Question
Asked 7th Aug, 2018

Can the gap between estimated and actual costs be bridged?

Good afternoon,
My name is Liam Jenkinson and I am currently studying my masters degree in project management. I am looking for construction managers/project managers to participate in my survey. Your knowledge for this research will be very valuable to the industry and could provide the answers needed to improve the feasibility aspect of construction projects:
I aspire to become a construction project manager one day and my research area really interests me to help out the future of construction.

Most recent answer

10th Aug, 2018
Douglas D. Gransberg
Gransberg & Associates Inc.
Liam - a point on professionalism. You might consider changing your photo. It does not portray someone that is a mature researcher. I'll pass your questionnaire to a couple of my contacts. Good luck on your aspirations.

All Answers (4)

8th Aug, 2018
Nolberto Munier
Universitat Politècnica de València
Dear Liam
You are asking a very interesting as well as very difficult question
It is rather obvious that if such bridging procedure existed it had been implemented long time ago.
The problem, from my point of view lies in two aspects: a) Budget preparation and duration estimates and b) Unforeseen facts.
For the first , normally for both cost (unless firm data) and times for execution are based on something that is nonexistent, that is, average prices and tasks duration. These are just a mathematical concoction, normally not related with reality.
In addition, there could be bias in the budget by estimating the lowest cost, and without considering foreseeable events such as expected increase on labor and materials because adjustments due to cost of living.
The main instrument for control of both cost and duration is the budget or 'S' curve, or BCWS (Budget Cost of Work Scheduled), which is normally considered that does not change along a project., which is of course utopian.
Cost differences are computed using the ACWP (Actual Cost of Work performed, that is the accumulative of actual costs,. Consequently, cost control compares the BCWS that was perhaps prepared long time ago, with the ACWP that is being updated constantly, since it consider rises in material costs, cost of living, negotiations with unions, inflation, etc. It is obvious t here must be a difference in cost as well as duration given by the BCWP (Budget Cost of Work Performed).
Reasoning tells me that perhaps the gap could be decreased by periodically updating the BCWS as well as the BCWP, and then they can be compared on the same basis as ACWP.
There will be always differences, but that can be framed and identified, as for instance efficiency, weather, accidents, etc.
1 Recommendation
9th Aug, 2018
Liam Jenkinson
Northumbria University
Thank you for your response Nolberto Munier, would you mind filling in my questionnaire so i can use your answers within my research paper??
1 Recommendation
9th Aug, 2018
Nolberto Munier
Universitat Politècnica de València
No problem Liam, provided that the questionnaire is not too long
10th Aug, 2018
Douglas D. Gransberg
Gransberg & Associates Inc.
Liam - a point on professionalism. You might consider changing your photo. It does not portray someone that is a mature researcher. I'll pass your questionnaire to a couple of my contacts. Good luck on your aspirations.

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