Project cost estimation

Review Scheduling A review scheduhng procedure should be estabhshed that documents who is responsible for initiating the review and when the review(s) should occur during the project. The scheduling needs to balance availability of process information, review technique used, and the impact of potential review action items on project costs (i.e., early enough to minimize the cost of any potential changes to the process). The aclual amount of time needed for the review should also be stated in the procedure. On the basis of the number of project reviews required and the estimated time needed for each review, the project cost estimate should include the cost for project reviews as part of the total cost for the project. 

Environmental Cost Accounting Project cost estimating principles Return on investment calculations Project cost estimating principles... 

The team should also measure the success of the pilot project itself— compared with the plan how long did each activity take, or how many new processes were developed, or how many programs and elements needed to be developed or upgraded compared with your plan This will allow you to reconsider the overall project cost estimate and revise it if necessary. 

The schedules shown to the committee were simply lists of things that had to be done and the time estimated to complete each of them. Alternative paths that would be generated as decisions were made were not evident, nor were any time-related probabilities assigned. The schedules presented to the committee are extremely vulnerable to unforeseen or external events. Moreover, the committee was not provided with total project cost estimates, even of a conceptual or preliminary nature. Without these estimates, it is extremely difficult to evaluate engineering decisions and select the most cost-effective technologies. Based on the lack of documentation, the committee concluded that an adequate preproject plan for a modified baseline process at Pueblo may not exist. If this is true, the completion of the project on schedule and within budget is unlikely. 

J. Sweeting, IChemE, 1997 (1st Edition), Project Cost Estimating-Principles and Practice ... 

With only very few exceptions personnel is by far the most expensive resource. Incorrect project cost estimates are most likely due to an inexact estimate of the manpower required. Most errors (mostly underestimates) occur due to deficiencies of the project plan which directly and considerably influence the manpower estimates. First of all, the time to accomplish project tasks is usually underestimated. Second, the project plan is not detailed enough for reliable manpower estimates, and third, the contribution of other than research personnel (management, administration, animal attendants, dishwashers and other services) is not taken into consideration. 

Sweeting, J. (1997) Project Cost Estimating—Principles and Practice (Institution of Chemical Engineers). 

At this point, any effort to fine-tune an estimate would be a total waste of time. Technical project cost estimating has much in common with astrology. There are many elements to calculate, arrange, estimate, invent, anticipate, predict, foresee, prognosticate and evaluate. The estimation process is very... 

When selecting a firm to manage the design and/or construction of the project, there are a number of strategy and planning tools that these firms must use to effectively manage the overall process. During the various phases of the project, cost estimates and project schedules are prepared. These estimates and schedules are constantly refined as more details of the project are developed. 

This part of the project study should contain information on whether the existing experimental results have been obtained in-house or are derived from third parties. If in-house knowledge is available, the test units in which the experiments were carried out (e.g., laboratory, integrated miniplant) should be specified and the duration and conditions of the experiments given. The aim is to arrive at as an objective assessment as possible of the quality of the data obtained since this is of major importance for the accuracy of the project cost estimate. 

Work management processing of work requests preparation of project cost estimates planning and scheduling of work provision of required parts, materials, and equipment and maintenance of all related labor and equipment records... 

Lagace, J.C. Jr. (2006b) Making sense of your project cost estimate. Chemical Engineering, 54—58. 

Two concentrate disposal options are considered in this exercise. The first is bioremediation which provides on-site destruction of PAH contaminants. A projected cost estimate of 10-40 cents per gallon of groundwater contaminated with 100-2000 ppm of PAHs is appropriate for a full-scale bioremediation system. 

It should be no surprise that many engineering contractors are prepared to do study work at bargain basement prices Clients therefore have to exercise great care that the study is conducted competently, that project cost estimates do not include excessive contingencies or leeway for scope reduction, and above all that the best quaUty of conceptual design and innovation is obtained. This is not consistent with getting the work done cheaply. 

Numerous examples of small fuel cell-based power units produced and used for domestic applications could be cited. Thus, the Vaillant Group, which has production facilities in a number of European countries, has developed a combined heat and power unit (CHP unit) designed for an electric power output of 4.6 kW and a heat output of 11 kW. Such units were installed in several countries (Germany, the Netherlands, Spain, Portugal). The European Commission has supported 30% of the full project costs, estimated at 8.6 billion [Kommu-nalwirtschaft, No. 2, p. 107 (2004)]. 

Project Cost Estimating — Principles and Practice Jack Sweeting 1997. ISBN 085295 380 1... 

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