Development of model for pricing of mechanical projects in Tanzania

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University of Dar es Slaam
This research aimed at developing a pricing model to address the absence of a systematic methodology for pricing of mechanical projects in Tanzania. The research established that there was clear evidence of demand for this tool amongst mechanical contractors on the basis of extensive literature review. It was also clear that there was insufficient data available for the development of the tool. An extensive questionnaire was developed for data collection from the sample identified. Out of a sample of forty-four potential respondents from within Dar es Salaam, due to its possession of the highest number of mechanical contractors in Tanzania, nineteen responses constituting contractors registered in class one to seven were received. Data were collected through a structured questionnaire. Analysis of data was done using Statistical Package for the Social Sciences (SPSS). The data analysis revealed two project classifications: projects of similar scope; more or less recurring, and completely new projects. One spreadsheet based pricing model was developed to cater for common mechanical projects of both classifications. The model input includes price data for key resources, applicable rates for variables: overheads, profit margins, among others. The model outputs are price for a project, and completion time. The model can be expanded to WBS with outputs: price, completion time, WBS-Chart, Pert-Chart, schedules, and budgets. A key recommendation for this work is for the contractors to appreciate the importance of preserving data, generation of applicable rates, and subsequently, adopt the pricing model based on WBS model for all mechanical projects. This recommendation is in favour of utilization of professional mechanical engineers and to conduct further study to establish regional cost indices, verification and validation of the WBS model.
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Construction projects, Building industry, Costs, Tanzania
Mrema, F. E (2011) Development of model for pricing of mechanical projects in Tanzania. Master dissertation, University of Dar es Salaam.Avaialble at