Cost Analysis For Development of Risk Management Method Relationship between the rate of contract increase and the rate of cost increase

This story report is making a try to study out the relationship between the rateof contract increase and the rate of cost increase through the quantitative analysis, whichwa conducted with use of the available information on cost and construction conditions store in the information data base for the Project Experience & Construction Record.In the analysis, the first step was to compute the rate of contract increase and the rate of cost increase in all the cases of 169 Projects obtained in the information data base, putting use of the amounts at the time of preparing the budget and those at the time of completion.Then, the regression analysis was made using the former as the explanatoryvariable and the latter as the object variable.After sorting all the Project construction data according to the conditions suchas contract method, tendering classification, etc., the analytical examination was carriedout as to the rate of cost increase to the increase of contracted amount.As a result, it has been verified that the traditional non-quantitativeempirical rules can be represented numerically, and that the results gained by the analysis are theinformative source of great significance as a basic and fundamental tools and means foranalysis in developing risk management method.