Archived - Guideline on Cost Estimation for Capital Asset Acquisitions
The Guideline on Cost Estimation for Capital Asset Acquisitions is intended to provide assistance to Government of Canada departments in developing a cost estimate for the acquisition, construction or development of capital assets; for the betterment of capital assets; or for the acquisition of a group of like assets. It is expected that the level of effort expended to develop a cost estimate will vary with the value of the capital asset and the related risks.
Date modified: 2019-06-11
Long description for image: Figure 3. Presentation of Cost Estimate Uncertainty Using a Range of Cost Estimates
Figure 3 presents four cost estimates identified as "$ x" along a line that ranges from low cost estimate to high cost estimate. The lowest cost estimate is given a tag that says "10% confidence." The highest cost estimate is given a tag that says "90% confidence." The other two estimates are identified as "baseline cost estimate" and "risk-adjusted cost estimate," and are in the middle of the range. The baseline cost estimate is given a tag that says "50% confidence." The risk-adjusted cost estimate is presented as a higher cost estimate than the baseline and is given a tag that says "approved budget."