When developing the owner’s cost
estimates, the maturity of engineering deliverables has often used to
define the class of estimate produced. This has long supported the
standard estimate classification model but should not be the only
parameter considered when defining the class of estimate in support of
capital programs. There are several equally important aspects of the
quality of the front end deliverables such as the accuracy of the
engineering as well as the maturity of the project plan. The project
plan needs to evolve at the same pace as the engineering deliverables
and will likewise affect the level of schedule and cost estimate
accuracy. Significant improvement in project cost and schedule outcomes
are possible, depending on the details of the project plan and its
relationship to specific project characteristics and risks. This paper
will identify industry best practices for content of the project plan
and the typical evolution of the plan through the project front end
efforts and execution. Examples of owner project plans will be provided
and as well as the impact various components of the plan have on the
estimate/schedule accuracy and corresponding project risk.