engleski

Accuracy of estimating whole life cost

Whole life costing (WLC) is now a requirement for all UK government tenders and private finance initiative schemes. Accurately forecasting the whole life costs of constructed projects is vital to the survival of any business. It is even more important to the companies who take responsibility for designing, constructing, operating, maintaining and ultimately decommissioning constructed projects. Whenever an estimate is generated, estimators and their clients want to know how close the figures are to reality. This paper addresses the meaning of accuracy, describes the important factors that affect it and the uncertainity inherent in making forecasts of project whole life costs. The paper also suggests how the accuracy of whole life cost prediction can be estimated and improved by taking due account of, for example, the WLC process, integration of the supply chain, education and training, use of proper tools and techniques and data which are both reliable and accurate.

central limit theorem; estimating accuracy; life cycle; whole life costing

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