Construction cost estimate validation is a process to determine the relative level of reliability. Note that the work “accuracy” is purposely not being used. Any use of the work accuracy with the word construction estimate is simply foolish. If, you would like to learn more on this particular topic…visit here.
Construction cost estimate validation is basically an objective risk analysis and assessment of information reliability.
In order for a construction cost estimate to be reliable, it must reflect the local labor, materials, and equipment cost at a granular level and a detailed scope of work (SOW). Granular in this case means detailed line item construction tasks that capture work requirements in terms of crews, productivity, and required materials and labor.
Locally researched detailed unit price books are very useful in validating estimates provided by contractors and subcontractors/trades, ass well as preparing independent owner estimates, They significantly reduce time, while also reducing the number of errors and ommissions.
National average cost books and/or the use of area cost factors, or construction cost indexs (CCIs) of any type do not provide sufficient reliability to aid in construction cost estimate validation.
Real property owners would greatly benefit from assessing construction estimate results using appropriate metrics. The practice of comparing construction cost estimates to final construction costs as a metric, for example, is just plain silly.
Construction Cost Estimate Validation is critical to achieving best value outcomes for owners, architects, engineers, and builders.