There is only one sole source of truth for construction cost estimating, locally researched detailed line-item unit price data and associated quantities. Any owner, designer, builder who is not observing this fact has limited cost visibility and is likely to be “off” by 30%-40% or more.
Most federal government agencies incorrectly cost estimate, including the GSA, as they don’t understand this basic fact and do not have robust, organization-wide cost estimating practices.
It’s beyond time for improved leadership, competence, and accountability.
References:
GAO-19-57 – FEDERAL REAL PROPERTY ASSET MANAGEMENT Agencies Could Benefit from Additional Information on Leading Practices
GAO-21-215 – CAPITAL FUND PROPOSAL Upfront Funding Could Benefit Some Projects, but Other Potential Effects Not Clearly Identified
GAO/GGD-00-172R Study on Facility Design Reviews – Federal Facilities Council’s Report on the Role of Facility Design Reviews in Facilities Construction
GAO-19-157SP – Substantial Efforts Needed to Achieve Greater Progress on High-Risk Areas
GAO-22-104481 – DEFENSE INFRASTRUCTURE DOD Should Better Manage Risks Posed by Deferred Facility Maintenance
GAO-21-596 – FEDERAL REAL PROPERTY ASSET MANAGEMENT Additional Direction in Government-Wide Guidance Could Enhance Natural Disaster Resilience