Contingency Cost Determination in Transformer Installation Project
1. Problem Recognition, Definition and Evaluation
To increase its capacity, a new 33MVA 132/22kV transformer needs to be installed at Blackberry Substation. This project includes installation of a new transformer circuit, transformer and a 22kV switchboard in a new switchroom. Also included in this project is installation of all required protection relays, communication and SCADA works. This project does not include installation of 22kV feeders from the new switchboard to the distribution network.
The project was estimated using combination of bottom up method and stochastic method. The estimate is $6,265,000. Total budget for this project is consist of project base estimate, project cost contingency and management reserve. The cost contingency and management reserve is calculated based on project risk assessment.