Cost Estimation

In the early stages of a plant construction project, one of the most frequent questions from management or clients is, "How much will it cost?" However, the accuracy of a cost estimate varies significantly depending on the project phase. To standardize these estimates, the AACE International (Association for the Advancement of Cost Engineering) provides a widely recognized classification system. In this article, we will explain the relationship between project phases and cost estimation accuracy based on the AACE classification. What is CAPEX? In plant engineering, CAPEX (Capital Expenditure) refers to the total funds required to design, procure, and construct a ...