Level:
Basic
TCM Section(s):
7.3. Cost Estimating and Budgeting
Venue: 2022 AACE International Conference & Expo
Abstract: When an estimating process is not working, what can be done?Is it patched with updated procedures, or does one start over?At Black and Veatch (B&V), the estimating team chose to start over.The new process had many challenges and key activities to consider.This paper will walk through each step with explanations and results.
The process started with the end in mind.The team asked themselves “what is needed” from the estimating process.Key answers included verification of the quantities, material pricing, labor hours and rates and overall costs; consistency in how the estimates are developed and presented from one estimate to the other: accuracy of the estimates based on comparisons to history and end of job reports; collaboration between engineering, estimating, construction, procurement, project controls and management; integration between tools and processes to create efficiency; digitization to where when numbers and words moves from a drawing or a file, it becomes data that is exchanged between tools and not manually handled; reduced time and history collection from executed projects with the data formatted and grouped in common codes of accounts to aid in developing estimates and strengthen the estimating process.That’s a big list with each of the items listed posing unique challenges.
Processes and procedures have been incorporated for each of these challenges in the new estimating process.Each of these will be discussed with a description of what has been put into place and what the results have been.This discussion will include the resistance to the changes and how that resistance has been dealt with.
TCM Section(s):
7.3. Cost Estimating and Budgeting
Venue: 2022 AACE International Conference & Expo
Abstract: When an estimating process is not working, what can be done?Is it patched with updated procedures, or does one start over?At Black and Veatch (B&V), the estimating team chose to start over.The new process had many challenges and key activities to consider.This paper will walk through each step with explanations and results.
The process started with the end in mind.The team asked themselves “what is needed” from the estimating process.Key answers included verification of the quantities, material pricing, labor hours and rates and overall costs; consistency in how the estimates are developed and presented from one estimate to the other: accuracy of the estimates based on comparisons to history and end of job reports; collaboration between engineering, estimating, construction, procurement, project controls and management; integration between tools and processes to create efficiency; digitization to where when numbers and words moves from a drawing or a file, it becomes data that is exchanged between tools and not manually handled; reduced time and history collection from executed projects with the data formatted and grouped in common codes of accounts to aid in developing estimates and strengthen the estimating process.That’s a big list with each of the items listed posing unique challenges.
Processes and procedures have been incorporated for each of these challenges in the new estimating process.Each of these will be discussed with a description of what has been put into place and what the results have been.This discussion will include the resistance to the changes and how that resistance has been dealt with.