Whether estimating renovation, repair, new construction projects or creating deficiencies resulting from facility condition assessments (FCA), detailed line item estimating, using locally researched cost data, provides the best value to owners, contractors, AEs, and oversight groups. Assemblies and other higher level estimating approaches are of limited value at best, while square foot or building models provide even less benefit.
A detailed line item cost estimate is critical to construction project success or failure. It provides a complete scope of work (SOW) that is easily understood by key participants and stakeholders, while assuring full financial visibility and transparency.
When combined with LEAN construction delivery methods, such as Job Order Contracting and Integrated Project Delivery, detailed line item estimating results in the consistent completion of over 90% of ALL projects on-time, on-budget, and to everyone’s satisfaction. When compared to the dismal industry norm of less than 20-25% of ALL projects delivered as intended, the need for actionable, detailed line item construction cost data becomes readily apparent.
Best value line item construction cost databases share the following characteristics, all of which are provided within 4BT OpenCOST(TM) and 4BT OpenJOC(TM) data frameworks:
- Full descriptions written in plain English and comment terms, without the excessive use of acronyms or abbreviations.
- Open, adaptive unit pricing
- Locally researched cost data
- No use of cost factors or indexes
- Transparent and detailed breakdown of crews, labor, materials, and equipment.
- Standardized units of measure
- Organization via CSI MasterFormat
Multi-level and multi-format training of both technical and business workflows are also required in order to best leverage actionable line item construction cost data.
Learn more about how to rebuild your construction cost estimating process to be in alignment with proven LEAN construction delivery methods.
