How BIG Things Get Done, with Dr. Bent Flyvberg
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The Psychology of Estimating Kitchen Remodel Costs
One way to estimate the cost of a kitchen remodel is by looking at what similar projects have cost in the area. However, this method has its own flaws. The conventional way of estimating costs is done from the inside out, where you try to understand the project and make a list of everything needed, along with their unit prices. But this method often leads to inaccurate estimates as it doesn't take into account unknown factors that may arise during the project. Cost overruns of 50 to 100% are common with inside out estimating. An alternative approach is outside in estimating, where you ask friends and family who have done similar projects about their cost overruns and calculate an average percentage. This percentage can then be added to the estimate provided by builders. Outside in estimating includes unknown factors and is considered more unbiased and realistic compared to inside out estimating. It may not be 100% accurate, but it helps mitigate biases and provides a more realistic estimate.
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