0
Want this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
Which type of contract shifts the risk of cost overruns to the contractr?
Fixed-Price Incentive
What contract shifts the risk of cost overruns to the contractor?
fixed price with economic price adjustments
Why do projects suffer from time and cost overruns?
Projects can suffer from time and cost overruns due to poor planning, inaccurate estimation of resources, unexpected changes in scope, ineffective communication, and lack of risk management. Additionally, external factors such as market conditions or regulatory changes can also contribute to delays and increased costs.
What are cost-reimbursement contracts?
In cost-reimbursement contracts, builders were paid for justifiable costs incurred during the project, while fixed-price contracts required builders to absorb any cost overruns themselves.
What is the weaknesses of construction industry?
Some of the weaknesses of the construction industry include: Lack of skilled labor: There is often a shortage of skilled workers in the construction industry, leading to delays in projects and increased costs. Cost overruns: Construction projects are prone to cost overruns due to factors such as unforeseen delays, changes in design, and material price fluctuations. Fragmented and competitive market: The construction industry is highly fragmented, with numerous small players, resulting in intense competition and slim profit margins for many firms.
Project cost overrun?
Cost Overruns happen when the actual expenditure on your project exceeds the planned/allocated budget. Lets say you have budget to hire 3 people and due to some reason you hired 4 people, then your project budget can be expected to overrun within a few months of operation. Project Managers use processes called "control cost" to control project expeditures
What is scope creep in project management and how can project managers avoid it?
Scope creep results when the design includes extra features or functionality that were not included in the original requirements. This could result in cost and schedule overruns. There should be a Configuration Control Board (CCB) that evaluates all changes to the requirements baseline. For avoiding it, you can use project management tools like PPMX so that there are no manual overruns.
Why is project creep not a good thing?
may lead to huge cost overruns, a failure to complete the project on schedule, and then, in the rush to meet final deadlines, the delivery of a project that fails to meet the needs of the customers.
What is a cost driver?
A cost driver is a factor that causes variations in a cost.
Why does causes cost of capital increase?
element of risk is the factor which causes the cost of capital to increase as much the risk as much the cost of capital.
How much does an average nuclear power station cost?
I can give you a link to a paper which discusses recent analysis of this, but I don't think it will be as good as getting the facts direct from a company which is going to build a new plant, though there are often cost overruns in actual building. See link below
What produces cheaper electricity coal burning power station or a nuclear power stastion?
I think they are similar, but the cost of coal varies widely and transport can cost a lot. The costs of nuclear look good on paper but cost overruns are frequent and present predictions are not reliable as no plants have been built for a long time, in the US at least.
