Tips for a perfect estimation

Always just before to start a project some questions crawling in the minds of every member of the Architects, Engineers and Construction industry. How much will it cost? How many days will it take to finish? What will be the profit margin of the project? To get answers of all these questions you should seek the help of project estimation.

Any construction projects typically involve many dynamic aspects, yet they're often constrained by finite conditions. These contradictory forces make it very difficult to determine with pinpoint accuracy the time and effort required. By using a set of proactive estimating techniques to scope, plan, and constrain your project conditions, you can dramatically improve your estimating practices, reduce and mitigate risks, and increase your project success rate.

Do you excel at predicting the time, funding, and resources your projects will require? Whether your company aims to develop a new product or service, update an existing system, or launch a new Web site, these undertakings will require people, schedules, funding, resources, requirements, testing, revising, implementation, evaluation, and many other elements. Sometimes we forget the hidden or unknown variables that are difficult or impossible to anticipate and sometime even more difficult to resolve.

That’s why you need to be more careful when estimating for a construction project. Here we are discussing about some important tips for perfect project estimation.

1. Maintain an ongoing "actual hours" database of the recorded time spent on each aspect of your construction projects. Use the data to help estimate future projects and identify the historically accurate buffer time needed to realistically perform the work.

2. Create and use planning documents, such as specifications and project plans.

3. Perform a detailed task analysis of the work to be performed.

4. Use a "complexity factor" as a multiplier to determine whether a pending project is more or less complex than a previous one.

5. Use more than one method to arrive at an estimate, and look for a midpoint among all of them.

6. Identify a set of caveats, constraints, and assumptions to accompany your calculations, which would bind the conditions under which your estimates would be meaningful. (Anything that occurs outside of those constraints would be considered out of scope).

7. If the proposed budget or schedule seems inadequate to do the work, propose adjusting upward or downward one or more of the four project scoping criteria: cost, schedule, quality, and features.

8. Consider simpler or more efficient ways to organize and perform the work.

9. Plan and estimate the project rollout from the very beginning so that the rollout won't become a chaotic scramble at the end. For instance, you could propose using a minimally disruptive approach, such as a pilot program or a phased implementation.

10. In really nebulous situations, consider a phase-based approach, where the first phase focuses primarily on requirements gathering and estimating.

11. Develop contingency plans by prioritizing the deliverables right from the start into "must-have" and "nice-to-have" categories.

12. Refer to your lessons-learned database for "20:20 foresight" on new projects, and incorporate your best practices into future estimates.

In conclusion, by using a set of proactive estimating techniques to scope, plan, and constrain your project conditions, you can dramatically improve your estimating practices, reduce and mitigate risks, and greatly increase your project success rate!