A Data-Driven Procedure for Cost and Risk Control in Construction Investments: Quantifying Budget Gaps via Expert Scoring and Probabilistic Simulation—Evidence from a Heritage Hotel Project

Risk management is critical to maintain consistency between estimated and actual costs in construction investment projects, especially those that incorporate tourism and heritage components. This study aims to quantify the impact of risk factors on construction investment costs and to estimate an updated maximum project budget at a defined confidence level using an integrated expert-based and probabilistic approach. The approach combines a Frequency–Impact matrix, weighted scaling, and PERT/Monte Carlo simulation, thereby transforming expert judgments into comparable numerical parameters suitable for predictive modeling. The methodology is applied to the rehabilitation of the Esmeralda Hotel project in Cuba, a heritage asset characterized by high cultural value and technical complexity. The results quantify the effects of prioritized risk factors, compute their impact coefficients, and re-estimate the project’s upper budget limit at a 95% confidence level. The findings show that risk drivers associated with higher-complexity construction processes concentrate the main vulnerabilities and explain most of the increase in total cost. In addition, the analysis indicates that contingency margins established by regulation are insufficient to absorb the project’s observed variability. The proposed model supports proactive budget control by anticipating cost deviations, improving resource allocation, and strengthening decision-making under high uncertainty. Its flexible structure enables adaptation to different project types and serves as a practical decision-support tool for investors, designers, and project managers seeking greater financial accuracy and reduced risk of cost overruns.

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Publication Details

Journal
Buildings
Published
2026-04-02
DOI
https://doi.org/10.3390/buildings16071410
Primary Topic
Construction Project Management and Performance
Type
article
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article

A Data-Driven Procedure for Cost and Risk Control in Construction Investments: Quantifying Budget Gaps via Expert Scoring and Probabilistic Simulation—Evidence from a Heritage Hotel Project

Reyner Francisco Pérez-Campdesuñer, Alexander Sánchez-Rodríguez, Silvia Dotres-Zúñiga, Gelmar García-Vidal et al.
Buildings
Construction Project Management and Performance
article

A Data-Driven Procedure for Cost and Risk Control in Construction Investments: Quantifying Budget Gaps via Expert Scoring and Probabilistic Simulation—Evidence from a Heritage Hotel Project

Reyner Francisco Pérez-Campdesuñer, Alexander Sánchez-Rodríguez, Silvia Dotres-Zúñiga, Gelmar García-Vidal, Rodobaldo Martínez-Vivar, Libys Martha Zúñiga-Igarza
article en

Abstract

Risk management is critical to maintain consistency between estimated and actual costs in construction investment projects, especially those that incorporate tourism and heritage components. This study aims to quantify the impact of risk factors on construction investment costs and to estimate an updated maximum project budget at a defined confidence level using an integrated expert-based and probabilistic approach. The approach combines a Frequency–Impact matrix, weighted scaling, and PERT/Monte Carlo simulation, thereby transforming expert judgments into comparable numerical parameters suitable for predictive modeling. The methodology is applied to the rehabilitation of the Esmeralda Hotel project in Cuba, a heritage asset characterized by high cultural value and technical complexity. The results quantify the effects of prioritized risk factors, compute their impact coefficients, and re-estimate the project’s upper budget limit at a 95% confidence level. The findings show that risk drivers associated with higher-complexity construction processes concentrate the main vulnerabilities and explain most of the increase in total cost. In addition, the analysis indicates that contingency margins established by regulation are insufficient to absorb the project’s observed variability. The proposed model supports proactive budget control by anticipating cost deviations, improving resource allocation, and strengthening decision-making under high uncertainty. Its flexible structure enables adaptation to different project types and serves as a practical decision-support tool for investors, designers, and project managers seeking greater financial accuracy and reduced risk of cost overruns.

BuildingsVol. 16(7)
University of Holguín (CU), Universidad UTE (EC)
Decent work and economic growth
Openalex Percentile: Top 32%
Construction Project Management and Performance
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