Stephen L. Cabano, President, Pathfinder, LLC presents on Thursday, March 28 from 4:30pm - 5:30pm
Supporting Owner Estimate Classes with Engineering Maturity and Accuracy
For decades, AACE has provided details around the level of cost estimating accuracy related to the maturity of the engineering deliverables across front end phases of a project. This established an industry accepted criteria for communicating the level of cost estimating precision as a project moves from its earliest development phases to the full project funding step. This single dimension has long been the mechanism for assuring engineering deliverables are at the level of completeness to support the cost estimating effort. But is it enough? The Construction Industry Institute (CII) recently completed a research effort which concluded it was not enough in today’s market. A second dimension/second lens is needed to evaluate the level of accuracy of engineering deliverables. This presentation will provide the basis for this research and the data that supports the application of the approach.
Paul Williams, Vice President, Pathfinder, LLC presents on Friday, March 29 from 2:00pm - 3:00pm
Owner Project Planning Supports Estimate and Schedule Accuracy
When developing the owner’s cost estimates, the maturity of engineering deliverables has often used to define the class of estimate produced. This has long supported the standard estimate classification model but should not be the only parameter considered when defining the class of estimate in support of capital programs. There are several equally important aspects of the quality of the front end deliverables such as the accuracy of the engineering as well as the maturity of the project plan. The project plan needs to evolve at the same pace as the engineering deliverables and will likewise affect the level of schedule and cost estimate accuracy. Significant improvement in project cost and schedule outcomes are possible, depending on the details of the project plan and its relationship to specific project characteristics and risks. This paper will identify industry best practices for content of the project plan and the typical evolution of the plan through the project front end efforts and execution. Examples of owner project plans will be provided and as well as the impact various components of the plan have on the estimate/schedule accuracy and corresponding project risk.