Tag Archive for Tag: Estimating

Tag: Estimating Computer Estimating

There are essentially three types of commercial computer products useful in preparation of cost estimates: Utilities. These are programs that arrange information or do arithmetic; for example, spreadsheets and report generators databases. Most estimating programs fall into the utilities category. Databases. These contain raw information, for example, prices of plumbing fixtures, that the estimator must analyze and choose from. Expert Systems. These are programs

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Tag: Estimating Estimating Margin (Markup)

Margin comprises three components: indirect costs, company-wide costs, and profit. These are defined in Art. 19.1. Determining Indirect, or Distributable, Costs The techniques used to calculate indirect costs (often called indirects) resemble those used to calculate direct costs (Art. 19.2). Parametric Technique. The indirects calculated by this technique may be expressed in many ways, for example, as a percentage of the direct cost

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Tag: Estimating Estimating Contingency Costs

These are the costs that must be added to the initially calculated costs to take into account events that are highly likely to occur some time during the course of a project and that will affect project cost (Art. 19.1). Although the effect and the probability of occurrence of each contingency event cannot be predicted, the total effect of all the contingencies on the

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Tag: Estimating Estimating Direct Costs

Methods for preparing an estimate of direct costs may be based on either or both of two approaches: industry, or facility, approach, and discipline, or trade, approach. For any project, the approach that may be selected depends on user preference and client requirements. If used properly, the two approaches should yield the same result. Industry or Facility Approach. Industry in this case refers

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