Developing a Data Collection Plan for Pre-tender Cost Estimation in Design Phase

Abstract

Pre-tender cost estimation in the Design phase is a crucial step in the plays a crucial role in guiding clients' decisions for long-term financial commitments. It provides a financial roadmap, helps manage risks, supports decision-making, and ensures that projects are executed within budgetary constraints while meeting project objectives. The objective of this study is to understand the pre-tender cost estimation processes in the case company, to develop a Data collection plan for the Pre-tender cost estimation in the Design Phase.

This thesis follows a research design comprising of four stages. The initial stage involves an in-depth literature review focused on discovering existing knowledge and best practices related to the identified improvement areas, forming the basis for a conceptual framework. In the second stage, a current state analysis is undertaken using quantitative and qualitative data, to map the process and identify key improvement areas, and development of data collection plan. In the third stage, initial proposals are collaboratively developed to enhance the specified improvement areas within the tender preparation process, building upon insights gained in previous stages. The fourth stage entails validating and prioritizing the proposals, formation of data collection plan incorporating feedback from executives in the case company.

This thesis concludes with a recommendation to enhance the pre-tender cost estimation process. This includes assigning a dedicated process, producing a structured data collection guideline, and scaling up the plan for diverse projects like tram and railways. Specific target levels for initial improvement, sharing best practices, and setting up a database for recurring questions are suggested. These measures collectively contribute to a more systematic and efficient pre-tender cost estimation approach for the case company's infrastructure projects.