Project Estimation

This document provides information about project estimation, including the methods used for cost estimation and how to adjust project costs based on time and size. It also discusses the different phases of a project lifecycle.

PROJECT ESTIMATION
By Name
Course
Instructor
Institution
Location
Date

Q1
Average unit cost
30,431.5 / 8 = 3, 803.94
Forecast unit cost= = (2,987.3 + 4 × 3,803.94 + 4,375.8) / 6 =3,763.14
Adjustments for time
Interest rate could be determined based on change in cost index during the time
(378/358) = (1 +i) 3, then i= 1.83%
Project cost should thus be adjusted as follows:
843,500 × (1 + 0.0183)4= LE906, 960
Estimated cost
= Previous cost × Time adjustment × Size adjustment
= 2,179,540 × (1 + 0.0183)5× (62,700 / 38,500)
= 3,700,360

Question 2
Q3 (4 marks)
(a)
Raw materials extraction
The principal phase of existence cycle of a structure is extraction of crude materials. Raw
materials incorporate iron mineral, limestone, bauxite, copper, timber, oil, among others, which
are normally implanted in earth. These assets become prepared utilizing advances into
progressively helpful structures to be utilized as building or development materials, for example,

steel, bond, aluminum and plastic. The extraction of common assets speaks to a huge effect on
shortage of non-sustainable assets, while simultaneously devours other assets, for example,
water, power or fuel, and furthermore incorporates dumping water in water, air as well as soil.
Manufacturing
Natural assets are changed over to essential structure or development materials such as steel,
plastic, and as shown by Crawford the processing methods to create such materials are for the
most part unpredictable. Due to multifaceted nature of extraction, transformation processing
large measure of energy which is generally petroleum product based is devoured and
subsequently large amounts of toxics discharged into atmosphere (Agyekum et al., 2018).
Construction
Construction is fitting parts or materials joined to build something, that is, a constructed
structure. Development is utilized conversely with structural designing and they are the reason
for advancements so as to improve the lives of individuals.
Operation & maintenance
Water as well as energy is required for clients and hardware's, for example, Heat-Ventilation-Air
Conditioning (Air conditioning), control lighting frameworks and power and broadcast
communications systems among others.
Demolition
Demolition of structures is significant by virtue that like each different items, structures have
limited lives. In expansion, due to cultural contemplations, for example, safety; foundation

advancements; and just as specialized headways, structures must be crushed so as to prepare for
progressively useful ones which will meet present needs and desires for significant clients.
Recycle & re-use
A few segments or materials can be reused straightforwardly from subsequent to being
destroyed, (for example, windows, gates, etc). While the recuperation and reuse of existing
materials may be maintained a strategic distance from or lessen a portion of effects of utilizing
new materials reuse of such materials isn't without certain effects of its own
(b)
Parametric: The parametric procedure makes use of regression or other factual strategies to
create Fetched Evaluating Connections (CERs). A CER is condition adopted to gauge given
fetched component making use of built up relationship with one or more free factors. The
relationship may be numerically basic or it may include complex condition (regularly determined
from relapse investigation of authentic frameworks or subsystems). CERs ought to be current,
pertinent to framework or subsystem in address as well as suitable for run of information being
considered
Analogy: An analogy could be strategy utilized to assess estimated cost based on authentic
information for a practically equivalent to framework or even subsystem. In such method, a as of
now handled framework, comparable in plan and operation to proposed framework, is adopted as
premise for relationship. The estimated cost of proposed framework is at that point evaluated by
altering verifiable estimated cost of current framework to account for contrasts (between the
proposed and current frameworks) (Mislick and Nussbaum, 2015). Such alterations can be made
through the use of components (some of time called scaling parameters) which speak to contrasts

in measure, execution, innovation as well as complexity. Alteration components based on
quantitative information are more often than not ideal to alteration components based on
judgments from subject-matter specialists
Actual Costs: With such procedure, measured of actual costs or even patterns are utilized to
venture gauges of future costs for same framework. Such projections may be made at various
levels of detail, depending on information accessibility. Estimates of costs which back a full-rate
generation point of reference choice ought to be based on real fetched information to most
prominent degree conceivable. A common botch is to use contract costs as replacement for
accurate estimated cost encounter. Contract costs ought to not be utilized to venture future costs
unless it is known contract costs are related with beneficial wanders, which it is sensible to admit
comparable cost encounter will be gotten for consequent contracts

References
Agyekum, B., Kissi, E., Yamoah Agyemang, D. and Badu, E., 2018. Examining barriers for the
utilization of non-traditional cost estimating models in developing countries: Ghanaian quantity
surveyors’ perspectives. Journal of Engineering, Design and Technology, 16(6), pp.814-827
Mislick, G.K. and Nussbaum, D.A., 2015. Cost estimation: methods and tools. John Wiley &
Sons