Challenge and improve construction cost estimating methods by enhancing data and ensuring process standardization.
Improving construction cost estimating data and processes are central to significantly enhancing cost visibility and cost management.
Robust Construction Cost Estimating Requirements:
#1. Detailed line item estimating
#2. Local market, current, verifiable and objective labor, material, equipment, and productivity data sets linked to granular construction tasks.
#3. Standardization of terms, definitions, descriptions, and data architecture (sample data architecture: expanded CSI MasterFormat).
#4. Collaborative and integrated planning, procurement, and project delivery processes and teams.
#5. Experienced construction cost estimators.
#6. Leadership support.
Savvy professionals understand the need to Challenge and Improve Construction Cost Estimating.
Advancing construction cost estimating data, tools, communications, and technology is central to achieving sustainable facilities management.
Traditional tools, such a national average cost data, location factors, historical costs, and spreadsheet no longer support today’s need for enhanced cost visibility, transparency, and management.
Advancing Construction Costs Estimating Tools for Today and Tomorrow
- Local market research – To be relevant, construction cost data must reflect local market conditions. This means specifically researching local labor markets across all trades, research local market materials to determine local, regional, and national interdependencies, and of course, equipment costs.
- Dynamic vs. static – Cost data is in continuous flux, therefore local market data needs to be research at least on a quarterly basis, or more frequently basis upon market conditions.
- Granularity – All cost data needs be presented a detailed, individual construction task data to provide the highest level of cost visibility and reliability.
- Objective – Using an independent resource for local market cost data avoid any potential bias or conflict of interest.
- Standard Format – Cost data represented using expanded CSI MasterFormat, with all description in plain English and using industry standard terms.
Traditionally cost estimates are created by either contacting local constractors or subconstractors, or by using a national average construction cost database and applying a cost factor. Neither of this methods generally provides sufficient cost visibility or truly enables cost management.
The ONLY way to have an objective, and verifiable construction cost estimate is to create a line item listing of granular construction tasks using LOCAL MARKET, current labor, material, and equipment costs.
Engage in data driven cost estimating with objective, verifiable, and current local market labor, material, and equipment price books from 4BT (Four BT, LLC).
Approximately 90,000 line items including demolition lines and line item modifiers available within an easy-to-use web application.
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