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(EST-2573) Comparison of the International Use of Point and Range Estimating

Level: Intermediate
Author(s): Robert MacDonald; Mikhaela Gray
Venue: 2017 AACE International Annual Meeting, Orlando, FL

Abstract: Deterministic and Probabilistic Estimating provides a “single-point estimate,” a specific cost for a project to be completed. Range estimating, as the name suggests, provides a cost range. This paper looks at the use of both deterministic and range estimating by roads authorities in four countries: Australia, New Zealand, the UK and the USA. The paper will determine the technique they adopted, and ask their opinion whether it is effective and sufficiently accurate. The results are compared with the AACE best practices for cost estimating in order to determine whether the best practice is actually being implemented in these countries. The findings will assist in recognizing whether roads authorities are adopting the best cost estimating techniques and attempt to uncover any deficiencies with the current approaches.