The following Principles of Verifiable Cost Estimating can significantly improve both construction cost visibility and management.
Summary of key elements identified in each of the principles:
Integrity – A robust cost data management process shall be implemented to ensure objectivity, timeliness, standardization, and that everyone is working with the same information. All information shall be updated regularly and based upon local market conditions and current construction means, methods, and standards, and supported by proven data management and verification strategies.
Collaborative Framework – A robust, comprehensive framework shall be applied for all repair, renovation, maintenance, and new construction activities. This framework shall be supported by a long-term multi-party agreement between real property owners and services providers and an associated written operations manual / execution guide. This framework shall support early and ongoing information sharing and decision-making among planning, procurement, and project delivery teams.
Granularity – Task shall be presented at the line-item level to ensure the appropriate communication and use of required labor, material, equipment, and quantities. Each task shall be assigned an appropriate data classification standard, such as expanded CSI Masterformat. Productivity information shall also be included as well as a unit of measure. Each task shall also have a description, communicated in in plain English using industry standard terminology.
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