The Five Estimate Classes: Class 1 Bid / Tender

by Hard Dollar on February 10th, 2012

This post is the fifth and final installment in a series of posts about AACEs 5 Estimating Classes. Designed for the new construction employee (engineer, estimator, and field personnel), we will take a high-level look the five types of estimates.

One of the ways that HD Project Cost Management software is unique is that it can handle the full gamut of estimate types, everything from Class 5 through Class 1.

The Class 1 or Bid/Tender estimate will include anywhere from 50-100% project definition. Picking up where the C2 estimate left off, the C1 estimate contains fine detail including detailed unit cost with detailed takeoff. C1 estimates are typically prepared only for the most important and critical sections of the project. This level of detail is not required by the entire project, particularly given that the other estimate classes have almost certainly been used prior to this point.

Like the C2 estimates, the C1 estimate is used to create a control to be used as the final baseline. All actual costs and resources are monitored for budget variations, and used for management for the project control portions of the process.

HD Project Cost Management is the key to accurately defining the higher levels of detail required by a C1 estimate. HD can be used throughout the duration of the project to measure progress and adjust variables if/when project changes occur.

Tags: AACE, Class 1, Construction Management, Estimating Software, PCM, Project Cost Management Posted in Blog | Comments Off

Construction Management, The 5 Estimate Classes: Class 2, Control

by Hard Dollar on February 3rd, 2012

This post is the fourth installment in a series of posts about AACEs 5 Estimating Classes. Designed for the new construction employee (engineer, estimator, and field personnel), we will take a high-level look the five types of estimates.

One of the ways that HD Project Cost Management software is unique is that it can handle the full gamut of estimate types, everything from Class 5 through Class 1.

The Class 2 or Control estimate will include anywhere from 30-70% project definition. Picking up where the C3 estimate left off, the C2 estimate is detailed enough to use as a control baseline with which to measure all project work cost and project control. Many contractors use the C2 as a bid estimate to assign contract value.

HD Project Cost Management is the key to accurately defining the higher levels of detail required by a C2 estimate. HD can be used throughout the duration of the project to measure progress and adjust variables if/when project changes occur.

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The Five Estimate Classes: Class 3, Authorization

by Hard Dollar on January 27th, 2012

This post is the third installment in a series of posts about AACEs 5 Estimating Classes. Designed for the new construction employee (engineer, estimator, and field personnel), we will take a high-level look the five types of estimates.

One of the ways that HD Project Cost Management software is unique is that it can handle the full gamut of estimate types, everything from Class 5 through Class 1.

The Class 3 or Authorization estimate is much more definitive than Classes 4 and 5. A C3 estimate is nearing the 50% definition mark, with anywhere from 10-40% of the project defined. Budget, appropriation, and control are key reasons for building a C3 estimate. Having completed the C4 estimate, we determined that the project will proceed to the C3 stage. With the C3 estimate, were beginning to nail down the entire scope of the project, and data included in the C3 estimate will be used against the actual costs as the project nears completion.

Class 3 estimate methodology is mixed, but contains somewhat detailed unit costs with assembly level (rather than an individual component level) line items. HDs ability to add assemblies from libraries or historical data allows the estimator to efficiently and accurately build out a C3 estimate.

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The Five Estimate Classes: Class 4, Feasibility

by Hard Dollar on January 20th, 2012

This post is the second installment in a series of posts about AACEs 5 Estimating Classes. Designed for the new construction employee (engineer, estimator, and field personnel), we will take a high-level look the five types of estimates.

One of the ways that HD Project Cost Management software is unique is that it can handle the full gamut of estimate types, everything from Class 5 through Class 1.

The Class 4 or Feasibility estimate is slightly more definitive than the Class 5. Like the C5 estimates, C4 estimates are typically put together based on very little information. They are most often used for concept evaluation, project screening or gating, feasibility studies, or initial budget planning and approval. The definition required in a C4 estimate is only 1-15% and may include details like plant capacity, schematics, layout, and process flow. The C4 estimate intends to make a determination on whether or not the project continues on to the next stage of the process.

Class 4 estimate methodology is based on equipment factored or parametric models. HDs BidWizard is used in this type of estimating often in tandem with data easily integrated from third-party providers such as RSMeans and Richardson.

Tags: AACE, Class 4, Construction Management, Estimating, Estimating Software, PCM, Project Cost Management Posted in Blog | Comments Off

The Five Estimate Classes: Class 5 for Project Stage Gating

by Hard Dollar on January 13th, 2012

This post is the first installment in a series of posts about AACEs 5 Estimating Classes. Designed for the new construction employee (engineer, estimator, and field personnel), we will take a high-level look the five types of estimates.

One of the ways that HD Project Cost Management software is unique is that it can handle the full gamut of estimate types, everything from Class 5 through Class 1.

The Class 5 or Project Stage Gating estimate is the least definitive, and subsequently, the least time consuming of the group, often requiring an hour or less to create. These estimates are typically put together based on very little data. Many times only the type of project and its location are known. As a result, the definition required in a C5 estimate is only 0-2%. The question answered by the Class 5 estimate is, in essence, Do we want to initiate the project, or not?

Class 5 estimate methodology is based on parametric models, judgment of the estimator, and/or analogous projects. Crews and assemblies are not included. Plug in a cost from HD ProjectFacts (which contains high, low, and average costs by item), and parametric models tied to Excel can quickly complete a C5 estimate.