Hassim, S; Muniandy, R; Alias, A H and Abdullah, P (2018) Construction tender price estimation standardization (TPES) in Malaysia: Modeling using fuzzy neural network. Engineering, Construction and Architectural Management, 25(3), pp. 443-457. ISSN 0969-9988
Abstract
Purpose: The pre-tender estimation process is still a hazy and inaccurate process, despite it has been practiced over decades, especially in Malaysia. The methods evolved over time largely depend on the amount of information available at the time of estimation. More often than not, the estimate produced during the pre-tender stage is far more than the tender cost of the project and sometimes, it is perilously underestimated and caused major problems to the client in the monetary planning. The purpose of this paper is to determine the most influential factors on the deviation of pre-tender cost estimation in Malaysia by conducting a survey. Design/methodology/approach: Fuzzy logic, combined with artificial neural network method (fuzzy neural network) was then used to develop an estimating model to aid the pre-tender estimation process. Findings: The results showed that the model is able to shift the cost estimation toward accuracy. This model can be used to improve the pre-tender estimation accuracy, enabling the client to take the necessary early measures in preparing the funding for a building project in Malaysia. Originality/value: To the authors' knowledge, this is the first study on tender price estimation standardization for a construction project in Malaysia. In addition, the authors have used factors from literature for the model, which shows the thoroughness of the developed model. Thus, the findings and the model developed in this study should be able to assist contractors in coming out with a more accurate tender price estimation.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | construction planning; decision support systems; estimating; project management; questionnaire survey |
| Index terms: | tender stage, standardization, funding, construction planning, project management, estimate, modelling, fuzzy logic, Malaysia, estimation, deviation, questionnaire, methodology, influential factor, construction project, estimating, decision support, cost estimating, survey, accuracy, artificial neural network, neural network, tender price |
| Subjects: | research methods, tendering, performance measurement, professional development, project management theory and practice, production management, Geography, decision analysis, data collection methods, risk assessment, modelling and simulation, financial and cost management, analytical methods, economic analysis, construction planning, artificial intelligence, data science |
| Topics: | Procurement, Risk Management, Information Management, Engineering Principles, Research Practice, Geographical Context, Project Management, Business Strategy, Cost Management, Site Management, Quality Management, Digital Applications |
| 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