1.1 Preliminary Conceptual Estimate

POLICY: Preliminary Conceptual Estimate

PURPOSE: To ensure the consistent and thorough preparation and presentation of conceptual estimates. “Conceptual Estimating” is defined as the process of developing an estimate for a project based on a concept or scheme utilizing quantity takeoff and actual construction cost history.

RESPONSIBILITY: Estimator in Charge

PROCEDURE:

A. When an estimate is requested for a project, the Estimator in Charge will gather all applicable information related to the project.

B. To the greatest extent possible, each estimate will include quantity surveys applicable to the information provided. The plans will be taken off and quantities identified.

C. For information not easily gathered from the documents provided, the Estimator in Charge will use historical information from similar projects to identify quantities and/or anticipated cost.

D. The Estimator in Charge will consult with a Senior Manager or Field Operations personnel for potential schedule and staffing issues.

E. As part of the estimate presentation, the following shall be included in all cases:

1. Cover letter
2. Comments and Clarifications and Outline Specs as applicable. The following note will be placed on all comments and clarifications. “Note: Items in the following comments and clarifications indicated in bold are anticipated project cost items that are not included in this estimate.” The Estimator in Charge will be responsible for ensuring the approving authority understands the scope included and excluded and the associated costs.
3. Estimate Summary sorted by specification section, phase level with quantities. Estimate summary will be listed in Labor, Material, and Subcontract categories.
4. Alternates and value engineering as applicable.
5. If estimate is an updated estimate, an estimate recap sheet will be included. This recap will indicate previous estimate cost, itemized changes within this estimate to arrive at the current estimate being presented.
6. An estimate comparison analyzing costs of a project similar in size and scope of construction. Note, this comparison sheet should be updated for any subsequent estimate and will be provided as part of all estimate presentation.
   

F. After the estimate presentation is complete, it will be reviewed and approved by another Estimator and the Senior Project Manager. Approval will be indicated by signatures located on the estimate comparison and the last page of the actual estimate.

G. After the estimate is reviewed and approved, it will be presented to the Approving Authority. The Estimator in Charge and the Senior Project Manager will attend the Estimate Presentation. All applicable operations executives are encouraged to attend when possible.

H. A copy of each preliminary estimate to be provided to all upper management executives.

Estimate Presentation Sample