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(EST-2131) Comparing and Reconciling Joint Venture Estimates

Primary Author: Paul M. Hewitt
Co-Author(s): Adam S. Hewitt, CCT

Audience Focus: Intermediate
Application Type: Research
Venue: 2016 AACE International Annual Meeting, Toronto, ON, Canada

Abstract: On large infrastructure projects greater than $ 250-500 million, it is common for contractors to form Joint Venture Companies when submitting their bids. The purpose of the Joint Venture is to share risk, pool the bonding capacity of the partners, combine the experience of the partners during the prequalification phase and to prepare and compare more than one estimate for the project. This paper describes the processes and formats used for comparing multiple estimates prepared by the partners. It is also quite common that the partners use different estimating software. This paper also describes the methodology of importing the estimates into a common format, reconciling the price and closing the bid.