The cost and duration estimation process is important to be monitored and controlled in construction projects. Estimation variation from actuals presents a problem when attempting to complete a project on planned time and budget. Various studies cover project performance monitoring with different cost and time performance indices. Nevertheless, project monitoring techniques do not take advantage of the available data to assess the performance and accuracy of estimates developed by the estimation team.
This research proposes using statistical process control (SPC) to assess the consistency and stability of the estimation of activities’ costs and durations. The proposed system calculates the deviation of the estimated costs and durations from the actual values. These calculations are the activities’ indices that are used to plot the control chart. The process capability analysis (PCA) is used to determine the accuracy deviation of the estimations from the organization’s targets.
Results of the proposed system application to a real project determine the activities that have inaccurate cost and duration estimations. This result helps the estimation departments to analyze reasons for inaccurate estimations. The proposed system is an easy, effective tool for continuous improvement to the performance of the estimation department.
Some projects are classified as troubled projects when calculating the status of the project with reference to estimations, while the estimations themselves are troubled and need to be corrected. The proposed system of this paper is considered a novel approach by using SPC techniques such as control charts and process capability analysis for continuous monitoring and assessing of cost and duration estimation process performance to improve process accuracy and increase the credibility of estimation teams or departments.
