From Analog to Algorithm: A Critical Comparative Analysis of Cost Estimation Methodologies in Construction Management

Abstract

In construction project cycle, accurate cost estimation is key that plays a major role in project feasibility, budgeting and profitability. There were traditional manual types of constructing cost estimating but with time, it became more technology driven with both advancing technology and change in content of construction cost estimating. In this paper, traditional versus modern estimating methods are compared and the pros and cons of these methods are discussed. However, gross error found in traditional methods, such as analogous and parametric estimating, lacks simplicity and precision. On the other hand, modern ways, such as BIM and the AI based techniques, are offering increased accuracy and efficiency, but these pose complexity, cost overhead, and training issues. Through this analysis, the study emphasizes the need for blending of the paradigms of traditional and modern methods in the estimation of construction project. Three case studies in real world construction projects that have used both traditional and modern estimating techniques are used to further support the findings in the paper.