| Title |
A Budget Estimation Model for Military Facility Construction Using Cost Index |
| Authors |
Park Jong-Won ; Son Bo-Sik ; Lee Hyun-Soo |
| Keywords |
Military Facility Construction ; Construction Cost Index ; Historical Cost Data ; Budget Estimation ; Escalation |
| Abstract |
As a large portion of defence budget are alloted for military facility construction, reasonable budget estimation in the planning stage has been officers' main concerns. However the proper estimation of construction cost is difficult to be carried out due to the absence of systematic criteria. To improve the budget estimation for military facility construction, this study proposes a cost index model which can convert historical cost to current cost. Thus the developed cost index would enhance effectiveness of budget estimation process and support reasonable decision making. This model is developed through analyzing historical cost data with statistical methodology. The study is executed in following processes. First, factors which affect construction cost for the most are selected by analyzing historical cost data. Second, the selected factors are categorized into material costs, labor costs and equipment costs, and weights of those factors are calculated by dividing the cost of each factor by total item costs. Last, cost index is developed by using weighted average method. |