Here, one estimator generated cost
estimates on the same day for two projects that were the same type
of facility, however, estimates could be different, let me point
out the reasons:
- Whenever we prepared an estimate,
the accuracy of such estimate will get increase over the situation
when project will pass through project life cycle.
- Both projects could be same;
however, cost estimate needs to consider various external factors.
For example: if construct super-sized Wal-Mart in a place A and
construct almost similar/same design in a place B, there will be
adding of several external factors like economic situation of that
locality, pricing of input resources, political situation in such
locality, legal compliances and hurdles, availability of labors and
necessary manpower, talents to perform for such project, etc. we
need to consider all such factors due to which even there could be
same two projects with different cost estimates value.
- For big project, if we prepare
definitive estimates, we can achieve higher accuracy, however, this
cost estimates only can be done much later in the project, when we
have got many information about the project.