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During the design and engineering process for naval projects a comprehensive cost management is required. The overall aim is to ensure the financial feasibility throughout the project with a low financial risk. Cost management combines acquisition costs and in-service costs in order to obtain life cycle costs. In this context methods for cost estimation have to be adapted to the phase of the planning process of a naval vessel. This paper introduces challenges and solutions for the cost estimation in general and describes MTGALs cost estimation approach for conceptual and preliminary designs. Additionally the utilization of cost risk analyses in order to ensure a reliable budget planning and the identification of cost risk drivers will be described.

Cost estimation and cost risk analysis in early design stages of naval projects