Agyekum-Mensah, G (2019) The degree of accuracy and factors that influence the uncertainty of SME cost estimates. International Journal of Construction Management, 19(5), pp. 413-426. ISSN 1562-3599
Abstract
The study examines the degree of accuracy and factors that influence the uncertainty of cost estimates. A critical review of literature conducted and was followed with two SMEs case studies executing four projects for different clients. The data collection methods used were documental review, observations and interviews. A total of 12 interviews were conducted and analysed using qualitative thematic analysis. The findings reveal an unquantifiable average cost drift or inflated risks of 19% in cost estimates which is significant as compared to other studies. Ten main factors were identified as the influential factors to the uncertainty of cost estimates, which included type of client, terms and conditions of payments, availability of cost information, experience, repeated work and guarantee of the job. This study contributes to existing literature and it reveals that in the UK post-2008 era, cost of construction remains higher and it could be reduced.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | cost estimate; cost management; project; risk management; SMEs; uncertainty |
| Index terms: | risk management, cost estimate, case study, cost information, cost management, thematic analysis, influential factor, guarantee, interview, accuracy |
| Subjects: | risk assessment, data collection methods, financial and cost management, professional development, methods and analysis, accounting and finance, contract structure |
| Topics: | Risk Management, Procurement, Cost Management, Research Practice, Information Management |
| Descriptive scope: | 4 PCEA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here