Pad Your Cost Estimate!

摘要

THE CONTRACTOR'S estimator worked up an estimate that was far too low. I knew it was low because, as is my custom, I used "Means Facilities Construction Cost Data" and past estimates to do a 90% budget estimate of the project. For one thing, she forgot to consider the demolition of a salt pit. I told her it was double-rebar but she missed it in her estimate. Regardless, I was forced to take the low bidder — but I knew the project would incur unavoidable cost overruns. I spent the morning of the first day of the project getting buy-ins from stakeholders for a change I planned to make. When the contractor's foreman approached to tell me the outfit was abandoning the job (because it figured the loss from completing the job would far outweigh forfeiting its deposit guarantee and the damage to its reputation), I asked him if he'd consider the change.