The Best Process Map for Cost Estimating
Obtaining the Optimum Value for a Future Investment
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Investors always look for the optimum return of the capital invested. They still run feasibility studies to determine which is the best alternative among different projects that offer the best IRR, VPN, ROI, ROCE, or other financial scoring models. Some projects or programs get rejected because of the value of the alternative chosen is high, and sometimes the process for estimating and budgeting does not obtain the optimum result.The following research suggests the best process for estimating and budgeting that could help owners to get the optimum value for acquiring, constructing, updating, e...
Investors always look for the optimum return of the capital invested. They still run feasibility studies to determine which is the best alternative among different projects that offer the best IRR, VPN, ROI, ROCE, or other financial scoring models. Some projects or programs get rejected because of the value of the alternative chosen is high, and sometimes the process for estimating and budgeting does not obtain the optimum result.The following research suggests the best process for estimating and budgeting that could help owners to get the optimum value for acquiring, constructing, updating, expanding upon, maintaining, repairing, and eventually disposing of organizational assets.Besides, Building Information Modeling (BIM) uses on Integrated Project Delivery (IPD) approach, a collaborative and participatory method. Stakeholders participate in the early stages of the project; this should be a significant differentiator comparing with a traditional cost estimating approach. Has BIM a better process to define the scope and produce a better cost estimate than a traditional method for estimating and budgeting?
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