Arguably, the estimation of costs is extremely crucial in every project. As a matter of fact, working in a harsh geographical condition poses a lot of challenges on the stakeholders responsible for producing accurate cost estimation. The estimation of costs is a crucial component in all infrastructural projects. In that, accurate cost estimation assists project managers in avoiding misjudging of economic and technical solutions, as well as choosing beneficial alternatives. The accuracy of estimating cost increases as the project is in its final stages due to availability of reliable information. Nevertheless, there are difficulties of producing correct cost estimation when working in the unkind geographical environment because of various reasons. It is the responsibility of the managers to try to identify these challenges and as well implement a platform that will help in improving the accuracy of cost estimation.
Despite the brainstorming on harsh geographical conditions, there are various unpredictable barriers that may influence the cost of working in such conditions. Therefore, it is very difficult for managers and other responsible stakeholders to estimate accurately the costs when working in harsh conditions due to the issue of uncertainty. In order to achieve accurate cost estimation, the factor of uncertainty should be eliminated, but in harsh geographical conditions uncertainty is the order of the day (Pinto, 2010). Working in harsh geographical conditions can be a set back since it is difficult to collect accurate information that is used to produce an accurate cost estimation. When the primary information used to produce cost is not up to the standards, and then it will automatically affect the outcome of cost estimation (Dobson & Dobson, 2011).
Experience is also another challenge that becomes a barrier towards producing accurate cost estimation in harsh geographical conditions. Perhaps, many managers and stakeholders be normal and stable, but in harsh geographical conditions costs will always fluctuate (Pinto, 2007). In addition, predictability is also another factor that accounts for the challenge of estimating accurate results. Harsh geographical conditions do not provide a dependable platform to predict the accurate costs.
The infrastructure in harsh geographical conditions is so bad, meaning that accessing the region for brainstorming is so difficult. Estimating accurate costs depends on the initial phase of information that is available which is achieved by pre-visiting the region before beginning the project. Therefore, the harsh conditions do not give room for proper collection of information to be used in developing costs (Pinto, 2007). In most cases, producing accurate cost estimates for a project can depend on the past similar projects that have taken place in the same condition. But due to the nature of the region, it is very rare to find secondary sources that are more accurate (Pinto, 2010). Hence, working in harsh geographical condition could mean a setback to the accuracy of cost estimation.
In harsh geographical conditions, it is very hard for those estimating costs to accurately establish the variables to be used in cost estimation. The variables that the contracting stakeholders would have put up will not be exhausted (Schwalbe, 2006). Some of the variables that should not be in the front of the project will be considered before the costs of real projects. For example, such costs include transportation, security, as well as terrain. In most cases, harsh geographical conditions nature controls most of the influential factors. Therefore, it is beyond the powers of the managers and cost estimators to control these. In general perspective, the challenges of producing accurate cost estimation when working in harsh geographical conditions is a reality because of uncertainty and predictability. This continues to be an enormous challenge to all project leaders.
References
Dobson, M. S., & Dobson, D. S. (2011). Managing multiple projects. New York, NY: AmericanMangement Association.
Pinto, J. (2010). Project Management: Achieving Competitive Advantage and MS Project. New jersey: Prentice Hall
Pinto, J. K. (2007). Project management: Achieving competitive advantage. Upper Saddle River, N.J: Pearson/Prentice Hall.
Schwalbe, K. (2006). Introduction to project management. Boston (Mass.: Thomson Course Technology.
