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