Evaluation of Methods to Retain Cost Estimating Competencies Using Structural Equation Modeling

Abstract

The greatest challenge facing the cost estimating profession over the next decade is probably the high retirement rate of senior estimators who have critical knowledge and skills in estimating. Engineering and construction companies in the construction industry are confronted with an imminent need to develop and employ effective strategies and methods to retain experienced estimators’ knowledge and skills and successfully transfer to junior estimators. This study investigates the effectiveness of 10 traditional and advanced methods in retaining and developing core estimating competencies. In total, 77 completed questionnaire survey forms were collected from the Construction Industry Institute member companies and American Society of Professional Estimators. The structural equation modeling (SEM) method was employed to assess the effectiveness of each method in retaining estimating competencies by analyzing empirical cause and effect relationships between methods and estimating competencies. The SEM analysis results were also used to prioritize methods to effectively retain estimating competencies. The results show that implementing advanced methods has a higher effect on the development of estimating competencies than traditional methods do. The results also indicate that by implementing both traditional and advanced methods, the estimating competencies of an estimating workforce can be effectively improved. The findings of this study are expected to significantly assist engineering and construction companies in designing effective training and education programs for their estimating workforce’s competency development and improvement.