Project Cost Estimating

Project Cost Estimating

At Innovation in Industry we feel it is important that our Customers can access professional Cost Estimating Services:

  • Cost estimation in project management is the process of forecasting the financial and other resources needed to complete a project within a defined scope. Cost estimation accounts for each element required for the project, including both materials and labor to determines a project's total delivery budget.

  • Cost Estimates includes a range of Stochastic and defcan be defined as:

    • Class 5 - Order of magnitude. This level of estimate is used at the Concept or screening stage of projects. It normally requires a project definition of 0-2%.

    • Class 4 - Intermediate - This level of estimate is most often used at the prefeasibility level of project development. It requires a project definition of 2-15%.

    • Class 3 - Preliminary - This level of estimate is used at the Feasibility stage in most projects. it requires a project definition of 10-40%. Most developers would make a development decision based on a Class Estimate.

    • Class 2 - Substantive - This level of estimate is normally used as a control or bid/tender level of estimate. It requires between 30-70% definition.

    • Class 1 - Definitive - This level of estimate is normally used a check estimate for projects. A class one estimate requires between 50-100% definition. This type of estimate would not be completed for most projects.

    • Contingency may be included in an estimate to provide for unknown costs which are indicated as likely to occur by experience, but are not identifiable. When using an estimate which has no contingency to set a budget or to set aside funding, a contingency is often added to increase the probability that the budget or funding will be adequate to complete the project.

At Innovation in Industry, we provide a broad range of professional estimating services including:

  • Meeting with Customers to discuss the scope and scale of your project.

  • Collaborating with engineers, contractors, and architects to ensure the best information is available for your project cost estimate.

  • Consulting with industry experts to ensure appropriate best practices form the basis of your project estimate.

  • Identifying and quantifying all cost factors involved in your project.

  • Developing the “Basis of Estimate” for your project

  • Delivering an appropriate level of project detailed project cost estimate for the level of project development.

  • Monte Carlo Contingency analysis

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