TITLE:
Method for Estimating of Construction Cost of a Building Based on Previous Experiences
AUTHORS:
Cláudio Ricardo Bettini, Orlando Celso Longo, Luciane Ferreira Alcoforado, Alana Caroline Gamba Maia
KEYWORDS:
Real Estate Development, Construction Cost Estimation, Cost Forecast, Cost Estimation Error
JOURNAL NAME:
Open Journal of Civil Engineering,
Vol.6 No.5,
December
5,
2016
ABSTRACT: In a real estate project, the estimated cost of construction and the revenues generally represent together the most important values of its feasibility study. When a decision of undertaking a project is made, often there are few definitions of what is about to be constructed, and frequently not enough to ensure the accuracy of the estimated costs. Considering a global tendency on reducing margins of return over the real estate markets, slight variations of the construction cost can jeopardize the success of the whole real estate enterprise and even the financial stability of the builder or of the developer. This article aims at presenting a method of estimating the building construction costs applicable at the stage of feasibility studies, being able to provide acceptable errors.