Running Head: A Research Paper Outline On Cost Estimating ✓ Solved
Running Head A Research Paper Outline On The Cost Estimating Processa
This assignment asks for a research paper outline on the cost estimating process, including an analysis of its steps, factors affecting accuracy, and the importance of proper procedures for organizational success. The paper should evaluate the methods used in cost estimation, identify common causes of inaccurate estimates, and discuss best practices to improve the process.
Your paper should include an introduction explaining the significance of accurate cost estimates for organizations, a literature review summarizing existing research on the steps and challenges in cost estimation, findings highlighting common issues and solutions, a conclusion emphasizing the importance of following proper procedures, and a list of credible references supporting your analysis.
Sample Paper For Above instruction
Introduction
Effective cost estimating is crucial for the success of organizational projects, serving as a foundation for budgeting, planning, and decision-making. Accurate estimates enable organizations to allocate resources efficiently and meet project goals within budget constraints. Conversely, flawed estimates can lead to project delays, increased costs, and failure to achieve strategic objectives. Despite the importance of precise cost prediction, many organizations rely on traditional, often unstructured, estimation methods that compromise accuracy. This paper explores the cost estimating process, highlights common pitfalls, and discusses best practices to enhance estimate reliability.
Literature Review
The process of cost estimation involves multiple steps designed to produce reliable predictions of project costs. Ross (2005) delineates key stages including determining the estimate basis, preparing the base estimate, conducting reviews, assessing risk, selecting communication methods, and obtaining management endorsement. Law (2014) emphasizes that establishing the estimate basis involves gathering prior project data—such as schedules and scope—to inform future estimates. Preparation of the base estimate then involves detailed cost development for each project component, excluding future escalation. This stage requires careful assumptions and accurate reflection of costs, which are subject to review and validation to prevent inaccuracies.
Kwakye (2014) criticizes traditional cost estimation methods as unstructured, overly reliant on estimator judgment, and susceptible to inaccuracies. He advocates for structured, data-driven approaches that incorporate quantitative analysis and risk assessment. Ntuen et al. (2009) explored the integration of artificial intelligence in cost estimating, emphasizing how technological tools can improve prediction accuracy and reduce human bias. Findings suggest that organizations adopting advanced methods tend to produce more reliable estimates, which are essential for strategic decision-making and organizational success.
References
- Hegazy, T., & Moselhi, O. (2015). Elements of cost estimation: A survey of Canada and United States. Cost Engineering.
- Kwakye, A. A. (2014). Understanding Tendering and Estimating. Gower Publishing, London.
- Law, C. (2012). Building Contractor Estimating: British Style. Cost Estimating.
- Ntuen, C. A., & Mallik, A. K. (2009). Applying artificial intelligence to project cost estimating. Cost Estimating.
- Ross, A. (2005). A Model of Factors Affecting UK Contractors’ Economic Organisation of Projects. PhD Thesis, University of Salford.
- Additional credible references should include recent articles and books on cost estimation methodologies, risk analysis, and project management best practices to meet 10 references with current insights and scholarly depth.