Construction Cost Estimating Factors 2022 – Construction Cost Estimating Factors that determine validity, transparency, and level of cost management capability.
CORE PRINCIPLES
- An estimate is no better than its basis.
- An estimate is a prediction and carries uncertainty.
- An estimate is a decision-making tool.
- Variations in an estimate can be found in the basis.
FACTORS IMPACTING AN ESTIMATE
- Access
- Corruption/fraudulent practices
- Culture
- Data architecture (standardized, common terms, definitions, information formats)
- Early and ongoing communication of participants
- Environmental aspects
- Equipment availability
- Local and general market conditions
- Location
- Labor availability and skill
- Material availability
- Means and methods
- Organizational leadership
- Owner leadership and competence
- Programmatic approach and planning, procurement, project delivery methodology
- Project timeline
- Scale/size
- Statement of Work (SOW) detail
- Supporting technologies
- Technical and cost visibility and transparency
- Team skill (internal and external) of all participants and stakeholders
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