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 on the price, the client has the choice to evaluate the qualifications and qualities of the products and services offered. The contractor becomes part of the client’s team. This will allow for more engaging …show more content…
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
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 on the price, the client has the choice to evaluate the qualifications and qualities of the products and services offered. The contractor becomes part of the client’s team. This will allow for more engaging …show more content…
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