This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Total project cost: a simplified model for decision makers

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Malik Ranasinghe
Abstract

A simplified model for total project cost is developed in this paper to meet the numerous requests from decision makers for a model that can be used to estimate the total project cost from the estimated cash flows and, more importantly, to check the accuracy of the project cost estimates in feasibility studies that require prudent decisions. It begins with a base cost estimate in constant dollars and discrete cash flows with discrete inflation rates as practised by the construction industry. The discrete inflation rates are used to estimate the current dollar costs of the project. The effects of inflation are estimated as escalation during construction. Using the future value concept, interest during construction is estimated, in a simplified approach, to estimate the total project cost. Data from an actual feasibility study is used to highlight the strengths and weaknesses of the simplified model. The model is extended to treat discrete cash flows with continuous inflation rates.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://taylorandfrancis.metapress.com/link.asp?target=contribution&id=3C37DFXHYCRNM8K4
File Format: text/html
File Function:
Download Restriction: Access to full text is restricted to subscribers.

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Publisher Info
Article provided by Taylor and Francis Journals in its journal Construction Management & Economics.

Volume (Year): 14 (1996)
Issue (Month): 6 (November)
Pages: 497-505
Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Handle: RePEc:taf:conmgt:v:14:y:1996:i:6:p:497-505

Contact details of provider:
Web page: http://taylorandfrancis.metapress.com/link.asp?target=journal&id=100154

Order Information:
Web: http://www.tandf.co.uk/journals/subscription.html

For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).

Related research
Keywords: Total Project Cost; Inflation Rates; Escalation; Interest; Future Value; Cash Flows;

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Thompson, P. A., 1976. "Prediction and control of cash flow for a construction project," Engineering and Process Economics, Elsevier, vol. 1(4), pages 265-271, December. [Downloadable!] (restricted)
  2. de la Mare, R. F., 1979. "Modelling capital expenditure," Engineering and Process Economics, Elsevier, vol. 4(4), pages 467-477, December. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Cheng Lianyu & Robert Tiong, 2005. "Minimum feasible tariff model for BOT water supply projects in Malaysia," Construction Management & Economics, Taylor and Francis Journals, vol. 23(3), pages 255-263, March. [Downloadable!] (restricted)
  2. Malik Ranasinghe, 1999. "Private sector participation in infrastructure projects: a methodology to analyse viability of BOT," Construction Management & Economics, Taylor and Francis Journals, vol. 17(5), pages 613-623, September. [Downloadable!] (restricted)
Statistics
Access and download statistics

Did you know? You can use IDEAS to provide links to papers and articles in your course syllabus.

This page was last updated on 2009-12-5.

This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.