Cost contingency as the standard deviation of the cost estimate

Cost Engineering (Morgantown, West Virginia)

Volumn 47, Issue 7, 2005, Pages 22-25

  Rothwell, Geoffrey ^a  

^a STANFORD UNIVERSITY   (United States)

Author keywords

And project management; Contingency; Cost estimating; Risk assessment

Indexed keywords

CONTIGENCY; COST ENGINEERING; COST ESTIMATING; GUIDELINES;

ELECTRICITY; PARAMETER ESTIMATION; PROBABILITY DISTRIBUTIONS; PROJECT MANAGEMENT; RISK ASSESSMENT; STANDARDS;

COST ACCOUNTING;

EID: 22944461388     PISSN: 02749696     EISSN: None     Source Type: Trade Journal    
DOI: None     Document Type: Review

References (8)

1. Association for the Advancement of Cost Engineering International, Cost Estimate Classification System - As Applied in Engineering, Procurement, and Construction for the Process Industries, AACE International Recommended Practice No. 18R-97 (revised June 15, 1998). www.aacei.org
2. Electric Power Research Institute, EPRI. Technology Assessment Guide. Palo Alto, CA: EPRI. TR-102276-V1R7 (1993).
3. Johnson, N.L., S. Kotz, and N. Balkarishnan. Continuous Univariate Distributions-Vol. 2. New York: John Wiley & Sons (1995).
4. Lorance, R.B. and R.V. Wendling. Basic Techniques for Analyzing and Presentation of Cost Risk Analysis, AACE International Transactions. www.decisioneering.com/articles/lorance.html (1999).
5. Nasser, K. Cost Contingency Analysis for Construction Project Using Spreadsheets, Cost Engineering 44, 9 (2003): 26-31. www.aacei.org/join/ce02-09. pdf
6. Palisade. Guide to Using @Risk. Newfield, NY. www.palisade.com (1996).
7. Parsons, E.L. Waste Management Project Contingency Analysis, U.S. Department of Energy, Federal Energy Technology Center (DOE/FETC-99/1100). www.netl.doe.gov/publications/others/techrpts/parsons.pdf (1999).
8. Rothwell, G.S. "An Economic Analysis of Contingency in Cost Engineering" (Stanford Institute for Economic Policy Research, Stanford University), siepr.stanford.edu (2004).