30 lines
697 B
Markdown
30 lines
697 B
Markdown
---
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id:
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aliases: []
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title: Risk Management for Construction Estimating
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tags:
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- authorship/original
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- destiny/permanent
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- status/incomplete
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- topic/construction
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- topic/estimating
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- topic/risk
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- type/cross-topic
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---
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# Risk Management for Construction Estimating
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Cross-topic of [[risk-management]] and [[construction-estimating]].
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## Estimating as Risk Mitigation
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* reduce risk of wasted estimation effort due to bid loss
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(prefer lower bid)
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* reduce risk of project overrun
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(prefer higher bid)
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Estimating resources should be allocated
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according to Return on Mitigation (RoM),
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that is, their contribution to _cost certainty_.
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$\text{Efficiency} = -1 \times \frac{d\sigma}{dt}$
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