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Enhance Construction Cost Estimating – 5 Steps

Job Order Contracting

Archaic cost estimation methods such as the use of historical data, lump sum subcontractor quotes, and/or national average cost data and location factors, area cost factors, and/or economic factors. What’s needed to improve construction cost estimating? Reduce the number of surprises, disruptions, and change orders.

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Construction Cost Estimating Facts

Job Order Contracting

Construction Cost Estimating Facts Construction Cost Estimating Facts #1 There is no such thing as an “accurate cost estimate” Beware of any so called expert, estimating firm, or vendor using the term. #2 2 Construction cost estimating is NOT an art.

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Valid construction estimates

Job Order Contracting

Valid construction estimates are based on processes and procedures, however, most organizations rely upon dated, ineffective methods. Cost and time estimates are imperative to the success of any construction project, both during construction and throughout the project life. 2 Detailed line item estimating.

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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.

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PROVEN FORMULA FOR EFFICIENT FACILITIES Repair, Renovation, Maintenance, and New Construction

Job Order Contracting

PROVEN FORMULA FOR EFFICIENT FACILITIES Repair, Renovation, Maintenance, and New Construction. Robust Process Integration + Common Shared Cost/Technical Information + Supporting Tech = Measurably Improved Cost Management. Put an end to poor traditional planning, cost estimating, procurement, and project delivery practices!

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Unit Price Construction Cost Estimating

Job Order Contracting

Unit price construction cost estimating is the foundation of every reliable cost determination prior to procurement. Systems level estimating, historical data, assemblies, or square foot calculations should never be exclusively used to procure a repair, renovation, maintenance, or new build service. for the local market.

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Construction Cost Estimating Lunacy!

Job Order Contracting

Accuracy is a very common term used in describing the primary attribute required in construction cost estimates. The use of the term accuracy in concert with a construction cost estimate is questionable is questionable at best but is sheer lunacy if the standard is the final construction cost! That is a known standard/datum.