A major theme park is expanding the existing facility over a five-year period. The design phase will be completed one year after the contract is awarded. Major engineering drawings will be finalized two years after the design contract is awarded and construction will begin three years after the award of the design contract. New, unique ride technology will be used and an estimate will need to be developed to identify these costs that have no historical data. A cyclical process model was chosen as the basis for total cost management (TCM) because:
It is one of the basic tenets of quality improvement
Refinement is needed to prepare the estimate at completion (EAC)
Strategic assets and projects have inherent life cycles
It facilitates development of budgets and schedules
Want to practice for CCE-CCC - Certified Cost Consultant / Cost Engineer (AACE International) ?