Process Analysis: White Construction Cost Estimating Process

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White Construction Cost Estimating Process Overview
There are several different levels of estimating used in estimating cost for a construction project. Each level serves a different purpose, dependent on the stage of the project, and has varying margin of errors. Estimates made during earlier stages have a larger margin of error compare to the final estimate report. In this text, the process of preparing a detailed cost estimates will be the main topic with an emphasized on White Construction’s estimating approach.
Delivery method dominates the way an estimate is prepared. White Construction practices negotiated bid, contrast to the hard bid method used for the EERC project by Hensel Phelps. In negotiated bid method, instead of relying strictly
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After the quantities have been counted, the price per unit will be applied to determine the overall cost. The estimate price will vary depending on the estimating method and the degree of accuracy. There are two types of cost, direct and indirect cost. Direct is the cost of the physical construction such as material, labor, and equipment. Examples of indirect cost are tax, profit, and contingencies.
White Construction typically refers back to its past projects to determine estimate price. For direct cost many sources are available such as historical records, and industry journal. However, the most accurate methods are to refer back to past projects and quotes from contractor and supplier. Purchasing power and current market conditions are important factor that estimator must never overlook. Price varies significantly depending on the economic condition and the size of the company. In some cases, even slight variation in geography affects supply and demand
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The role an estimator play in construction project is pivotal because it will determines whether there will be profit or lose. A good estimator is a team player and is a person who can communicate effectively with every person that is involved in the project. Estimating is an intensive process. Most importantly, there should be an established system and units of measurement. The estimating should cohesively work together to ensure every aspect of data gathering is consistent and changes can be easily adjusted throughout all phases of the

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