A stage-by-stage factor control framework for cost estimation of construction projects

• Li Liu
• Kai Zhu

Construction companies compete primarily on time and cost. Central to cost-based competition is the capability to accurately predict the cost of delivering a project commonly referred to as cost estimation. Typically, estimation of project effort needs to be made at various stages of a project. Little extant literature investigates the effects of factors critical to effective estimation at various project stages. Most literature on cost estimation focuses on specific estimation methods as generic technique and little attention has been paid to the unique requirements at each project stage. This study attempts to identify the critical factors for effective estimation at various stages of typical construction projects.

Drawing from organization control theory and cost estimating literature, we develop a theoretical framework that identifies the critical factors for effective cost estimation during each of the project phases of a conventional and/or a DB (Design-Build) construction project. The underlying logic is that as a cost estimating effort progresses, both task programmability and output measurability improve. As a result, control effort will shift from input-oriented control to a combination of output and behaviour control. The results will be tested through a survey with quantity surveyors in Australia.