IDENTIFICATION OF THE KEY FACTORS FOR ACCURATE LIFE-CYCLE COST ESTIMATION FOR CONSTRUCTION

Abstract

A major limitation of Life-Cycle Cost (LCC) estimation/prediction modelling is the current typical reliance only on those factors that can be readily quantified and come easily to hand. While estimation of the cost of the most common labor, material and plant resources receive consideration because of their high visibility factor, there are several non-cost factors (low visibility factors) affecting the estimate that are often overlooked and, it is argued here, require equal consideration in estimation processes that seek optimum accuracy. Unfortunately, such (low-visibility) factors are neglected or ignored by current prediction models. Identification of these non-cost factors (low visibility factors) affects LCC estimate accuracy and can improve estimation process confidence. This paper critically reviews secondary research on identification of these important non-cost factors and subsequently determines their influence on the accuracy level(s) of construction cost estimation.