Hatamleh, M T; Hiyassat, M; Sweis, G J and Sweis, R J (2018) Factors affecting the accuracy of cost estimate: Case of Jordan. Engineering, Construction and Architectural Management, 25(1), pp. 113-131. ISSN 0969-9988
Abstract
Purpose Cost estimating process is an important element within the project life cycle. Comprehensive information, expanded knowledge, considerable expertise, and continuous improvement are needed to obtain accurate cost estimation. The purpose of this paper is to identify the critical factors that affect accuracy of cost estimation and evaluate the degree to which these factors are important from contractors' and consultants' viewpoints. Design/methodology/approach Qualitative and quantitative research approaches were adopted in collecting and analyzing the data, and testing the hypotheses. Based on the literature review, a questionnaire was prepared and then was modified according to the results of face-to-face open-ended interviews conducted with 11 project managers. The final version of the questionnaire was distributed to a random sample of 265 respondents. For analyzing the collected data Kendall’s and Mann-Whitney tests were conducted. Findings The analysis revealed that there is a strong agreement between contractors and consultants in the ranking of the factors related to consultant, contractor, design parameters, and information. A slightly weak agreement between contractors and consultants was noted regarding the factors related to market conditions (external factors) and factors related to project characteristics. Furthermore, the results show that the top ten factors affecting the accuracy of cost estimate are clear and detail drawings and specification, pricing experience of construction projects, perception of estimation importance, equipment (cost/availability/performance), project complexity, clear scope definition, accuracy and reliability of cost information, site constraints (access, storage, services), material availability, financial capabilities of the client, and availability of database of bids on similar project (historical data). Originality/value Offers an original view of the concept of accuracy of cost estimates as it relates to the efficiency of the project relying on both literature review and empirical evidence.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | construction; risk management; project management; construction planning |
| Index terms: | construction project, methodology, evidence, questionnaire, project complexity, interview, cost estimating, specification, literature review, face, market condition, drawing, accuracy, risk management, Jordan, cost estimate, testing, project management, construction planning, cost information, efficiency, quantitative research, pricing, project manager, life cycle, continuous improvement, design parameter, critical factor, estimation, database |
| Subjects: | psychology, technical documentation, data analysis and analytics, professional practice, construction planning, economic analysis, financial and cost management, profession, risk assessment, data collection methods, evaluation and assessment methods, economic and policy analysis, value management, data management, design constraints, performance measurement, performance management, accounting and finance, research methods, Geography, contractual condition, organizational theory, production management, project management theory and practice, professional development |
| Topics: | Quality Management, Digital Applications, Design Practice, Site Management, Organizational Design, Contract Administration, Engineering Principles, Information Management, Project Management, Geographical Context, Research Practice, Cost Management, Business Strategy, Roles and Professions, Risk Management |
| 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