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(EST-3632) Building Interactive Conceptual Cost Estimate Model

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Level: Basic
TCM Section(s):
7.3. Cost Estimating and Budgeting
Venue: 2021 AACE International Conference & Expo

Abstract: A conceptual cost estimate is required during feasibility study to determine capital expenditure (CAPEX) for prospective development and usually serve as a ceiling cost estimate or early stage approved budget for any development. CAPEX can be flexible depending on the development objective. The challenge to deliver an accurate conceptual cost estimate are time constraints, limited information and wide range of uncertainties. Therefore, it is critical to build an interactive conceptual cost estimate model to support timely cost estimate as well as dependable cost estimate. This paper will outline the framework to build an interactive conceptual cost estimate model, recommended inputs for the model, setting technical/design parameters, communicate conceptual cost estimate to various stake holders and how to mitigate the risk of cost overrun.