---
id:
aliases: []
title: Risk Management for Construction Estimating
tags:
  - authorship/original
  - destiny/permanent
  - status/incomplete
  - topic/construction
  - topic/estimating
  - topic/risk
  - type/cross-topic
---
# Risk Management for Construction Estimating

Cross-topic of [[risk-management]] and [[construction-estimating]].

## Estimating as Risk Mitigation

* reduce risk of wasted estimation effort due to bid loss
  (prefer lower bid)
* reduce risk of project overrun
  (prefer higher bid)

Estimating resources should be allocated
according to Return on Mitigation (RoM),
that is, their contribution to _cost certainty_.

$\text{Efficiency} = -1 \times \frac{d\sigma}{dt}$