Level: Intermediate
TCM Section(s):
9.2. Progress and Performance Measurement
10.1. Project Performance Assessment
Venue: 2023 AACE International Conference & Expo
Abstract: Large industrial plant projects are complex construction and may be subject to strategic changes by the owner during their life cycle.
This typical situation has been common and can lead to discontinuity of projects and implementation of new projects in place of the previous one, which reflects more restricted economic conditions. Such changes imply the need for parametric cost estimates for feasibility assessment or decision support.
This paper presents a study model applied to preview the costs of construction of the remaining works of a discontinued project. It is achieved with the use of a parametric cost estimate of revamping existing facilities, and it is associated with a comprehensive estimate of completion (EAC) of the original project.
So, this study uses the techniques of earned value management and conceptual cost estimating to project the costs of these remaining works.
From the indicators of performance, time, and cost of the construction it is possible to determine the costs of the project in the states in which they are. It is applied in the result of a parametric cost estimate of the revamp project to forecast the cost of this new project.
The results obtained allow the definition of Class 5 or 4 cost estimate for remaining works and compared with a detailed cost estimate.
This cost estimate is also nominated revamp to completion (RTC) from the definition of the remaining cost index (RCI).
TCM Section(s):
9.2. Progress and Performance Measurement
10.1. Project Performance Assessment
Venue: 2023 AACE International Conference & Expo
Abstract: Large industrial plant projects are complex construction and may be subject to strategic changes by the owner during their life cycle.
This typical situation has been common and can lead to discontinuity of projects and implementation of new projects in place of the previous one, which reflects more restricted economic conditions. Such changes imply the need for parametric cost estimates for feasibility assessment or decision support.
This paper presents a study model applied to preview the costs of construction of the remaining works of a discontinued project. It is achieved with the use of a parametric cost estimate of revamping existing facilities, and it is associated with a comprehensive estimate of completion (EAC) of the original project.
So, this study uses the techniques of earned value management and conceptual cost estimating to project the costs of these remaining works.
From the indicators of performance, time, and cost of the construction it is possible to determine the costs of the project in the states in which they are. It is applied in the result of a parametric cost estimate of the revamp project to forecast the cost of this new project.
The results obtained allow the definition of Class 5 or 4 cost estimate for remaining works and compared with a detailed cost estimate.
This cost estimate is also nominated revamp to completion (RTC) from the definition of the remaining cost index (RCI).