E522: Estimating The Contract
Review your contracts carefully during the estimating process.
- Contracts are the basis of all projects
- Contracts = risks / deliverables = cost
- Contracts can be simple or complex
- Review the clauses and account for them in your estimates
- Risks & deliverables cost money
- Depending on the risk / deliverable the value will fluctuate
- You can break them into Actual and Potential
- Actual: reporting, scheduling, manpower, supervision, security, etc.
- Potential: Acceleration, change order mark-ups, delays, hold harmless, etc.
- Account for them in the estimate
- Depending on the risk / deliverable the value will fluctuate
- Review and add to your estimate
- Treat like a contingency – have adds/deducts
- Review each clause to determine what time / effort is required
- What are the possibilities on the project