The Accuracy of Pre-Tender Building Cost Estimates: Factors Analysis and Evaluation of Estimating Techniques

Lim, Ker Yi (2021) The Accuracy of Pre-Tender Building Cost Estimates: Factors Analysis and Evaluation of Estimating Techniques. Final Year Project (Bachelor), Tunku Abdul Rahman University College.

Text RQS#Lim Ker Yi#18WVR12822 - KER YI LIM.pdf Restricted to Registered users only Download (1MB)

Abstract

Cost estimating is a critical process in the construction project particularly during the early stage. A well-established cost estimate can largely reduce the chances of cost overrun and delay in completing the work. Hence, the primary purpose of this dissertation is to investigate the accuracy of tender cost estimates of private projects in Malaysia. This research is carried out to review the various cost estimation techniques during the design stages, to explore the factors affecting the accuracy of cost estimates as well as to investigate the effectiveness of techniques in improving the accuracy of cost estimation. More than 25 previous study are reviewed and discussed in the literature review to identify the available techniques in preparing cost estimates, the factors that influence the accuracy of cost estimates prepared and the techniques employed to improve the accuracy of cost estimates. In order to validate the information gained from the previous study, a survey is conducted through the distribution of electronic questionnaires to the consultant quantity surveyors and estimators in Klang Valley area. The responses received is then imported into the ‘Statistical Package for the Social Sciences’ (SPSS) software and Microsoft Excel to undergo further analysis. As the questionnaire is prepared on a Likert’s Scale basis, the method of analysis employed are descriptive analysis and ‘Relative Importance Index’ (RII) analysis. The ranking of both objectives is determined through the RII value obtained where higher RII value indicates higher position in the ranking. The factors affecting the accuracy are distributed in to five groups namely (G1) factors related to the client, (G2) factors related to the consultants, (G3) factors related to the project, (G4) factors related to the estimating approach and (G5) external factors. Thus, the ranking for the most influential factor is determined within each group and an overall ranking is also included in this research. The findings show the top five factors that affect the accuracy of cost estimates identified through this study are estimator's experience level, time constraint in preparing the estimates, complexity of design, method of estimating adopted and availability of cost information. Following that, the ranking for the effectiveness in improving the accuracy of cost estimates is also determined where the sequence of the ranking is estimator’s experience level, level of expertise of designer, team integration level and follow by the attitude of designers towards changes. The final chapter listed the contributions, limitations of this research and further recommendation. The results of this research are helpful for the consultant quantity surveyors and estimators in preparing the cost estimates. It would also benefit the future research which is carried out in the cost estimation area. The results also serve a part for the future development of estimating tools using Artificial Intelligent (AI). Due to several setbacks and constraints, there are some limitations to this research such as lack of samples, limitation in scope of study and the method of carrying out the research. Lastly, future research extended from this study is recommended through employing more samples and expanding scope and area of study.