Best Practices in Pre-Construction Budgeting and Estimating
1 hour 30 minutes
Learn best practices in the development of a pre-construction cost estimate and budgeting of projected costs.
An essential and foundational building block common in successful projects is the development of a reasonable and sound construction cost estimate that accurately reflects the scope of work to be performed. In its initial stages, a pre-construction estimate is developed as the design progresses through its development stages and is updated as design and engineering elements are finalized. This allows the designer and owner to ensure that the proposed design and estimated cost to construct are within the financial parameters established by the owner. As the design nears completion, the significance of the cost estimate shifts from serving as a guide utilized by the designer and owner, to a comparison tool for evaluation of the reasonableness of contractor bid proposals, monitoring of performance, evaluation of change requests and resolution of construction claims. This material will discuss best practices that have been employed in the development of a pre-construction cost estimate and budgeting of these projected costs to account for the planned performance of the work.
• You will be able to define owner cost and time parameters.
• You will be able to identify site and project-specific restrictions.
• You will be able to recognize cash flow requirements.
• You will be able to discuss unit price guides vs. historical data.