CRITICAL ORGANISATIONAL FACTORS AFFECTING THE ACCURACY OF CONCEPTUAL COST ESTIMATES IN AN ERA OF BIG DATA

Purpose: This study seeks to identify organisational factors that affects the accuracy of early conceptual cost estimate then evaluate the influence of these factors so as to determine the organisational factors to be taken into account when preparing conceptual cost estimates. Design/Methodology: Case studies have been used to identify the relevant contributing organisational factors affecting the production of accurate estimate. This identification process is undergirded by a careful review of literature. The literature related with organisational factors was used as a primary source to investigate the influences of organisational factors on achieving accurate forecast. Through semi-structured interviews and review of accessible company documents, 11 factors have been highlighted. The respondents involved were professionals who have been actively involved in the production of early cost estimate for different types of projects. Findings: The outcome identified six critical factors among a host of others namely; organisation’s estimating culture, management commitment, communication, IT support (infrastructure and analytic capabilities), capacity development and lastly cost information database and sharing capability. The effect of any of these factors is fundamental and thus have impact on the outcome of estimating process from an organisational viewpoint. Research Implications: The use of interviews implies that the discussion of the result is largely subject to the researcher’s understanding and interpretation which might not truly reflect the responded position, this fact has a tendency to affect the outcome of the study. This study contributes to knowledge through identified organisational (qualitative) variables considered to influence cost estimates at three levels of an organisation, that is, individual, group and organisation within the ‘input-process-output’ framework. Practical Implications: This study recommends the need to consider organisational factors to ensure a more reliable cost estimate and by extension support decision making when determining the economic feasibility of construction projects. Originality/Value: The study revealed that the interplay of organisational variables and the ability to extract valuable insight to support decision making hold a practical implication for improving accuracy of cost in the construction industry.