Definition:
A rough order-of-magnitude (ROM) estimate used for project screening, concept evaluation, and early-stage feasibility assessments when minimal project definition is available (0% to 2%).
Key Components:
- Project Definition: 0% to 2% scope maturity.
- Accuracy Range: Typically -50% to +100% variability.
- Methodology: Based on historical data, analogous estimating, and cost per unit methods.
- Contingency Level: Highest among all estimate classes due to high uncertainty.
Use Cases/Industries:
- Early-Stage Renewable Energy Projects: Screening potential wind or solar farm locations.
- Oil & Gas Exploration: Evaluating drilling feasibility before seismic surveys.
- Infrastructure Concept Development: Rough cost projections for new highways or power grids.
Advantages:
- Quick Feasibility Insights: Provides stakeholders with an early cost perspective.
- Supports Investment Decisions: Helps determine whether a project is worth pursuing.
Challenges:
- High Uncertainty: Low accuracy due to limited project scope definition.
- Not Suitable for Budget Approval: Used for screening, not detailed financial commitments.
Related Terms:
Feasibility Estimate, Screening Study, ROM Estimating
Example:
A government agency develops a Class 5 estimate to explore the cost of a nationwide hydrogen pipeline, using cost-per-mile benchmarks from previous projects.
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Synonyms:
Conceptual Estimate, Order-of-Magnitude Estimate, Rough Estimate
