Understanding & Evaluating Construction Estimates

Introduction

On Thursday, November 10th, 2016 at 10 a.m., Jordan Scott & Mike Villalba presented Understanding & Evaluating Construction Estimates. This program is for everyone who deals with buildings or construction (and that's a LOT of people). Construction projects are VERY expensive (most people spend 20-50% of their income just on the building they live in), and yet so few people have the skill to analyze the fairness and value of construction costs. Therefore, being able to understand, summarize and analyze construction costs is a very valuable skill that can save or make lots of money.

Construction cost estimating is a profession with specialized skills, training, education, and certifications; but it's not rocket science. And there is some math, so it's scary to a LOT of people. There are a lot of moving parts in a big construction cost estimate: designers, insurance, labor, materials, equipment, subcontractors... The list can go on and on. 

So how does a normal person without years of experience understand and evaluate an estimate? We are going to show you. Remember: Construction is not terribly difficult to understand. It's really just sticks and stones stacked neatly. What makes it hard is the complexity; the sheer number of components requires an organizational system. For Product Manufacturers, Insurers and Lawyers, it's hard for anyone to make a case that our opinions are biased.

Learning Objectives

  • Understand how to summarize a construction cost estimate.
  • Understand the basics of estimate analysis.
  • Learn what project and labor burden are.
  • Discuss the power and dangers of Xactimate.
  • Review some case studies and real world examples of construction cost estimate summary & analysis.

Program Outline

  1. Introduction
  2. How Do You Know?
  3. Detailed Analysis
  4. Burden
  5. Match Game
  6. Xactimate
  7. Conclusion

This program is approved for one hour of CLE for attorneys in California, Nevada and Oregon, and insurance adjusters registered with the California and Texas Departments of Insurance.