Submitted:
01 December 2025
Posted:
02 December 2025
You are already at the latest version
Abstract
Keywords:
1. Introduction
1.1. Problem Statement
1.2. Research Main Objective
1.3. Research Questions
2. Literature Review
2.1. Construction Cost Estimation
2.2. Existing Burdens of Construction Cost Estimation
3. Methodology
3.1. Participant & Data Collection Procedure
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Can you describe the typical cost estimation workflow in your organization?Prompt: What are the major stages and decision points?
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What are the key responsibilities of a cost estimator during the pre-construction and construction phases?Follow-up: Which internal or external parties are typically involved at each stage?
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What types of documents or information are exchanged between project stakeholders during the estimation process?Follow-up 1: What specific information does the estimator need to perform an accurate estimate?Follow-up 2: From which stakeholders is this information typically obtained?
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How is information typically exchanged with subcontractors during the estimation process?Prompt: Project timeline, information type
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What information is typically included in an initial or conceptual estimate?Follow-up 1: How is the estimate refined over time? What are the next steps after the initial estimate?Follow-up 2: How does the estimate evolve or change prior to and during construction?Prompt: What types of updates occur, what information drives those changes, and who is involved?
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Do you follow any specific estimation templates or standards?Prompt: For example, UNIFORMAT II, MasterFormat, or custom formats.
- 7.
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What are the main burdens or challenges you face in the current estimation workflow?Prompt: Consider repetitive, manual, time-consuming, or error-prone tasks.Follow-up 1: Who is typically involved in these burdened tasks?Follow-up 2: Can you describe these burdens in detail?Guiding prompt: Why do you consider this task or process burdensome? What factors contribute to its complexity or inefficiency?
- 8.
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What specific support during the estimation process could benefit from AI-integrated assistance?Prompt: Where do you believe AI could reduce burden, improve automation, accuracy, or support overall decision-making?
4. Results
4.1. Existing Cost Estimation Workflow
4.2. Burdens in Construction Cost Estimation
4.3. Proposed Framework for Generative AI-Based Cost Estimation
5. Discussion
6. Limitations & Future Directions
7. Conclusion
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| Study | Challenges |
|---|---|
| [39] | Time pressure, poor documentation, reliance on judgment. |
| [10] | Estimator bias, lack of learning from past projects. |
| [6] | Scope uncertainty, stakeholder misalignment. |
| [25] | Manual QTO, BIM underutilization, model incompleteness. |
| [27] | Labor-intensive take-offs, shift in cost manager role under BIM. |
| [26] | Need for shared data standards in 5D BIM. |
| [23] | Optimism bias, strategic misrepresentation. |
| [34] | Cultural bias in estimating, systemic underestimation. |
| [3] | Inconsistent cost driver selection, lack of model adoption. |
| [12] | Technological and cultural barriers in BIM-based estimating. |
| [40] | Volatility, lack of probabilistic forecasting. |
| [32] | ML model inconsistency, lack of validation standards. |
| [41] | Data fragmentation, model isolation, lack of system integration. |
| [22] | Sparse early data, opacity of AI models, low adoption. |
| [29] | Fragmented estimation approaches in infrastructure. |
| [8] | Manual spec review, NLP-assisted automation. |
| [42] | Disparate data sources, need for digital standardization. |
| Estimation Task Burdens | Explanation | What specific help from AI could help reduce your burden? |
|---|---|---|
| Aggregating Quantities | Various formats for Quantities: Quantity take-offs are not uniform in titles, descriptions, and file formats, varying based on options such as 3D and 2D take-offs, which takes a long time for estimators to format. |
|
| Referencing Enterprise Historic Cost | Decentralized and Underutilized Historic Enterprise Data: The current practice underutilizes historic data, relying more heavily on estimators’ memory and gut-based unit costs, which leads to slower estimating, inaccuracy, and makes it harder to compare subcontractor proposals with historic data. Without better utilization of this data, pricing may not align with past costs, leading to less accurate decisions. There is a need to improve the utilization of historical data for accurate and expedited estimation, to ensure consistency with previous projects, and to maintain accurate and competitive pricing. |
|
| Referencing External Cost Database | Difficulty in Matching Items: Not all items are found in the historical database; a manual process is required to find a suitable match from external cost databases, such as RS Means, Sage, etc. |
|
| Cross-verification with Project Specification |
Time-Consuming Cross-Verification Process with Project Specifications: The manual effort required to retrieve specifications from one tool while performing estimations on a different platform is inefficient and time-consuming To create a conceptual estimate, it’s a lengthy process due to the Different WBS structures for various projects, often leading to challenges like inconsistency and increased time requirements. |
|
| Evaluation Planning for Subcontractors’ Estimates | Manual Evaluation: It takes a long time, and there is a risk of overlooking items, as well as identifying template consistency, visualizations, and comparison with the conceptual estimate, which is not standardized across projects. |
|
| Evaluating Completeness in Subcontractors’ Estimates | Time-Pressure: It requires all manual efforts, often performed under tight deadlines, to verify the completeness of the estimation, as well as to rate and compare item groups among subs. |
|
| Metrics-Based Evaluation of Subcontractors’ Estimates | No Standard Evaluation Criteria and Human Biases: There are no standard metrics for evaluation. The top priorities are primarily completeness of the bid, cost, past performance, and length of the relationship. This also involves human biases in evaluation |
|
| Compiling the Final Estimate and Visualizing |
Multiple and Multitools: Creating the final estimate based on the selected subcontractor estimates and the self-performing trade estimate from the conceptual estimation file can take weeks. Comparing and visualizing data in different tools, such as Power BI, is another lengthy process due to the data being transferred to another tool. |
|
| Managing Changes | Lack of standardization: Due to the absence of a standardized change template, updating changes in the central estimation file is a manual process. |
|
| Version Control | Missing Versions: It’s always challenging to track changes related to a particular version, date, and its recentness, and end up using the incorrect version. |
|
| Data Re-cycling | Missing Data Recycling Practice: Past project data are lost oftentimes, or in silos or in printed papers, makes it challenging in populating final estimation into historic database for future references. |
|
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