Method for estimating escalation and interest during construction (EDC and IDC)

@inproceedings{Phung1978MethodFE,
  title={Method for estimating escalation and interest during construction (EDC and IDC)},
  author={Phung},
  year={1978}
}
The capitalized cost of a completed energy project often exceeds its estimate by a considerable amount. This is due to escalation on commodities purchased during construction (EDC) and interest paid on funds used to purchase those commodities (IDC). This paper presents a simple methodology to relate the capitalized cost of a project at commercial operation. Several payout (purchasing) strategies are considered, and formulas are derived for the relationship. Where a simple formula is not… CONTINUE READING

Similar Papers

Citations

Publications citing this paper.