An Analysis of Factors Influencing Project Cost Estimating Practice
A review of the literature on cost estimating found that client experience and design level were the most significant factors influencing a project’s cost. These factors also determined the level of estimating expertise required, and client experience was ranked first among clients. Although these factors affected the ranking of project cost estimation practice, the combined ranking of clients and consultants ranked the same factor first in Group 1, placing it 12th in the overall ranking of all 64 factors.
In addition to their respective rankings, the two groups agreed on the order in which costs were calculated. This agreement confirmed that the factors were influential. The high Kendall’s coefficients indicate that the research was valid, while the Mann-Whitney test showed that there was no significant difference in opinion between consultants and clients. The authors conclude that the results are consistent with previous findings. Considering the current state of knowledge, these studies have a promising outlook for improving project cost estimating practices.
Inaccurate cost estimates have a significant impact on the delivery of a project. Inaccurate cost estimates can lead to project cost overruns, litigation, delays, poor quality work, and financial losses. Ultimately, these factors can destabilize the construction industry and have devastating effects on all project stakeholders. So how can we reduce the risk of inaccurate cost estimates? This study aims to provide a template for improving project cost estimating practices and preventing them from leading to inaccurate costs.