Estimating Project Cost Contingency – Beyond the 10% syndrome
نویسنده
چکیده
Projects require budgets to set the sponsor’s financial commitment and provide the basis for cost control and measurement of cost performance. A key component of a project budget is cost contingency. This paper reviews the traditional approach of estimating project cost contingency by means of a percentage addition to the base estimate and analyses its many conceptual flaws. Over the past decade there has been a significant increase in interest by both practitioners and academics into more robust methods for estimating cost contingency. This paper reviews the literature of some of these methods for estimating project cost contingency.
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The Maturing Concept of Estimating Project Cost Contingency - a Review
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