Level: Intermediate
Venue: 2019 AACE International Conference & Expo, June 16-19, 2019, New Orleans, LA, USA
Abstract: Regardless of a project's complexity or magnitude, predicting its costs requires dealing with many factors such as uncertainties, escalation and inflation. In hyperinflationary economies, predicting the cost of a project with the highest possible accuracy is a particularly difficult task that requires the development of methodologies or procedures. It is of primary importance that the cost estimate should be traceable and all its elements should be easy to identify because constant updates will certainly be made. This paper discusses this subject and proposes some ways of dealing with hyperinflation in the context of cost estimation. The objective is to design a calculation procedure to enhance the accuracy of cost estimates by including the impact of hyperinflation. This impact would be added to the costs obtained with the traditional method for materials, construction equipment, labor, indirect costs. This proposed methodology is oriented to projects with a high level of definition or in the execution phase.
Venue: 2019 AACE International Conference & Expo, June 16-19, 2019, New Orleans, LA, USA
Abstract: Regardless of a project's complexity or magnitude, predicting its costs requires dealing with many factors such as uncertainties, escalation and inflation. In hyperinflationary economies, predicting the cost of a project with the highest possible accuracy is a particularly difficult task that requires the development of methodologies or procedures. It is of primary importance that the cost estimate should be traceable and all its elements should be easy to identify because constant updates will certainly be made. This paper discusses this subject and proposes some ways of dealing with hyperinflation in the context of cost estimation. The objective is to design a calculation procedure to enhance the accuracy of cost estimates by including the impact of hyperinflation. This impact would be added to the costs obtained with the traditional method for materials, construction equipment, labor, indirect costs. This proposed methodology is oriented to projects with a high level of definition or in the execution phase.