Construction is a major industry in the United States. In 2010, over $506 billion was spent in construction and construction-related activity, amounting to over 3.4% of Gross Domestic Product (GDP). $21.2 billion, or 0.6% of federal outlays for 2010 was spent on military construction. This accounts for nearly 4% of total construction annually. This study examined three variables in the life of an Air Force military construction (MILCON) project: the programmed amount (PA), the contract award (CA), and the final current working estimate (CWE). These variables, respectively, reflect the initial planning budget (PA), the actual contractor's estimate and bid (CA), and the final, actual cost of the project to the Air Force (CWE). Statistical hypothesis tests showed there is an appreciable difference between each variable. Generally speaking, the PA is higher than the CA, but the CWE approaches the PA at end of the project. The study suggests several reasons for this, including contractor estimate errors or "bad faith", non-inclusion of inflation, and initial estimate inaccuracy. The results of this study can be used to better analyze contractors' bids as well as initial budgetary estimates to get a more accurate picture of the cost of a particular MILCON project. / A Thesis submitted to the Department of Civil and Environmental Engineering in partial fulfillment of the requirements for the degree of Master of
Science. / Fall Semester, 2012. / November 5, 2012. / Cost Engineering, Government Construction, Military Construction / Includes bibliographical references. / John O. Sobanjo, Professor Directing Thesis; Yassir Abdelrazig, Committee Member; Lisa Spainhour, Committee Member.
| Identifer | oai:union.ndltd.org:fsu.edu/oai:fsu.digital.flvc.org:fsu_183222 |
| Contributors | Barnes, Robert J. (authoraut), Sobanjo, John O. (professor directing thesis), Abdelrazig, Yassir (committee member), Spainhour, Lisa (committee member), Department of Civil and Environmental Engineering (degree granting department), Florida State University (degree granting institution) |
| Publisher | Florida State University, Florida State University |
| Source Sets | Florida State University |
| Language | English, English |
| Detected Language | English |
| Type | Text, text |
| Format | 1 online resource, computer, application/pdf |
| Rights | This Item is protected by copyright and/or related rights. You are free to use this Item in any way that is permitted by the copyright and related rights legislation that applies to your use. For other uses you need to obtain permission from the rights-holder(s). The copyright in theses and dissertations completed at Florida State University is held by the students who author them. |
Page generated in 0.0019 seconds