Many public sector facilities professionals are well aware that actionable project (repair, renovation, new build) estimates should use current, locally researched unit price cost data, complete with labor, material, equipment, and productivity/crew information, in order to achieve reliable cost visibility and transparency.
Unfortunately most can’t achieve this due to lack of knowledge, awareness, and or support from their “leadership”. Senior organizational leadership rarely, if ever, supports the “cost” to develop requisite decision-support tools and fully trained in-house facilities teams.
The next result is 20%-40%+ waste, excessive change orders, and late delivery, for 80%+ of ALL projects.
That’s the “hidden elephant” in the room.
Unless an owner has a good starting point, he/she, for all intents and purposes, is just monitoring and comparing their relative “guesstimate” (or those of their contractor and/or subs… not what the project should cost. Secondly, unless robust processes are required and continuously improved (for example LEAN job order contracting and integrated project delivery), achieving targeted goals is unlikely.
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