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id: risk-oriented-estimating
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aliases: []
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tags:
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- destiny/uncertain
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- status/incomplete
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- topic/estimating
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- topic/risk
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- type/philosophy
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title: Risk Oriented Estimating
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---
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# Risk Oriented Estimating
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Risk-Oriented Estimating (ROE), is a methodology for [[construction-estimating]]
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which:
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<!--
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As catchy as the name is,
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it may be more effective to communicate these thoughts as
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a thorough critique of the limitations of traditional methods,
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a
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-->
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Risk-Oriented Estimating (ROE),
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is a [[estimating-methodologies|methodology]]
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for [[construction-estimating]] which:
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* prioritizes estimating tasks,
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* determines necessary [[estimating-detail]]
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ROE leans heavily on [[uncertainty#Value of Information]],
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which challenges the natural tendency to shy from uncertainty
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with the reality of the cost of certainty.
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with the reality of the **cost of certainty**.
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ROE does not endorse common shortcuts that round up to "cover" uncertainty,
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as these ultimately _increase_ risk by inflating the apparent project cost,
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@@ -59,34 +70,13 @@ For systems where EVI analysis determines manual takeoff is still necessary,
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optimizations can be made to decrease the required effort of takeoff,
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and thus the opportunity cost of takeoff.
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Count-based takeoff speed increases with count.
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Optimizing the takeoff process means:
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* _Minimizing_ the need for information outside of drawings
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* _Maximizing_ organizational consistency
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> [!note]
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> Recent events have complicated my philosophy above.
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> It appears that similar efforts have already been made here,
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> their success being a matter of perspective.
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> Is it acceptable that optimal
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#### Naming Conventions (Use Case vs. Description)
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Naming by use case is intuitive for those without estimating or field experience,
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but has the side effect that those accustomed to the names
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will inevitably _treat them as descriptive_.
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| Use Case | Description |
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| ------------------- | ------------- |
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| Hi-Hat | Daisy-Chain |
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| Furnished By Others | Rough-In Only |
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See [[optimal-estimating-patterns]] for more.
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## Potential Objections
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Objections to the use of historical data in new estimates are not unfounded. A
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framework to do so competently and consistently does not currently exist.
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Objections to the use of historical data in new estimates are not unfounded.
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A framework to do so competently and consistently
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does not currently exist.
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> [!info]
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> Nor does the software necessary to utilize such a framework efficiently.
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@@ -110,10 +100,6 @@ to quantify the dollar amount implications of our assumptions.
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There is an enormous gap in complexity between pure square foot pricing and
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[[traditional-estimating-methods]] that tools do not exist to bridge.
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> [!aside]
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> The refusal to acknowledge the potential for more "complex" estimate models
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> hints at issues of organizational ignorance described ~~elsewhere in this vault~~.
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At all points in the estimating process,
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It should be possible to give a confident budget.
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@@ -152,7 +138,7 @@ This interval can be determined from a population of possible prices.
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The _accuracy_ of a risk-oriented estimate remains roughly the same
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(approaching 100% with continuous input)
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through the takeoff process and, assuming no incorrect input,
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through the takeoff process, and, assuming no incorrect input,
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is entirely out of the hands of the estimator doing the "takeoff".
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The previous chapters describe how a centralized system
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separates the concerns of adjustment factors
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