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Introduction
The construction sector plays an important role in the design and formation of the world as it builds the environment in which we live. The construction sector has also participated in constructing the infrastructure that vests communication, water and electricity supplies, etc. In addition, it helps in creating most of the major parts of a community and a nation’s work (Håkansson and Ingemansson, 2013).
Furthermore, contribution of the construction sector to the overall economic performance of any country cannot be underestimated. In addition, it provides employment opportunities for a large number of people (Enshassi et al., 2013).
Numerous factors that negatively impact the performance of the construction industry include inadequate leadership, unwillingness to change, ineffective vision and strategy, insufficient resource allocation system, failure to identify the priorities and inefficiencies in identifying time and cost overruns, low productivity, and poor quality. Therefore, the authors argued that there is a need to develop and implement an adequate evaluation system to quantify the results in the industry and to improve its performance as a whole.
Enshassi et al. (2013) stated that the success of any construction project depends on the accuracy of several estimations. There are a number of factors that influence the success of a construction project such as project complexity, contractual obligations, effective communication between stakeholders, and the proficiency and skills of a project team. Furthermore, the success of a construction project is determined by achieving time, cost, and quality objectives.
According to Enshassi et al. (2013), the cost estimates determine whether the company is prepared to bid on a construction tender and consequently in winning the tender, thus playing an important role in marketing the company. However, the final project costs in a lot of cases due to various factors are higher than the initial estimates.
Cost estimation is a procedure of determining the scope of work and the financial resources needed to satisfy the requirements of the project from initiation to termination. Hence, information about the projects’ structural components and characteristics influences the estimation of the costs involved (Shash and Ibrahim, 2005). Exceeding the project budget is the major challenge for construction companies. The cost estimates could be improved significantly if the project scope, community interest, and macro-economy are reflected accurately (Shash...