This a report on the factors that influence on the accuracy of early-stage construction cost estimate based on a designed real-life construction project scenario.
Scenario: Assume you are employed by a property development company (client) as a construction cost consultant for their development projects. The company delivered 20 number (in total) residential, commercial, and land development (including infrastructure) projects, during 2017 and 2018.
However, out of those 20 projects, the three projects described in Table 1 were completed with significant cost variations from the early-stage construction cost estimates, which were prepared by you in 2015.
Company’s investors are concerned about the situation as their decision on investment for each project was mainly based on this early-stage construction cost estimate prepared by the cost consultant.
Choose 1 of the 3 in the below table in the next page
14 storey apartment
6 storey office
20 hectar
• Introduction and brief project scenario (suggested around 500 words) You may develop the scenario further from the project details given in Column 2 in Table 1.
Please discuss which project was chosen on the left side of the column
• Preliminary estimating method adopted in preparing the early stage construction cost estimate (suggested around 500 words)
You are required to assume a suitable preliminary estimating technique for the chosen project scenario with justifications for your choice and describe how you used this method to prepare the early-stage construction cost estimate, with special emphasis on information availability and assumptions made at the time of preparing the estimate.
Discuss which estimating method was chosen and justify why this was chosen, also describe how this method was used in the early-stage construction cost estimate with emphasis on the availability and assumptions made at the time of preparing the estimate.
Estimating techniques: Function unit, superficial floor area, functional floor area : Below examples however please look into this
• Detailed analysis of the chosen factors that influenced on the accuracy of early stage construction cost estimate and caused the final construction cost of the project to vary significantly from it.
(suggested around 1000 words including a brief conclusion)
Please discuss the influencing factors on the right side of the table which caused the discrepancy
