My Road Map to a Great Cost Estimate
What makes a great cost estimate? Construction cost estimating as a career choice? That was the question I asked myself many years ago. It was when I started working as a cost estimator (because I lacked a project management opportunity). I still make a living as a cost estimator and found the answer to my […]
Use of Allowances in a Cost Estimate
Cost Allowances in Detail and Conceptual Cost Estimates Let’s look at what allowances are and how they are used in a cost estimate prepared for construction contracts vs. allowances used in conceptual cost estimating. We will see that they can be very different. Firstly, let’s define the term “allowance” in the context of cost estimating. […]
Capital Cost Estimate – Indirect Costs
In the world of construction contracting, the term “indirect costs” is very well understood. Things can get somehow confusing when the cost estimate needs to include the project capital costs. Partly because there are two different types of indirect costs included in a capital cost estimate: the contractor’s indirect costs, which are part of construction […]
How a Cost Estimator Can Help Small Contractors Increase Profit
Setting the Stage As a cost estimator, working for a large construction corporation or for a small contracting firm are two very different things. Most likely, the large construction firm has a cost estimating department led by an Estimating Manager, they have procedures and policies in place, learning and career growth opportunities, etc. All the […]
Cost Estimating Software – Choose the One That is Right for You
Cost Estimating Software – Your Friend or Your Enemy? With so many options out there, from apps to applications, it becomes harder and harder to choose the best tool for the job. It is no different for construction cost estimating. Back in the day, there were 3 or 4 cost estimating software on the market. […]
Capital Cost Estimate – Direct Costs
Direct Costs In the field of cost estimating, the direct costs can be defined, in a simplistic way, as all the costs associated with construction activity. If we perform the activity, we incur the costs and vice-versa. Only the resources allocated to construction activities are considered direct costs. Let’s say that we have an excavator […]