Developing an Integrative Data Intelligence Model for Construction Cost Estimation

Abstract

Construction cost estimation is one of the essential processes in construction management. Project cost is a complex engineering problem due to various factors affecting the construction industry. Accurate cost estimation is important in construction management and significantly impacts project performance. Artificial intelligence (AI) models have been effectively implemented in construction management studies in recent years owing to their capability to deal with complex problems. In this research, extreme gradient boosting is developed as an advanced input selector algorithm and coupled with three AI models, including random forest (RF), artificial neural network (ANN), and support vector machine (SVM) for cost estimation. Datasets were gathered based on a survey conducted on 90 building projects in Iraq. Statistical indicators and graphical methods were used to evaluate the developed models. Several input predictors were used, and XGBoost highlighted inflation as the most crucial parameter. The results indicated that the best prediction was attained by XGBoost‐RF using six input parameters, with r‐squared and the mean absolute percentage error equal to 0.87 and 0.25, respectively. The comparison results revealed that all AI models showed good prediction performance when applied to datasets affected by more than two parameters. The outcomes of this research revealed an optimistic strategy that can help decision makers select the influencing parameters in the early phases of project management. Also, developing a prediction model with high precision results can assist the project’s estimators in decreasing the errors in the cost estimation process.