karkeakustannusarvio

Karkeakustannusarvio, often translated as rough cost estimate or order of magnitude estimate, is an early-stage assessment of the potential expenses associated with a project, product, or service. It is characterized by its high level of imprecision and is typically generated with limited detailed information. The primary purpose of a karkeakustannusarvio is to provide a general understanding of the likely cost range, enabling decision-makers to determine if a project is financially viable at a very preliminary stage.

This type of estimate is often based on historical data from similar past projects, expert judgment, or the application of broad parametric models. It does not delve into the specifics of individual tasks, resources, or materials. Consequently, the accuracy of a karkeakustannusarvio can vary significantly, with potential deviations from the final actual cost being quite substantial. Despite its limitations, it serves as a crucial tool for initial screening and for setting the stage for more detailed cost estimation processes that follow as project scope becomes clearer. It helps in avoiding significant investment in projects that are clearly outside the available budget before expending considerable resources on detailed planning.