Factors Affecting The Accuracy of Construction Project Cost Estimation in Egypt
Factors Affecting The Accuracy of Construction Project Cost Estimation in Egypt
Factors Affecting The Accuracy of Construction Project Cost Estimation in Egypt
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ABSTRACT
An accurate cost estimate is very important for the success of any construction project. This study aims to
identify and rank the factors affecting the accuracy of cost estimation in construction projects in Egypt. From
the literature review, seventy factors were identified. A questionnaire survey was carried out among 106
contractors and consultants. Relative importance index, Kendall's coefficient and coefficient of variation were
used to analyze data. The results revealed that the most significant factors affecting cost estimates are clear and
detailed drawings, specifications and project documentation, experience and skill level of cost estimator,
completeness of cost information (accuracy, quality and details), materials (prices, availability, quality and
imports) and experience on similar projects.
many factors, such as material prices, the accuracy of cost estimation in the Gaza strip according to the
BOQ, construction method/ techniques/technology and perspectives of clients and consultants. A questionnaire
quality of assumptions used in preparing the estimate, survey was designed to conclude a total of 64 factors.
among many other factors. From previous studies, it has The results showed that the most essential five factors
been found that the success of a project depends not only affecting the accuracy of cost estimation are materials
on cost, time and quality, but also on other factors. (prices, availability, quality and supply), closure and
However, in this research, we focus on the cost factor blockage of borders, project team's experience in the
only, because it has a huge impact on the success of the construction type, experience and skill level of
project. consultants and clear and detailed drawings and
Based on previous studies, cost estimation is very specifications. Ji et al. (2014) studied the factors that
important for the success of any project. Therefore, may affect the final contract price in New Zealand.
identifying the factors affecting the accuracy of the cost Multi-attribute method was used to analyze 150
estimate is very important to improve the estimation responses from professional members of the New
accuracy. This paper aims to identify the most Zealand Institute of Quantity Surveyors. The results
significant factors affecting cost estimation accuracy, showed that there are 37 factors affecting the final
give an accurate construction cost estimate and enable contract price. Three of the most important factors are
contractors to make more accurate cost estimates for poor tender documentation, complexity of design
construction projects in Egypt. construction and incompleteness of project information.
Bari et al. (2012) identified the factors affecting the
Research Objectives construction cost for industrialized building system
1. Assessing the factors affecting the accuracy of cost (IBS) projects in Malaysia. The relative importance
estimation in construction projects in Egypt. index (RII) was used to evaluate and rank these factors.
2. Ranking and evaluating these factors. The total factors are categorized into seven main groups,
3. Identifying the top ten factors affecting the accuracy including characteristics of general contracts, methods
of cost estimation in construction projects in Egypt. of procurements, attributes of contractors, design
parameters and external market factors. The results
LITERATURE REVIEW showed that the characteristics of project contractors'
attributes and market factors were more important than
Many studies were performed to evaluate and rank other factor groups. Elfahham (2019) predicted a
the factors affecting construction cost estimates. Azman construction cost index (CCI) for concrete structure
(2012) studied the accuracy of preliminary cost focus on material costs only. Three approaches were
estimates in the public work department (PWD) in used to predict this index; namely, neural networks,
Malaysia. The results of studying 83 projects according linear regression and autoregressive time series. The
to three estimating targets revealed that a project's size, three approaches were analyzed to evaluate performance
number of bidders, location and type are the most and find out which approach would give the highest
important factors that affect the accuracy of cost accuracy. The results showed that the autoregressive
estimates. Alghonamy (2015) identified the most time series approach is the most accurate approach.
important factors that cause cost overrun from the Elhag et al. (2005) identified and evaluated factors
contractors’ perspective in Saudi Arabia. Forty-three that affect cost estimates in the UK. A questionnaire
questionnaire surveys were analyzed, which concluded survey was conducted, including sixty-seven factors.
34 causes of cost overrun. The study showed that the These factors were categorized into six categories. The
most important factors are bid award for the lowest results showed that there is a strong agreement between
price, frequent design changes, payment delay, improper responses in ranking cost factors. Pujitha and Venkatessh
planning and long period between design and (2020) developed a unit cost estimation approach to
implementation. predict a project's final cost. To test this method, a case
Enshassi et al. (2013) assessed and ranked the most study was selected based on the collected periodic data.
important factors affecting the accuracy of pre-tender The results showed that this method helped the
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Jordan Journal of Civil Engineering, Volume 15, No. 3, 2021
construction team minimize unit cost. Also, it was Sayed et al. (2020) studied the factors affecting cost
considered as an assessment tool of work standards by estimates to improve cost estimation in a construction
comparing project unit production cost values. project. From the literature review, twenty-nine factors
Aibinu and Pasco (2008) studied the accuracy of were collected, then reduced to nine factors by the
pretended cost estimation in Australia. The study was Pareto technique. The nine factors were used to develop
undertaken on 56 projects. A questionnaire survey was an arithmetical model. This model was tested on
conducted, including eight factors. The results revealed fourteen completed projects. The cost variances
that the accuracy of estimates was affected by project calculated by the model were 0.5 % and 0.8% for each
size. Memon et al. (2014) identified the factors affecting case. Bakr (2019) identified the most significant factors
construction cost performance. A total of 15 factors affecting the accuracy of cost estimates at the tendering
were identified from the literature and interviews. A phase in Jordan. From the literature review, 59 factors
questionnaire survey was carried out to collect data. The were collected. A questionnaire survey was designed
results showed that fluctuation in the prices of materials, and distributed to 450 experts in construction. The RII
cash flow, financial difficulties faced by contractors and was used to rank these factors. The results revealed that
shortage of site workers are the most significant factors. level of experience of the estimation team, client's
Musarat et al. (2020) studied the role of inflation rate financial capabilities and the experience of the project
and its impact on construction industry and economics. team are the most important factors.
The study noted that the inflation rate was neglected in Kasem and Alhaffar (2011) studied the situation of
budgeting construction projects. Therefore, this caused cost management in building projects in Syria. This
cost overruns for the project as labor wages, machinery study was conducted by a questionnaire survey to collect
hire rates and prices of materials. A framework was data. This questionnaire was distributed among a
developed to clarify the strong relationship between number of workers in the construction sector. The
construction industry and inflation rate. This framework results showed that cost management methodology was
is useful to overcome cost overrun which occurs because not applied in Syrian building projects. Hammad et al.
of the inflation rate. (2008) developed statistical regression models and
Alumbugu et al. (2014) studied the factors affecting sample tests depending on real data of 140 projects.
the accuracy of cost estimates in Kaduna state, Nigeria. These models were developed based on historical data
The study was carried out through a questionnaire for similar projects. The results showed that the models
survey. The importance index and correlation analysis are effective in predicting project cost and duration.
were used to analyze the collected data. The results Enshassi et al. (2007) identified and ranked the most
revealed that there is a significant agreement between significant factors affecting cost estimation in the Gaza
clients, consultant and contractors regarding the most strip from the contractors’ perspective. A questionnaire
important factors influencing the accuracy of cost survey was used to rank 51 factors. The results revealed
estimates. These factors are experience and skill level of that the most important factors are: location of the
consultant, project team experience on the construction project, segmentation of the Gaza strip and limitation of
type and clear and detailed drawings and specifications. movement between areas, political situation and closure
Enshassi et al. (2010) identified the factors affecting cost of the Gaza strip.
overrun in construction projects in the Gaza strip. Forty- Akinradewo et al. (2020) studied the factors
two factors were identified from the literature review. A affecting the accuracy of road cost estimates in Ghana.
questionnaire survey was undertaken to collect data This research showed that improper project planning,
from contractors. Importance index was used to rank and insufficient preliminary site investigation, use of
evaluate these factors. The results revealed that the most shortcuts, use of outdated market prices and incorrect
significant factors that cause cost overrun are increase in equipment productivity are the most important factors.
material prices due to continuous border closures, delay Akinradewo et al. (2020) stated that, to improve the road
in construction, supply of raw materials, equipment of project's estimate in Ghana, estimators should give more
constructors and fluctuation in the cost of building attention to factors, such as clear definition of project
materials. scope, availability of sufficient design in format, formal
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Factors Affecting the Accuracy of… Ahmed H. Ibrahim and Lamiaa M. Elshwadfy
feedback between design and estimating teams and study was carried out with ten experts involved in
proper design documentation and information construction projects. Depending on their experience,
management. several expressions were revised and the questionnaire
The above-mentioned literature review indicates that was put in its final form. According to sample size
different authors have used different techniques to calculation, one hundred and six questionnaire forms
assess factors that influence the accuracy of cost were randomly distributed among 84 contractors and 22
estimates in construction projects. A total of seventy consultants. The number of contractors is more than the
factors affecting construction cost estimation were number of consultants, because the detailed cost
identified from the literature and were categorized into estimate is very important for contractors. The response
six main categories. As previously reported, several rate to the questionnaire was 82 respondents
studies are being performed to analyze the effects of representing about 77.36%; 66 contractors (80.49%) and
various factors on the performance of cost estimates. 16 consultants (19.51%). A five-point Likert scale was
However, there is no agreement among researchers on used to evaluate these factors (1 for extremely not
the most significant and influential factors influencing important, 2 for moderately not important, 3 for neutral,
the accuracy of cost estimates. Furthermore, to the best 4 for moderately important and 5 for extremely
of the researchers’ knowledge, no research in this field important).
has been performed in Egypt. As a consequence, this is
the key factor that motivated the researchers to perform Sample Size
this analysis. The population in this research includes all
This paper evaluates and ranks factors affecting cost contracting firms of first and second categories for
estimation of construction projects in Egypt. A construction projects. The samples were selected
questionnaire survey is used to collect data from a randomly from each level of the two contractor
randomly selected group of contractors and consultants categories. The total number of contracting companies
in Egypt. The questionnaire was filled by 82 contractors was 576. The formula which is shown below in Eq (1)
and consultants and the rate of their responses was was used to determine the sample size of an unlimited
77.36%. In addition, the paper describes the statistical population (Bartlett et al., 2001).
analysis of the survey, which includes severity index and
coefficient of variation. 𝑍 P 1 P
𝑛 … … … … … . 𝐸𝑞 1
𝐶
RESEARCH METHODOLOGY
n= sample size.
A two-stage research methodology was performed Z = z value for (90% confidence level =1.645).
for the research. Firstly, literature surveys and P= percentage of picking a choice, expressed as a
contractor interviews were conducted to identify factors decimal (0.5 used for sample size needed).
affecting the accuracy of cost estimates of construction C = confidence interval (0.1).
projects in Egypt. Seventy factors were identified and
1.645 0.5 1 0.5
grouped into six main factor categories as follows: 𝑛 67.9~68
0.1
Consultants, design parameters, information and
estimators.
Correction for finite population
Client characteristics.
New
Project characteristics. 𝑠𝑠
𝑛∗
Contract requirements. 𝑠𝑠 1
1
Contractor characteristics. 𝑝𝑜𝑝
External factors. Where, pop=576.
Secondly, a questionnaire was designed to rank the
68
identified factors according to their importance level. To 𝑛∗ 60.91~61
68 1
develop the questionnaire prior to distribution, a pilot 1
576
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Jordan Journal of Civil Engineering, Volume 15, No. 3, 2021
Data was collected from professionals and experts in interviews. A total of 82 questionnaire forms were
construction projects in Egypt, who were mostly returned, representing 77.36% of the total. Eighty-two
participating contractors and consultants. The sample questionnaire forms were returned; 66 from contractors
was selected randomly for data collection. A total of 106 and 16 from consultants. Their classification due to
questionnaire forms were distributed to professionals experience is shown in Table 1.
and experts in construction projects in Egypt by
Project
Experience Estimator Site engineer Total
manager
Percent Percent Percent Percent
Freq. Freq. Freq. Freq.
(%) (%) (%) (%)
Less than 5 years 0 0 2 5.50 1 6.25 3 3.66
More than or equal to 5
0 0 5 13.9 4 25 9 11
and less than 10 years
More than or equal to 10
8 26.7 7 19.4 8 50 23 28
and less than 15 years
More than or equal to 15
10 33.33 10 27.8 3 18.75 23 28
and less than 20 years
20 years or more 12 40 12 33.33 0 0 24 29.3
Total 30 100 36 100 16 100 82 100.00
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Factors Affecting the Accuracy of… Ahmed H. Ibrahim and Lamiaa M. Elshwadfy
factors, k is the number of respondents and n is the designed as an internal consistency measure, i.e., do all
number of factors in each category. Kendall's devices measure the same things? Typically, the value
concordance test is conducted to identify the of Alpha varies from 0 to 1. The closer the value of alpha
(contractors’ and consultants’) responses on the six to1, the greater the internal consistency of assumed
different groups of the construction cost factors. Then, items in the instrument. Cronbach's Alpha can be written
the SPSS software is used to rank them. as a function of the number of test items and the inter-
The results of this test revealed that Kendall's correlation between the items on average. The formula
coefficient values range between 0.014 and 0.168, shows the standardized Cronbach's Alpha in Eq (5) as
which are more than 0 for the six categories. These follows:
results indicated that there is an agreement among the
respondents in ranking the factors affecting the accuracy
of construction cost estimation. The significance level is α ……………………………Eq (5)
less than 0.002 for all categories, except for the category
of contract requirements, which showed a 0.339 level of where K is the number of items and r is the average
significance. These results indicate that the null inter-item covariance among items. The normal range of
hypothesis (there is no agreement among the Cronbach's alpha value is between 0.0 and 1.0, where a
respondents in ranking the factors) is rejected (p < 0.05), higher value reflects a higher degree of internal
except for the category of contract requirements. The consistency. The value of Cronbach's alpha of the
hypothesis stating that there is a significant agreement questionnaire is 0.930, which indicates excellent
among respondents in ranking the factors is accepted reliability of the questionnaire.
(p<0.05), except for the category of contract
requirements. RESULTS AND DISCUSSION
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Jordan Journal of Civil Engineering, Volume 15, No. 3, 2021
Table 2. Ranking and RII of factors of consultants, design parameters, information and estimators
Both contractors
Contractors Consultants Overall
Main factors and consultants
rank
RII Rank RII Rank RII Rank
Clear and detailed drawings, specifications
0.915 1 0.825 3 0.898 1 1
and project documentation
Suitable estimating method 0.782 6 0.825 4 0.790 7 19
Completeness of cost information, quality,
0.858 3 0.813 5 0.849 3 3
cost data and details
Impact of team integration and alignment 0.748 9 0.813 6 0.761 7 29
Experience and skill level of estimator 0.870 2 0.888 1 0.873 2 2
Buildability of design 0.676 14 0.663 13 0.673 14 65
Frequency and value of construction variation
0.773 7 0.700 10 0.759 8 30
and additional works
Level of involvement by the project manager 0.709 11 0.688 12 0.705 12 56
Procedure for updating cost information 0.812 5 0.738 9 0.798 5 17
Relationship with (client, contractors, other
0.700 12 0.763 7 0.712 10 51
design team consultants) (previous/present)
Use of checklists to ensure completeness and
0.691 13 0.625 14 0.678 13 63
technical basis
Designer experience level 0.758 8 0.750 8 0.756 9 33
Quality of assumptions used in preparing the
0.815 4 0.863 2 0.824 4 9
estimate
Number of estimating staff 0.612 15 0.525 15 0.595 15 69
Estimator work load during estimation 0.718 10 0.688 11 0.712 11 52
Ranking Factors of Client Characteristics consultants ranked this factor first with an RII of 0.767
Table 3 identifies the ranking of factors in the and 0.838, respectively. This result is similar to the
category of client characteristics according to the result found by (Ji et al., 2014). "Client experience and
responses of contractors and consultants. This category expertise" was ranked at the end by both contractors and
contains five factors. “Client’s requirements and consultants for this group with an RII of 0.661 and
expectations on quality” ranked first by both contractors ranked 67th in the overall ranking. Also, the contractors
and consultants as the most important factor affecting and consultants ranked this factor in the last position in
the accuracy of the expected cost estimate for this group this category with an RII of 0.667 and 0.638,
with an RII of 0.780 and ranked 24th in the overall respectively.
ranking. Also, the responding contractors and
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Factors Affecting the Accuracy of… Ahmed H. Ibrahim and Lamiaa M. Elshwadfy
Ranking Factors of Project Characteristics contractors ranked this factor first with an RII of 0.845,
Table 4 identifies the ranking of factors in the but the consultants ranked this factor 4th with an RII of
category of project characteristics according to 0.838. This result is similar to the result found by
contractors and consultants. This category contains 16 (Enshassi et al., 2005). "General project arrangement
factors, among which" accuracy of BOQ" was ranked including layout" was ranked last by both contractors
first by both contractors and consultants as a very and consultants for this group with an RII of 0.654 and
important factor affecting the accuracy of the expected ranked 68th in the overall ranking. Also, contractors and
cost estimate for this group with an RII of 0.844 and consultants ranked this factor in the last position in this
ranked 6th in the overall ranking. Also, the responding category with an RII of 0.661 and 0.625, respectively.
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Jordan Journal of Civil Engineering, Volume 15, No. 3, 2021
Ranking Factors of Contract Characteristics with an RII of 0.766 and ranked 26th in the overall
Table 5 identifies the ranking of factors in the ranking. Also, the responding contractors ranked this
category of contract characteristics according to the factor 5th with an RII of 0.745, but consultants ranked
points of view of contractors and consultants. This this factor 1ST with an RII of 0.850. This factor was
category contains 11 factors. "Type of contract" was ranked 26th out of 70. However, the research conducted
ranked first by both contractors and consultants and by Elhag et al. (2005) ranked this factor 45th out of 67,
considered the most important factor affecting the while Chan (2012) ranked it 21st out of 27.
accuracy of the expected cost estimate for this group
Both contractors
Contractors Consultants Overall
Main factors and consultants
rank
RII Rank RII rank RII Rank
Procurement routes and contractual
0.688 11 0.725 6 0.695 11 60
arrangement
Type of contract 0.745 5 0.850 1 0.766 1 26
Tender selection method (open, selected,
0.721 9 0.763 2 0.729 7 45
negotiation, … etc.)
Tender period 0.727 8 0.663 10 0.715 9 49
Amount of specialist work 0.745 6 0.775 2 0.751 3 34
Risk share between construction parties 0.770 1 0.675 9 0.751 4 35
Advance payments 0.761 3 0.688 8 0.746 5 38
Liquidated damage amount 0.770 2 0.713 7 0.759 2 31
Contract requirements 0.736 7 0.775 3 0.744 6 39
Bid bond and maintenance period 0.700 10 0.763 5 0.712 10 53
Amount of percentage of retention from the
0.748 4 0.638 11 0.727 8 46
contractor's payment
Ranking Factors of Contractor Characteristics 0.846 and ranked 6th in the overall ranking. The
Table 6 presents the ranking of factors in the responding contractors ranked this factor in the first
category of contractor characteristics according to the position with an RII of 0.839. Also, consultants ranked
opinions of contractors and consultants. This category it in the first position with an RII of 0.846." Record of
contains 11 factors. It contains 3 factors out of the top payments to subcontractors" was ranked last by both
ten factors. This can be considered as an indication that contractors and consultants with an RII of 0.685 and
such a category plays a critical role in cost estimate ranked 61st in the overall ranking. Also, the responding
accuracy. "Experience on similar projects" was ranked contractors and consultants ranked this factor 11th with
first by both contractors and consultants with an RII of an RII of 0.700 and 0.688, respectively.
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Factors Affecting the Accuracy of… Ahmed H. Ibrahim and Lamiaa M. Elshwadfy
Ranking of External Factors the accuracy of the expected cost estimate for this group
Table 7 presents the ranking of factors in the with an RII of 0.849 and ranked 4th in the overall
category of external factors according to the opinions of ranking. The responding contractors ranked this factor
contractors and consultants. This category contains 12 1st with an RII of 0.830. Also, the consultants ranked it
factors. It contains 3 factors out of the top ten factors. 1st with an RII of 0.925. However, the factor "weather
This indicates that this category plays a very important conditions" was ranked in the last position by both
role in cost estimate accuracy. "Materials (prices, contractors and consultants for this group with an RII of
availability, quality, imports)" was ranked first by both 0.588 and ranked 70th in the overall ranking. Contractors
contractors and consultants as a critical factor affecting and consultants considered it the least important factor.
Ranking and COV for All Factors and 40%, which means that there is a strong agreement
Table 8 indicates that there are fifteen factors that between respondents in ranking factors affecting the
have RII values above 80%. COV ranges between 16% accuracy of cost estimates in construction projects.
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Jordan Journal of Civil Engineering, Volume 15, No. 3, 2021
COV Overall
Main factors
RII Rank
Consultants, design parameters, information and estimators
Clear and detailed drawings, specifications and project documentation 17% 89.8 1
Suitable estimating method 21% 79 19
Completeness of cost information, quality, accuracy, cost data and details 20% 84.9 3
Impact of team integration and alignment 23% 761 29
Experience and skill level of consultant/estimator 16% 87.3 2
Buildability of design 33% 67.3 65
Frequency and value of construction variation and additional works 26% 75.9 30
Level of involvement by the project manager 30% 70.5 56
Procedure for updating cost information 26% 798. 17
Relationship with (client, contractors, other design team consultants)
29% 71.2 51
(previous /present)
Use of checklists to ensure completeness and technical basis 29% 67.8 63
Designer experience level 27% 75.6 33
Quality of assumptions used in preparing the estimate 20% 82.4 9
Number of estimating staff 38% 59.5 69
Estimator's work load during estimation 30% 71.2 52
Client characteristics
Client's financial status and budget 32% 76.3 28
Type of client 32% 74.9 36
Client requirements and expectations on quality 26% 78 24
Client experience and expertise 36% 66.1 67
Experience in procuring construction 30% 71 55
Project characteristics
Location of the project 33% 74.1 41
Project size / gross floor area 28% 78.3 23
Project complexity of design and construction 19% 82.2 10
Construction method/ techniques /technology 20% 80.7 15
Project duration 24% 82.2 11
Site constraints / site access 28% 76.8 25
Type of project 30% 72.4 47
Type of structure (steel, concrete, brick, timber, masonry) 33% 67.8 64
Site conditions and topography 29% 71.5 48
Number of project team members 31% 68 62
Site requirements 30% 69.8 58
Level of uncertainty in soil condition 32% 73.2 44
General project arrangement including layout 29% 65.4 68
Accuracy of BOQ 23% 84.4 6
Overlap of phases or concurrency 23% 79 20
Quality of construction required 25% 79 21
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Factors Affecting the Accuracy of… Ahmed H. Ibrahim and Lamiaa M. Elshwadfy
Contract characteristics
Procurement routes and contractual arrangement 26% 69.5 60
Type of contract 27% 76.6 26
Tender selection method (open, selected, negotiation, … etc.) 32% 72.9 45
Tender period 30% 71.5 49
Amount of specialist work 26% 75.1 34
Risk share between construction parties 26% 75.1 35
Advance payments 32% 74.6 38
Liquidated damage amount 30% 75.9 31
Contract requirements 26% 74.4 39
Bid bond and maintenance period 31% 71.2 53
Amount of percentage of retention from the contractor's payment 36% 72.7 46
Contractor characteristics
Construction team's ability to control the project 22% 81.5 13
Experience on similar projects 19% 84.6 5
Financial capability 22% 82.7 8
Current work load 27% 74.4 40
Management team (suitability, experience, performance) 18% 83.7 7
Level of communications within the contractor organization 25% 74.9 37
Planning capability and level of resource deployment/ utilization 22% 79 22
Number of subcontractors 31% 69.8 59
Record of payments to subcontractors 31% 68.5 61
Mark up policies and % (general and project-wise) (special or normal) 33% 73.4 43
% of main contractor direct work and % of subcontracted work 32% 70.5 57
External factors
Number of competitors in the market 27% 71.2 54
Labor (cost, availability, performance, productivity) 26% 79.3 18
Equipment (cost, availability, performance, supply condition) 23% 80. 16
Interest rate and inflation rate 30% 76.6 27
Impact of government regulation requirements 32% 73.7 42
Materials (prices, availability, quality, imports) 23% 84.9 4
Weather conditions 40% 58.8 70
Economic situation 25% 81. 14
Bidding climate comprising of competitiveness and classification of 29% 71.5 50
competitors
Lead times for delivery of materials 29% 75.9 32
Availability of other projects for tendering 33% 67.1 66
Percentage of loss in construction materials 26% 81.7 12
Ranking Main Categories and Kendall's Coefficient respondents. However, the category of "client
Table 9 illustrates that the category of "contractor characteristics" is the least significant category with an
characteristics" is ranked first with an RII of 0.766. COV RII of 0.733. The coefficient of variation ranges between
varies between 19% and 33%, which indicates a good 26% and 36%. Kendall's coefficient is 0.05 with a
agreement between respondents. Kendall's coefficient significance level of 0.002. These results indicate that
for this category is 0.098 with a significance level of there is a strong agreement between respondents in
0.00, which represents a good agreement between the ranking factors affecting the accuracy of cost estimates.
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Jordan Journal of Civil Engineering, Volume 15, No. 3, 2021
Table 9. RII and ranking of the main categories, Kendall's coefficient and COV
Kendall's
Main factors RII Rank COV Df Chi- square Sig.
coefficient
Contractor characteristics 0.766 1 19% - 33% 10 80..377 0.098 0.000
Top Ten Factors and Their Related Categories and estimators. Moreover, three factors out of ten are
Table 10 shows the top ten factors affecting the related to the contractor characteristics category. In
accuracy of cost estimates in construction projects in addition, two factors out of ten are related to the project
Egypt with their corresponding categories. The results characteristics category. Finally, only one factor out of
represent that four factors out of ten are related to the ten is related to the external factors category.
category of consultants, design parameters, information
Table 10 presents the ten most important factors the UK, we found that there is strong agreement between
affecting the cost estimation accuracy of construction both studies, although there are minor differences in
projects in Egypt. By comparing these findings and the ranking the factors. "Clear and detailed drawings,
results of the study conducted by Elhaj et al. (2005) in specifications and project documentation" was ranked
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Factors Affecting the Accuracy of… Ahmed H. Ibrahim and Lamiaa M. Elshwadfy
first in this study and was ranked 7th in the study of Elhaj A questionnaire survey was used to collect data. A
et al. "Completeness of cost information, accuracy, total of eighty-two questionnaire forms were returned
quality, cost data and details" was ranked 3rd in this out of one hundred and six questionnaire forms. The
study, whereas it was ranked 4th by Elhaj et al. However, results showed a strong agreement between respondents
the factor "financial capability" ranked 8th in this study, in ranking the factors. This is proven by the low
while it was ranked 34th out of 67 factors by Elhaj et al. coefficient of variation for each factor and by Kendall's
coefficient concordance test. The relative importance
Implications and Limitations index is used to rank these factors. The results also
This research is a preliminary analysis to gather data showed that RII of factors ranged between 59% and
that will be used to assess the effect of these factors on 90%. This reflects that these factors have a significant
cost estimate accuracy. Furthermore, it explores the impact on the accuracy of cost estimates in Egyptian
effect of cost estimate accuracy on project success. construction projects. RII for the main categories ranged
Moreover, these results could be used to develop a between 73% and 76%. These results indicate that there
model by the AHP technique. are no significant differences in ranking these
Only seventy factors were considered in this study; categories.
so, there might be other factors that were not considered The top ten factors affecting the accuracy of
in this study. The number of respondents to the construction project cost estimation are:
questionnaire was 82. The accuracy of the study could Clear and detailed drawings, specifications and
be improved by increasing the number of respondents in project documentation.
collecting data. Experience and skill level of estimators.
Completeness of cost information, accuracy, quality
CONCLUSION and details.
Materials (prices, availability, quality, imports).
This study was performed to assess the factors Experience on similar project.
affecting the accuracy of cost estimation in construction Accuracy of BOQ.
projects in Egypt. A total of seventy factors were Management team (suitability, experience,
gathered from the literature review. These factors were performance).
clustered into six main groups; consultants, design Financial capability.
parameters, information and estimators; client Quality of assumptions used in preparing the
characteristics; project characteristics; contract estimate.
requirements; contractor characteristics; external Project complexity of design and construction.
factors.
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Jordan Journal of Civil Engineering, Volume 15, No. 3, 2021
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