The public money is to be used for public good. These realities effectively make transportation owner‐operators funding organizations. This chapter addresses the different types of estimates and their limitations. A project budget that is set based upon a preliminary funding application is inherently constrained in real ways that directly impact the development of the project. The chapter addresses the accuracy of an estimate. In general, informed organizations are programmatically less concerned with the estimate accuracy, and more concerned with its precision. A project cost estimate consists of four basic components: base cost, allowance, contingency, and management reserves. The Cone of Uncertainty is a graphic representation of an organization's expected and accepted estimate accuracy throughout the project development process. For active projects, there are three unique kinds of estimates during project development: preliminary, detailed, and the engineer's estimate.
Budgets and Estimates
2023-05-24
25 pages
Article/Chapter (Book)
Electronic Resource
English
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