CEI™ uses several methods of developing project cost estimates to support the funding of projects for our clients with the effort tailored depending on the degree of accuracy required. Banks and other financial institutions have accepted our preliminary engineering cost estimates as valid support of the funding of new food processing projects for many of our largest clients. The level of detail in the estimate depends on the stage of engineering the estimate is produced in and degree of accuracy required for making sound economic decisions. The more engineering done prior to development of the cost estimate, the more accurate the estimate is.
Cost estimates are generally completed within the conceptual or preliminary engineering stages of a project as this is still early enough that the engineering costs are relatively low. A preliminary cost estimate is more accurate than a conceptual estimate since more engineering is done to allow development of some detail to support the estimate. In both cases, an appropriate contingency is applied to cover unknowns inaccuracies in the estimate, timing of the work, and changing economic conditions. The contingency is not intended to cover scope changes.
CEI™ has experience in estimating projects from several thousand dollars to 100 million dollars. We have provided project cost estimates for all different types of new food processing plants.