Why is communication between estimators and project managers important? Projects that start with low estimates are doomed to fail
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ommunication between the estimator and the company’s project manager is essential during the various stages of the project cycle, especially when dealing with projects that have features that go beyond the company’s usual area. Communication related to the choice of projects to be tendered In many cases, the estimation team makes the mistake of boasting about the number of estimates submitted and won during the year, without taking into consideration the end results. When it comes to selecting the projects to be tendered, the project manager is the key stakeholder. Therefore, it would be better for the team to only commit to the process of estimating a project if its administration shows interest. It would be better for their efforts to be focused on selected projects. Communication during the cost estimate process It is essential for the project manager to contribute to the estimation in order to
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avoid overstated costs leading to the loss of the project, or understated costs that would cause the company to make a loss on the project. Here are a few key points for discussion: a) Reading reports, specifications The estimator and project manager should read all the tender documents so they can exchange views. Examples of cases with a significant impact on prices to be discussed: • The geotechnical report The nature of the soil to be excavated: what is the soil class? Is it rippable rock that could be excavated with a shovel? Or is it solid rock that requires a rock breaker or blasting? Is this a type 2 excavation requiring support? What type of support will be required? Sheet piling? Or will a cheaper system suffice? Is there a way to avoid support costs by looking into excavation slopes? • The environmental report Is the project located in an area where noise must be controlled? Does the
estimator need to factor into the costs that certain activities need to be carried out in off-disposition periods? What is the project manager’s plan for noise abatement (demolition/ concrete work/compressor/etc.), or for removing construction dust? Does the environmental report identify specimens to be kept at their place – what are the linked costs? Does the report mention the presence of asbestos? Is the soil contaminated? • Mechanical and electrical plans The project manager will be the best person to elaborate on mechanical and electrical costs such as: indicating duct routings and sizes; advising whether these systems will require additional structural or sealing work; suggesting methods of handling heavy equipment, etc. • Offering alternatives An experienced project manager will be able to offer alternatives that could lower the overall cost of the project, without affecting quality. These alternatives could help the offer stand out, by giving it added value.
Winter 2020 | www.ciqs.org | CONSTRUCTION ECONOMIST | 21
