COST MODELLING

What is “Cost Modelling” ?     Accurate cost modelling is fundamental to the efficiency of the construction industry in general, and the stakeholders within the industry in particular. Clients, consultants and contractors all have much to lose from the consequences of inaccurate cost modelling, e.g. through the time and cost ramifications of tender results not matching clients’ budgets. Such ramifications include: The costs of redesign and re-tendering / negotiating of projects (perhaps of reduced scope and quality) and the associated time delay, or;  Increased construction costs requiring additional funds to be sourced by clients.    Potentially this can impact upon the financial returns of a building project to a client and, at worst, lead to the abandonment of a project altogether.      According to Akintoye and Fitzgerald (2000), the most method still being employed by companies is that the standard estimating procedure,...