Construction Contingency Reserve
Comprehensive Project Proposal
Regression Application toward Better
Management of Construction Project Budgets
Objective
This project plans to develop a methodology to estimate future projects’ costs and their appropriate contingency reserves for changing prices in constructional projects. Based on the methodology, recommendations will be given in order to change Ministry of Construction’s policies that relates to project budgets, and how to deal with the current policies if they are not changed.
Background Information many constructional projects had broken its budget. There are a lot of reasons, such as increasing scope, extending time, and inflation.
Following the method of constructional ministry, backup money equal with 10% total money for one year project, including both changing in scope and price. For longer than one year projects, the rate is 5% changing in scope and the rate for increasing price is computed base on the similar projects and using price index .
Theory:
P1 P2 P3
P1> P2 > P3
Factual:
P1 P2 P3
P1< P2 < P3
P1: General cost estimate.
P2: Contract price.
P3: Final cost.
Many projects had delayed because of breaking its budget.
Methodology
Using regression for statistics data to estimate the future value and define the budget’s demand margin with an appropriate confident.
Relevancy
This project will be applied knowledge that I gained from many classes, such as project management, applied statistics, operation management, and financial analysis.
Deliverables
Regression is a method that was used popular in economic. Microsoft office has many strong functions that supports for this method. Using regression is convenient for engineer to estimate the backup fee.
Justification of Project
The benefit of this project is finding a solution for the broken budget in
Regression Application toward Better
Management of Construction Project Budgets
Objective
This project plans to develop a methodology to estimate future projects’ costs and their appropriate contingency reserves for changing prices in constructional projects. Based on the methodology, recommendations will be given in order to change Ministry of Construction’s policies that relates to project budgets, and how to deal with the current policies if they are not changed.
Background Information many constructional projects had broken its budget. There are a lot of reasons, such as increasing scope, extending time, and inflation.
Following the method of constructional ministry, backup money equal with 10% total money for one year project, including both changing in scope and price. For longer than one year projects, the rate is 5% changing in scope and the rate for increasing price is computed base on the similar projects and using price index .
Theory:
P1 P2 P3
P1> P2 > P3
Factual:
P1 P2 P3
P1< P2 < P3
P1: General cost estimate.
P2: Contract price.
P3: Final cost.
Many projects had delayed because of breaking its budget.
Methodology
Using regression for statistics data to estimate the future value and define the budget’s demand margin with an appropriate confident.
Relevancy
This project will be applied knowledge that I gained from many classes, such as project management, applied statistics, operation management, and financial analysis.
Deliverables
Regression is a method that was used popular in economic. Microsoft office has many strong functions that supports for this method. Using regression is convenient for engineer to estimate the backup fee.
Justification of Project
The benefit of this project is finding a solution for the broken budget in