70 lines
1.9 KiB
Markdown
70 lines
1.9 KiB
Markdown
---
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id:
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aliases: []
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tags:
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- destiny/permanent
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- topic/estimating
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- type/encyclopedia
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title: Construction Estimating
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---
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# Construction Estimating
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> [!note]
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> This note is intended for: _facts_
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> that are _about the profession_,
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> specifically, _as it is currently practiced_.
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Construction estimating is a subset of cost estimation.
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## Misconceptions
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### Standard Practices
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In general, many things thought to be standard are quite the opposite.
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* Use of square receptacle symbols
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### Proposals
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Proposals are not legally binding,
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which is a double edged sword
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for intermediate subcontractors like electrical:
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* Proposals to GC's can be withdrawn for any reason
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* Proposals from subcontractors can be withdrawn for any reason
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This is obviously not popular practice,
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however it is important to recognize
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that errors aren't set in stone
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until a contract is signed.
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Destigmatizing proposal retraction is of critical concern for subcontractors.
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See [[estimating-culture]] for more on estimate error [[strategy#Game Theory]].
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It's important to recognize that retracting a proposal
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may upset a few people employed by the GC,
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but consider how little your own opinion matters to your company's strategic decisions.
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Much bigger people are involved after the proposal is accepted.
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## Ethics
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Clients engaging in unethical bidding practices can quickly gain a reputation for doing so,
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leading to reduced bid response that can be impossible to fully recover from.
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To ensure a transparent bidding process, one must
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* divulge all selection criteria to bidders,
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* avoid conflicts of interest,
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* maintain confidentiality of bid submissions, and
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* provide equal access to bidding information.
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For unacceptable behavior see [[bad-bid-practice]].
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### Terms
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> [!info] Bid Shopping
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> the practice of sharing a bidder's quote with other prospective vendors
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> in order to solicit lower bids.
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> The competing quote may be legitimate, fabricated,
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> or a non-serious proposal from a colluding vendor.
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