October 2010
Addenda #35 American Society of Professional Estimators Great Plains Chapter #35
VOLUME 1, ISSUE 4
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MEMBER COMPANIES
Ahern Fire Protection
Kiewit Building Group, Inc.
Bldg Cost Consultants, Inc.
L & L Builders Co.
Davis Erection Co., Inc.
MCM Services
Drake-Williams Steel Inc.
New Steel Inc.
Essex Corporation
Omaha Electric Service Inc.
Heartland Scenic Studio, Inc.
Sampson Construction Co., Inc.
Interstates Const. Srvcs. Inc.
Tempest Company
Kidwell Inc. UPCOMING EVENTS
Social Activities and Chapter Meetings Motivational Speaker Andy Greenberg—November 10, 2010 As a speaker, Andy brings an energetic leadership and contagious enthusiasm when asked to help companies and associations with employee training. He has extensive experience developing associates’ skills, markets, products, effective sales operations and highly motivated team members and leaders. The Sixth ASPE Scholarship Texas Holdem Tournament—November 13, 2010 Location: Essex Corporation Office, 11606 Nicholas St, Omaha, NE Time: 4:00 pm Registration , 4:30 pm Start
NOVEMBER MEETING DET AILS Lunch Meeting Date: November 10, 2010 Time: 11:30 am Speaker: Andy Greenberg (see bio on page 4) Location: Grisanti‘s Italian Restaurant 10875 W Dodge Road, Omaha Lunch Fee: $25
Social Activity/Fundraiser Date: November 13, 2010 Location: Essex Corporation, 11606 Nicholas St, Omaha See page 4 for more details
PLEASE RSVP for these events at least one day in advance RSVP by email to ahrenholtz@gmail.com online at sites.google.com/site/aspe35 or by SMS or telephone to 402-522-6016
Member Benefits include Industry Recognition and Career Enhancement
October 2010
American Society of Professional Estimators
ARTICLES
Great Plains Chapter #35 SPREADSHEETS, CANNED SOFTWARE OR PAPER AND PENCIL? BY DON SHORT. AUTOMATED ESTIMATING. DREAM OR NIGHTMARE? BY MATHEW M. WOOLSEY
BE A MASTER IN CONSTRUCTION BY CRAIG PIERCE
DOES BIM MEAN ESTIMATORS ARE OUT OF A JOB? BY MARCEL BROEKMAAT
MESSAGE FROM THE PRESIDENT
F E AT U R E S
REVIEW OF LAST MEETING BOARD MEETING MINUTES & HIGHLIGHTS COMMITTEE REPORTS MEMBER BENEFITS MEMBER COMPANIES ASPE CANONS
CRITICAL CALENDAR ITEMS SPONSORS UPCOMING MEETINGS
The cover art is a ground shot of the First National Bank Tower from flickr.com user jthj. The picture is hosted at http:// www.flickr.com/photos/jthj/76109395/
THE GREAT PLAINS ADDENDA #35
ASPE CHAPTER 35 OFFICERS President Chris Ahrenholtz ahrenholtz@gmail.com First Vice President Mark Mentele markms@tempestcompany.com Second Vice President David Hansen drh67gal@cox.net Third Vice President Jonathan Hatcher jhatcher@ahernfire.com Secretary Jerry Onik jonik@heartlandscenic.com Treasurer Steve Rice srice@omahaelectric.com Directors Isaac Davidson idavidson@omahaelectric.com Jason Prebyl Jason.prebyl@kiewit.com Justin Short justins@tempestcompany.com
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A DESIRE TO INSPIRE—MOTIVATIONAL SPEAKER ANDY GREENBERG About Guest Speaker Andy Greenberg: For more than 11 years, Andy has been mentoring and training people, both formally and informally. From casual conversations with friends and colleagues to official presentations at large businesses and associations, Andy‘s desire to inspire is far-reaching. Andy‘s love of counsel was not born professionally; it grew organically. He is passionate about people and relationships, and it shows. People are drawn to his natural enthusiasm and find his desire to live life to the fullest nothing short of inspirational. Andy also enjoys travel (he‘s been to 62 countries!). His devotion to cultural and spiritual exploration feeds his presentation style. He wisely and naturally finds connections between different customs, philosophies and societies – taking common beliefs and turning them into opportunities to teach personal and professional growth. But what comes most genuinely to Andy is his charm and uncomplicated style of communication. He makes sure everyone he speaks to can understand even deeply complex concepts and that each individual in the room, no matter how large the audience, feels his desire to inspire. Andy‘s messages are featured each morning on Omaha‘s most popular talk radio show ―The Good Morning Show‖ on 1110 KFAB.
The 6th ASPE Scholarship Poker Tournament The Great Plains Chapter #35 of the American Society of Professional Estimators is hosting a No-limit Texas Hold'em Poker Tourney. Anyone is Welcome to Participate. This is a FUNdraiser for our scholarship. You DO NOT need to be a member to participate. The Entry Fee for the tournament is $20. Each entrant will receive 2,500 chips. Anytime during the first hour, entrants may buy an “Add-on” worth an additional 2,500 chips for $20. There will be one $20 rebuy allowed during the first hour. With a rebuy, the entrant will receive an additional 2,500 chips. All entrance fees will be awarded to the top finishers. Rebuys will be split between the scholarship fund and the tournament prize pool. Add-ons will apply to the scholarship fund. Payouts will be determined based on the total number of entrants. Pizza will be furnished with soda pop. Feel free to BYOB and any additional snack food that you might want.
VOLUME 1, ISSUE 4
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SPREADSHEETS, CANNED SOFTWARE OR PAPER AND PENCIL? BY DON SHORT.
O R IG IN AL AR T ICL E P OS T ED AT :
BLOG.TEMPESTCOMPANY.COM In the dark ages before micro-computers estimators had pencils, paper and erasers. Sometimes they were very big erasers! We had techniques for minimizing mistakes on a given takeoff sheet, detail sheet, summary sheet and the final bid sheet. One of these was the primary estimator on each of these sheets was responsible for checking their own work. Another estimator then had to verify each sheet and the number carry forwards to summary sheets.
ings can be compared at one time so problems can be identified. I like them for a host of other reasons too. On screen takeoffs with digitizers are no blessing for estimators. Rolling scales, mechanical or electrical with counters, are.
Then came Visi-Calc, Lotus 1-2-3, Excel and preprogrammed or ―canned‖ or ―packaged‖ software for estimating! I tried my hand at programming an estimating package. Over a couple years of time, I learned I was an estimator not a programmer. I also found out that computerized aided estimating reduced some errors but new ones developed in their place.
For flexibility and ease of use, a spreadsheet can be superior to canned software. The major shortcoming of spreadsheets is their formulas and operations can be relatively easy to corrupt. Working with/without a database can be a problem. While the basic operations of a spreadsheet require minimal training, very little training is provided on the advanced features that can benefit the estimating process.
I have studied the use and application of spreadsheets, canned software and custom developed software for estimating and some related applications in project controls. They all have some advantages and disadvantages. All are superior to the pencil and paper for many reasons. With all of the electronic advantages one would think that paper would be a thing of the past in estimating. This is not the case for some good reasons. When it comes to estimating there are two distinct areas. One is the takeoff and the other is the pricing of the estimate. With a couple of exceptions in the civil area for excavation and backfill, I am a proponent of a hand takeoff process. In the excavation and backfill areas the takeoff software and digitizer packages are far superior in accuracy and speed to the manual methods. Focusing on the action of digitizer increases takeoff speed but it introduces errors such as skimming the information, not studying it. It leads to overlooked items. In performing the takeoff, speed kills. I prefer working with blueprints over the on screen option. I prefer full size over half size. I like coloring blueprints because they show at a glance the counted items. It is easy to spot items that have been missed. They provide a valuable record of the project at bid time. Several draw-
FIND US ON:
Purchasing and using canned estimating software has its own set of advantages and disadvantages. Their databases capabilities are a big advantage. This is also their disadvantage in that the standard information must be customized to meet the purchaser‘s operations and procedures in estimating. This is a process that can take six months to a year with several people involved in the process. I know some purchasers of prepackaged software that have never implemented their estimating software because of this level of commitment. Overall I prefer a spreadsheet to packaged software. A spreadsheet can be made to duplicate current estimating practices and be changed over time as the practices change. Spreadsheets are a very common and easy to use method for the importing and exporting of estimate information for other uses. Oh, By the Way… Leave the dark ages of estimating behind as history! I use a combination that includes paper & pencil, scales & digitizers, spreadsheets, packaged and custom software for estimating. This has the flexibility of handling all types of situations that will be encountered. What do you use?
SEARCH FOR ASPE CHAPTER 35 IN THE GROUPS SECTION
NEWSLETTER TITLE
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AUTOMATED ESTIMATING.
DREAM OR NIGHTMAR E?
By Mathew M. Woolsey Original article posted on the LinkedIn page for ASPE窶馬ational group
In the last decade automation systems have become increasingly more affordable and reliable and have created efficiencies in just about every market sector. Manufacturing has benefited from cheaper, faster and more reliable automated production processes. Technology in general has had a positive impact on the sales and service industries, comprehensive customer databases, expedited distribution and lightning fast communication is increasing customer satisfaction across the board.
solid cost database and in turn completely automate the budgetary cost estimating process. The truth is these programs do exist, but do they work?
The dirty little secret is that estimating is and always will be more of an art than a science. A good exercise to prove this point is to imagine a single sheet of gypsum wallboard is being installed by a single worker on the first floor of a project, picture the same worker installing the same sheet on the 30th floor, will the installed price of that sheet of wallboard remain the same on The construction industry has also both floors? No. Why? Because the benefited largely from technological wallboard must be transported to the advances, Computer-Aided Drafting 30th floor, as does the worker's tools, and Design programs have allowed A/ also the worker must go a much further E firms to produce fully encompassing distance to retrieve any forgotten tools plan sets with fewer mistakes for half or materials from the job trailer, all of the cost. Building Information Modeling these scope items result in substan(BIM) has permitted design profession- tially decreased worker productivity als to construct buildings digitally beand in turn an increased labor cost per fore a project ever breaks ground, alsquare foot of wallboard installed. But lowing them to assess spatial relation- by how much should we augment the ships, building geometry and construc- unit cost to account for such a detability. Through BIM's three dimencrease in output? Only experience and sional abilities it has also increased critical thought can answer accurately. efficiencies in the communication process between the builder and architect, The same exercise can be run with a decreasing change orders and revariety of other construction compoquests for information. But can technents and processes, board foot of nology improve every facet of the con- stud framing, lineal feet of electrical struction industry? wire, and square foot of insulation to name a few. There is not a single unit Every time I speak with an architect price within a budgetary estimate that about the estimating process I get the is not subject to fluctuation based on same question: "What do you think scope items such as the total quantity about BIM?" At first I have to concede installed (100 square feet or 100,000 that BIM's functions do in fact allow for square feet of material), the process of a fairly accurate quantification of the installation (wallboard installed on an 8' buildings components, from which it ceiling using a ladder or a vaulted 20' seems it is not too far of a stretch to imagine that these quantities can be linked to a
ceiling using a man lift) or the context of installation (working around a buildings existing operations or a vacant structure). We now start to see the insurmountable obstacle of automated cost estimating: Scope. No two projects are alike, materials change, as do their quality, as do the processes by which the materials are installed. Any computerized estimating software would be forced to utilize a universal cost publication as a costing database; these publications are built using average material, labor and equipment costs and can only accurately compile average construction costs for an average building constructed in an average city using average processes. Most cost books do not claim to be accurate for every project, in fact any cost book worth its weight will disclaim that their data does in fact not reflect precise construction costs for any project rather that their line items are only accurate once tempered with the applicable project scope. Accurate estimating can only be achieved once the who, what, when, where and how of a project is fully accounted for and translated into a monetary figure reflecting the true costs related to the construction of a given structure. Automation may be able to properly quantify the "what" but the "who", "when", "where" and "how" will forever be left to the expertise of an experienced cost estimator.
VOLUME 1, ISSUE 1
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BE A MASTER IN CONSTRUCTION By Craig Pierce Posted on ConstructionMonkey.com, via LinkedIn Where are the true Masters in Construction? I am not talking about those that have ventured out to get a Masters License in their prospective trade, I mean real masters. American culture and probably world wide to some extent has moved us away from becoming masters at what we do. Marketing pushed to us is stated as "buy this or do this and get an instant result". We start to believe that in a very short period of time or with a simple purchase we can master a skill or problem quickly and easily. Well that is not true. Is your organization geared to train mas-
ters? Whether we are talking about estimators, project managers, or craftsmen do you have the training system put in place to create mastery? Mastery requires good training and practice. Not just a little practice, but a lot of practice. It requires a teacher reviewing the student's progress and providing correction and feedback on a continual basis.
lifestyle commitment to being the best. Sure the little things will help. Purchasing golf clubs will help in being a master at golf, but it won't make you one. Only hard work, practice, and learning will allow you to achieve mastery.
Take a look at your business and your career. Are you a Master at what you do? Are you set-up to become a MasIf there is one thing in life and business ter? Trust me that if you answer yes, you that will make you successful and happy, will weather the current economic storm it is mastery. It does not come easy. It and will strive to the highest levels of does not happen with a quick software success. People like winners, but the purchase, an employee hire, or a conadmire Masters. sultant agreement, it happens through a
DOES BIM MEAN ESTIMATORS ARE OUT OF A JOB? Posted on LinkedIn by Holly Allison, VP of Marketing at Vico Software Article by ―Flying Dutchman‖ Marcel Broekmaat worked for Engineering and Construction firms in the Netherlands before joining the Vico team in 2005. Marcel is responsible for Vico‘s Cost Management solutions.
ABSOLUTELY NOT! Let's rephrase the question: Does the use of BIM for quantity takeoff and cost planning require a change in the job description of Estimators? In other words: do estimators have to become modelers?
over that obstacle. "Starting easy" is option number one. Creating simple volumes by tracing 2D plans is as easy as onscreen quantity takeoff, results in more quantities for the conceptual cost planning phase and provides a nice visual tool for the project team on top of that. It can be learned and done in a day...
These are questions that we often get during the Q&A sessions of our Fridays with Vico webinar series. I suspect that the question typically comes up when people realize that the Building Information Model does have to be built first, when you want to be able to use the model-based takeoff and cost planning tools. It seems that the fear for the complexity of modeling tools creates a hurdle that is not easily taken, even though the value of the model's automated takeoff and visual feedback is much appreciated.
Option two: in most projects that are designed today, BIM is used by the design team. When project teams define and agree on the content, methodology and naming conventions used in design models, these models can provide usable input for quantity takeoff. It is quite likely that not all quantities can be obtained from the design model, but the model's visual feedback and the ability to ‗mix and match' with manual quantities will make it possible to quickly start taking advantage of BIM tools.
There are, however, various ways to get
A third option is to work with an internal
or external "VDC" team, whose members are made responsible for the creation of the model (either with the design team, or based on 2D input). The estimator can in this case interact with the VDC team by providing a list of "desired modelbased quantities," based on which the team can then develop the model with the needed content and level of detail. Many of Vico's customers are working like this today and the created input creates much better input for meetings in which cost and quantities have to be explained to owner and project team: all doubts melt away as soon as the virtual elements that provide the discussed quantities are isolated and presented on a screen. Bottom line is that instead of seeing the difficulties, estimators should look at the opportunities that the new technology can provide today: BIM means an enrichment of the job description, not a redefinition!
THE GREAT PLAINS ADDENDA #35
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A NOTE FROM JAMES BENHAM ABOUT THE ESTIMATORS TECHNOLOGY TOOLKIT Thanks to the hospitable ASPE network, I’ve had the opportunity to discuss the Estimator’s Technology Toolkit with chapters like yours across the country. We’ve discussed a lot of different technologies, but the message is always the same. These are all tools that I think every estimator can use to improve their efficiency, reduce costs and achieve a higher degree of accuracy with their bids. Collaborative Spreadsheets Most estimators I know use Microsoft Excel extensively. It is, statistically speaking, the most widely used tool in estimating today. The major problem with all spreadsheets is that when they are used as a data storage medium, they fail miserably due to lack of portability and collaboration capabilities. Many cries of “Who has the latest version of the Excel sheet?” can be heard throughout the halls of America’s offices on a daily basis, however now those cries have a resounding answer.
Takeoff Software It still surprises me how many people I speak with that still cling to paper takeoffs. During the estimation process, not having to pay for prints (considering a single plan set can cost hundreds of dollars) allows an estimator to bid on more work with the same budget. More than that, the ability to save templates, snap to corners and lines in certain file types, and plug numbers from a takeoff directly into certain estimating software can dramatically improve the speed and accuracy of the entire takeoff process.
In the theoretical paperless work environment, an estimator could download a free electronic set of plans from plan room software like SmartBidNet, perform the takeoff electronically, and then submit their bid online - without ever having to print out a set of plans or pay any out-of-pocket expenses. While BIM promises to produce reports that would theoretically negate the need for a takeoff, this part of our business will be around for some time. Planswift and What our friends at Google have brought us is the ability to On Center’s OST, offer free limited-feature programs or trial programs of their full-featured estimating software. take the Excel sheets that we’ve been using for so many years and upload them to their web based interface (docs.google.com). Unlike most traditional file sharing sites Google Sketchup though, Google Docs actually allows you to edit the spread- BIM is being adopted across the industry and products like sheet in real-time on the web and “Share” editing access Autodesk Revit, Vico and Bentley Systems are fighting for with anyone you choose. the growing market share of BIM users, but many estimators I know simply don’t have the budget to invest in BIM solutions. In the interim, I strongly advise every estimator The spreadsheet can be edited by everyone at the same that I know to be learning the concepts of 3D modeling by time, and everyone sees edited information in real-time. using Google Sketchup. Mistaken overwrites are prevented by locking out the cell on which a user is working. All users of a bid can work on the same sheet at the same time without any fear of over(Continued on page 10) writing each other’s data.
AN EXCELLENT CONSTRUCTION ORGANIZATION MEETING TOPIC from Oh, By The Way... by Mark Mentele Typically when a salesman is asked to give a presentation to some sort of group, it turns out to be one big marketing pitch and you realize you will never get that hour of your life back. I was expecting the same scenario at the last American Society of Professional Estimators local chapter meeting. James Benham, the owner of SmartBidNet, was going to be the presenter on the topic of ―The Estimator‘s Technology Toolkit‖. I was prepared to listen to him pitch his product throughout the entire presentation. I even doubted one of his first remarks that he would only give a 60 second pitch at the end. Much to my surprise, he held true to his word! He hardly even mentioned his software except at the very end when he stated basically they are there to help in a one minute blurb. He kept the meeting upbeat and encouraged participation with the crowd. He also made some very good points about how new technology might shape how construction will be done in the future. I‘m not trying to promote James or his company in this blog. Actually, I have never even used his software. It‘s a challenge to find new topics/presenters to keep members of an organization interested and James did an excellent job. If you are looking for an idea for your meetings, I would suggest contacting him to see if he is willing to come to your area. His website, www.jamesbenham.com, provides a contact form and looking at his events page, he travels all over the country.
VOLUME 1, ISSUE 4
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ASPE CANONS Canon #1
Canon #6
Professional estimator shall perform services in areas of their discipline and competence.
Professional estimator shall utilize their education, years of experience and acquired skills in the preparation of each estimate or assignment with full commitment to make each estimate or assignment as detailed and accurate as their talents and abilities allow.
Canon #2 Professional estimator shall continue to expand their professional capabilities through continuing education programs to better enable them to serve clients, employers and the industry.
Canon #3 Professional estimator shall conduct themselves in a manner which will promote cooperation and good relations among members of our profession and those directly related to our profession.
Canon #4 Professional estimator shall safeguard and keep in confidence all knowledge of the business affairs and technical procedures of an employer or client.
Canon #5 Professional estimator shall conduct themselves with integrity at all times and not knowingly or willingly enter into agreements that violate the laws of the United States of America or of the states in which they practice. They shall establish guidelines for setting forth prices and receiving quotations that are fair and equitable to all parties.
Canon #7 Professional estimator shall not engage in the practice of ―bid peddling‖ as defined by this code. This is a breach of moral and ethical standards, and this practice shall not be entered into by a member of this society.
Canon #8 Professional estimator and those in training to be estimator shall not enter into any agreement that may be considered acts of collusion or conspiracy (bid rigging) with the implied or express purpose of defrauding clients. Acts of this type are in direct violation of the Code of Ethics of the American Society of Professional Estimators.
Canon #9 Professional estimator and those in training to be estimator shall not participate in acts, such as the giving or receiving of gifts, that are intended to be or may be construed as being unlawful acts of bribery.
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BOARD MEETING MINUTES & COMMITTEE REPORTS Meeting Date: September 1, 2010 Time: 11:45 AM Location: Granite City Food and Brewery Attendance: Chris Ahrenholtz, Mark Mentele, Justin Short, Jerry Onik, Isaac Davidson, David Hansen Discussion topics: August Meeting Review—Ethics meeting, Owners perspective— Design/Build September meeting preview—James Benham Committee reports Membership—two non-renewing members and possible Member-Emeritus Finance—Still preparing for transfers to new Treasurer Scholarship—planning dates for Poker Tournament. Also implementing a new year-long raffle fund-raiser for scholarship fund. Awards—Jerry will assist in awards prep Newsletter—ongoing search for content Programs—Don is checking with Ameritrade to reschedule their involvement in a future meeting Website—Jerry, Mark, Steve, and Dave are researching and coordinating options Old Business SBO is reminding chapters to provide Federal ID numbers and Articles of Incorporation
Meeting Date: September 29, 2010 Time:11:45 Location: Granite City Food and Brewery Attendance: Chris Ahrenholtz, Justin Short, Steve Rice Discussion topics: September Meeting Review—James Benham October meeting preview—Rob Maglinger, Greater Omaha Economic Development Partnership Committee Reports—no reports
MISSION STATEMENT
Www.sites.google.com/site/aspe35
AMERICAN SOCIETY OF PROFESSIONAL ESTIMAT ORS GREAT PLAINS CHAPTER 35
Upcoming Chapter Meetings November 10 - Andy Greenberg December 8 - Estimating Errors January 12, 2011 - Tom Becka February 9, 2011 - Legal Issues in Construction March 9, 2011 - Site Visit April 13, 2011 - Federal Issues in Construction May 11, 2011 - Educational Seminar, Elections, and Awards Upcoming Board Meeting:
The American Society of Professional Estimators serves construction Estimators by providing education, fellowship, and opportunity for professional development.
October 27 - November 24 - January 5, 2011 - January 26, 2011 - February 23, 2011 - March 23, 2011 - April 27, 2011 - May 18, 2011 PRESIDENTS MESSAGE JAMES BENHAM
(Continued from page 8)
Sketchup provides a free product that anybody can download (www.google.com/ sketchup) that allows you to model entire buildings in 3D and to start doing basic takeoffs. (It can easily calculate linear and square feet of objects used in the model.) Other features in Sketchup include the ability to take the designed models and render them into higher resolution conceptual images, or drop the 3D models onto Google Earth to show an owner what their building could look like on the site they have selected. Satellite and Street Level Imagery Companies I talk to on a daily basis are traveling farther and farther from their home operations for bid projects, meaning estimators are having to bid on work in less and less familiar areas. Since it is no longer as feasible to drive down the road to do a jobwalk, it’s important to know that ready alternatives await online.
CRITICAL CALENDAR ITEMS
October 29-30, 2010 Board of Trustees Meeting—Society Business Office
December 15, 2010 Last Day to submit Proposed Amendments to Bylaws Committee January 1, 2011 Last Day to Submit Certification Applications
There are many activities planned for the coming year. If you have program suggestions, newsletter topics, or other ideas to share, we would love to hear from you