In your reading this week, you examined the factors that affect construction costs and, in turn, cost estimates. Cost estimators are responsible for
considering project size, quality, location, and time when they develop an estimate for a construction project. In addition, they must be aware of the market
conditions that currently are driving the construction industry. Whether it is interest rates, exchange rates, new technologies, the virility of the market, or
another market condition, cost estimators must research and weigh these factors each time they develop a cost estimate.
Imagine that your firm has recently accepted a contract to manage the construction of an overseas commercial construction project. You have been asked to
create a cost estimate for the project, a 50-story skyscraper in a major international city. You begin by evaluating the current market conditions that might
impact the project’s costs.
Which market condition do you currently believe to be the most influential to the cost estimation process? Why