Pitfalls of Early Estimates and Scope of Work

摘要

During the early stages of a project life cycle, capital cost estimating is closely related to the search for viable alternatives. As new alternatives are explored, the estimate is redone. This procedure is inevitable, since all possible alternatives on a project must be explored, so that the best solution is reached. This article will highlight extensive use of project management processes, and all related activities, for front end engineering design. This is where a multifunctional team helps define the scope of work, prior to preparing an estimate. However, a distinct problem arises when a management review of the project includes a comparison of a new cost estimate with those that have supposedly become redundant - embarrassment arises when no easy explanation can be given. This article explores a well documented development procedure for project scope definition, through the use of a gated project management process. It explains the objectives and required deliverables for each stage. This in turn will help the ongoing challenge for any project leadership to deliver well planned projects on time, in control, and within approved funds. This article was presented at the 2010 Annual Meeting as EST.01.