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.
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