A Novel Concept for Steel Building Cost Estimation in Shipbuilding Using Process and Product Similarities

Abstract

Accurate cost estimates are essential for staying in business in a competitive shipbuilding industry. With new technologies and the energy transition creating an ever-changing landscape, traditional cost estimation methods based on product specifications can no longer keep pace. The need for improvement especially arises for Engineering-To-Order projects, considering that the profit margins are narrow. The use of process information in the estimation process could increase the reliability and flexibility of these estimations. This article presents a concept that utilizes graph theory to include process information in the cost estimations applied to steel buildings. This concept is specifically suited for the early stages of Engineering-To-Order projects.

Keywords

• cost estimation method
• graph theory
• Engineering-To-Order
• pre-contract
• shipbuilding
• steel building