Citation
Abstract
This article provides a model for estimating the cost required to do a cost estimate for DSN projects that range from $0.1 to $100 million. The cost of the cost estimate in thousands of dollars, Cg, is found to be approximately given by Cr = KC,?**, where Cy is the cost of the project being estimated in millions of dollars and K is a constant depending on the accuracy of the estimate. For an order-of-magnitude estimate, K = 24; for a budget estimate, K = 60; and for a definitive estimate, K = 115. That is, for a specific project, the cost of doing a budget estimate is about 2.5 times as much as that for an order-of-magnitude estimate, and a definitive estimate costs about twice as much as a budget estimate. Use of this model should help provide the level of resources required for doing cost estimates and, as a result, provide insights towards more accurate estimates with less potential for cost overruns.
Details
- Volume
- 42-110
- Published
- August 15, 1992
- Pages
- 278–283
- File Size
- 239.0 KB