Simply put, the parametric solution to contingency assessessments is the:
- Most Accurate
method to determine project outcomes prior to sanction.
Published evidence, since 1978, has shown that a project’s cost and schedule outcomes can be accurately predicted using a historical data-base approach. This is not an opinion solution, it is science. Today we might call it the “big-data” approach.
The Parametric approach is over 40 years old and is both a proven and AACEi-approved method of contingency assessments. Here is how MS Consulting does it:
Contingency assessments are best just before project sanction. Here is where they fit into the project development process:
As described by AACE recommended practice 113R-20
It is a bitter pill to swallow that your project is no more complex and your team is no smarter than all the other projects completed before yours even started. Using a proprietary tool, MS Consulting’s parametric assessment process evaluates 50 aspects of your project and maps that into historical cost outcomes.
What to know the history & origins of the parametric process? Watch the video below:
Want to know more about how MS Consulting does the parametric process? Watch this video:
Want to understand how Monte Carlos & Deterministic contingency approaches compare to the Parametric? This explains it!