John wants to find out how much it would cost to hire a skilled crew to load and secure the furniture in the truck and then have another crew from the same company meet him in Atlanta to unload the truck and help him unpack. Using RFPs to Make Estimates on John’s Move Estimates that are calculated by multiplying measured parameters by cost-per-unit values are parametric estimates Estimates that are calculated by multiplying measured parameters by cost-per-unit values. Other parameters such as quality of finishes are used to further refine the estimate. The estimator knows the average cost per square foot of a typical office building and adjustments for local labor costs. Factors like size and location are parameters Measurable factors that can be used in an equation to calculate a result.-measurable factors that can be used in an equation to calculate a result.
From these two factors-size and location-the company’s estimator can predict the cost of the building. For example, if you ask a construction company how much it would cost to build a standard office building, they will ask for the size of the building in square feet and the city in which the building will be built.
If the project consists of activities that are common to many other projects, average costs are available per unit. It also provides references the manager can use to justify the estimate.
#Moneywell management pays vendors trial
Comparing the original estimates with the final project costs on several previous projects with the same DPCI ratings gives a less experienced manager the perspective that it would take many years to acquire by trial and error. If those projects were evaluated using the Darnall-Preston Complexity Index (DPCI), the manager can quickly identify projects that have similar profiles to the project under consideration even if those projects were managed by other people. Less experienced managers who are required to make analogous estimates can look through the documentation that is available from previous projects. It cost about $575 for the truck rental, pads, hand truck, rope, boxes, and gas.” Because of the similarity of the projects, John’s initial estimate of the cost of the move was less than $700 and he decided that the cost would be affordable and the project could go forward. His friend replied, “I moved from an apartment a little smaller than yours last year and the distance was about the same.
In the John’s move example, John asked a friend for advice about the cost of his move. Estimates in the earliest stages of project selection are usually made using estimates based from previous projects that can be adjusted- scaled Multiplied by an adjustment factor to make the new estimate proportional to the original.-to match the size and complexity of the current project or by applying standardized formulas. of experienced managers who can make accurate estimates with less detailed information. They rely more on the expert judgment Decisions based on incomplete information made by people who have extensive personal experience. The methods used to estimate the cost of the project during the selection phase are generally faster and consume fewer resources than those used to create detailed estimates in later phases. The estimates must be accurate enough so that the comparisons are meaningful, but the amount of time and resources used to make the estimates should be appropriate to the size and complexity of the project. To compare the simple paybacks or internal rates of return between projects, an estimate of the cost of each project is made. Estimating Costs to Compare and Select Projectsĭuring the conceptual phase when project selection occurs, economic factors are an important consideration when choosing between competing projects.
0 kommentar(er)
