Implementing and Sustaining a Cost Risk Estimating and Management Program
Publication: International Conference on Transportation and Development 2022
ABSTRACT
The public rightly expects a good return on investment in transportation assets. Owner-agencies use projects to deliver those assets, which fulfill needs and provide functionality. Efficient delivery enhances a project’s value, and owner-agencies are obligated to optimize value. However, transportation projects are delivered in an environment of inherent uncertainty that puts their value at risk. The reputation of an owner-agency depends largely on how effectively they meet project delivery expectations: on time and within budget. In the pursuit of improving project value, many organizations have implemented Cost Risk Estimating and Management (CREM) programs designed to enhance project delivery, improve decision making, and increase public confidence. Such programs feature probabilistic risk-based estimates, independent review and validation of the base cost estimate and schedule, and structured risk management. The objectives of this paper are (1) to communicate the value of an effective CREM program and (2) to share ideas, strategies, and lessons learned for implementing a CREM program.
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International Conference on Transportation and Development 2022
Pages: 109 - 120
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Published online: Aug 31, 2022
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