| Title |
A Study on Estimating Method for Actual Unit Cost Based on Bid Prices in Public Construction Projects |
| Authors |
Kang, Sang-Hyeok ; Seo, Jong-Won ; Park Won-Young ; Song, Soon-Ho |
| Keywords |
Historical Construction Cost ; Actual Unit Cost ; Bid Price ; Cost Estimation |
| Abstract |
It was found that Korean Standard of Estimate which has been used as the only basis of cost estimate of public constructionprojects had some side effects such as jerry-build construction and over-estimation because it failed to reflect the current priceand the state-of-the-art construction methods in a changing construction environment. Therefore, the government decided togradually introduce historical construction cost into cost estimate of public construction projects from 2004. This paper presentsanalytic criteria and a process model for deducing more current and reasonable historical construction cost for contract itemsfrom not only previous contract prices but also all of the other bid prices that were not contracted. The procedure of estimatingactual unit cost proposed in this paper focuses on the removal of abnormal values including strategically too low or high pricesand the time correction. In addition, basic research is conducted for the correction of actual unit cost through the analysis offluctuation of bid price depending on bidding types and rates of successful bid. It is anticipated that the effective use of theproposed process model for estimating actual unit cost would make the cost estimation more current and reasonable. |