Engineering Economist, vol.65, no.2, pp.135-157, 2020 (SCI-Expanded)
In the globalized business world, construction companies start to seek new opportunities to invest on an international basis in order to gain profit. Therefore, construction companies have to conduct not only national projects but also international projects to be competitive. However, although these international projects can be profitable, the construction companies face many challenges in the management of these projects due to the country-specific problems and conditions. This can lead to variation in the management of similar projects conducted in different countries. In particular, cost estimation in different countries is a challenging task for construction companies. Therefore, in order to provide insights about construction cost in different countries, different organizations publish construction cost indices. However, some criticisms related to the reliability and usability of these indices are stated. In this study, a new concept, called a cost map, is proposed by developing a framework based on twelve macro level parameters. The cost map is applied to 37 European countries. The data related to these parameters are collected using different databases. European countries are clustered by using a self-organizing map. As a result of this study, the cost map is determined as a reliable and convenient tool for a cost comparison.