This 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.
Tags: AACE, Class 5, Estimating, Project Stage Gating
