Abstract. Cost estimation, bid/no bid decision, estimating accuracy, and cost overrun are the four main cost estimating issues (MCEI) investigated by many previous researchers from different parts of the world for decades. Factors relating to client characteristics, consultant and design parameters, contractor attributes, project characteristics, contract procedures and procurement methods, and external market conditions [1] are examined for their influences on those four MCEI separately. However, very little attention is paid on the comparison of factors rankings across those four MCEI. Results from comparing those factors rankings improve the understandings on cost estimating issues. Thus, this study aims to compare the factors rankings across the four MCEI and evaluate the degree of agreement between the four sets of ranks for their influential factors. Four previous studies, each examining factors affecting each of the four MCEI are selected through literature survey for analysis. Influential factors from each previous study are assigned to their related categories: client, consultant, contractor, project, contract, and environment. Kendall's coefficient of concordance is used to assess interjudge reliability. The computed correlation indicates a moderate degree of association between the four sets of ranks. It is found that the four MCEI are influenced by different factors with different ranks and hence should be treated as different MCEI and be managed differently. Research Background and MotivationFactors with respect to client characteristics, consultant and design parameters, contractor attributes, project characteristics, contract procedures and procurement methods, and external market conditions [1] are often examined for their influences on the four MCEI separately. For instance, factors related to contractual arrangements [2,5], contractor attributes [2], market conditions [5] are found to be the main causes of cost overrun; factors related to client characteristics, contractor attributes are found to be the major determinants for bid/no bid decision [3]; and factors related to market conditions and a Corresponding
The objective of the survey which was conducted in the Klang Valley of Malaysia was to prioritise factors that are considered by building contractors in estimating the construction cost of buildings. Respondents selected by simple random sampling have been asked to assign a one-to-five rating for each of the total of 79 cost factors identified from the literature review. The result of the preliminary survey of factors influencing project cost estimating practice of building contractors has indicated that only 35 cost factors have been regarded by the respondents from small, medium and large building construction companies as highly relevant for building construction projects. ‘Client requirements on quality’ was found to be the most significant cost factor influencing the construction cost of buildings.
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