Construction cost estimating is critical to the success of any repair, renovation, maintenance, or new build, and the consistent achievement of best value outcomes.
Levels of Construction Cost Estimates
The are many levels of construction cost estimates based upon a “project” life-cycle. A project could involve repair, renovation, maintenance, or a new build. The “level of estimate” refers primarily to the granularity and therefore also its associated transparency and cost visibility. Which level of estimate is appropriate for use depend largely upon organizational processes and levels of competency, as well as “stage” of the project. Stage in this case refers to whether a project is being defined simply for long-term budgetary purposes, or being planned for execution.
Conceptual or preliminary estimates are developed prior to any design or engineering analysis other than basic requirements definition and or physical and/or functional condition assessment. Cost data obtained at this level is generally used to identify and rank deferred maintenance needs and/or aid in decision support relative to new construction. The types of estimating used at these stages provide gross levels of funding need only, and include the following “parametric estimating” types: building type/building level estimates, square foot level estimating, and systems-level estimating. All of these depend upon historical information for cost sourcing and/or national average cost databases. The value of these types of estimates continues to be debatable.
Detailed estimates on the other hand, provide high levels of cost visibility, transparency, and can be validated. This level of estimating requires a specific set of requirements information provided by the owner/owner’s representative. An experience senior construction cost estimator and/or estimating teams then develops a detailed unit priced cost estimate. A key tool in this regard is a locally researched detailed unit price cost database organized using CSI Masterformat. This tool validates the estimate for the local area, shorten estimate creation time, provide a common method for communicating construction project requirements among disparate project participants and stakeholders, and allows estimates to easily be updated and/or reused.
Summary
Only detailed line item construction cost estimates should be accepted for review and approval by owners from contractors or other service providers for a planned project to be executed. Additionally, an integrated construction planning, procurement, and project delivery process is equally important to assuring consistent best value outcomes.
via Four BT, LLC – Four BT, LLC provides innovative integrated project delivery solutions inclusive of detailed locally researched construction cost data, and enabling SAAS technology. We help guide organizations to achieve accelerated improvement of their facilities repair, renovation, and construction outcomes, via client-specific programs centered upon achieving best value outcomes. Proven LEAN construction planning, procurement and project delivery processes, actionable data, enabling cloud technology and ongoing training, are the proven path to significant gains in efficiency and satisfaction. www.4bt.us