Abstract
AbstractCost overrun in construction projects is an important problem that can have serious financial consequences. It also reduces the effectiveness of planning and decision making not only for the contractor but for all parties involved. The problem keeps occurring despite many attempts made over the years to improve cost estimation and forecasting methods. This paper focuses on analyzing cost overruns in Turkey and comparing the cost estimates produced using the traditional estimating method against cost forecasts produced using the reference class forecasting (RCF) method. RCF is used to predict the final cost of a project predicated on actual cost outcomes of accomplished similar projects in the same reference class. RCF has been so far used to address estimation bias in early project development before design is completed and before all risks are accounted for to help a client to produce a more realistic forecast of the final project cost. In this paper, however, it is used to produce a forecast of ...
Published Version (
Free)
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
