zmVault/risk-management-for-construction-estimating.md

id, aliases, title, tags

id	aliases	title	tags
		Risk Management for Construction Estimating	authorship/original destiny/permanent status/incomplete topic/construction topic/estimating topic/risk type/cross-topic

Risk Management for Construction Estimating

Cross-topic of risk-management and construction-estimating.

Estimating as Risk Mitigation

• reduce risk of wasted estimation effort due to bid loss (prefer lower bid)
• reduce risk of project overrun (prefer higher bid)

Estimating resources should be allocated according to Return on Mitigation (RoM), that is, their contribution to cost certainty.

\text{Efficiency} = -1 \times \frac{d\sigma}{dt}