Estimating Project Cost

Escalation

This Executive Insight looks at escalation, which affects both current and yet to be issued construction contracts.

Event Contingency

Event contingency is an event, such as an emergency, that may―but is not certain to―occur. This Executive Insight focuses on this important element of an engineer’s or a constructor’s price.

Estimating Construction Change Orders

Change orders are an inevitable part of construction projects.

Project Cost Estimating – Introduction

The purpose of the Executive Insight is to increase understanding of the critical importance of cost estimating in capital project development and delivery processes.

Scope Development to Support Cost Estimating

Preparing accurate and timely cost estimates requires a clear statement of project scope. At one extreme, this scope can be described as a single parameter facility cost driver.

Essential Requirements for an Effective Cost Estimating Database

Accurate development of a cost estimate requires a scope document describing the project objectives and an appropriate cost database for converting the scope requirements into estimated costs.

Early Project Cost Estimating for Decision-Making on Project Execution

Decisions must be made throughout the project development and execution process as more information becomes available. Effective decision-making requires high-quality information on which to base a decision. Perhaps one of the most critical project decisions is the approval of a project’s cost or budget.

Bidding Unit Price Work – Low Bid Hoover Dam

Bidding a unit price contract to secure work is more than taking the cost estimate number for each bid item and adding profit and overhead.

Pricing Work for a Profit: Developing a Construction Estimate

A contractor's cost estimate serves two purposes: 1) it defines the probable cost associated with performing the required items of work; and 2) it defines the risk of performing the work according to the contract requirements, the specifications.

Pricing Work as a Team: Joint Venture Estimating in the Heavy Civil Infrastructure Environment

A simple definition of a joint venture (JV) is: “An association of two or more companies engaged in a singular, for-profit business enterprise without actual incorporation.” A simpler definition: two or more contractors agree to partner up for one or more projects.

Minimizing Engineering Cost Overruns

This Executive Insight looks solely at cost overruns in engineering projects. In design/build and EPC projects where engineering and construction are tightly integrated, engineering performance is a leading indicator of later challenges faced as construction begins and progresses.