Highway Construction Cost Estimation: Identification and Analysis of the Owners’ Perceptions on Cost Drivers

Abstract

Highway construction cost estimates in the early stages of the project can be characterized as quite challenging and risky. Determination of the cost drivers on which the cost estimates are based requires a certain effort (time and money), which makes cost estimates even more challenging. In order to determine the owners' perceptions on the cost drivers from the previously proposed list, an empirical research (questionnaire survey) was conducted where the respondents rated the degree of influence that each cost driver has on highway construction costs and the degree of effort that needs to be invested to establish a cost driver's value. The survey results indicated that owners invest great efforts in the development of project documentation, but also owners' concerns regarding environmental protection issues. Also, they consider contractual cost drivers, such as procurement method, to be very important cost drivers for the highway construction cost estimation.