Cost estimating of resources is an essential component of the execution planning process and subsequently it is important that all cost estimates are realistic. Each worked activity must be capable of being performed at the required productivity rate. Therefore resource allocation must be finely balanced to achieve this efficiency. Crews that are too small or too large create insufficiency in one aspect or another. Similarly, for pipeline construction each activity must be equalized to reach the regulated throughput. Otherwise activities become bunched together making the construction crews less productive, resulting in a negative impact on the project schedule.
Most project management teams get it wrong, their lack of experience makes them overly optimistic as to what is achievable. As a consequence they underestimate the type and capacity of equipment, manpower and activity durations. Accordingly, cost and time expectations are inaccurate from the outset. Throw into the mix potential issues with access, permitting, quality and weather regardless of the fact these risks may have some contingency allowance built in, invariably it is never enough, then it is easy to understand why projects exceed cost and schedule objectives.
The project team and other stakeholders need to have confidence in both cost and schedule. Without that certainty decision making becomes an erroneous process that leads to further failures. PCM Ltd is an experienced Construction Management Consultant with specific expertise in pipeline construction management and appropriately has the knowledge to provide accurate cost estimates with reliable activity durations in wide-ranging geographical conditions. Furthermore, we produce estimates with a bottom-up approach to ensure thoroughness in delivery of the anticipated final cost.
Included within the final risk exposure will be identified project risks and contingencies for resolution. Of course, a number of iterations of the cost estimate will need to be completed before achieving the anticipated final cost. The level of reliability is dependent on the veracity of scope definition. The objective of construction cost estimating is to secure a definitive cost for the construction phase and budget, which can be measured and controlled. Project success is contingent upon credible cost evaluation.