Analysis of Cost-Estimating Competencies Using Criticality Matrix and Factor Analysis

Abstract

Perhaps the greatest challenge facing the cost-estimating community over the next decade is the loss of knowledge and experience of highly experienced estimators because a high percentage of them are retiring, and a shortage of qualified cost estimators is evident in the construction industry. This study identified 23 core estimating competencies classified into skills, knowledge, and personal attributes and also quantified the degree by which new estimators lack each competency. In total, 228 completed questionnaires were collected through the Construction Industry Institute member companies, through the Association for the Advancement of Cost Engineering International (AACE-I) and the American Society of Professional Estimators (ASPE) workshops. An estimating core-competency criticality matrix was developed to prioritize competencies on the basis of the combined effects of the level of importance of each competency and its associated gap between the ideal and actual level of competency. The factor analysis method was applied to investigate the correlation effects of the 23 estimating competencies, which resulted in seven core estimating competency factors representing the core estimating competencies. The findings of this study can help companies in the construction industry assess their estimators’ capabilities and design appropriate training programs for their estimators on the basis of their specific needs.