PCM-Lecture38-Estimating-during-Planning

PCM-Lecture38-Estimating-during-Planning - Project and...

Info iconThis preview shows pages 1–5. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Project and Construction Management Project and Construction Management Lecture #38 Lecture #38 The Estimating Process During Planning- The Magnitude or guesstimate; he Conceptual Estimate;- The Conceptual Estimate;- The Preliminary Estimate;- The Definitive Estimate;- The Engineers Estimate, and- The Contractors Bid Estimate. L. Prieto-Portar 2010 The estimating process. And a bit more complex Project Managers constantly estimate the costs associated with the design, procurement and construction of capital facilities. If the estimate is unrealistic or contains basic errors, the contractor will lose money. Therefore, all estimates are by necessity based on judgment and experience, from the simplest " guesstimates " to the commitment stage of bids. These are the various levels of accuracy of cost estimates: 1. The Magnitude Estimate ( 30% error), performed before the design phase starts; 2. The Conceptual Estimate ( 15% error), performed when design concepts are defined; 3. The Preliminary Estimate ( 10% error), performed at 30% of the design phase; 4. The Definitive Estimate ( 5% error), performed at Control Point #3 of design; 5. The Engineers Estimate ( 3% error), performed when the design is 100% complete; 6. The Contractors Bid Estimate ( 1%), performed by the contractor to bid the job. The Bid Estimate typically costs the contractor 0.25% of the cost of the project (for example, a $ 100 million building may cost the contractor $ 250,000 to bid). Obviously, if the contractor does not win that job, that cost has to be carried by his general...
View Full Document

Page1 / 32

PCM-Lecture38-Estimating-during-Planning - Project and...

This preview shows document pages 1 - 5. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online