General: We follow AACEI (Association for the Advancement of Cost Engineering International) classifications for level of accuracy as a guideline. Details are stressed in the recommended practice 18R-97 and 19R-97.
Class 5 (high level) estimates can be prepared based on the Capacity Factor, Six Tenth Rule, Equipment Factor, Lang or Happel Factor applied to in-house historical data.
Class 3 (detail level) estimates are computed by utilizing several resources; few major industry leading references we use, are the construction NORMs by Richardson, R S Means, John S Page aka Pagination. However, In-House historic data and benchmarks are the key element for accuracy in our estimates. After applying the base chart hours of installation, location and productivity factors applied to acquire total man hours (Field, Shop, and Modular construction are treaded accordingly).
Based on the services rendered by Golden Ratio Estimating, highlights for a typical process are listed below.
ɸ Understand the Scope of Work
ɸ Review Estimate and Basis of Estimate
ɸ Visit Site (where applicable)
ɸ Cross-Check MTO – material take off for each Discipline and Design Basis
ɸ Review Units and Rates
ɸ Compare and Benchmark against Golden Ratio Estimating Databank
ɸ Provide Review Report (identify soft spots)
ɸ Understand the Scope of Work (big picture)
ɸ Visit Site (where applicable)
ɸ Review MTO (material take off) and Design Basis
ɸ Multi-Discipline Scope Alignment (where applicable)
ɸ Negotiate Estimate Delivery Schedule
ɸ Develop Estimate Development Plan and Schedule
ɸ Develop and Finalize EBM – Estimate Basis Memorandum (where applicable)
ɸ Develop Multidiscipline Direct Estimate
ɸ Develop Indirect Estimate (where applicable)
ɸ Develop Basis of Estimate
ɸ Review Estimate Internally
ɸ Develop and Recommend Contingency (where applicable)
ɸ Review Total Estimate with Key Stakeholders
ɸ Deliver Estimate to Client with Basis of Estimate
Process and Procedures Development and Improvement:
ɸ Assess the Estimating Objective (where clients are and where they want to be)
ɸ Analyze how estimating is currently performed including existing process, procedures, and Tools
ɸ Develop and Recommend the Optimized Estimating Architecture and Framework
ɸ Support the Implementation and Execution (where applicable)
Custom Estimating Templates and Database Development:
ɸ We develop MS Excel (VBA – Visual Basic for Application) based customized workbooks for estimating, which are robust to compute the Engineering, Construction, and TIC (Total Installed Cost), as well as a fundamental way to initiate standard approach for estimating.
ɸ MS Access base database is the way to go, to capture historic data and generate estimates in a flash. Access Databases are very simple to maintain, which eliminates the costly support fees and annual licensing. Please Contact Us for details.
ɸ In-House or Public Group Seminar for – Cost Estimating a Pragmatic Approach
ɸ In-House or Public Group Seminar for – Cost Engineering a Pragmatic Approach
ɸ Sconde your Employees for Hands-on Estimating Training. Please Contact Us for details.
Disclaimer: To avoid conflict of interest, we either serve owner/operator or engineering house at any given time for a given project estimate. Our objective is to provide excellence to our clients in achieving highest possible predictability in their project costs.