Estimating

“Defined as the valuation of probable cost in terms of money, materials, resources, time and risk.”

Before determining the content of an estimate, it is pertinent to understand the contract types as well as understanding which type of estimating approach will be used to execute the work. By answering these questions and establishing the specific details, this will help determine activities and accounts to be established and reported.

Whether or not your contract is fixed price, cost-plus award fee, time & material, or perhaps your estimate is within its rough order of magnitude (ROM) or budgetary phase, PTCGL has experience in delivering “fully-traceable” estimates to meet the projects expectations. We utilize the latest estimating software such as Timberline, WinEst, Success, and other proprietary applications. In our business, we understand that a well-documented estimate will withstand honorable scrutiny. If rigorous documentation and estimate procedures are followed, the credibility of a cost estimate increases. It is important to document all steps of the cost estimating process.

Our cost approach:

• Perform quantity-takeoffs and field walk-downs
• Identify the projects, subprojects, milestones, activities, and tasks
• Obtain budgetary or contract-supplied information
• Establish productivity rates or perform task analysis
• Calculate all applicable costs, including direct costs, indirect costs, contingency, & escalation
• Establish a funding profile utilizing the work breakdown structure and/or account code
• Determine what risks (and to what extent) should be mitigated with activities
• Consider other inputs, including schedule information, risk management plan, & peer reviews
• Produce all applicable detail and summary reports

Our cost estimates and life-cycle cost analysis are developed for many reasons.

These purposes include support to:

• The critical decision process within programs/projects

• The annual budget process

• Contract actions

• Other project/program management purposes (various Federal and Commercial industry practices).

Our detailed unit-pricing, or activity-based cost estimates, are the most definitive of the estimating techniques and use information down to the lowest level of detail or work breakdown structure (WBS) available. They are also the most commonly understood and utilized estimating techniques throughout our clients’ projects.