Cost estimating

The Cost Estimating is a predictive process aimed at quantifying resources and costs needed to achieve a specific scope. The result of a Cost Estimating process can be used for different purposes:

• to determine the economic feasibility of a Project;
• to evaluate alternatives;
• to establish the budget of a Project;
• to provide the basic elements to control costs and time

Therefore, it is the basis on which all Project Control activities are founded.

The Cost Estimating process is not only aimed at drawing up proposals for bid but it lives in parallel with the design process throughout the Project life-cycle, refining its accuracy through three categories of estimates (Screening, Budget, Definitive) within which are applied from time to time different methodologies (Gross Proration, Curves, Factored, ..., Detailed) based on available information.

The effect of this dynamic is that, at any time, the "current" estimate is the sum of elements (Estimate Items) characterized by:

• A different level of detail;
• A different method of valuation;
• A different level of accuracy.

The Cost Estimating module has been designed to support the evolution of the estimate(quantity, weight, hours and costs) during all stages of a Project (feasibility study, supply, acquisition, review, analysis of fairness, etc.), and to transmit the results of its analysis to other modules.

Features

The main features of the module allow you:

• to apply, in promiscuous way, the different estimating methods (proration, factor, detailed) depending on the available information;
• to carry out cost estimates, both in a single currency or in multiple currencies, getting the results in a “unique reference currency”;
• to quickly get new estimates by applying "compression or expansion parametric factors" on quantity, unit costs and/or timing of existing ones;
• to set up parametric cost estimation models by defining variables and formulas "ad hoc" at different levels of detail;
• to generate the estimating items in several ways;
• by manually, entering each item;
• by taking items (elementary and composed) from the Data Base;
• by picking activities from one or more scheduling programs;
• by copying and pasting items from others existing estimates;
• by detailing, in a controlled way, items previously defined;
• to associate to each item the information required to determine the cost and its place in time;
• to associate to each item the conditions, the assumptions and the sources used to make the estimation (Basis Of Estimate);
• to freeze versions of estimates and compare them with each other to detect any changes (quantity, weight, hours, cost, timing) that took place in the individual Estimate Items.