4Clicks Solutions

The Role of a Construction Cost Estimator

mbrown — Thu, 17 May 2012 15:04:33 +0000

A professional construction cost estimator in an important team member of any Owner, Contractor, or AE organization’s involvement in a facility renovation, repair, sustainability, or new construction project. A cost estimator’s role is to review the many factors, variables, and information sources associated with a construction project and to present an accurate total cost (the latter may include subtotals by Uniformat and/or MasterFormat categories, materials, labor/crews, productivity factors/coefficients, equipment, overhead/profit, etc.). Cost estimating and efficient project delivery management software plays an important role for Owners, Contractors, and AEs engaged in numerous projects vs. the exclusive use of Excel spreadsheets and/or manual processes. Excel spreadsheets are error prone and don’t offer the productivity advantages of integrated software solutions: multi-year, localized and easily accessed and maintained construction cost databases, visual estimating and QTO tools, multi-user collaboration with audit trails, ability to incorporate means and methods, specifications and field notes/variables, and more!

Construction Cost Estimating Software vs. Spreadsheets State of the Nation 2012

mbrown — Sun, 06 May 2012 12:15:01 +0000

While accurate, timely, and transparent cost estimating is critical to the success of any renovation, repair, sustainability, or new construction project, most construction cost estimators (over 55%) continue to rely primarily upon manual methods, hard copy documents, or electronic spreadsheets such as Microsoft Excel.

Lack of robust business processes, management practices, proper education and training, and some degree of technophobia endemic to our AECOO industry (Architecture, Engineering, Construction, Operations, Owner) may well be responsible for this “state of the nation”. Negative impacts of ‘ad hoc’ methods and the failure to adopt robust construction delivery methods and associated supporting software include: loss of business revenue and lower profit margins, poor productivity, spreadsheet and formula errors, lost information, and poor business decisions.

Construction estimating involves the estimating of material, labor, equipment, overhead/profit and contingencies. Spreadsheets, most commonly Microsoft Excel, are used by more estimators for this purpose (over 40%) than any method, although as many as ten (10) percent or more of construction cost estimators may still rely exclusively upon hand written estimates. While spreadsheets are relatively easy to master and provide a means to create and report
a construction cost estimate and or cost models, their benefit comes largely from their ability to partially relieve estimators of mundane calculations. Accuracy, however, is not necessarily improved and productivity is not maximized. For example, data entry remains tedious and prone to error, formula error are common, and collaboration and information sharing are limited. (Christofferson, Jay. “Estimating with Microsoft Excel”, Brigham Young University. Nickols, Robert Duane. “Construction Estimating Using Excel” Lexington Technical Institute, University of Kentucky. Caulkins, Jonathan P., et al. “Do Spreadsheet Errors Lead to Bad Decisions” Carnegie Mellon University)

Sophisticated, Cost estimating and Efficient Project Delivery Software systems are now available, and have been proven over the past decade. Growing numbers of cost estimators now have the need to work with multiple projects, multiple estimates, and multiple contracts (IDIQ, JOC, SABER…) simultaneously and securely. These newer Cost estimating and Efficient Project Delivery Software systems, such as 4Clicks Project Estimator, provide these benefits, and more. A ‘short list’ of additional capabilities includes the ability to work with multiple cost books/guides/UPBs, track project status, automatically compare estimates, easily copy/paste, clone, and reuse estimates, integrated sophisticated visual estimating and quantity take-off (QTO) tools, including pattern search, automatically link specifications to estimates ….
Owners, Contractors, and AEs are moving to advanced cost estimating and management systems, and many oversight groups such are beginning to require their use.

The level of collaboration, transparency, and information re-use enabled by Cost Estimating and Efficient Project Delivery Software drives 15-25%+ reductions in procurement cycles, six to ten times faster estimating, reduce overall project times, as a significant reduction in change orders and the virtual elimination of contract related legal disputes.

“We can’t solve problems by using the same kind of thinking we used when we created them.” – Albert Einstein

mbrown — Sun, 22 Apr 2012 12:25:53 +0000

It’s amazing how many cost estimators exclusively use spreadsheets. In end, this practice creates more problems than it solves. Certainly spreadsheets play an important role, however, study after study has proven them to be inefficient and prone to error when collaboration is required, or when relatively sophisticated databases are commonly used.

The solution for Owners, Contractors, and Owners to “keeping pace” and “doing even more with less” in today’s environment is powerful, yet easy-to-use dedicated cost estimating and project management software. Available systems, such e4Clicks Project Estimator also application embed efficient and proven project delivery methods such as JOC, IPD, and SABER, further benefiting all parties.

Unit Price Books (UPBs ) for JOC and SABER

mbrown — Mon, 09 Apr 2012 12:00:46 +0000

Unit price books are unit price-based cost databases referenced by a particular JOC or SABER contract. In some cases UPBs can be task-based; however, this method doesn’t provide a level of detail consistent with the practices of most construction cost estimators. RSMeans is used in the majority of JOC contracts in the United States (over 80%) as a baseline, with RSMeans becoming the virtual standard for commercial construction, renovation, and repair cost data across North America. Electronic UPBs are integrated with software to enable faster and more accurate implementation and management of JOC contracts. Unit price books can be localized via city cost indexes (CCI), and also customized for Owner specific requirements. CCI information is available from RSMeans down to a zip code level and is provided quarterly. It is important to have a dynamic UPB, one that accounts for pricing changes due to inflation/deflation, material/labor shortages, and/or local conditions. Over the course of a three (3) to five (5) year JOC contract construction costs can change significantly. If a contract is not structured with dynamic costing in mind, the owner is asking a JOC contractor to take on undue and unforeseeable risk and the owner will pay for this transferred risk in the form of a higher coefficient. Coefficients applied by the contractor to their UPB-based construction estimated account for overhead and profit and/or other variables. Thus, not adjusting a UPB annually can cause negative issues for both Owners and Contractors.

Project delivery methods play a critical role in cost effective facility asset management

mbrown — Fri, 30 Mar 2012 14:11:39 +0000

Traditional methods such as design-bid-build and even “newer” methods such as design-build are not fully collaborative. The net result is information is not shared by all parties and adversarial components of these methods typically lead to mistrust and waste.

Integrated project delivery (IPD) and Job order contracting (JOC), the later also referred to as “IPD-lite” are proven, collaborative, project delivery methods. Both IPD and JOC have been successfully embedded into software technology to enable rapid implementation and ongoing, consistent deployment. Oversight and execution of modifications, renovations, repairs, sustainability and other construction and building activities; includes tracking of transactions, changes, milestones, and work orders, for capital and non-capital projects for real estate and facilities-based activities, and all related process, can be embedded within technology and tailored to organizational requirements.

More About Coefficients….

mbrown — Fri, 23 Mar 2012 13:31:09 +0000

What is a coefficient? A multiplier? A factor? These terms describe a number which is applied to the unit price book (UPB) to arrive at the contractual cost for JOC / SABER construction projects. A coefficient of 1.08 means that the contractor will perform each and every line item in the unit price book for an 8% markup. A coefficient of .97 would mean that the contractor would perform line items for a 3% discount. This number is determined by the contractor to include all costs including general conditions, overhead, and profit.

Coefficients and their role in Job Order Contracting (JOC) and SABER

mbrown — Fri, 09 Mar 2012 12:59:40 +0000

Price coefficients are applied to unit line prices from a unit price book (UPB) to determine the actual cost of JOC or SABER project and/or task order. The contracted price coefficient is applied to all labor and materials line items necessary for each job to arrive at an estimated for the job. Coefficients are important to Contractors to both winning and profitably performing JOC/SABER construction projects. It is equally important that Owners independently evaluate the Contractor’s proposed price coefficients. Many factors affect a coefficient, including, but not limited to location, job complexity, market conditions, and the number of jobs allocated.

JOC, SABER – IPD that works.

mbrown — Fri, 24 Feb 2012 13:20:25 +0000

Job Order Contracting (JOC), and Simplified Acquisition of Base Engineering Requirements (SABER) are both forms of Integrated Project Delivery (IPD). They are collaborative, transparent, performance-based construction delivery methods that significantly improve productivity vs. traditional design-bid-build. Procurement and project timelines are decreased, change orders are virtually non-existent, and longer term relationships exist between Owners, Contractors and AE’s. SABER and JOC are standardized business process that can be adapted to particular Owner requirements. As such, they are an agreed upon, proven, and repeatable way of handling diverse facility renovation, repair, and sustainability projects. A standard is a collective work that is created by bringing together the expertise and experience of all interested parties. e4Clicks Project Estimator software embeds JOC, SABER and other construction delivery methods to enable rapid, scalable, and consistent deployment, thus providing a supporting technology framework to improve overall performance.

4Clicks Regional Training Class – Las Vegas, NV – March 14th and March 15th, 2012

mbrown — Sat, 18 Feb 2012 13:04:27 +0000

Owners, Contractors and Subcontractors,

4Clicks is hosting an upcoming Regional Training Class in Las Vegas, and we’d like to invite you and your team to attend!

This two day class is perfect for brand new e4Clicks Project Estimator users and those who could benefit from a refresher course. A great chance to sharpen your estimating skills, learn how to better use RSMeans Cost Data, and even learn more about eTakeoff – a great visual estimating productivity tool. We are also an Approved Education Provider through AACE International, so you an earn Continuing Education Credits for your attendance!

The class is first come, first serve; so reserve your seat before we’re sold out!

The $795 attendee price includes morning snacks, lunch, and training material. Laptops are required to accomplish our hands-on class exercises. Bring your own, or rent one from us for $150.

Can’t make Las Vegas? Please see our 2012 training calendar for more dates and locations.
www.4clicks.com/training

Want to know what others thought about our training? See our client quotes below or our website.
www.4clicks.com/clients/success-stories

Again, thank you. We sincerely appreciate your business, and please feel free to contact us with any questions.

4Clicks Sales Team
Office 719.574.7721|866.438.4254
Facsimile 719.466.6494
www.4Clicks.com

Client Quotes:

“e4Clicks is fast. Quick does not adequately describe how rapidly a complete estimate can be compiled that is both accurate in scope and very informative to our clients of our intentions. Without e4Clicks, we could not support the work load per person that we currently achieve.”
– Contractor

“I am indescribably happy with the software. Your trainers are fantastic. I wish more of our construction contractors had the professionalism and attitude your team displays. I can only imagine what it would be like to work on a daily basis with energetic, competent, and congenial people like those on your team. Thank you. It’s hard to believe software can make me want to come to work! You should also be aware that the contractors and subs that started using the product are also VERY pleased. I think it has a little to do with the way we implement it into our JOC process.”
– DPW Engineering Technician

“In my lifetime I’ve been in LOTS of training, some good, some not so good, some just miserable/hard to stay awake through…BUT…Not only was your training extremely informative, you kept us hopping and on our toes! Thank you for your obvious dedication to your firm, your knowledge of the software, your ability to hold your audience’s attention, your constant encouragement and fun presentation . . . . all of which help folks learn. I know I learned a lot today!”
- USAF Customer

2012 RSMeans Construction Cost Data

mbrown — Sat, 11 Feb 2012 15:23:33 +0000

Are you using “old” cost data? Exclusively enhanced 2012 RSMeans Electronic Cost Data is now available, integrated within e4Clicks Project Estimator, for your JOC, SABER, IDIQ, SATOC, MATOC, MACC, POCA, and BOA projects. Approximately 400,000 line items are available, complete with modified, detailed descriptions, references and specifications… all in electronic format and including advanced search capabilities.

Lastly, don’t forget you can also always get print versions of RSMeans Cost Books at a 20% discount, and free shipping!