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.
Task:You are required to select ONE of the listed three projects (see Table 1) and prepare a report to the company’s investors analysing in detail, the factors that influenced on accuracy of early stage construction cost estimate. The report should convey the message that even though you allowed for anticipated cost variations in your early stage cost estimate, those analysed factors caused final construction cost to vary significantly, which is beyond your control and beyond the limits of anticipation.
