Comparison of Construction Cost Model †Free Samples to Students

Question: Discuss about the Comparison of Construction Cost Model. Answer: Introduction Cost estimation can be defined as a process that entails accumulation, tabulation, calculation and the analysis of the all the cost details. For every planning and conducting of successful feasibility studies on construction projects, cost estimation is very crucial. Its wise for every construction client to seek cost advice at early stages so that they can make the right decision concerning the feasibility of the concerned and the proposed project. Although many construction project managers consider this, there are a number of factors that may hinder or challenge the process and activities revolving around cost estimation at early stages. This study is aimed at research and explanation of some of the factors that have some influence on the accuracy of early-stage building cost estimating.(Odusami, 2008) In the present market, the costs of items keep fluctuating all over and along these lines, the constructor should be sharp and watchful of the everyday changes in the market (Odusami and Onukwube 2008),. The estimator too needs to both comprehend and foresee the recurrence and degree of the value varieties and the planning of the purchasing cycle so they can give the proper appraisals with next to zero room for mistakes i.e. through finished estimation or estimation. The following are the factors that affect the prices of material in the market: Materials for construction can be obtained. At the point when the materials are promptly accessible the cost of getting them will be brought down contrasted with when the items are not promptly accessible. This is so on the grounds that for the targeted project to proceed, therefore the construction material must be accessible for utilization and therefore the concerned parties should go the additional progression to get them for the initiation of the venture (Rodgers, 2014) The cost in this way of getting the materials, either through importation and crisp assembling materials can't be precisely stick pointed. The costs/cost that is written off on the gauge depends more on track costs of officially existing items than a crisp and procurement. The edge of accuracy consequently emerges when the expressed real costs change from the genuine costs of the items which at that point would incorporate different costs like the importation and transportation costs. Estimation relies upon the sticker showing prices of materials that the faculty doing the estimation possibly knows about. The nature of the material makes a fluctuation on the exact estimation of the cost of materials in that the cost of the materials assessed as possible of low-quality materials and when the materials are purchased, the materials happen to alternate quality other than the nature of those of the given gauges, a variety is made consequently inaccuracy comes in.(Robinson, 2009,) In a present market where costs of items are profoundly unique and capricious, it is exceptionally hard to gauge the esteem materials to be obtained after a specific period may cost. This is on the grounds that the time between the time of estimation and the time of procurement might be sufficient to cause a movement of costs of items in the commercial center. The exactness of the gauge is influenced by this move. This is the point at which the gauge made quotes the present costs yet the buy is made at a later date. The costs might be brought down that the cited or higher relying upon the bearing the move of the costs has moved in the market because of the different market costs determinants e.g. swelling (Minister 2009). This confuses between the assessed costs and the costs amid the time the material is acquired are the thing that decides the exactness of the appraisals. The evaluations can be precise as well if the cost stays consistent from the season of estimation until the time the buy of the materials is made however this is so uncommon. Cost estimation techniques in the construction industry method Description Accuracy levels Required information Popularity Usability analogous Its a method that estimates the duration of the present ongoing projects by the use of the actual period that a previous project used. Fairly accurate The periods that previous projects used and the cost they used. Some organizations still use it Used where a project seems to have similar costs like a previous one. parametric Its a method that uses the statistical relationship between historical data with other different variables. high Previous activities data on cost of construction high Used in scenarios where the previous activities are similar Bottom up method Its a method that is known for the usage of the highest level of required details so as to estimate cost of construction high Any information that is needed high Mostly used for new construction projects Three point Its a method that covers a wide source of information. It uses the three estimates which are the; most likely, optimistic and pessimistic. high Any relevant data high Used for new projects Conclusion There are a few variables influencing the precision of beginning period building cost estimation as elucidated by the above report. It is critical to keep these components in thought when drafting cost gauges as they help in mapping out every one of the subtle elements that will fill in as a guide amid the execution phase of the undertakings. The level of variety is a critical factor to consider too since a project can fail due to a high margin error estimate. At the point when there is under estimation, the undertaking will flop appallingly because of the absence of enough assets to support the building/venture. Despite the fact that over estimation might be more attractive than the underestimation, it can cause a development undertaking to adjust it's encouraging when engineer/customer is frightened by the expenses cited in the evaluations. The included parties are i.e. the temporary worker who we call the contractor and the contracted should think of approaches to lessen costs gau ges variety from the genuine esteem costs so that the related difficulties can be kept at any rate level (Douglas, 2008) References Bishop, B. 2009, Village of Waverly receives estimates on the cost of Ithaca Street project, Washington. Bureau of Labor Statistics, U.S. Department of Labor, Occupational Outlook Handbook, 2012-13 Edition, Cost Estimators. Desch, H. 2014, City Hall cost estimates 'frightening', Washington Douglas, M.J. 2008, the impacts of the handoffs on software development: A cost estimation model, University of South Florida. Douglas, M.J., 2008. the impacts of the handoffs on software development: A cost estimation model, The University of South Florida. GAO Cost Estimating and Assessment Guide, March 2009, Best Practices for Developing and Managing Capital Program Costs, GAO-09-3SP, United States Government Accountability Office, Garca de Soto, B., Adey, B. T., Fernando, D. 2014. A process for the development and evaluation of preliminary construction material quantity estimation models using backward-elimination-regression and neural networks. Journal of Cost Analysis and Parametrics. Isherwood, J.P., Isherwood and John Philip, 1999.System and method for estimating construction project costs and schedules based on historical data. U.S. Patent 5,918,219. Kim, G.H., An, S.H. and Kang, K.I., 2004. Comparison of construction cost estimating models based on regression analysis, neural networks, and case-based reasoning.Building and Environment,39(10), pp.1235-1242. Odusami, K.T..O.H.N., 2008. "Factors Affecting the Accuracy of a Pre-Tender Cost Estimate in Nigeria". Cost Engineering, vol. 50, pp.no. 9, pp. 32-35. Robinson, K., 2009. Cost estimates soar $700,000 for a school project. Washington. Rodgers, B., 2014. County presents revised cost estimates for incinerator project, Washington.