PREDICTING COST CONTINGENCY FOR PRIVATE PROJECTS: CASE STUDY IN VIETNAM

Abstract

Actual cost in construction projects has tended to exceed the project budgets. Thus, cost contingency from the initial of the project is the significant budget to complete project activities. Cost contingency is an important element of cost estimation to protect project stakeholders such as owners, contractors, and architects from the risks of the project. This paper reviewed the previous studies to find the factors affecting cost contingency and proposed a regression model to predict the cost contingency for private projects in Vietnam. Through industry survey, project performance information from a total of 48 private projects in Vietnam was gathered. The research also compared with other studies to have an overview about cost contingency predicting methods. The key benefit of this research is that the project managers can use this model as another forecasting method to get a better quality cost management. The further research can be focused on developing the model for other project types in Vietnam.