Prepare a report to the company’s investors analysing in detail, the factors that influenced on accuracy of early stage construction cost estimate

Assume you are employed by a property development company (client) as a construction cost consultant for their development projects. The company delivered 20 number (in total) residential, commercial, and land development (including infrastructure) projects, during 2017 and 2018. However, out of those 20 projects, the three projects described in Table 1 were completed with significant cost variations from the early-stage construction cost estimates, which were prepared by you in 2015. Company’s investors are concerned about the situation as their decision on investment for each project was mainly based on this early-stage construction cost estimate prepared by the cost consultant.

You are required to select ONE of the listed three projects (see Table 1) and prepare a report to the company’s investors analysing in detail, the factors that influenced on accuracy of early stage construction cost estimate. The report should convey the message that even though you allowed for anticipated cost variations in your early stage cost estimate, those analysed factors caused final construction cost to vary significantly, which is beyond your control and beyond the limits of anticipation.

Your report is expected to include (also refer to ‘general formatting guide’ in this outline):

• Introduction and brief project scenario (suggested around 500 words)
You may develop the scenario further from the project details given in Column 2 in Table 1.

• Preliminary estimating method adopted in preparing the early stage construction cost estimate
You are required to assume a suitable preliminary estimating technique for the chosen project scenario with justifications for your choice and describe how you used this method to prepare the early-stage construction cost estimate, with special emphasis on information availability and assumptions made at the time of preparing the estimate.

• Detailed analysis of the chosen factors that influenced on the accuracy of early stage construction cost estimate and caused the final construction cost of the project to vary significantly from it. (suggested around 1000 words including a brief conclusion)
You are expected to select 2 to 3 factors from the predicted list of factors given in Column 3 in Table 1 for the chosen project scenario.
It is expected that you would collect information from the industry sources, research findings from relevant journal articles and books to support your discussion. Ref

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