Cost estimation: Strategic formulation based on affecting factors in government infrastructure

Abstract

Cost Estimation is an important part of infrastructure planning; errors in cost estimation will have an impact on infrastructure that does not achieve the project's performance in terms of cost, quality, time, safety, and environmental sustainability. This study aims to develop a strategy based on factors that are considered to influence cost estimates in government infrastructure. Using a mixed-methods approach (quantitative and qualitative analysis), this study will develop a strategy formulation that can be recommended to stakeholders. Quantitative analysis is conducted by distributing questionnaires and then performing statistical tests to identify factors that are considered to influence the cost estimation of government infrastructure. Qualitative analysis is conducted through focus group discussions (FGDs) to validate the results of the quantitative analysis. The cost estimation model in this study will provide recommendations for preparing sustainable strategies in government infrastructure, in line with technological advancements. Accurate cost estimation will help government budget efficiency activities in the optimal use of state funds to achieve development goals with maximum results and positive impacts on society, and optimising the use of financial resources to reduce waste, increase productivity, and ensure that each budget has a significant impact on infrastructure development and provides added value.