Question
Cost estimating relationships (CERs) are sometimes used to estimate the cost of a project by comparing it to similar past projects. Six different CERs were
Cost estimating relationships (CERs) are sometimes used to estimate the cost of a project by comparing it to similar past projects. Six different CERs were applied to six different engineering projects to project their costs. After the projects were completed, their true cost was compared to the projected cost. The table below shows the percent error between the projected and actual costs.
| Project | |||||
CER | 1 | 2 | 3 | 4 | 5 | 6 |
1 | 1244 | 21 | 82 | 2221 | 905 | 839 |
2 | 281 | 129 | 396 | 1306 | 336 | 910 |
3 | 220 | 84 | 458 | 543 | 300 | 794 |
4 | 225 | 83 | 425 | 552 | 291 | 826 |
5 | 19 | 11 | -34 | 121 | 15 | 103 |
6 | -20 | 35 | -53 | 170 | 104 | 199 |
a) Do the CERs differ in their ability to accurately estimate cost?
b) Which, if any, CERs differ from the others?
c) Which CER would you recommend for your next project?
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