Cost Estimation Model for Highway Projects using ANN

Abstract

Construction and maintenance works are carried out by contractors for a period of few months to few years. Those contracts show cost variations between the actual and estimated costs. For example, cost estimation of 3 out of 5 projects from 2015-19 in Trashigang Dzongkhag have not only been underestimated but the actual costs are on average 27% higher than the estimated costs.  Moreover, researches reveal that there are issues in cost estimation at the conceptual stage affecting the project progress and cost (Flyvberg, 2002). In this study neural network has been used to predict the actual cost based on the initial estimation and duration. During the study, it was discovered that the neural network demonstrated its usefulness as a tool for cost estimation and could be effectively employed by decision makers. However, it is important to note that the neural network is not designed to replace the entire cost estimation method. Instead, it should be regarded as one of the tools to be utilized alongside other methods when estimating costs.