vault backup: 2025-07-03 17:03:26

purpose-of-estimating.md

@@ -1,5 +1,11 @@
 # The Purpose of Estimating
 
+## The Purpose of Construction Cost Estimation
+
+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
@@ -14,4 +20,21 @@ These owners can be expected to decline every [[value-engineering]] option offer
 
 ## For the Contractor
 
-* Fill backlog
+* Make profit to meet growth target
+* Secure work for current and projected employees (fill backlog)
+
+### 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 progress of the estimator can be measured by $\frac{d\sigma}{dt}$
+
+### 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.
+
+$$
+{E}[P]=
+$$