Factors Affecting the Efficiency of Construction Cost Estimation in Government Agencies: A Case Study of the Use of Factor F

Abstract

The construction cost estimation for budgeting application of government agencies has been an important element for
 
considering the importance and value of construction work. Such cost estimation has comprised the cost of the work and expenses for construction (Factor F). The Factor F has been a variable used to calculate the total amount of the construction cost. In order for the cost estimation’s accuracy and closeness to reality, the calculation of Factor F must be in accordance with the rules for calculating the average price of construction work stipulated by the Comptroller General's Department. From research of the case study data, construction budgeting application documentation of sub-agencies to enter the overall budget consideration process of a higher education institution during the years 2016-2024 from a representative sample of 357 items, it was found that the use of Factor F value deviated from the specified rules. The most common cause was the determination of the loan interest rate percentage inconsistent with the current announcement of the Comptroller General's Department (56.02%), miscalculation (41.74%) and construction classification inconsistent with job description (2.24%). These research results help identify the causes and problems of the calculation of Factor F, which can be used to develop guidelines to prevent various errors and revise the construction cost estimation process more accurately. This is also useful for developing the potential of civil engineering and construction personnel for inability to avoid and fix previous defects effectively