The $600 Million Estimate
The Challenge to the Project:
This particular client wanted to increase market share in the Latin American region (more specifically in Brazil).
PE4U acted as an extension of the estimating team. We worked with the estimating team to arrive at a +/- 10% estimate. We also assisted in the estimate transfer. The estimate transfer is where we do a final "scrub" of the estimate before it is the official project budget.
The project schedule was slated for 36 months. That this point in the project we had a level 1 and level 2 schedule.
This was a major project for our client. The initial estimate showed about $600 million in cost expenditures.
Multiple risk impacts were identified. Currency fluctuation, governmental interference, qualified labor shortage, multiple logistic challenges.
A significant portion of the estimate involved a risk budget.
Our client provided a more competitive estimate to their client (Petrobras) than their competitors. Our client was awarded the project verbally by their client.
This is another example of our many successes.
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