Files
zmVault/risk-oriented-estimating.md
T

2.1 KiB

id, aliases, tags
id aliases tags
risk-oriented-estimating
estimating
risk

Risk Oriented Estimating

Risk-Oriented Estimating (ROE), is a methodology for construction-estimating which

ROE leans heavily on uncertainty#Value of Information, which challenges the natural tendency to shy from uncertainty with the reality of the cost of certainty.

ROE does not endorse common shortcuts that round up to "cover" uncertainty, as these ultimately increase risk by inflating the apparent project cost, increasing the probability of loss to a competitor.

%%

Scratch

Bid risk may fit a Taleb distribution.

Actuarial Science

Estimating as risk mitigation, resources allocated by Return on Mitigation (RoM)

%%

Prioritizing Tasks

ROE prioritizes estimating tasks by their contribution to cost certainty.

Determining Necessary Detail

ROE determines the appropriate level of estimating-detail given an organization's risk#Risk Tolerance.

EVI Takeoff

Expected value of information (EVI)

Takeoff Optimization

For systems where EVI analysis determines manual takeoff is still necessary, optimizations can be made to decrease the required effort of takeoff, and thus the opportunity cost of takeoff.

Count-based takeoff speed increases with count.

Optimizing the takeoff process means:

  • Minimizing the need for information outside of drawings
  • Maximizing organizational consistency

Note

Recent events have complicated my philosophy above. It appears that similar efforts have already been made here, their success being a matter of perspective.

Naming Conventions (Use Case vs. Description)

Naming by use case is intuitive for those without estimating or field experience, but has the side effect that those accustomed to the names will inevitably treat them as descriptive.

Use Case Description
Hi-Hat Daisy-Chain
Furnished By Others Rough-In Only

Going Further

functional-labor-factoring