Benefits of Using Production Rates in Construction Cost Estimating

Why use production rate versus unit rate cost estimating? Using production rate cost estimating, also called “bottom-up”, is the very first level of knowledge a cost estimator should acquire. It takes time and consistency, but it is all worth the effort. From my observations in the field of cost estimating and working for various clients, […]

My Road Map to a Great Cost Estimate

What makes a great cost estimate? Construction cost estimating as a career choice? That was the question I asked myself many years ago. It was when I started working as a cost estimator (because of lack of a project management opportunity). I still make a living as a cost estimator and found the answer to […]

Use of Allowances in a Cost Estimate

Cost Allowances in Detail and Conceptual Cost Estimates If we look at what allowances are and how they are used in a cost estimate prepared for construction contracts, vs. allowances used in conceptual cost estimating we will see that they can be very different. Firstly, let’s define the term “allowance” in the context of cost […]

Capital Cost Estimate – Indirect Costs

In the world of construction contracting, the term “indirect costs” are very well understood. Things can get somehow confusing when the cost estimate needs to include the project capital costs. Partly because there are two different types of indirect costs included in a capital cost estimate: contractor’s indirect costs which are part of construction costs, […]

How a Cost Estimator Can Help Small Contractors Increase Profit

Setting the Stage As a cost estimator, working for a large construction corporation, or for a small contracting firm are two very different things. Most likely, the large construction firm has a cost estimating department, led by an Estimating Manager, they have procedures and policies in place, learning and career growth opportunities, etc. All the […]