We frequently receive requests for a ROM, or rough order of magnitude, for container projects. This is common practice in the early stages of project management and budgetary discussions. While these estimates can be helpful in understanding the scale of a modified shipping container project, we want our customers to understand the purpose, accuracy, and limitations of a rough order of magnitude estimate. 

What Is a Rough Order of Magnitude?

We use ROM estimates to give potential customers a ballpark idea of the cost of a project. They allow stakeholders to get a general idea of what’s involved in a project. ROMs also help in high-level decision making, setting initial expectations, and determining if a project is feasible and worth pursuing. 

How Detailed and Accurate is a ROM?

First, let’s emphasize the word “rough” in the ROM acronym. A ROM is far from an itemized quote. It’s intentionally broad and provides a wide range of values. The industry standard estimates ROM accuracy at -25% to +75%. This is a reflection of the inherent uncertainty of the early stages of a project, especially when Falcon has limited information on unique container requirements, modifications, and more.

What Determines a ROM Estimate from Falcon?

Several factors come into play when we create a ROM estimate for a potential customer. We often pull from historical data with similar projects, use our expert judgment, and look at the predetermined costs of our standard floor plans. This information is typically sufficient to provide our customer with a ROM estimate. 

What Are the Limitations of a ROM?

While rough order of magnitude estimates are certainly useful, you must be aware of their limitations. Without the detailed information that comes from an in-depth conversation between a customer and one of our salespeople, you can anticipate a Falcon ROM’s accuracy to lie in the aforementioned industry standard range of -25% to +75%.