article thumbnail

12 Step Program for Creating Credible Construction Estimates

Job Order Contracting

The below 12 Step Program for Creating a Credible Construction Estimate is a valuable tool for any real propery owner or services provider. #1 1 Define estimate’s purpose ■ Who will use the estimate and how. Monte Carlo simulation) to develop a confidence interval around the point estimate. ■

article thumbnail

Credible Construction Estimate Core Elements

Job Order Contracting

A credible construction cost estimate is required prior to engaging in procurement. The follow elements are common to a credible construction cost estimate. Credible Cost Estimate Core Elements #1 Objectivity – The information used and those invovled in the creation of the construction cost estimate must be objective.

professionals

Sign Up for our Newsletter

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

article thumbnail

Validity of a Construction Cost Estimate – Public Sector

Job Order Contracting

The validity of a construction cost estimate, the most important aspect, is often overlooked and resulting in billions of dollars was every year. A construction cost estimate must be independently validated. Key Principles There are key principles that should be adhered to when preparing a construction cost estimate.

article thumbnail

Construction Cost Estimator – Line Item

Job Order Contracting

Construction Cost Estimator – Line Item. A superior line item construction cost estimator generally has an intricate knowledge of field construction techniques, uses a common data environment, and is skilled at both collaboration and LEAN construction and/or facilities management. Benefits of Unit Cost Line Item Estimating.

article thumbnail

NAPA Endorses GAO Call for Support for LCCA Cost-Estimating Practices

Construction Business Owner

June 13, 2013)— The National Asphalt Pavement Association (NAPA) backs the recommendations released by the Government Accountability Office (GAO) regarding the need for federal support to the states in their use of life-cycle cost analysis (LCCA) for federal-aid highway projects. LANHAM, M.D.

article thumbnail

BIM, Value Management, Life-cycle Cost Management

Building Information Management

BIM is the life-cycle management of the built environment supported by digital technology. BIM is the life-cycle management of the built environment supported by digital technology. The recent increase in demand for sustainable or green buildings is further making the consideration of life cycle cost an issue.

article thumbnail

Public Sector Real Property Management – Quality Construction Cost Estimating – Earned Value Management

Building Information Management

The Need for Credible Construction Cost Estimates. GAO and other studies/reports consistently report that errors and lack of due diligence with respect to original construction cost estimates are primary reasons for negative cost and schedule impacts, and overall poor project performance and outcomes.