Early Warning Signs in Risk Management: Improve Accuracy of Cost Contingency by Implementing Early Warning signs in Risk Management to prevent Cost Overruns

Despite the severity and high frequency of cost overruns in construction projects, it is considered a rule rather than an exception. This phenomenon occurs when the initially estimated budget does not suffice the actual costs needed to realise the project. Uncertainty and bias challenge the ability to make cost estimates. Incorrect estimates of...

Cost contingency and cost evolvement of construction projects in the preconstruction phase

The current literature discusses the methods to estimate the costs and cost contingency. The literature also distinguishes "known unknowns" and "unknown unknowns" contingencies. Little is written, however, about the evolvement of total project cost estimates during the preconstruction phase of construction projects. Moreover, not many studies...