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Relearn Construction Cost Estimating – 4 Critical Learnings

Job Order Contracting

It’s time to relearn construction cost estimating. Before relearning construction cost estimating, it’s important to hit your resent button. Use and share objective, granular, current, and locally researched line item data that is organized using a standard data architecture (for example, expanded CSI Masterformat).

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Improve Construction Cost Certainty

Job Order Contracting

The need to improve construction cost certainty is critical regardess of whether repair, renovation, maintenance, or new build projects are invovled. Create detailed line item estimates for ALL repair, renovation, maintenance, and new build projects. Ensure cost data is CURRENT and organized using expanded CSI MasterFormat.

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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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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.

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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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Active Construction Cost Management – Government, Healthcare, Education, Transportation

Job Order Contracting

Active Construction Cost Management is important to any repair, renovation, maintenance, or new build activity. Questions every real property owners should ask before procuring a repair, renovation, maintenance, or new build service. #1 1 Can I objectively validate the cost estimate? #2 2 Is the cost estimate objective? #3