AN INTERACTIVE ALGORITHM TO EVALUATE PROJECT COST ESCALATION

The existing methods of cost control do not assist management in forec asting the attributes which might be responsible for generating potent ial cost escalation in line items (or cost centers) in a project. The urgent need for a method which is capable of predicting the probable p roject cost escalation and identifying the attributes which might be r esponsible for the escalation is evident from the large number of proj ects finishing over budget. The model presented in this paper not only assists management in predicting the probable project cose escalation , but it also identifies the risk attributes and their associated cost influence.