---
title: Actuarial Science for Construction Estimating
tags:
  - topic/estimating
  - topic/risk
  - type/cross-topic
---
# Actuarial Science for Construction Estimating

Cross-topic of [[actuarial-science]] and [[construction-estimating]].

For a contractor, construction projects are like _investments_
in that they have a cost and return.
However, for construction projects,
**return** is known but **cost** must be estimated.
In this way, projects are better compared to _insurance accounts_.

* cost of individual service is uncertain
* cost to customer must be minimized

![[decrease-in-sigma#Normal PDF]]