Statsbygg's Cost Estimation Method - Analysis and Evaluation

Abstract

This research is in the field of project management and it examines the cost estimation methodologies, the process and development of project s cost. The focus of the research was on Statsbygg cost estimate methodologies. Four project were analyzed and the development of the project s cost was examined.

Purpose The objective of this thesis was to gather information regarding cost estimation from public construction built in Norway by the Norwegian Directorate of Public Construction and Property: Statsbygg. In addition the research aimed to document the current stats of project cost estimation and cost development within Statsbygg. These information were analyzed and evaluated, and suggestion improvement of the cost estimation methodologies.

Approach In the first place, three research questions were defined and used as guidelines. A literature review was performed where project cost was defined. The review covered project management technics, cost management and cost estimation methods. Thereafter was Statsbygg cost estimation process, methods and guideline illustrated. A case study was performed on four completed project from Statsbygg, information examined from Statsbygg database and project s team members interviewed to get more insight of the projects. These four project were analyzed and it was intended to explain the development of the project s cost.

Findings The Statsbygg s follows well detailed handbook guideline and regulation when performing cost estimation. Their method is effective and provides good results. There is only slight increase in the cost development throughout the project phase.