Hello Fellow Companions Junior Estimator In Need Of Help Asap

mrdivito

Im Andrew a 24 year old junior estimator i was after some help from some more experienced estiamtors in some areas if anyone could be of some assistance to me i would be eternally grateful.

For instance im a little confused on how would you account for a projects risks e.g material fluctuations, supplier gone broke or market changes in the tender process?? would it be simply to adjust to an appropriate contract with compensating clauses in it add 10% etc for each area? are their any other ways?

Also what options would be best for me to recommend to a client that has a lot of financial risk established in a project??

any guidance would be most appreciated thanks

The Yaz Man

Best answer is it's in the gut my friend. You cna't quantify a stable and ever present mark-up for fluctuations in material market price. The safe guard is going to be a percentage based upon your personal knowledge of the materials in question.

Just saying 10% for fudge is well and good but what if, as now, gas prices fall 10% and material delivery and transportation to the point of purchase wane enough to allow a, heaven help me, drop in price of three percent?

Now your thirteen percent out of whack.

And I have never had a supplier go down before the start of a job and not know it was coming. There is sometime between bid and contract. Not nearly enough for the demise of a large supplier to occur without for warning.

Lastly in regards to a project with large financial risk I would say this. It's your job to find the sweet spot. Estimating is an art not truly respected. It's your job to weigh the financial, liability, and professional risks into the final bid price. Excluding any is not going to render an accurate cost analysis. In any project your client should understand the risks taken as much as you do without you expalining them. However if you feel there is excessive risks that can not be quantified, say "Hey Tom, this proposal gets you the job and contract but..."

Explaining percieved pratfalls will endear you to the client and maybe even resolve a few for the client.

__________________
Keep the money happy.

slickshift

The only times I ever "hosed" myself were the times I went against my gut
Fortunately they weren't too bad, but after a few of those, you start to trust your instinct more