The principal factors affecting construction project overhead expenses: an exploratory factor analysis approach
Estimation is the first step in the project development process. Information technology provides an efficient platform for estimators to obtain quotations and specifications for their bid estimates. However, in practice, project overhead estimation relies heavily on the professional judgement and intuition of the estimators. This reduces the overall accuracy and reliability of the bid and a better understanding of the factors affecting project overheads is fundamental before any improved estimating methods can be devised. Unfortunately, the published literature on this topic is very limited. Using exploratory factor analysis, we aim to bridge the current knowledge gap by highlighting the principal factors affecting project overheads. Questionnaires detailing 27 variables were sent to quantity surveying managers of large contractors in Hong Kong. Seventy-nine valid responses were analysed by exploratory factor analysis. From the results, eight factors were extracted with their latent properties identified with reference to the expert opinions collected from telephone interviews. The findings clarify some misconceptions about the factors affecting project overheads and provide useful evidence for practitioners and researchers to understand project overheads. Estimators who address the identified factors when assessing future project overhead costs can improve the accuracy of their cost estimates and project budgets.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 30 (2012)
Issue (Month): 10 (October)
|Contact details of provider:|| Web page: http://www.tandfonline.com/RCME20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/RCME20|
When requesting a correction, please mention this item's handle: RePEc:taf:conmgt:v:30:y:2012:i:10:p:903-914. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.