHWAY PROJECTS IN NIGERIA

Preliminary estimate refers to an approximate cost calculation made at the early stages of a construction project, typically based on limited information, such as project scope, initial design, and historical data. This research delves into the intricate impact of preliminary estimate on final coost of highway project in Nigeria. The study aims to unravel the factors affecting the preliminary estimate on final cost of highway project, determine the effect of these factors on final cost of highway project in Nigeria, and propose effective way on how the effects of these factors can be minimized. Quantitative approach encompassing qualitative interviews was adopted for this study, a total of 122 questionnaires were administered, out of this 70 were returned valid. Five point likert scale was used In-depth interviews with industry experts and quantitative data analysis utilizing statistical tools such as SPSS 23 software, enabling the calculation of essential metrics such as weighted mean, standard deviation, standard error, respondent percentages, and variance provide a comprehensive understanding of the decision-making complexities surrounding preliminary estimates, shedding light on prioritized factors and their implications on project success. This study examines the factors influencing preliminary estimates, their effects, and mitigation strategies for highway projects in Nigeria. Key factors include scope definition, project complexity, design error, and economic fluctuations, which contribute to uncertainties and risks. Impacts of inaccurate estimates include cost overruns, Time overrun, resource misallocation, and quality issues. To address these, strategies such as improved data analysis, contingency planning, and managing incomplete information are recommended, emphasizing the need for thorough planning and iterative updates to enhance project outcomes.