Project Estimation

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,