Community-based Construction Cost Estimating

Community-based Construction Cost Estimating …  The OpenCost^TM Approach

Take advantage of several critical improvements relative to the collection, validation, use, and maintenance of detailed line item unit price cost data to improve construction outcomes.

Traditional cost data commonly available on the market is based upon national averages.   Localization factors are used to attempt to provide a reasonable approximately of construction costs in particular areas.   While this approach is fine for gross approximation, locally researched cost data provides significantly improved financial visibility.

The OpenCost Methodology^TM  is a collaborative and ongoing cost estimation process.  The estimator (owner/contractor/A&E, etc.) leverages an OpenCost^TM locally researched and fully detailed line item cost database as a baseline.    Participant experience and a site visit with all service providers and stakeholders lead to a detailed construction cost estimate.  A collaborative and potentially iterative process then occurs between the owner and contractor(s) on a detailed line item basis.  The standardized terms and data formats contribute to the all parties’ ability to generate the final and mutually approved cost estimates that truly reflects the desired scope of work.

Once the estimate is mutually approved the construction team uses the estimate for the development of the schedule of values, the cost loaded schedule, and management of the construction progress and costs within the limits of the estimate, the associated construction delivery method, contract, and detailed written operations or execution manual.

The OpenCost Approach^TM leverages industry standard terms and definitions expressed in plain English with minimal use of confusing acronyms or abbreviations.  All data is organized by the Construction Specifications Institute MasterFormat.

The OpenCost^TM Approach provides the following features, benefits, and core defensible elements:

• Consistent and localized labor cost by trade
• Crews reviewed and updated
• Appropriate materials and line items
• Line items are reviewed for clarity and reasonableness to ensure basic building materials usage to common area quantities
• Line items reflect approximate quantities according to a trade break down
• Use of licensed CSI MasterFormat
• Ability to create customized line items via changes to material, labor, and equipment, while maintaining core “parent line items”.
• Line item modifiers associated with parent line items to accommodate for variations in quantities, locations, etc.
• Continuous updating process with annual major updates.
• Addresses line items used in 90% or more of common renovation, repair, and minor new construction projects.
• Independent, objective, transparent, and auditable cost research processes
• Costs reflect standard commercial construction specifications for the location
• Developed for ease-of-use for any experienced line item estimator with no additional training required
• Available via secure cloud access
• Developed by experienced line item cost engineers, project managers, and life-cycle cost professionals
• Incorporates input from all users.
• Significantly greater financial transparency
• Subjective values associated with each estimator can be compared against locally researched verifiable information, not with ballpark national averages or factored data.
• Major reductions in errors, omissions, change orders, and legal disputes.