Accurate, detailed construction cost estimating is critical to the success of any repair, renovation, or new build project. Top estimators have years of experience and a working knowledge of construction means and methods.
Detailed line item estimating is the most accurate and transparent form of construction cost estimating. It’s use is a requirement in the public sector for projects over a certain size, and should be required by all facilities owners, facilities managers, procurement professionals, or oversight groups.
Communicating the estimate is just as important as creating it. A locally researched detailed line item unit prices book (UPB), organized using CSI MasterFormat can greatly aid in both aspects. A properly created UPB has a description for each task in plain English, that clearly outlines the activity. Each line item also has labor, material, and equipment information and associated cost for each, in addition to an overall cost for the line item. The overall cost for the line item includes a unit of measure such as: EACH, SQUARE FOOT, LINEAR FOOT, CUBIC YARD, etc. Finally a crew is associated with each line item to aid in understanding the associated productivity and cost, etc.
LEAN construction delivery methods, such as the OpenJOC(TM) Job Order Contracting Solution require the use of a locally researched unit price book as well as specified workflows, approvals, documents, etc. Below is an example of an Job Order Contracting workflow.
While the above process can be tailored to organizational requirements, certain activities and stages represent best management practices and should be maintained in order to achieve best value outcomes. Key process elements begin with the Owner and Contractor Scopes of Work, and a Joint Site Visit.
Owner Scope of Work – Definition of repair, renovation, or new construction project that will communicate sufficient information to enable a builder to develop or jointly develop a detailed line item estimate.
Joint Site Visit – Builder and owner representatives jointly meet on site to discuss project requirements.
Contractor Scope of Work – Contractor prepared scope of work based upon discussions with owner, a joint site visit, and the creation of a detailed line item estimate. Both the scope of work and the line item estimate form a builder’s proposal for a project.
Learn more about the complete workflow… stages… documents….and more?