What are some effective case studies on cost estimation?

What are some effective case studies on cost estimation?

There are several notable case studies on cost estimation. One example is the construction of the Sydney Opera House, which faced significant cost overruns due to poor initial estimates. Would you like to know more about this case?

Yes, what went wrong with the cost estimation for the Sydney Opera House?

The initial budget was set at 7 million AUD, but the final cost soared to over 100 million AUD. Factors included design changes, labor issues, and inexperience with the innovative design.

Are there other industries where cost estimation is critical?

Absolutely! Industries like software development, manufacturing, and healthcare also rely heavily on accurate cost estimation to ensure project viability and profitability.

Can you provide a case study from the software industry?

Sure! A well-known case is the development of the FBI's Virtual Case File system, which was initially estimated at $380 million but ended up costing over $600 million due to scope changes and mismanagement.