Idiosyncratic factors:

According to Liu and Zhu, two types of factors influence and contribute to cost of
project i.e.
Control factors
Idiosyncratic factors

Idiosyncratic factors: These are the ones which affect the estimate but cannot be
controlled by the estimators.

These mainly include:

Market conditions
Type of procurement system
Weather
Project complexity
Site constraints
Resource availability
Contract size
Contract work type

Elhag, Boussabaine, and Ballal (2005, p 541) state the most significant
factors affecting project costs are qualitative such as client priority on
construction time, procurement methods, and market conditions including
the level of construction activity.
This shows that idiosyncratic factors are the most significant and considerable
ones out of all the factors.
1. Market conditions: Local and national economy may have changes in
economic outlook which can affect construction activity. The economy may
grow and fall which can affect the construction activity. With economic
growth, the construction activity prospers and with its downfall the
construction activity also suffers. When demand is high for construction
work, supply and capacity constraints, labour shortages are generally
experienced which may lead to rising tender levels. Contrary to this, when
the work is less, margins are reduced which might result in inadequate
cover for risks which will further result in contractors loss.

2. Type of procurement system: procurement refers to the process of

obtaining goods and services from another for some consideration. It is
important to attain value for money, demonstrate accountability and
coordinate consultant and contractual roles and obligations. These are
needed to achieve satisfactory outcome. The procurement strategy identifies

how the project is structured (Murdoch and Hughes, 2008) and establishes where
responsibility for design is to be placed, how the work is to be co-ordinated, and on
what price basis the contract is to be awarded. It directly affects the level of risk borne
by the contractor.
According to clients priorities the procurement can be of three types:

i.

Traditional Procurement: in this the client appoints clients to produce design and
select the contractor and then supervise the work to completion. It delivers an
economic project and its main focus in on quality
Design and Build Procurement: In this the contractor provides the design and
construction under one contract. This offers client a competitively better price and the
contractor tries to finish the contract in a lesser time.
Management Procurement: in this the contractor works alongside the design team as
construction management serviceman. The management contractor supervises the
work whereas the package contractor or subcontractor carries out the actual
construction work.

ii.
iii.

3. Weather: Sites maybe prone to flooding, or are exposed or elevated sites where high
winds may curtail the use of plant.
4. Project complexity: the project complexities maybe:
i.
ii.
iii.
iv.
v.
vi.
vii.

Plan shape
Size of building
Wall to floor ratio
Degree of circulation space
Story heights
Total height of the building
Grouping of buildings

Generally, simple rectangular buildings are less expensive than the complex ones which
maybe curved, complex shaped or angular. Complex details are slower to execute with
greater risks and chances of bad execution. Repair of such buildings is generally more
expensive than construction of new design.
5. Site constraints: Location of project highly influences its cost. Local
development constraints decide what can be built in a particular area.
Some locations may have more expensive labour, accommodation, raw
materials, staff and machinery etc. natural site features, ground conditions
and obstructions, existing and adjoining building, and underground and
over ground services impact on how the building is designed and
constructed. Poor loadbearing soils will require more expensive
foundations. Land diversions, availability of septic tank or pumping plants
are common things which might be available for remote areas.
6. Resource availability: local contractors have certain benefits over other
contractors in competition. Resources such as labour, materials and
equipment should be available locally so that unnecessary travelling fuel
cost can be minimised.
7.