CRITICAL FACTORS AFFECTING CONCEPTUAL COST ESTIMATION: ARTICLE REVIEW
Oral Presentation
Paper ID : 1180-ICASGE
Authors
1M.Sc. Student, Faculty of Engineering, Tanta University, Egypt
2Associate Professor, Faculty of Engineering, Tanta University, Egypt
3Professor, Faculty of Engineering, Tanta University, Egypt
4Lectural, Faculty of Engineering, Tanta University, Egypt
Abstract
Accurate cost estimation is a critical factor in the success of construction projects, influencing decisions from the conceptual stage to project completion. Inaccurate estimates can lead to significant financial losses or even bankruptcy for contractors. This paper reviews the critical factors affecting conceptual cost estimation, focusing on methodologies, types of cost estimates, and the components involved in cost estimation. The study highlights the importance of direct and indirect costs, markup, and contingency in the estimation process. It also explores various cost estimation methods, including analogous, unit, parametric, and assembly methods, each varying in complexity and accuracy based on the available project data. The paper further discusses the classification of cost estimates by organizations such as the Association for the Advancement of Cost Engineering (AACE) International and the Construction Industry Institute (CII), emphasizing the evolution of estimates as projects progress from conceptual to detailed stages. Additionally, the study examines the impact of financial difficulties, project characteristics, bidding situations, and the estimating process on cost estimation accuracy. The role of advanced techniques, such as computer-based and artificial intelligence methods, including neural networks, is also explored for their potential to improve estimation accuracy and efficiency. By identifying and analyzing these factors, the paper aims to provide a comprehensive understanding of the challenges and best practices in conceptual cost estimation, offering valuable insights for project managers, estimators, and stakeholders in the construction industry.
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