The Five Estimate Classes: Stage 3, Authorization

by Hard Dollar on January 27th, 2012

Class 3 EstimateThis post is the third installment in a series of posts about AACE’s 5 Estimating Classes. Designed for the new construction employee (engineer, estimator, and field personnel), we will take a high-level look the five types of estimates.

One of the ways that HD Project Cost Management software is unique is that it can handle the full gamut of estimate types, everything from Class 5 through Class 1.

The Class 3 or “Authorization” estimate is much more definitive than Classes 4 and 5. A C3 estimate is nearing the 50% definition mark, with anywhere from 10-40% of the project defined. Budget, appropriation, and control are key reasons for building a C3 estimate. Having completed the C4 estimate, we determined that the project will proceed to the C3 stage. With the C3 estimate, we’re beginning to nail down the entire scope of the project, and data included in the C3 estimate will be used against the actual costs as the project nears completion.

Class 3 estimate methodology is mixed, but contains somewhat detailed unit costs with assembly level (rather than an individual component level) line items. HD’s ability to add assemblies from libraries or historical data allows the estimator to efficiently and accurately build out a C3 estimate.


The Five Estimate Classes: Stage 4, Feasibility

by Hard Dollar on January 16th, 2012

Class 4 EstimateThis post is the second installment in a series of posts about AACE’s 5 Estimating Classes. Designed for the new construction employee (engineer, estimator, and field personnel), we will take a high-level look the five types of estimates.

One of the ways that HD Project Cost Management software is unique is that it can handle the full gamut of estimate types, everything from Class 5 through Class 1.

The Class 4 or “Feasibility” estimate is slightly more definitive than the Class 5. Like the C5 estimates, C4 estimates are typically put together based on very little information. They are most often used for concept evaluation, project screening or gating, feasibility studies, or initial budget planning and approval. The definition required in a C4 estimate is only 1-15% and may include details like plant capacity, schematics, layout, and process flow. The C4 estimate intends to make a determination on whether or not the project continues on to the next stage of the process.

Class 4 estimate methodology is based on equipment factored or parametric models. HD’s BidWizard is used in this type of estimating often in tandem with data easily integrated from third-party providers such as RSMeans and Richardson.


The Five Estimate Classes: Class 5 for Project Stage Gating

by Hard Dollar on January 13th, 2012

Class 5 EstimateThis post is the first installment in a series of posts about AACE’s 5 Estimating Classes. Designed for the new construction employee (engineer, estimator, and field personnel), we will take a high-level look the five types of estimates.

One of the ways that HD Project Cost Management software is unique is that it can handle the full gamut of estimate types, everything from Class 5 through Class 1.

The Class 5 or “Project Stage Gating” estimate is the least definitive, and subsequently, the least time consuming of the group, often requiring an hour or less to create. These estimates are typically put together based on very little data. Many times only the type of project and its location are known. As a result, the definition required in a C5 estimate is only 0-2%. The question answered by the Class 5 estimate is, in essence, “Do we want to initiate the project, or not?”

Class 5 estimate methodology is based on parametric models, judgment of the estimator, and/or analogous projects. Crews and assemblies are not included. Plug in a cost from HD ProjectFacts® (which contains high, low, and average costs by item), and parametric models tied to Excel can quickly complete a C5 estimate.


The “Triangle of Truth” in Project Cost Management for Construction

by Hard Dollar on December 30th, 2011

triangle of truthWhether you are building a birdhouse, a bungalow, or a bridge, three things are common during any construction project – scope, time, and cost.

Let’s use the “Triangle of Truth” to illustrate how risk may be associated with these tenets. Most of us begin every project believing the triangle is perfectly balanced. Inevitably, though, something in the estimating, scheduling, design, planning, controls, or progress phase changes. The minute we stretch that triangle and shift the angles, we affect the delicate balance between scope, time, and cost of a project.

Unlike several other industries where the outcome is predictable, construction companies, owners and subcontractors are constantly managing upstream, downstream, and internal resources. Visibility and cause-and-effect scenarios are critical in helping to complete a project and plan for the next one. Systems that help manage risk or show the gaps in our processes help restore the balance of the triangle.

Hard Dollar’s Project Cost Management is designed to literally manage the “truth” of your project and provide integration to the systems you already have in place (no IT army necessary).

Learn how to manage risk with Hard Dollar’s Project Cost Management by clicking here.


5 New Videos in the HD Video Portal!

by Hard Dollar on December 15th, 2011

HD Training Video PortalWe’ve updated our Video Portal with FIVE – count ‘em, FIVE – new video tutorials:

• Copying from Project to Project
• Defining the CBS – Tips
• Haul Calculator
• Submitting Timesheets
• Tracking Productivity

Check them out under the Estimating and Progress Measurement tabs in the Hard Dollar Video Portal. We welcome your feedback, and feel free to suggest new topics for us to cover in upcoming HD training videos.


Hard Dollar Brings Project Cost Management to POWER-GEN, Booth 9530

by Hard Dollar on December 9th, 2011

We are very excited to be participating in the POWER-GEN International show in Vegas next week.

This promises to be a HUGE show with over 1,200 exhibitors and 19,000 attendees. We are located near the Alstom Cyber Café, in Booth 9530.

Representing Hard Dollar’s Project Cost Management solution will be Sales Execs Chris Wright and Jake Schillaci (the bald and the coiffed respectively), and yours truly, Joanie Hollabaugh, for the marketing team.

The show is co-located with the NUCLEAR POWER International show, and the promoters have dubbed it a “two pair” event.

So Vegas!


Pragmatic Week

by Hard Dollar on December 2nd, 2011

I just attended Pragmatic Marketing’s* “Practical Product Management” training this week, representing the Marketing Department for Hard Dollar. Having previously attended the Effective Product Marketing session this summer in Chicago, I thought it would be valuable to learn the framework as applied to Product Management. See how the other half lives, so to speak.

**Full disclosure: I am a BIG fan of Pragmatic Marketing.

My first validation moment was when our instructor declared (pardon the paraphrasing), “There are standardized processes for the finance department (GAAP), processes for Ops (ISO, etc.), and processes for IT and support – but ONLY MARKETING doesn’t have a standardized process!”

Pass the Kool-Aid, brother.

Peppered with stories, examples, templates, and case studies, the instructor pounded home a central theme during the seminar: Product Management’s job is to solve problems in the market.

And the only way to do that is to talk to customers. Customers you won, customers you lost, even competitors’ customers.

So, Hard Dollar customers – what are your business problems? We’re listening.


3 New HD Project Cost Management Video Tutorials

by Hard Dollar on December 1st, 2011

HD Training Video PortalWe’ve updated our Video Portal with three new video tutorials:

• Update MS Project with HD Costs
• Update Primavera User-Defined Fields
• Update Primavera % Complete

Check them out under the HD Integration tab in the Hard Dollar Video Portal. We welcome your feedback, and feel free to suggest new topics for us to cover in upcoming HD training videos.


Oh Edmonton, we stand on guard for thee!

by Hard Dollar on November 18th, 2011

Canada is doing fine, thank you very much. Just ask Edmonton.

According to online source, edmontonstories.com, “Edmonton has been impacted by the global economic downturn, but the impact has been different than in most jurisdictions. The downturn brought an end to almost two decades of sustained economic growth. More recently Edmonton experienced three years of greater than 5% economic growth making it one of Canada’s leading municipalities for economic growth.”

 Which is why this is the perfect time for Hard Dollar to open an office in beautiful downtown Edmonton (11630 Kingsway Avenue).  Headed by Oil and Gas industry specialist, Ryan Vesty, HD is building a team of locals to serve a growing demand for Project Cost Management.  One of Ryan’s first initiatives was to become a proud associate member of the Edmonton Construction Association.

 Cheers to Hard Dollar’s first Canadian brick-and-mortar, eh!

 


Mine Planning: 3 Ways to Increase Profits with Dynamic Data

by Hard Dollar on November 11th, 2011

Join us for this special webinar as InfoMine USA President, Jennifer Leinart, and Hard Dollar Vice President, Ron Babich, demonstrate how to:

  • Dynamically integrate InfoMine data into HD in the pre-feasilibity, feasibility, and definitive estimate stages.
  • Respond rapidly to changes in design, resources, condition, and structure.

What You Will Learn:

  • Overview of the CostMine database and selecting equipment in the pre-feasibility stage
  • How to integrate InfoMine’s data libraries into HD
  • Customizing currency creation for unit cost items and resource cost components
  • How to maintain a running record of production and development

Join us on Wednesday, November 16, 2011 at 11:00am MST!

Click here to register.