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Introduction
Construction is considered one of the most critical and sophisticated industries in the world. The reason it has vital importance is that it involves many complicated tasks that must be done with extreme care to achieve high productivity. Most of the tasks in any construction project are associated with higher costs; therefore, a minor mistake can sometimes lead to significant cost liabilities. Proper management of each activity is required as construction activities are often expensive and impossible to reverse (Lu et al., 2013). Therefore, it is crucial for all parties on the project to stay coordinated throughout the project's life cycle to avoid any significant cost or schedule-related issues.
Construction cost estimation is, by far, the most critical aspect of the pre-construction process. Accurate cost estimation affects the planning, coordination and bidding of the project (Moon et al., 2018). Cost estimation is dependent upon many factors and often requires detailed investigation to understand the relationships between various elements of the building. It is the process through which the project's cost is established, which enables the construction team to develop the project schedule. Early and accurate construction estimation also allows the contractor to structure the available resources to finance the project. Construction estimation is also an integral part of each phase of the design. Ideally, engineers would like to keep an eye on the cost throughout the design development process to ensure the plan is proceeding in the right budgetary path. The three main estimation stages are schematic design (SD), design development (DD) and construction design (CD). At the SD estimation stage, the project is in the early feasibility phase, and most of the elements are unknown. The second stage in the estimation is the DD estimation, where a significant portion of the design has already been completed with some changes yet to be made. The final and most up-to-date estimation is the CD stage. At this phase, all the elements are finalized, and a full-blown estimate with all the actual quantities is established for bidding purposes. CD estimate shows the most realistic cost of the project. The process of value engineering (VE) is also discussed at the CD estimation to ensure the owner's expectation in terms of budget and timeline is met.