Estimating as a Competency in Capital Projects
Faculty: Dr. Hyung Seok (David) Jeong
Research Assistants: Anwar Alroomi
Sponsor: Construction Institute (CII)
The cost estimate for a capital project is critically important to both owners and engineering/construction companies. Owners rely on cost estimates to perform economic analyses for return on the investment from their capital expenditures. Engineering/construction companies rely on the cost estimate for bidding and negotiating work, which is the basis for securing future work and ensuring profitability.
Perhaps the greatest challenge facing the cost estimating community over the next decade is the loss of knowledge and experience of highly experienced estimators as high percentage of them are retiring and a shortage of qualified cost estimators is evident in the construction industry. Reliable estimates depend heavily on the competency of cost estimators. Tools that aid the estimating process cannot replace the judgment and experience of a competent estimator. However, the acute shortfall of competent estimators as a significant number of senior estimators are fast retiring translates into retirement of their knowledge and experience as well.
In response to this need, the research team has teamed up with 35 industry experts to find solutions to both issues: the short supply of competent estimators and the loss of knowledge and experience of retiring estimators. The research team has conducted four independent surveys and collected and analyzed extensive amount of data to:
The collected data represent a total of approximately 3,500 years of experience in the estimating profession.
The research team has confirmed that there is indeed a serious shortage of cost estimators now and in the immediate future and there are growing concerns about the gaps that junior estimators have in estimating competencies. In this research, the research team has identified most critical competencies for cost estimators (See figure above), current gaps of each competency, and effective solutions to filling these gaps. The solutions identified in this study include more effective recruitment methods, more effective methods to attract and retain cost estimators, efficient methods to transfer estimating knowledge and skills, and ideal career paths. The findings in this study can be used as a set of practical guides when designing and developing recruitment and retention plans of cost estimators, cost estimating training programs and a long term career development plan for cost estimators in construction companies.
Hyung Seok (David) Jeong
214B Engineeringing South
405-744-7073
david.jeong@okstate.edu
Site maintained by D. L. Massey
7/14/09
