5. Early Estimates Flashcards
1
Q
Early Estimates
A
the basis for business decisions done prior to the completion of the detailed design
2
Q
What are the consequences of inaccurate estimates?
A
- poor decisions
- lost opportunity
- wasted efforts
- low returns
3
Q
What 3 factors are crucial for accurate estimates?
A
- skills
- knowledge
- experience
4
Q
What are 5 methods for developing early estimates?
A
- cost capacity curves
- capacity ratios raise to an exponent
- plant cost per unit of production
- equipment factored estimates
- computer-generated estimates
5
Q
Continguency
A
the amount of money that should be added to the base estimate in order to predict the total installed cost of the project
6
Q
How many estimate reviews should be conducted per project?
A
- internal during estimate development
2. final review near the end of the estimate process
7
Q
How does estimate documentation minimize inaccuracies?
A
- improves communication among all project participants
- establishes a mechanism for review
- forms a solid basis for project controls
8
Q
What is the purpose of a contingency?
A
allows extra funds for uncertainties such as pricing, schedules, omissions, errors
