What is an independent cost estimate?
The independent cost estimate concerns the process of involving the services of experts who are by no means associated with the organization or project to carry out a detailed estimate in terms of the costs of the proposed project. The main idea of using independent appraisers to assess the cost of the project is to obtain an objective view of the costs of the proposed project. Another function or use of an independent cost estimate is for transparency. Assuming that the company is preparing a report on the project for its shareholders, independent experts than internal estimates to fulfill more transparency in the process.
The individual can also obtain an independent estimate of the costs as measures in the implementation of the project. Assuming that the construction company has received a contract for the construction of the house, the construction company provides the client to an estimate of how much the project will cost. Such a cliffNT may close the independent side of an independent cost estimate that will serve as a basis for comparison and analysis. The result of such an estimate could be roughly the same as an estimate of the estimated construction company provided, in which case the client could decide to continue with the project. If the difference between the estimated construction company and the inability of an independent estimate of the cost is too much, the client could decide to negotiate with the construction company to re -register the project costs or look for another construction company with a more reasonable cost.
When a company with a lot of shareholders tries to embark on a new, considerable project, it may have to make an independent cost estimate to make the whole process more open and responsible to shareholders. For example, if a public Company with a lot of shareholders decides to build a new factory in Japan as part of its globalization process, it will have to get an independent cost estimate to ensure andCucus that everything is a nain. These independent appraisers will provide a project assessment based on a number of predetermined criteria that include factors such as logistics, labor, space, design and more. In the end, such an independent cost estimate will be more value than anyone who has made internal estimates.