A Study on Factors Influencing Cost Estimating

Chai, Huey Yen (2022) A Study on Factors Influencing Cost Estimating. Final Year Project (Bachelor), Tunku Abdul Rahman University College.

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Abstract

Accuracy of cost estimation in building construction is critically important for the best interests of a business. In fact, it is well established that it is impossible to achieve 100% accuracy in any cost estimation. In order to prevent inaccuracy by maximizing the accuracy of cost estimation in this industry, this study aims to deeply understand and insight into the internal and external factors influencing the accuracy of building construction cost estimation, as well as attempt the appropriate suggestions of improving estimating’s accuracy in building construction. In this context, internal factors refer to the factors that currently influence the construction’s cost estimating mainly by human behaviour while external factors refer to the factors that are not caused by human factors, for instance mainly by environmental issues. For research purposes, Literature reviews, questionnaire survey and research methodology were adopted to achieve the research objectives. The literature review demonstrates how important it is to identify factors that may affect the accuracy of building construction cost estimates. In addition, a questionnaire survey was conducted among 120 relevant professionals in Malaysia to collect data. In this study, IBM SPSS Statistics Version 21 and Microsoft Excel were used for data analysis by using frequency method and descriptive method. The results of these studies are expected to effectively help the local and international construction industry to improve the quality and standards of construction cost estimation. In the aspect of internal factors, it is hoped that this can serve as guidelines to enable the personnel involved in the evaluation to keep and remain vigilant, alert and thorough in the estimating and evaluation process. In the project design stage, it is hoped that the external factors should be considered and prevented by the personnel to maximize the accuracy of the estimation. And finally, hopefully, this research is helpful in identifying evaluation and cost estimation communities, improving measurement practices and become more effective in the future.