Why does the estimate of probable total cost need to be revised as the project progresses?
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- 1. What is the completion time? 2. When will the project be completed?How does a project's intended lifespan influence its estimated cost, particularly regarding maintenance?In the perspective of the owner, give examples of problems that may arise if an early estimate is significantly lower than the final actual cost of a project.
- How is the optimum cost-time point determined? What are the conditions that must exist for one to be present at a project duration other than the duration originally created under normal conditions?Can you produce an accurate forecast of the cost of a project using the cost-per-unit method of estimating? Explain1. A project your firm is considering for implementation has these estimated costs and revenues: an investment cost of $50,000; maintenance costs that start at $5,000 at the end of year (EOY) 1 and increase by $1,000 for each of the next 4 years, and then remain constant for the following 5 years; savings of $20,000 per year (EOY 1-10); and finally a resale value of $35,000 at the EOY 10. If the project has a 10-year life and the firm's MARR is 10% per year, what is the present worth of the project? Is it a sound investment opportunity? 2. A toll bridge across the Mississippi River is being considered as a replacement for the current 1-40 bridge linking Tennessee to Arkansas. Because this bridge, if approved, will become a part of the U.S. Interstate Highway system, the B-C ratio method must be applied in the evaluation. Investment costs of the structure are estimated to be $17,500,000 and $325,000 per year in operating and maintenance costs are anticipated. In addition, the bridge…
- You are now to renovate your bedroom to your dream bedroom at a certain budget given by your parents. How are you going to manage the cost of the renovation? There are four primary phases in construction management that you may apply. Explain in sequence each of these phases.Which method is the best to adopt while carrying out cost estimation of a new building project? Explain in detailWhat are the three degrees of accuracy that are acknowledged in capital cost estimation?