ARC 415: Estimation, Cost Planning & Control

Flashcards covering core terminology, stakeholder applications, project phases, and types of estimates from the ARC 415 lecture notes.

Estimation

The calculation of the value, number, quantity, or extent of something, with primary focus placed on cost estimation.

Preliminary Estimates

An initial estimate created at the earliest possible stage of a project when no designs are available and only a crude indication of project size or capacity exists.

Appraisal / Feasibility Estimates

Comparable estimates of alternative schemes or projects under consideration, including economical and financial feasibility, used to assist in selecting a scheme.

Proposal Estimates

An estimate for a selected scheme or project based on conceptual design and specification, produced as cash estimates to convince the client to proceed.

Approved Estimates

A modified version of the proposal estimates updated to reflect the client's views and provide the basis of the project.

Pre-tender Estimates

Refinement of approved estimates based on definitive design work using information provided in tender documents, reflecting total capital cost.

Post-contract Estimates

A further refined estimate that reflects the price of the projects, requiring distribution of money such as in add-measured contracts.

Achieved Cost

A record of the actual cost of the project or job in order to review performance and provide data for future projects.

Project Stages Diagram for Estimates

A step chart mapping project stages (Identification, Appraisal, Definition, Approval, Implementation, Operation) to corresponding estimate types (Preliminary, Appraisal, Proposal, Approved, Pre-tender, Achieved Cost).

Client Uses of Cost Estimates

Functions including assessing financial feasibility, economic feasibility, determining capital investment, knowing project cost, and setting sale prices.

Consultant Uses of Cost Estimates

Functions including determining project design, aiding site selection, assisting in choice of alternative designs, cost control, negotiating variations, and evaluating tenders.

Contractor Uses of Cost Estimates

Functions including projecting profit, monitoring cash inflows and outflows, cost control, negotiating variations with subcontractors, and sourcing funds.

Funder Uses of Cost Estimates

Functions including determining risks, setting funding levels, assessing performance, determining repayment terms, and establishing disbursement schedules.

Bank Uses of Cost Estimates

Functions including assessing associated risks and serving as the basis for determining associated interest.