vault backup: 2025-10-13 16:32:45

purpose-of-construction-estimating.md

@@ -11,23 +11,30 @@ title: The Purpose of Construction Estimating
 # The Purpose of Construction Estimating
 
 The purpose of [[construction-estimating]] in practice
-is not to determine the cost of the scope,
+is not to determine the actual cost of the scope,
 which would take far longer than allotted for bid,
 
-## For the Solicitor
+## The Myth of Estimate Accuracy
 
-* Determine feasibility of functional requirements
+<!-- TODO: -->
 
-> [!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]]).
+**Bid estimates are not intended to be accurate _individually_.**
 
-## For the Contractor
+This is a dangerous superstition
+which encourages unproductive conflict.
+
+Operations is blamed for failing to meet targets
+not intended for the purpose,
+...
+
+## For Each Party
+
+### For the Solicitor
+
+* Determine feasibility of functional requirements.
+  (see [[gold-plating]])
+
+### For the Contractor
 
 * Make profit to meet growth target
 * Secure work for current and projected employees (fill backlog)
@@ -39,7 +46,7 @@ which would take far longer than allotted for bid,
 > 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
 
 The role of the estimator
 is to model the potential cost distribution of the project,
@@ -48,7 +55,7 @@ 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
 
 The role of the executive is to allocate profit and contingency
 according to the potential cost distribution