Always Check the Drawings

It’s always important to check all the drawings when estimating a project, not just the plans that pertain to your scope of work.  Besides the obvious items such as type of walls and the heights of each floor, there can also be items that belong in your scope of work. One recent example I have [...]

You Can’t Make This Stuff Up!

On a recent project being performed on a fast track, GMP basis we came across some specifications that would increase the cost to the client.  I will give the nationally renowned engineer the benefit of the doubt since they were clearly marked as draft.  However, they were also being issued for GMP pricing.  We brought [...]

The News is No Good News – Construction Companies Are Seeing Few Contract Awards!

ENR.com reported that publicly owned companies are reporting lackluster results for contract awards. This article confirms what privately owned firms have been talking about on the poor economy.  It also confirms what private companies have NOT been saying about their own business volumes. The construction market is one of optimism.  The hope is 2012 will [...]

Escalation or Inflation? Either Way It’s Going to Hurt

The traditional definition of inflation is the government increasing (printing) more money than necessary for the economy.  Escalation is the increase in prices due to many factors, including inflation.  Traditionally long term projects and budgets for projects needed to include funds for escalation. For the past few years owners and developers, if they had any [...]

When is One Plus One More Than Two?

Many types of projects will have the quantities provided to the bidding contractors.  It is very common on heavy/highway, power, industrial and process projects.  These quantities can be used for the basis of the bid.  But, watch out.  Engineers and architects count and measure differently than estimators.  When an engineer counts, it can be extremely [...]

Owners, Architects & Engineers Control Project Costs – Not Estimators

I would like to think I have heard everything in my almost 40 year estimating career.  However, I still do get some items that surprise me from time to time.  This time it was a potential client that is concerned about the pre-construction estimating and cost control services during the design period.  This part is [...]

Why is outsourcing is so hard for some Owner’s? Part 2 by Steven Spencer

One of the most common ailments afflicting Owner’s is the ‘Zero-Sum Game’; companies mistakenly play this game when they believe, that if something is good for an architect, contractor or vendor then it’s automatically bad for them, that they have lost control. Oh by the way, I have seen the other side of the table [...]

An Engineering Procedure

I recently came across several old American Society of Professional Estimator newsletters and found a humorous article/joke in one that I thought I would share.  The following was printed in the September 1981 issue of The Buckeye Estimator: Even though this is almost 30 years old, it seems nothing has changed today!  I hope everyone [...]

The Added Cost of Sole Sourcing – How Much is Too Much?

My two previous blogs related to sole sourcing really touched some nerves.  A fair number of people did not feel that there was any problem with sole sourcing.  I happen to believe that sole sourcing, unless direct by the client, is inappropriate to having cost effective construction.  Even then, I believe the client needs to [...]

Relying Too Much On BIM Software?

My previous blog on architects and engineers starts to touch on a more complex subject – the use of BIM software in the design process.  Add-on BIM software modules can be obtained from quite a number of manufacturers.  They are provided to the architects and engineers at little to no cost.  Not only can they [...]

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