Top PDF Project Cost Estimating Guide - Practice

Project Cost Estimating Guide - Practice

Project Cost Estimating Guide - Practice

Projects that are advertised for bids late in the season or after contractors have scheduled their work for the year, can expect higher bid prices. This is due to the lack of competition or contractor availability. Projects that are bid during a period of time when a large number of contractors are available may be bid more competitively. Competition could be a major factor of the cost of the construction. When the estimator expects just one bidder, then the project cost may be much higher than otherwise. On the other hand, if there are many bids, the project cost may be significantly lower than the estimate. Figure 10-2 represents the Comparison of the Low Bid vs. the Deterministic Estimate Based on Number of Bidders, as provided by WSDOT and Caltrans. There is a noticeably dramatic effect of the number of bidders upon the value of the lowest bid. The figure indicates a dramatic decrease in the project cost once three or more contractors bids on a project. Once the number of bidders is greater than 10–12, it looks as if the prices reach the bottom line (not much room to go down and remain in business).
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A technical review of BIM based cost estimating in UK quantity surveying practice, standards and tools

A technical review of BIM based cost estimating in UK quantity surveying practice, standards and tools

result, different formats are used for measurement works, particularly when procurement methods that do not require a detailed BoQ and tender documents are employed in a project. The format presented in SMM7 is specifically related to the preparation of BoQs, but not to cost estimates or cost plans. Therefore, SMM7 is unable to support quantity surveyors in providing cost advice due to its failure to suit the new approach of cost planning, particularly when capturing cost information (Cartlidge, 2011). However, there has been a tendency of adopting the SMM for cost estimating and cost planning in the absence of a specific set of standards to serve the practices, (Matipa et al., 2010; RICS, 2012). As a result, approaches that have been used by quantity surveyors for the measurement and description of building works for estimates and cost plans were inconsistent and frequently created doubts about the cost advice provided among the other project team members (Lee and Smith, 2010; RICS, 2012). The ambiguities in cost estimates caused by the absence of an appropriate standard triggered the RICS’s move towards deriving a new set of rules for measurement known as New Rules of Measurements (NRM) to encompass the purposes of trades based measurement and cost planning, and to sustain the needs of current construction market.
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Cost of capital in a wind generated electricity project : an alternative approach of estimating cost of capital

Cost of capital in a wind generated electricity project : an alternative approach of estimating cost of capital

According to Johnsen, 2005 the market premium can be interpreted as expected return on a well-diversified market portfolio in excess of risk free rate (Johnsen, 2005). In order to estimate the expected market return, we can look at the historical return that the market have given and use this as an indicator of future returns. According to Vaihekoski, 2005 the problem that arise is that we are looking at the observed past realized return and not the expected return and long time series are required in order to make precise estimates (Vaihekoski, 2005). According to Damodaran there has been, despite the developed consensus towards the use of realized return for estimating the forward looking premium large differences in the actual premiums observed and used in practice. There are many reasons for this difference, like the time interval of the data, choice of the risk free asset and whether or not choosing an arithmetic or geometric average of the returns (Damodaran). I have based my calculations using arithmetic average when estimating the return on the market portfolio. According to Johnsen (2005), the arithmetic average return should be used no matter the project’s length. The arithmetic average gives the growth in expected value of the currency while the geometric average yields the expected growth in the currency (Johnsen, 2005).
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A technical review of BIM based cost estimating in UK quantity surveying practice, standards and tools

A technical review of BIM based cost estimating in UK quantity surveying practice, standards and tools

The format presented in SMM7 is specifically related to the preparation of BoQs, but not to cost estimates or cost plans. Therefore, SMM7 is unable to support quantity surveyors in providing cost advice due to its failure to suit the new approach of cost planning, particularly when capturing cost information (Cartlidge, 2011). However, there has been a tendency of adopting the SMM for cost estimating and cost planning in the absence of a specific set of standards to serve the practices, (Matipa et al., 2010; RICS, 2012). As a result, approaches that have been used by quantity surveyors for the measurement and description of building works for estimates and cost plans were inconsistent and frequently created doubts about the cost advice provided among the other project team members (Lee and Smith, 2010; RICS, 2012). The ambiguities in cost estimates caused by the absence of an appropriate standard triggered the RICS’s move towards deriving a new set of rules for measurement known as New Rules of Measurements (NRM) to encompass the purposes of trades based measurement and cost planning, and to sustain the needs of current construction market.
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A Method for Estimating Maintenance Cost in a Software Project: A Case Study

A Method for Estimating Maintenance Cost in a Software Project: A Case Study

This paper proposes a model for estimating maintenance cost, based on the experience gained from previous projects. We take the COCOMO (Boehm, 1981) as the basis of our model, in which we incorporate indices measuring the maintainability of the product. The results of this research have been tested in practice; we summarize a report near the end of this paper. The practical application with empirical data has been carried out and reported elsewhere (Barranco-Garcı´a and Granja-Alvarez, 1996).

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A technical review of BIM based cost estimating in UK quantity surveying practice, standards and tools

A technical review of BIM based cost estimating in UK quantity surveying practice, standards and tools

result, different formats are used for measurement works, particularly when procurement methods that do not require a detailed BoQ and tender documents are employed in a project. The format presented in SMM7 is specifically related to the preparation of BoQs, but not to cost estimates or cost plans. Therefore, SMM7 is unable to support quantity surveyors in providing cost advice due to its failure to suit the new approach of cost planning, particularly when capturing cost information (Cartlidge, 2011). However, there has been a tendency of adopting the SMM for cost estimating and cost planning in the absence of a specific set of standards to serve the practices, (Matipa et al., 2010; RICS, 2012). As a result, approaches that have been used by quantity surveyors for the measurement and description of building works for estimates and cost plans were inconsistent and frequently created doubts about the cost advice provided among the other project team members (Lee and Smith, 2010; RICS, 2012). The ambiguities in cost estimates caused by the absence of an appropriate standard triggered the RICS’s move towards deriving a new set of rules for measurement known as New Rules of Measurements (NRM) to encompass the purposes of trades based measurement and cost planning, and to sustain the needs of current construction market.
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project UniSA a good practice guide for staff

project UniSA a good practice guide for staff

Project Plan Achieve the outcome/s for which your project was created. This is usually the high activity, high expenditure phase of project. Use the Project Management Institute (PMI) body of knowledge headings as a framework to manage your thinking. Ask yourself if there is anything you need to be doing today/this week/this month about the integration, scope, time, cost, quality, human resources, communications, risk, or procurement components of the project.

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Estimating Project Cost Contingency Beyond the 10% syndrome

Estimating Project Cost Contingency Beyond the 10% syndrome

Traditionally, contingencies are often calculated as an across-the-board percentage addition on the base estimate, typically derived from intuition, past experience and historical data. This estimating method is serious flaws. It is usually illogically arrived at and may not be appropriate for the proposed project. This judgmental and arbitrary method of contingency calculation is difficult for the estimator to justify or defend. A percentage addition results in a single-figure prediction of estimated cost, which implies a degree of certainty that is simply not justified. It does not encourage creativity in estimating practice, promoting a routine and mundane administrative approach requiring little investigation and decision making.
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Methodologies for estimating Levelised Cost of Electricity (LCOE) Implementing the best practice LCoE methodology of the guidance

Methodologies for estimating Levelised Cost of Electricity (LCOE) Implementing the best practice LCoE methodology of the guidance

The simple LCoE method also knows some drawbacks. First, the method does not provide insight in the financial performance of a specific project at all stages of its lifetime. Such a detailed financial assessment requires a full analysis of the cash flows at different stages of the project, where project costs and revenues may not be fixed over time. Second, the LCoE alone is not sufficient to conclude on a project’s profitability or competitiveness. Investors need other parameters as input to investment decisions, such as Net Present Value (NPV), Internal Rate of Return (IRR), margins etc.. Further, levelised cost estimates are highly dependent on the underlying data and assumptions used for the different cost parameters. Sometimes ranges are used to address the uncertainties in key parameters such as capital costs, fuel and carbon costs and operating costs. Determining the value of all (market) parameters of a LCOE calculation, may require significant efforts and may hence have significant costs.
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Appendices to Practice Guide to Project Management for IT Projects under an Outsourced Environment

Appendices to Practice Guide to Project Management for IT Projects under an Outsourced Environment

E.1 Work Breakdown Structure (WBS) WBS is a project management technique for defining and organising the scope of a project, using a hierarchical tree structure. The purpose of creating WBS is to break down the project into smaller components, ensuring that tasks can be more accurately planned and controlled. It can be defined as different levels of details in the Plan phase and Execute phase. Thus WBS provides the project team with a clear picture and the information needed to execute the project properly. Nevertheless, it describes planned outcomes (deliverable based) instead of planned actions (activity based). WBS should be enhanced at the beginning of each project phase/sub-phase. Although there is no definite optimal level of details for the WBS, it is suggested to keep the lowest level of project task components below 80 working hours of effort.
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Estimating the Final Cost of Construction Project Using Neural Networks: A Case of Yemen Construction Projects

Estimating the Final Cost of Construction Project Using Neural Networks: A Case of Yemen Construction Projects

Fifteen (15) NNs models were built to predict the cost of the project by using neural network Tool Box software by MATLAB program Through five attributes were taken as predictor variables namely; collect data, preprocessing data, architecture the network, training the model, and testing the model using excel sheet and MATLAP. RMSE, MSE, MAPE, and R 2 were calculated and compared for all 15 models to show the best model. It is observed the error from Bayesan Regularization- back propagation shown the best convergence towards minimum error compared to other algorithms. Among those models is 13- 17- 1 model as its percentage of error is 6% which is the least mean absolute percentage error and its coefficient of determination is 0.9998 for models that have already been tested.
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Practice Guide to Project Management for IT Projects under an Outsourced Environment

Practice Guide to Project Management for IT Projects under an Outsourced Environment

1.3 Execute Activities are conducted to achieve the project objectives in accordance with the PMP developed from the Plan phase. The majority of the resources are expended in this phase and the primary task of the Internal PM is to ensure that resources are available as and when required to execute the tasks as defined in the project schedule. Under the Government context, this phase can broadly be divided into two sub-phases which are the tendering process and the development of required project deliverables through outsourced services. The Internal PM uses the management processes defined in the PMP to manage the project and monitor contractors' work. The Internal PM also assists the Project Owner/the PSC to prepare the project organisation for the implementation of the project deliverables. During the Execute phase, it is important to revisit the business case at project checkpoints to ensure its continual viability and that the project maintains alignment with the business objectives. When the project transits from the tendering sub-phase to the next sub-phase, the Internal PM should refine the PMP in collaboration with the contractor. This ensures, on the one hand, the contractor understands the project objectives, timeline, management processes and plans while on the other hand, aligns the PMP with the project plan of the contractor.
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Project Management Estimating Tool

Project Management Estimating Tool

Project Justification The current process for generating small estimates is neither an efficient use of project manager time nor cost estimator time for simple cost estimate needs. Project managers have the ability to develop their own estimates for simple and common scopes of work, but many lack the training, experience and confidence to do so. Cost estimators are tied up with many simple estimates, delaying their work on the more complex estimates their experience and skill-sets were intended for. For example, the average 27 estimating requests per month take an average of 4.5 days to return a cost estimate. The PMET will provide timely conceptual or budgetary level estimates for simple projects in minutes and saves resource hours in developing them. Cost estimators will have more time to focus on complex estimates, improving the timeliness of delivering those estimates. Use of the PMET will also improve precision and overall accuracy of estimates by using historical actual data and promote project management maturity as it builds user estimating skills and confidence.
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Cost Estimating Challenges in Additive Manufacturing

Cost Estimating Challenges in Additive Manufacturing

Of course, there are some limitations such as material choices, though these are expanding. However, most AM technologies are focused on plastic media. Speed is also a factor. Speed of printing will likely prevent AM from replacing traditional production methodologies for large quantities for the foreseeable future. Finally, there is a high cost of initial startup. The non- recurring cost for industrial grade AM devices is declining, but still remains out of reach for many smaller manufacturers. AM will blur the lines between traditional hardware and software estimating. Printed components rely on extensive software modeling to build the “blueprints” used by the machine. How does a cost estimator take this into account for a long-term weapon system acquisition? Parametric modeling will help us overcome some of these unique cost considerations. Comprehensive, automated cost estimating tools already help estimators calculate the non-recurring, recurring, and sustainment cost of software and hardware. Modeling AM impacts to a program may be as simple as acknowledging the differences from traditional manufacturing and properly calibrating the key activities used during the AM process. What does the future hold for additive manufacturing? Based on advances made in the last thirty years, this method of
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Cost Estimating Guideline December, 2015

Cost Estimating Guideline December, 2015

In the case of standard lump-sum items, comparisons are extremely difficult, as reference quantities are usually not provided to assist in the development of the lump-sum total cost using standard unit prices. This type of bid item does not usually exhibit a tight distribution of bidders’ prices. The Engineer’s Estimate is generally based on some experienced evaluations from the Designer based on past projects. This type of bid item usually requires a very strong and prescriptive specification. The Engineer’s Estimate must contain comprehensive documentation on how the lump-sum price was developed. Some items are priced using tables found in the NJDOT Construction Cost Estimating Guidelines. For example, Performance and Payment Bond, Final Cleanup, Construction Layout, Progress Schedule, and Clearing Site. The project Designer may be consulted for input as to why a lump-sum item may have major variations and these findings may be added to the Bid Analysis. 6.11 Review Team Recommendation
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SPAR s Estimating Cost Models

SPAR s Estimating Cost Models

• Naval Hydrographic/Anti-Mine Warfare Ship: Cost estimates for three (3) size ships built under two different design & build strategies. • U.S. Navy Heavy Air Lift Seabasing Ship (HALSS): Cost estimates & risk assessments for large trimaran to be built under two different design & build strategies.

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Cost Estimating for RCRA Financial Assurance

Cost Estimating for RCRA Financial Assurance

ƒ Cost estimates are necessary to determine the Cost estimates are necessary to determine the values of financial assurance required. values of financial assurance required[r]

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PCDP Module 5.Cost Estimating

PCDP Module 5.Cost Estimating

The Global CoA must be used on all projects. The CoA structure caters for both Services Codes and To- tal Installed Cost (TIC) codes and comprises a four level hierarchy, where each level rolls up to the level above. The four levels have been established to meet the vary- ing needs of the different lev- els of detail typically occurring in the quantity reporting ver- sus budget control of labour versus material\subcontract. While a CoA is required for project cost control purposes, the primary purpose of a global, standard, mandatory Code of Accounts is to facili- tate the capture of consistent return data.
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Master of Cost Estimating and Analysis Brief

Master of Cost Estimating and Analysis Brief

 Cost Estimating I, II, and III: Methods and Techniques, Advanced Concepts, Risk and Uncertainty.  Cost Estimating IV: Applied Cost Analysis[r]

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Well Cost Estimating Handbook_2006.pdf

Well Cost Estimating Handbook_2006.pdf

Caution – Oil Price Assumptions and Cost Estimates The GIAAP mandates a deliberately conservative approach to economic analysis by specifying fixed oil price assumptions. These are often (and are currently in 2006) significantly below actual levels. This creates an apparent mismatch between, for example, outgoing cash flows based on actual daily rig rates in a $60/bbl oil environment and inward cash flows based on an assumed $25/bbl. However, this mismatch is intentional, and designed to ensure that all BP’s investments will remain profitable even if the oil price falls. Cost estimators must not discount current or projected rig hire or other costs to align them better with the mandated oil price assumptions. Cost inputs must always be based on a realistic best estimate of actual cash costs (although decommissioning estimates for liability provision may be a special case).
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