1.1 KiB
1.1 KiB
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
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).
For the Contractor
- 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.
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