To estimate, per the Merriam-Webster dictionary, is to produce a statement of the approximate cost. Construction cost estimators know there is a more to it than this definition indicates. First, there are several levels of estimate ranging from conceptual to detailed line item, including quantities, equipment, material, and labor costs. Second, there is the estimating process and associated source materials. Third, there are location, weather, and economic factors… not to mention just plain unavoidable circumstances or variables… etc. etc. etc.
Many see little value in budgetary estimates exclusive of longer term financial planning purposes. Many also don’t see much point to “system” or “assembly” level estimates. The reason being that it’s rare that two assemblies or systems are exactly alike in differing locations/applications…..
A locally researched detailed line item database, organized by CSI MasterFormat – 50 Division is a valuable tool for any estimator and real property facilities manager. Properly developed and maintained, it provides a shared information source of common terms, definitions, and detailed tasks to clearly define scope and costs.
Estimate Considerations
- Scope of Work
- Site, Weather, Time, Safety, Security, Factors
- Means & Methods
- Quantities
- Labor burdens-SSA, Unemployment & Workers comp (properly calculated in locally researched databases such as the 4BT OpenJOC(TM) Unit Price Book)
- Contractor Overhead & Profit