Construction Cost Estimating Factors

Construction Cost Estimating Factors 2022 – Construction Cost Estimating Factors that determine validity, transparency, and level of cost management capability.

 

CORE PRINCIPLES

  1. An estimate is no better than its basis.
  2. An estimate is a prediction and carries uncertainty.
  3. An estimate is a decision-making tool.
  4. Variations in an estimate can be found in the basis.

FACTORS IMPACTING AN ESTIMATE

  • Access
  • Corruption/fraudulent practices
  • Culture
  • Data architecture (standardized, common terms, definitions, information formats)
  • Early and ongoing communication of participants
  • Environmental aspects
  • Equipment availability
  • Local and general market conditions
  • Location
  • Labor availability and skill
  • Material availability
  • Means and methods
  • Organizational leadership
  • Owner leadership and competence
  • Programmatic approach and planning, procurement, project delivery methodology
  • Project timeline
  • Scale/size
  • Statement of Work (SOW) detail
  • Supporting technologies
  • Technical and cost visibility and transparency
  • Team skill (internal and external) of all participants and stakeholders

via Four BT, LLC – www.4bt.us – LEAN Construction Solutions – Locally researched detailed unit price cost data, Integrated planning, procurement, and project delivery, Job Order Contracting tools and services.