Overview
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Jean-Pierre PAYRE: Senior project manager – Project management consultant, Grenoble, France
INTRODUCTION
After clarifying the similarities between the old and new projects, the method consists in estimating the cost of the new project based on criteria characteristic of the old projects, known as influential parameters (scope, volume, mass, etc.). This approach can be used as a feasibility study in the upstream phase of projects (APS or APD) to measure a good return on investment.
This fact sheet will first give you an overview of the different cost estimation methods, illustrated by three tools, and then show you in more detail how to carry out an analog estimate. This method provides orders of magnitude with an uncertainty of the order of x%, enabling you to make a "Go/No Go" decision on the follow-up to a call for tenders or a planned investment.
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The analog method of cost estimation
Choose a method based on the objective and available information
ToolWebsites
Association for Advancement of Cost Engineering
AACE International was founded in 1956 by 59 cost estimators and cost engineers at the organizational meeting of the American Association of Cost Engineering.
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