987 B
987 B
id, aliases, tags
| id | aliases | tags |
|---|---|---|
| risk-oriented-estimating |
Risk Oriented Estimating
Risk-Oriented Estimating (ROE), is a methodology for construction-estimating which
- prioritizes estimating tasks,
- determines necessary estimating-detail
ROE leans heavily on expected-value-of-perfect-information, which challenges the natural tendency to shy from uncertainty with the reality of the cost of certainty.
ROE does not endorse common shortcuts that round up to "cover" uncertainty, as these ultimately increase risk by inflating the apparent project cost, increasing the probability of loss to a competitor.
Bid risk may fit a Taleb distribution.
Actuarial Science
Prioritizing Tasks
ROE prioritizes estimating tasks by their contribution to cost certainty.
Determining Necessary Detail
ROE determines the appropriate level of estimating-detail given an organization's risk#Risk Tolerance.