Getting The Engineer?s Estimate Right

Mega projects present unique challenges with regard to estimating costs. With such projects, which may span decades, these challenges often begin as soon as a project is conceived. The importance of having a sound, resource based estimate avail-able early in the process cannot be overstated because it provides the basis for ongoing project decisions. For the final phase of providing an updated cost estimate, often while bidding by contractors is underway, the Engineer?s Estimate (EE) must incorporate present market conditions; account for possible volatile material price swings; be based on actual labor and fringe costs; rely on meaningful productivity rates; and accommodate any recent technology advances while identifying and allowing for risk factors. This paper explains the benefits associated with consultants adopting a contractor?s estimating approach when preparing the Engineer?s Estimate on mega projects like the various tunneling projects in New York City.