Estimate Class A
An estimate based on complete contract documents and used as a control check on authorized expenditures prior to tendering. A detailed projection of time and costs for next planning horizon, having an expected precision variance of 10% or less; team involved in this estimate and willing to commit to it. Also called a Commitment Estimate.
Estimate Class B
An estimate based on completed preliminary design drawings. Upon acceptance, these estimates shall become the cost plans for project cost control during design. An estimate based on at least two levels of a documented work breakdown structure, having an expected precision variance of 25% or less; project manager and/or subject matter experts developed this estimate. Also called a Preliminary
Estimate.stimate Class C
An estimate based on completion of all work necessary to undertake preliminary design. This estimate must be based on knowledge of site conditions adequate to enable the identification of site related risks and the development of corresponding contingency costs that are sufficient for making correct investment decisions.
Ballpark estimate used only in preliminary discussion of feasibility having a precision variance of 50% or more; not to be used for making commitments. Also called a Sizing Estimate
Estimate Class D
An "Order of Magnitude" estimate only. In all cases, where alternative solutions are considered, this estimate should be provided for each solution to assist cost comparison. An estimate based on a comprehensive statement of requirements in mission terms and an outline solution. Such an estimate is strictly an indication of the final cost and completion date.
Feasibility Studies
Methods and techniques applied to examine technical and cost data to determine the economic potential and the practicality of project applications. It involves the use of techniques such as the time value of money so that projects may be evaluated and compared on an equivalent basis. Interest rates, present worth factors, capitalization costs, operating costs, depreciation, etc., are all considered.
Analysis to determine if a course of action is possible within the terms of reference of the project. During the program definition phase, the program feasibility study is conducted to develop in further detail the business requirements and benefits analysis contained in the program brief - in order to draw up the blueprint of the future business operations - and to scope and structure implementation options.