Cost estimating helps companies accurately forecast the cost, size, and duration of future projects. Regardless of the industry in which they work, estimators collect and analyze data on all of the factors that can affect costs, such as materials, labor, location, duration of the project, and special machinery requirements, including computer hardware and software. Construction cost estimates are performed at TranSystems by senior level registered professional engineers. Experience is a key element given many factors that must be considered when preparing a construction cost estimate. To increase accuracy, we coordinate with construction management staff in the review of cost estimates.
We typically perform two types of cost estimating on our construction management projects. The first encompasses the entire project as a lump sum cost. While this is only a general estimate, it gives our clients a starting figure from which to work. The second type of estimating is related to change orders submitted from the contractor. These are reviewed in much more detail using our knowledge of local industry prices, coupled with Green Book guidelines, to develop our in-house comparison estimate.
TranSystems utilizes several different sources when preparing cost estimates. One source is the previous recent bid results from clients’ bids. Other trends also need to be considered such as inflationary rates and current construction market status. TranSystems also references the latest editions of “RS Means, Heavy Construction Cost Data” for additional cost estimating sources. The combination of all of these estimating factors and approach provides the most accurate construction cost estimate possible.
TranSystems has provided cost estimating services to public and private clients such as railroads, departments of Transportation, tollways, airport authorities, and ports.