Factor Influencing Cost Estimation in Construction Project 2022

Factor Influencing Cost Estimation in construction
Cost estimation with high accuracy in the construction at early stages is crucial for the
project development, planning and feasibility. The clients require accurate and early cost
envision to allow them to plan for the funding and decision making (Dahiru, 2017).
Nevertheless, it is never easy to come up with the precise cost estimates due to different factors
which influence the final cost. The experts have to be precise and accurate in projecting the final
costs to prevent stalling of the projects due to financial issues.
One factor which can lead to the cost changes in a construction is the shortages in labor,
plants and materials as well the escalations time of construction. The construction industry relies
on the presence of the materials, working equipment and materials in order to complete the
works completed on time (Baldwin, & Bordoli, 2014). Delays and shortages of the materials,
equipment and plants on site means that the contractor cannot continue any works on site. This
raises the delays in work execution and ultimately need for escalation time of completion. The
escalation of completion time comes with additional costs which may not have been anticipated
in the beginning during cost projection. For instance, if the construction of 14 story residential
apartments tower: Milsons Point, Sydney had an initial anticipated time of completion of 1 year,
and due to avoidable circumstances the completion time is increased to 1 ½ years then additional
labor cost will be incurred and therefore increasing the final cost of the project. Shortage on
materials, plants and equipment may give rise to this situation. In addition, prices escalations
mean that original quotations have to change and the total cost as well. The time duratiosn may
be critical in changes on the prices of materials and therefore affecting the rates used. Any slight
increase of the prices in any part of the building material in any room means that the whole
building will have an increase in final cost of the building (Challender, Farrell & McDermott,