vault backup: 2025-07-22 16:59:59

construction-estimating.md

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 # Construction Estimating
 
-Construction estimating is a subset of cost estimation.
+Construction estimating is a subset of cost estimation.
+
+## Purpose
+
+The purpose of [[construction-estimating]] in practice
+is not to determine the cost of the scope,
+which would take far longer than allotted for bid,
+
+### For the Solicitor
+
+* Determine feasibility of functional requirements
+
+> [!info] Type 2 Owners
+> For some owners, money is no object,
+> and standardization is far more important
+> than any potential construction savings.
+> 
+> These owners can be expected to decline every [[value-engineering]] option offered
+> (see [[gold-plating]]).
+
+### For the Contractor
+
+* Make profit to meet growth target
+* Secure work for current and projected employees (fill backlog)
+
+%% TODO: "Determine the sale price of a service" %%
+
+> [!aside]
+> I take increasing issue with the common model
+> of measuring operational success by negative overrun,
+> as it is incompatible with the preferable target of estimate certainty.
+
+#### The Role of the Estimator
+
+The role of the estimator is to model the potential cost distribution of the project,
+taking actions to reduce the model's uncertainty.
+
+The effect of estimating methods can be represented as $d\sigma$,
+thus efficiency is $\frac{d\sigma}{dt}$.
+
+#### The Role of the Executive
+
+The role of the executive is to allocate profit and contingency
+according to the potential cost distribution
+weighted by the organizational desire to win the project.
+
+$$
+{E}[P]=
+$$