Computer Integrated Model to Estimate the Construction Cost and Duration of Building Projects at Their Feasibility Stage

Abstract

Presently, owners are interested in evaluating the feasibility of investing in the construction of new building projects based on cost and time constraints. They need to therefore have an idea about the project construction costs, the time required to finish construction of a project in its conceptual phase, and about the implementation of feasibility study. Because due to associated risks, construction cost estimates and schedules are vital to any project. The research’s objective is to develop a methodology that can be used to create an integrated computer model that helps owners and designers generate construction cost estimates, and derive the baseline schedule for any proposed building project at its feasibility stage. All the relevant data used within the model is collected from the literature and is stored in comprehensive databases designed for this purpose. The data is based on 2011 RSMeans publications and consist of around 4,000 previously constructed projects. The model is developed in a Microsoft environment using Microsoft Excel 2007 and Microsoft Project 2007. This model uses deterministic and stochastic approaches to execute all necessary calculations for the conceptual cost estimate and baseline schedule. A deterministic approach relies on realistic data while a stochastic one relies on incorporating the uncertainty and risk available in calculating the cost and duration of any construction building project. The model is user friendly, flexible and executes all the necessary calculations quickly. The successful development of the model would help owners and investors identify the cost and baseline schedule of proposed projects at the early stages of the project life, so that they have an idea of the budget required for construction and the time needed to recover their investment.