Level: Basic
Venue: 2019 AACE International Conference & Expo, June 16-19, 2019, New Orleans, LA, USA
Abstract: In spite of extensive use of sophisticated computer programs for cost estimating and planning/scheduling, industry benchmarking has shown major cost and schedule overruns on many projects. This practical presentation will discuss how decision & risk analysis, economic analysis, cost estimating and planning/scheduling concepts are used to come up with probabilistic outcomes for cost and schedule. Topics such as tornado diagram, decision tree, net present value, rate of return, payout, allowance, contingency, accuracy, etc. will be presented to illustrate how they are used on real projects in the industry to give confidence to management on the numbers to make informed decision.
Venue: 2019 AACE International Conference & Expo, June 16-19, 2019, New Orleans, LA, USA
Abstract: In spite of extensive use of sophisticated computer programs for cost estimating and planning/scheduling, industry benchmarking has shown major cost and schedule overruns on many projects. This practical presentation will discuss how decision & risk analysis, economic analysis, cost estimating and planning/scheduling concepts are used to come up with probabilistic outcomes for cost and schedule. Topics such as tornado diagram, decision tree, net present value, rate of return, payout, allowance, contingency, accuracy, etc. will be presented to illustrate how they are used on real projects in the industry to give confidence to management on the numbers to make informed decision.