How do large corporations make the decision to proceed with a project? What data or metrics do they consider prior to investing billions into a new plant, a new high rise condo, or major I.T. project? Capital budgeting refers to the financial modelling that evaluates the feasibility and compares potential project investments. At the end of the day, … [Read more...]
What is a Rough Cost Estimate?
A Rough Cost Estimate is an initial estimate that uses prior experience and other non-project data to estimate the cost of a project. It is also called a Rough Order of Magnitude (ROM) estimate, or a Conceptual Estimate. The Rough Cost Estimate is used for project screening, or deciding which among several projects to proceed with. The project definition is around … [Read more...]