Cost Estimation Performance in the Construction Projects: A Systematic Review and Future Directions

Abstract

Cost estimation in construction project is very critical for avoiding cost overrun in the project. This paper aims to provide a basis for improving cost estimation performance in construction through a systematic review of previous studies for last 31 years. The papers have identified a total of 238 construction cost estimation papers in 23 journals. Only 33 papers focused on factors influencing the performance of cost estimation. These papers were then analyzed, synthesized, and summarized in terms of the distribution across countries and citation influences. The factors of cost estimation performance were clustered to several themes with most of the factors in control themes. The factors in control themes are cluttered based on Organizational Control Theory (OCT). However, control themes provide less conceptual basis and dynamic to explain cost estimation performance and relationship among the factors. Therefore, this study reclassified other factors of cost estimation performance with reference to Contingency Theory (CT) and Task-Technology Fit Theory (TTFT). Hence, a new framework with relationship among the factors and cost estimation performance was developed. Further development and research of using the CT and TTFT frameworks were also discussed.

Project Cost Control Techniques and Performance of Water Projects in Kericho County, Kenya

“…The findings also show that avoidance of cost overruns was possible through estimating resource (M=3.72, SD=1.054) and the respondents also agreed that cost estimates were done according the specific project phase and a report was made, (M=3.66, SD =1.005). The researchers ' Fazil, et al (2021) revealed that estimating cost of project is critical and helps in avoiding cost overruns. The cost estimates can be drawn from past projects by assessing the costs incurred and estimated project costs.…”

The Impact of Task and Technology Characteristics on Cost Estimation Performance in Construction Projects: A Regression Analysis

“…This underperformance not only jeopardizes the project's success but also causes financial damage, particularly for design consultancy firms [5]. Fazil [6] identified several factors affecting cost estimation performance, including the experience and skill levels of estimators, experience in similar projects, the project teams, financial capability, project complexity, project information, task characteristics, cost estimation methods, project size, and external factors. While many previous studies have explored the relationship between these factors and cost estimation performance [4,7], relatively limited research has delved into the details of task characteristics within the context of cost estimation.…”

Analysis on Construction Cost Estimation Ministry Regulation Year 2016 and Year 2022 for Construction Projects

“…Indonesia is a developing country that continues to grow its infrastructure. Calculating the construction cost of buildings as closely as possible to its actual price is especially important, as poor cost estimate performance has caused project failure before [1]- [10]. Several estimates are needed based on the intended use and designation in construction practices.…”