Valid construction cost estimate creation is the goal of every professional estimator.
Any professional construction cost estimator worth their salt will not talk about “accuracy”. In fact, it may be best to avoid any person or vendor that makes claims about the accuracy of their estimate or cost information. The reason is simple, an estimate, by nature, is an approximation. Furthermore, measuring accuracy is impossible as there is no datum. Using the final construction cost, for example, is just plain silly as there are far too many variables involved in the outcome.
Nonetheless validity of a construction cost estimate is critical to cost management.
Definition of VALIDITY – the quality of being logically or factually sound; soundness or cogency; the state of being legally or officially binding or acceptable.
A construction cost estimate is the summation of individual, granular cost elements, using established methods and valid data, to approximate the future costs of an activity, based on what is known today.
The management of a cost estimate involves updating costs with current data as it becomes available and revising the estimate to reflect changes.
Generating and managing valid, verifiable construction cost estimates is a critical, but rarely properly performed, capability for real property owners, architects, engineers, builders. and oversight groups.
A locally researched, granular, detailed line-item unit price book (UPB) is a valuable tool for creating a valid construction cost estimate. The collaborative use of a locally researched UPB on an early and ongoing basis also aids in the creation of a detailed, well-communicated Scope of Work (SOW).
Final procurement of any repair, renovation, maintenance, or new build service should always involve review of a detailed line time construction cost estimate and quantities.
via Four BT, LLC www.4bt.us – Integrated construction planning, procurement, and project delivery solutions.
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