�ˌ8�|Dž��L�ը]�ڪʁa�T���X;]��:+ The other processes are: [1] Order-of-magnitude. ?Z�Dc�aes� [&nX5�&R:������U�p/�j������j������c. �+�tlh����j9���� �5�~.�f��R����q^����t�ّ�D/x�0�v.`�a*����A�io|\D����wW�,�]�z7���@�-l���x 208 0 obj <>stream You can also take their advice on various tools and techniques that can be used to estimate similar kind of project. Expert judgment – estimation based on previous knowledge and experience of the estimator. !���.U�"��`$zy&X�B��5 "�H@��4q�f옶�hu�_����t��8��%�d�mW0�Jݽ�4��ǀ�p�s�������~��H �L*m��ԇ�� ��ІІ����_Y�U:Njd0>s:'1�uX���6l�\��e����f5�(��נ|� g�]+�uV�[H0h���;>��0��+�[�A���3�Y(L^ʊ�1x�0��f�A��%\U�K^�\K����N〘�K�,���D KEYWORDS: project, cost, management, construction. It has not been confirmed a significant relationship between the level of education of project managers and using bottom-up approaches, cost estimates of construction projects. '�R��������g���y�w[.馢�픅jD�Y����� ����R��OFN�h-$���6ߧ�8g�r�7��g��ҵ!e���#|G}�Ð�1h���\i�9XI$��T�S&���Z�צr�bW ��fW�Į�G�b0��e�Cn���n�\܂5'�ą k{���$��g�A2�y�@�=E3J���딥`p��4E�>t*�����4�4��=��N��&JOo��).�V�L���/�"N� ���Ãp�'c��D��z�������w �X�w�/y��W��]�μG|�P�u�q��벬{!��?��8�荣���43"��cm�����vv��.>gųN����6�y�"�c>Bb�����}� p�K�"�ȯ/g���G�����׫����'o�v����� Initial, high-level estimates are often used in the earliest stages of project planning and can determine whether or not a project is ultimately pursued. In this article, you will learn about the types of costs associated in a project, which are then explained by using examples. Design Estimates : The progression of the designs throughout the design and planning phases of the project is dependent on the design estimate. Types of cost estimates in project management - 1. What Is the Difference Between Estimated Costs & a Rough Order. Detailed Estimates:4 3. Cost estimates are accurate, Schedule is realistic 3. ���C쀢�f� F��(���9�a��tׁ���Ո��C��j��%��*�i�����X*�l 04÷/"�F� */�M�0��]� }���v��6)��� �N�x�{��p�#C1�^��ԫ�j���n�ǣ��Bj����!i/C���E �&��~��P�*�]])y?��m��Q�j^� Estimating cost is an important process in project management as it is the basis for determining and controlling the project budget. �Gf U䑤ߑX�k��z�\Q�+� Contents1 Different Types Of Estimates:2 1. An example is the hourly wage of a manufacturing employee who is producing a component of an end product. Risk factors are recognized and successfully assessed 4. 4 0 obj hެTmk�@�+��ed��w(��4�aiC�-����x8������Ig��h�R�d�N�=�`�0"'��]��[Dp�mb��;$`hw g�paruEgUQ5Q-7 In lieu of the bottom-up (activity cost breakdown) method of estimation described above, redesign and implementation costs may be estimated by using a top down approach. (D=�چ� �. Preliminary Cost Estimate, 2. In other industries, a very detailed estimate will suffice. The term estimate implies uncertainty and ambiguity where information is unknown and/or incomplete. Order of Magnitude Also called Rough Order of Magnitude (ROM) or Rough Cost Estimate, or Conceptual Estimate, this type of estimate is used for project screening, or deciding which among several projects to proceed with. The process of developing a comprehensive project cost estimate is critical for a project to be adjudged successful on completion. %PDF-1.5 endobj L��n���)�����L� �����~iɷ��r�����yo�sc4>;tz�N�ŭ5No���ID^�� �c����8��ޢ�Nu��Ik���^�"�y"�T�*$���Z�H���1>�Vc"���\��Y'�'�ϫ4�T���Ϡf�i��D�F�����ba��%�[��B\O��p���ڒ,JM���1�����m�E v�t�*xRn�����P���5�3����b�f���bR��!mfX� �D��f�-Yg iBζ݊�� /��'i��6r��.�B��6�{+'Ɛ`��N5Ě[pZ'(������T�vY]�AV�ĉ�ɰ?�fY���6�R5�10�Db��w�w6O-H55;�dc2%M~�q����=�ao���Y��{����n&}oH�L�DFm��:şLCȥ+t�7�h;�suw���㾟���&� �ؕrn^0���$j`�ab�.˷B5���у��� ������yX�l�m7�5w��=ȹ��B�$z�����I���2u/�RH--�4��T�����f�`����S�4V;k&�~9��1k3���z�`��P��� �~�QL���D+x�F ����?��p�O�f9sg}�D)����S^���1������6�I3�"�J��g�W�!�ȗ'R��|�;��Q��B�'�����T�&d� �U�m�d�9�viJ�'��c�\��a�vhvs L�n���C�A�޴APm����e�I�%Opթ��j���Ѩc��+���v 1 Introduction to the Challenge of Cost and Value Management in Projects 1 1.1 Importance of Cost and Value Management in Projects 2 1.2 Keys to Effective Project Cost Management 6 1.3 Essential Features of Project Value Management 8 1.4 Organization of the Book 9 References 14 2 Project Needs Assessment, Concept Development, and Planning 17 Large infrastructure, mining, or industrial projects use this model. 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