Publications / 2001 Proceedings of the 18th ISARC, Krakow, Poland

Approximate Cost Estimating System for Construction of Steel Mill

Sungkwon Woo, Youngsoo Jung, Younghwan Lee, Bok-Nam Lee
Pages 1-6 (2001 Proceedings of the 18th ISARC, Krakow, Poland, ISBN 9788386040117, ISSN 2413-5844)

Enhancing the accuracy of an approximate cost estimate is a critical issue since the estimate ordinarily predicts the total cost of a project with insufficient project information. In order to facilitate the approximate cost estimate process, this paper proposes a computer-based integrated system that enables the flexibility to varying amount and accuracy of available information, higher accuracy by using several different adjustment factors at the same time, and decision supporting feature by fast manipulation of the profits and contingencies in determining the final bid price. Proposed methodology has been implemented for a steel mill construction company in Korea, and its viability was validated. Findings and practical implications are outlined.

Keywords: approximate estimate, historical database, adjustment factors, information system