Exposition of Conceptual Construction Cost: a Review of Modelling Techniques

Conceptual cost is critical for providing a cost framework for project execution, and the outcome of the cost framework determines the viability of a project. In the last 50 years, many models for early prediction of cost or price of construction projects have been developed and classified based on criteria such as modelling technique. The existing classification system for conceptual cost requires a reappraisal. This is to ensure that the classification system is relevant as new conceptual cost models are developed. A systematic review of modelling techniques for early prediction of cost or price of construction projects is the aim of the current work. Compilation of various early construction cost and price prediction techniques was carried out by reviewing the literature. In the review process, it was observed that conceptual cost models could be classified as either, mathematical, empirical, simulation or hybrid models. A revised classification system is proposed for grouping conceptual cost models based on model principle, function and implementation. The review provides an update on conceptual cost models as an addition to the existing knowledge base of cost modelling in the architecture, engineering and construction industry.