Pricing Risk in Construction Tenders
Risk Pricing Approach Additional details are: While the literature suggests that risk pricing is a separate process that follows after the completion of the base estimate, practice shows that this process is contingent on preferences within each organization. Who is involved in the pricing of risk? This is dependent on the organization and the size and type […]
Maximizing Profits – Estimator’s Role
Efficiency versus productivity Estimating a construction project for bidding is a task that requires a multitude of skills. Cost estimating skills are the top competencies that good estimators have to master. To be a great estimator, one needs to go beyond productivity and become efficient at cost estimating. When asked what they do for a living, most […]
Construction Market in 2016 – The Good and The Bad
North American Construction Landscape in 2016 A positive outlook for the construction industry in 2016 is something that not all of us would expect. Particularly for those involved in the oil & gas and pipeline construction markets. The truth is the construction market keeps a positive momentum, just shifting from one sector to another. The […]
Project Delivery Methods
Project Delivery Methods and the Impact on Project Success Among the many factors that greatly affect the successful delivery of a project is the project delivery method. Choosing the right one can make or break it for a project. The project delivery method is sometimes not considered necessary until the project goes through a few […]
Contingency in Capital Cost Estimating
Contingency in Cost Estimating Owners add a contingency to a project to deal with project overruns due to uncertainties. A large number of projects are finished with costs and schedule overruns. This is why, as a cost estimator on a capital project, it is very important to understand how to use contingency and how to evaluate […]
Benefits of Using Production Rates in Construction Cost Estimating
Why use production rate versus unit rate cost estimating? Using production rate cost estimating, also called “bottom-up”, is the very first level of knowledge a cost estimator should acquire. It takes time and consistency, but it is all worth the effort. From my observations in the field of cost estimating and working for various clients, […]