The key to successful budgeting is starting with a realistic and appropriate budget before design starts, when the only scope definition is a scope of work which likely provides four cost parameters; type of project, size, location, and schedule. The owner is looking for a positive return on investment and needs a decent comfort level to sanction a project to move forward into design.
AACE has a Recommended Practice for Cost Estimate Classification which suggests the methodologies for use at each class of estimates. AACE Class 5 and Class 4 cost estimates are generally pre-design, prepared when the scope definition is less than about 2% for Class 5, and up to about 15% for Class 4. These estimates are used at very low level of scope definition, well before there are drawings that produce more complete scope definition.
By the end of the webinar, attendees will understand the following approaches, depending on the industry and the empirical and industry study data available.
- Analogous Estimating
- Parametric Estimating
- Area or Volume Factoring
- Capacity Factoring, and
- Equipment Factoring
This webinar will be useful for all levels of estimating knowledge, but particularly applicable for estimators working in pre-construction or pre-design phases.
About the speaker:
Meghan Repay, Project Controls Specialist / Senior Estimator - Arcadis U.S., Inc.
Chris Carson, Director of Program & Project Controls - Arcadis U.S., Inc.
CCM Recertification Points: 1
Professional Development Hours (PDH): 1
AIA Learning Units (LU): 1