Estimating Cost for Doing a Cost Estimate

Authors

Donald S. Remer, Harvey Mudd CollegeFollow
Harry R. Buchanan

Document Type

Article

Department

Engineering (HMC)

Publication Date

6-2000

Abstract

This article provides a model for estimating the cost required to do a cost estimate. The cost of the cost estimate in thousands of dollars, C_E, is found to be approximately given by C_E=KC^0.35_P, where C_P is the estimated cost of the project in millions of dollars and K is a constant depending on the desired accuracy of the estimate, the maturity of the technology, and the cost elements included in C_P and C_E. Our earlier work provided data for high-technology projects. This article adds data from the construction industry which validates the model over a wider range of technology.

Rights Information

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Recommended Citation

Remer, Donald S. and Harry R. Buchanan. "Estimating the Cost for Doing a Cost Estimate," in the International Journal of Production Economics, Vol. 66, No. 2 (30 June 2000), 101-104. doi:10.1016/S0925-5273(99)00117-6