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The degree of accuracy and factors that influence the uncertainty of SME cost estimates

The degree of accuracy and factors that influence the uncertainty of SME cost estimates

Agyekum-Mensah, George ORCID: 0000-0002-3906-4621 (2018) The degree of accuracy and factors that influence the uncertainty of SME cost estimates. International Journal of Construction Management, 19 (5). pp. 413-426. ISSN 1562-3599 (Print), 2331-2327 (Online) (doi:https://doi.org/10.1080/15623599.2018.1452094)

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Abstract

The study examines the degree of accuracy and factors that influence the uncertainty of cost estimates. A critical review of literature conducted and was followed with two SMEs case studies executing four projects for different clients. The data collection methods used were documental review, observations and interviews. A total of 12 interviews were conducted and analysed using qualitative thematic analysis. The findings reveal an unquantifiable average cost drift or inflated risks of 19% in cost estimates which is significant as compared to other studies. Ten main factors were identified as the influential factors to the uncertainty of cost estimates, which included type of client, terms and conditions of payments, availability of cost information, experience, repeated work and guarantee of the job. This study contributes to existing literature and it reveals that in the UK post-2008 era, cost of construction remains higher and it could be reduced.

Item Type: Article
Uncontrolled Keywords: Cost estimate, cost management, project, risk management, SMEs, uncertainty
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD61 Risk Management
T Technology > TH Building construction
Faculty / Department / Research Group: Faculty of Liberal Arts & Sciences
Faculty of Liberal Arts & Sciences > Department of Built Environment
Last Modified: 11 May 2020 13:32
Selected for GREAT 2016: None
Selected for GREAT 2017: None
Selected for GREAT 2018: None
Selected for GREAT 2019: None
Selected for REF2021: REF 3
URI: http://gala.gre.ac.uk/id/eprint/24448

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