Cost Estimating and Project Value Modelling 

Sedgman helps clients evaluate the commercial strength of project options through capital and operating cost estimates, project economics and value modelling. We connect engineering definition, estimate basis, project controls and practical delivery insight so feasibility decisions are informed by both technical merit and commercial reality. Our focus is not simply estimating cost, but helping clients understand whether a project creates sufficient value to justify investment and which development pathway offers the strongest long-term return.  

Commercial confidence is built when project teams can see how technical choices translate into cost, value and investment outcomes. Sedgman supports concept and feasibility studies with evaluation of different products and grades,  capital and operating cost estimates, project economics and value modelling that help clients understand what a project may require, what it may return and which decisions have the greatest influence on value. Effective capital allocation depends on understanding where investment delivers the greatest return. Sedgman helps clients evaluate how technical choices influence capital intensity, operating performance, project risk and long-term value creation.  

Our teams bring together engineering definition, project data, estimate basis development, procurement awareness, schedule logic and delivery experience to assess options with practical financial discipline. This helps clients compare alternatives, understand cost drivers, test sensitivities and identify value improvement opportunities before decisions become harder to change. Value is influenced by more than capital and operating costs. Throughput, recovery, product quality, schedule, operability, sustainability performance and execution risk can all have significant impact on project outcomes and are considered within our decision frameworks. Because Sedgman is involved in engineering, project delivery, commissioning, operations and optimisation, our estimates and value models are informed by practical delivery and operating experience rather than purely theoretical assumptions.  

From early concept through pre-feasibility and feasibility, Sedgman helps clients use cost and value insight as a strategic guide rather than a late-stage check. The result is stronger alignment between project scope, capital expectations, operating assumptions and the investment case needed to progress with confidence.

We approach project value modelling from an owner’s perspective, focusing on whether a project can achieve acceptable returns while remaining constructable, operable and resilient throughout its lifecycle. 

Outcomes We Focus On

Business Outcomes:

  • Greater confidence in investment and funding decisions.  
  • Better understanding of project value drivers and economic risks.
  • Improved capital allocation across competing development options.  
  • Stronger project bankability and investor confidence.  
  • More resilient business cases, supported by sensitivity and scenario analysis.  
  • Increased alignment between project strategy and long-term value creation.  

Technical Outcomes:

  • Reliable CAPEX and OPEX estimates appropriate to the study maturity.
  • Clear estimate assumptions, contingencies and confidence levels.  
  • Improved understanding of cost drivers and economic sensitivities.  
  • Stronger integration between engineering definition, schedule and economics.  
  • Better-informed option selection through value-based decision frameworks.  

What We Deliver

We develop capital cost estimates that support the level of project definition required at each study phase – against AACE International Recommended Practice Estimate accuracy ranges (Class 1 to 4). We prepare estimate basis information that makes the estimate class and cost assumptions clear and reviewable. This includes methodology, inclusions, exclusions, exceptions, risks, opportunities, contingency basis and supporting information from engineering, procurement, project controls and delivery planning inputs. This approach enables project teams to evaluate confidence levels and funding strategies using risk-informed scenarios rather than relying solely on deterministic estimates.  

Our in-house estimating system draws on more than 40 years of Sedgman study and project delivery experience, providing access to historical project data, benchmarks, supplier inputs and discipline knowledge that strengthen the reliability of our estimates. We support estimates with quantitative contingency modelling, using risk-based inputs and probabilistic analysis to test the potential impact of scope maturity, market conditions, productivity, design development and execution uncertainty. This enables clients to understand likely cost ranges, confidence levels and key cost drivers, rather than relying on a single-point estimate alone.  

Reliable estimating is fundamentally about risk management. Our approach helps clients understand not only the likely project cost, but the level of uncertainty surrounding the estimate and the factors most likely to influence future project outcomes.  

The backbone of our operating cost estimating capability is more than 35 years of practical experience as a contract process plant operator. Our teams draw on real operating knowledge, maintenance experience, production data and lessons from comparable sites to test OPEX assumptions against how plants are actually run. This helps clients understand the operational cost drivers behind the investment case, including labour, mobile equipment, spares, consumables, utilities, maintenance, logistics, site services and operational readiness. Unlike organisations that estimate operating costs solely from benchmark data, Sedgman’s operational experience provides firsthand insight into how facilities actually perform, where hidden costs emerge and which assumptions most strongly influence long-term operating margins. 

We connect capital and operating cost inputs with project economics so clients can assess the commercial implications of study options. This can include evaluating development pathways, alternate mine scheduling, processing alternatives, project timing, production assumptions and cost sensitivities at a level appropriate to the study phase. Well-developed economic models also support project bankability by providing stakeholders, lenders and investors with greater confidence in project assumptions, value drivers and financial resilience.  

We use value engineering and modelling to help clients compare options through a commercial lens, not just a technical one. By bringing together cost, schedule, scope, recovery, throughput, operability and risk considerations, we help identify the project choices that offer the strongest balance of value, confidence and deliverability. Our objective is not simply to compare solutions, but to identify the development pathway that delivers the optimal balance of return, risk, capital efficiency, operability and long-term asset value. We also evaluate how energy consumption, water demand, emissions performance and resource efficiency can influence future project economics, regulatory risk and long-term competitiveness.  

Get In Touch

Talk to Sedgman about your study estimate or value model

Click here