What to Really Expect with a ROM (Rough Order of Magnitude)

 

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.

DSC_0998

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%. 

IMG_1669

How Can I Get a Precise Quote?

In order to receive a more precise quote for your modified shipping container project, we need your time and assistance. This usually looks like booking a time to speak with one of the members of Falcon’s industry-leading sales team. They can walk you through important considerations like floor plan options and modification choices. They’ll help you consider the unique needs of your container project. Once we’ve worked together to define those specifics, we can narrow down the very big and broad ROM estimate to a more concise and accurate one.

Do you have a container project you’d like to discuss? We’d be happy to provide a ROM estimate! But we’re also happy to provide the most accurate estimate for your project. We encourage you to reach out to our team at 877-704-0177 or email us at sales@falconstructures.com. Let’s book a time to discuss your modified shipping container idea!

New call-to-action

THINK INSIDE THE BOX®
WITH OUR BLOG

Get everything from shipping container basics, to detailed how-tos and industry news in our weekly blog. Stay inspired and subscribe!

RELATED BLOGS

All-Metal Locker Room for a Compressor Station

All-Metal Locker Room for a Compressor Station

READ MORE

First Responder Training Facilities in Modified Shipping Containers

First Responder Training Facilities in Modified Shipping Containers

READ MORE

Why We’re Listing Container Prices on our New Website

Why We’re Listing Container Prices on our New Website

READ MORE