Questions about the preliminary budget estimate

**The specification is +/–10%; any deviation of the preliminary design estimate from the feasibility study estimate by +/–10% (either more or less) requires the project to be sent back for another feasibility study.

If there are clear reasons for a significant increase in investment, then it might be possible to discuss alternative options, such as adopting new processes or technologies.

This post was last edited by Wise Ming on 2012-4-17 at 23:15. Since there are significant changes in new processes and technologies, it means that the feasibility study conducted earlier has changed as well; consequently, the investment costs and return rates will inevitably change, which requires the feasibility study to be reviewed again. Article 7 of the Measures for the Review of Preliminary Designs for Chemical Construction Projects issued by the Ministry of Chemical Industry (September 29, 1995, Document No. Hua Jian Fa [1995] 749) stipulates that the preliminary design must be carried out strictly in accordance with the approved documents of the design assignment sheet (feasibility study report); it is not permitted to alter the product specifications, the scale of construction, or the site selection. If necessary adjustments are required due to changes in external conditions, approval must be obtained from the department that originally approved the design brief (feasibility study report), and the details shall be specified again in the preliminary design approval document. The preliminary design estimate must be strictly controlled; if the investment exceeds that specified in the design brief (feasibility study report), it is necessary to report to the original approving authority and explain the reasons.

What is the difference between the estimated cost for construction work and the estimated cost for installation work?

Is it an overinvestment to strictly use the estimated indicators?