Reference no: EM13843019

Cost Estimate Classification - from General to Specific

Background:-

The AACE developed a generic cost estimate classification matrix (Table 1 refers) to provide a guideline for the general principles of estimate classification that may be applied across a wide variety of industry (An example of Cost Estimate Classification Matrix for the Process Industries was shown in the AACE Chapter 9 - Table 9.2).

Table 1: Generic cost estimate classification matrix (AACE and Dysert)

Objective:-

The objective of this assignment is to develop a new cost estimate classification matrix which is specific to an engineering field (e.g. construction, civil engineering, software engineering, mechanical engineering or electrical engineering...etc). You are required to prepare a report to demonstrate the development of this new matrix.

The followings are some important guidelines to finish the report:-

1. Develop your specific matrix

a. Introduce each of the Estimate Classes in your new matrix;

b. Introduce ‘the level of project definition', ‘the end usage', ‘the methodology', ‘the expected accuracy range' and ‘the preparation effort' of each class, and

c. Think of at least one (practical or hypothetical) example to illustrate the concept of each Estimate Class that appears in your new matrix;

d. Display the new matrix at the end of the report

2. You may expand or reduce the number of Estimate Class in your new matrix.

3. The whole report shall contain at least 1,000 words but no more than 1,500 words. Double spacing is required. You can attach some supporting documents in the Appendices of your essay.

4. Reference:-

AACE International (Edited Amos): Chapter 9.