Project Knowledge = Success
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www.projectcontrolsinternational.com | contact: jorge.alberch@gmail.com | check me out at Google+
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It is often the case where an estimate is put together without documenting the basis for it. The Basis of Estimate (BOE) is an important document that is needed as a reference to support the actual estimate, both during the actual presentation of the estimate and for future reviews (especially helpful when the people originally involved are no longer available or past history becomes hazy and the “amnesia syndrome” starts to set in).
While a lot of the information making up the estimate report itself is self evident
with no further need for clarification (for example the data comprised of columns
showing the quantity, unit price and the resulting extended price) other information
including critical information -
So what exactly do we want to document in the Basis of Estimate? While the contents should be tailored to the needs of the interested parties a basic Basis of Estimate could cover the following:
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For whom is the estimate prepared for and end usage, who is the client and listing of point of contacts for future reference.
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Details of what the project entails, including project metrics where relevant (such as size, volume, capacity, weight), purpose/ application of project, location of project, etc. Also worthwhile mentioning the type of contract, weather firm fixed price/ lump sum, fixed price/ unit price, cost reimbursable, or target.
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What is the expected award date, project construction start, project duration.
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Specify intended estimate accuracy (estimate class).
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What estimating method was primarily used (e.g. capacity factor, parametric model,
equipment factored, semi-
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Brief summary of how the project is planned to be executed with particular focus on factors affecting cost and schedule including specifying workweek, resources and equipment availability and composition, use of overtime or double shifts, etc.
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Summary of risks with emphasis on items affecting cost and schedule, as well as listing project unique factors such as project location specific market and geographic conditions including site access, labour availability, weather, time of year, previous experience with similar projects, complexity of project.
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Who was involved in the estimate and what roles did they play and what data and assumptions did they contribute.
The importance of good communication. Or telepathy as the alternate!
An “armchair scheduler” or frontline messenger?
Love them or hate them. How to conduct successful productive meetings.
Funny, but true. Video on the functions of Project Controls.
Enjoy!
Settings do matter: pick the wrong settings and your schedule’s output will be meaningless.