Question: Munaroh has recently been assigned as the project manager for a new shopping mall construction project. Since the project will span well over five years,
Munaroh has recently been assigned as the project manager for a new shopping mall construction project. Since the project will span well over five years, Munaroh is a bit hesitant to use the current market rates for estimating construction materials cost. The prices have been steadily increasing and the current market rates might not remain valid in the future. Which of the following techniques can Munaroh apply to determine her project budget?
A. Determine the cost of the project using current market rates and increase the total budget by some factor.
B. Compute the Net Present Value of the cost of materials and use that to determine the project budget.
C. Use Rolling Wave Planning to determine the budget as the project progresses.
D. * Conduct a trend analysis on the cost of materials and use that to extrapolate the cost of materials in the future.
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