Factors affecting the accuracy of cost estimate during various design stages

Dandan, T H; Sweis, G; Sukkari, L S and Sweis, R J (2020) Factors affecting the accuracy of cost estimate during various design stages. Journal of Engineering, Design and Technology, 18(4), pp. 787-819. ISSN 1726-0531

Abstract

Purpose: The purpose of this paper is to identify factors affecting cost estimate accuracy in each of five design stages preceding building construction: order of magnitude, conceptual/schematic, detailed design, construction document and bid phase. Design/methodology/approach: Data were collected using an online survey completed by 138 respondents who work in design consultancy firms in Jordan, including project managers, architects and quantity surveyors (QSs). Survey responses were analyzed using descriptive statistics. Confirmatory interviews and case study comparisons were used to confirm the statistical analysis results. Findings: The results of this study indicated that each design stage’s cost estimate was affected by several factors. Two significant factors were common across four of the five design stages: client experience and project team experience. In addition, a high level of agreement was observed among the project managers, architects and QSs regarding the factors affecting cost estimate accuracy. Originality/value: Accurately estimating building construction costs during the design process has posed a challenge for designers and their clients in Jordan. Despite the care and effort involved in preparing cost estimates in each of the five design stages, deviations are commonly observed. Because the accuracy of building construction cost estimates directly affect the success or failure of a project, the results of this study can be used to reduce uncertainties in building construction cost estimation and subsequently increase the likelihood of project success

Item Type: Article
Uncontrolled Keywords: building construction; cost estimating; accuracy; design stage
Index terms: cost estimating, design process, interview, cost estimate accuracy, survey, accuracy, building construction, design stage, methodology, estimating, consultancy, project success, project manager, case study, quantity surveying, statistical analysis, designer, deviation, architect, project team, statistics, Jordan, cost estimate
Subjects: design methods, organization, mathematical modelling, profession, data collection methods, project delivery, financial and cost management, data science, professional practice, project management theory and practice, professional development, Geography, research methods, building construction
Topics: Roles and Professions, Construction Technology, Cost Management, Research Practice, Project Management, Geographical Context, Information Management, Organizational Design, Design Practice
Descriptive scope: 5 PCTEA

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