Cost Estimation Practice in Construction Companies Research Proposal

Cost Estimation Practice in Construction Companies - Research Proposal Example These costs will be collected from a variety of existing real construction companies. There is inherent risk involved in all construction companies and the rate of bankruptcy in construction industry is relatively higher than in any other type of business endeavor. For any construction company to succeed or fail, the role played by quality estimation and results reliability cannot be underestimated. The final project will therefore give a description of the estimating as well as the tendering process. This process is divided into various stages that begin with acquisition of tender documents and ends with the tender submission. This project will significantly make use of computerized calculations due to the complexity of a number of formulations involved. Furthermore, this will help in data condensation and minimal use of paper work to reduce on time, human error and financial costs. Lack of proper cost estimation in construction industry is probably one of the most contentious business issues in Kuwait than in many other countries in the world. This is putting into consideration that this sector supports a very large portion of the Kuwaiti economy being among the largest industries in Kuwait, and its negligence therefore would result into a major drawback in the country’s economic growth. Provision of coherent and cogent cost estimation is vital since the larger an industry gets, the more likely chances are that cost fatalities will be incurred. This project will give a description of the estimation process within the construction companies in Kuwait and the associated problems, beginning with acquisition of tendering documents to the actual submission of the tender. It will also give and explain some examples of indirect as well as direct estimation problems. Â