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.

We are sensitive to our clients’ need for information at a cost that reflects the potential project’s stage and maturity. A conceptual cost estimate is often described as rough-order-of-magnitude (ROM). Developed at relatively low cost to the client, it helps the client decide whether to proceed with further engineering and scope development. A preliminary cost estimate is based on additional engineering that 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 (not scope changes).

By designing and estimating in stages, CEI™ supports the client with information tailored to each phase of the project evaluation and approval process. This approach reduces uncertainty and risk. CEI™ has experience in estimating projects from several thousand dollars to $100+ million. We have provided project cost estimates for all different types of new food processing plants.