Feasibility estimates (AACE Class 4) are prepared to allow comparison of the economic viability of various project options. Estimating methodology requires deterministic techniques for key items such as plant and equipment while factoring and other stochastic techniques are used for less significant areas.
The accuracy of feasibility estimates is predominately determined by the level of engineering and typically ranges between -15% to -30% on the low side, and +20 to +50% on the high side. These estimate can be used for:
- Economic assessment of project options
- Confirmation of economic viability
- Establishment of preliminary budget
- Approval to proceed to next project phase
