Conceptual Estimating - Turning Drawings Into Estimates

Conceptual estimating requires a contractor to take early stage conceptual drawings and turn them into detailed estimates with a Work Breakdown Structure (WBS) that is useful during the initial programming, schematic, and design development phases.

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D. Brown Management
January 23, 2019 2 minute read
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It is important to remember that during these early stages, the developer is working to put together financing for the project.   

CM at Risk: Conceptual Estimating Technology.

There is a lot of risk for all parties in a new development and as with any type of financing, banks are looking at the 5Cs with covenants, just a like a contractor has on their credit line.

The difference between a project moving forward or not is often in the single-digit percentage on cost and revenue projections. With construction costs being about half the total cost of the development, it is critical that the contractor can create a realistic budget even at this early stage.  

  • Too high of a plug number and the development won’t pencil out for cash flow. They will likely source a second opinion from another contractor or pull the plug on the development. 
     
  • Too low of a plug number and it won’t be constructable. Raising the number later in the process may cause the financing to get pulled from the project.  

  • That budget must be detailed in a way that is truly useful for the project owner, architect, consulting engineers and contractor to make good decisions during the schematic, design development, and construction document phases.  

The better a contractor is at this, the earlier and more often they will be brought into the process. 

CM at Risk
The preferred project delivery method. There is a reason 100 of ENR's Top 400 General Contractors use CMAR as the project delivery method for over 75% of their work. Leverage CMAR as part of your growth strategy....
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CM at Risk
The preferred project delivery method. There is a reason 100 of ENR's Top 400 General Contractors use CMAR as the project delivery method for over 75% of their work. Leverage CMAR as part of your growth strategy....
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