"BEST PROCESS MAP FOR OBTAINING THE OPTIMUM VALUE FOR A FUTURE INVESTMENT" by Piero Anticona
Abstract: Investors always look for the optimum return of the capital invested. They still run feasibility studies to determine which is the best alternative among different projects that offer the best IRR, VPN, ROI, ROCE, or other financial scoring models.
Some projects or programs get rejected because of the value of the alternative chosen is high, and sometimes the process for estimating and budgeting does not obtain the optimum result.
What is the best process for estimating and budgeting that could help owners to get the optimum value for acquiring, constructing, updating, expanding upon, maintaining, repairing and eventually disposing of organisational assets?
What are the advantages or strengths that this process can offer compared to others?
The following research answers this question, through the analysis of project management entities that suggest processes for Cost Estimating and Budgeting.
Guild of Project Controls offers the best processes for an estimating and budgeting calculation. It also provides, some strengths as Owner and Contractor’s perspective, Bottom-Up and Top-Down estimates and an additional horizontal and vertical validation before assessment, to determine that all data is reliable and it considered all resources and costs.
This process complies with most of what owners look for the development of a cost estimate to guarantee that the outcome is almost the closest one to reality.
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