This article explores the potential for unifying all existing and future construction cost data into a single, centrally managed and accessible database for construction costs in Kenya.

The idea is not to invent anything new in terms of the practice and technologies, but to take the existing work, digitise it, and make it searchable, accessible to all interested parties anytime, anywhere, without having to keep hardcopy booklets in their offices.

Background

Construction is both a labour and capital-intensive business, whose success is influenced by how well the development costs are predicted at the pre-construction phase. Access to accurate, market-specific, and regularly updated construction cost information plays a key role in the overall process of accurately estimating construction costs to ensure projects are completed within budget, on time, and are profitable to both contractors and developers.

In Kenya, the Institute of Quantity Surveyors of Kenya (IQSK) has been producing the most authoritative construction cost information packaged into a hardcopy handbook that is heavily relied on by private sector clients.

Additionally, the State Department for Public Works had been producing an annual construction cost handbook, which was primarily relied upon in public sector projects. Trends in construction input prices are tracked by the Kenya National Bureau of Statistics (KNBS) with quarterly publications.

From 2023 onwards, these bodies joined efforts to start producing a single comprehensive construction cost handbook for Kenya, removing the inconsistencies and disparities initially brought about by the production of parallel publications.

Nevertheless, there still exists a gap between what is currently available and what the target market considers a sustainable solution for their construction cost information needs.

Statement of the Problem

To begin with, the cost information is packaged in a hardcopy handbook. These require physical storage space, are subject to mechanical wear and tear, require printing, which negatively impacts the environment, limit searchability, and are inconvenient for accessing the cost information remotely if the hardcopy is left in the office.

The presented cost information includes the contractor’s all-in rates for builders’ work items, civil, mechanical, electrical, plumbing, and landscaping works; cost per square metre of built-up area and equipment hire rates.

Although these are the commonly used formats by quantity surveyors when preparing tender bills of quantities, it is not directly useful for tracking changes in average construction materials input prices, or comparing labour charges for different regions, which is of importance to contractors, subcontractors, and policy makers, among others.

Also, Nairobi, Coast, and Western regions, as presented, may not be the best representation of construction costs in the excluded regions. Managing the cost information is time-consuming, but it may prove more useful to comprehensively track cost by, say, sub-counties, making the information more relevant to specific stakeholders.

A look at social media posts and comments when the latest joint handbook was released shows dissatisfaction amongst a section of the market with the rigidity of the current pricing model. IQSK, in a tweet, expressed concerns about the unauthorised distribution of a copy, reaffirming its intellectual property ownership.

The publishers are grappling with piracy issues, copyright violations, lost revenue as a result of piracy, and the risk of being branded with a deteriorating public image of gatekeepers of this valuable construction information, even when they are acting rightfully. A solution is required.

The following screenshot shows users’ interest in a better delivery of the cost handbook and a better pricing model that appeals to all cadres of users.

Project Description

The proposed solution to the problems discussed above is a construction cost database in the form of a web application with the following structure, features and functionalities:

A Searchable Database Served as a Web Application

First, instead of compiling cost information into a hardcopy handbook that is printed, this information will live inside a database, which will be the backend layer of the web application. Here, access to editing the database will be strictly restricted to a dedicated team that will be responsible for verifying cost data inputs from the participating partners (quantity surveyors and construction materials manufacturers, etc) to ensure data quality control.

The web app will be accessible from a browser anytime, anywhere, as long as the user has an internet connection, providing limitless access whether in the office or on-site. The users will access a webpage with cost information hidden behind a paywall and a login page. Upon successful login, the construction cost information presentation layer will be displayed, containing the specific sections of the database to which the user has access. Cost information can be shown in a tabular or spreadsheet format, borrowing from the current presentation of the existing handbook.

The front-end presentation layer is linked to the backend database layer through an Application Programming Interface (API). This is the logic that will handle subscriptions, payments, restricting and allowing access to different sections of the database based on the subscription status of the logged-in user, processing user queries when they search for specific information, among other information access rules, as it will be established during the actual design of the system.

Flexible Subscription-based Pricing Model

The existing pricing model only charges a single price for the whole handbook. This concept proposes a flexible subscription-based pricing model. Users can choose to pay for either monthly, quarterly or annual access to the full cost information database or specific sections of the database.

For example, a mechanical subcontractor can subscribe to access cost information for mechanical work items, labour rates, and material prices only (pay for only what you consume).

Interoperability and Linkages with Existing Cost Management Software

This is about the capabilities for allowing this web app to send data or allow data to be pulled from the database by cost management software used by quantity surveyors in Kenya.

This means work items in the database are coded according to the standard method of measurement (or the new Standards, Procedures, and Practices – SPP), with an embedded standard library of work item descriptions that is suitable for the production of bills of quantities. Cost management software can pull descriptions and unit rates to combine bill preparation and pricing, significantly reducing the turnaround time for those activities.

Comprehensive Construction Cost and Price Data

The concept proposes to include more regions, possibly county or subcounty level. Then expand it to cover unit rates, material prices, labour changes, and equipment hire rates for each selected sub-county.

That way, the information is directly applicable to a specific location. The current three regions of Nairobi, Western, and Coast is not directly generalisable to the unmentioned regions.

Security and Intellectual Property Protection

There are existing information technology security solutions (such as data transport and encryption services) which will be used for securing the data from unauthorised access.

Users can only access the information if paid and logged in, with a technology implementation that prevents taking screenshots or screen capture using browser plugins. This will curb unauthorised distribution.

Also, the system can be built in a way that it detects multiple logins on the same account and logs out all other devices to only be accessed on one that has been verified, limiting password sharing.

Feasibility of the Concept

Feasibility looks at the possibility that this project (digitisation endeavour) can be achieved in a practical and reasonable way. I think most of you working in the construction industry are conversant with the idea, as you often undertake feasibility studies and appraisals for new construction and infrastructure projects.

Mostly, the questions here are: whether we have the technical capacity to develop this database; whether the financial resources are available for that? What about the legal and regulatory framework that supports the concept? Is time enough – does it make any economic sense to invest in such a database in the long run?

I will not discuss a lot of things here because it looks obvious to me that we are not proposing an invention of anything new. We are taking what exists and using technology to improve how it is delivered to the consumers in the market. Again, we do not ned to reinvent the wheel.

Any competent software developer can build this. You will need at the basic level a working competence in programming and scripting languages like Ruby, Python, SQL (structured query language) or non-SQL databases, HTML (hyper-text markup language), CSS (cascading style sheets), and JavaScript.

All interested parties can come together in a coalition. This coalition should have a dedicated committee to spearhead the running of this project. Money can be fundraised, then support data collection at the lowest level in all the sub-counties in the region.

Well, that’s it. If you have any questions, type them in the comments section below, and I will answer them.