Procedia Engineering 54 ( 2013 ) 625 – 635
1877-7058 © 2013 The Authors. Published by Elsevier Ltd. Open access under CC BY-NC-ND license.
Selection and peer-review under responsibility of Department of Civil Engineering, Sebelas Maret University
doi: 10.1016/j.proeng.2013.03.057
The 2nd International Conference on Rehabilitation and Maintenance in Civil Engineering
The Influence of Solutions Adopted at the Stage of Planning the Building
Investment on the Accuracy of Cost Estimation
Agnieszka Dziadosza*
a
aPoznan University of Technology, Poland
Abstract
The accomplishment of building investments is a long-lasting process resulting in considerable
financial outlays. Crucial decisions concerning construction solutions, technology of execution,
organization of construction works are taken at the stage of planning and programming. At that
time it is possible to predict the budget of an undertaking when it comes to preliminary cost
estimation. However, taking accidentality, uncertainty of results, appearance of factors that were
not planned earlier into account, it is important to know the total value of works. The solutions
adopted at the stage of planning are reflected in costs in life cycle and determine the kind and
range of possible risks. PERT approach used in the paper allows to present the costs of separate
stages of the whole undertaking in ranges along with the probability of appearance.
© 2012 Published by Elsevier Ltd. Selection and/or peer-review under responsibility of
Department of Civil Engineering, Sebelas Maret University
Keywords: cost estimation; planning investment; life cycle cost; risk analysis.
1. Introduction
The decision-making on the realization of investment project is usually preceded by
a number of economic analyses, careful selection of variants and solution optimization.
A proper method of assessment is chosen based on its usefulness during the verification
of variants of investment projects (Kaplinski 2007). Profit maximization and the
possibility of cost minimization are both of great importance to an investor.
Technological progress and constant changes influence an increase of the investment
cost. Therefore, an in-depth cost analysis seems to be important not only at the stage of
* Corresponding author.
E-mail address: Agnieszka.Dziadosz@put.poznan.pl
Available