To use public funds effectively, the government must employ effective
management practices and processes, including the measurement of
data.
Reliable construction cost data is the foundation of any repair, renovation, maintenance, or new build requirement and associated planning, procurement, and project delivery activity.
All public sector departments and agencies would greatly benefit, and meet their fiduciary responsibilities by implementing a consistent, robust methodology based on current best management practices.
The use of locally researched detailed unit price book (UPB) cost data across the federal, state, county, and local government sectors for developing, managing, and evaluating program cost estimates is the current best practice for assuring cost visibility, transparency, and providing appropriate validation.
Implementing a reliable, high-quality cost estimate and associated best
practices associated with effective program level management should be a priority.
The current practices of using parametric cost modeling, sole reliance upon contractor or subcontractor lump sum bids, national average cost database, area cost factors, city cost indexes or other location and/or economic “factors”, and “historical information”, should be abandoned
Furthermore, construction cost estimating should be a component within an overall LEAN integrated planning, procurement, and project delivery environment. This would assure the early and ongoing used of information by all participants and stakeholders within a shared, common environment. All information would be verifiable, current, and traceable, as well as reflective of current local market condition.
All the tools and support services are readily available to support implementation of the above. The result would be 30%-40%+ gains in productivity and cost savings.
All that is needed is leadership.
