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 […]
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 […]
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 […]
Quantity Takeoff for Conceptual Cost Estimating
You might wonder, why would someone want to take time out of their day writing about quantity takeoff on a cost estimating blog. Whenever the question “how do you do the quantity takeoff” comes up, the answer is invariably about the methods used: manual or software. I will cover the software for quantity takeoff in […]
Direct vs Indirect Costs for Construction Projects CAPEX
Direct and Indirect Project Costs The distinction between direct and indirect project costs in a capital cost estimate is sometimes not so clear. Where do we draw the line? There is a question that comes up quite often. What are the indirect costs for a capital cost estimate? For the person who is not very […]
Capital Cost Estimating – Types and Methods
Working as a cost consultant, I get lots of questions from my clients about how to define the types of cost estimates, the methodologies used for estimating and where to find applicable guides. I thought I would write a blog post to share some quick knowledge. To help us understand how we decide what method(s) […]