Cost Estimating

–Process of collecting, analyzing and summarizing data –Prepare educated projection of anticipated cost of project –Prepared by PM or estimating department

Go thru F 4-1

Rough Order of Magnitude –Preliminary project budget – little info Conceptual Cost Estimates –Incomplete design documents Detailed cost estimates –Prepared from complete design docs

Risk Analysis Greatest risk is estimating productivity To minimize risk Rely on good estimating practices and procedures Choose good in-house PM and supervision teams Choose qualified subs and suppliers\ Plan to build in less time than contracted Be selective in projects (owner, designer, location)

Estimating Strategies –Develop a responsibility list –Schedule estimate –F 4-3 –Develop a bar chart for estimate – keep people on track Factors affecting estimate –Project location, complexity, type of contract, familiarity w/ Architect, Workload, season, familiarity w/owner, adequacy of documents, availability of estimating resources