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Explain the challenge of producing accurate cost estimation when working in harsh geographical conditions.

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I am attending school to be a pm. This question is referring to the Dulhasti Power Plant at the foot of the Himalayas. In this case study there are too many challenges since the bids were "fixed price". I was hoping someone may have more insight. Thank you
asked 7 years ago by anonymous

1 Answer

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I'm not familiar with the case study, but it would appear that transportation costs and weather issues are the primary challenges for the project.  Getting people and resources to and from the work site would be hindered by weather and the ability to travel over the terrain.

Another point to note is that it is in the seller's best interest to have firm requirements and other reduced risks to respond to fixed price. If challenges of weather and terrain are underestimated, it could be easy to miss the target.

Please see related question and answer at http://projectmanagementquestions.com/4492/challenges-delivering-estimation-geograghical-conditions.
answered 7 years ago by sdcapmp (45,840 points)

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