Cost Estimating Skill as a Performance Driver for SME Contractors in South Africa

Abstract

Purpose The development of emerging contractors has been studied for many years in South Africa. These studies attempted to influence the growth of small and medium enterprises (SMEs). Some of these studies have shown that most SME contractors struggle to adjust and adopt technical methods crucial to project and business success. Therefore, this study focused on the effectiveness of various project cost techniques to improve the performance of SMEs. Design The research data were collected interviewing and observing quantity surveyors in Bloemfontein, South Africa. The interviews were conducted with purposively selected SME contractors in Bloemfontein. Findings The study showed that only experienced and well educated personnel should be allowed to manage SMEs. The study also showed that adequate use of project cost estimating techniques amongst SMEs resulted in improved delivery of projects. Practical implications The research also established various factors that deter the adequate implementation of such techniques. Among these are lack of adequate project information from professionals, and time and financial constraints. Originality/value Construction SMEs in South Africa have to attempt to improve project cost estimating techniques to forestall factors that are detrimental to the effective implementation of cost management measures in construction.