Improving Financial Estimation in Construction Management Through Advanced Computing and Decision Making

2020 ◽  
pp. 146-152
Author(s):  
Varun Gupta ◽  
Aditya Raj Gupta ◽  
Utkarsh Agrawal ◽  
Ambika Kumar ◽  
Rahul Verma
Keyword(s):  
Cost Estimation ◽  
Construction Management ◽  
Construction Projects ◽  
Third Party ◽  
Web Based ◽  
Effective Cost ◽  
The Government ◽  
Past Experiences ◽  
The Cost ◽  
Advanced Computing

The firm or the government invites bids against the tender whenever it requires third party to provide services to it like undertaking construction projects, delivery of material, etc. Interested parties gives their bid prices in sealed envelopes and the lowest bid rate wins the contract. However, contractor, in order to win the contract, may not estimate the cost of the project accurately as the estimation of factors contributing to the costs may be based on educated guesswork according to the past experiences. This increases the chances of the final cost of the project to go up in the end, which is to be borne by contractor. Hence, accurate and effective cost estimation is required. This chapter proposed an algorithm to provide a proper way for the contractors to estimate the accurate cost of the project for which they provide bids. This chapter provides an effective solution to the problem of inaccurate cost estimation. The algorithms are automated using a web-based tool.

scholarly journals Cost prediction model based on system dynamics in water resource project

2019 ◽  
Vol 258 ◽  
pp. 02027
Author(s):  
Hirijanto ◽  
I Wayan Mundra ◽  
Addy Utomo
Keyword(s):  
Prediction Model ◽  
Cost Estimation ◽  
Construction Projects ◽  
Model Simulation ◽  
Secondary Data ◽  
System Dynamic ◽  
Cost Prediction ◽  
Cost Component ◽  
The Government ◽  
The Cost

Project’s cost is one of important components in project achievement. Because of the uniqueness of construction projects, cost estimation always differs from project to project. The rate of cost components always change over time make difficult to forecast the cost for the upcoming project. The cost component consists of many influencing variables where there is interrelationship each other affecting to the total project cost. This paper objective is to develop a cost prediction model to assist the project planners in cost estimation for future projects. System dynamic is one of the appropriate methods to analyse system behaviour with interrelationship referring to the historic data, so it is able to predict the future project. Developing the model, primary and secondary data are collected from previous studies, interview with the government planner and survey in Malang Regency. The model simulation is Brick work unit with its components. Data from last thirteen years are used to verify and validate the developed model by causal loop diagram as a basic method in system dynamic. The finding showed that the model is closed to real condition through the validation mechanism. The developed system is useful in decision making of budget planning based on work quantity.

scholarly journals Web-Based Architecture for Automating Quantity Surveying Construction Cost Calculation

2020 ◽  
Vol 5 (6) ◽  
pp. 45
Author(s):  
Jabar H. Yousif ◽  
Saif N. Abdul Majeed ◽  
Fouad J. I. Al Azzawi
Keyword(s):  
Cost Estimation ◽  
Construction Projects ◽  
Estimation Method ◽  
Real Data ◽  
Efficient Estimation ◽  
Cost Calculation ◽  
Labor Costs ◽  
Web Based ◽  
Quantity Surveying ◽  
The Cost

Quantity Surveying (QS) is a process concerned with controlling and managing the costs of construction projects. QS Measurement relies on sophisticated measurement rules that are understood by experienced practitioners. Traditional QS systems, such as standard paperwork, are time-consuming and only approximate the cost estimate. This paper aims to design and deploy a web-based framework for automating the cost estimation of concrete construction, using ASP.NET. It introduces a user-friendly interface, which ensures that the work is completed in the chronological order of the construction phases. The proposed QS framework offers a reliable and time-efficient estimation method, in comparison to other methods (i.e., human labor using paper or Excel), which was tested using real data and was validated by experts and consultant companies. Furthermore, it automated the reading of project information from construction maps, which reduced errors when estimating costs. It could also automatically determine the project location using Google Maps and could quickly guide the user to the location. The proposed QS framework automated the manual and Excel work of cost computing with an accuracy of 99%, reducing human calculation errors. It also effectively reduced the calculation time to only three days (compared to 114 days of manual work or 19 days of Excel work). The comparison result of the Quantity Surveyor’s average paid salary indicated that using web-based QS framework helps in reducing the cost estimation time and labor costs.

scholarly journals Method of Assessing the Risk of Implementing Railway Investments in Terms of the Cost of Their Implementation

2021 ◽  
Vol 13 (23) ◽  
pp. 13085
Author(s):  
Jan Kowalski ◽  
Mieczysław Połoński ◽  
Marzena Lendo-Siwicka ◽  
Roman Trach ◽  
Grzegorz Wrzesiński
Keyword(s):  
Construction Projects ◽  
Original Method ◽  
Project Managers ◽  
Simple Method ◽  
Construction Companies ◽  
Risk Forecasting ◽  
Specific Object ◽  
Effective Cost ◽  
The Cost ◽  
The Impact

Exceeding the approved budget is often an integral part of the implementation of construction projects, especially those where unforeseen threats may occur. Therefore, each construction investment should contain elements of risk forecasting, mainly in terms of the cost of its implementation. Only a small number of institutions apply effective cost control methods, taking into account the specifics of a given industry. Especially small construction companies that participate in the structure of the implementation of large construction projects as subcontractors. The article presents a method by which it is possible to determine, with certain probability, the final cost of railway construction investments carried out in Poland. The method was based on a reliable database of risk factors published in sources. In this article, the main presumptions of the original method are presented, which take into account the impact of potential, previously recognized, risks specific to railway investments, and enable project managers to relate them to the conditions where the implementation of a specific object is planned. The authors assumed that such a relatively simple method, supported by a suitable computational program, would encourage teams that plan to implement railway projects to use it and increase the credibility of their schedules.

scholarly journals MANAJEMEN RISIKO PADA PELAKSANAAN PROYEK KONSTRUKSI GEDUNG PEMERINTAH DI KOTA DILI – TIMOR LESTE

1970 ◽  
Author(s):  
Octavio P.M Marques ◽  
I M. Alit K. Salain ◽  
I W. Yansen
Keyword(s):  
Construction Projects ◽  
Survey Methods ◽  
Building Construction ◽  
Public Works ◽  
Mitigation Measures ◽  
Project Implementation ◽  
Timor Leste ◽  
Implementation Period ◽  
The Government ◽  
The Cost

Building project as one of the construction services are filled with varying risks during the construction phase of the project implementation. At the stage of the project implementation, risks may arise either the risk of time, cost and those which affect the quality of the project. Therefore, we need to understand the risks at the construction phase and mitigation to the risks to meet in execution of project based on initial planning. The study was conducted to identify the risks in the implementation of construction projects of government buildings by using survey methods that aim to get the opinion of the respondents regarding the risks at implementation of the government building construction projects in the city of Dili - Timor Leste. Further, it was done a risk assessment to determine the major or main risks. Major risk is controlled through mitigation measures and allocation of risks to the parties directly involved in construction projects such as Project Owner, Technical Supervisor, Consultant Design, Consultant Supervision and Contractor. The analysis used in this study is a qualitative analysis. The results showed 64 risks identified in the implementation of construction projects there are 10 government buildings risks (16%) with an unacceptable category, 18 risks (28%) with the undesirable category, 28 risks (44%) with acceptable category and 8 risks (12%) with negligible category. Ownership of major / main risk to the parties directly involved in the implementation of construction projects such as the project owner, technical supervisor, consultant design, consultant supervision and contractors. The project Owner and Technical Supervision (Department of Public Works) is expected to further enhance the ability to manage projects so not throwing responsibility in managing government projects. consultant design and sonsultant supervision to be more careful in design till supervision during the implementation period so as to meet the cost, quality and time planned. Contractors are expected to further improve the performance of the building construction project.

A Study on the Cost Estimation of Mould Manufacturing Processes for Cosmetic Cap

2012 ◽  
Vol 538-541 ◽  
pp. 1158-1161
Author(s):  
Sang Bong Park
Keyword(s):  
Cost Estimation ◽  
Manufacturing Process ◽  
Tool Material ◽  
Working Environment ◽  
Cost Calculation ◽  
Machining Time ◽  
Unit Process ◽  
Time Calculation ◽  
Past Experiences ◽  
The Cost

It has conducted a study on the cost calculation of spray component mould manufacturing process. In general, it is the present state that calculating machining time and cost for a unit process in mould manufacturing process depends on past experiences. In other words, it does not go beyond the level of computing and management by estimation based on the data conducted in the past. Accordingly, in the development of mould and new products tried for the first time, the cost calculation is not reasonable and thus a lot of time is needed. That is to say, not being able to actively and reasonably respond to the needs of the market that are changing every moment, the loss of management and money due to losing opportunities is frequently taking place. In this context, It have developed and applied a system that can reasonably calculate the cost by taking account of machining time calculation theory, machine, tool, material and working environment. As a result, calculating the time needed for a unit process in mould manufacturing process is possible, and it is possible to classify major processes and suggest alternatives in management. The system developed in this study used Visual Basic Language and SQL Database under Windows environment.

scholarly journals Developing a cost normalization framework for phase-based performance assessment of construction projects

2016 ◽  
Vol 43 (12) ◽  
pp. 1075-1086 ◽  
Author(s):  
Jiyong Choi ◽  
Sungmin Yun ◽  
Daniel P. de Oliveira
Keyword(s):  
Performance Assessment ◽  
Cost Estimation ◽  
Construction Projects ◽  
Capital Projects ◽  
Ex Post ◽  
Ex Post Facto ◽  
Effective Cost ◽  
And Performance ◽  
Normalization Process ◽  
Currency Conversion

Capital project benchmarking requires an effective cost normalization process to achieve reasonable comparisons of cost-related performance for projects that are executed at different times and locations. Traditionally, cost normalization approaches were developed for ex post facto analysis of project performance and assume that all required information is fully available from a completed project. However, practitioners have expressed the need for cost normalization techniques to evaluate phase-level outcomes during ongoing projects. This paper aims to provide a cost normalization framework tailored to phase-based performance assessment. The framework involves three main steps: currency conversion, location adjustment, and time adjustment with considerations for various scenarios where the required information is not fully available. Case studies are conducted to demonstrate how the proposed cost normalization framework has been applied to phase-based performance assessment for capital projects. The proposed framework can benefit both researchers and industrial professionals interested in cost estimation, feasibility analysis, and performance assessment.

scholarly journals The Analysis of Cost Estimation using Cost Significant Model on Bridge Construction in South Sulawesi

2021 ◽  
Vol 921 (1) ◽  
pp. 012073
Author(s):  
E Aprianti ◽  
S Hamzah ◽  
M A Abdurrahman
Keyword(s):  
Regression Analysis ◽  
Cost Estimation ◽  
Construction Projects ◽  
Steel Frame ◽  
Bridge Construction ◽  
South Sulawesi ◽  
The Cost ◽  
Total Project Cost ◽  
Total Project ◽  
Significant Model

Abstract One of the fundamental problems faced by the province of South Sulawesi is the factor of accessibility, so the role of bridges is quite important. For this reason, the budget planning for standard bridge construction projects also needs to be efficient in terms of preparation and accurate in terms of budget. The Cost Significant Model is one of the total construction cost estimation models that relies more on the prices that have the most influence on the total project cost as the basis for estimation. In general, this study uses data from steel frame bridge construction projects in South Sulawesi Province to formulate a mathematical model with linear regression analysis so that it can be used in the process of estimating similar projects going forward. The Estimation Model which is formed from the regression analysis and the Cost Significant Model in this study, namely; Y = 3.884 (X7) + 0.989 (X8) - 65515.372. With; Y = Estimated Total Cost (Rp/m); X7 = Reinforcement Work Cost (Rp/m); X8 = Steel Frame Structure Work Cost (Rp/m). Where this model can explain 99.7% of the total project cost with a cost model factor of 1.038. The level of accuracy (percentage error estimate) of the estimation results of the Cost Significant Model in this study ranges from - 1.46% to +2.45%.

scholarly journals Efficient Procedure to Scheduling Construction Projects at the Planning Phase

2019 ◽  
Vol 7 (1) ◽  
pp. 60-80 ◽  
Author(s):  
Matiwos Tsegaye
Keyword(s):  
Cost Estimation ◽  
Construction Projects ◽  
Cost Optimization ◽  
Efficient Procedure ◽  
Start Date ◽  
Time Optimization ◽  
Planning Phase ◽  
Short Period ◽  
The Cost ◽  
Construction Schedule

Abstract The construction industry is one of the most important activities that contributes towards the economic growth of any nation. However, the sector has been experiencing problems of cost and time overruns, particularly the problems are significant for the lowest-bid awarded construction projects in the developing countries where inappropriate planning is reported to be one of the major causes. Thus, the paper aims at developing an integrated scheduling approach for construction projects during the planning phase from a project owner’s perspective. The proposed approach integrates cost estimation and schedule in light of practical activity precedence and mathematical cost optimization using different project commencement dates. The study has shown that cost and time optimization model could yield impractical results unless double precedence relations (start-to-start plus finish-to-finish) are imposed between some activities such as trench excavation and pipe laying. It has also demonstrated that the cost and time budgeted during the planning phase would substantially deviate from actual if the planned construction start date slips from the plan, particularly for short period projects. The proposed approach demonstrated in the paper can sufficiently allow planning engineers to develop a comprehensive construction schedule so that the cost and time overruns in the lowest-bid awarded construction projects can be reduced. The paper provides empirical insights into how a robust construction schedule is developed from an owner’s perspective. Cost-time optimization and risk analysis results obtained from manual computation might reduce the reasonable accuracy of the desired cost and schedule integration unless each activity is assigned its own calendar.

scholarly journals Quantifying the Third-Party Loss in Building Construction Sites Utilizing Claims Payouts: A Case Study in South Korea

2020 ◽  
Vol 12 (23) ◽  
pp. 10153
Author(s):  
Ji-Myong Kim ◽  
Kag-Cheon Ha ◽  
Sungjin Ahn ◽  
Seunghyun Son ◽  
Kiyoung Son
Keyword(s):  
Construction Management ◽  
Construction Projects ◽  
Building Construction ◽  
Assessment Model ◽  
Third Party ◽  
Sustainable Construction ◽  
Loss Assessment ◽  
Construction Sites ◽  
The Third ◽  
The Third Party

This study aims to quantify the losses to third-parties on construction sites by determining the loss indicators and identifying the relationship between the losses and the indicators to improve the sustainability on building construction sites. The growing size and intricacy of recent construction projects have resulted in the growth of losses, both in quantity and frequency. Notably, third-party losses are rapidly increasing owing to the urbanization of the environment and increases in construction scale. Therefore, for efficient and sustainable construction management, a financial loss assessment model is essential to mitigate and manage such loss. This study uses the third-party losses on construction sites obtained from a major South Korean insurance company to describe the difference from the material losses and to disclose the loss indicators based on actual economic losses. ANOVA analysis and multiple regression analysis are adopted to identify the variance and define the loss indicators and to make prediction models, respectively. Several groups of loss indicators are investigated, including construction information and the occurrence of natural disasters. The findings and results of this research afford an essential guide to sustainable construction management, and they can serve as a first stage loss assessment model for construction projects.

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