Project Development and Cost Estimating - A Business Perspective

Good, Gordon K.
June 2009
AACE International Transactions;2009, pTCM.01.1
Academic Journal
Sound project development and cost estimating practices, including the appropriate application of AACE International Recommended Practices and principles, are not an end unto themselves. Their primary purpose is to facilitate effective and appropriate business decisions. Business drivers are varied and diverse, and depend on many factors, including industry sector and organizational strategies and goals. It's important to effectively integrate the often complex technical elements of a capital project, including scope, schedule, risk and cost estimates, into reliable and appropriate business decisions, which result in successful projects. The time spent, the costs incurred, and the level of project definition required, depend on the type and impact of those business decisions. This paper discusses key project development principles and processes, identifies common business decision criteria, and describes some of the key business and project drivers that are specific to the pipeline industry.


Related Articles

  • SECTION NEWS FROM AROUND THE WORLD.  // Cost Engineering;Apr2011, Vol. 53 Issue 4, p34 

    The article offers news and updates regarding the various sections of the Association for the Advancement of Cost Engineering (AACE) International around the world. The Central Texas section of AACE International conducted its first meeting in 2011 with presentations on cost estimating and...

  • A STUDY ON THE DEVELOPMENT OF A COST MODEL BASED ON THE OWNER'S DECISION MAKING AT THE EARLY STAGES OF A CONSTRUCTION PROJECT. Choong-Wan Koo; TaeHoon Hong; Chang-Taek Hyun; Sang H. Park; Joon-oh Seo // International Journal of Strategic Property Management;Jun2010, Vol. 14 Issue 2, p121 

    Decision making at the early stages of a construction project has a significant impact on the project, and various scenarios created based on the owner's requirements should be considered for the decision making. At the early stages of a construction project, the information regarding the...

  • Adding Value By Reinventing Yourself As A Total Cost Engineer. Johnson, James A.; Kraus, William E.; Selg, Richard A. // AACE International Transactions;2009, pTCM.02.1 

    One word describes the current practice of cost engineering: specialization. There are currently eight different specialties in AACE International in which one can become certified. Plus, cost engineering, as practiced, is following the same pattern of dividing cost engineering into ever smaller...

  • A Fresh Look at Some Past Risk Management Techniques. Norfleet, David A. // AACE International Transactions;2009, pRISK.02.1 

    Even though the definitions, techniques, and tools used in both risk assessment and risk analysis may change over time, it seems that some basic questions remain the same. One of those fundamental questions is, "Is there an effective method of integrating technical, schedule, and costs risks...

  • Common ERRORS in Dealing With Project Risk. Lukas, Joseph A. // Cost Engineering;Nov/Dec2012, Vol. 54 Issue 6, p39 

    Unfortunately, many people using risk management do not fully understand basic risk concepts and therefore use incorrect techniques in preparing and implementing risk management plans. The author has reviewed and critiqued client risk management process and procedures, along with risk management...

  • PRECONSTRUCTION PHASE RISK ASSESSMENT FOR GMP CONTRACTS. McDowell, Mark P. // Cost Engineering;Sep/Oct2012, Vol. 54 Issue 5, p21 

    Project owners continue to be challenged with cost and schedule uncertainty in project development and seek more assurance through the use of various project delivery methods. The purpose of this article is to introduce project owners to a variety of project controls tools available to them and...

  • Estimate Accuracy: Dealing With Reality. Hollmann, John K. // Cost Engineering;Nov/Dec2012, Vol. 54 Issue 6, p17 

    This article reviews over 50 years of empirical cost estimate accuracy research and compares this reality to common but unrealistic management expectations. The empirically-based accuracy research of John Hackney, Edward Merrow, Bent Flyvbjerg, and others on large projects in the process...

  • Modeling Project's Scope for Conceptual Cost Estimating. Serpell, Alfredo F. // Cost Engineering;Aug2010, Vol. 52 Issue 8, p20 

    The availability of a comprehensive and reliable definition of the scope of a project in its early planning stages is widely recognized by practitioners as a key factor for conceptual cost estimating. In this article, a project scope modeling methodology, based on the effective reutilization of...

  • Simulation-Based Pipeline Route Selection Tool. Hirst, Gary; Ruwanpura, Janaka Y. // Cost Engineering;Dec2006, Vol. 48 Issue 12, p15 

    Decisions that are made during the process of selecting the route of a pipeline are very critical to the project. Unfortunately, the decision is often complicated by numerous variables that must be considered, as well as the uncertainty of estimated costs. When choosing a pipeline route, a...


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics