The Canadian Construction Association (CCA) has made a new guide designed to improve cost predictability of construction projects available on its website as a free download.
The document, titled Guide to Cost Predictability in Construction: An Analysis of Issues Affecting the Accuracy of Construction Cost Estimates, was developed through a joint taskforce comprised of senior representatives from the construction industry and the federal government.
The guide was created to assist owners and contractors in submitting bids and offers eight recommendations for before, during and after the bids, as well as a list of suggested design and development documents for different classes of estimates.
The taskforce stated that although inaccurate or insufficient estimating processes account for some of the variance, owners’ estimating processes are also rarely properly completed up to a reasonable Class A level.
The taskforce created a cost estimate variance matrix designed to provide “a range of estimate variance based on the level of construction documents completion in combination with an evaluation of the level of complexity of the project.”
The matrix suggests the previously accepted degree of accuracy, (+/- five per cent) for Class A estimates should be expanded.
“Given the increasing variety and complexity of construction projects, the degree of accuracy for Class A estimates should be expanded to +/- 10 per cent,” said John Westeinde, taskforce chairman and president of Westeinde Construction Ltd.
The taskforce stated that to create a realistic Class A estimate: professional, experienced estimators must be employed, project design documentation must be complete and enough time must be allocated for the estimate.
To download the new guide, click here.