Qualitative and Quantitative Cost Estimation: A Methodology Analysis

Abstract

This paper reports on the first part of an ongoing research with the goal of designing a framework and a knowledge-based system for 3D parametric modelbased quantity take-off and cost estimation in the Architecture, Engineering and Construction (AEC) industry. The authors have studied and analyzed current cost estimation methods used in both the AEC and non-AEC industries in terms of their requirements, use contexts, methodologies, limitations and strengths to lay the groundwork for selecting the most suitable problem decomposition methods and cost estimation techniques to design a new framework. We have focused on determining the underlying methodologies of different cost estimation models and not just the techniques. Both qualitative methods used in early stages of design and quantitative methods used in more mature design stages are reviewed and their structure are analyzed.

Key features and novel trends for developing cost engineering methods for forged components: a systematic literature review

“…Data from the past projects are used to train, test, and validate the built model's performance. Qualitative methods' weaknesses lie in the difficulty in handling many variables (cost-driven parameters) and the requirement for establishing a cost function between inputs and outputs by regression analysis methods [35].…”

“…Quantitative cost estimation methods are mostly used in the late stage of product design (embodiment design and detail design), targeting the manufacturing domain and the supply chain management to achieve an accurate cost estimation with the possibility to increase the level of granularity present in their models [32]. Quantitative methods are robust and accurate because assessment uses a product decomposition structure to collect cost factors associated with production processes and morphological components' features [35]. As a general outcome, in forging technology, quantitative methods are the most suitable choice for assessing product costs during the design phase [31].…”

A Knowledge-Based Framework for Quantity Takeoff and Cost Estimation in the AEC Industry Using BIM

“…A detailed study of these CE methods used in different project stages and analysis of the performance and shortcomings of each method is published by authors in a separate paper [19]. CE methods used in early stages of a project mostly can work only with a limited number of variables and provide a rough approximation of cost of a project suitable for budgeting.…”

“…Analyzed performance of different cost estimation methods and documented the results of the study in [19].  Devised a combined feature-and function-based analytical cost estimation method [19] as the most suitable for the intended estimation level of detail and accuracy.  Decomposed precast concrete products into their functional components and identified features required for each function.…”

Integrating distributed sources of information for construction cost estimating using Semantic Web and Semantic Web Service technologies

“…Various qualitative and quantitative methods for construction and manufacturing cost estimation in terms of their requirements, methodology, limitations, and strengths have been investigated by Aram et al 1 The scope of our paper is limited to quantitative cost estimates prepared by contractors based on a complete set of design documents. With the advent of building information modeling technologies, estimators can digitally extract building element properties from a building information model (BIM) and transfer the data to an estimating application.…”