What is the desired outcome of a construction cost estimate? How do we achieve it? These slides will introduce you to easy steps that can be implemented to plan for a quality cost estimate development.

1. How to Plan
for Desired
Cost
Estimate
Outcome
High Quality Construction Cost Estimating

2. What is the Cost
Estimate Desired
Outcome?

3. What is the Cost
Estimate Desired
Outcome?
1.Has to be COMPLETE

4. What is the Cost
Estimate Desired
Outcome?
1.Has to be COMPLETE
2.Has to be DETAILED

5. What is the Cost
Estimate Desired
Outcome?
1.Has to be COMPLETE
2.Has to be DETAILED
3.Has to be VALIDATED

6. Complete
Missing scope is probably the major
risk for cost estimating.
How do we mitigate this risk?

7. Complete
Missing scope is probably the major
risk for cost estimating.
How do we mitigate this risk?
 Cost estimate development
planning

8. Complete
Missing scope is probably the major
risk for cost estimating.
How do we mitigate this risk?
 Cost estimate development
planning
 Allocate proper resources to
complete the cost estimate

9. Complete
Missing scope is probably the major
risk for cost estimating.
How do we mitigate this risk?
 Cost estimate development
planning
 Allocate proper resources to
complete the cost estimate
 Collect all relevant project
information

10. Complete
Missing scope is probably the major
risk for cost estimating.
How do we mitigate this risk?
 Cost estimate development
planning
 Allocate proper resources to
complete the cost estimate
 Collect all relevant project
information
 Develop and review the Work
Breakdown Structure before
starting any cost estimating
activities

11. Complete
Missing scope is probably the major
risk for cost estimating.
How do we mitigate this risk?
 Cost estimate development
planning
 Allocate proper resources to
complete the cost estimate
 Collect all relevant project
information
 Develop and review the Work
Breakdown Structure before
starting any cost estimating
activities
 Implement take-off and cost
estimating procedures that
minimize the risk of errors

12. Detailed
A detailed cost estimate should
provide the proper level of detail to:

13. Detailed
A detailed cost estimate should
provide the proper level of detail to:
 Validate scope completeness

14. Detailed
A detailed cost estimate should
provide the proper level of detail to:
 Validate scope completeness
 Allow for desired reporting

15. Detailed
A detailed cost estimate should
provide the proper level of detail to:
 Validate scope completeness
 Allow for desired reporting
 Accommodate the high and
detailed level cost reviews

16. Detailed
A detailed cost estimate should
provide the proper level of detail to:
 Validate scope completeness
 Allow for desired reporting
 Accommodate the high and
detailed level cost reviews
 Allow for data feed to the
preliminary construction schedule

17. Detailed
A detailed cost estimate should
provide the proper level of detail to:
 Validate scope completeness
 Allow for desired reporting
 Accommodate the high and
detailed level cost reviews
 Allow for data feed to the
preliminary construction schedule
 Allow for data validation

18. Validated
A cost estimate should never be approved without
the ability to validate the data within the cost
estimate.
How do we validate cost estimate data?

19. Validated
A cost estimate should never be approved without
the ability to validate the data within the cost
estimate.
How do we validate cost estimate data?
 By developing a proper price sourcing strategy

20. Validated
A cost estimate should never be approved without
the ability to validate the data within the cost
estimate.
How do we validate cost estimate data?
 By developing a proper price sourcing strategy
 By comparison against existing, in-house similar
project cost data

21. Validated
A cost estimate should never be approved without
the ability to validate the data within the cost
estimate.
How do we validate cost estimate data?
 By developing a proper price sourcing strategy
 By comparison against existing, in-house similar
project cost data
 By using commercially available similar projects
cost data

22. Validated
A cost estimate should never be approved without
the ability to validate the data within the cost
estimate.
How do we validate cost estimate data?
 By developing a proper price sourcing strategy
 By comparison against existing, in-house similar
project cost data
 By using commercially available similar projects
cost data
 By consulting with construction professionals
within the company

23. Validated
A cost estimate should never be approved without
the ability to validate the data within the cost
estimate.
How do we validate cost estimate data?
 By developing a proper price sourcing strategy
 By comparison against existing, in-house similar
project cost data
 By using commercially available similar projects
cost data
 By consulting with construction professionals
within the company
 If there is data within the cost estimate which
cannot be validated, it should be registered as
risk and priced accordingly.

24. Interested to learn more?
Visit us at:
http://www.Emeraldgroup-learning.ca
http://LearnCostEstimating.com