Estimating Cost for Doing a Cost Estimate
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, CE, is found to be approximately given by CE=KC0.35P, where CP 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 CP and CE. 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.
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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