"Project Management Project ProposalResearch Topic: Factors of accurate estimation ofconstruction projectsStudent Name:Student ID:Tutor:Campus:Word Count: Page1 Executive summaryThe construction industry in India is evolving rapidly with adequate demand for theinfrastructure amenities. The demand further influences the project completion with better toolsand processes. Project management tools play critical roles in accurate estimation of suchconstruction projects. These tools enable the vendors to determine the appropriateness of costestimate along with impacts that can incur repeated customers in the future. The report details onthe factors that are found to influence accurate estimation of such construction projectsespecially in India. Page2 Table of ContentsIntroduction/Background ................................................................................................................ 4Problem Statement .......................................................................................................................... 4Significance of Study. ..................................................................................................................... 5Research Questions/hypotheses, ..................................................................................................... 6Aim and objectives ......................................................................................................................... 6Limitations/Delimitations (as applicable) ....................................................................................... 7References ....................................................................................................................................... 8 Page3 Introduction/BackgroundConstruction projects are highly unique because the cost estimation takes place prior toconstruction. The successes of such projects are entirely dependent on accuracy of costestimation. When there is a demand for adequate facilities, several developing countries faceproblems in accurate estimation (Bhattad and Jain, 2015). This in turn affects the labor requiredto accomplish the work and a number of subcontractors are also involved in this process. Theright way to fulfill this task efficiently is to apply project management techniques for projectestimation, quality ratio and accuracy of such early estimation. This brings an understandingbetween both the parties. Problem StatementEarly cost estimation of a construction project is always risky when it comes to a developingcountry like India because the amenities and the materials do not have constant costs. The concept of early cost estimation is critical to take proper business unit decisions. This alsobecomes the base for funding of such projects. There are 4 factors based on which the accuracyof cost estimation is evaluated (Enshassi et al, 2013). These include - the person involved inestimate preparation, tools used to estimate, and details available in prior about the project andother factors that influenced/ interrupted during the estimate. In addition to these, the process ofcost estimation in prior also demand for high expertise on the subject (Oberlender, 1993). Incases of public construction projects, this process of early cost estimation becomes a tedious taskbecause the contractors are not furnished with sufficient information and they have limited timeto submit their quotes (Dissanayaka and Kumaraswamy, 1999). Therefore, the prediction modelfollows a rough theory and applies case based reasoning to offer rough estimations for the publicPage4 construction project. Most of the projects in India are controlled by few external factors such asresource availability and weather condition (Thompson and Perry, 1992). The contractor getsbasic information on floor numbers and building type. Most of the times, the estimation does not meet actual cost and same occurs with the timeline.When the contractor is forced to complete early, the labor increases and so does the cost (Arif etal, 2015). Eventually, this brings a huge difference. In a developing country like India, there is ashortage of labor (for construction) and skilled labor (for estimation and project management).With the limited knowledge, the labors begin to work and they are instructed to rework in termsof design which can be wrongly communicated (Clark and Lorenzoni, 1985). When there is anemergency to complete rapidly, the scope changes along with structural skeleton which will putthe contractor in stake. The estimation is often invited in the government projects. The government of India invitesapplications for its tenders from contractors (Rad, 2002). Such contractors are given theinformation about location and basic project details such as duration, allocated budget andnumber of floors. In such a case, the contractor makes a number of assumptions on areas likemarket conditions, materials, schedule, ground condition, construction level and site complexity(Shanmugapriya and Subramanian, 2013). As the tender is allocated, the contractor comes toknow the inadequateness in the health and safety and high complexity. The type of finishing,usage of repetitive elements and unforeseen events turn to add risks. Significance of Study From the study of literature and the experiences of contractors with such construction projects inIndia, it is understood that success factors of estimation include design evaluation, building type,Page5 unexpected conditions, geographical conditions, net area, duration, foundation cost and laboravailability (Trost and Oberlender, 2003). These factors can enable the contractors as well as theproject providers to work in complete unison. The most crucial factor that creates a high degreeof success is the expertise of the project manager. When the resource is highly skilled,contingencies are planned in prior and the risks can be mitigated easily (Halpin and Senior,2009). This enhances the overall accuracy of estimation. Research Questions/hypothesesThe research on factors influencing the accurate estimation of construction projects arrives with2 major questions. - What are the common practices followed for cost estimation?- What are the major factors that influence the accurate estimation?Aim and objectivesThe aim of this project is to determine the successful factors that can add value to estimation ofconstruction projects in India. To accomplish this aim, there are three objectives to be achieved. - Determination of common practices followed by contractors so far to estimate- Internal and external factors that influence success of project - Acceptable level of variation in the estimation Page6 "