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 […]
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 […]
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 […]
My Top Sources for Construction Cost Data
Construction Cost Data Sources The following are my top data sources for construction cost estimating. I use them successfully in my detail or conceptual cost estimating. They apply to most construction markets, from buildings to many industrial and infrastructure projects. Of course, nothing beats the actual cost data that we collect from completed projects. Unless […]
CAPEX Development – Data Sourcing Strategy
We are living in a world where the top expectation is how to get more for less. Companies in the design and construction business find it difficult to position themselves in the market if they do not stay competitive. Yes, the unique value proposition is a valid marketing approach. But, how do we deliver on […]