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Gregory S. Martin, Esq. The Construction Estimate and Cost Controls From Formulation to Project Closeout – A Help or Hindrance in Litigation.

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Presentation on theme: "Gregory S. Martin, Esq. The Construction Estimate and Cost Controls From Formulation to Project Closeout – A Help or Hindrance in Litigation."— Presentation transcript:

1 Gregory S. Martin, Esq. The Construction Estimate and Cost Controls From Formulation to Project Closeout – A Help or Hindrance in Litigation

2 Gregory S. Martin, Esq. Common Issue in Construction Litigation I.Communication A.Who is listening? B.Who is the Audience? II.Perception A.Boring Logs are clear, but jury disagrees. B.Perception = Reality So what does this have to do with Estimating?

3 Gregory S. Martin, Esq. Communication and Perception Estimating and Bidding

4 Gregory S. Martin, Esq. What is Estimating? I.A guarantee? II.A promise? III.Simply a guess?

5 Gregory S. Martin, Esq. ASPE Canon #1 Professional estimators shall perform services in areas of their disciple and competence.

6 Gregory S. Martin, Esq. ASPE Canon #6 Professional estimators shall utilize their education, years of experience and acquired skills in the preparation of each estimate or assignment with full commitment to make each estimate or assignment as detailed and accurate as their talents and abilities allow.

7 Gregory S. Martin, Esq. ASPE Canon #4 Professional estimators shall safeguard and keep in confidence all knowledge of business affairs and technical procedures of an employer and client.

8 Gregory S. Martin, Esq. Martins Corollary Professional estimators shall use best efforts to understand the project, bid documents and site conditions and shall reconcile or raise questions about apparent conflicts.

9 Gregory S. Martin, Esq. The Extreme When the Estimate is under a microscope – The Claim.

10 Gregory S. Martin, Esq. 5 Basic Methods of Damage Calculation I.Total Cost or Modified Total Cost II.Direct Cost III.Measured Mile IV.% Factor V.Estimated Each implicate the Estimate – either directly or indirectly.

11 Gregory S. Martin, Esq. Total Cost Method or Modified TCM I.What is it? II.What about a Line Item actual to budget comparison? III.Estimate is Front and Center! What is the reasonableness? IV.When is reasonableness tested? Right after the bid is submitted? Or, years later?

12 Gregory S. Martin, Esq. Total Cost Method or Modified TCM V.Canon #6 – Detailed and accurate VI.Martins Corollary – Was project understood? Were conflicts reconciled? VII.Case Example

13 Gregory S. Martin, Esq. Remaining Methods I.Direct Costs, Measured Mile, % Factor and Estimated II.What are each? III.How does each implicate the estimate? IV.Case Example

14 Gregory S. Martin, Esq. So what are the Lessons Learned? Lesson #1 – Be organized and maintain organization. Lesson #2 – Make notes – describe your thought process. Lesson #3 – Make sure you understand the Bid Docs. If you dont know, ask. Lesson #4 – Understand and evaluate the risk. Lesson #5 – Communicate

15 Gregory S. Martin, Esq. Questions Gregory S. Martin, Esq

16 Gregory S. Martin, Esq. The Construction Estimate and Cost Controls From Formulation to Project Closeout – A Help or Hindrance in Litigation


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