Cost Estimating

Precision Estimating Services > Cost Estimating

Construction Cost Estimating

OUR CRAFT

Precision Estimating Services is a professional consultancy specializing in providing detailed construction cost estimates. We provide our clients, both public and private institutions throughout the continental United States, with expert, data-driven advice on their construction projects. Henceforth, our approach is built upon the rigorous guidelines set forth by the American Association of Cost Engineers (AACE) to create objective, reliable, and defensible assessments of probable construction costs.

Our estimating process is forward-thinking and predictive in nature. There are many factors that influence construction cost estimate reports such as including current labor rates, material prices, and site constraints. Additionally, there are external factors such as macroeconomic trends and current political landscape that can influence the construction cost estimate report. We also consider market volatility, commodity prices, and the current availability of labor for a given project location.

With the majority of our client base coming from the architectural / engineering community, we have significant experience providing comprehensive cost estimating services at each level of design development. Our Cost Managers are experts at developing detailed construction cost estimates from the early conceptual programming levels – where there is minimal detail on plans – through the schematic design, design development, and fully detailed construction document levels of design.

We assess our Client’s needs on a project-by-project basis. As a result, each deliverable we submit varies in level of granularity. To meet the specific needs of our Clients, our construction cost estimate reports are specifically tailored to create a clear understanding of probable construction costs.

Karl Vaillancourt Cost Estimating Walk Through Video

The Precision Way

OUR PROCESS

STEP 1
FORMAL KICKOFF MEETING
Our estimating process begins with a meeting of the Cost Management team members. In this meeting, they take a deep into the project’s engagement resources and addenda. Overall, the goal of this meeting is for the project team to develop a detailed schedule for timely delivery. In order to do so, the team must break down the cost estimate into sub-tasks and assign specific deliverables, responsibilities, and deadlines to each team member. This meeting also allows the assigned Project Lead to review unique and or challenging project elements with the team.
STEP 2
DETAILED QUANTITY SURVEY

The Precision team performs a digital quantity takeoff using leading takeoff software in order to streamline the material quantification and quality management processes. Simply stated, this is the process of translating current design drawings into resource quantities suitable for costing.

STEP 3
MATERIAL, EQUIPMENT, & LABOR PRICING
Our material pricing process includes procurement of supplier pricing, in addition to, utilization of pricing catalogs and published reference books. Equipment and Labor pricing considers crew size, wage agreements, equipment costs, and information from the Bureau of Labor Statistics. Lastly, we also include location-specific research to ensure the accuracy and relevancy of the information we provide.
STEP 4
ADDITIONAL COST CONSIDERATIONS
Additional considerations include cost adjustments for specific project conditions such as inclement weather, material logistics, site constraints, and more. Another additional consideration are job site overheads which include bonds, permits, mobilization, temporary facilities, travel, lodging, demobilization, and more. Our final cost estimate reports also include design contingency, contractor overhead & profit, sales tax, and escalation into our final Cost Estimate deliverable.
STEP 5
QC & COLD EYES REVIEW
For quality assurance purposes, our process incorporates a review by a Senior Cost Manager (without prior project knowledge). This ensures that proper estimating methods, procedures, techniques, data and guidelines have been employed during compilation of the Cost Estimate. This process includes asking specific questions to Cost Managers, who must provide defensible logic and reasoning for their approach. Prior to delivering the Cost Estimate report to the Client, the Senior Cost Manager will also review key project cost metrics and statistics (such as cost per square foot) against Precision’s database of previous projects.
STEP 6
PROJECT CLOSE-OUT
An integral part of our firm’s commitment to continuous improvement are our project close-out meetings. In these meetings, we thoroughly dissect all associated projects costs in a collaborative all-hands meeting. Ultimately, these sessions result in valuable insights and ensures that our team members are aware of current cost trends and the driving forces behind them.

Estimation Walk-Through

Cost Methodology by Design

ROM (Rough-Order of Magnitude)

Material Takeoff

Defined

ROM estimates are based on high-level information and very little detail. Examples include the number of rooms in a hotel or – in this example – the gross square footage of a residency.

Description

All that is required to complete a ROM estimate is a project size, location, intended use of space, and level of finish.

purpose

Used to establish a baseline construction budget and better analyze a project’s feasibility.

value added

Despite the preliminary stage of design, we are able to create detailed construction cost estimates by employing various estimating methods. 

Conceptual Design

Material Takeoff

Defined

At the conceptual design stage, takeoffs become more detailed and include assembly-level quantification. In many cases, input from our estimating staff at this early stage helps to inform future design and specification choices.

Description

At this stage of the design process, there are now architectural sketches and the primary type of construction (reinforced concrete, steel, metal or wood framing, etc.).

purpose

Used to refine the scope of work and to establish a more detailed project budget.

value added

By analyzing a project’s costs through its various construction assemblies, the cost impacts of different design choices can be easily analyzed and compared.

Design Development

Material Takeoff

Defined

A design development estimate is able to examine individual project components in a greater detail. For example, a wall assembly now becomes paint, gypsum board, insulation, wood framing, sheathing and stucco.

Description

Architectural plans are nearing completion and preliminary structural and MEP drawings have been provided. Also, there can often be multiple iterations of design development drawings and specifications.

purpose

Refine scope of work and create a detailed bill of materials.

value added

As the project moves closer to being construction-ready, take-offs can be used as a measure of control to ensure nothing gets left out.

Construction Document

Material Takeoff

Defined

The final stage of design and the most detailed level of estimate. The report breaks down all the design elements into individual components. A wood framed wall now becomes a bottom plate, studs and double top plates.

Description

In this stage of design, the plans and specifications approved for construction are complete. There is also a detailed finish schedule.

purpose

Create a comprehensive cost estimate that can be used for quality control of contractor bids and progress tracking.

value added

An estimate at the construction document stage simplifies the analysis of competing contractor bids.

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We are Precision
Providing our Clients with expert, data-driven advice, for all aspects of cost on their construction projects.