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8 essential steps for effective project cost estimation and budgeting

Fieldwire

To say that winning bids is the key to success in construction is a half-truth. Subcontractors getting awarded a contract spells financial disaster if the bid is too high to be competitive or too low to be profitable. Bidding on projects you have yet to gain experience in can broaden your horizons.

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Should Owners Be Allowed to Delete Line Items of Work?

Construction Dive

By Bruce Jervis Some payment schedules are structured as line items of estimated quantities of unit-priced work. When pricing its bid, the contractor necessarily allocated project overhead and anticipated profit among the line items. A reduced scope of work should reduce project overhead costs.

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COVID-19 – IMPACT ON CONSTRUCTION

Chianelli Estimating

So what happens when the engine get restarted and the stalled construction sites reopen, projects that were put on hold will be back in the works and new jobs will be out for bid. There will also be a huge supply and demand market which will overwhelm suppliers and congest delivery schedules. How will it affect schedules?

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How Much Does Rework Really Cost Your Job and What Can You Do to Stop It?

Construction Junkie

Unsatisfied with stopping at direct cost, the researches at Navigant then turned their attention to overhead costs, which include managerial, supervisor, and site safety costs. With both the direct and indirect factors combined, it was determined that the median cost rework accounts for is 9% of the total project cost!

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The Rise of Business Intelligence in Construction

Viewpoint Construction Technology

Business intelligence software allows a firm to control costs by better managing and anticipating labor, inventory, project costs and more in every process from bidding to building. This lets contractors smartly chase and bid for the right projects that provide the best potential for successful bottom lines.

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The Simple Guide to Repair, Renovation, Construction Cost Control

Job Order Contracting

For example, comparing owner project estimates with contractor estimates, comparing planned scope, cost, schedule, resources, performance, and values against initial plans are all commonplace activities. The later includes the builders overhead, profit, and contingencies. At minimum cost estimates should be reviewed quarterly.

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JOC Tutorial #71 – Terms

Job Order Contracting

(a) “Adjustment factor” / “coefficient+ – job order contractor’s competitively bid adjustment to the organizations prices as published in the current unit price book. The total of all line items is then multiplied by the contractor’s competitively bid and accepted adjustment factor/coefficient.