Scribd Logo
Upload

Welcome to Scribd!

  • 121 views

    Cost Estimation Risk Techniques

    Uploaded by

    V Suriya Raja G S
    This study helps to develop the various skills needed to prepare, review, approve, supervise, monitor, and use cost estimates techniques and economic evaluations in research, development, design, and management inorder to avoid the overrun of estimated cost. One of the first tasks when managing a project is the cost estimate. It must be accurate, transparent and reliable. Standard techniques in cost calculations give accurate results, and their reliability is high as long as the inputs used for the calculations are exact. When we calculate project costs using effective cost-estimating techniques, we will be able to assign corresponding resources and develop schedules to manage the project successfully.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd

    Cost Estimation Risk Techniques

    Uploaded by

    V Suriya Raja G S
    121 views4 pages
    This study helps to develop the various skills needed to prepare, review, approve, supervise, monitor, and use cost estimates techniques and economic evaluations in research, development, design, and management inorder to avoid the overrun of estimated cost. One of the first tasks when managing a project is the cost estimate. It must be accurate, transparent and reliable. Standard techniques in cost calculations give accurate results, and their reliability is high as long as the inputs used for the calculations are exact. When we calculate project costs using effective cost-estimating techniques, we will be able to assign corresponding resources and develop schedules to manage the project successfully.

    Copyright

    © © All Rights Reserved

    Available Formats

    DOC, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    This study helps to develop the various skills needed to prepare, review, approve, supervise, monitor, and use cost estimates techniques and economic evaluations in research, development, design, and management inorder to avoid the overrun of estimated cost. One of the first tasks when managing a project is the cost estimate. It must be accurate, transparent and reliable. Standard techniques in cost calculations give accurate results, and their reliability is high as long as the inputs used for the calculations are exact. When we calculate project costs using effective cost-estimating techniques, we will be able to assign corresponding resources and develop schedules to manage the project successfully.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    121 views4 pages

    Cost Estimation Risk Techniques

    Uploaded by

    V Suriya Raja G S
    This study helps to develop the various skills needed to prepare, review, approve, supervise, monitor, and use cost estimates techniques and economic evaluations in research, development, design, and management inorder to avoid the overrun of estimated cost. One of the first tasks when managing a project is the cost estimate. It must be accurate, transparent and reliable. Standard techniques in cost calculations give accurate results, and their reliability is high as long as the inputs used for the calculations are exact. When we calculate project costs using effective cost-estimating techniques, we will be able to assign corresponding resources and develop schedules to manage the project successfully.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    You are on page 1of 4

    Study about Cost Estimation Risk Techniques in Construction Project

    Introduction:
    This study helps to develop the various skills needed to prepare, review, approve, supervise,
    monitor, and use cost estimates techniques and economic evaluations in research, development,
    design, and management inorder to avoid the overrun of estimated cost.
    One of the first tasks when managing a project is the cost estimate. It must be accurate,
    transparent and reliable. Standard techniques in cost calculations give accurate results, and their
    reliability is high as long as the inputs used for the calculations are exact. When we calculate
    project costs using effective cost-estimating techniques, we will be able to assign corresponding
    resources and develop schedules to manage the project successfully.
    Objective:
    To study and evaluate the factors that contribute to cost estimation techniques in a
    construction projects.
    To achieve a specific estimated cost of the construction project
    To identify main factors that causes delay and cost overruns in construction of projects
    and to examine their relative importance.
    Knowing the importance of cost estimation techniques and recommending the most
    accurate parameters that we have found in this project.
    Problem statement:
    In general most of the construction industries are facing the issue to meet the total cost as
    estimated because of deviation in cost estimation, time delay in completion and also the cost of
    construction increased,. It is the probable amount that is computed to complete a construction
    work or the prediction of amount for a project based on available data at the time during
    planning.
    The construction industry is large in size and plays a significant role in the economy but
    throughout recent years it has witnessed an increasing number of construction financial failures
    due to improper estimated cost. A number of studies have been conducted to address and control
    the industry's problems in the developing countries. However, lack of progress was noted in
    solving such problems due to many reasons. These reasons as outlined by Ofori (1994) include:
    in-appropriateness of some of the recommendations and the initiatives adopted poor executive
    capacity of the implementing agencies, lack of resources for implementation and initiatives,
    neglect of the construction industry by governments and their lack of commitment to solve its

    problems, and absence of measurable targets in programmers for improving the industry's overall
    performance.
    Problems Encountered
    Competent application of the cost estimation process throughout the construction
    project life cycle is vital to obtaining the goal of a quality cost estimate. Although extremely
    important and often overlooked, project cost estimating has many obstacles to overcome
    throughout the process. Some common obstacles include:

    Cost over runs


    Schedule delays
    Changes of scope
    Environmental & legal factors
    Inflation in Materials.

    Literature reviews:
    1. Most organizations use multiple methods for cost estimating projects, Notes Dr.
    Valerdi. My favorite ones are parametric cost models and analogy. In the case of analogy, it is
    beneficial to consider the similarities between a previous system and the new system being
    estimated. This also provides an opportunity to explore the feasibility of reusing components
    from a similar system, he adds.
    2. As per Geetika Batra & Kuntal Barua, Asst Professor, Department of Computer
    Science, L.N.C.T, Indore, The Project completion within a time and budget depend on the
    accuracy of estimation. In survey, comparison of all methods like expert judgment, estimation by
    analogy etc and highlights its advantages and disadvantages. The new approach of collapsing the
    data mining technique with software engineering is introduced for estimation.
    3.Mrs. Shubhangi Mahesh Potdar Assistant professor, IBMRD, Ahmednagar,
    India.Cost estimation is the key part of projects management. Accurate cost estimation plays
    main role to complete the project within time and budget. There are many software cost
    estimation methods, which can be classified into two types algorithmic methods and nonalgorithmic methods. This classification is depends upon use of mathematical expressions for
    estimating cost. In Algorithmic Cost Estimation there is use of mathematical expressions for
    estimating cost associated with software development. While in Non Algorithmic Cost
    Estimation there is no use of mathematical expressions for software development cost estimation
    Inaccurate cost estimation may lead to project failure, huge overruns and performance
    compromises.

    Methodology:
    Introduction:
    This study is to investigate the effect of projects in Tamilnadu, India, based on the study
    of a sample of 5 construction projects in Chennai between 2013 -2016 , We have found a
    solution to avoid overrun of estimated cost value. Here certain parameters are directly &
    indirectly affecting the cost estimation of projects and they are

    Project scope
    Feasibility of the project
    Climate & Environmental issues. (Plannable)
    Skill of the estimator
    Collecting the historical data (Periodical )
    Project Size, location & Transport conditions
    Availability resources (Manpower, Material, Machinery & Funds for project)
    Construction period, (Long term, Short term)
    Method of estimation and techniques (Most Accurate)
    Competition
    Special Construction
    Specification of project

    To control the project cost estimate with accuracy in cost estimation of construction
    project, we are using parametric estimation technique along with Analogous Estimating
    techniques with basic computerized software, in this technique we have analyzed our
    datas by each item wises and various type of works and also we are try to create standard
    detailed report for influencing the cost estimation in Construction project.
    Based on detailed data report we are easily identify further projects issues and forecast
    the project cost estimation with plan & estimated cost properly. Typical resources include
    equipment, material, services and labor. We can get costs for equipment, material and services by
    consulting price lists. While defining the parameters and analyzing the research for the problem
    causes care and ethics should be strictly followed, because it should be accurate to the top of our
    knowledge. The team which is doing those works are must be the through professionals who can
    able to meet any causes that will arise for the above mentioned points in methodology of this
    project. Ending up one parameter wrong will directly affects the progress of project.

    Research & Analysis


    We are collecting the historical data of similar projects as a basis for the cost estimate.
    Based on Inflation, market condition, environmental factors funds and resource availability we
    can adjust the cost of estimate by avoiding the overrun of what we have estimated with 5
    different projects by putting the different parameters in a graphical representation . from that we
    are comparing the differences and finding relation of depth of parameters with problems that
    arise in project. In graphical data we are taking coefficients to calculate arithmetic calculations
    which is more effective for project estimators to identify and to take consider things while
    forecasting cost estimations.
    Conclusion
    This project helps in identifying the exact decision for cost estimation whether the project is
    moving in linear constant progress or with any discrete variation in progress with proportional to
    time, cost, market situation and environmental issues.
    This can fulfill all company construction projects progress by avoiding time delays and also
    preventing the cost overrun issue than the estimated one. Since this estimation can be adjusted
    with parameters it can be use for any development of the project

    You might also like

    pFad - Phonifier reborn

    Pfad - The Proxy pFad of © 2024 Garber Painting. All rights reserved.

    Note: This service is not intended for secure transactions such as banking, social media, email, or purchasing. Use at your own risk. We assume no liability whatsoever for broken pages.


    Alternative Proxies:

    Alternative Proxy

    pFad Proxy

    pFad v3 Proxy

    pFad v4 Proxy