Your organisation is bidding for a construction project, which consists of building a commercial complex in the heart of the city. Your organisation has worked on a similar project that was one-third the size of this one but completed it with a cost overrun of 20%. As a project manager, you have already prepared the scope statement and the WBS and are now preparing cost estimates for the construction project. Which cost estimation technique would you use for the construction project? Discuss the advantages and disadvantages of your chosen technique in the context of the construction project.
In working out your responses to the Discussion Question, you should choose examples from your own experience or find appropriate cases on the Web that you can discuss. Credit will be given for references you make to relevant examples from real companies.
Please make sure that you cite and reference all your outside sources properly, as per the Harvard Referencing System.