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(EST-1411) Construction Indirect Estimate Challenges and Opportunities

Primary Author: Mr Rakesh K. Gupta

Audience Focus: Intermediate
Application Type: Application
Venue: 2013 AACE International Annual Meeting, Washington, DC, USA

Abstract: Growth projects for energy operators are key to their business strategies. These projects require commitment of a large proportion of resources and coordination among many agencies to produce a successful outcome. These complex mega size projects however, also have multiple challenges; one of which is construction indirect cost.
This paper presents a summary of philosophy, criterion, and process improvements undertaken to optimize the cost and enhance effectiveness and efficiency of common services across the projects executed in Western Canada. A team approach across functions and alignment at every stage of the estimate development is given priority.
The paper shares the approach adopted using knowledge and experience in estimation methodology and execution of common services to the benefit of AACE and Industry as a whole. This approach optimized the cost resulting in better control on budget and manpower, savings on project cost and reduction in number of people and vehicle at site thereby, also reducing safety risk at the work site.