A neural network based model for cost estimation of industrial building at the project's definition phase Shafiee, AliReza; Alvanchi, Amin; Biglary, Siamak
Annually there are many small-scale industry projects implemented in Iran, most of which are financed by local financial institutes. The financing agreements between project owners and financial institutes are usually formed and finalized during the initiation phase and are based on feasibility studies done at the early stages; before project design and construction begin. However, in many cases actual costs of projects exceed the costs estimated in feasibility studies which have been approved by financial institutes. Limited financial resources in the country, from one side, and the lengthy process of increasing the project financing limit, from another side, cause delays in the project completion. In many cases the cost increase and the delay make the entire project unfeasible; projects stop forever; a big waste of money is the result. To respond to this issue and improve accuracy of cost estimation prior to the design and construction phases, in this research we have developed a new cost estimation model based on neural network method. At this stage of the research the model is implemented and tested for the main industrial building, which usually has a portal frame structure. Results indicate a reasonable improvement in accuracy for the estimated costs.
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