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Estimating & Biddingaka: ROMaka: ballpark estimate

Rough Order of Magnitude

In Plain English

A very rough cost ballpark used to decide if a project is even worth pursuing.

Definition

A rough order of magnitude (ROM) estimate is the most preliminary cost assessment, prepared with minimal project information to give decision-makers a very approximate idea of project cost. Accuracy typically ranges from minus 50% to plus 100% of actual costs. ROM estimates are used to evaluate project feasibility before committing to design investment.

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