What Project Managers must Demand from an Economic Evaluation!

Some project managers accept unsatisfactory economic evaluation modelling because they are unaware of what constitutes good practice. They tend to leave it to the evaluation specialist or others to decide. The AusIMM has published on its website a draft set of guidelines for technical economic evaluation which will allow these project managers to take control and demand worldÆs best practices.The style of the guidelines is described and the source of a worked spreadsheet example in Excel is given.Economic evaluation in project management is described. A simple test for the acceptance or rejection of evaluation work is offered. The nature of modelling and evaluation in each of the three study phases of concept, prefeasibility and final feasibility are described. Suggestions on the selection of specialists for each phase are given. The three levels of evaluation thinking are described, namely, modelling, valuation and evaluation. Finally the meaning of æfinancial analysisÆ is explained.The conclusion is that æthe role of an economic evaluation specialist is to create models and evaluations for the whole project team to readily understand and use: it is not to create models for his/her own useÆ.CITATION:Card, P, 2012. What project managers must demand from an economic evaluation!, in Proceedings Project Evaluation 2012 , pp 173-176 (The Australasian Institute of Mining and Metallurgy: Melbourne).