Isn’t it time for owners, designers, engineers, and builders to STOP thinking about accurate construction cost estimates?
The fact of the matter is that there is no such thing as an “accurate construction cost estimate”.
Measuring accuracy requires a reliable reference point or datum. In construction cost estimating there is no such value. Many mistakenly use the actual build cost, others use historical costs, while other depend upon experience to measure some level of accuracy. None of these can serve as a datum. Bad datums provide poor measurements.
A construction cost estimate, however, can and should be Objective, Current, Granular, and reflect LOCAL Market Labor, Material, and Equipment costs. A detailed, line items estimate using this information provides the highest level of cost visibility, transparency, and management possible.
A detailed line item cost estimate using objective, current local market granular line item construction task data delivers should therefore be used prior to the procurement of ANY repair, renovation, maintenance (including preventive, routine, etc.), and new construction service. This is especially true for public sector organization where fiduciary responsibility is a legal and professional requirement.
