Executive Summary When an owner determines the method of award is that the low bid wins, they shouldn’t expect contingency in a contractor’s bid. Here’s what they should expect. What is Contingency? If you go to google.com and type in “definition of contingency” you get this: [QR] A provision for […]
An Hour’s not an Hour, and it’s Certainly not a Day
Executive Summary There are differences in an hour: a manhour, a crewhour, a 50-minute hour. And an hour’s not a day, so there is another calculation for a manday. Here is a quick explanation of these estimating terms. Definitions There are several ways to estimate the cost of construction work. […]
Mistaken Taboo: Project Overhead
Executive summary. Field overhead carries different names with different contractors and owners. Discussed here is what field overhead is, and why it’s important for owners to understand. Project estimation. When a construction project is estimated, a good estimate will be one that captures all costs related to a project. These costs include, […]
Estimating: It’s an Art and a Science
Executive summary. Construction estimating isn’t wholly about the numbers. It involves a “feel” in its execution. This is why many say estimating is an art and a science. What is estimating? An estimate is just that. An estimate. Not an exactimate. Getting low on bid day or successfully negotiating a job isn’t […]
The Joint Venture Estimate: Setup is Key
Executive summary. Whether bidding a job together in one shared document, or running comparison estimates, the setup in a joint venture effort is critical to success. Consider establishing the following before starting your estimating effort. And, be consistent. Be consistent. Why setup is so critical. There’s nothing more important in […]
Estimate Handoff – Estimators to Field Team
Executive Summary It’s great that your estimators just landed a new project, but your competitive advantage can be lost without a synchronized handoff to the field team. Make sure to have a formal meeting between the estimating and project management teams before the project starts. Estimator knows best. There is […]
Calculation of Owner’s Estimate
SJCC received the call to assist with the Owner’s estimate on this project due to the magnitude of the job and the accelerated pace of getting the project designed, bid, and awarded in a tight timeframe. The State of Hawaii was challenged with losing funds if the job could not […]