Monthly Archives: March 2009

Why Bother With Mediation?

My recommendation: Skip mediation! Go right to arbitration to get the dispute settled!

Friday Tip #5

  Owner related construction costs on a project need to consider several key areas besides the direct cost of construction.  These broad areas include:            1) Professional Fees           2) Code Review and Testing Expenses           3) FF&E and Specialized Equipment Costs           4) Company Internal Support Costs           5) Project/Program Contingency Funds  As an [...]

Sole Sourced Suppliers

  I am willing to state that a great majority of bid packages issued in the United States have sole sourced items included in the bid package. I am willing to go out on a limb and say it occurs on close to 80% of the packages issued.  There are two types of sole sourced [...]

To Bid Or Not To Bid?

  This is actually a question contractors must ask themselves when a project is issued. A lot of effort, not all of it being scientific goes into making the decision to bid or not bid a project.   In today’s market the contractor must make sure the owner/developer has adequate funds to pay for the work.  [...]

Friday Tip #4

Construction contractor indirect costs on a project need to consider fourteen key areas.   Mobilization Job Site Staffing Temporary Buildings and Construction Temporary Utilities Construction Equipment Job Office Expense Small Tools and Consumables Weather Protection Outside Services Insurance, Taxes & Bonds, Home Office Support Demobilization Cost Growth Finance Expense

Estimating Accuracy

Estimating accuracy discussions can be quite interesting.  No really! There are different nuances depending upon the level of the estimate and who is preparing the estimate.   I am fascinated by the people that develop estimates at the Feasibility or Budget stage of a project then state the estimate is a +30% to -30% for its [...]

What? Me Worry? (Alfred E. Neumann, Mad Magazine)

  It seems that a vast number of companies do not know, or care, how much it really costs to construct their projects. They just spend what ever it takes. I have seen this attitude in organizations on local, regional, national and international operations.  This problem ranges across the spectrum of project types and value from [...]

Friday Tip – Schedules

  When building a schedule do not use constraints to force activities to happen on certain dates!  Instead use the relationships that link the activities to tell you when the activity will happen.  If there is a date you need to make try revising your relationships to make the date possible.

Location Matters To An Estimator

While project site local and conditions must be taken into account in an estimate, there is no need to worry about the location of the estimator’s office in proximity to the project site! Any qualified estimator is able to prepare an estimate in California, New York, or China.  Saying an estimator can’t prepare an estimate [...]

Estimators Aren’t Just For Contractors

An estimator does not cost a firm, it pays!