Thank you for the suggestions. Interestingly enough, the problem disappears when I change from parallel projection to perspective view. I can select faces properly again and z-fighting is limited to actual co-planar faces.

I haven't fiddled with drivers and software yet. I'll get to that maybe next week.

I'm now using SketchUp 2016. I used SketchUp 8 before.

Also, the graphics card is an NVidia GTX 970 and the current driver is version 361.75.

I didn't have this problem when I tried it on an SketchUp 2015, although I did use an older driver then.

Sketchup Version: Sketchup 2016

I understand that what Z-fighting occurs when two faces within the same plane causes flickering between the two faces as SketchUp has problems choosing which face to display. Usually the solution is to add depth between the faces.

Apparently, I've encountered a similar problem. I seem to have Z-fighting between faces in close proximity to each other. As shown in the image attached, I have "Z-fighting on places where there shouldn't be any"

1. The edge where two faces intersect at 90 degree angles of each other, thus flickering between the two.
2. The brown beams which are 50mm deep. Faces behind flicker into view.

The end result is inaccurate selection while working i.e. the face that I end up to selecting, painting, etc is the one behind, not the one facing me.

Is there a fix for this, the inaccuracy becomes a big inconvenience.